92¦~²Î¤@¦~³ø«Ê · realized with solid operation and necessary transformation. reported...

2004

2003

Head Office、Branches、Sales office and General Plant

Head Office

301, Chung Cheng Rd., Yungkang City, Tainan Hsien 710, Taiwan, R.O.C.

Tel: +886-6-253-2121

Taipei Branch

11~14F. 8, Tong Hsing Road, Taipei 105, Taiwan, R.O.C.

Tel: +886-2-2747-8088

Taichung Branch / Taichung Sales Office

7, Industrial 3rd Road, Industrial Zone, Taichung 407, Taiwan, R.O.C.

Tel: +886-4-359-1158

Jiayi/Tainan Sales Office

7, Taying Village, Hsinshih, Tainan Hsien 744, Taiwan, R.O.C.

Tel: +886-6-599-1511

Kaohsiung Sales Office

3F, 301, Chi Shien 1st Rd., Kaohsiung 800, Taiwan, R.O.C.

Tel: +886-7-222-7191

Yungkang General Plant

301, Chung Cheng Rd., Yungkang City, Tainan Hsien 710, Taiwan, R.O.C.

Tel: +886-6-253-2121

Hsinshih General Plant

7, Taying Village, Hsinshih, Tainan Hsien 744, Taiwan, R.O.C.

Tel: +886-6-599-1511

Taichung General Plant

7, Industrial 3rd Rd., Industrial Zone, Taichung 407, Taiwan, R.O.C.

Tel: +886-4-359-1158

Yangmei General Plant

301, Sec. 1, Minfu Rd., Yangmei, Taoyuan Hsien 326, Taiwan, R.O.C.

Tel: +886-3-478-4143

Chungli General Plant

15, Tingning Rd., Chungli Industrial Zone, Chungli City, Taoyuan Hsuen

320, Taiwan, R.O.C.

Tel: +886-3-452-3191

Madou General Plant

No.1-30, Mataukou, Makou Village, Madou, Tainan Hsien 721, Taiwan,

R.O.C.

Tel: +886-6-570-4210

Rueifang General Plant

27-3, Rueibin 2nd Rd, Rueifang Jen, Taipei Heien 224, Taiwan, R.O.C.

Tel: +886-2-2496-9413

Shinying General Plant

No.83,Gungye St., Shinying City, Tainan Hsien 730, Taiwan, R.O.C.

Tel: +886-6-637-1906

Yungkang Ice General Plant

No.1,Jing Jung Rd., Yangkang City, Tainan Hsien 710, Taiwan, R.O.C.

Tel: +886-6-233-3248

Web Site:http://www.uni-president.com.tw

Spokesman Name: Mr. Lo, Chih-Hsien

Title: Executive Vice President

Tel: +886-6-253-2121

E-mail: [email protected]

Acting SpokesmanName: Su, Tsung-Ming Hung, Shih-Min

Title: Assistant Vice President, Manager

Tel: +886-2-2747-8088

E-mail: [email protected]

[email protected]

Stock Transfer Institution Dept. of Stock Transfer Agency, President Securities Co. Ltd.,

B1F. 8, Tong Hsing Road, Taipei 105, Taiwan, R.O.C.

Tel: +886-2-2746-3797

Web Site: http://www.pscent.com/tw

Independent AuditorPricewaterhouseCoopers

22F, 95, Ming-Chu 2nd. Rd., Kaohsiung 800, Taiwan, R.O.C.

Tel: +886-7-237-3116

Web Site: http://www.pwcglobal.com/tw

2 REPORT TO SHAREHOLDERS

5 CORPORATE OVERVIEW

37 OPERATION HIGHLIGHTS

69 FINANCING PLANS AND IMPLEMENTATION

71 FINANCIAL INFORMATION

79 REVIEW OF FINANCIAL CONDITIONS,

OPERATING RESULTS, AND RISK

MANAGEMENT

89 CORPORATE GOVERNANCE PRACTICES

93 SPECIAL DISCLOSURES

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122003 Annual Report

Honorary Chairman

WU, SHIU CHI

Chairman

KAO, CHIN YEN

C.E.O. of Uni-President Group

LIN, CHANG SHENG

President

LIN, LUNG YI

UN I -PR E S I D E N T

2003 Annual Report22

REPORT TO SHAREHOLDERS

Dear shareholder:

2003 was a tough one for most businesses throughout the world. Besides the impacts of terrorism continued to

prevail in the year, the US-Iraq conflicts, SARS outbreak and economic crimes also brought about the unstable

political economies time and again. However despite these adversities, the market conditions are turning favorably

toward the growth of economy. Thanks greatly to your dedicated support during the year so that our goals can be

realized with solid operation and necessary transformation. Reported financial results for 2003 were NTD 38 billion

in company sales, NTD 2.94 billion in after-tax net income and NTD 231.8 billion in Group’s sales.

To take on the upcoming challenges, we craft a plan that includes the following courses:

1. To focus on group unification through continued innovation and renovation, as well as optimal sharing of

resources.

Our fundamental approach to the business operation has been the sustainable innovation and renovation.

Our management policies are constantly reviewed and modified to meet with the market challenges and our

employees are always holding on to the most creative idea. In this year, we have designated five main re-

energizing programs: global resource integration, human resource development, production equipment

upgrade, product quality improvement, and OEM management. One of the assignments in our human resource

development is the new recruitment procedure for the manager. For every management vacancy, the position is

no longer filled through internal promotion rather it is publicly announced, accessible and recruited. Also, a

screening committee is provided to undertake the task of assessing candidate’s qualification and conducting

interview for potential candidates. In this fashion, we could better match the position with profession, and make

the most of the employees’ capabilities. Within the near future, we will build a “Personnel Exchange Platform” for

the whole Uni-President Group and approach to the group’s unification as Mr. Lin, the Chief Executive Officer of

Uni-President Group, expected.

In this highly changing environment, we will stay resilient and innovative and prioritize our business on

customer satisfaction. Our business will be driven by customer value and constantly seek to the improvement

through the retention of existing customers and attraction of new ones.

2. To think globally and to leverage extensive organizational network for our expansion in global scale.

The world has swiftly evolved into a global village in this knowledge-based age. The management condition

is thus distinct and acute from the past. That includes the massive changes in market competition, competitive

niche and cultural value from the integration of regional economy, elimination or reduction of trade barriers and

the development of Internet technology. To maintain our dominance, we tend to update our management

guideline and strategies, build up our core competencies, and partner with other companies.

We are convinced this time is ideal for our global expansion. And there are many projects calling for great

attention. First, reorganizes, cultivates and globalizes existing brands. Second, leverages strategic acquisitions and

alliances for market expansion. Third, applies marketing and channeling strategies to construct supply chain

platform for Greater Asia. Fourth, secures our food kingdom in Taiwan by means of vertical diversification,

extensive sales network, modern production equipment, foremost product development and unconventional

marketing strategies.

3. To layout businesses by beginning from Taiwan, through China and Asia, and evolving into the world.

We still foresee lots of market potentials in China. Given that China has been gaining more economic

importance worldwide, in years ahead, we will regard China as our cornerstone and exploit its potential fully.

We will move forward toward a flexible foundry by coordinating seven regional headquarters and improve our

market penetration through extensive marketing and channeling network. To enhance our operating

effectiveness and to expand our global presence, we would start up by building infrastructures, intensifying

training on management talents, hiring younger executives and local talents, and partnering with leading

foreign companies. Armed with cost saving and sound financial structure, we surely have the greatest chances

to become the Food Giant in Greater China. We would seize each and every opportunity that lies in the

continental economic development in China and build a fine reputation in Asia so to ladder up to the globe in

time.

Internationalization is one of the main tasks in our agenda. To accelerate our internationalization and to

integrate Group’s resources, we have formed a business development committee last year to govern all of Uni-

President’s activities, including the business investment, budget control and resource allocation, and to ascertain

the policies for research, marketing and branding respectively. Even though we are aiming to diversify our

operation, headquarter will still be based in Taiwan. We will strive to build a leading multinational food company

in Asia with the use of our organizational network and integrative global resources.

4. To act Millenary Love upon the cosmological principle of Honmono (Naturalism)

Affected by the comparative advantage of mass production in China, many products have been fallen into

price wars after Taiwan joined WTO. We have thought of the product differentiation is the only way to prevent

us from engaging in the price battles. Thus we would develop many higher value-added products and build up

customer loyalty and product culture.

Japanese master Mr. Yukio Funai, on his visit to Taiwan in 2002, explicated that the cosmological principle of

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Honmono is the key for business survival in twenty-first century. Only those companies that hold good intention

and healthy thought will not fall into a price war and then dominate the market. Inspired by this concept and

increasing consumers’ demand for food and living quality, we have proposed the belief of Millenary Love that

contains four underlying concepts- respect lives, care for others, be close to nature, and be optimistic and

progressive. In the future, we will associate those essences of Millenary Love with cosmology and transform our

company into a health focused consumer goods server.

It is our aim to produce healthy and functional products and adopt biotechnology to product development.

We even established a Millenary Love Health Foundation last October to convey our sincere concern to the

general public. Through the development of this foundation, we could advise public about appropriate health

care, reveal new idea about health care and nutrition in welfare activities, involve in social education of

preventive medicine, and encourage international academic communication and research and development.

Best of all, we will be able to bring you a better health and a beautiful landscape.

Looking forward, 2004 will be a year full of numerous changes and potentials. Starting from the mind

regeneration, everyone in Uni-President Group will follow the belief of Millenary Love and work together to

achieve the best result for 2004. The sales objectives for 2004 are targeted at 1,235 thousand tons of provisions,

494,400 thousand Packs of instant noodles, 698,227 thousand liters of beverage and diary, 43,422 thousand

liters of soy sauces, and 61 thousand tons of frozen foods, bakery and meat products. Provided that consistent

innovation and revolution are available, we are confident to create another business success in 2004. We will

expect to embrace a profitable growth in the upcoming year at the strengths of your continuous supports and

the full commitment of our employees.


Honorary Chairman

WU, SHIU CHI

Chairman

KAO, CHIN YEN

C.E.O. of Uni-President Group

LIN, CHANG SHENG

President

LIN, LUNG YI

7 Corporate Profile

8 Business Highlights

9 Organization

24 Capital and Shares

30 Issuance of Corporate Bonds

36 Issuance of Global Depository Receipts

36 Issuance of Preferred Shares

36 Employee Stock Option

36 Mergers and Acquisitions

CORPORATE OVERVIEW

CORPORATE PROFILE

Uni-President Enterprises Corp. was founded in Yeong Kang, Tainan on August 25, 1967. Since then, it has been

contributing to the food manufacturing and exploring new businesses. During its development, it has directly or

indirectly promoted the prosperity of society and growth of national economy.

Uni-President Enterprises’ development process is divided into the following four phases:

Phase I: Pioneer Period (1967~1973)

Taiwan’s society gradually shifted into the industrialization. Uni-president Enterprises Corp. entered the business

by adopting flawless and highly efficient mass production, and expanding the Company’s scale to meet the

consumers’ demands.

Phase II: Growth Period (1974~1982)

Taiwan’s economy grew rapidly, and the consumers’ purchasing power increased. Uni-President seized the

chance and developed a full range of product lines to meet customers’ needs, introduced the finest facilities, and

learned the advanced technologies overseas in order to operate the Company with a superior managerial strategy.

Phase III: Conglomerate Period (1983~1989)

Taiwan’s economy entered a commercializing and diversifying age. During this phase, Uni-President fully

devoted itself to the battles of channeling, and combined the social needs with multifaceted management in order

to keep the Company growing. At the same time, it also tried to explore new management models for

conglomeration, and started to invest overseas.

Phase IV: Internationalization Period (1990~present)

This is a stage where the Gross National Product (GNP) broke US$10,000, the competition increased, and the

domestic market saturated. Uni-President Enterprises Corp. realized that globalization was the key to overcome the

growing obstacles. After the government allowed Taiwan’s manufacturers to operate business in China, the

Company has developed businesses in China along with some investments in other countries throughout Asian

Pacific, such as Indonesia, Thailand, Vietnam, and Philippines.

Uni-President Enterprises Corp. currently has over 100 affiliates covering wide-ranging consumer products and

services, and has also become a multifaceted conglomerate. Under the commitment of reaching the

internationalization and the diversification, Uni-President has scheduled to joint venture with many of the world’s

leading companies in order to absorb international management concepts and skills. Uni-President Enterprises Corp.

is heading to form one of world’s largest food marketing company through China and Asia.

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BUSINESS HIGHLIGHTSIn million NTD

2003 2002 2001

Group Consolidated Revenues * 231,835 205,877 186,689

Non-Consolidated Operating Revenues 37,952 34,899 33,349

Gross Profit 7,879 8,421 8,780

Net Income 2,938 1,509 3,014

EPS(NTD) - Unretroacted 0.86 0.45 0.90

EPS(NTD) - Retroacted 0.86 0.45 0.88

Total Assets 73,477 68,684 72,163

Current Assets 8,805 7,429 9,516

Fixed Assets 14,456 14,000 14,528

Long-term Investment 48,250 45,277 45,740

Current Liabilities 4,170 6,171 6,152

Long-term Liabilities 24,746 19,059 21,840

Stockholders’ Equity 42,076 41,277 42,283

Number of Shareholders 130,741 129,282 127,501

Number of Personnel (The Company) 5,156 5,224 5,453

Number of Personnel (Group) 54,177 55,084 51,462

* Group Consolidated Revenues are the operating revenues of Uni-President and its affiliates accounted

by equity method, and all inter-company transactions have been eliminated.

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Dec. 31, 2003

ORGANIZATION

Organization Chart

TECHNOLOGY GROUP

ENVIRONMENT SAFETY & HEALTH OFFICE

General PlantsOEM & ODM Service DivisionQuality Assurance DivisionCivil Engineering DivisionConstruction DivisionEngineering Division

CENTRAL RESEARCH INSTITUTE

Food Product Development 1st DivisionFood Product Development 2nd DivisionFood Product Development 3rd DivisionTechnology Development DivisionReserch Management & Planning OfficeBiotechnology Research Center

LOGISTICS GROUP

Kaohsiung Sales OfficeChia-Nan Sales OfficeTaichung Sales OfficeTaipei Sales OfficeKey Account DivisionChannel Service DivisionTransportation Service DivisionNormal Temp. Distribution Division

BEVERAGE GROUP

Beverage Division

CHILLED FOOD GROUP

Dairy Product Division

LOW-TEMP FOOD GROUP

Meat Product DivisionFrozen Food DivisionIce Cream Novelty Division

HEALTHY FOOD GROUP

Healthy Food DivisionBakery Divisions

INSTANT FOOD GROUP

Food DivisionInternational DivisionSoy Sauce and Seasoning Division

PROVISIONS GROUP

Foodstuff DivisionEdible Oil DivisionFlour DivisionAnimal Feed DivisionAquatic Business DivisionLivestock Technology DivisionAquatic Technology Division

SUPERVISORS

SHAREHOLDERSMEETING

BOARD OFDIRECTORS

HONORARY CHAIRMANOF THE BOARD

CHAIRMAN OFTHE BOARD

PRESIDENT

EXECUTIVEVICE-PRESIDENT

PRESIDENT'SOFFICE

Marketing Planning OfficeCorporate Planning Office

Secretariat Office

Information Division

AUDIT OFFICE

TAIPEI BRANCH

TAICHUNG BRANCH

Taipei Administration DivisionPublic Affairs Division

MANAGEMENT GROUP

Purchasing DivisionHuman Resources DivisionAdministration Service DivisionGlobal Business Service DivisionLegal Office

FINANCE GROUP

Finance DivisionTreasury Division

ACCOUNTING GROUP

Financial Planning DivisionAccounting Division


Division Function Description


Division Function

President’s Offi ce

1Secretariat Offi ce Secretarial services to the president, liaison to affi liates and legal affairs.

1Marketing Planning Offi ce Management of market and product information, operational analysis,

market survey, consumer behavior analysis, promotion and advertising

planning project.

1Corporate Planning Offi ce Strategic planning reengineering, human resource, information

technology, sales information and project evaluation.

1Information Division In charge of planning, promotion, and management about information

technology area.

Audit Offi ce Evaluates and audits internal control and management systems.

Environment Safety and Health Offi ce In charge of security and sanitary management for the entire company.

Technology Group

1 Yeong Kang, Hsinshih, Taichung,

Chungli and Yangmei General

Plants

Arrangement of production schedule, operation and safety-sanitation

management.

1OEM And ODM Service Division Management of OEM manufacturers.

1Quality Assurance Division Quality control of raw materials and fi nished goods.

1Civil Engineering Division Electrical and plumbing work, machinery maintenance.

1Construction Division Facilitating construction of company’s building.

1Engineering Division Designing production lines and equipment.

Central Research Institute

1 First, Second and Third Food

Product Development Division

R&D of processing technique and new products.

1Technology Development Division Microorganism and materials use, nutritional analysis processing

technology and other basic researches.

1 Research Management and

Planning Offi ce

Gathering information; evaluating new business and technology

investments.

1Biotechnology Research Center Conscientious goods development and clinical spread application.

Logistics Group

1 Taipei, Taichung, Chia-Nan, and

Kaohsiung Sales Offi ce

Achieving annual sales goals though execution of sales and marketing

plans, promotion of products and customer services.

1Key Account Division Management of key account.

1Channel Service Division Management of retail distribution channels to better planning market

development and provide full coverage of the best service to all retailers.

1Transportation Service Division Storage and shipment of raw materials and fi nished goods.

1 Normal Temperature Distribution

Division

Distribution of all normal-temperature products.

Beverage Group

1Beverage Division Beverage Series of Products production, marketing and sales.

Chilled Food Group

1Dairy Product Division Dairy Series of Products and Chilled Beverage production, marketing and

sales.

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Division Function

Low-Temperature Food Group

1Meat Product Division Meat Products production, marketing and sales.

1Frozen Food Division Frozen Food Series of Products production, marketing and sales.

1Ice Cream Novelty Division Ice Cream and Bars related Series of Products production, marketing and

sales.

Healthy Food Group

1Healthy Food Division Healthy Food Series of Products production, marketing and sales.

1Bakery Division Bakery Products production, marketing and sales.

Instant Food Group

1Food Division Instant Noodle Series of Products production, marketing and sales.

1International Division International markets development and operation management.

1Soy Sauce and Seasoning Division Soy Sauce and Seasoning Products production, marketing and sales.

Provisions Group

1Foodstuff Division Foodstuff import, processing, marketing and sales.

1Edible Oil Division Edible Oil Series of Products R&D, production, marketing and sales.

1Flour Division Flour Series of Products production, marketing and sales.

1Animal Feed Division Animal Feed Series of Products production, marketing and sales.

1Aquatic Business Division Fishery Feed Series of Products production, marketing and sales.

1Livestock Technology Division Livestock production R&D and farm management technical assistance.

1Aquatic Technology Division Fishery Feed formula R&D and integration.

Management Group

1Purchasing Division Purchasing, planning, cost forecast, inventory management and control.

1Human Resources Division Assessment of employees’ performance and play renewal; planning of

human resource management.

1Administration Service Division Management of daily affairs and stock-related services.

1 Global Business Service Division In charge of new markets and businesses development overseas.

1Legal Offi ce Deal with issues about litigation incidents and legal affairs.

Finance Group

1Finance Division Fund dispatch, fi nancial planning and supervision of accounting affairs

of our direct selling unit.

1Treasury Division Fund dispatch, fi nancial planning and accounting oversight of direct

selling unit.

Accounting Group

1Financial Planning Division Financial forecasts, investment management and investor

communications.

1Accounting Division Accounting, taxes, property management and cost control.

Taipei Branch

1Taipei Administration Division Management of Taipei area operations.

1Public Affairs Offi ce In charge of Public Relations and Internet service matters.

Taichung Branch In charge of internal communication, resource integration, monitoring

tasks, and public relationship nearby.



Directors and Supervisors

Title Name

Date

Elected

Term

(Yrs)

Date (First

Elected )

Shareholding when

Elected

Current

Shareholding

Spouse & Minor

Shareholding

Education

Current Position with

UPEC and Other

Company

Managers, Directors and

Supervisors are Spouse

or within 2 Degrees of

Consanguinity Each Other

Remuner

-ation

in 2003

Thousand

(NTD)Shares % Shares % Shares % Title Name Relation

Chairman Kao Chyuan Inv. Co

(Representative: Kao,

Chin Yen ) (Note 3)

2001.6.1 3 1987.4.25 44,338,905 1.40 49,921,359 1.47 - - Honorary

Ph. D.

(Law)

(Note 7) Executive

Vice

President

Lo,

Chih

Hsien

Son-in

law

10,219

(Note 6)

Managing

Director

Cheng, Kao Huei 2001.6.1 3 1968.7.1 19,433,655 0.62 20,201,054 0.60 6,454,837 0.19 Tainan Senior

Commercial

High School

(Note 7) - - - 2,918

Managing

Director &

C.E.O.

Lin , Chang Sheng

(Note 4)

2001.6.1 3 1980.6.1 27,284,687 0.86 29,703,931 0.87 2,068,319 0.06 National

Cheng Kung

University

(Note 7) - - - 2,005

3,613

(Note 6)

Director Giant Attempt Ltd.

(Representative: Wu,

Shiu Chi) (Note5)

2001.6.1 3 1986.8.15 30,090,824 0.95 29,970,314 0.88 - - Honorary

Ph. D.

(Mgmt.)

1. Chairman of

Prince Housing &

Development Corp.

2. Chairman of Tainan

Spinning Co., Ltd.

Director Wu,

Ping

Chih

Son 6,158

Director Liu, Hsiu Jen 2001.6.1 3 1983.6.1 58,697,115 1.86 52,075,709 1.53 - - Honorary

Ph. D.

Lincoln

University

1. Chairman of So An

Co., Ltd.

2. Chairman of San Shi

Inv. Corp.

- - - 1,945

Director Hou, Po Ming 2001.6.1 3 1992.6.1 83,101,089 2.63 87,218,498 2.57 - - Chinese

Culture

University

President of Tainan

Spinning Co., Ltd.

- - - 1,945

Director Wu, Ping Chih 2001.6.1 3 1992.6.1 29,127,823 0.92 29,777,756 0.88 2,192,582 0.06 University

of Southern

California

(M.D.)

President of President

Global Corp.

Director Wu,

Shiu

Chi

Father 1,945

Director Wu, Ying Jen 2001.6.1 3 1992.6.1 8,022,861 0.25 5,930,677 0.17 1,464,434 0.04 Tunghai

University

1. Supervisor of Shin

Ocean Enterprises

Co., Ltd.

2. Supervisor of Shin Ho

Shing Inv. Co., Ltd.

- - - 1,945

Director San Hsin Spinning

Co. (Representative:

Wu, Chung Ho)

2001.6.1 3 1986.8.15 19,457,644 0.62 18,356,649 0.54 - - Fu Jen

Catholic

University

President of San Hsin

Spinning Co. Ltd.

- - - 1,945

Director Hou Su, Ching Chien 2001.6.1 3 1992.6.1 38,041 0.00 41,532 0.00 107,595,730 3.17 Kaohsiung

Medical

University

Supervisor of Tainan

Spinning Co., Ltd.

- - - 1,945

Director Joe J.T.Teng 2001.6.1 3 2001.6.1 3,001,519 0.10 3,277,058 0.10 - - MBA, UC

Berkley

Representative of

Mainland China Area

of President Capital

Management Co.

- - - 1,945

Supervisor Chen, Kao Keng 2001.6.1 3 1968.7.1 26,542,935 0.84 28,464,576 0.84 - - National

Taipei

University of

Technology

1. Director of Prince

Housing &

Development Corp.

2. Supervisor of Tainan

Spinning Co., Ltd.

- - - 1,459

Supervisor Chau Chih Inv. Co.

(Representative: Kuo,

Peng Chih)

2001.6.1 3 1998.6.1 8,078,400 0.26 8,819,997 0.26 - - National

Taiwan

University

Assistant Vice

President of President

Construction Corp.

- - - 1,459

Dec. 31, 2003

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Note 1: Shareholding by Nominee Arrangement: None.

Note 2: Directors, Supervisors who have ever hold positions in the auditor’s Agency or its affiliated companies: None.

Note 3: Former Vice Chairman on July 1, 2003 was reassigned as Chairmen.

Note 4: Former Director and President on July 1, 2003 was reassigned as Managing Director & C.E.O..

Note 5: Former Chairman on July 1, 2003 was reassigned as Director.

Note 6: The Company pays President Tokyo Corp. 116 thousand NTD per month on average to rent 1 sedan for the

use of chairman and 148 thousand NTD per month on average to rent 1 sedan for the use of C.E.O.

Note 7: Position with other Company

* Kao, Chin Yen

Chairman of: President Chain Store Corp. Ton Yi Industrial Corp. TTET Union Corp. President Investment

Corp. Guang Dan Commodity Corp. Kai Yu Investment Co., Ltd. President Fair Development

Corp. President International Development Corp. Scino Pharm Taiwan Ltd. Latin American

Development Co., Ltd. Kai Nan Investment Co., Ltd. Tong Yu Investment Corp. Tong Shou

Investment Corp. Tong Cheng Investment Corp. Scino Pham Biochemical Technology Co.,

Ltd. Tung Li Development Corp. Synersy Scientech Corp. Uni-President Takashimaya Co., Ltd.

President Leasing Corp. Kao Chyuan Inv. Co. PCS(BVI) Holdings Ltd. President global Corp.

PRCC(Bermuda) I, Ltd. PCSC(China)Ltd.

Director of: Prince Housing Development Corp. Tainan Spinning Co., Ltd. Han Tech Venture Capital

Corporation. CDIB & Partners Investment Holding Corp. Tonpal Optoelectronics Inc. PK

Venture Capital Corp. Presitex Co., Ltd. Cayman President Holdings Ltd. Unisebaco S.A.

Presitex.Corp.,S.A. Global Strategic Investment Inc. Uni-Home Tech Corp. Kai Yu (BVI)

Investment Co., Ltd.

Supervisor of: Nan Fan Housing Development Co., Ltd.

President of: President International Development Corp.

* Cheng, Kao Huei

Chairman of: Nantex Industry Ltd.

Vice Chairman of: Tainan Spinning Co., Ltd. Grand Bills Corp. Nan Fan Housing Development Co., Ltd.

Director of: Scino Pharm Taiwan Ltd. President International Development Corp. Southern Taiwan

University of Tech. Keng Ting Enterprises Co., Ltd. Universal Venture Capital Investment Corp.

Scino Pham Biochemical Technology Co. Ming Da Enterprises Co., Ltd.

* Lin , Chang Sheng

Chairman of: President Baseball Team Corp. President Natural Industrial Corp. Mospec Semiconductor Corp.

Presicarre Corp. President Pharmaceutical Corp. Ton Yi Pharmaceutical Corp. Allianz President

General Insurance Co., Ltd. President Coffee Corp. Qware System & Services Corp. Preco Corp.

President Transnet Corp. Uni-President Oven Bakery Corp. Presitex Co., Ltd. President Medical

Technologies Corp. President Biosystems Co., Ltd. President Life Sciences Co., Ltd. President

Collect Service Co., Ltd. Xinjiang President Enterprises Food Co., Ltd. Tianjiang President

Enterprises Food Co., Ltd. Meishan President Feed & Oil Co., Ltd. Zhongshan President

Enterprises Co., Ltd. Guangzhou President Enterprises Co., Ltd. Zhengzhou President

Enterprises Co., Ltd. Changjiagang President Nisshin Food Co., Ltd. Oingdao President Feed &



Livestock Co., Ltd. Beijing President Enterprises Drinks & Food Co., Ltd. Nanchang President

Enterprises Co., Ltd. President Enterprises (China) Investment Co., Ltd. Chengdu President

Enterprises Food Co., Ltd. Kunshan President Enterprises Food Co., Ltd. Wuhan President

Enterprises Food Co., Ltd. Harbin President Enterprises Co., Ltd. Hefei President Enterprises Co.,

Ltd. Shenyang President Enterprises Co., Ltd. Shanghai President International Food Co., Ltd.

Tianjing President International Food Co., Ltd. Fuzhou President Enterprises Co., Ltd. Shanghai

Songjiang President Enterprises Co., Ltd. Zhuhai Kirin President Brewery Co., Ltd. Shanghai

President Coffee Co., Ltd. Uni-President Southeast Asia Holdings Ltd. President Coffee (Cayman)

Holdings Ltd. Presiclerc Ltd. Uni-President (Vietnam) Co., Ltd. Uni-President (USA), Inc.

Vice Chairman of: President Nisshin Corp. President Kikkoman Inc. Tonpal Optpelectronics Inc. Beijing President

Food Co., Ltd.

Director of: Uni-President Enterprises Corp. President Chain Store Corp. Nanlien International Corp.

President Entertainment Corp. Tone Sang Construction Corp. Ztong Yee Industrial Co., Ltd.

Presicarre Corp. Ton Yi Industrial Corp. TTET Union Corp. Mech-President Corp. President

Investment Corp. Prince Housing Development Corp. Kai Yu Investment Co., Ltd. Tung-Ho

Development Corp. Sino-Aerospace Investment Corp. President Fair Development Corp.

President International development Corp. Scino Pharm Taiwan Ltd. President Tokyo Corp.

Latin America Development Co., Ltd. Kai Nan Investment Co. Venture Capital Corp. Scino

Pham Biochemical Technology Co., Ltd. Tong Ting Gas Corp. Taiwan Genome Sciences, Inc.

Tung Li Development Corp. Synersy Scientech Corp. Kuan Tang Industrial Harbor Corp. Tong

Yu Investment Corp. Tong Shou Investment Corp. Tong Cheng Investment Corp. Kanh Na

Hsiung Enterprise Co., Ltd. Uni-Splendor Corp. Swenc Technology Co., Ltd. Century Quick

Service Restaurant Corp. Hontung Venture Capital Co., Ltd. Union Chinese Corp. Uni-President

Takashimaya Co., Ltd. President Direct Marketing Corp. Dayeh Takashimaya Department Store

Inc. Chongqing Carrefour Hypermarket Chainstore Co., Ltd. Jiafu (Tianjin) International Trading

Co., Ltd. Xiang Lu Industrie Ltd. Xiang Lu Petrochemicals (Xiamen) Co., Ltd. Guangzhou

Jiaguang Supermarket Co., Ltd. Ztong Yee (Tianjin) Industrial Co. T&T Supermarket Inc. PRCC

(Bermuda)I, Ltd. Outlook Investment PTE LTD. eASPNet Taiwan Inc. Uni-President (Thailand)

Ltd. President Energy Develop. (Cayman) Ltd. President International Trade & Investment Corp.

Unisebaco S.A. Presitex.Corp.,S.A.

C.E.O. of: Uni-President Group.

President of: Kai Yu Investment Co., Ltd. Kai Nan Investment Co.

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Major Shareholders of Uni-President’s Juridical Person Shareholders

Name

Giant Attempt Ltd.

Kao Chyuan Inv. Co.

San Hsin Spinning Company

Chau Chih Inv. Co.

Dec. 31, 2003

Major Shareholders of the Juridical Person

Wu, Shiu-Chi Wu Tseng, Chao-Mei Chang Ta Inv. Co., Chang, Hsin-Hsiung Wu,

Ching-Mei Wu, Ping-Chih Wu, Ping-Yuan Wu Huang, Su-Mei Wu, Chien-Te

Wu, Wei-Te

Kao, Chin-Yen Kuo Lai, Huan Kao, Hsiu-Ling Lo, Chih-Hsien Lin, Han-Di Kao,

Cheng-Hsien Kao, Te-Hsiung Kao, Cheng-Jung Kao, Chun-Chen Kao, Chi-

Cheng

Wu, Thun-Chih Wu Wang, Chin Wu, Chung-Cheng Wu, Chung-Chien Wu,

Man-Hui Wu, Pao-Hui Wu, Chung-Ho Chen, Mei-Hsiang Huang, Ai-Kuei Wu,

Tin-Yi

Kuo, Peng-Chih Kuo, Hung-Ji Kuo, Jing-Chung

Name Major Shareholders of the Juridical Person

Chang Ta Inv. Co. Wu, Shiu-Chi Wu Tseng, Chao-Mei Wu, Wei-Te Wu, Chien-Te Wu, Ping-Chih

Wu, Ping-Yuan Huang, Su-Mei Wu, Shu-Nu Wu, Ching-Mei Honz, Chonz-Hwei

Juridical Person Shareholders which are major Shareholders of Uni-

President’s Juridical Person Shareholders



Information of Directors and Supervisors

1 2 3 4 5 6 7

√

√ √ √ √

√ √ √ √

√ √ √ √ √

√ √ √ √ √

√ √ √ √

√ √ √ √ √

√ √ √ √ √ √ √ √

√ √ √ √

√ √ √ √ √ √

√ √ √ √ √ √

√ √ √ √ √ √ √

√ √ √ √ √ √ √

Over five years of

experience in business,

finance, legal or areas

required by the Company

Terms

Name

Criteria (Note)Note

Note: Mark “√ ” to indicate meeting conditions specified below:

(1) Not an employee of the Company, nor a director, supervisor or employee of affiliated companies.

(2) Not a natural person shareholder directly or indirectly owning more than 1% of the Company’s

outstanding shares, nor one of the Company’s top ten natural person shareholders.

(3) Neither a spouse nor first or second degree relative to any person specified in the above two statements.

(4) Not a director, supervisor or employee of a shareholder of juridical person of the Company directly or

indirectly owning more than 5% of the Company’s outstanding shares nor one of the Company’s top five

shareholders of juridical person.

(5) Not a director, supervisor, manager or shareholder holding more than 5% of the outstanding shares of

certain companies or institutions that have financial or business relationship with the Company.

(6) Not an owner, partner, director, supervisor, manager of any sole proprietor, partnership, company or

institution and his/her spouse, or the specialist and his/her spouse, that provides finance, commerce, legal

consultation and services to the Company or affiliated companies within one year.

(7) Not a juridical person or its representative as defined in Article 27 of Company Law.

Kao Chyuan Inv. Co.

(Representative: Kao, Chin Yen )

Cheng, Kao Huei

Lin , Chang Sheng

Giant Attempt Ltd.

(Representative: Wu, Shiu Chi)

Liu, Hsiu Jen

Hou, Po Ming

Wu, Ping Chih

Wu, Ying Jen

San Hsin Spinning Co.

(Representative: Wu, Chung Ho)

Hou Su, Ching Chien

Joe J.T.Teng

Chen, Kao Keng

Chau Chih Inv.,Co.

(Representative: Kuo, Peng Chih)

Note 1: Shareholding by Nominee Arrangement: None.

Note 2: Managers who have ever hold positions in the auditor’s Agency or its affiliated companies: None.

Note 3: Former Executive Vice President on July 1, 2003 was reassigned as President.

Note 4: The Company pays President Tokyo Corp. 140 thousand NTD per month on average to rent 1 sedan for the

use of president and 282 thousand NTD per month on average to rent 7 sedans for the use of vice

presidents.

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Information of Management TeamDec. 31, 2003

Title Name

Date

Effective

Shareholding

Spouse & Minor

ShareholdingEducation & Experience

(Note2)

Current Position

with other

Company

Managers are Spouse or within

2 Degrees of Consanguinity

Each Other

Remuneration & Bonus of

President and Vice Presidents

in 2003

Number of

Employee Stock

Option GrantedShares % Shares % Title Name Relation

President Lin, Lung Yi (Note 3) 2003.7.1 1,000,223 0.03 943,035 0.03 National Cheng Kung University Note5 - - -3,100 thousand

NTD(Note4)None

Executive Vice

PresidentLo, Chih Hsien 2003.7.1 2,591,598 0.08 54,888,946 1.62 MBA, UCLA Note5 Chairman

Kao, Chin

Yen

Father-in-

law

Total

amount for

the Vice

Presidents:

15,411

thousand

NTD

(Note4)

None

Vice President Yang, Chao 2002.3.1 10,817 0.00 - - National Cheng Kung University Note5 - - - None

Vice President Lee, Hua Yang 2002.3.1 - - 61,141 0.00 Tohoku University, Japan Note5 - - - None

Vice President Huang, Xian Yan 2002.3.1 40,681 0.00 130,392 0.00 MS., Baker University Note5 - - - None

Vice President Lin, Tsong Ming 2002.3.1 - - - - National Chung Hsing University Note5 - - - None

Vice President Yen, Po Rong 2002.3.1 1,846,713 0.05 - - Aletheia University Note5 - - - None

Vice President Chung, Chin Tson 2002.3.1 135,849 0.00 87,864 0.00 Soochow University Note5 - - - None

Assistant Vice President Yang, Ming Chin 2002.3.1 195,611 0.00 60,950 0.00 Pei Men High School Note5 - - - None

Assistant Vice President Wang, Hao Tang 1995.9.1 353,949 0.01 - - National Cheng Kung University Note5 - - - None

Assistant Vice President Chen, Jing Hao 2002.3.1 - - - - Yuanlin Senior A&M High School Note5 - - - None

Assistant Vice President Lin, Mao Shiung 2002.3.1 359,824 0.01 7,000 0.00 National Cheng Kung University Note5 - - - None

Assistant Vice President Hsieh, Chih Peng 1995.9.1 - - - - National Chung Hsing University Note5 - - - None

Assistant Vice President Chen, Qian Chang 2000.2.1 - - 45,359 0.00 Chinese Culture University Note5 - - - None

Assistant Vice President Yang, Fu Shang 2002.3.1 199,493 0.00 399,507 0.01 National Chung Hsing University Note5 - - - None

Assistant Vice President Lee, Hong Bin 2002.3.1 - - - - Fu Jen Catholic University Note5 - - - None

Assistant Vice President Yang, Wen Lung 1996.3.1 - - - - National Chung Hsing University Note5 - - - None

Assistant Vice President Wu, Chung Sung 1997.4.8 - - 104,277 0.00 MBA, Oklahoma State University Note5 - - - None

Assistant Vice President Su, Tsung Ming 2000.8.1 - - - - MBA, Iowa State University Note5 - - - None

Assistant Vice President Yin, Chien Li 2001.12.1 134,189 0.00 21,236 0.00 National Chung Hsing University Note5 - - - None

Assistant Vice President Lu, Long Hong 2003.5.1 4,367 0.00 15,384 0.00 National Cheng Kung University Note5 - - - None



Note 5: Position with other Company (which is not included in affiliated enterprises):

Lin, Lung Yi:

Director of: Prince Housing Development Corp. Mospec Semiconductor Corp. Ningbo Malting Co., Ltd.

Prospect Top Developments Ltd. PT ABC President Enterprises Indonesia.

Supervisor of: Presicarre Corp. Ztong Yee Industrial Co., Ltd. Grand Bills Finance Corp. Scino Pharm Taiwan

Inc., Uni-Home Tech. Corp. Scino Pharm Biochemical Technology Co., Ltd. Ztong Yee (Tianjin)

Industrial Co., Ltd.

Lo, Chih Hsien:

Chairman of: XinYa Enterprises Corp.

Director of: President Investment Trust Corp. Xiang Lu Petrochemicals (Xiamen) Co., Ltd. Ningbo Malting

Co., Ltd. Prospect Top Developments Ltd. PT ABC President Enterprises Indonesia.

Supervisor of: Kao Chyuan Investment Corp.

Yang, Chao:

Chairman of: Cargill-President (Nantong) Feed Protein Technology Co., Ltd.

Director of: Dalian Beiliang Logistics Services Co., Ltd.

Supervisor of: TTET Union Corp.

Lee, Hua Yang:

Director of: Xinjiang President-Scinopharm Technology Co., Ltd.

Huang, Xian Yan:

Chairman of: Atech System Integrated Co. Ltd. Professional E-Commerce Services Ltd. (BVI) Life Information

Services (Shanghai) Co., Ltd.

Director of: Qware Systems & Services Corp. eASPNet Taiwan Inc.

Lin, Tsong Ming:

Director of: Mospec Semiconductor Corp.

Chung, Chin Tson:

Director of: Chinese Products Promotion Center. Allianz President Life Insurance Co., Ltd. Grand Bills

Finance Corp.

Wang, Hao Tang:

Supervisor of: Qware Systems & Services Corp.

Hsieh, Chih Peng:

Director of: President Securities Corp. Kunshan President Kikkoman Biotechnology Co., Ltd. PT ABC

President Enterprises Indonesia.

Yang, Wen Lung:

Director of: Uni-President Marketing Co., Ltd. PT ABC President Enterprises Indonesia

Su, Tsung Ming:

Supervisor of: Grand Bills Finance Corp.

Yin, Chien Li:

Director of: Grand Bills Finance Corp.

Supervisor of: Mospec Semiconductor Corp. President Investment Trust Corp. Allianz President General

Insurance Co., Ltd.

* Position with other affiliated enterprises: Please refer to page 107~127.

Unit: Share

Information on Net Change in Shareholding and Net Change in Shares

Pledged by Directors, Supervisors, Managers and Shareholders with 10%

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Title Name

2003 As of Apr. 30, 2004

Net Change in

Shareholding

Net Change in

Shares Pledged

Net Change in

Shareholding

Net Change in

Shares Pledged

ChairmanKao Chyuan Inv. Co

(Representative: Kao, Chin Yen )- - - -

Managing Director Cheng, Kao Huei - - - -

Managing Director Lin , Chang Sheng - - - -

DirectorGiant Attempt Ltd.

(Representative: Wu, Shiu Chi)(350,000) (6,850,000) - -

Director Liu, Hsiu Jen - - - -

Director Hou, Po Ming - - 500,000 -

Director Wu, Ping Chih - (5,418,000) - -

Director Wu, Ying Jen (1,250,000) - (220,000) -

DirectorSan Hsin Spinning Co.

(Representative: Wu, Chung Ho)(324,000) - - -

Director Hou Su, Ching Chien - - - -

Director Joe J.T.Teng - - - -

Supervisor Chen, Kao Keng - - - -

SupervisorChau Chih Inv.,Co.

(Representative: Kuo, Peng Chih)- - - -

President Lin, Lung Yi (93,000) - (66,000) -

Executive Vice President Lo, Chih Hsien - - - -

Vice President Yang, Chao - - - -

Vice President Lee, Hua Yang - - - -

Vice President Huang, Xian Yan - - - -

Vice President Lin, Tsong Ming - - - -

Vice President Yen, Po Rong - - (155,000) -

Vice President Chung, Chin Tson - - - -

Assistant Vice President Yang, Ming Chin - - - -

Assistant Vice President Wang, Hao Tang - - (10,000) -

Assistant Vice President Chen, Jing Hao - - - -

Assistant Vice President Lin, Mao Shiung - - - -

Assistant Vice President Hsieh, Chih Peng - - - -

Assistant Vice President Chen, Qian Chang - - - -



Title Name

2003 As of Apr. 30, 2004

Net Change in

Shareholding

Net Change in

Shares Pledged

Net Change in

Shareholding

Net Change in

Shares Pledged

Assistant Vice President Yang, Fu Shang - - - -

Assistant Vice President Lee, Hong Bin (37,451) - - -

Assistant Vice President Yang, Wen Lung - - - -

Assistant Vice President Wu, Chung Sung - - - -

Assistant Vice President Su, Tsung Ming - - - -

Assistant Vice President Yin, Chien Li - - - -

Assistant Vice President Lu, Long Hong - - (4,367) -

Shares Transfer to Related Party

Name

Reason

of

Transfer

Date of

Transaction Transferee

Relationship between Transferee

and Directors, Supervisors,

Managers & Shareholders with

10% Shareholdings or More Shares

Price of

Transaction

(NTD)

Wu, Ying Jen Grant 2003.10.14 Wu Chieu, Yen Chiou Wife 450,000 10.85

Shares Pledge with Related Party: None.

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Total Percentage of Ownership of InvesteesUnit: Share/%

Investees

Investments by

the Company

Investments from Directors,

Supervisors, Managers,

and Directly or Indirectly

Controlled Businesses Total Investments

Shares

Percentage

of Ownership

(%) Shares

Percentage

of Ownership

(%) Shares

Percentage

of Ownership

(%)

President Global Corp. 500,000 100.00 0 0.00 500,000 100.00

President International Trade &

Investment Corp.45,012,200 100.00 0 0.00 45,012,200 100.00

President Baseball Team Corp. 30,000 100.00 0 0.00 30,000 100.00

Nanlien International Corp. 99,999,380 100.00 0 0.00 99,999,380 100.00

President Entertainment Corp. 76,759,680 61.80 47,440,320 38.20 124,200,000 100.00

Tone Sang Construction Corp. 19,800,000 100.00 0 0.00 19,800,000 100.00

Kai Yu Investment Co., Ltd. 432,205,428 100.00 0 0.00 432,205,428 100.00

Cayman President Holdings Ltd. 150,060,000 100.00 0 0.00 150,060,000 100.00

Tung Yuan Corp. 19,800,000 100.00 0 0.00 19,800,000 100.00

President Fair Development Corp. 150,000,000 42.86 200,000,000 57.14 350,000,000 100.00

President Information Corp. 4,554,000 30.00 10,626,000 70.00 15,180,000 100.00

Uni-President Organics Corp. 6,200,000 51.67 5,800,000 48.33 12,000,000 100.00

Uni-President Cold Chain Corp. 6,521,090 20.00 26,084,362 80.00 32,605,452 100.00

President Transnet Corp. 20,000,000 20.00 80,000,000 80.00 100,000,000 100.00

Presco Netmarketing Inc. 6,500,000 100.00 0 0.00 6,500,000 100.00

Uni-President Dream Parks Corp. 3,100,000 100.00 0 0.00 3,100,000 100.00

Kai Nan Investment Co., Ltd. 60,000,000 100.00 0 0.00 60,000,000 100.00

Uni-President Oven Bakery Corp. 3,600,000 40.00 5,400,000 60.00 9,000,000 100.00

Uni-President Glass Industrial Co., Ltd. 36,000,000 100.00 0 0.00 36,000,000 100.00

Tung Ho Development Co., Ltd. 101,889,615 65.06 45,303,446 28.93 147,193,061 93.99

President Pharmaceutical Corp. 10,640,494 53.74 6,614,568 33.41 17,255,062 87.15

Mech-President Corp. 8,976,000 20.00 28,253,850 62.95 37,229,850 82.95

President Natural Industrial Corp. 8,981,998 74.85 0 0.00 8,981,998 74.85

President International

Development Corp.877,500,000 58.50 153,000,000 10.20 1,030,500,000 68.70

Retail Support International Corp. 4,000,000 20.00 9,000,000 45.00 13,000,000 65.00

Ton Yi Pharmaceutical Corp. 510,000 51.00 100,000 10.00 610,000 61.00



Investees

Investments by

the Company





Shares

Percentage

of Ownership

(%) Shares

Percentage

of Ownership

(%) Shares

Percentage

of Ownership

(%)

Parabola Creative Inc. 900,000 60.00 0 0.00 900,000 60.00

Bank Pro E-Service Technology

Corp.675,000 5.00 7,200,000 53.33 7,875,000 58.33

Muji (Taiwan) Co., Ltd. 1,000,000 10.00 4,100,000 41.00 5,100,000 51.00

President Nisshin Corp. 6,120,000 51.00 0 0.00 6,120,000 51.00

President Packaging Corp. 12,659,116 50.59 0 0.00 12,659,116 50.59

President Asian Enterprises Inc.

(Preferred)540 50.00 1 0.09 541 50.09

President Asian Enterprises Inc.

(Common)3,180 49.99 1 0.02 3,181 50.01

President Kikkoman Inc. 6,000,000 50.00 0 0.00 6,000,000 50.00

President Coffee Corp. 3,960,000 20.00 5,940,000 30.00 9,900,000 50.00

Aimservices Uni-President Co., Ltd. 5,000,000 50.00 0 0.00 5,000,000 50.00

Preco Corp 13,300,000 19.00 21,000,000 30.00 34,300,000 49.00

Ton Yi Industrial Corp. 685,102,310 43.34 84,529,536 5.35 769,631,846 48.69

President Chain Store Corp. 388,407,895 45.24 3,708,107 0.43 392,116,002 45.67

Eagle Cold Storage Enterprise Co., Ltd. 40,886,710 37.36 0 0.00 40,886,710 37.36

TTET Union Corp. 47,207,477 29.51 11,573,931 7.23 58,781,408 36.74

President Securities Corp. 302,014,364 26.48 87,892,027 7.70 389,906,391 34.18

Allianz President Life Insurance Co., Ltd. 24,166,854 10.10 54,073,540 22.61 78,240,394 32.71

Scino Pharm Taiwan Ltd. 72,986,718 17.38 57,647,440 13.72 130,634,158 31.10

Mospec Semiconductor Corp. 24,750,308 30.79 79,255 0.10 24,829,563 30.89

Presicarre Corp. 74,227,904 20.50 36,208,230 10.00 110,436,134 30.50

Qware System & Services Corp. 13,474,560 24.74 550,341 1.01 14,024,901 25.75

Latin America Development Co., Ltd. 2,500,000 7.14 6,125,000 17.50 8,625,000 24.64

Tonpal Optopelectronics Inc. 146,167,489 4.89 584,464,241 19.55 730,631,730 24.44

President Tokyo Corp. 4,200,000 21.00 500,000 2.50 4,700,000 23.50

Prince Housing Development Corp. 87,214,438 9.53 105,642,053 11.55 192,856,491 21.08

Total Percentage of Ownership of Investees (Continued)Unit: Share/%

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Investees

Investments by

the Company





Shares

Percentage

of Ownership

(%) Shares

Percentage

of Ownership

(%) Shares

Percentage

of Ownership

(%)

Ztong Yee Industrial Co., Ltd. 18,042,400 20.00 0 0.00 18,042,400 20.00

Grand Bills Corp. 78,219,035 14.46 16,196,042 3.00 94,415,077 17.46

Sino-Aerospace Investment Corp. 21,000,000 8.19 21,000,000 8.18 42,000,000 16.37

Allianz President General Insurance

Co., Ltd.14,437,000 7.22 17,430,000 8.71 31,867,000 15.93

The Chinese Pro. Baseball Corp. 6,000 14.29 0 0.00 6,000 14.29

President Investment Trust Corp. 480,000 1.60 3,750,000 12.50 4,230,000 14.10

PK Venture Capital Corp. 10,000,000 6.67 10,000,000 6.66 20,000,000 13.33

Guang Dan Commodity Corp. 1,156,944 11.57 0 0.00 1,156,944 11.57

President Investment Corp. 2,370,000 7.04 1,260,000 3.74 3,630,000 10.78

New Century Info-Comm Co., Ltd. 126,800,000 2.67 295,600,000 6.22 422,400,000 8.89

Kaohsiung Rapid Transit Corp. 20,000,000 2.00 40,000,000 4.00 60,000,000 6.00

CDIB & Partners Investment Holding

Corp.27,000,000 2.48 27,000,000 2.47 54,000,000 4.95

Global Securities Finance Corp. 13,141,531 1.75 13,141,531 1.75 26,283,062 3.50

Universal Venture Capital

Investment Corp.3,800,000 3.16 0 0.00 3,800,000 3.16

Hantech Venture Capital Corp. 5,013,136 2.77 0 0.00 5,013,136 2.77

Overseas Investment &

Development Corp.1,000,000 1.11 0 0.00 1,000,000 1.11

Chinatrust Financial Holding

Company Ltd.20,328,548 0.30 18,855,964 0.28 39,184,512 0.58

Chinese Products Promotion Center 2,000 0.53 0 0.00 2,000 0.53

Total Percentage of Ownership of Investees (Continued)Unit: Share/%

Note : The above information was recorded by Dec 31, 2003.



CAPITAL AND SHARES

Source of Capital (As of Apr. 30, 2004)

Note 1: Decrease capital of $178,590,000, involving in the cancellation of 17,859,000 shares of Treasury stock,

which was approved under Ministry of Economic Affairs No. 09201091780 on Mar 31, 2003.


which was approved under Ministry of Economic Affairs No. 09201293960 on Oct 20, 2003.


which was approved under Ministry of Economic Affairs No. 09301045320 on Mar. 22, 2004.

Authorized Capital Paid-in Capital Remark

Month/

Year

Par

Value

(NTD) Shares

Amount

(NTD) Shares

Amount

(NTD) Sources of Capital

Capital

Increased by

Assets Other

Than Cash Other

Mar, 2003 10 3,424,386,800 34,243,868,000 3,424,386,800 34,243,868,000 Capital Decrease (Note 1) -

Oct., 2003 10 3,395,097,800 33,950,978,000 3,395,097,800 33,950,978,000 Capital Decrease (Note 2) -

Mar., 2004 10 3,375,384,800 33,753,848,000 3,375,384,800 33,753,848,000 Capital Decrease (Note 3) -

Status of Common Share Buy-back

Sequence 1st Round in 2003 2nd Round in 2003 3rd Round in 2003

PurposeTo maintain the Company’s credit

and shareholders’ equity.

To maintain the Company’s credit


To maintain the Company’s credit


Period of Buy-back 2003.04.25 ~ 2003.05.02 2003.05.06 ~ 2003.05.22 2003.10.14 ~ 2003.10.23

Price Range (NTD) 10.00 ~ 9.25 10.10 ~ 9.60 13.60 ~ 13.00

Classifi cation and Volume (shares) 13,778,000 15,511,000 19,713,000

Amount (NTD) 134,360,000 153,199,000 261,120,000

Cancellation and Transfer Volume

(shares)13,778,000 15,511,000 19,713,000

Cumulative Holding (shares) - - -

Cumulated Holding as a Percentage

of Total Issued Shares (%)- - -

Share Type

Authorized Capital

RemarkIssued Shares Un-issued Shares Total

Common

Stock3,375,384,800 - 3,375,384,800 Listed on TSE in Dec., 1987

April 30, 2004

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Status of Shareholders

Item

Government

Agencies

Financial

Institutions

Other Juridical

Persons

Domestic

Natural Persons

Foreign

Institutions

& Natural

Persons Total

Number of Shareholders 35 7 299 130,255 145 130,741

Shareholding (shares) 284,461,199 20,546,177 365,911,558 2,398,148,641 326,030,225 3,395,097,800

Holding Percentage (%) 8.38 0.61 10.78 70.63 9.60 100.00

Dec. 31, 2003

Dec. 31, 2003

Status of Shareholding Distributed (The Par Value for each share is $10 NTD)

Class of Shareholding

(Unit Share) Number of Shareholders Shareholding (shares) Holding Percentage (%)

1 - 999 41,623 14,542,943 0.43

1,000 - 5,000 50,742 119,640,925 3.52

5,001 - 10,000 17,639 128,815,325 3.79

10,001 - 15,000 6,423 76,954,666 2.27

15,001 - 20,000 4,267 74,086,764 2.18

20,001 - 30,000 3,487 85,031,159 2.51

30,001 - 50,000 2,824 109,156,494 3.22

50,001 - 100,000 1,871 129,465,882 3.81

100,001 - 200,000 885 121,623,632 3.58

200,001 - 400,000 419 118,917,893 3.50

400,001 - 600,000 151 74,047,633 2.18

600,001 - 800,000 94 64,904,676 1.91

800,001 - 1,000,000 50 44,919,405 1.32

Over 1,000,001 266 2,232,990,403 65.78

Total 130,741 3,395,097,800 100.00

Note: 19,713,000 shares of Treasury stock, which The Company has repurchased since Oct. 2003, are not deducted.

Note: 19,713,000 shares of Treasury stock, which The Company has repurchased since Oct. 2003, are not

deducted.



List of Major Shareholders

Shareholder’s Name

Shareholding

Shares Percentage (%)

Commission on National Financial Stability Fund,

The Executive Yuan

121,336,013 3.57

Hou, Po Yu 108,615,457 3.20

Hou, Po Yi 107,595,730 3.17

Chunghwa Post Co., Ltd. 91,782,033 2.70

Hou, Po Ming 87,218,498 2.57

Bureau of Labor Insurance 66,780,048 1.97

Kao, Lai Huan 56,372,765 1.66

Kao, Hsiu Ling 54,888,946 1.62

Liu, Hsiu Jen 52,075,709 1.53

Mitsubishi Corporation 51,721,882 1.52

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Market Price, Net Worth, Earnings, and Dividends per Share

Item 2003 2002 As of Mar. 31, 2004

Market Price Per Share

1Highest Market Price 15.70 14.65 22.20

1Lowest Market Price 9.15 9.80 13.95

1Average Market Price 11.84 11.85 17.91

Net Worth Per Share

1Unappropriated 12.39 11.99 12.64

1Appropriated 12.39 11.61 12.64

Earnings Per Share

1Weighted Average Share (Thousand Share) 3,404,736 3,374,846 3,375,385

1Earnings Per Share - Unretroacted 0.86 0.45 0.22

1Earnings Per Share - Retroacted 0.86 0.45 0.22

Dividends Per Share

1Cash Dividends - (Note 4) 0.35 -

1Stock Dividends

1Dividends from Retained Earnings - (Note 4) - -

1Dividends from Capital Reserve - (Note 4) - -

1Accumulated Unappropriated Dividends - - -

Return on Investment

1Price /Earning Ratio (Note 1) 13.77 26.33 -

1Price / Dividend Ratio (Note 2) - (Note 4) 33.86 -

1Cash Dividend Yield Rate (%) (Note 3) - (Note 4) 2.95 -

Unit: NTD/Share

Note 1: Price / Earning Ratio = Average Market Price / Earnings Per Share

Note 2: Price / Dividend Ratio = Average Market Price / Cash Dividends Per Share

Note 3: Cash Dividend Yield Rate = Cash Dividends Per Share / Average Market Price

Note 4: Pending shareholders’ meeting resolution.



Dividend Policy and Implementation Status

Dividend Policy

Since the business environment has been changing enormously, and Uni-President is experiencing the steadily

growth, the annual earnings distribution should be considered in terms of future capital budget, long-term

investment, and business funding needs, etc. in order to determine the amount to be retained or distributed as stock

dividend or cash dividend.

If there are earnings for distribution at the end of each fiscal year, after offsetting any loss of prior year(s) and

paying all taxes and dues, 10% of the remaining net earnings shall be set aside as legal reserve, then would be

appropriated as special reserve in accordance with Securities Exchange Law. The remaining net earnings can be

distributed together with prior accumulated unappropriated retained earnings. The Board of Directors will consider

the factors that were mentioned above to make the dividend distribution proposal. The dividend should be set in

the range from 50% to 100% of the accumulated unappropriated retained earnings. In general, cash dividends shall

be the preferred form of distribution. However, in the event a stock dividend is also declared, the amount of such

stock dividend shall not exceed 50% of the total amount of the cash and stock distributions combined. Therefore,

the dividends could be distributed in accordance with the resolution that is approved by the Board of Directors and

the Annual Shareholders’ Meeting. The amount of annual net earnings, after tax payment and all the above

mentioned reserves are appropriated, can be distributed by the Company; in which 2% of such earnings is fixed for

Directors’ and Supervisors’ remuneration, and not less than 0.2% for employees’ bonus.

Proposed Distribution of Dividend

The proposal for distribution of 2003 profits was adopted at the Meeting of the Board of Directors as follows:

Cash dividends:

Cash dividends of NTD 0.6 per share will be distributed. The execution date for such distribution will be

announced after the approval of General Meeting of Shareholders.

Stock Dividends:

None.

Impacts of Stock Dividends on Operation Results and EPS: Not applicable.

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Employee Bonus and Directors’ and Supervisors’ Remuneration

1. Information of Employee Bonus and Directors’ and Supervisors’ Remuneration in the Articles of

Incorporation:

If there are earnings for distribution at the end of each fiscal year, after offsetting any loss of prior year(s) and

paying all taxes and dues, 10% of the remaining net earnings shall be set aside as legal reserve, then would be

appropriated as special reserve in accordance with Securities Exchange Law. The remaining net earnings can be

distributed together with prior accumulated unappropriated retained earnings. The Board of Directors will

consider the factors that were mentioned above to make the dividend distribution proposal. The dividend should

be set in the range from 50% to 100% of the accumulated unappropriated retained earnings. In general, cash

dividends shall be the preferred form of distribution. However, in the event a stock dividend is also declared, the

amount of such stock dividend shall not exceed 50% of the total amount of the cash and stock distributions

combined. Therefore, the dividends could be distributed in accordance with the resolution that is approved by the

Board of Directors and the Annual Shareholders’ Meeting. The amount of annual net earnings, after tax payment

and all the above mentioned reserves are appropriated, can be distributed by the Company; in which 2% of such

earnings is fixed for Directors’ and Supervisors’ remuneration, and not less than 0.2% for employees’ bonus.

2. Profit Distribution of Year 2003 Approved in Board of Directors Meeting for Employee Bonus and

Directors’ and Supervisors’ Remuneration

(1) Recommended Distribution of Employee Bonus and Directors’ and Supervisors’ Remuneration: (In thousand

NTD)

Employee Cash Bonus $187,611

Employee Stock Bonus 0

Directors’ and Supervisors’ Remuneration 46,903

Total $234,514

(2)Percentage of Recommended Employee Stock Bonus to Capitalization of Earnings: None.

(3)Recounted EPS after Recommended Distribution of Employee Bonus and Directors’ and Supervisors’

Remuneration: (In thousand NTD)

Net Income $2,937,696

Employee Bonus and Directors’ and

Supervisors’ Remuneration (234,514)

Adjusted Net Income $2,703,182

Weighted Average Number of Outstanding

Shares in 2002 (In thousand shares) 3,404,736

Recounted EPS (NTD) $0.79

3. Information of 2002 Earnings Set Aside to Employee Bonus and Directors’ and Supervisors’

Remuneration:

Distribution of 2002 Earnings (In thousand NTD)

Stock Dividends $0

Cash Dividends $1,198,535

Directors’ and Supervisors’ Remuneration $23,873

Employee Bonus $95,493

The actual distribution of employee bonus and directors’ and supervisors’ remuneration above is parallel with

the recommended resolution of Board of Directors.



ISSUANCE OF CORPORATE BONDS

Issuance 1st secured corporate bond

Issue Date 2003/1/28

Face Value NTD$1 million

Issuance and Transaction Location -

Issue Price Issued at Par

Issue Size Total amount of NTD1.8 billion is divided into fi ve tranches,

namely Tranche A: NTD500 million, Tranche B: NTD300

million, Tranche C: NTD200 million, Trahcne D: NTD400

million, Tranche E: NTD400 million.

Coupon rate Tranche A, B and D: 3.950%-6ML, subject to a fl oor of 0%.

Tranche C and E: 3.951% -6ML, all subject to a fl oor of 0%.

The interest is payable every six months.

Maturity 2008/1/28 (5 years)

Guarantor Tranche A: The International Commercial Bank of China.

Tranche B and C: Chang Hwa Commercial Bank, Ltd.

Tranche D and E: Bank of Taiwan

Trustee Chinatrust Commercial Bank

Underwriter None

Legal Counsel Young & Yen, Attorneys at Law

Auditor PricewaterhouseCoopers

Repayment method Tranche A: 1st repayment of NTD150 million on January 28,

2006. 2nd repayment of NTD150 million on January 28,

2007. Final repayment of NTD200 million on January 28,

2008.

Tranche B, C, D and E will mature on January 28, 2008.

Outstanding NTD1.8 billion

Redemption or Early Repayment Clause None

Restrictions None

Credit Rating None

Other rights of

Bondholders

Amount of Converted

or Exchanged Common

Shares, ADRs or Other

Securities as of Printing

Date

None

Conversion Right None

Dilution Effect and Other Adverse Effects on

Existing Shareholders from Bond Issuance,

Conversion and Trading

None

Custodian None

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ISSUANCE OF CORPORATE BONDS (Continued)

Issuance 2nd secured corporate bond

Issue Date 2003/9/22~2003/9/26

Face Value NTD $10 million

Issuance and Transaction Location -


Issue Size Total amount of NTD 1.3 billion is divided into fi ve tranches,

namely Tranche A: NTD 300 million, Tranche B: NTD 300

million, Tranche C: NTD 300 million, Tranche D: NTD 200

million, Trance E: NTD 200 million.

Coupon rate For all Tranches: If 6ML 0.75%, pay 6ML; If 0.75%<6ML

2.5%, pay 2.69%; If 6ML>2.5%, pay 4.0%-6ML, subject to a

fl oor of 0%. The interest is payable every six-month.

Maturity 2008/9/22~2008/9/26(5 years)

Guarantor Tranche A:Chang Hwa Commercial Bank. Trache B,C and D:

Bank of Taiwan. Tranche E: Land Bank of Taiwan.


Underwriter None

Legal Counsel Sun & Lin Law Offi ce


Repayment method Tranche A,B,C,D and E are all repaid at maturity based on the

face value

Outstanding NTD1.3 billion


Restrictions None

Credit Rating None

Other rights of

Bondholders

Amount of Converted

or Exchanged Common



Date

None





None

Custodian None




Issuance 3rd secured corporate bond



Issuance and Transaction Location None


Issue Size NTD 300 million

Coupon rate Year 1 : 3.0%.

Year 2,3,4 and 5: If 3ML<1.25%, pay 3ML+0.7%; If 3ML

1.25%, pay 4.2%-3ML, subject to a fl oor of 0%.

The interest is payable every three-month.

Maturity 2008/9/29 (5 years)

Guarantor Hua Nan Commercial Bank


Underwriter None



Repayment method It is repaid at maturity based on the face value

Outstanding NTD 300 million


Restrictions None

Credit Rating None

Other rights of

Bondholders

Amount of Converted

or Exchanged Common



Date

None





None

Custodian None

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Issuance 4th secured corporate bond



Issuance and Transaction Location None


Issue Size Total amount of NTD 700 million is divided into three

tranches, namely Tranche A: NTD 300 million, Tranche B: NTD

200 million, Tranche C: NTD 200 million.

Coupon rate Tranche A:

If 6ML 1.2%, pay 6ML; If 1.2% 6ML 2.0%, pay 3.5%; If

6ML>2.0%, pay 5.0%-6ML.

Tranche B:

If 6ML 1.2%, pay 6ML+0.0001%; If 1.2% 6ML 2.0%, pay

3.5%; If 6ML>2.0%, pay 5.0%-6ML.

Tranche C:

If 6ML 1.05%, pay 6ML;If 1.05% 6ML 2.0%, pay 3.25%; If

6ML>2.0%, pay 4.0%-6ML.

Above all subject to a fl oor of 0%. The interest is payable every

six-month.

Maturity 2008/12/24(5 years)

Guarantor Tranche A and B: Taipei Bank.

Trache C: The International Commercial Bank of China.


Underwriter None



Repayment method Tranche A and B are all repaid at maturity based on the face

value; Tranche C: At the end of Year3, 4 and 5, repayment

30%, 30%, 40% respectively based on the face value.

Outstanding NTD 700 million


Restrictions None

Credit Rating None

Other rights of

Bondholders

Amount of Converted

or Exchanged Common



Date

None





None

Custodian None




Issuance Zero Coupon Exchangeable Bonds Due 2008


Face Value US$1,000

Issuance and Transaction Location Luxembourg Stock Exchange

Issue Price US$1,000

Issue Size US$100,000,000

Coupon rate 0%

Maturity 2008/12/5

Guarantor -

Trustee DB Trustees (Hong Kong) Limited

Underwriter Deutsche Bank

Legal Counsel Linklaters LLP


Repayment method Unless previously redeemed, repurchased or exchanged and cancelled, the bonds will

be redeemed on the maturity date at 100% of their principal amount.

Outstanding US$100,000,000

Redemption or Early Repayment Clause 1. The issuer has the option to call all or any portion of the bonds on or at any time

after 24 months after the closing date and prior to the maturity date at 100% of

their principal amount, if the closing price of the common shares of Ton Yi Industrial

Corporation on the Taiwan Stock Exchange in US dollars, calculated at the then

prevailing exchange rate, for each of the 20 consecutive trading days, is at least

125% of the conversion price in effect on each such trading day translated into US

dollars at the rate of exchange established on the pricing date.

2. The Company may redeem the outstanding bonds in whole, but not in part, at

100% of their principal amount in the event that 90% of the bonds have been

previously exchanged, redeemed or purchased and cancelled.

3. The issuer may redeem all, but not in part, of the bonds, at 100% of their principal

amount in the event of changes in ROC taxation resulting in addition costs to the

issuer.

Restrictions -

Credit Rating -

Other rights of

Bondholders

Amount of Converted

or Exchanged Common



Date

None

Conversion Right 1. Bondholders have the right hereunder to exchange the bonds into the common

shares of Ton Yi Industrial Corporation.

2. The bondholders may, from 30 days after the closing date to 30 days prior to the

maturity date, exchange the bonds into the common shares of Ton Yi Industrial

Corporation.

3. The detailed exchanging procedures and the rights and obligation of bondholders

who exchange fi ve business days prior to and during the closed period will

be subject to the indenture and the paying, exchange and registrar agency

agreement.

Dilution Effect and Other Adverse Effects

on Existing Shareholders from Bond

Issuance, Conversion and Trading

The bonds are eligible to be exchanged into the common shares of Ton Yi Industrial

Corporation. This will not result in any dilution effect to the shareholders of the

Company.

Custodian -

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Zero Coupon Exchangeable

Bonds Due 2008

2003.12.5

(Closing Date)2003 As of Apr. 30,2004

The Quantity of Holding

Exchanged Securities (Shares)

685,102,310 685,102,310 685,102,310

Exchangeable Price(NTD) 13.39 13.39 13.39

Market Price

(USD)

High - 98.75 108.50

Low - 97.75 97.38

Average - 98.21 102.85

Reference Shares Common Shares of Ton Yi Industrial Corporation


Exchangeable Bonds Information



ISSUANCE OF GLOBAL DEPOSITORY RECEIPTS (GDRs)

Issuing Date Nov. 24, 1992

Issuance & Listing Luxembourg

Total Amount (USD) 82,426,348

Offering Price per GDR (USD) 16.51

Units Issued 4,992,510

Underlying Securities Common Share From Right Issue

Common Share Represented 49,925,100

Rights and Obligation of GDR Holders Same as those of Common Share Holders

Trustee Citibank, N. A. Taipei Branch

Depositary Bank Citibank, N. A. Taipei Branch

Custodian Bank Citibank, N. A. New York

GDRs Outstanding (Note) 68,069

Apportionment of expenses for the Issuance

and the maintenance

All fees and expenses related to the issuance of GDRs were

borne by issuer while the maintenance expenses were borne

by the GDRs holders

Terms and Conditions in the Deposit

Agreement and the Custody Agreement

Please See the Deposit Agreement and the Custody

Agreement for Details

Closing Price per GDR (USD)

As of Nov. 30, 2003

Highest 4.54

Lowest 2.72

Average 3.38

Note1: Uni-President has in aggregate issued 6,222,862 GDRs since 1992, which, if taking into consideration of

stock dividend distributed over the period, would amount to 11,215,372 GDRs.

As of Aug. 31, 2003, total number of outstanding GDRs was 396,130 after 10,819,242 GDRs were redeemed.

As of Apr. 30, 2004, total number of outstanding GDRs was 68,069 after 11,147,303 GDRs were redeemed.

Note2: Due to the outstanding units was less than 400,000 units, Uni-President has notified the Trustee to terminate

the GDRs program on Sep.1, 2003. GDRs had been delisted on Dec. 1, 2003 and GDRs’ holders can redeem

their GDRs before June 1, 2004.

PREFERRED SHARES, EMPLOYEE STOCK OPTION, MERGERS

AND ACQUISITIONS: None

39 Business Activities

44 Markets and Sales Outlook

59 Human Resources

60 Labor Relation

62 Expenditure of Environmental Protection

64 Social Responsibility

65 Important Contracts

66 Litigation and Non-Litigation Incidents

67 Acquisition or Disposal of Major Assets

OPERATION HIGHLIGHTS

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BUSINESS ACTIVITIES

Scope of Business

Groups Range of Business Division Revenue Ratio

Provisions Group Manufacturing and marketing of

animal feeds, aquatic feeds, edible

oils, fl our and grain & feeds.

Foodstuff Division 12.91%

Animal Feed Division 8.25%

Aquatic Business Division 2.28%

Edible Oil Division 7.78%

Flour Division 2.55%

Instant Food

Group

Manufacturing and marketing of

instant noodle, rice noodle, fresh

food, canned pickles and seasoning

products.

Food Division 10.40%

Soy Sauce & Seasoning Division 2.44%

Beverage Group Manufacturing and marketing of soft

drinks.

Beverage Division 16.07%

Chilled Food

group

Manufacturing and marketing of dairy

products and chilled beverage.

Dairy Product Division 24.06%

Low-Temperature

Food Group

Manufacturing and marketing of

meat products, frozen foods and ice

product.

Meat Product Division 2.15%

Frozen Food Division 1.78%

Ice Cream Novelty Division 1.01%

Healthy Food

Group

Manufacturing and marking of

healthy foods, breads, toasts and

cakes products.

Healthy Food Division 1.40%

Bakery Division 5.98%

Others 0.94%

Products planned to develop

In order to meet the rapid change in food market, Uni-president has devoted to develop new products. Products

planned to develop include Drinking Yogurt with new flavor, Vegetable Juice, Custard Pudding, Left Bank Cafe Red

and Blue Series, Sprouted-Soy Milk, Coffee Desserts, Nutritional Supplement with fish oil, catchins, or chitosan, Toast

for fresh food, Salty Bread, Cooking Rice Wine, Black Bean Sauce,Blended Olive Oil, Polyphenol Health Oil, Essential

Fatty Acid Cooking Oil, “Yu” series and “Kim-Gi-Fong” series of flours and feed for Cichlid, marine fish and discus.


Industry Outlook

Since the economies in Taiwan, China and other Asian countries have shown significant improvement over the

year, the industry value for domestic consumption is likely to be rising. According to the report provided by ITIS,

Taiwan’s food industry value in 2003 increased by 0.5% to NTD 413.5 billion and industry growth in 2004 is

forecasted at 3 to 4%.

In 2003, the effect of SARS impacted the sales of Taiwan food industry with most food-related products suffered

and few products benefited. It was not until the second half of the year where the spread of the disease had been

slowed down and the industry then begun to recover. Consumers were convinced that having a good living habit

and eating healthily could effectively fight the disease. Furthermore, they show higher interests in consuming health

foods longer term for better immune system. It is expected sooner or later, the growth for health food industry will

be inflated.

Confronted with the market challenges in innovation and transformation, many traditional food manufacturers

have added a health care business into their operation. Attributed to their extensive knowledge in food field, they

can easily enroll in biotechnology industry by developing Chinese herbal medicine and health food initially.

However, the overall health food market is quite competitive, with many state-owned or private enterprises, such as

Taiwan Salt Industry Corp., Taiwanese Sugar Corp., Chinese Petroleum Corp. and Formosa plastics Corp. that are

deep-pockets, and others like importers, retailers and direct sellers.

The global shortage of raw material subsequent to the increasing demand in China will continue to prevail

through 2004 and become a major concern for Taiwan food industry in 2004. Although the ongoing excessive

costs from raw material will put more pressure on those food companies who had already been troubled by the

price war, it will reduce inappropriate pricing actions, and reflect the actual operating costs that leads to the price

stabilization.

In an attempt to understand the after-effect of Taiwan market after entering WTO, we found no considerable

outcome since Taiwan had already been an active player in Asia. Contrarily, the economic recovery in Taiwan in

2004 has been lifted up by consumers’ demand for premium quality at higher price. As for Uni-President itself, which

is a leading food manufacturer in Taiwan with notable reputation and outstanding performance in quality, it will

realize more profits than other companies in the same industry.


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Research and Development

Expenditure of Central Research Institute (CRI)

Year 2003 2002 As of Apr. 30, 2004

Total Expenditure 317,848 293,611 108,342

Achievements of Central Research Institute

Year 2003 2002 As of Apr. 30, 2004

Number of New Products launched 176 169 102

Number of Research Reports 400 263 64

Number of Patents Approved 1 1 1

Pending 8 1 10

Number of Critical Self-developed Technologies 22 15 5

Number of Technical Alliance and New

Technology Introduced

24 17 1

Number of Signifi cant Quality Improvement 18 3 7

The three essential guidelines of a healthy eating habit, which Uni-President continues to lead consumers to and

to develop products upon, are:

* Function: AB drinking yogurt, Oligo-saccharides beverages, Amino acid drinks,... etc.

* Health: Traditional favorites such as chicken essence that could be served as food and medicine, and nutritional

supplement such as vitamin drink.

* Nature: Products made with natural sources, for example, grain powder, oatmeal, brown rice powder and energy

product series.

To satisfy consumers’ needs for health food, the Bioscience Center of CRI incorporates three areas of expertise in

health food, Chinese medicine and gene technology and searches for functional ingredients in order to develop

foods that benefit customers. Following the correct health care “prevention rather than treatment”, we have

discovered propolis products to help regulate human immune system, prevent cold and alleviate allergy. Moreover,

learned from the “reverse-regulation theory” in Chinese medical science, we have created an exciting caffeine-free

beverage made with rhodiola (a traditional herb from Tibet) that expects to effectively increase soluble oxygen

content in blood and boost metabolism.

1. Overview of Product Development

176 new products were launched in 2003. Total sales generated from new products launched in past 3

years accounted for 15% of company’s sales. Over the years, CRI is devoted to develop various creative products

as well as invent many breakthrough products that dominate the market. Successful brands/products include

Imperial Big Meals (instant noodle with retort pouch), chilled tea series, AB drinking yogurt series, Wagamama

(Japanese flavor ramen) and milk flan series. These innovative products not only satisfied consumers’ needs, but

also won several prizes from Chinese Food Technology Association.

2. Overview of Research Achievement

CRI focuses on the development of dairy products, beverages, instant noodle, meat products, ice cream

products, flour, and edible oil. For many years, CRI has committed to improving its food-processing technology

In thousand NTD



and gradually building up its core competencies. Also, it has been retaining its leadership position in market and

in technology development.

(1) Improve product quality through continuing innovation and technology.

To totally assure products qualities, CRI constantly seeks to food technology development. Selected

examples are listed below:

* Sensory evaluation of off-flavor in raw milk: In order to preserve quality of raw materials, CRI sets up quality

measures for dairy products.

* Stabilizing emulsification on tea and coffee products: In order to eliminate floating oil and to improve the

quality of dairy products, CRI builds the technology for stabilizing emulsification.

* Production technology for sauce packs: This technology allows stock concentrate to store at room

temperature yet keep fresh and safe.

CRI also had great achievements in enhancing the health benefits of foods:

* Technology for fermented juices with living lactic acid bacteria: Uni-President. implements this technology

to produce nutritious juice with living AB lactic acid bacteria.

* Technology for tea extraction: This technology preserves the complete functional components in tealeaves

of our tea products.

Moreover, CRI has established several analysis methods to detect pesticide residues and to measure

nutrients in order to safeguard the raw materials and retain nutrients in our products.

(2) Adopt innovative food-processing technology for higher production efficiency.

CRI has developed several food-processing technologies and processes. These refining processing

technologies not only increase our productivity, but also indirectly enhance the mass production process in

the food industry.

* Kneader and low-temperature extraction methods of tea

* Sterile filling technology for PET beverages

* Technology for preserving juicy roast products

* Technology for fruit preparation

* Tunnel oven on roast products

(3) Acquire raw material technology for minimization of production costs.

To reduce the cost of raw materials, CRI customizes specification of raw materials and sets up a quality-

authentication system for screening the second suppliers. These increases Uni-President’s bargaining power

with suppliers and eliminates monopolize supply of raw materials.

Moreover, CRI has organized research teams in flavor and package and gradually built up its expertise in

those two fields. The flavor team has helped Uni-President switch to high concentration flavor and therefore

reduced the stock of flavorings and inventory costs; package team, on the other hand, has analyzed

materials of carton and discovered best idea in order to reduce waste and lower package costs.

3. Research Scope

(1) Discover latest production process and technologies for development of Chinese food and other new

products.

(2) Explore and apply natural additives, environmental packaging materials, and new functional ingredients.

(3) Research on microorganisms and scale up to full production for fermentation, including the application in

winemaking, fungal fermentation fermented dairy products, fermented juice, and health food.

(4) Expand fresh food business by applying relevant fruit and vegetable preservation technology.

(5) Research study on biotechnology, medical and health care, as well as considering the applicability of

introducing relevant technologies.

(6) Develop products that are accepted universally.

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Long-term, Short-term Business Development Plan

Now at Uni-President, our direction is clear- becoming a leading food company in Asia. Our strategies are

targeted at offering goods to the world’s Chinese that comprises one-fourth of the world population. Enabled by

our excellence in offering foods that meet the expectation of Chinese consumers, we will build a profitable growth

in the long run. Generally, our strategies are set according to the principles of “One Hub, Four Pillars”. The hub of

our operation is the brand, and the four pillars are channel, production and research, trade, and strategic alliances.

The proposed tasks and expected progress for 2004 are summarized below:

Brand

We will continue to develop our brand in depth by intensifying established brands and cultivating new

international brands. To pay more attention to these strong brands, we will form a brand management team for

each potential megabrand in order to maximize its return. Also, we will put all our energies on the creation of more

megabrands in each product category. By coordinating and enhancing Group’s product combination, more variety,

and more complete lines of product choices will become available.

Channel

We will continue to enhance our operation through team merchandizing with our channel partners. With more

openings of stores and the emergence of new channels, our products will be increased its accessibility, and be

conveniently reached by our consumers. In 2004, Uni-President will establish new sales team in north, central and

south parts of Taiwan. Their aims are at improving food service business that provides products and services to

restaurants, schools, hospitals and out-of-home operators, as well as betel-nut stands. In China, we will organize our

existing 120 sales units and redistribute our sales forces to strengthen our relationship with strong retailers.

Production and Research

Our strategic priority in production for 2004 is quality improvement. We have established a team to focus on

phasing in finest production equipment, reviewing and improving OEM and QA policies and constructing an quality

environment that led to better product quality, lower production costs and shorter delivery schedule.

Nowadays, consumers are becoming more and more concerned about the health and natural nutrients in the

foods. We have been endeavoring to cleanse the residue of pesticides, preservative and every artificial additive left in

our products. In the future, by balancing the development of our minds, eating habits and surrounding

environment, we could convey the health care information and present products developed from the concept of

cosmology of Honmono to the public in the hope to provide higher-value products and services that consumers

enjoy.

Trade

A total of forty-eight oversea operation centers will join together and form an international trading network

similar to that from a Japanese trading company. Its function is to offer direct related procurement and marketing

services, develop a triangle trade and international procurement agency in order to support the economics of scale

and reach higher value-added services.

Strategic alliances

In Taiwan, China and Southeast Asia, Uni-President has gradually built up inclusive operating networks in these

three regions. The next three to five years will be the crucial time for Uni-President to integrate its global resources.

We will put together the research, marketing and branding from many countries in Asia, and create a Gateway to

Asia for European and US food companies to enter into. Also, through our broad understanding about Asia and

extensive network, and the advanced product planning, research and brand management from our strategic

partners, we could offer premium products and services that meet the local consumption style.


MARKETS AND SALES OUTLOOK

Market Shares by Major Product Category

Market Analyses of Major Product Categories

Domestic sales are accounted for 98% of the company products. After forecasting the possible market challenges

and trend, the company arrives at its 2004 objective of sales volume of 1,235 thousand tons in provisions, 494,400

thousand packs in instant noodle, 698,227 thousand liters in beverage & dairy products, 43,422 thousand liters in

sauce and seasonings, and 61 thousand tons in frozen foods, bakery products and meat products.

Market analyses of major products are as follows:

Foodstuff

Foodstuff division was established in February 2002 to vie with the industrial changes and the market

competition of increasingly imported poultry and livestock products following the entry of WTO. Its goal is to

construct the largest foodstuff supply network by integrating the sales of animal feeds, livestock products and grains.

Division sale for 2003 were made up of 80% in grains, 10% in livestock feed by contract breeding, 8% in foodstuff

materials/edible oils and 2% in agricultural services (compound fertilizer).

It was a tough year for foodstuff companies in 2003. The insufficient supply of material globally and expensive

sea freight charge would escalated the costs of grain and oil seeds and then affected entire Taiwan foodstuff

industry that operated with many imported goods. In addition, unfavorable shipping conditions have made

companies difficult to manage inventory and sales, and the BSE in USA and Bird Flu in Asia have seriously attacked

the prospect of poultry breeder and feeds producers. It is anticipated that if this disease will not reoccur, the positive

growth of sales in animal feeds will soon to be seen.

Looking forward into 2004, soybean, maize and imported fish powder are expected to grow by 5%. The growth

of foodstuff materials/edible oils is targeted at 5% whilst the agricultural service is estimated at 20%.

In addition, we have the following competitive advantages that help to run our business effectively. First, our

imported raw material can be used for production or be put on sale so improves our inventory and cost control.

Second, we could leverage our fine corporate image to enhance our brand equity and create profitable sales. On

the other hand, we have disadvantages too. The growing freight charge and raw material costs increase our

procurement expenses and difficulties. Given that international quotations for materials are at high end now, we can

expect market price to fall when scare supply vanishes and then forms a difficult operating environment. We plan to


Category Market Share Category Market Share

Animal Feeds 7.8% Fresh Milk 24.0%

Flour 13.5% Drinking Yogurt 38.0%

Edible oil 13.7% Flavored Milk 42.4%

Instant Noodle 46.2% Flavored Soybean Milk 73.1%

Soy Sauce 32.0% Puddings 65.3%

Coffee Drinks* 22.2% Meat Products 29.1%

Tea Drinks* 47.7% Frozen Foods 15.5%

Chicken Essence 20.4% Ice Cream Products 16.6%

*chilled and normal-temperature

link our procurement to the sales and distribute a group of experts to deal with the market challenges, including the

increasing China’s presence in global grain market. We have been collecting lots of information and conducting in-

depth analysis about global market that prepare us for operating an integrated business of foodstuff materials across

Taiwan Straits.

Animal Feeds

Major products are animal feeds for hogs, chickens, ducks, geese, cattle, and pet foods for dogs and cats.

In 2003, affected by unfavorable climate and increasing freight charge, the costs for imported raw material

escalated, which brought greater expenditure onto the feeders. Meanwhile, the shortage supply of livestock

products has raised poultry feeders’ insecurity that led to greater management risks for animal feeds supplier. Our

sales in livestock products in 2004 may shrink as part of sales being taken by imported goods after Taiwan entered

WTO. Meanwhile, the spread of Blue Bird may continue to weaken the sale of animal feeds.

We have already integrated the operation from material suppliers to the sales channels, developed TMR

technology and organized a service team that formed by a group of professionals to reach product differentiation

and market segmentation. Also, we have extended our business into concentrated feeds market and targeted our

mission in niche management. Since the raw materials of maize and soybean are dependent on imports, we may

lose profit during international price fluctuation. Together the shortage supply, escalating costs and weak finance

structure will increase the management risks of poultry breeders.

Being aware of relatively higher operation risks, we have taken several strategies to minimize our loan risks by

tightening clients’ credit lines and increase our profit through effectively management of raw materials.

Aquatic Feeds

In 2003, the best selling products in Taiwan were grouper and cobia fish feeds whose sales grew by 116%.

Export sales grew by 11% and prawn feed was the main product sold in pan-lndia Ocean area and Southeast Asia.

Affected by SARS and medicine residues event during 2003, the sale and price of fish products dropped and

domestic cultivators suffered. But through the efforts of our sales force and researchers, we have achieved our goal

with 9% growth rate from last year. Beginning from 2004, the price for imported raw material (accounted for 71%

of total materials) increases and that creates a difficult operating environment for animal feeds manufacturers and

feeders as their costs can not be transfer onto the selling price.

Although confronted by these adversities, we are still confident to manage our business well with our

competitive advantages. For example, we have good corporate image, clear brand perception and professional

aquatic feed experts; we could adjust our marketing strategies according to the market condition in order to reach

product differentiation; we could leverage group procurement to effectively control the raw material cost and the

quality. We however cannot relocate the increasing material costs onto the customers and that lowered our profit.

Meanwhile, the price for aquatic product continued to depress and staggered the sales of aquatic feeds. During this

hard time, we tend to adjust marketing approaches by focusing on the sales of higher profit products, creating

differentiation in brands, channels, and new markets respectively and functioning with aquatic products for higher

domestic market shares and oversea sales.

Flour

In Taiwan, the market for flour is pretty much mature. In early years, due to the governmental regulation on

imported wheat limit, nearly all the millers in Taiwan have received sizeable profits. Until recent years, deregulated

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wheat imports have caused stern competition and hit millers profit dreadfully. Not only there had been many milling

companies withdrawing from the market, but more exists are to come in 2004. The market will evolve into a

situation where only big companies present and small companies disappear. Along with this new trend in milling

industry, we will seek to improve our sales quantity to 300,000 tons of wheat per annum and get hold of more

market share in the future.

We have access to the latest milling technologies and extensive sales network over the nation. Our formulations

are tested under varying conditions to ensure superior performance each and every time. Moreover, we have

flexible sales network and an after-sell service centre to effectively serve our customers.

To resolve the issue of insufficient production factories, we will search out other companies to help co-produce

our products.

Edible Oil

Major products are soybean powders, refined soybean oil for commercial use and cooking oil for domestic use.

Affected by the depression of pasturage industry and the decreasing demand of soybean powder because of the

rises of substitutes (ex. full-fat and high protein soybean powder), managers for soybean powder business have

operated with warier plans. Sales in cooking oil for commercial uses improved steadily as more eat outs occurred,

but market scale of home-use cooking oil continued to diminish except healthy blended oil and high price edible oil

(ex. extra virgin olive oil) grew.

With competitive benefits of good corporate image, reliable product quality, well-known brand and variable

product selections, we can easily satisfy our customers. Contrarily, threats are aroused from rising costs of imported

raw materials, increasing controls of channels by large retailers, greater bargaining power with retailers, intense

price competition and ineffective advertisement. Although some of the threats may seem severe, we have already

found answers to deal with these problems. We will develop higher price and smaller package nutritious cooking

oils; pay no attention to the price war; and maintain an optimal sale in each channel. Moreover, we will observe the

quotation for international raw material closely in order to reach cost advantages and pursue profitable growth.

Instant Noodle

In 2003, annual sale for instant noodle division was mainly divided into following product lines: bowl, tub, cup

and bag instant noodle. Of all the products, low-priced bag noodle contributed the most income. Leading brands

are Tung-I, A-Q, Ke-Shiue-Mian, Imperial, One More Cup and etc. In addition to the operation of these leading

brands that created positive sales, we have been investing in new product development yearly. For example, in

2003, the Hot Shop brand series seek to work with outstanding restaurants to develop unique instant noodle

products. Hot Shop series made a hot sale at that time. Even though the competition became intensive and

extensive in instant noodle market upon the emergence of Master Kung, Uni-President still retained a 46% of market

share.

For the coming three to five years, overall instant noodle market is assumed to grow little by little. With greater

competition among brands, we are determined to retain our leadership position by implementing innovative

technology and creating creative marketing ideas. For 2004, the strategies for product promotion will be

emphasized on differentiation. We will develop competitive products that are satisfied by consumers, and leverage

existing eminent brand names to new product development. Our core competence- noodle texture will move into

mass production this year in order to deliver products of higher quality and better taste. Moreover, material mix will

focus on the development of F.D. ingredient. We will seek to cooperate with OEM factories in Taiwan or in China in


order to decrease our costs and improve our product value.

We are sure to succeed in the upcoming year with our abilities to innovate, experienced marketing force, solid

distribution structure and computerized production system. Although we may encounter high personnel cost,

growing marketing expenses due to market chaos and slow product development from quick product turnover, we

will rearrange our human force, disregard price battle, close ineffective selling sites for less marketing wastes, and

establish a marketing research team for faster product development.

Dairy Products and Chilled Drinks

The major product lines are fresh milk, flavored milk, drinking yogurt, chilled coffee, chilled tea and puddings.

In 2003, our fresh milk sales grew by 2.7% with the boost in sales of premium fresh milk (Ray-Shie). Sales of

flavored milk category also increased by 11.4% after new products launched. Drinking yogurt, affected by the

“Sugar Event” in September 2002, declined by 21.1% whilst sales of chilled coffee brands was oppressed by 7-11’s

store brands and dropped by 9.8%. Sales of Pure Tea series remained growing at 12%. Along with the successful

launch of Big Pudding series, the sales in pudding category grew up by 11.4% last year.

In terms of market demand and growth, sales in premium fresh milk and flavored milk categories are estimated

to grow by at least 3% to 5%. Although sales of drinking yogurts were decreased in the second half of year 2003

due to “Sugar Event”, it is expected to rebound or increase in 2004. Chilled tea market is expected to rise 10%~15%

from the recession of normal temperature tea. Puddings, although seem saturated, the launch of Big Pudding series

still attracted another ages of consumer group and contributed additional 5% to the sales of puddings in 2004.

Impacted by the oppression of 7-11’s store brand, our chilled coffee sales have been diminished for two consecutive

years. To bring this trend to an end, we have launched new chilled coffee series in 2003, which has been widely

accepted by most consumers. Starting this year, we are concentrating on introducing more flavors in order to attract

more purchases and expand dairy sales.

In fact, we have several benefits that allow us to operate effectively. One, the establishment of promotion team

may effectively and completely block invasions from each competing brand in every channel. Two, we can work

with 7-11 retail chains through team merchandising so that improve our productivity and maximize our factory

usage. Yet, we have few problems to tackle. This includes fast change in consumers’ purchasing behaviors, lesser

chances for product survivals, more price battles and decreasing profit. In the future, we will introduce more flavors

or improve taste, avoid excess marketing wastes from too many new product launches, and increase gross profit

rate from reducing costs through removal of on-pack promotion.

Beverages

The major product categories of beverage division include tea, coffee, vegetable juice, and drinking water.

In 2003, the total market size of beverage in Taiwan was about 46.6 billion. It was a prosperous year for Uni-

President in sale of tea beverages. Although affected by SARS and increasingly international brands, My-Shine series

still captured a stable sales increment by green marketing, and kept its leading position in the tea beverage market.

Chai-Li-Won Series, due to its high quality and unique flavor, built its influence in the market. In vegetable juice

market, tomato juice lost its popularity and the sales of Juice Series reduced slightly due to the downturn of this

market. In the sports drink market, the emphasis on the effectiveness of amino acid supported a modest growth of

Pro Sweat Series sales. Moreover, our team merchandising with 7-11 in coffee products worked pretty well.

Unfortunately drinking water did not perform well this year, as there were too many low-priced products from local

brands competing for market share.

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Nowadays, tea drink is the largest category in the beverage market as it is the most ordinary beverage in daily life

that occupies nearly 40% of total beverage sales. Accompanying the increasing health-conscious by general public,

tea becomes not only the indulgence but also the functional drink. This drives the sales of tea market, particularly in

green tea category. Other than the traditional flavors (black tea, green tea, oolong tea and milk tea), the western

herbal tea is most desired by female consumers recently. Fuelled by the efforts from beverage companies, the tea

market will keep expanding. Uni-President will retain its No.1 position in the beverage market at the benefit of its

comparative advantages in this field.

Drinking water is the fastest growing category all over the world in recent years. According to the AC Nielsen

2003 report, the sales of water in Taiwan declined by 8.3 percent due to the rise in sales of green tea. But based on

the historical development of other countries and the trends of drinking water in Taiwan, the market for drinking

water will escalate.

In response to the falling sales of tomato juice, we have emphasized function, nature and health on our

vegetable juice development. We wish our product be enjoyable and supportive in repairing customer’s dystrophy

from tense lifestyle and pressures.

Thanks to the prevalence of coffee shops, the sales volume of coffee has been increasing gradually. Since

consumers tend to choose coffee by brands, it is very important to establish a brand that is preferred by new or

existing customers.

Uni-president has the competence and advantages in beverage market because of the established advanced

aseptic filling equipment and technology, excellent R&D team and creative marketing strategy. In addition, we have

the advantage of performing team merchandising with 7-11 that develops new products jointly with 7-11.

Bakery Products

Major products in this division are toast, bread and cake.

In Japan, machine-made bread is well developed and products are quite diversified in CVS channels. Ever since

Uni-President bakery factory was established twenty years ago, bakery group has been cumulating bread

manufacturing technique and know-how. Now Uni-President has become the largest machine-made bread maker

that supplies products to all kinds of channels including 7-11, OK, and other key accounts. Beginning from year

2000, Uni-President has been manufacturing in batches and delivering twice a day to 7-11 outlets in order to

provide fresh, prompt and delicious bread to the customers.

As matter of fact, we have much equipment and capabilities better other companies. One, we own a group of

research talents that consistently produce ideal products to satisfy consumer wants. Two, the regional baking

factories make our delivery of fresh and delicious products easier. Third, our close relationship with retail chains help

promote products and create market value through mass media.

Although our profit was pressed by the increasing costs of imported raw materials, we will continue to invest in

automotive equipment in order to lower costs and increase profits.

Frozen Foods

Uni-President has production lines in dumplings, cooked dumplings, chicken nuggets, and meat/fish balls whilst

the hot-pot dumplings and buns are produced by our OEM factories.

It is about NTD 8 billion in market size of frozen foods in Taiwan. Among which, 70% are from top five major

categories: dumplings, chicken nuggets, meat/fish balls, hot-pot dumplings and buns. Frozen food market is quite

competitive in Taiwan and profit diminishes due to price wars. To cope with the changes in channel structure,


product feature and increasing female workers, frozen foods have been penetrating into three key channels

including hypermarket, supermarket chains, and food services business. Also, enabled by the home delivery and pre-

order system, home meal replacement products received higher consumption than ever before. This supports our

focus on delivering 4˚C, group and home meal products, as well as strategically aligned with other companies

through OEM and ODM in order to lower our production cost and shorten product launch period.

Our competitive advantages are built on our innovative abilities, experienced sales and marketing teams, and

strategic alliance with manufacturers. Together we could construct a complete supply chain. Disadvantages are high

production costs, demands for small quantity and more choices, price wars and low profit margins. We will seek to

lower our procurement cost, speed our new product launches and market higher profit products.

Ice Cream Products

Main products are ice bars, cones, sundaes, shave ices, snacks, dip and the cup ice creams. Among which, ice

bar contributed greatest income.

Although ice cream sales in Taiwan were eroded by SARS, economic deflation and teashops in 2003, our sales

turned upward with inflated sales from imported ice cream and others. The sales from all channels continued to

grow except the hypermarket stayed fair. The ice bar was the most popular product in ice cream market.

The center of the marketing mix in 2004 will be product differentiation. We will develop competitive products

that are wanted by our customers, and apply the names of established eminent brands onto ice cream products.

Moreover, we will leverage innovative marketing and form strategic alliance with international companies or act as

an agent for foreign brands to broaden our product offers. To resolve the issues of slow product development and

the depressed profit from price war, we will establish a product database to preserve the data for future product

development and stabilize the fluctuation of retail price.

Soy Sauce and Seasonings

The main products are soy sauce and seasoning products, and brands are Uni-President, Four Season and

Kikkoman.

In terms of sales volume, the soy sauce market is quite stable with only a minor fluctuation. Average annual

growth rate is 3%, but sales growth for the past three years has declined gradually. With more eat-outs, sales in

food service and processing sector will increase whereas home use market will decrease. In order to sustain our

leadership position in the soy sauce market, we will offer high quality and healthy products to our customers and

maximize our sales in each existing and new channel through effective marketing tactics.

We will stick to the strategy of high quality product development and adjust the product structures accordingly.

Our aim is to become the leading brands through the elaboration of new product categories such as ketchup, spicy

flavor sauce and rice wine. Globally, we will import unique seasonings from oversea to satisfy various customer

demands and build international brand names for our seasoning products.

Apparently we have several competitive advantages. One, our cooperation with international sauce giant

Kikkoman will enhance our skills in sauce production. Two, the extensive channel network increases our product

accessibility. Three, the continuing input of research and development consistently helps to deliver new products.

Four, the global plan of Uni-President Group will build up international brands. On the other side, to deal with slow

growth rate of soy sauce sales and increasing raw material costs, we will work hard to develop new product

categories and improve our sales from food service operation. We will ensure the cost for each process be

reasonable, and leverage product differentiation and superiority to minimize the impacts of increasing costs and

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price competitions.

Meat Products

Uni-President was the first to launch a product with nitrogen filling package. There were many Chinese style

processed meat products available in the market. In our Chinese style sausage brand Imperial, twin-pack was

introduced to the market in 2001 to offer customers a convenient way of storage. Meanwhile, in our western style

meat products, we have introduced Proker (western style) brand in 2001 that highlighted the unique flavor of the

meat products that are being seasoned for a total of 72 hours. Imperial was the leading brand in the market with a

share of 36.3% in Taiwan and Proker ranked second in the market with a share of 19.7%. Our products are

available in all kinds of channels, including traditional stores, our key accounts, convenient store, specialty store and

food service business over the nation.

Within a higher living environment, consumers attached more importance to health and demanded better

qualities. What they want is tasty, healthy, hygiene, safe, and convenience. Therefore, health is the core of the

future. Accompanying with the rising eat outs, home meal replacement products and foodservice businesses will be

flourishing.

The performance of processed meat product was dependent on channeling strategies, which lower our factory

price and raise our channeling fee. Consequently, our profit was squeezed. Recently, the increasing meat price

brought more difficulties into meat processors management. In this hard business environment, we will seek to use

clean and certified raw material to develop higher quality product; offer consumers more varieties of healthy and

delicious products in smaller packages. To seize the opportunities in the increasing eat-out pattern, the demand for

food business will grow. We will then supply more products to food servers in order to expand our sales.

Healthy Foods

The main products in healthy food division are chicken essence, Meiji milk powder, grain products and healthy

drinks. Key channels are hypermarket, traditional market, specialty store and convenient store. In 2004, we will seek

to increase our product visibility and sale in drugstores, cosmetic shop, direct selling, mail order and TV ads. For the

operation in drugstores, we will re-plan our strategies to achieve our goal.

In chicken essence market, Uni-President is the leading brand in flavored chicken essence. We have repackaged

flavored chicken essence products in 2003 to strengthen its competitiveness, and to develop other price range

product lines to reach market share of 35% by 2007. For milk powder, Uni-President is the representative of Meiji

Milk Powder in Taiwan. As a result of drastic competition in baby milk powders and the decreasing birth rate, the

milk powder market will be hard to manage. We will then focus on building closer relationship with hospital and

drugstores in order to stabilize our growth. For the porridge product series, in addition to our existing salty flavor,

we will add sweet flavor later on. We will present products in various package layouts. For example, convenient

packs will be brought to the office workers. Furthermore, in April 2004, we will develop functional grains specifically

designed for seniors and launch health care drinks.

Our competitive advantages are our excellent R&D experts, rich product resources and data. We are capable of

utilizing our production technology to enhance our production capacity and through our extensive channel

network, we could approach our consumers easily. Disadvantages include divergent marketing resources that force

us to commit in creating product synergies and integrating marketing resources.


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The Producing Procedure of Animal Feed

raw materials scale

by-product scalping

scalpin storing

mixing train sporp

storing pelleting cooling crimping sifted

pelleted feed packaging

premix

miled fat

molasses

scalping package tank mash feed

crimping

grinding

screening

storing automatic scale

wheat separator scourer tempering mixer scourer separatormagneticseparator

myfaintensetempering

break roller sifter purifier reduction roller sifter insect impacter silo mixer

secure Sifter weighter package flour product

by-product package wheat bran

The Producing Procedure of Main Products

The Producing Procedure of Flour



The Producing Procedure of Instant Noodle

lard

garlic

onion

boiling

medium

protein flour

flavor water

premix

mix

mixer

sheeting

sheeting roller

threading

noodle slitter

steaming

pressurized steamer

seasoning seasoning powder packweighing scale mixing

mixer

filling

packet filler

imperial bigmeals tetort

pouchfehydratedmeat/veg.

boiling stewing indexingfilling

packet filler

sterlizing

sterlization

drying

dryer

storage

finished goods

cutting into portion

cutting

spray seasoning sopp frying

seasoning sopy oil

cooling

cooler

packaging

cartoning

machine

case

wrapper

colling freezing

freezer

mixing

mixer

filling

packet filler

oil packs

sugaringredientreception

sugar syrupfissolving &giltration

storage

rawmaterialreception

rawmaterialtreatment

raw juicestorage

fructose reception

UHT-sterilization

asepticfilling

strawapplication

traypacking

film shrinkpacking

palletizing

folk lift

storage inwarehouse

random inspectionbefore distribution

delivery

mixing

The Producing Procedure of Aseptic Brink Juice

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The Producing Procedure of Aseptic PET Tea

The Producing Procedure of Fresh Milk

raw milk QC store QC QCblend clarify

QC refrigemned milk

pasteurize fill

bottle bottle washing QC

pure pack QC

PS mold

Soft Water Storage Tank Filtering(RO) Storage Tank Hot Water Tank

Concentrated Water Well Water Pool

Hot Water Tank Heating Extracting

FilteringSugarPremixCoolingD301 TankPreforms

Blowing

Sterilizing

Rinsing Sterilizing

Filling

Capping

Coding

Waste Water

RinsingSterilizing

Caps

Cooling

Buffer Tank

Clarifying

Storage Tank

Mixing

Labels

Labeling

Finishing Stock

Inspecting

Casing

Cartons

Peracetic Acid

Steritizing

Aseptic Tank

Inspecting

Filtering

Storage Tank

Tea

Tea Residue

MultipackingShrinkable Film



The Producing Procedure of Soybean Milk

The Producing Procedure of Drinking Yogurt

soybean QC preheat mill cook centrifuge cool mix

QC clarify sterilize fill QC palletize rechecklong life

soymilk

additives QC blend nomogenize cool

Sugar and otheringredients

Raw milk reception

Water

CoolingRehydrationSkim

milk powderFiltration

Cooling Storage Fat standardization

Storage Homogenization Pasteurizaton Cooling

Inoculation

Yogurt culture

FermentationCoolingStorageHomogenization

Rehydration

Storage

Pasteurization Cooling Filtraion Mixing

Homogenization Storage

FillingDate markingLabelingArrayingBottles Capping Cartoning Cold storage

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water

yeast

final

fermentationbaking cooling cutting packing finished item

flour

weighting mixing mixing

raw material

basic

germentation

proofer

divided

divider

roundintermediate

fermentation

intermediate

proofer

rounding

rounder

The Producing Procedure of Bread

The Purpose of Main Products

In response to the varied consumer trends and different market needs, Uni-President implements inclusive

manufacturing process and innovative technologies to develop miscellaneous products for uses in food processing,

fishery, pasturage and regular consumer products.



Supply Status of Main Materials

Product Raw Material Source Supply Status

Feed Corn, Soybean,

Fish Meal

USA, South America Stable

Wheat Flour Wheat USA, Australia Stable

Edible Oil Soybean USA, South America Stable

Instant Noodle Wheat Flour

Edible Oil

Self-Produced

USA, South-East Asia

Stable

Beverage & Juice Sugar

Fructose

Conc. Juice

Tea

Domestic, Thailand

Domestic

Brazil, Mainland China

Domestic, Vietnam

Stable

Dairy Products Raw Milk

Milk Powder

Domestic

New Zealand, Australia

Stable

Meat Products Pork, Beef Domestic, USA, Australia Stable

Major Suppliers and Clients

Major Suppliers

Net purchases of major Suppliers are less than 10% of total purchases.

Major Clients

Name

2003

Name

2002

Amount

Ratio of

Net Sales Amount

Ratio of

Net Sales

Tung Ang Enterprises Corp. 5,450,599 14% Tung Ang Enterprises Corp. 4,878,071 14%

Uni-President Cold Chain

Corp.

4,473,824 12% Uni-President Cold Chain Corp. 4,233,571 13%

In thousand NTD

Variance Analysis for Deviation over 10%: No significant change.

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Production over the Last Two Years

Product 2003 2002

Name Unit Capacity Quantity Amount Capacity Quantity Amount

Feeds * 507 457 3,847 507 410 3,111

Flours * 88 85 854 88 86 784

Wheat Bran * 33 32 114 32 32 86

Barley Cereal * 43 23 133 43 20 112

Instant Noodle ** 540 437 2,535 540 508 2,699

Rice Noodle ** 25 21 129 25 15 129

Noodle ** 8 7 82 8 6 77

Beverages *** 483 362 4,129 388 291 3,555

PP Juice *** 69 68 1,332 69 65 1,284

Dairy Products *** 99 97 4,208 99 92 4,145

Soy Bean Milk *** 17 17 411 17 16 387

Yogurts Drink *** 1 1 27 5 5 80

Puddings *** 14 13 614 14 13 607

Frozen Foods * 6 6 435 6 5 442

Healthy Foods * 2 2 530 2 2 532

Breads * 26 23 1,101 24 23 1,048

Cakes * 7 6 441 7 5 410

Meat Products * 6 6 816 6 6 831

Ice Cream Products * 4 4 339 4 3 282

In million NTD

* 1,000 tons; ** 1,000,000 packs; *** 1,000,000 liters



Net Sales over the Last Two Years

Product

2003 2002

Local Export Local Export

Name Unit Quantity Amount Quantity Amount Quantity Amount Quantity Amount

Feeds * 469 4,305 11 405 399 3,594 11 386

Flours * 58 679 - - 61 694 - -

Wheat Bran * 31 121 - - 31 107 - -

Barley Cereal * 23 166 - - 20 127 - -

Soybean Powder * 162 1,627 - - 236 1,471 - -

Edible Oil * 45 1,185 - - 44 1,010 - 3

Grain & Feeds * 689 4,065 - - 565 2,425 - -

Instant Noodle ** 415 3,490 15 150 492 3,816 17 131

Rice Noodle ** 17 124 3 24 13 128 3 32

Noodle ** 7 95 - 3 6 90 - 3

Fresh Foods ** 11 225 - - - - - -

Beverages *** 489 5,965 11 133 454 5,529 8 92

PP Juice *** 68 2,100 - - 65 2,026 - -

Dairy Products *** 97 5,628 - 16 92 5,344 - 17

Soy Bean Milk *** 17 550 - - 16 500 - -

Yogurts Drink *** 4 109 - - 5 149 - -

Puddings *** 13 636 - 28 13 604 - 26

Pickles **** - 51 - 3 - 31 - 3

Soy Sauce *** 40 827 - 6 41 856 - 5

Frozen Foods * 8 619 - 3 8 619 - 2

Healthy Foods * 2 477 - 54 2 478 - 54

Breads * 23 1,329 - - 23 1,382 - -

Cakes * 6 572 - - 5 566 - -

Meat Products * 7 810 - 2 7 802 - 3

Ice Cream Products * 11 666 - - 5 300 - -

Others - - 704 - - - 1,494 - -

Total 37,125 827 34,142 757

In million NTD

* 1,000 tons; ** 1,000,000 packs; *** 1,000,000 liters; ****1,000,000 dozens.

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HUMAN RESOURCES

Year 2003 2002 As of Apr. 30, 2004

Number of Employees 5,156 5,224 5,141

Average of Age 37.4 36.9 37.6

Average Years of Service 12.6 12.0 12.7

Percentage by Education

1Ph.D. 0.08% 0.13% 0.08%

1MS / MA 6.17% 5.38% 6.42%

1College 33.11% 32.30% 33.57%

1High School 45.58% 45.88% 45.21%

1Others 15.06% 16.31% 14.72%

Employee Training

Ever since our company was established, we have been convinced of human resources as our most precious

asset and have been putting forth our best efforts on employee training. The principles of lifelong learning, career

planning and multi-target education are incorporated into our human resource development in the hope to

enhance our human forces, incubate potential management staffs and cultivate fine corporate culture.

Employee training is a long-term and specialized work. We have detailed three guidelines for training programs -

education-training-development balanced, ability-oriented, supervisor participation and set up a long-range,

systematic and diversified training programs for our employees according to their education background,

potentiality, and professional skills, as well as the managerial position and the organizational function they are

charged with. Besides, we enlarge employees’ potentiality by assigning them to overseas or affiliated companies to

further implant personal career development into company’s long-standing future.

In order to implement employee training well, we set up a specialized unit, the employee training section, on 1

June 1983 for the execution of training programs. On 13 November 1996, the employee training section was

officially established (licensed by government official approval # 115). It is responsible for drawing out the policies,

building up the system, evaluating the performance and caring out managerial and newcomer training programs.

As for sub-level and other specified training programs, those are taken charge by each one of businesses and

functional units. The company-wide training procedure had been standardized and certified by ISO9001 2000

version.

The overall performance of employee training in 2003 is stated as below:

Since 1996, the employee training section has been awarded excellence by several government departments

many times. We took it as a great recognition of our best efforts. In the future, we will continue to adhere to our

training principles of life-long learning, career planning and multi-target education and strive hard for constructing a

better learning organization and environment for our company and employees.

In-house Training In-house Training Outside Training Training Expense

(# of classes) (# of hours) (# of hours) (thousand NTD)

988 88,077 10,466 24,216

Employees



LABOR RELATION

Labor Relation

For more than thirty years of operation, Uni-President has believed in the mutual welfare for both the

corporation and the employees. That is why the Company has maintained a harmonious relationship with its labor,

and never been suffered from the employer and labor conflicts nor is expected to be receiving any loss of this kind.

The Company would like to practice the following targets:

1. Rationalize the personnel system

To unify the organizational structure, to reasonable distribute the human resource, to offer good pays to

attract and retain talents, to establish appropriate promotion procedure and to cultivate international talents.

2. Establish employee’s career development plan

To help employees draw up personal career development plan, and to realize those plans through working

experiences, work requirements, educational training and performance evaluation in order to ensure the

consistency of employees’ expectation and organizational needs.

3. Provide best employees’ welfare

To provide employees all soft-and-hardware facilities in the areas of food, clothes, accommodations,

transportation, education and entertainment. For example, supplies of dormitories, inexpensive and delicious

meals, health check-ups, and employee fringe, so that the employees can enjoy best welfare and fully devote to

their works.

4. More and better communication with the labor union

To open multi-communication channels, such as organize regular meetings between the employees and

employer, invite representatives from labor union to attend the business coordination meetings that allow

employees to understand corporate operation and express their opinion. In this way, we could unite our

thoughts and improve employees’ commitment.

5. Establish Employee Assistance Programs(EAPs)

At the assistance of the Council of Labor Affairs, the employee service center was established in 1999 to

provide employees the consulting services in life, works, recreation and health problems. The aim of EAPs is to

look into the most concerned issues of employees and provide an environment with no worries so those

employees could strive to achieve better performance.

The Retirement Program

1. Abided by the Labor Standards Law, Uni-president has made rules for retirement and set up a supervisory

committee of retirement fund to oversee the allocation and payment of retirement fund.

2. Employees who worked the company for more than 15 years and reached age 55, and employees worked for

more than 25 years should apply for retirement and receive retirement payment according to the related rules.

The Protective Measures of the Workplace and Employees’ Personal Safety

The policy of Uni-President Enterprises Corp. is established to construct a comfortable and unworried working

environment, and to ensure the employees’ safety. Based on the operating principle of “Zero Occupational

Accident”, we will have employees’ commitment in developing a good culture of occupational safety.

Our company pays much attention to the employees’ safety and health, including the traffic safety during the rush

hour, pre-employment physical examinations, periodic health examinations, propaganda of safety, maintenance of

the machine and equipment, and the operational manual of employees in workplace, etc. All mentioned above

have had perfect standards and been practiced well:

1. In the aspect of the fire prevention and emergency exit, we check the fire fighting and fire escape monthly, as

well as carry out the emergency-response practices of various accidents yearly. In addition, we conduct the

personnel first-aid training to prevent the occurrence of the accident.

2. The supervisors of labor safety and health conduct and audit safety and hygiene checkups irregularly. They also

supervise and help each factory in promoting the health and safety issues. In this year, we introduce the concept

of the risk management, and expect to manage the employees’ safety in more efficient way.

3. In the aspect of the contractors, all of the contractor’s workers who work in the factory area of Uni-President

Enterprises Corp. are regarded as Uni-President’s employees and requested to obey the same safety and health

rules in order to prevent possible loopholes in safety.

In the early 2003, our company established the “Emergency Response Group for the Prevention and Cure of

SARS” to avoid the spread of SARS. Moreover, starting in early 2004, we renamed the “Emergency Response Group

for the Prevention and Cure of SARS” to the “Emergency Response Group for the Prevention and Cure of Major

Infectious Diseases” to react to the diseases like Bird Flu. Since 2003, we have established environmental protection

and occupational safety website to expedite the delivery of the occupational safety and health information by the

powerful wide-spreading network. In addition, the yearly activity of the “Environmental Protection and Occupational

Safety Week” organizes some interesting activities and practical training to enhance all employees’ recognition of self-

protection, and create a fine culture of the occupational safety.

Although Uni-President Enterprises Corp. has already achieved the preliminary results in the protection of the

employees’ personal safety, it doesn’t feel complacent with the current achievement. Rather it would continue to

search for improvement and to pursue the progress through the effective management system and advanced

occupational safety techniques and tools.

The Regulations for Employee’s Behavior and Morality

1. Value of integrity and morale

Uni-President has always been appreciative of the support and faith from the customers and tries to give back

its profits to customers, employees, and stockholders whenever possible. In addition, Uni-President is devoted to

become responsible to the society and to build up a feeling of duty with high business morality. The philosophy

of recruitment values more on the employees’ integrity and morality than his capabilities.

2. The employees regulations:

(1) Employees shall be fully devoted to his job and follow the company’s regulations and reasonable orders of

their supervisors. Supervisors should treat employees with patience and kindness.

(2) Employees shall not engaged in business unrelated to their work during working hours.

(3) Employees should work hard, cherish public property, cut-down waste levels, improve quality, increase

production and keep business details confidential.

(4) Employees should follow the corporate and organization morality and ethics.

(5) Employees should not meet with friends, family or be absent during the work hours without approval.

(6) Externally, employees are prohibited from using the company’s name under any circumstances except when

handling business representing the company.

(7) Without permission, employees should not hold multiple jobs or be employed by another company of the

same nature resulting in the disturbance of execution of the labor contract. Also, employee cannot run the

similar business for himself/herself or others.

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EXPENDITURE OF ENVIRONMENTAL PROTECTION

Our company, since setting up the factory, has been focusing on the planning and the execution of the

environmental protection. In addition to the establishment of environmental management system, implementation

of the environmental checkup and the vast investment in environmental protection equipment, we have established

a group to take on the operation, maintenance and improvement of the preventive equipment in wastewater, offal

and waste gas. The relevant operational cost of environmental protection was NTD 107 million in 2003.

I. Amount of loss and punishment due to environmental pollution this year:

Note 1: In February 2003, the internal assay of the discharge level in poultry plant agreed with our standard,

but the water sample audited by Environmental Protection Agency did not meet the standard.

Note 2: In August 2002, the assigned fertilizing company for composting our mud in Yangmei & Chungli

factories did not well dispose our mud and kept hoarding in the field that violated the regulation of

environmental protection.

II. Response & Action Plan:

1. Parts for improvement

(1) Improvement Plan

A. Expand the wastewater treatment area or improve the effectiveness of wastewater treatment.

B. Intensify the professional training of employee and ensure the steady operation of the equipment.

C. Inspection of wastewater: To guarantee the waste water discharge accord with environmental protection

standard, we not only conduct self-check, but we also entrust company that recognized by Environmental

Protection Bureau to carry out the inspection regularly.

D. Carrying out company-wide environmental inspection thoroughly. We intend to prevent the possible

pollution and maximize the resource utilization in order to decrease the cost and reach sustainable

development.

E. To continue on minimizing waste, promoting the reuse of the offal and the recycle of wastewater so to

reduce the yield of wastewater and the offal and the impact of environment. Moreover, we will select

companies that help disposal our waste carefully and monitor our process of internal waste disposal

frequently.

Pollution Status (type, level) Wastewater (Note 1) Offal (Note 2)

Compensating target or punishing

division

Environmental Protection Bureau,

Tainan County Government

Environmental Protection Bureau,

Taoyuan County Government

Compensation or Punishment NTD 60 thousand NTD 12 thousand

Other losses None None

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(2) Possible environmental protection capital expenditure in the next two years

(3) Effect of Improvement

A. Effect on Net Profit: No great influence.

B. Effect on Competitive Position: No great influence.

2.Possible effect of not adopting applicable strategies: Not suitable.

2004 2005

Planned renewal and improvement

of the preventive and cure pollution

equipment or expenditure

Expansion of the wastewater

treatment in Yeongkang, Yangmei,

Shingshi, Mado factories

Improvement of wastewater

treatment in Shingshi factory

Expected Improvement Accordance with the environmental

protection decree

Accord with the environmental

protection decree

Amount NTD 42 million NTD 15 million



SOCIAL RESPONSIBILITY

It is always our management principle to assume the social responsibility, and to show our concern to the society

with love and action. Being a conscientious citizen, we have been taking what is from the society and applying it to

arrive at the best of the society.

Beginning from 2001, Uni-President has been focusing on “A Kiss to the spirit of the future” to build a ten-year

humanities project, that contains four themes - “respect lives”, “care for others”, “be close to nature”, and “be

optimistic and progressive”. We are convinced that the mission in this new century is to deliver a more beautiful

world and our tasks are to raise the corporate image to the metaphysical level, let culture lead the economic trend,

and develop an environment that is filled with health, happiness and art.

Every year, we would carry out a series of planned, organized millenary love activities. We would combine

activities in areas of art, music, sports and green marketing with local authority/business, culture and touring to

enhance our added value through consumers’ involvement, to show our respect for our consumers and to inspire

consumers’ affection and attraction for all physical and mental needs.

Uni-President has been concerned about the living of these minorities and endeavored to aid people that are in

critical needs starting many years ago. We even established a “Uni-President Social Welfare and Charity Foundation”

in 1978. The source of this fund is based on the monthly interest earned from the donation of Uni-President (NTD

200 billion). By year 2003, the total numbers of households receiving assistance were 24,190, payment were

approx. NTD 180 million.

In October 2003, in order to practice four essences of the Millenary Love and to offer consumers healthy and

premium products and services, we joined with President Chain Store Corp. to establish Millenary Love Health

Foundation. The members of this foundation consist of all areas of professionals, including the business, academia

and government that came together to generalize the awareness of the nutritious health, the social education,

research and development and international communication of the preventive medicine. It is hoped that Uni-

President could transform into a health focused consumer goods server and play symphonies full of humanity,

organism, joy, and life that correspond to the Mind Love and generate a better tomorrow with consumers.

IMPORTANT CONTRACTS

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Agreement Counter party Period Major Contents Restriction

Sales Agent President Kikkoman Inc. 1999.05.01~2009.04.30 General Agents Agreement

obtained for the territory of

Taiwan

1. No transfer to third party allowed without

period consent from President Kikkoman Inc.

2. President Kikkoman Inc. has right to cancel

the General Agents Agreement in the event

that congregate revenue of NT$30 million is

not reached within a consecutive three-month

period.

Sales Agent Meiji Milk Corp. 2003.04.01~2004.03.31 General Agents Agreement

obtained for the territory of

Taiwan

No export to other countries is allowed without

prior consent from Meiji Milk Corp.

OEM TTET Union Corp. 2004.01.01~2004.12.31 Soybean Manufacture for

Uni-President, into 17.5%

degreased soybean oil and 80%

soybean powder at least.

None

OEM Kou Feng Industrial Co., Ltd. 2004.01.01~2004.12.31 Substitute for manufacturing

wheat powder 5 million tons per

month at least, and 30 million

tons per month at most.

1. Kou Feng is not allowed to sell fi nished goods

owing to the contract to others.

2. Kou Feng is not allowed to transfer the

production to third parties.

3. Uni-President may stop the contract any time

due to operating failure occurred on Kou

Feng.

Term Loan Syndicate of Banks:

I.C.B.C. and Chiao Tung Bank

as arrangers

2001.06.28~2006.06.28 Facility Amount NTD 4.35 Billion

(Including Term Loan Facility

NTD1.65Billion and Note

Issuance Facility NTD2.7Billion)

1. Current Ratio shall be above 80%.

2. Total Liabilities to Net Worth shall be below

100%.

3. If the covenants (1) and (2) above were not be

achieved, the Company shall improve it within

six months.

4. Any substantial investment plans such as

purchase or disposal of assets, substantial

change of business or organization and sale,

transfer, lease, and other arrangements of

main assets should be notifi ed to the agent

bank. The agent bank can hold a guarantee

banks’ meeting to discuss above events as

needed.

Term Loan China Development Industrial

Bank Inc

2002.12.28~2005.12.28 Facility amount NTD 250 Million None

Term Loan The Farmers Bank of China 2000.09.06~2005.09.06 Facility amount NTD 525 Million None

Term Loan Taiwan Cooperative Bank 2001.12.25~2004.12.25 Facility amount NTD 600 Million None

Term Loan Cathay United Bank 2001.12.17~2006.12.17 Facility amount NTD 500 Million None

Term Loan Jihsun Bank 2003.06.27~2005.06.27 Facility amount NTD 500 Million None

Term Loan Far Eastern International Bank 2003.10.29~2005.10.29 Facility amount NTD 600 Million None

Term Loan Hua Nan Commercial Bank 2004.02.27~2006.2.27 Facility amount NTD 300 Million None



IMPORTANT CONTRACTS

Agreement Counter party Period Major Contents Restriction

Term Loan Chinatrust Commercial Bank 2003.12.05~2005.12.31 Facility amount NTD 800 Million 1.Current Ratio should be above 75%

2. (Debt+Contingent Liability) to Net Worth

should be below150%.

3. Interest Coverage Ratio shall be above 150%

4. Tangible Net Worth shall be above NTD30

billion.

Term Loan Taiwan Industrial Bank 2003.12.16~2006.06.16 Revolving Facility Amount

NTD350 Million

None

Term Loan Sunny Bank 2003.11.30~2005.11.30 Facility amount NTD 300 Million None

Term Loan First Commercial Bank 2003.10.11~2005.10.11 Facility amount NTD 300 Million None

Term Loan Tachong Bank 2003.04.03~2005.10.31 Facility amount NTD 400 Million None

Term Loan Tainan Business Bank 2002.06.18~2005.06.18 Facility amount NTD 400 Million None


Taiwan Industrial Bank,

United World Chinese

Commercial Bank, and Land

Bank of Taiwan as arrangers

2000.10.05~2005.10.05 Facility amount NTD 4.6Billion 1. Current Ratio should be above 70%.

2. Total Liabilities to Net Worth shall be below

100%.

3. (Debt + Contingent Liability) to Net Worth

should be below150%.

4. Any substantial investment plan such as

purchase or disposal of assets, substantial

change of business or organization and sale,

transfer, lease, and other arrangements of

major assets shall have the consent in writing

from bank syndication.


Bank of Taiwan, BNP Paribas,

The Development Bank of

Singapore Ltd., and Standard

Chartered Bank as arrangers

2002.09.18-2007.09.18 Facility amount NTD 6 Billion

(Including Term Loan Facility 4.6

Billion and Note Issuance Facility

1.4 Billion)

1. Tangible Net Worth shall be above NTD

30 Billion. (Based on consolidated Annual

Financial Statement)

2. (Debt + Contingent Liability) to Net Worth

shall be below 150%.

3. Interest Coverage Ratio shall be above 2 times

4. Current Ratio should be above 80%.

LITIGATION AND NON-LITIGATION INCIDENTS: None

ACQUISITION OR DISPOSAL OF MAJOR ASSETS

Acquisition of Major Assets

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Name of Asset Acquisition Date

Purchase

Price Vendor

Relationship

with the

Company Condition

Uni-President Enterprises Corp.

President Home Run Bond Fund 01/2003 500,000 President Investment Trust Corp. - Good

President James Bond Fund 01/2003 750,000 President Investment Trust Corp. - Good

Shinkong NT$ Hing Yield Fund 12/2003 500,000 Shinkong Investment Trust Co., Ltd. - Good

Ta Chong Bond Fund 01/2003 300,000 Ta Chong Investment Trust Corp. - Good

James Bond Fund 01/2003 500,000 Ta Chong Investment Trust Corp. - Good

Shinkong Chi-Shun Fund 01/2004~03/2004 844,000 Shinkong Investment Trust Co., Ltd - Good

Kai Yu Investment Co., Ltd. 12/2003 1,122,054 Capital Increase - Good

Cayman President Holdings Ltd. 01/2003~07/2003 1,102,263 Capital Increase - Good

Common shares of Chinatrust Financial

Holding Company Ltd.

10/2003 383,017 Transferred from common shares

of Grand Commercial Bank

- Good

Preferred shares of Chinatrust Financial




- Good

Tonpal Optelectronics Corp. (common stock) 01/2003 439,423 Capital Increase - Good

Kuang Chuan Dairy Co., Ltd. 03/2004 961,560 We-Chuan Investment Co., Ltd.

and 4 natural persons.

- Good

Tung Ho Development Co., Ltd. 03/2003~01/2004 804,495 Any Investors and Capital Increase - Good

Cayman President Holdings Ltd.

Uni-President Southeast Asia Holdings Ltd. 02/2003~10/2003 USD 40,000

thousands

Initial Investment and Capital

Increase

- Good

Kai Yu Investment Co., Ltd.

Tonpal Optoelectronics Corp. (common

stock)

12/2003 1,122,054 Uni-President Enterprises Corp. Parent

Company

Good

Common shares of Chinatrust Financial




- Good

Preferred shares of Chinatrust Financial




- Good

Uni-President Southeast Asia Holdings Ltd.

Uni-president Vietnam Co., Ltd. 2/2003 USD 25,898

thousands

Cayman President Holdings Ltd - Good

President International Development Corp.

President Home Run Bond Fund 01/2003~04/2004 1,405,200 President Investment Trust Corp. - Good

President James Bond Fund 07/2003~4/2004 307,800 President Investment Trust Corp. - Good

Government Bonds 01/2003~02/2004 1,517,023 Any Investors - Good

Tong Yu Investment Co., Ltd. 07/2003~12/2003 904,800 Use common stock as capital

injection and Capital injection

- Good

Tong Yu Investment Co., Ltd.

Tonpal Optoelectronics Corp. (common

stock)

12/2003 774,200 President International

Development Corp

Parent

Company

Good

Note: Amount of acquisition assets up to NTD 300 millions or 20% of paid-in capital.

In thousand NTD



Name of

Asset

Acquisition

Date Disposal Date

Book

Value

Selling

Price

Profi t

(Loss) Buyer

Relationship

with the

Company

Uni-president Enterprises Corp.

President Home Run Bond Fund 01/2003 01/2003 500,053 53 President Investment Trust Corp. -

President James Bond Fund 01/2003 01/2003 750,361 361 President Investment Trust Corp. -

Ta Chong Bond Fund 01/2003 01/2003 300,034 34 Ta Chong Investment Trust Corp. -

James Bond Fund 01/2003 01/2003 500,285 285 Ta Chong Investment Trust Corp. -

Shinkong NT$ Hing Yield Fund 12/2003 12/2003 500,126 126 Shin Kong Investment Trust Co.,

Ltd.

-

Shinkong Chi-Shun Fund 01/2004~03/2004 02/2004~03/2004 844,292 292 Shin Kong Investment Trust Co.,

Ltd.

-

Common shares of Grand

Commercial Bank

10/2003 10/2003 889,630 176,328 Chinatrust Financial Holding

Company Ltd.

-

Preferred shares of Chinatrust

Financial Holding Company Ltd.

10/2003 10/2003 506,613 0 Chinatrust Financial Holding

Company Ltd.

Tonpal Optoelectronics Corp.

(common stock)

12/1999~09/2000 12/2003 1,122,054 0 Kai Yu Investment Co., Ltd. Subsidiary


ABN Equity Certifi cates 12/2001~01/2002 06/2003 USD 16,676

thousands

(USD2,058)

thousands

ABN AMRO Bank -

Uni-President Vietnam Co.,Ltd 02/1999 02/2003 USD 25,898

thousands

USD753

thousands

Uni-President Southeast Asia

Holdings Ltd.

Sub-subsidiary


Common Shares of Grand

Commerical Bank

10/2003 10/2003 300,590 (30,127) Chinatrust Financial Holding

Company Ltd.

-

Preferred shares of Chinatrust

Financial Holding Company Ltd.

10/2003 10/2003 123,008 0 Chinatrust Financial Holding

Company Ltd.

-

Kai Yu (BVI) Investment Co., Ltd.

Kingston Yield

Enhancement Fund

12/2001~01/2002 09/2003~11/2003 USD41,906

thousands

(USD13,158)

thousands

KGI Asset Management (HK)

Limited

-

President Coffee(cayman)

Holdings Ltd

05/2000 06/2003 USD11,835

thousands

USD10,762

thousands

Starbucks Coffee International

Inc.

-


President Home Run Bond Fund 12/2002~04/2004 01/2003~04/2004 1,548,763 772 President Investment Trust Corp. -

President James Bond Fund 07/2003~04/2004 07/2003~04/2004 307,925 125 President Investment Trust Corp. -

Government Bonds 01/2003~02/2004 01/2003~2/2004 1,540,910 23,887 Any Investors -


(common stock)

12/1999 09/2000~12/2003 774,200 0 Tong Yu Investment Corp. Sub-subsidiary


(common stock)

12/1999 09/2000~12/2003 4,950 1,289 Yuanta Core Pacifi c Securities

Co., Ltd.

-

G-Advanced Semiconductor Technology Co., Ltd.

Industry Area Real Estate-Ba Jang

Li Duan

06/2000 04/2004 686,244 592,192 (94,052) Dah-Yu Development Corp. -

Note: Amount of disposal assets up to NTD 300 millions or 20% of paid-in capital.

In thousand NTD

Disposal of Major Assets

For each uncompleted public issue or private placement of securities, and

for such issues and placements that were completed in the most recent

three years but have not yet fully yielded the planned benefits: None.

FINANCING PLANS AND IMPLEMENTATION

73 Five-Year Financial Summary

75 Five-Year Financial Analysis

77 Supervisors’ Report

78 Independent Auditor’s Report and Financial Statements

78 Independent Auditor’s Consolidated Financial Statements

78 Explanation of Financial Difficulties

78 Financial Forecast Results

FINANCIAL INFORMATION

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FIVE-YEAR FINANCIAL SUMMARY

Balance Sheet Summary

Year

Item

Five-Year Financial Summary (Note 1) As of Mar. 31,

2004 (Note 1)2003 2002 2001 2000 1999

Current Assets 8,805,269 7,428,558 9,516,253 6,937,566 6,715,691 8,900,557

Long-term investments 48,250,140 45,277,054 45,740,485 46,632,972 40,128,952 50,202,094

Fixed Assets (Notes 2) 14,456,269 13,999,668 14,528,137 14,955,362 13,570,517 14,458,147

Intangible Assets 334,967 377,006 413,844 - - 334,967

Other Assets (Notes 2) 1,630,737 1,601,955 1,964,309 2,275,756 1,758,004 1,557,260

Total Assets 73,477,382 68,684,241 72,163,028 70,801,656 62,173,164 75,453,025

Current Liabilities

Unappropriated 4,169,908 6,171,486 6,151,517 6,250,770 6,546,855 7,227,871

Appropriated 4,169,908 7,489,387 8,375,825 8,322,343 9,006,666 7,227,871

Long-term Liabilities 24,745,926 19,058,692 21,840,266 22,052,029 13,462,893 23,056,073

Other Liabilities 1,196,115 885,463 596,311 154,030 907,099 1,205,260

Total Liabilities

Unappropriated 31,401,818 27,407,444 29,879,897 29,748,686 22,208,704 32,779,073

Appropriated 31,401,818 28,725,345 32,104,205 31,820,259 24,668,515 32,779,073

Common Stock 33,950,978 34,422,458 33,476,572 31,581,671 29,242,288 33,753,848

Capital Reserve 1,028,099 996,012 903,054 869,341 963,344 963,738

Retained Earnings

Unappropriated 8,139,079 6,512,837 8,070,840 8,956,580 10,253,389 8,886,269

Appropriated 8,139,079 5,194,936 4,843,936 5,053,269 5,571,164 8,886,269

Unrealized loss on long-term

investment

(90,618) (151,953) (122,359) (92,663) - (90,618)

Cumulative transaction

adjustment

(253,952) (107,858) 59,364 (252,294) (494,561) (402,755)

Unrecognized pension cost (436,530) (216,695) (8,616) - - (436,530)

Total Stockholders’ Equity

Unappropriated 42,075,564 41,276,797 42,283,131 41,052,970 39,964,460 42,673,952

Appropriated 42,075,564 39,958,896 40,058,823 38,981,397 37,504,649 42,673,952

In thousand NTD



The Last Five-Year Independent Auditors and Auditors’ Opinions

Item \ Year 2003 2002 2001 2000 1999

Independent

Auditors

Pricewaterhouse

Coopers

Pricewaterhouse

Coopers

Pricewaterhouse

Coopers

Pricewaterhouse

Coopers

Pricewaterhouse

Coopers

Auditors’

Opinion

Modifi ed

Unqualifi ed

Modifi ed

Unqualifi ed

Modifi ed

Unqualifi ed

Modifi ed

Unqualifi ed

Modifi ed

Unqualifi ed

Income Statement Summary

Year

Item

Five-Year Financial Summary (Note 1) As of Mar. 31,

2004 (Note 1)2003 2002 2001 2000 1999

Operating Revenues 37,951,951 34,899,175 33,348,556 32,159,019 30,022,143 10,002,962

Gross Profi t 7,879,126 8,421,446 8,780,064 9,458,332 8,723,199 1,897,473

Operating Income 109,123 624,994 162,274 355,890 463,978 87,038

Non-operating Income 4,075,898 4,360,025 6,609,006 4,860,839 3,900,357 985,580

Non-operating Expenses 1,205,637 3,285,259 3,730,394 1,967,003 1,000,032 287,059

Income from operations of

continued segments-before tax

2,979,384 1,699,760 3,040,886 3,249,726 3,364,303 785,559


continued segments-after tax

2,937,696 1,516,570 3,013,760 3,385,195 3,526,450 747,191


discontinued segments

- - - - - -

Extraordinary gain (loss) - - - - - -

Cumulative effect of change in

accounting principles

- (7,810) - - - -

Net Income 2,937,696 1,508,760 3,013,760 3,385,195 3,526,450 747,191

EPS (NTD)

Unretroacted

(Note 3)0.86 0.45 0.90 1.07 1.21 0.22

Retroacted

(Note 4)0.86 0.45 0.88 0.98 1.03 0.22

In thousand NTD

Note 1: All financial information above was audited by CPA.

Note 2: Interest expense capitalized( in thousand NTD): 1999: $ 148,858; 2000: $184,522, 2001: $172,484; 2002:

$132,840; 2003: $86,020.

Note 3: Base on weighted average number of outstanding shares during each year.

Note 4: According to GAAP, EPS based on weighted average number of outstanding shares after giving the

retroactive adjustment.

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FIVE-YEAR FINANCIAL ANALYSIS

Year

Item

Five-Year Financial Analysis (Note 1) As of

Mar. 31, 20042003 2002 2001 2000 1999

Financial Structure

1Liabilities/Assets Ratio (%) 42.74 39.90 41.41 42.02 35.72 43.44

1Long-term Funds/Fixed Assets Ratio (%) 462.23 430.98 441.37 421.96 393.70 454.62

Liquidity

1Current Ratio (%) 211.16 120.37 154.70 110.99 102.58 123.14

1Quick Ratio (%) 127.22 73.63 105.61 66.31 55.40 72.46

1Times Interest Earned (times) 6.16 2.46 3.07 3.60 5.46 7.93

Operating Performance

1Average Collection Turnover (times) 8.79 8.94 9.51 9.50 9.37 2.14

1Average Collection Period (days) 41.52 40.83 38.38 38.42 38.95 42.47

1Inventory Turnover (times) 10.84 10.72 10.22 8.92 8.14 2.66

1Average payment turnover (times) 18.42 18.54 18.25 13.32 10.11 4.87

1Average Inventory Period (days) 33.67 34.05 35.71 40.92 44.84 34.18

1Fixed Assets Turnover (times) 2.67 2.45 2.26 2.25 2.31 0.69

1Total Assets Turnover (times) 0.53 0.50 0.47 0.48 0.51 0.13

Profi tability

1Return on Total Assets (%) 4.63 3.13 5.49 6.21 6.76 1.03

1Return on Stockholders’ Equity (%) 7.05 3.61 7.23 8.36 8.89 1.76

1Return on Capital (%)

Operating Income 0.32 1.82 0.48 1.13 1.59 0.26

Income before Tax 8.78 4.91 9.08 10.29 11.50 2.33

1Net Income to Net Sales (%) 7.74 4.32 9.04 10.53 11.75 7.47

1EPS-retroacted (NTD) 0.86 0.45 0.88 0.98 1.03 0.22

Cash Flow

1Cash Flow Ratio (%) 66.87 37.90 32.41 32.05 20.49 -

1Cash Flow Adequacy Ratio (%) 50.22 42.19 40.62 43.18 50.62 -

1Cash Reinvestment Ratio (%) 1.99 0.46 0.13 (Note 2) (Note 2) -

Leverage

1Operating Leverage (%) 153.47 28.88 2.89 20.78 17.89 89.03

1Financial Leverage (%) (0.30) (2.04) (0.15) (0.56) (4.26) (13.11)

Note 1: All financial information above was audited by CPA.

Note 2: "Net Cash Flow From Business Operation - Cash Dividends" is not applicable since it is negative.

Note 3: The calculation formula of financial analysis was listed as next page:



The calculation formula of financial analysis:

1. Financial Structure Analysis

(1). Debts ratio = Total Liabilities / Total Assets

(2). Long-term fund to fixed assets = (Shareholders’ Equity + Long-term Liabilities) / Net Properties

2. Liquidity Analysis

(1). Current ratio = Current Assets / Current Liabilities

(2). Quick ratio = (Current Assets - Inventories - Prepaid Expenses) / Current Liabilities

(3). Times interest earned = Earnings before Interest and Taxes / Interest Expenses

3. Operating Performance Analysis

(1). Average collection turnover = Net Sales / Average Trade Receivables

(2). Average collection days = 365 / Receivables Turnover rate

(3). Average inventory turnover = Cost of Sales / Average inventory

(4). Average inventory turnover days = 365 / Inventory Turnover rate

(5). Average payment turnover = Cost of Sales / Average Trade Payables

(6). Fixed assets turnover = Net Sales / Net Properties

(7). Total assets turnover = Net Sales / Total Assets

4. Profitability Analysis

(1). Return on total assets = {Net Income + Interest Expenses * (1 - Effective tax rate)} / Average Total

Assets

(2). Return ratio on stockholders’ equity = Net Income / Average Shareholders’ Equity

(3). Operating Income to Capital = Operating income / Capital

(4). Income before tax to capital = Income before tax / Capital

(5). Net Income to net sales = Net Income / Net Sales

(6). Earnings per share = (Net Income - Preferred Stock Dividend) / Weighted Average Number of Share

Outstanding

5. Cash flow

(1). Cash flow ratio = Net Cash Provided by Operating Activities / Current Liabilities

(2). Cash flow reinvestment ratio = (Cash Provided by Operating Activities - Cash Dividends) / (Gross Plant

+ Investment + Other Assets + Working Capital)

6. Leverage

(1). Operating leverage = (Net Sales - Variable Cost) / Income from Operations

(2). Financial leverage = Income from Operations / (Income from Operations - Interest Expenses)

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SUPERVISORS' REPORT

To: The General Meeting of Shareholders as of year 2004

The undersigned has duly audited the Operating Report, Financial Statements and Schedule of

Earnings Distribution prepared by the Board of Directors for the year of 2003, and found the same to

be true and correct.

Therefore, in accordance with Article 219 of the Company Law of the Republic of China, the

undersigned takes pleasure in submitting this report for your perusal and acceptance.

Uni-President Enterprises Corporation

Supervisors: Chen, Kao Keng

Kuo, Peng-Chi

(Representative of Chau-Chih Inv. Co.)

April 13, 2004


INDEPENDENT AUDITOR’S REPORT AND FINANCIAL

STATEMENTS: Please refer to page 136~252.

INDEPENDENT AUDITOR’S CONSOLIDATED FINANCIAL

STATEMENTS: Please refer to page 253~264.

HAVE THE COMPANY OR ITS AFFILIATES EXPERIENCED

FINANCIAL DIFFICULTIES IN THE MOST RECENT FISCAL YEAR:

None

FINANCIAL FORECAST AND OPERATION RESULTS: Not Applicable.


81 Analysis of Financial Status

82 Analysis of Operation Results

83 Analysis of Cash Flow

84 Major Capital Expenditure

85 Analysis of Investments

86 Analysis and Evaluation of Risk Management

88 Other Important Matters

REVIEW OF FINANCIAL CONDITIONS,OPERATING RESULTS, AND RISK MANAGEMENT

ANALYSIS OF FINANCIAL STATUS

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In thousand NTD

Year

Item 2003 2002

Variance

Amount %

Current Assets 8,805,269 7,428,558 1,376,711 18.53

Fixed Assets 14,456,269 13,999,668 456,601 3.26

Other Assets 1,630,737 1,601,955 28,782 1.80

Total Assets 73,477,382 68,684,241 4,793,141 6.98

Current Liabilities 4,169,908 6,171,486 (2,001,578) (32.43)

Long-term Liabilities 24,745,926 19,058,692 5,687,234 29.84

Total Liabilities 31,401,818 27,407,444 3,994,374 14.57

Capital 33,950,978 34,422,458 (471,480) (1.37)

Capital Reserve 1,028,099 996,012 32,087 3.22

Retained Earnings 8,139,079 6,512,837 1,626,242 24.97

Total Stockholders’ Equity 42,075,564 41,276,797 798,767 1.94

Variance Analysis for Deviation over 20%:

1. (1)Decrease in Current liabilities and Increase in Long-term liabilities:

Their variances were largely due to issuance of corporate bond to save funding cost and improve financial

structure, and issuance of EEB to meet the need of purchasing material overseas, which lead to the decrease

of short-term loans and the increase of cooperate bonds payable.

(2)Increase in Retained Earnings:

This increase was largely attributable to an increase in investment income accounted for under equity

method.

2. Plans for the future:

In order to lower down funding cost, we keep monitoring the exchange rate and market interest rates, use

proper financial instruments to get long-term capital with lower cost and keep an adequate financial structure.



ANALYSIS OF OPERATION RESULTSIn thousand NTD

Year

Item 2003 2002

Variance

Amount %

Gross Sales $40,488,918 $37,126,687 3,362,231 9.06

Less: Sales Returns (183,134) (175,554) 7,580 4.32

Sales Allowances (2,353,833) (2,051,958) 301,875 14.71

Net Sales 37,951,951 34,899,175

Cost of Sales (30,072,825) (26,477,729) 3,595,096 13.58

Gross Profi t 7,879,126 8,421,446 (542,320) (6.44)

Operating Expenses (7,770,003) (7,796,452) (26,449) (0.34)

Operating Income 109,123 624,994

Non-operating Income 4,075,898 4,360,025 (284,127) (6.52)

Non-operating Expenses (1,205,637) (3,285,259) (2,079,622) (63.30)

Income Before Tax 2,979,384 1,699,760

Tax Benefi t (Expense) (41,688) (183,190) (141,502) (77.24)

Cumulative Effect of Change in

Accounting Principle

- (7,810) (7,810) (100.00)

Income After Tax $2,937,696 $1,508,760

Note 1: Variance Analysis for Deviation over 20%:

(1) Decrease in non-operating expenses: With the consideration of reducing funding cost and improving

financial structure, we increased the amounts of issuing corporate bonds and repaid some long-term

loans with higher interest rates. In addition, a decrease in loss from Investment accounted for under the

equity method.

(2) Decrease in income tax expense: The amount of unused investment tax credits increased this year is

more than that of previous year.

Note 2: Reasons for changing the Company’s major business; explain the variance resulting from the adjustment of

selling prices or costs, the increase or decrease of quantity and the combination of production and selling,

or the replacement of old products. If the Company’s operation strategy, market situation, economic

environment or other internal or external factors has changed or expects to have any significant change,

explain the fact, influencing factors and the possible impact to the Company’s future finance and

responding proposal: Not applicable.

Note 3: Planned selling quantities and its base for next year. Explain the major factors that keep the Company’s

forecast sales quantity to rise or decline: Please refer to “Market Analyses of Major Product Categories”.

Gross Profit Analysis for Variance Over 20%

Not applicable.

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ANALYSIS OF CASH FLOWIn thousand NTD

Cash and Cash

Equivalents,

Beginning of Year

(1)

Net Cash Flow form

Operating Activities

(2)

Cash Outfl ow

(3)

Cash Surplus

(Defi cit)

(1)+(2)-(3)

Leverage of Cash Defi cit

Investment

Plans Financing Plans

$132,482 $2,788,255 $5,738,115 ($2,817,378) - Loans or Issuing

Corporate

Bonds.

1.Cash Flow Analysis for the Current Year:

(1) Operating Activities: Because net income increased, net cash infl ow from operating activities increased in

2003.

(2) Investing Activities: Because long-term investments and capital expenditure increased, net cash outfl ow from

investing activities increased in 2003.

(3) Financing Activities: Because the amount of issuing corporate bond increased, net cash infl ow from fi nancing

activities increased in 2003.

2.Remedy for Cash Defi cit and Liquidity Analysis:

2003 2002 Variance (%)

Cash Flow Ratio (%) 66.87 37.90 76.44

Cash Flow Adequacy Ratio (%) 50.22 42.19 19.03

Cash Reinvestment Ratio (%) 1.99 0.46 332.61

Variance Analysis for Deviation over 20%:

(1)The variance of cash fl ow adequacy ratio between two years is less than 20%.

(2) The increases of cash fl ow ratio and cash reinvestment ratio of 2003 were due to issuing corporate bonds

to save funding cost and improve fi nancial structures. Issuing zero coupon exchangeable bonds to meet the

need of purchasing material overseas leads to the decrease of current liabilities and the increase of operating

capital. In addition, net cash infl ow from operating activities increased caused by the increase of cash

dividends from equity subsidiaries.

3.Cash Flow Analysis for the Coming Year:

Estimated

Cash and Cash

Equivalents,

Beginning of Year

(1)

Estimated Net Cash

Flow form Operating

Activities

(2)

Estimated Cash

Outfl ow (Infl ow)

(3)

Cash Surplus

(Defi cit)

(1)+(2)-(3)

Leverage of Cash Surplus (Defi cit)

Investment

Plans Financing Plans

$835,579 $3,660,090 $7,031,780 ($2,536,111) - Loans or Issuing

Corporate

Bonds.

Project

Actual or

Planned

Source of

Capital

Actual or

Planned

Date of

Completion Total Capital

Actual or Expected Capital Expenditure

2002 2003 2004 2005 2006

Uni-President International Building,

1999

Retained

earnings

2004.08 $1,712,453 $287,375 $390,065 $681,118 - -

The 1st production line for Aseptic PET

bottling equipment, 1999

Retained

earnings

2002.07 369,960 6,911 - - - -

Ice Builder system, 2000 Retained

earnings

2002.09 137,780 9,870 - - - -

The 2nd production line for Aseptic PET

bottling equipment, 2000

Retained

earnings

2002.12 313,365 1,260 - - - -

Toast production line and Plant at

Mado bakery plant, 2000

Retained

earnings

2003.06 212,320 614 3,076 - - -

The 4th Bun production line, 2000 Retained

earnings

2004.06 95,382 61 4,505 89,934 - -

Big PE Bottling production line, 2001 Retained

earnings

2003.03 156,000 76,817 610 - - -

Cup Noodle production line, 2002 Retained

earnings

2003.05 136,000 125,745 10,255 - - -

Two production lines for TT3 (Tetra

Top), 2002

Retained

earnings

2003.04 205,063 95,418 109,645 - - -

Amplifi cation of ESL (Extended Shelf

Life) product line, 2002

Retained

earnings

2003.10 82,318 621 80,184 1,513 - -

Aseptic production line for PET bottling

equipment at Hsin Shih, 2002

Retained

earnings

2003.04 373,328 52,727 320,601 - - -

TR-18 Carton fi lling Line,2003 Retained

earnings

2003.07 98,451 - 98,451 - - -

Fermentation Process Line,2003 Retained

earnings

2004.03 57,960 - 56,304 1,656 - -

Bean Milk Mixing Equipments,2003 Retained

earnings

2004.03 80,310 - 29,359 50,951 - -

PET-bottle Weight-lightening

equipment in Mineral Water plant,2003

Retained

earnings

2004.04 53,000 - 71 52,929 - -

Tea Extraction Equipment in Hsin Shih

dairy plant, 2003

Retained

earnings

2004.08 56,020 - 81 55,939 - -

ESL fi lling equipment of PET-bottle dairy

in dairy plant,2003

Retained

earnings

2004.08 86,800 - 67,684 19,116 - -

UPEG Internet Data Center (IDC),2003 Retained

earnings

2003.12 89,286 - 89,286 - - -

The Sales Company ERP-ASP

(Application Service Provider)

model,2003

Retained

earnings

2004.12 55,000 - 38,000 17,000 - -



MAJOR CAPITAL EXPENDITURE

Major Capital Expenditure and Its Source of Capital In thousand NTD

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2. Other Benefits (e.g. Product Quality, Anti-Pollution, Cost Reduction and etc.)

(1) Construction of “Uni-President International Building” reserves the Company an appropriate operating center

to deal with increasing foreign investments, and also makes the Company keep pace with government’s

policy, “Asia-Pacific Regional Operations Center.” This building is expected to deliver the Company and whole

Group a superior image in the future.

(2) Ice Builder system provide ice water during production to keep quality of cold food.

(3) Amplification of Extended Shelf Life may reduce propagation of germs.

(4) UPEG Internet Data Center (IDC) is to provide UPEG members relevant and useful information and to achieve

an E-enterprise.

(5) The Sales Company ERP-ASP (Application Service Provider) model expected to enhance competitive advantage

of supply chain is to integrate information flow of suppliers, sales companies and retailers.

(6) Tea Extraction Equipment and Fermentation Process Line are pre-equipment for TT3, TR-18 and ESL filling

equipment of PET-bottle dairy.

ANALYSIS OF INVESTMENTS

Not Applicable: Amount of each investing project in 2003 is less than 5% of paid-in capital.

Year Item

Quantity of

Production Quantity of Sales Amount of Sales Gross Profi t

1st Year The 1st Production line for Aseptic PET

bottling equipment

302 1 282 1 $ 553 $ 253

1st Year The 2nd production line for Aseptic PET

bottling

347 1 324 1 636 291

1st Year The Toast production line and Plant at

Mado

7 2 7 2 167 42

1st Year The 4th Bun production line 31 3 31 3 329 99

1st Year Big PE Bottling production line 38 1 38 1 1,460 467

1st Year Cup Noodle production line 48 4 46 4 597 250

1st Year Two production lines for TT3 (Tetra Top) 21 1 21 1 380 144

1st Year Aseptic PET bottling equipment at Hsin

Shih

197 1 197 1 308 108

1st Year TR-18 Carton fi lling Line 45 1 45 1 750 300

1st Year ESL fi lling equipment of PET-bottle dairy

in dairy plant

11 1 11 1 371 111

1st Year Bean Milk Mixing Equipments 8 1 8 1 188 43

1st Year PET-bottle Weight-lightening equipment

in Mineral Water plant

30 1 30 1 365 146

1 In million liters; 2 In million bars; 3 In million pieces; 4 In million cups.

In million NTD

Expected Benefits

1.Estimated Increase of Production, Sales, and Gross Profits


ANALYSIS AND EVALUATION OF RISK MANAGEMENT

The corporate risk management within the Uni-President contains the recognition, identification, analysis, and

evaluation of the potential risks in each division. It further selects appropriate methods to control and handle the risks

as well as attempts to supervise and improve risk management plan. To effectively manage risks, Uni-President

centrally categorizes the risks with their level of influences and assigns each division to take on their respective risks.

Our corporate risk management consists of following matters:

1. Financial, liquidity, credit, legal risks: According to the latest changes in legal, policy and market status, strategy is

determined and executed by the financial, accounting, and legal departments cooperatively. Also the risk types

mentioned above are monitored and assessed by the Audit Division continuously.

2. Market risks: Normally each individual business and service division determines its own strategy and take on the

necessary risk management based on the changes in legal, policy and market. Should a risk occur, the head of

Management Group would instantly call on a corresponding risk management committee and convene members

of top officials of Public Affairs Office and relevant business groups to discuss about the solution to neutralize the

risk.

3. Strategic operation risks: The Business Development Committee, formed by officials of business planning group

and relevant business groups, handles the risk assessment in advance, and keeps tracking the operational

performance afterwards to ensure the achievement of corporate operational goals.

The Assessment of Risk Management Analysis in 2003

1. The impact of interest rates, foreign exchange and inflation on the Company’s profit and loss and its

action plans:

(1) Interest rate fluctuation: In 2003, we foresaw the downtrend of market rates and aggressively negotiated with

banks to lower down bank borrowing rates. We issued corporate bond and EEB to lower corporate costs and

stabilize financing costs for the next five years. The Company’s interest expense in 2003 was NTD 457 million

less than that of year 2002. In order to limit our exposure to interest rate risks, we replaced part of floating rate

debt with long-term fixed-rate funding and monitor the rate trend and adopt proper interest rate hedging

instruments. Moreover, we issue the corporate bond and EEB to lock funding cost at lower level.

(2) Foreign exchange volatility: Since TWD appreciated from 2003, Uni-President increased USD debt position and

used NDF to lock in foreign exchange gains at same time. Uni-President’s exchange gain was NTD 22 million

in 2003. In the future, Uni-President will continue to monitor the movement of foreign exchange rates and use

proper currency hedging instruments, if necessary, to manage foreign exchange risk.

(3) Inflation: Since inflation was modest in 2003, it didn’t have significant impact on Uni-President’s operation and

profit. In the future, Uni-President will adjust operating strategies referring to competitors once the price

fluctuates a lot.

2. Policies, reasons for gain or loss and action plans in regard to high-risk/high leveraged investments,

lending/endorsement, guarantee for other parties, and derivative transactions:

(1) Uni-President does not engage in high-risk and high leveraged financial investments.

(2) Uni-President provides lending, endorsement and guarantee to other parties. These actions are all in

compliance with “Procedure Governing the Lending of Capital to Others” and “Procedures for Endorsement


and Guarantee ”. For details, please refer to note 11 of the financial statements on page 190.

(3) The derivative transactions’ nature that Uni-President entered into was for the purpose of lowering down cost

of corporate bond and locking in foreign exchange gains. These transactions are also all in compliance with

“Policies and Procedures for Financial Derivatives Transactions”. For the risk valuation and profit details, please

refer to the note 10(1) of financial statements on page 186.

3. The major factors that affect the success of the research projects that are either in progress or in

planning, expected research expense, estimated production schedule, and future research:

Our product categories include dairy, beverage, instant foods, frozen foods, meat products, ice products,

flour, edible oil and feed. We are very much devoted to the innovation and the introduction of the advanced

technologies to our product development. These consistent efforts gradually accumulate our food core

technology and the competitive ability, and help retain our leading position in Taiwan food industry.

The Central Research and Development Institute (CRI) has 148 employees, with 70% holds degree higher than

master. Besides the search for higher food technologies, CRI continues to develop new products every year that

are natural, fresh, healthy, and functional and thus encourage the consumer to understand the importance of

healthy diet. CRI discovers and creates valuable product lines to meet the rapidly changing food market and to

respond to the short product life cycles. This is based on annual business plan that considers current consumer

requirements and the use of well established product development procedures including product planning and

pilot runs. By the end of April 2004, CRI has developed 102 new products. The estimated CRI budget is

approximately 3 hundred million this year.

4. The Impact of the changes in governmental policies and regulations on Company’s business and

finance and its action plan:

In accordance with the Tax Exemption Incentives for New Investments in the Manufacturing and Technical

Service Industries act that approved on 20 March 2003, our purchase of new equipment or technology may be

applicable to the five-year exemption on the profit-seeking enterprise tax. Also, we have informed our affiliated

enterprises about this exemption and encourage them to apply.

5. The impact of Company’s business and financial situation and its action plan due to the changes of

technologies:

The company places great emphasis on the improvement of technologies, and also strives for the application

of information technology at all times. For example, the Company has adopted the Oracle Enterprise Resource

Planning, developed on-line selling and billing system and then introduced into each regional distributor so that

the managers can grasp the trends of products, improve customer satisfaction, response to customers’ credit line

and inventor on time. Our collection of payment will be streamlined and thus expand the business opportunities

and sales channels. The Company has also constructed data warehouse to provide real-time information for

decision making, developed group’s e-procurement platform, established videoconference system, and carried

out the Group Share Services Center progressively.

6. The Impact of the changes of corporate image on Company’s business and financial situation and its

action plan:

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Since inception, the Company has taken on the decent operational philosophy and assumed social

responsibilities. The principle is that what is taken from the society is used in the best interests of the society. Every

year, the Company has organized many series of public welfare activities, and keeps a good business image that

has won the recognition from our consumers.

7. Others:

In the early 2003, our company established the “Emergency Response Group for the Prevention and Cure for

SARS” to react to the widespread of SARS. In the early 2004, we renamed it as the “Emergency Response Group

for the Prevention and Cure for Vital Infectious Diseases” to include prevention of many other diseases like Bird

Flu. Since 2003, we also established the “Environmental Protection and Occupational Safety Website” to convey

the message of occupational safety and health through this powerful wide-spreading network.

OTHER IMPORTANT MATTERS: None.


91 Corporate Governance Practices

CORPORATE GOVERNANCE PRACTICES

CORPORATE GOVERNANCE PRACTICES

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Item Executions

The Reasons for the discrepancy between the

Company Implementation and the TSE Corporate

Governance Best Practice Principles

1. Corporate shareholder structure and

shareholders’ rights

(1) The way of handing shareholder suggestions

or disputes

In addition to the stock affair attorneys, the

company also assigned spokesman, public affair

division, and investor relation department to

handle the issues.

-

(2) The company’s possession of major

shareholder’s list and the list of ultimate

owners of these major shareholders

The company keeps track of the major

shareholders and ultimate owners that listed by

the stock affair attorney and periodically reports

the changes of shareholdings in directors,

supervisors and managers.

-

(3) Risk Management Mechanism and Fire wall

between the Company and its affi liates

The company has mandated relevant rules within

its “Internal Control System”.

-

2.The structure and responsibilities of the board

(1)Independent Directors None The numbers of the directors are determined

according to the business operation,

shareholdings of the major shareholders and

the need of practices. Most company’s directors

and representatives of juridical directors are

profi cient and knowledgeable in handling their

responsibilities. One director has already fulfi lled

the requirement of independence. The Company

will make planning according to the relevant

legislation in the future.

(2) Regular evaluation of external auditors’

independence

The company conducts the evaluation of external

auditors’ independence. All auditors must not be

the Company’s directors, supervisors, stockholders,

employees and stakeholders. The amount paid

to the auditors for non-auditing fee in 2003 was

NTD 100,000.

-

3. The composition and responsibilities of

supervisors

(1)Independent Supervisor(s) None The numbers of supervisors are determined

according to the Company Law. The Company

will make necessary planning according to the

relevant legislation in the future

(2) Communication channel with employees or

shareholders

The supervisors can communicate with employees

and stockholders through the assistance of

spokesperson, labor union, as well as in the

Shareholders Meeting.

-



CORPORATE GOVERNANCE PRACTICES (Continued)

Item Executions

The Reasons for the discrepancy between the

Company Implementation and the TSE Corporate

Governance Best Practice Principles

4. The company’s communication channels for its

stakeholders

Relevant departments are available to keep good

communication with the stakeholders.

-

5.Information Disclosure

(1) Establishment of corporate website to

disclose information regarding the company’s

fi nancials, business and corporate governance

status

The information about company’s fi nancial

and corporate governance is available at

www.uni-president.com.tw

-

(2) Other information disclosure channels(e.g.

English website, appointing responsible

people to handle information collection

and disclosure, appointing spokesperson,

webcasting investor conference)

1. Set up an English website:

www.uni-president.com.

2. Assigned relevant departments to collect and

disclose company information.

3. Currently we have one spokesperson and two

deputy spokesmen.

4. Disclose investor conferences’ information in

company website.

-

6. The operation of the audit committee work

within the Board of Directors of the Company

None Presently the tasks of audition are taken by

company’s supervisors, so no audit committee is

established. However the Company has detailed

complete operational guideline and management

for each division to follow. In the future, we will

plan the necessary committee with accordance to

the relevant legislation.

7. If the Company has established corporate governance policies based on TSE Corporate Governance Best Practice Principles, please describe discrepancy

between the policies and their implementation

The company has not yet established corporate governance policies based on TSE Corporate Governance Best Practice Principles.

8. Other important information to facilitate better understanding of the Company’s corporate governance practices (e.g. directors’ and supervisors’ training

records, directors’ and supervisors’ attendance of the board of director’s meetings, the implementation of risk management policies and risk evaluation

measures, the implementation of consumers/customers protection policies, the implementation of directors recusing themselves in case of confl icts of

interests situations, purchasing insurance for directors and supervisors, and social responsibilities.)

1. Chairman Mr. Chin-Yen Kuo, managing director Mr. Chang-Shang Lin and supervisor Mr. Peng-Chih Kuo have attended the educational programs. In

the future, the company will keep on organizing educational programs for other board members.

2. The Board convened eight regular meetings in 2003. The attendance of directors is 97% and the attendance of supervisors is 100%.

3. Risk management policy and risk evaluation measures: Not applicable.

4. We have established a customer services center to deal with the consumer complaints and protect consumer rights.

5. The Company’s directors recuse themselves from voting on matters in which their interests confl ict with the company’s.

6. The company always believes it has a responsibility to give back to the community and has established “Uni-President Welfare and Charity Foundation

” and “Millenary Love Health Foundation” to show our concern to the society.

7. Items in planning: Purchase liability insurance for directors and supervisors. Currently we are in negotiation with insurance company.

95 Summary of Affiliated Enterprises

132 Internal Control System Execution Status

133 Major Resolution of General Meeting of Shareholders and Meetings of Board

of Directors

135 Directors’ or Supervisors’ Objections on Important Resolution of Meetings of

Board of Directors

135 Issuance of Private Placement Securities

135 Acquisition or Disposal of Uni-President Shares by Subsidiaries

135 Legal Penalties and Internal Punishment

135 Other Necessary Supplement

135 Major Event May Affect Shareholders’ Equity or Stock Price

SPECIAL DISCLOSURES

SP

EC

IAL

DIS

CL

OS

UR

ES


President Global Corp.


100%

Cayman President Holdings Ltd.100%

President International Trade & Investment Corp.100%

Kai Yu Investment Co., Ltd.100%

Nanlien International Corp.99.99%

President Chain Store Corp.45.24%

President Asian Enterprises Inc.49.99%

Ton Yi Industrial Corp.43.34%

President International Development Corp.58.5%

President Natural Industrial Corp.74.85%

President Baseball Team Corp.100%

President Pharmaceutical Corp.53.74%

Uni-President Cold Chain Corp.20%

Mech-President Corp.20%

President Coffee Corp.20%

President Kikkoman Inc.50%

Retail Support International Corp.20%

President Transnet Corp.20%

President Nisshin Corp.51%

Kai Nan Investment Co., Ltd.100%

Presco Netmarketing Inc.100%

President Fair Development Corp.42.86%

President Information Corp.30%

Parabola Creative Inc.60%

Uni-President Dream Parks Corp.100%

President Packaging Corp.50.59%

President Tokyo Corp.21%

Tung Yuan Corp.100%

Uni-President Organics Corp.51.67%

Tone Sang Construction Corp.100%

President Entertainment Corp.61.8%

Aimservices Uni-President Co., Ltd.50%

Tung Ho Development Corp.65.06%

Ameripec Inc.100%

Tianjing President International Food Co., Ltd.100%

Shanghai President International Food Co., Ltd.100%

Uni-President (U.S.A.), Inc.100%

President Hotel Inc.100%

President Canada Construction Inc.100%

President Canada Real Estate Services Inc.100%

555053 British Columbia Ltd.100%


President Logistics International Co., Ltd.25%

Tung Jim Corp.60%

Mech-President (BVI) Co., Ltd.100%

Shanghai Mech-President Co., Ltd.100%

Chieh Shun Transport Corp.100%

Shanghai President Packaging Co., Ltd.100%



Safety Elevator Corp.100%

Gu Hsiang Co., Ltd.100%

Uni-OAO Travel Service Corp.10%

President Packaging (BVI) Co., Ltd.100%


President Tokyo Auto Leasing Corp.100%

President Being Corp.50%

Retail Support Taiwan Corp.51%

100%

President LogisticsInternational Co., Ltd.

6%

Kainan Plywood & Wood Mfg. Co., Ltd.

Uni-President Glass Industrial Co., Ltd.100%

Ton Yi Pharmaceutical Corp.51%

Uni-President Oven Bakery Corp.40%

Bank Pro E-Services Technology Co.5%

Muji (Taiwan) Co., Ltd.10%

Fig.1

Fig.2

Fig.3

Fig.4

Fig.5

Note 1

Note 19

Fig.6 Note 3

Note 5

Note 22

Note 10

Note 11

Note 12

Note 4

Note 2

Note 9

Note 20

Note 8

Note 7

Note 26

Note 14

Note 27

Note 6

Note 28

President Logistics International Co., Ltd.49% Note 6

Note 2

Note 6

Note 28

AFFILIATED ENTERPRISES INFORMATION

Affiliated Enterprises Organization Chart



Fig.1

Uni-President (Thailand) Ltd.


100%

Fig.2

Tung Ang Enterprises Corp.


60%

Uni-President Vender Corp.100%

Kai Yu (BVI) Investment Co., Ltd.100%

Century Quick Service Restaurant Corp.60%


Xinjiang President Enterprises Food Co., Ltd.100%

Tianjing President Enterprises Food Co., Ltd.94.49%

Chengdu President Enterprises Food Co., Ltd.100%

Meishan President Feed & Oil Co., Ltd.100%

Wuhan President Enterprises Food Co., Ltd.100%

Nanchang PresidentEnterprises Co., Ltd.51%

Guangzhou Wang ShengIndustrial Co., Ltd.

50%

Zhongshan President Enterprises Co., Ltd.100%

Beijing President Food Co., Ltd.55%

Guangzhou President Enterprises Co., Ltd.100%

Kunshan President Enterprises Food Co., Ltd.100%

Guangzhou WangSheng Industrial Co., Ltd.50%

Qingdao President Feed & Livestock Co., Ltd.80%

Shenyang President Enterprises Co., Ltd.100%

Hefei President Enterprises Co., Ltd.100%

Shanghai Songjiang President Enterprises Co., Ltd.100%

Fuzhou President Enterprises Co., Ltd.100%

Beijing President Enterprises Drinks & Food Co., Ltd.43.5%

President Coffee (Cayman) Holdings Ltd.20%

Shanghai President Coffee Co., Ltd.100%

San Tong Wanfu (Qingdao) Food Co., Ltd.30%

Harbin President Enterprises Co., Ltd.100%

Zhengzhou President Enterprises Co., Ltd.100%

Beijing President Enterprises Drinks & Food Co., Ltd.56.5%

Nanchang President Enterprises Co., Ltd.49%

Uni-President (Vietnam) Co., Ltd.100%

Uni-President (Philippines) Corp.100%

Uni-President Foods Corp.100%

Uni-President Southeast Asia Holdings Ltd.100%

President Enterprises (China)Investment Co., Ltd.

100%

Changjiagang PresidentNisshin Food Co., Ltd.

60%

Uni-President International (HK) Co., Ltd.100%

President Energy Development(Cayman) Ltd.

25.5%

Note 16

Note 23

Note 16

Note 24

Note 23

Note 15

President Asian Enterprises Inc.0.02% Note 1

Note 18

Note 13 Note 17

Note 24

Note 19 Fig.5

Affiliated Enterprises Organization Chart (Continued)

SP

EC

IAL

DIS

CL

OS

UR

ES


Fig.3

Nanlien International Corp.

Uni-President Auto Accessories Corp.100%

Nella Limited100%

Wei Lien Enterprises Corp.100%

Tong Ho Development Co., Ltd.9.57%

Cayman Nanlien Holding Ltd.100%

Union Chinese Corp.80.48%

0.67%

Lien Yu Enterprises Corp.50.91%


Xin Sheng Food Corp.50.29%

Tung Chang Enterprises Corp.70%

Tung Hsiang Enterprises Corp.51%


Yuan Tai Enterprises Corp.51%

Tung Huang Enterprises Corp.70%

Tung Shun Enterprises Corp.69%

Jian Hua Enterprises Corp.61%

Tung Che Enterprises Corp.100%

Tung Xu Enterprises Corp.85%

Hui Sheng Enterprises Corp.100%

Tung Yu Enterprises Corp.74.50%

Chi Fu Enterprise Corp.100%

Tung Shen Corp.100%

Tung Yi Enterprises Corp.51%

Lien Song Enterprises Corp.100%

Lien You Enterprises Corp.100%

Lien Lu Enterprises Corp.100%

Hua Zuo Corp.60%

Jin Yu Enterprises Corp.90%

Tunnel 88 International Marketing Corp.100%

Tunnel International Marketing Corp.100%

Gu Hsiang Co., Ltd.

President Being Corp.

100%

50%


Lien Bai Enterprises Corp.100%

Xian Jin Food Corp.80%

Fu Chun Enterprises Corp.100%

Chieh Yi Enterprises Corp.100%

Tung Jun International Corp.100%

Tung Hsiang Corp.100%

Tung Guan Egg Corp.100%

Tung Chu Enterprises Corp.51%

Chao Tung Enterprises Corp.47%

Uni-President Yellow Hat Co.20%

Note 20

Note 3

Note 10

Note 5

Note 28


Fig.6




President LogisticsInternational Co., Ltd.

6% Note 6

President Logistics International Co., Ltd.49% Note 6


President Logistics International Corp.25% Note 6

Note 21




President Coffee (Cayman) Holding Ltd.30%

Shanghai Presidnet Coffee Co., Ltd.100%

President Chain Store (Labuan) Holdings Ltd.100%

Philippine Seven Corp.56.59%

Shanghai Mech-President Co., Ltd.100%




ConvenienceDistribution Inc.100%

Note 17

Fig.4

President Chain Store Corp.

President Chain Store (BVI) Holdings Ltd.100%


Mech-President (BVI) Corp.100%

Safety Elevator corp.100%

Tung Jim Corp.60%


49%


President LogisticsInternational Corp.

6%

Chieh Shun Transport Corp.

100%

President Drugstore Business Corp.100%

President Direct Marketing Corp.100%

Rui Hui Investment Corp.100%

Capital Inventory Service Corp.100%

Kainan Plywood & Wood Mfg. Co., Ltd.100%President Fair Development Corp.14.28%

Wisdom Distribution Service Corp.100%

President Information Corp.70%

President Coffee Corp.30%

Mech-President Corp.62.95%

Uni-President Oven Bakery Corp.60%

President Transnet Corp.80%


President Engineering Technology Corp.70%

President Musashino Corp.60%

Books.com Co., Ltd.50.03%


President International Development Corp.3.33%



Note 6Note 3

Note 10

Note 2

Note 19

Uni-President Yellow Hat Corp.30% Note 21

Tung Ho Development Co., Ltd.19.31% Note 20

President Pharmaceutical Corp.20% Note 22

Uni-OAO Travel Service Corp.10% Note 28

Muji (Taiwan) Co., Ltd.41% Note 27

Century Quick Services Restaurant Corp.20% Note 13

Uni-President Takashimaya Co., Ltd.50%

Bank Pro E-Services Technology Co.53.33% Note 26

President Collect Service Co., Ltd.70%

President Logistics International Co., Ltd. Note 6

Note 5

Note 11

Note 14

Note 7

Note 8

Note 4

Note 12

Note 6

Note 28

Note 6

Duskin Serve Taiwan Co., Ltd.51%


President Being Corp.50%

Gu Hsiang Co., Ltd.100%

Fig.6

Fig.5


SP

EC

IAL

DIS

CL

OS

UR

ES


Fig.6

President (BVI) International Investment Holdings Ltd.


100% President Energy Development (Cayman) Ltd.39.58%

President Biosystems Co., Ltd.93.02%

Z-Kat Asia Co., Ltd.100%

Kainan Plywood & Wood Mfg. Co., Ltd.100%

President Medical Technologies Corp.46%

President Life Sciences Cayman Co., Ltd.100%

Protein Institute Inc.70.88%

Tung Li Development Corp.49.96%

President Life Sciences Co., Ltd.100%

Tong Shou Investment Corp.100%

Tong Cheng Investment Corp.100%

Tong Yu Investment Corp.100%

President Medical Technologies Corp.27%

President Entertainment Corp.38.2%

President Fair Development Corp.42.86%

Presitex Co., Ltd.63.01%

G-Advanced Semiconductor Technology Co., Ltd.54.54%


Note 15

Note 25

Note 9

Note 25

Note 12

Note 19 Fig.5


Note 1 : Uni-President Enterprises Corp. holds 49.99%, Cayman President Holdings Ltd. holds 0.02%, Consolidated

holding is 50.01%.

Note 2 : Uni-President Enterprises Corp. holds 51.67%, President Chain Store Corp. holds 31.67%, President Natural

Industrial Corp. holds 16.66%, Consolidated holding is 100%.

Note 3 : Uni-President Enterprises Corp. holds 58.5%, President Chain Store Corp. holds 3.33%, Nanlien

International Corp. holds 0.67%, Ton Yi Industrial Corp. holds 3.33%, Consolidated holding is 65.83%.

Note 4 : Uni-President Enterprises Corp. holds 30%, President Chain Store Corp. holds 70%, Consolidated holding is

100%.

Note 5 : Uni-President Enterprises Corp. holds 20%, President Chain Store Corp. holds 60%, Nanlien International

Corp. holds 20%, Consolidated holding is 100%.

Fig.5

Ton Yi Industrial Corp.

Tovecan Corp.51%

Cayman Ton Yi Industrial Holdings Ltd.100%

New Dawn Enterprises Ltd.100%

Tung Ang Enterprises Corp.40%

3.33%

Cayman Jiangsu Ton Yi Industrial Holdings Ltd.

Jiangsu Ton Yi Tinglate Co., Ltd.82.86%

Cayman Fujian Ton Yi Industrial Holdings Ltd.88.58%

Fujian Ton Yi Tinglate Co., Ltd.83.58%

Chendu Ton Yi Industrial Packing Co., Ltd.100%

Wuxi Ton Yi Industrial Packing Co., Ltd.100%

Hong Kong Ton Yi Industrial Holdings Co., Ltd.100%

Note 18

Note 3

87.93%

Fig.6President International Development Corp.



Note 6 : Retail Support International Corp. holds 49%, Wisdom Distribution Service Corp. holds 20%, Uni-President

Cold Chain Corp. holds 25%, Retail Support Taiwan Corp. holds 6%, Consolidated holding is 100%.

Note 7 : Uni-President Enterprises Corp. holds 20%, President Chain Store Corp. holds 62.95%, Consolidated

holding is 82.95%.

Note 8 : Uni-President Enterprises Corp. holds 20%, President Chain Store Corp. holds 30%, Consolidated holding is

50%.

Note 9 : Uni-President Enterprises Corp. holds 61.8%, President International Development Corp. holds 38.20%,

Consolidated holding is 100%.

Note 10 : Uni-President Enterprises Corp. holds 20%, President Chain Store Corp. holds 25%, Nanlien International

Corp. holds 20%, Consolidated holding is 65%.

Note 11 : Uni-President Enterprises Corp. holds 20%, President Chain Store Corp. holds 80%, Consolidated holding

is 100%.

Note 12 : Uni-President Enterprises Corp. holds 42.86%, President International Development Corp. holds 42.86%,

President Chain Store Corp. Holding14.28%, Consolidated holding is 100%.

Note 13 : Kai Yu Investment Co., Ltd holds 60%, President Chain Store Corp. holds 20%, Consolidated holding is

80%.


is 100%.

Note 15 : President(BVI) International Investment Holdings Ltd. holds 39.58%, Cayman President Holdings Ltd. holds

25.5%, Consolidated holding is 65.08%.

Note 16 : Kunshan President Enterprises Food Co., Ltd. holds 50%, Wuhan President Enterprises Food Co., Ltd.

holds 50%, Consolidated holding is 100%.

Note 17 : Kai Yu (BVI) Investment Co., Ltd. holds 20%, PCS (BVI) Holdings Ltd. holds 30%, Consolidated holding is

50%.

Note 18 : Kai Yu Investment Co., Ltd. holds 60%, Ton Yi Industrial Corp. holds 40%, Consolidated holding is 100%.

Note 19 : Uni-President Enterprises Corp. holds 43.34%, Kai Yu Investment Co., Ltd. holds 1.59%, President Chain

Store Corp. holds 0.2%, President International Development Corp. holds 1.11%, Consolidated holding is

46.24%.

Note 20 : Uni-President Enterprises Corp. holds 65.06%, Nanlien International Corp. holds 9.57%, President Chain

Store Corp. holds 19.31%, Consolidated holding is 93.94%.

Note 21 : President Chain Store Corp. holds 30%, Nanlien International Corp. holds 20%, Consolidated holding is

50%

Note 22 : Uni-President Enterprises Corp. holds 53.74%, President Chain Store Corp. holds 20%, Consolidated

holding is 73.74%.

Note 23 : Wuhan President Enterprises Food Co., Ltd. holds 51%, President Enterprises (China) Investment Co.,Ltd

holds 49%, Consolidated holding is 100%.

Note 24 : President Enterprises (China) Investment Co.,Ltd holds 56.50%, Kai Yu (BVI) Investment Co., Ltd. holds

43.50%, Consolidated holding is 100%.

Note 25 : President International Development Corp holds 27%, President Life Sciences Co., Ltd. holds 46%,

Consolidated holding is 73%.

Note 26 : Uni-President Enterprises Corp. holds 5%, President Chain Store Corp. holds 53.33%, Consolidated

holding is 58.33%.


is 51%.

Note 28 : Uni-President Enterprises Corp. holds 10%, President Dream Parks Corp. holds 80%, Tung-Ho

Development Corp. holds 10%, Consolidated holding is 100%.

Name of Corporation

Date of

Establishment Address

Paid-in

Capital

Major Business/

Production Items

Uni-President Enterprises Corp. 1967.08.25 301,Chung Cheng Rd., Yungkang City, Tainan Hsien, Taiwan 33,950,978,000 Instant Noodle, Beverage ,Feeds, Flours, Dairy Products

President Global Corp. 1988.10.01 6965 Aragon Circle, Buena Park, California 90620, U.S.A. USD5,000,000 Importing Instant Noodle and Juicy can

Ameripec Inc. 1988.10.01 6965 Aragon Circle, Buena Park, California 90620,U.S.A. USD2,601,000 Foods manufacturing

Cayman President Holdings Ltd. 1994.01.06 Second Floor,Zephyr House, Mary Street, P.O.Box709,George Town, Grand Cayman, Cayman Island, British West Indies.

USD150,060,000 Investment

Uni-President Southeast Asia Holdings Ltd. 2003.01.04 Scotia Center, 4th Floor, P.O.Box2804, Georgetown, Grand Cayman Island. USD40,000,000 Investment

Uni-President (Thailand) Ltd. 1994.05.17 253 Orifl ame Asoke Tower,18th F., Soi Asoke, Sukhumvit 21 Rd., N. Klong Toey, Khet Wattana,Bangkok 10110

BHD870,000,000 Beverage, foods

Uni-President (Vietnam) Co., Ltd. 1999.02.06 No.16-18, DT 743 Road, Song Than 2 Industrial Zone, Di An County, Binh Duong Province, Vietnam

USD31,000,000 Foods, Flours, Feeds, Oil

Uni-President (Philippines) Corp. 1998.07.28 Unit 2004A Phil. Stock Exchange Center, Exchange Rd., Ortigas Center, Pasig City, Philippines

PSO34,000,000 Instant Noodle

Uni-President Foods Corp. 2001.04.24 Unit 2004A Phil. Stock Exchange Center, Exchange Rd., Ortigas Center, Pasig City, Philippines

PSO464,000,000 Instant Noodle

President Energy Development (Cayman) Ltd. 1996.08.06 P.O.Box31106 SMB, Grand Cayman, Cayman Islands, British West Indies USD40,000,000 Energy developing

President Enterprises (China) Investment Co., Ltd.

1998.03.10 33F,No.1027 Changning Rd., Zhaofeng Plaza, Shanghai, P.R.C. USD248,160,000 Investment

Xinjiang President Enterprises Food Co., Ltd. 1992.01.13 No.18, Yinbin Rd., Urumoi, Xinjiang, P.R.C. USD15,500,000 Tomato Products, Beverage, Foods

Tianjiang President Enterprises Food Co., Ltd. 1992.06.17 No. 88,Sanhuai Rd., Tanggu District, Tianjing, P.R.C. USD15,210,000 Flours

Chengdu President Enterprises Food Co., Ltd. 1993.04.14 Chengdu Industrical Park For Taiwan And Foreign Investment Tianfu Town, Wenjiang County, Chengdu Sichuan, P.R.C.

USD20,000,000 Instant Noodle, Beverage, Meat Products

Meishan President Feed & Oil Co., Ltd. 1993.09.18 Xin Cun,Dongpo Town, Meishan District, Sichuan Province, P.R.C. USD10,000,000 Feeds, Oil

Guangzhou President Enterprises Co., Ltd. 1994.12.05 Nangangshangzhu Industrical District, Yunpu Development So Huangpo, Guangzhou, Guangdong, P.R.C.

USD48,000,000 Instant Noodle, Beverage, Dairy Products

Zhongshan President Enterprises Co., Ltd. 1995.06.14 Industrial Area, Fusa County, Zhongshan, Guangdong, P.R.C. USD12,000,000 Aquatic Feeds, Animal Feeds, Pet Feeds

Beijing President Food Co., Ltd. 1992.02.02 No.301, Baige Rd., Jingchang Highway, Changpin District, Beijing, P.R.C. USD12,400,000 Instant Noodle

Wuhan President Enterprises Food Co., Ltd. 1993.07.09 Wujiashan Economic Development Zone, Dongxihu District, Wuhan, P.R.C. USD24,200,000 Instant Noodle, Beverage, Dairy Products

Nanchang President Enterprises Co., Ltd. 2001.05.18 No.388, Qin Shan Hu St., Nanchang, P.R.C. USD12,000,000 Instant Noodle, Beverage, Dairy Products

Kunshan President Enterprises Food Co., Ltd. 1993.05.14 No.301, Qin Yang Rd. (South), Kunshan, Jiangsu, P.R.C. USD44,000,000 Instant Noodle, Beverage, Dairy Products

Guangzhou Wang Sheng Industrial Co., Ltd. 1999.05.06 No.1, Yong Shun Rd., Yong He Economic Zone, Getdz Zengcheng, Guangzhou P.R.C.

RMB20,000,000 Selling

Qingdao President Feed & Livestock Co., Ltd. 1998.04.01 Chang Ge Zhuang Town, Pingdu City, Qingdao, P.R.C. USD15,000,000 Feeds

Shenyang President Enterprises Co., Ltd. 1995.06.15 No.15, 6st,Economical & Technical Development Zone, Shengyang, P.R.C. USD19,900,000 Instant Noodle, Beverage, Dairy Products

Hefei President Enterprises Co., Ltd. 1998.04.23 Jinxiu Avenue, Hefei Economical & Technological Development Zone, Anhui, P.R.C.


Harbin President Enterprises Co., Ltd. 1998.02.26 Qingdao Rd., Comprehensive Industrial Development Section, Harbin Economic & Technological Development Zone, P.R.C.

USD15,000,000 Instant Noodle, Beverage ,Dairy Products

Changjiagang President Nisshin Food Co., Ltd.

1996.03.22 Baodao Rd., Changjiagang Freetrade Zone, Jiangsu, P.R.C. USD17,000,000 Oil

Zhengzhou President Enterprises Co., Ltd. 2002.06.25 Xinzheng Taiwan Businessmen Investment Zone East of the Xingang Main Road


Basic Data of Affiliated Enterprises IN NTD

SP

EC

IAL

DIS

CL

OS

UR

ES


Name of Corporation

Date of


Paid-in

Capital

Major Business/

Production Items

San Tong Wanfu(Qingdao) Food Co., Ltd. 2002.11.14 New Industrial Zone, Pingdu, Qingdao USD12,000,000 Breeding and cultivation of birds and animals

Uni-President International (HK) Co., Ltd. 1997.09.12 Unit 3608,36F,The Center,99 Queen’s Rd., Central, Hong Kong HKD6,000,000 Trading

President International Trade & Investment Corp.

1990.12.27 Citco Building, Wickhams Cay P.O.Box 662,Road Town, Tortola, British Virgin Island.


Tianjing President International Food Co., Ltd.

1992.10.08 Yixingbu, Nanxiawei St., Beichen District, Tianjing, P.R.C. USD12,450,000 Biscuits, Foods

Shanghai President International Food Co., Ltd.

1994.06.03 No.22 Xin qiao town, Min yi Rd., Song Jiang District, Shanghai, P.R.C. USD13,000,000 Biscuits, Foods

Uni-President (U.S.A.), Inc. 1998.11.09 331 North Vineland Avenue, City of Industry, CA, 91746 U.S.A. USD15,000,000 Instant Noodle

Kai Yu Investment Co., Ltd. 1993.05.27 No.340,Tzu Chiang Rd., Yungkang City, Tainan Hsien, Taiwan 4,322,054,000 Investment

Tung Ang Enterprises Corp. 1999.07.02 No.340,Tzu Chiang Rd., Yungkang City, Tainan Hsien, Taiwan 30,000,000 Beverage

Uni-President Vender Corp. 2000.10.27 No.59,Lane 74,Niao Son 1 St., Yungkang City, Tainan Hsien, Taiwan 25,000,000 Foods Wholesale

Kai Yu (BVI) Investment Co., Ltd. 1999.05.06 Commonwealth Trust Limited, Sealight House, Tortola, British Virgin Islands


Shanghai Songjiang President Enterprises Co., Ltd.

1993.12.30 No.22 Xin qiao town, Min yi Rd., Song Jiang District, Shanghai, P.R.C. USD8,000,000 Feeds

Fuzhou President Enterprises Co., Ltd. 2001.07.08 Fuzhou Economic & Technical Development Zone, Mawei, Fuzhou, Fujian, P.R.C.


Beijing President Enterprises Drinks & Food Co., Ltd.

2001.02.02 C Building, Dazhongfi ile Village Industrial Zone, Hauirou Country, Beijing, P.R.C.

USD11,500,000 Beverage

President Coffee (Cayman) Holdings Ltd. 1999.11.16 Huntlaw Building, P.O.Box2804,George Town, Grand Cayman, Cayman Islands


Shanghai President Coffee Co., Ltd. 2000.03.02 2F,No.853,Hwaihai Zhong Rd., Lu Wan District, Shanghai, P.R.C USD4,000,000 Coffee Chain Stores

Century Quick Service Restaurant Corp. 1995.11.18 B2,No.8,Tung Hsing Rd., Taipei, Taiwan 341,250,000 Fast Foods

Nanlien International Corp. 1979.04.04 12F,No.560,Sec.4,Jungshiau E. Rd., Taipei, Taiwan 1,000,000,000 Trading

Uni-President Auto Accessories Corp. 2000.06.08 4F-4,No.230,Sec.4,Jen I Rd., Taipei, Taiwan 25,000,000 Auto Accessories Wholesale

Nella Limited. 1998.12.30 Unit3608-9,36F The Center,99 Queen’s Road Central, Hong Kong HKD10,000 Trading Agent, Investment

Tunnel International Marketing Corp. 2000.02.22 P.O.BOX957,Offshore Incorporation Centre, Road Town, Tortpla, B.V.I. USD20,000 Trading

Tunnel 88 International Corp. 2001.10.16 P.O.BOX957, Offshore Incorporation Centre, Road Town, Tortpla, B.V.I. USD20,000 Trading

Wei Lien Enterprises Corp. 1992.05.07 12F,No.580,Sec.4,Jungshiau E Rd., Taipei, Taiwan 5,000,000 Selling

Cayman Nanlien Holding Ltd. 1996.09.06 P.O. BOX31106 SMB, Grand Cayman, Cayman Islands USD4,010,000 Investment

Lien Yu Enterprises Corp. 1996.06.18 1F-l, No. 136, Huashing St., Jubei City, Hsinchu, Taiwan 302, R.O.C. 27,500,000 Selling

Lien Bai Enterprises Corp. 1997.07.11 12 F, No.560,Sec. 4,Jungshiau E. Rd., Taipei, Taiwan 80,000,000 Selling

Xin Sheng Food Corp. 1991.11.05 11F,No.8,Tung Hsing Rd., Taipei, Taiwan 7,500,000 Selling

Xian Jin Food Corp. 1992.03.06 5F-8, No.93, Sec. 2, Jhonghua Rd., Ji-an Township, Hualien County, Taiwan

5,000,000 Selling

Tung Chang Enterprises Corp. 2000.07.10 4F-l, No. 10, Alley 57, Lane 271, Wuling Rd., Hsinchu, Taiwan 7,000,000 Selling

Yuan Tai Enterprises Corp. 1992.12.08 1F-l, No. 311, Yunghua 3rd St., Anping Chiu, Tainan, Taiwan 5,500,000 Selling

Tung Huang Enterprises Corp. 1991.08.30 No. 108, Fengnan 1st Rd., Fengshan City, Kaohsiung, Taiwan 6,000,000 Selling

Tung Hsiang Enterprises Corp. 2000.05.29 11F,No.8,Tung Hsing Rd., Taipei, Taiwan 45,000,000 Selling

Tung Shun Enterprises Corp. 2000.05.23 2F-l, No. 24, Chungan St., Sanchung City, Taipei, Taiwan 45,000,000 Selling

Jian Hua Enterprises Corp. 1990.12.11 No. 43-13,Tiedian Rd., Ligang Shiang, Pingtung, Taiwan 10,000,000 Selling



Basic Data of Affiliated Enterprises (Contiuned) IN NTD

SP

EC

IAL

DIS

CL

OS

UR

ES

Name of Corporation

Date of


Paid-in

Capital

Major Business/

Production Items

Tung Shen Corp. 1996.02.08 1F-l., No. 7,Gungye 3rd Rd., Shituen Chiu, Taichung, Taiwan 16,000,000 Selling

Tung Yi Enterprises Corp. 1993.11.08 4F-l., No. 177, Sec. 2, Chingnian Rd., Fengshan City, Kaohsiung, Taiwan 10,000,000 Selling

Lien Song Enterprises Corp. 1998.01.07 12 F,No.560,Sec.4,Jungshiau E. Rd., Taipei, Taiwan 65,000,000 Selling

Lien You Enterprises Corp. 1998.01.08 5F-7, No.169, Yangming Rd., Sanmin Chiu, Kaohsiung, Taiwan 17,000,000 Selling

Lien Lu Enterprises Corp. 1997.12.26 12F,No.560,Sec.4,Jungshiau E. Rd., Taipei, Taiwan 50,000,000 Selling

Hua Zuo Corp. 1998.05.14 No.127,Guochiang 11th St., Taoyuan City, Taoyuan Hsien, Taiwan 8,000,000 Selling

Jin Yu Enterprises Corp. 1998.06.29 1F-l., No.3-3, Lane 328, Fengsung Rd., Fengshan City, Kaohsiung, Taiwan 12,000,000 Selling

Tung Che Enterprises Corp. 2000.05.04 11F,No.8,Tung Hsing Rd., Taipei, Taiwan 20,000,000 Selling

Tung Xu Corp. 1999.05.04 No.127,Guochiang 11th St., Taoyuan City, Taoyuan Hsien, Taiwan 5,000,000 Selling

Chao Tung Enterprises Corp. 1998.02.09 5F-l, No.16, Lane 174, Rueijung St., Fengshan City, Kaohsiung, Taiwan 20,000,000 Selling

Tung Guan Egg Corp. 1997.12.31 1F-l, No.7, Gungye 3rd Rd., Shituen Chiu, Taichung, Taiwan 20,000,000 Processed egg products

Union Chinese Corp. 1985.07.31 6F-l, No.135, Guangfu N. Rd., Sungshan chiu, Taipei, Taiwan. 120,000,000 Selling

Tung Chu Enterprise Corp. 1992.05.19 2F, No.83, Dungan Rd, Dung Chiu, Tainan, Taiwan. 30,000,000 Selling

Tung Hsiang Corp. 2000.05.20 11F,No.8,Tung Hsing Rd., Taipei, Taiwan 80,000,000 Selling

Tung Jun International Corp. 1996.04.05 11F,No.8,Tung Hsing Rd., Taipei, Taiwan 12,000,000 Selling

Tung Yu Enterprise Corp. 2001.10.15 11F,No.8,Tung Hsing Rd., Taipei, Taiwan 80,000,000 Selling

Hui Sheng Enterprises Corp. 2000.05.09 No. 12, Jungshing St., Tucheng City, Taipei, Taiwan 12,000,000 Selling

Fu Chun Enterprise Corp. 2002.11.05 No. 515, Jianguo 3rd Rd., Dounan Jen, Yunlin, Taiwan 3,000,000 Selling

Chieh Yi Enterprise Corp. 2002.12.26 1F-l., No. 36, Dacheng Li, Madou Jen, Tainan, Taiwan 4,000,000 Selling

Chi Fu Enterprises Corp. 1991.05.31 6F-1,No.135, Guang Fu N. Rd. ,Sung Shan Chiu, Taipei, Taiwan 22,000,000 Selling

President Chain Store Corp. 1987.06.10 8F,No.8,Tung Hsing Rd., Taipei, Taiwan 8,584,995,000 Convenience Chain Store

PCS (BVI) Holdings Ltd. 1998.07.09 Tropic Isle Building, P.O.Box438,Road Town, Trotola, British Virgin Islands USD46,405,000 Investment

Rui Hui Investment Corp. 1996.12.20 8F,No.8,Tung Hsing Rd., Taipei, Taiwan 853,037,000 Investment

Capital Inventory Service Corp. 1998.04.13 1F,No.35,Lane 245,Sec.4,Bade Rd., Taipei, Taiwan 45,494,000 Product Management Consultation

President Drugstore Business Corp. 1995.07.27 7F,No.8,Tung Hsing Rd., Taipei, Taiwan 198,000,000 Pharmaceutical and Skin Care Product Sales

President Direct Marketing Corp. 1995.09.18 10F,No.163, Sec.1, Keelung Rd., Taipei, Taiwan 70,000,000 Catalog, Direct Marketing

Wisdom Distribution Service Corp. 1999.01.11 8F,No.8,Tung Hsing Rd., Taipei, Taiwan 94,325,000 Magazine distribution

President Transnet Corp. 2000.01.24 13F,No.173,Chenggung Rd., Sanchung City, Taipei Hsien, Taiwan 1,000,000,000 Foods Retail and Transportation

President Engineering Technology Corp. 2001.08.02 8F,No.8,Tung Hsing Rd., Taipei, Taiwan 50,000,000 Machine Installation

President Collect Service Co. Ltd. 2002.06.13 8F, No.8,Tung Hsing Rd., Taipei, Taiwan 15,000,000 Collect service

President Musashino Corp. 1999.03.11 8F,No.8,Tung Hsing Rd., Taipei, Taiwan 522,900,000 Fresh Foods Seasoning

Uni-President Cold Chain Corp. 1999.01.22 No.340,Tzu Chiang Rd., Yungkang City, Tainan Hsien, Taiwan 326,055,000 Low-temperature Foods Distribution

Uni-President Oven Bakery Corp. 2000.11.20 12F,No.8,Tung Hsing Rd., Taipei, Taiwan 90,000,000 Baking Foods

President Information Corp. 1997.08.27 8F,No.8,Tung Hsing Rd., Taipei, Taiwan 151,800,000 Business Information Management

Duskin Serve Taiwan Co., Ltd. 1994.10.28 8F,No.8,Tung Hsing Rd., Taipei, Taiwan 300,000,000 Cleaning Supply and Sales

Books.com Co., Ltd. 1995.12.27 5F,No.219,Sec.1,Duenhua S. Rd., Taipei, Taiwan 199,900,000 Books Publishing and Retail

President Coffee Corp. 1997.11.03 8F,No.8,Tung Hsing Rd., Taipei, Taiwan 198,000,000 Coffee Chain Stores

Uni-President Takashimaya Co., Ltd. 2001.10.08 9F,No.580,Sec.4,Jungshiau E. Rd., Taipei, Taiwan 250,000,000 Department Store



Name of Corporation

Date of


Paid-in

Capital

Major Business/

Production Items

Uni-President Yellow Hat Corp. 2001.01.03 8F, No.8,Tung Hsing Rd., Taipei, Taiwan 190,000,000 Wholesale and retailing of automotive accessory

Muji (Taiwan) Co., Ltd. 2003.09.15 8F, No.8,Tung Hsing Rd., Taipei, Taiwan 100,000,000 General merchandise and trading

Bank Pro E-Service Technology Co., Ltd. 2000.10.25 7F, No.261,Sec.3,Nanjing E. Rd., Taipei, Taiwan 135,000,000 E-commerce and Software Service

PCS (Labuan) Holdings Ltd. 2000.10.24 Level 7(E),Main Offi ce Tower, Financial Labuan, Jalan Merdeka,87000 Labuan, F.T. Labuan, Malaysia


Philippine Seven Corp. 1982.11.24 7/F The Columbia Tower, Ortigas Avenue Mandaluyong City 1501,Philippines

PSO237,252,000 Foods and Merchandise Retail

Convenience Distribution Inc. 1998.09.17 No.8 Mercury Averue Libis, Quezon City, Philippine PSO38,000,000 Distribution and Warehousing

Mech-President Corp. 1991.12.09 No.67,Wang Kong Rd., Yungkang Industrial Zone, Yungkang City, Tainan Hsien, Taiwan

448,800,000 Gas Station, Elevators

Tung Jim Corp. 2003.10.07 No138,Huan Dao N. Rd., Shi Men area, Gincheng County, Kingmen Hsien 15,000,000 Gas Station

Safe Technology Corp. 1998.10.29 6F,No.16-21,Lane10,Chung Hwa Rd., Yungkang City, Tainan Hsien, Taiwan 5,000,000 Installment of Elevators

Mech-President (BVI) Corp. 1997.07.24 P.O.Box957, Offshore Incorporations Center, Road Town, Tortola, British Virgin Islands.


Shanghai Mech-President Co., Ltd. 2001.11.09 No.3839, Hugingping Rd., Shanghai, P.R.C. RMB20,693,000 Elevators

President Asian Enterprises Inc. 1989.10.20 Unit 8,3888 North Fraser Way Burnaby, B. C. Canada V5J 5H6 CAD16,567,000 Supermarket, Real Estate, Hotel Enterprises

President Hotel Inc. 1993.03.16 Unit 8,3888 North Fraser Way Burnaby, B. C. Canada V5J 5H6 CAD100 Hotel

President Canada Construction Inc. 1993.07.21 Unit 8,3888 North Fraser Way Burnaby, B. C. Canada V5J 5H6 CAD100 Construction

President Canada Real Estate Services Inc. 1993.12.23 Unit 8,3888 North Fraser Way Burnaby, B. C. Canada V5J 5H6 CAD100 Real Estate Services

555053 British Columbia Ltd. 1997.11.27 Unit 8,3888 North Fraser Way Burnaby, B. C. Canada V5J 5H6 CAD1 Trust

Ton Yi Industrial Corp. 1969.04.14 No.837,Chung Cheng N.Rd., Yungkang City, Tainan Hsien, Taiwan 15,807,419,000 Tin Plate Manufacturing, Tin Can Making

Tovecan Corp. 1993.01.28 No.360,Lac Long Quan St.,5th Ward 11th District, Hochiminh City, Vietnam USD3,200,000 Tin Can Making

Cayman Ton Yi Industrial Holdings Ltd. 1997.01.31 Ugland House P.O. Box 2804, George Town, Grand Cayman, Cayman Islands British West Indies



1998.10.29 Ugland House P.O. Box 2804, George Town, Grand Cayman, Cayman Islands British West Indies

USD50,000 Investment

Jiangsu Ton Yi Tinglate Co., Ltd. 1994.07.27 Tai Shan Rd., National High-tech Industries Zone, Wuxi,Jiangsu, P.R.C. RMB333,765,000 Tin Plate Manufacturing

Cayman Fujian Ton Yi Industrial Holdings Ltd.

1998.10.29 Ugland House P.O. Box 2804, George Town, Grand Cayman, Cayman Islands British West Indies

USD53,000 Investment

Fujian Ton Yi Tinglate Co., Ltd. 1995.03.31 Nanpei 2nd Rd., Jiaomei Industry General Development District, Longhai, Fujian, P.R.C.

RMB358,085,000 Tin Plate Manufacturing

Chendu Ton Yi Industrial Packing Co., Ltd. 1994.02.06 East Section South 2nd Rd., Xindu Industrial Zone of Chengdu Satelite-down, P.R.C.

RMB62,668,000 Tin Can Making

Wuxi Ton Yi Industrial Packing Co., Ltd. 1994.02.24 Tai Shan Rd., National High-Tech Industries Zone, Wuxi,Jiangsu, P.R.C. RMB56,990,000 Tin Can Making

Hong Kong Ton Yi Industrial Holdings Co., Ltd.

1993.08.19 8F, Prices Building, Hong Kong USD10,000 Investment

New Dawn Enterprises Ltd. 2001.08.16 Offshore Chambers, P.O.Box217,Apia,Western Samoa USD190,000 Investment

President International Development Corp. 1997.10.08 10F-1,No.580,Sec.4,Jungshiau E. Rd., Taipei, Taiwan 15,000,000,000 Development and management of Shopping Mall


1998.07.07 Tropic Isle Building, P.O.Box438,Rd. Town, Tortola, British Virgin Islands USD133,026,000 Investment

Tong Shou Investment Corp. 2002.03.19 10F-1,No.580,Sec.4,Jungshiau E. Rd., Taipei, Taiwan 111,400,000 Investment




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Name of Corporation

Date of


Paid-in

Capital

Major Business/

Production Items

Tong Cheng Investment Corp. 2002.03.22 10F-1,No.580,Sec.4,Jungshiau E. Rd., Taipei, Taiwan 150,000,000 Investment

Tong Yu Investment Corp. 2002.09.03 10F-1,No.580,Sec.4,Jungshiau E. Rd., Taipei, Taiwan 1,165,300,000 Investment

President Life Sciences Co., Ltd. 2000.03.14 10F-1,No.580,Sec.4,Jungshiau E. Rd., Taipei, Taiwan 1,650,000,000 Manufacturing of sophisticated chemical instruments

President Medical Technologies Corp. 2000.01.13 B2F,No.8,Tung Hsing Rd., Taipei, Taiwan 100,000,000 Wholesale of Sophisticate medical Instruments

Tung Li Development Corp. 1995.11.16 39F-1,No.80,Min Tsu 1st Rd., Kaohsiung, Taiwan 8,264,000 Land Development

President Life Sciences Cayman Co., Ltd. 2000.08.24 Huntlaw Building, P.O.Box2804, George Town, Grand Cayman, Cayman Islands.

USD26,814,000 International Finance and Holding Business

President Biosystems Co., Ltd. 2001.08.07 10F-1,No.580,Sec.4,Jungshiau E. Rd., Taipei, Taiwan 43,000,000 R & D in Biochemistry

Presitex Co., Ltd. 1999.07.09 B1F, No.8, Tung Hsing Rd., Taipei, Taiwan 361,786,000 Manufacturing and selling clothes

G-Advanced Semiconductor Technology Corp.

2000.05.25 10F-1,No.560,Sec.4,ChungHsiao E. Rd., Taipei 198,000,000 Manufacturing and Selling GaAs

Z-Kat Asia Co., Ltd. 2002.09.30 10F-1,No.560,Sec.4,ChungHsiao E. Rd., Taipei 3,000,000 Sophisticated Instruments Wholesale

Protein Institute Inc. 2001.05.25 10101 Southwest Freeway, Suite 370 Houston, Tx 77074 USD5,000 Analysis of Protein Structure

President Natural Industrial Corp. 1985.03.28 7F,No.580,Sec.4,Jungshiau E. Rd., Taipei, Taiwan 120,000,000 Healthy Foods

President Baseball Team Corp. 1990.01.12 No.340,Tzu Chiang Rd., Yungkang City, Tainan Hsien, Taiwan 30,000,000 Professional Baseball

President Pharmaceutical Corp. 1993.09.03 10F-1,No.580,Sec.4,Jungshiau E. Rd., Taipei, Taiwan 198,000,000 Distribution of Pharmaceutical Products

Tone Sang Construction Corp. 1992.01.30 No.340,Tzu Chiang Rd., Yungkang City, Tainan Hsien, Taiwan 198,000,000 Construction

President Entertainment Corp. 1988.11.03 No.132-7,Cheng Lin, Cheng Lin Village, Yo Chin Shiang, Tainan Hsien, Taiwan

1,242,000,000 Entertainment

President Kikkoman Inc. 1990.05.07 No.7,Taying Village, Hsinshih Shiang, Tainan Hsien, Taiwan 120,000,000 Soybean Sauce Manufacturing

Retail Support International Corp. 1990.09.13 7F,No.580,Sec.4,Jungshiau E. Rd., Taipei, Taiwan 200,000,000 Selling and Distribution Merchandise

Retail Support Taiwan Corp. 1997.05.07 11F-1,No.815,Sec.5,Jungshiau E. Rd., Taipei, Taiwan 45,000,000 Selling and Distribution Merchandise

President Logistics International Co., Ltd. 2000.06.15 No.22,Alley 2,Lane 1,Lungshiang St., Jungli City, Taoyuan Hsien, Taiwan 114,200,000 Freight Transportation

Chieh Shun Transport Corp. 2003.08.01 No.218 Sec 2.Minghu Rd. Jungli City, Taoyuan Hsien, Taiwan 50,000,000 Freight Transportation

President Fair Development Corp. 1996.05.22 4F,No.90,Chung Shan Rd., Tainan, Taiwan 3,500,000,000 Land Development

Kainan Plywood & Wood Mfg. Co., Ltd. 1988.12.10 39F-1,No.80,Mintzu 1st Rd., Sanmin Chiu, Kaohsiung, Taiwan 200,000,000 Wood Selling

Tung Ho Development Corp. 1994.02.22 64, Sec.1. Chang An E. Rd. ,Taipei, Taiwan 1,565,973,000 Leisure Industry

Gu Hsiang Co., Ltd. 1977.10.17 64, Sec.1. Chang An E. Rd. ,Taipei, Taiwan 203,858,000 Leisure Industry

President Being Corp 2003.04.08 B1 No. 149 Sec.5, Mingshun E. Rd. ,Taipei, Taiwan 100,000,000 Leisure Industry

President Nisshin Corp. 1991.01.10 No.301-3,Chung Cheng Rd., Yungkang City, Tainan Hsien, Taiwan 120,000,000 Manufacturing and Selling of Oil Products

President Packaging Corp. 1994.07.20 No.1-31,Madow-ko,Mako Li, Madow Jen, Tainan Hsien, Taiwan 227,500,000 Packaging Material and Containers

President Packaging (BVI) Co., Ltd. 2001.08.09 Sealight House, Tortola, British Virgin Island. USD1,500,000 Investment

Shanghai President Packaging Co., Ltd. 2003.01.16 505 Xiang Che Rd. Chedun Song Shanghai China POST Code 201611 RMB12,415,000 Packaging Material and Containers

Parabola Creative Inc. 1989.10.23 8F,No.222,Sec.5,NanKing E. Rd., Taipei, Taiwan 15,000,000 Advertising Creative

Ton Yi Pharmaceutical Corp. 1995.07.21 10F-1,No.580,Sec.4,Jungshiau E. Rd., Taipei, Taiwan 10,000,000 Distribution of Pharmaceutical Products



Name of Corporation

Date of


Paid-in

Capital

Major Business/

Production Items

Tung Yuan Corp. 1995.06.13 No.340,Tzu Chiang Rd., Yungkang City, Tainan Hsien, Taiwan 198,000,000 Selling and Distribution Merchandise

Uni-President Dream Parks Corp. 2000.04.15 1F,No.321,Sec.2,Lin An Rd., Tainan, Taiwan 31,000,000 Retailing of Foods and Drinks

Uni-OAO Travel Service Corp. 2003.03.06 13F,No.8,Tung Hsing Rd., Taipei, Taiwan 6,000,000 Travel Agent

Aimservices Uni-President Co., Ltd. 2001.11.28 12F,No.8,Tung Hsing Rd., Taipei, Taiwan 100,000,000 Collective Cooking

Uni-President Glass Industrial Co., Ltd. 1999.10.27 No.36,Hsin Kong Rd., Hsin Ying City, Tainan Hsien, Taiwan 360,000,000 Manufacturing and Selling of Glass Products

Kai Nan Investment Co., Ltd. 2000.04.19 1F,No.340,Tzu Chiang Rd., Yungkang City, Tainan Hsien, Taiwan 600,000,000 Investment

President Tokyo Corp. 1997.11.05 3F,No.285,Sec.3,Nanking E. Rd., Taipei, Taiwan 200,000,000 Automobile Leasing

President Tokyo Auto Leasing Corp. 2003.09.25 3F,No.285,Sec.3,Nanking E. Rd., Taipei, Taiwan 5,000,000 Automobile Leasing

Uni-President Organics Corp. 1999.01.25 1F,No.8,Lane 14, Syh Wei Rd., Taipei, Taiwan 120,000,000 Organic Foods

Presco Netmarketing Inc. 2000.03.13 2F,No.27,Sec.1,Anho Rd., Taipei, Taiwan 65,000,000 Software, Advertisement Service




USD NTD=1 34.415 HKD NTD=1 4.42 RMB NTD=1 4.158 BHD NTD=1 0.829

PSO NTD=1 0.636 CAD NTD =1 24.804 NTD VND =1 450.88

Data of Commom Shareholders of Treated-As Controlled Companies and

Affiliates: None.

Business of Uni-President and Its Affiliated Enterprises

The business of Uni-President and its affiliated enterprises covers: food manufacturing, domestic trading, retail

sales, service providing, merchandise distribution, investment, pharmaceutical manufacturing, import and export

trading, food canister manufacturing, gas station chain, leisure services, and so on. Business range of subsidiaries is

mainly in food manufacturing & sales. Uni-President is creating best value for shareholders and customers through

vertical integration and strong logistic support in manufacturing, distribution and sales channels.

Name of Corporation Title Name or Representative

Shareholding

Shares %

Uni-President Enterprises Corp. Chairman Chin-Yen Kao (Representative of Kao Chuan Investment Corp.) 49,921,359 1.47%

Managing Director Kao-Huei Cheng 20,201,054 0.60%

Managing Director Chang-Sheng Lin 29,703,931 0.87%

Director Shiu-Chi Wu(Representative of Taipo Investment Corp.) 29,970,314 0.88%

Hsiu-Jen Liu 52,075,709 1.53%

Po- Ming Ho 87,218,498 2.57%

Ping-Chih Wu 29,777,756 0.88%

Ying-Jen Wu 5,930,677 0.17%

Chung-Ho Wu(Representative of San Shing Spinning Corp.) 18,356,649 0.54%

Ruig-Tse Deng 3,277,058 0.10%

Ching-Chien Su Hou 41,532 -

Supervisor Kao-Keng Chen 28,464,576 0.84%

Peng-Chih Kuo(Representative of Chau Chih Investment Corp.) 8,819,997 0.26%

President Lung-Yi Lin 1,000,223 0.03%

President Global Corp. Chairman Chin-Yen Kao (Representative of Uni-President Enterprises Corp.) 500,000 100.00%

Director Ping-Chih Wu, Su-May Wu (Representative of Uni-President Enterprises Corp.) 500,000 100.00%

President Ping-Chih Wu

Ameripec Inc. Director Ping-Chih Wu, Su-May Wu (Representative of President Global Corp.) 3,000 100.00%

President Ping-Chih Wu

Cayman President Holdings Ltd. Director Chin-Yen Kao (Representative of Uni-President Enterprises Corp.) 150,060,000 100.00%

Uni-President Southeast Asia Holding Ltd. Chairman Chang-Sheng Lin (Representative of Cayman President Holdings Ltd.) NTD1,376,600,000 100.00%

Uni- President (Thailand) Ltd. Chairman Lung-Yi Lin(Representative of Uni-President Southeast Asia Holding Ltd..) 87,000,000 100.00%

Director Chang-Sheng Lin, Chih-Hsien Lo, Wen-Lung Yang, Chih-Peng Heish (Representative of Uni-President Southeast Asia Holding Ltd.)

87,000,000 100.00%

President De-Jen Yang

Uni-President (Vietnam) Co., Ltd. Chairman Chang-Sheng Lin (Representative of Uni-President Southeast Asia Holding Ltd.) NTD1,001,503,000 100.00%

Vice Chairman Lung-Yi Lin (Representative of Uni-President Southeast Asia Holding Ltd.) NTD1,001,503,000 100.00%

Director Chih-Hsien Lo, Chao Yang, Tsong-Ming Lin, Hua-Yang Lee, Chih- Peng Heish, Wen-Chin Cheng (Representative of Uni-President Southeast Asia Holding Ltd.)

NTD1,001,503,000 100.00%

President Wen-Chin Cheng

Uni-President (Philippines) Corp. Chairman Lung-Yi Lin(Representative of Cayman President Holdings Ltd.) NTD21,624,000 100.00%

Director Chih-Peng Hsieh, Ching-Tyan Lee, Mario R. Nery, Lorna Kapunan (Representative of Cayman President Holdings Ltd.)

NTD21,624,000 100.00%

President Ching-Tyan Lee

Uni-President Foods Corp. Chairman Chih-Hsien Lo (Representative of Uni-President Southeast Asia Holding Ltd.) NTD295,104,000 100.00%

Director Yeong-Hsiang Yeh, Chih-Peng Hsieh, Ching-Tyan Lee, Mario R. Nery (Representative of Uni-President Southeast Asia Holding Ltd.)

NTD295,104,000 100.00%

President Ching-Tyan Lee

Directors, Supervisors and Presidents of Affiliated Enterprises IN NTD; SHARES; %

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Shareholding

Shares %

President Energy Development (Cayman) Ltd. Honorary Chairman Chin-Yen Kao (Representative of Cayman President Holdings Ltd.) 10,200,000 25.5%

Chairman A-Hua Deng (Representative of Kingland Overseas Development Inc.) 2,400,000 6.0%

Director Chang-Sheng Lin, Po-Ming Yang, Lung-Yi Lin, Tsong-Ming Lin, Di- Chung Wu (Representative of Cayman President Holdings Ltd.)

10,200,000 25.5%

Kao-Huei Cheng (Representative of Tainan Spinning (Cayman) Holding Ltd.) 2,832,800 7.08%

Nan-Tien Chuang (Representative of Prince Housing & Development Corp.) 1,700,000 4.25%

Supervisor Chien-Li Yin (Representative of Cayman President Holdings Ltd.) 10,200,000 25.5%

Chih-Hsien Lo(Representative of Kao Chuan Investment Co., Ltd.) 2,000,000 5.00%

Ying-Nan Chuang (Representative of Hsin Pao Textile Co., Ltd.) 306,000 0.77%

Chung-Ho Wu (Representative of Young Yun Investment Co., Ltd.) 1,000,000 2.50%

President Di-Chung Wu

President Enterprises (China) Investment Co., Ltd.

Chairman Chang-Sheng Lin (Representative of President Enterprises (China) Investment Co., Ltd.) NTD8,540,426,000 100.00%

Director Po-Ming Yen, Lung-Yi Lin, Kuang-Nan Chu, Chih-Hsien Lo (Representative of Cayman President Holdings Ltd.)

NTD8,540,426,000 100.00%

President Kuang-Nan Chu

Xinjiang President Enterprises Food Co., Ltd. Chairman Chang-Sheng Lin (Representative of President Enterprises (China) Investment Co., Ltd.) NTD533,432,000 100.00%

Director Po-Ming Yen, Lung-Yi Lin, Wu-Chung Lin, Hsin-Lin Hsieh (Representative of President Enterprises (China) Investment Co., Ltd.)

NTD533,432,000 100.00%

President Hsin-Lin Hsieh

Tianjiang President Enterprises Food Co., Ltd. Chairman Chang-Sheng Lin (Representative of President Enterprises (China) Investment Co., Ltd.) NTD494,610,000 94.49%

Director Po-Ming Yen, Lung-Yi Lin, Kuang-Nan Chu, Chao Yang, Lung- Chung Kuo (Representative of President Enterprises (China) Investment Co., Ltd.)

NTD494,610,000 94.49%

Guang-Fu Chang (Representative of Tianjing Grain & Oil Group Ltd.) NTD28,842,000 5.51%

President Lung-Chung Kuo

Chengdu President Enterprises Food Co., Ltd. Chairman Chang-Sheng Lin (Representative of President Enterprises (China) Investment Co., Ltd.) NTD688,300,000 100.00%

Director Po-Ming Yen, Lung-Yi Lin, Kuang-Nan Chu, Chia-Heng Chen, Wu- Chung Lin (Representative of President Enterprises (China) Investment Co., Ltd.)

NTD688,300,000 100.00%

President Shih-Cheng Lee

Meishan President Feed & Oil Co., Ltd. Chairman Chang-Sheng Lin (Representative of President Enterprises (China) Investment Co., Ltd.) NTD344,150,000 100.00%

Director Po-Ming Yen, Lung-Yi Lin, Kuang-Nan Chu, Chao Yang, Jia- Chuan Wang, Ming-Yi Lin (Representative of President Enterprises (China) Investment Co., Ltd.)

NTD344,150,000 100.00%

President Ming-Yi Lin

Guangzhou President Enterprises Co., Ltd. Chairman Chang-Sheng Lin (Representative of President Enterprises (China) Investment Co., Ltd.) NTD1,651,920,000 100.00%

Director Po-Ming Yen, Lung-Yi Lin, Kuang-Nan Chu, Wu-Chung Lin, I-Ting Wu, Chia-Heng Chen (Representative of President Enterprises (China) Investment Co., Ltd.)

NTD1,651,920,000 100.00%

President I-Ting Wu

Zhongshan President Enterprises Co., Ltd. Chairman Chang-Sheng Lin (Representative of President Enterprises (China) Investment Co., Ltd.) NTD412,980,000 100.00%

Director Po-Ming Yen, Lung-Yi Lin, Kuang-Nan Chu, Jia-Chuan Wang (Representative of President Enterprises (China) Investment Co., Ltd.)

NTD412,980,000 100.00%

President Wen-Tsia Wang


Directors, Supervisors and Presidents of Affiliated Enterprises (Continued) IN NTD; SHARES; %


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Shareholding

Shares %

Beijing President Food Co., Ltd. Chairman Zuo-Zhong Shi(Representative of Beijing Gu Chuan Flour Group) NTD134,425,000 31.50%

Vice Chairman Chang-Sheng Lin (Representative of President Enterprises (China) Investment Co., Ltd.) NTD234,710,000 55.00%

Director Yu-Jing Liu, Jian-Cheng Lee, Cun-Hao Wang (Representative of Beijing Gu Chuan Flour Group)

NTD134,425,000 31.50%

Po-Ming Yen, Lung-Yi Lin, Kuang-Nan Chu, Sheng-Chi Chang, Chun-Huan Huang (Representative of President Enterprises (China) Investment Co., Ltd.)

NTD234,710,000 55.00%

Bao-Lin Fu (Representative of Beijing Huangcheng Grain & Oil Food Company) NTD57,611,000 13.50%

President Shou-Cheng Yang

Wuhan President Enterprises Food Co., Ltd. Chairman Chang-Sheng Lin (Representative of President Enterprises (China) Investment Co., Ltd.) NTD832,843,000 100.00%

Director Po-Ming Yen, Lung-Yi Lin, Kuang-Nan Chu, Sheng-Chi Chang, Fong-Shih Hsiao (Representative of President Enterprises (China) Investment Co., Ltd.)

NTD832,843,000 100.00%

President Fong-Shih Hsiao

Nanchang President Enterprises Co., Ltd. Chairman Chang-Sheng Lin (Representative of President Enterprises (China) Investment Co., Ltd.) NTD202,360,000 49.00%

Director Po-Ming Yen, Lung-Yi Lin, Kuang-Nan Chu (Representative of President Enterprises (China) Investment Co., Ltd.)

NTD202,360,000 49.00%

Fong-Shih Hsiao, Chi-Chi Mon (Representative of Wuhan President Enterprises Food Co., Ltd.)

NTD210,620,000 51.00%

President Chi-Chi Mon

Kunshan President Enterprises Food Co., Ltd. Chairman Chang-Sheng Lin (Representative of President Enterprises (China) Investment Co., Ltd.) NTD1,514,260,000 100.00%

Director Po-Ming Yen, Lung-Yi Lin, Wu-Chung Lin, Chia-Heng Chen (Representative of President Enterprises (China) Investment Co., Ltd.)

NTD1,514,260,000 100.00%

President Fu-Chang Wu

Guangzhou Wang Sheng Industrial Co., Ltd. Chairman Kuang-Nan Chu (Representative of Kunshan President Enterprises Food Co., Ltd.) NTD41,580,000 50.00%

Director I-Ting Wu, Wen-Chieh Lee (Representative of Wuhan President Enterprises Food Co., Ltd.) NTD41,580,000 50.00%

Supervisor Chuang-Wei Yu (Representative of Kunshan President Enterprises Food Co., Ltd.) NTD41,580,000 50.00%

Tsung-Hsiu Lee (Representative of Wuhan President Enterprises Food Co., Ltd.) NTD41,580,000 50.00%

President Kuang-Nan Chu

Qingdao President Feed & Livestock Co., Ltd. Chairman Chang-Sheng Lin (Representative of President Enterprises (China) Investment Co., Ltd.) NTD412,980,000 80.00%

Director Po-Ming Yen, Lung-Yi Lin, Kuang-Nan Chu, Chao Yang, Jia-Chuan Wang, Wen-Shu Lee, Ping-Liang Lai (Representative of President Enterprises (China) Investment Co., Ltd.)

NTD412,980,000 80.00%

Moon-Tsung Tsia (Representative of Excellent Investment Co., Ltd.) NTD103,245,000 20.00%

President Wen-Shu Lee

Shenyang President Enterprises Co., Ltd. Chairman Chang-Sheng Lin (Representative of President Enterprises (China) Investment Co., Ltd.) NTD684,858,000 100.00%

Director Po-Ming Yen, Lung-Yi Lin, Kuang-Nan Chu, Wu-Chung Lin (Representative of President Enterprises (China) Investment Co., Ltd.)

NTD684,858,000 100.00%

President Kun-Fu Tsai

Hefei President Enterprises Co., Ltd. Chairman Chang-Sheng Lin (Representative of President Enterprises (China) Investment Co., Ltd.) NTD344,150,000 100.00%

Director Po-Ming Yen, Lung-Yi Lin, Kuang-Nan Chu, Wu-Chung Lin (Representative of President Enterprises (China) Investment Co., Ltd.)

NTD344,150,000 100.00%


Harbin President Enterprises Co., Ltd. Chairman Chang-Sheng Lin (Representative of President Enterprises (China) Investment Co., Ltd.) NTD516,225,000 100.00%

Director Po-Ming Yen, Lung-Yi Lin, Kuang-Nan Chu (Representative of President Enterprises (China) Investment Co., Ltd.)

NTD516,225,000 100.00%

President Kun-Fu Tsai




Shareholding

Shares %

Changjiagang President Nisshin Food Co., Ltd.

Chairman Chang-Sheng Lin (Representative of Cayman President Holdings Ltd.) NTD351,033,000 60.00%

Vice Chairman Ogome Kazuo (Representative of Nisshin Oil Mills Corp.) NTD175,517,000 30.00%

Director Ichisugi Yoshihumi, Suzuki Shinichirou (Representative of Nisshin Oil Mills Corp.) NTD175,517,000 30.00%

Lung-Yi Lin, Kuang-Nan Chu, Chao Yang, Liang- Feng Wu, Chen-Nan Chen (Representative of Cayman President Holdings Ltd.)

NTD351,033,000 60.00%

Fukuoka Kunihide (Representative of Mitsubishi Corp.) NTD58,505,000 10.00%

President Chen-Nan Chen

San Tong Wanfu (Qingdao) Food Co., Ltd. Chairman Fu-Liang Shi (Representative of Wanfu (Qingdao) Food Co., Ltd.) NTD165,192,000 40.00%

Director Po- Ming Yen, Kuang-Nan Chu, Chao Yang (Representative of Qingdao President Feed & Livestock Co., Ltd.)

NTD123,894,000 30.00%

Yokoyama Takashi, Okada Yasuki, Suzuki Tsuneo (Representative of Mitsui Co., Ltd.) NTD123,894,000 30.00%

Zhu-Rong Li, Yan Li, Guo-Liang Zhao( Represent of Wanfu (Qingdao) Food Co., Ltd.) NTD165,192,000 40.00%

President Yu-Po Tsai

Zhengzhou President Enterprises Co., Ltd. Chairman Chang-Sheng Lin(Representative of President Enterprises (China) Investment Co., Ltd.) NTD 206,490,000 100.00%

Director Po- Ming Yen, Lung-Yi Lin, Kuang-Nan Chu, Wu-Chung Lin (Representative of President Enterprises (China) Investment Co., Ltd.)

NTD 206,490,000 100.00%


Uni-President International (HK) Co., Ltd. Director Lung-Yi Lin, Hong-Ping Lee, Chih-Hsien Lo (Representative of Cayman President Holdings Ltd.)

6,000,000 100.00%

President International Trade & Investment Corp.

Director Chang-Sheng Lin (Representative of Uni-President Enterprises Corp.) 45,012,200 100.00%

Tianjing President International Food Co., Ltd. Chairman Chang-Sheng Lin (Representative of President International Trade & Investment Corp.) NTD428,466,000 100.00%

Director Po- Ming Yen, Lung-Yi Lin, Chih-Hsien Lo, Lung-Chung Kuo (Representative of President International Trade & Investment Corp.)

NTD428,466,000 100.00%

President Lung-Chung Kuo

Shanghai President International Food Co., Ltd.

Chairman Chang-Sheng Lin (Representative of President International Trade & Investment Corp.) NTD447,395,000 100.00%

Director Po-Ming Yen, Kuang-Nan Chu, Sheng-Chi Chang, Wang-Shou Wei(Representative of President International Trade & Investment Corp.)

NTD447,395,000 100.00%

President Ching-Mao Chou

Uni-President (U.S.A.), Inc. Chairman Chang-Sheng Lin (Representative of President International Trade & Investment Corp.) 150,000 100.00%

Director Ping-Chih Wu, Mao-Shen Liu (Representative of President International Trade & Investment Corp.)

150,000 100.00%

President Mao-Shen Liu

Kai Yu Investment Co., Ltd. Chairman Chin-Yen Kao (Representative of Uni-President Enterprises Corp.) 432,205,428 100.00%

Director Chang-Sheng Lin, Lung-Yi Lin (Representative of Uni-President Enterprises Corp.) 432,205,428 100.00%

Supervisor Chien-Li Yin (Representative of Uni-President Enterprises Corp.) 432,205,428 100.00%

President Chang-Sheng Lin

Tung Ang Enterprises Corp. Chairman Wen-Lung Yang (Representative of Kai Yu Investment Co., Ltd.) 1,800,000 60.00%

Director Po-Rong Yen, Ying-Chang Yu (Representative of Kai Yu Investment Co., Ltd.) 1,800,000 60.00%

P-Jen Lai, Wu-Jen Kuo (Representative of Ton Yi Industrial Corp.) 1,200,000 40.00%

Supervisor Po-Hsun Yang (Representative of Kai Yu Investment Co., Ltd.) 1,800,000 60.00%

Feng-Fu Chen (Representative of Ton Yi Industrial Corp.) 1,200,000 40.00%




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Shareholding

Shares %

Uni-President Vender Corp. Chairman Wen-Lung Yang (Representative of Kai Yu Investment Co., Ltd.) 2,500,000 100.00%

Director Chih-Hsien Lo, Po-Rong Yen, Wen-Pin Chen, Chien-Li Yin (Representative of Kai Yu Investment Co., Ltd.)

2,500,000 100.00%

Supervisor Po-Hsun Yang (Representative of Kai Yu Investment Co., Ltd.) 2,500,000 100.00%

President Wen-Pin Chen

Kai Yu (BVI) Investment Co., Ltd. Director Chin-Yen Kao (Representative of Kai Yu Investment Co., Ltd.) 53,278,300 100.00%

Shanghai Songjiang President Enterprises Co., Ltd.

Chairman Chang-Sheng Lin(Representative of Kai Yu (BVI) Investment Co., Ltd) NTD275,320,000 100.00%

Director Po-Ming Yen, Lung-Yi Lin, Kuang-Nan Chu, Jia-Chuan Wang, Ching-Mao Chou(Representative of Kai Yu (BVI) Investment Co., Ltd.)

NTD275,320,000 100.00%

President Ching-Mao Chou

Fuzhou President Enterprises Co., Ltd. Chairman Chang-Sheng Lin (Representative of Kai Yu (BVI) Investment Co., Ltd.) NTD344,150,000 100.00%

Director Po-Ming Yen, Lung-Yi Lin, Kuang-Nan Chu, Sheng-Chi Chang(Representative of Kai Yu (BVI) Investment Co., Ltd.)

NTD344,150,000 100.00%

President I-Ting Wu


Chairman Chang-Sheng Lin (Representative of Kai Yu (BVI) Investment Co., Ltd.) NTD395,772,000 100.00%

Director Po-Ming Yen, Lung-Yi Lin, Kuang-Nan Chu, Wu-Chung Lin, Chun-Chung Lee(Representative of Kai Yu (BVI) Investment Co., Ltd.)

NTD395,772,000 100.00%

President Chun-Chung Lee

President Coffee (Cayman) Holdings Ltd. Chairman Chang-Sheng Lin (Representative of Kai Yu(BVI)Investment Co., Ltd.) 1,200,000 20.00%

Director Chung-Jen Hsu, K.Y. John Hsu (Representative of PCS (BVI) Holdings Ltd.) 1,800,000 30.00%

Man Yiu Kwong Pedr, Orin Clayton Smith, Christine Helen Day (Representative of Starbucks Coffee International Corp.)

3,000,000 50.00%

Shanghai President Coffee Co., Ltd. Chairman Chang-Sheng Lin (Representative of President Coffee (Cayman) Holdings Ltd.) USD4,000,000 100.00%

Director Chung-Jen Hsu, Jia-Su Zhong, Man Yiu Kwong Pedr, Orin Clayton Smith, Christine Helen Day (Representative of President Coffee (Cayman) Holdings Ltd.)

USD4,000,000 100.00%

President K.Y John Hsu

Century Quick Service Restaurant Corp. Chairman A-Hua Deng 27,300 0.08%

Director Chang-Sheng Lin, Lung-Yi Lin, Xian-Yan Huang, Fu-Shan Yang (Representative of Kai Yu Investment Co., Ltd.)

20,475,000 60.00%

Chung-Jen Hsu, Chien-Nan Hsieh (Representative of President Chain Store Corp.) 6,825,000 20.00%

Wen-Lung Tseng 13,650 0.04%

Shu-Hsin Liu 1,365,000 4.00%

Supervisor Chien-Li Yin (Representative of Kai Yu Investment Co., Ltd.) 20,475,000 60.00%

President Kun-Lin Huang

Nanlien International Corp. Chairman Tong-Liang Lee (Representative of Uni-President Enterprises Corp.) 99,999,380 99.99%

Director Chang-Sheng Lin, Chih-Hsien Lo, Chung-Jen Hsu, Xian-Yan Haung, Ju-Ken Tu, Lung-Yi Lin (Representative of Uni-President Enterprises Corp.)

99,999,380 99.99%

Supervisor Chong-Ming Su(Representative of Uni-President Enterprises Corp.) 99,999,380 99.99%

President Ju-Ken Tu

Nella Ltd. Chairman Tong-Liang Lee (Representative of Nanlien International Corp.) 1,000 100.00%

Director Ju-Ken Tu (Representative of Nanlien International Corp.) 1,000 100.00%

President Qi-Quang Chang

Cayman Nanlien Holding Ltd. Director Tong-Liang Lee, Ju-Ken Tu (Representative of Nanlien International Corp.) 4,010,000 100.00%




Shareholding

Shares %

Lien Bai Enterprises Corp. Chairman Ju-Ken Tu (Representative of Nanlien International Corp.) 8,000,000 100.00%

Director Su-Chuan Wu, Ke-Hsiu Huang (Representative of Nanlien International Corp.) 8,000,000 100.00%

Supervisor Jian Xiao (Representative of Nanlien International Corp.) 8,000,000 100.00%

President Ke-Hsiu Huang

Lien Song Enterprises Corp. Chairman Ju-Ken Tu (Representative of Nanlien International Corp.) 6,500,000 100.00%



President Cheng-Pin Lin

Lien You Enterprises Corp. Chairman Ju-Ken Tu (Representative of Nanlien International Corp.) 1,700,000 100.00%



President Da-Qin Qng

Lien Lu Enterprises Corp. Chairman Ke-Hsiu Huang (Representative of Nanlien International Corp.) 5,000,000 100.00%

Director Po-Rong Yen, Wen-Long Yang, Qi-Quang Chang (Representative of Nanlien International Corp.)

5,000,000 100.00%

Supervisor Jing-Ming Tsai (Representative of Nanlien International Corp.) 5,000,000 100.00%

President Qi-Quang Chang

Union Chinese Corp. Chairman Tong-Liang Lee 900,000 7.50%

Director Chang-Sheng Lin, Ju-Ken Tu (Representative of Nanlien International Corp.) 9,657,600 80.48%

Po-Rong Yen (Representative of Chang Kuen Construction Corp.) 720,000 6.00%

Supervisor Jin-Ming Tsai (Representative of Nanlien International Corp.) 9,657,600 80.48%

President Wei-De Shen

Wei Lien Enterprises Corp. Chairman Ju-Ken Tu (Representative of Nanlien International Corp.) 500,000 100.00%

Director Su-Chuan Wu, Chin-Ming Feng (Representative of Nanlien International Corp.) 500,000 100.00%

Supervisor Jing-Ming Tsai (Representative of Nanlien International Corp.) 500,000 100.00%

President Ju-Ken Tu

Uni-President Auto Accessories Corp. Chairman Tong-Liang Lee (Representative of Nanlien International Corp.) 2,500,000 100.00%

Director Ju-Ken Tu, Jing-Ming Tsai, Wen-Bin Liao (Representative of Nanlien International Corp.) 2,500,000 100.00%


President Jing-Ming Tsai

Xin Sheng Food Corp. Chairman Hong-Ping Lee (Representative of Nanlien International Corp.) 377,175 50.29%

Director Pi-Hui Lin 14,250 1.9%

Rui-Lin Hong 60,375 8.05%

Jing-Ming Tsai (Representative of Nanlien International Corp.) 377,175 50.29%

Supervisor Quion-Hua Chiu 27,825 3.71%

President Xian-Tang Fang

Xian Jin Food Corp. Chairman Jun-Wei Xiao (Representative of Nanlien International Corp.) 400,000 80.00%

Director Rong-Man Wu, Chao-Kai Huang (Representative of Nanlien International Corp.) 400,000 80.00%

Kuo-Shung Hsu 2,000 0.40%

Supervisor Jing-Ming Tsai (Representative of Nanlien International Corp.) 400,000 80.00%

President Mao-Lin Gao




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Shareholding

Shares %

Tung Huang Enterprises Corp. Chairman Hong-Ping Lee (Representative of Nanlien International Corp.) 420,000 70.00%

Director Xiu-Ping Hu 40,000 6.67%

Ri-Sheng Dai, Ming-Gan Shen, Yu-Ming Huang, Jin-Ming Fang (Representative of Nanlien International Corp.)

420,000 70.00%

Supervisor Shu-May Huang 100,000 16.67%

President Wen-Jin Shen

Hua Zuo Corp. Chairman Chin-Hao Huang 320,000 40.00%

Director Feng-Yi Mao, Zhi-Hong Su, Shi-Kau Tsai, Wen-Bin Liao (Representative of Nanlien International Corp. )

480,000 60.00%

Xin-Fang Wei 1 -

Supervisor Ming-Guo Chen (Representative of Nanlien International Corp.) 480,000 60.00%

President Chang-Chang Wu

Hui Sheng Enterprise Corp. Chairman Zheng-De Lin (Representative of Nanlien International Corp.) 1,200,000 100.00%

Director Jia-Xing Tian, Qi-Quang Zhang, Zhi-Hong Su (Representative of Nanlien International Corp.)

1,200,000 100.00%

Supervisor Qing-De Tsai (Representative of Nanlien International Corp.) 1,200,000 100.00%

President Zheng-An Lee

Tung Chang Enterprises Corp. Chairman Li-Li Guo 209,995 30.00%

Director Qi-Quang Zhang (Representative of Nanlien International Corp.) 490,000 70.00%

Shui-Lin Yang 1 -

Supervisor Feng-Yi Mao (Representative of Nanlien International Corp.) 490,000 70.00%

President Wei-Xun Liu

Tung Shen Corp. Chairman Jing-Hao Chen (Representative of Nanlien International Corp.) 1,599,976 100.00%

Director Wen-Bin Liao, Rui-Zhong Chen (Representative of Nanlien International Corp.) 1,599,976 100.00%

Supervisor Shi-Cheng Wang (Representative of Nanlien International Corp.) 1,599,976 100.00%

President Xin-Da Lee

Jin Yu Enterprises Corp. Chairman Ri-Sheng Dai (Representative of Nanlien International Corp.) 1,080,000 90.00%

Director Wen-Bin Liao, Bor-Shiran Wu (Representative of Nanlien International Corp.) 1,080,000 90.00%

Supervisor Wen-Zhi Zhuang 120,000 10.00%

President Qiu-Xiang Yang

Lien Yu Enterprises Corp. Chairman Zheng-De Lin (Representative of Nanlien International Corp.) 1,400,000 50.91%

Director Rui-Huang Chen (Representative of Nanlien International Corp.) 1,400,000 50.91%

Te-Ji Guan 225,000 8.18%

Su-Yue Deng 250,000 9.09%

Tai-Dong Hsieh 125,000 4.55%

Supervisor Kuo-Ru Wang 93,750 3.41%

President Guo-Cheang Lin

Tung Xu Enterprises Corp. Chairman De-Xiang Wu (Representative of Nanlien International Corp. ) 425,000 85.00%

Director Kuo-Chung Shen, You-Li Su (Representative of Nanlien International Corp.) 425,000 85.00%

Supervisor Jun-Lan Zheng 75,000 15.00%

President Zhen-Xiang Xong




Shareholding

Shares %

Tung Yu Enterprise Corp. Chairman Zheng-De Lin (Representative of Nanlien International Corp. ) 5,960,000 74.50%

Director Jin-Yue Wang Zhou 200,000 2.50%

Xi-Lu Lin 1 0%

Jan-Xiang Xu 300,000 3.75%

Ju-Ken Tu (Representative of Nanlien International Corp.) 5,960,000 74.50%

Tian-Quan Zheng 300,000 3.75%

Shui-Yuan Xu 240,000 3.00%

Ming-Feng Xu 220,000 2.75%

Supervisor Jin-Zhang Wei (Representative of Nanlien International Corp.) 5,960,000 74.50%

President Bao-Han Chen

Jian Hua Enterprises Corp. Chairman Ri-Sheng Dai (Representative of Nanlien International Corp.) 610,000 61.00%

Director Cui-Xiu Xu 80,000 8.00%

Shi-Feng Pan 110,000 11.00%

Wen-Long Yang, Ke-Hsiu Huang (Representative of Nanlien International Corp.) 610,000 61.00%

Supervisor Chueng-Tai Ma 110,000 11.00%

President Jun-Lin Fu

Chao Tung Enterprises Corp. Chairman Tong-Liang Lee (Representative of Huei Tung Enterprises Corp.) 760,000 38.00%

Director Ju-Ken Tu, Jing-Ming Tsai, Po-Rong Yen (Representative of Nanlien International Corp.) 940,000 47.00%

Jian-Guo Lain (Representative of Huei Tung Enterprises Corp.) 760,000 38.00%

Supervisor Su-Duan Lee (Lian Quan Food Corp.) 100,000 5.00%

President Ming-Gang Xie

Tung Jun International Corp. Chairman Chang-Hang Zeng (Representative of Nanlien International Corp.) 12,000,000 100.00%

Director Jun-Lin Guo, Jian-Sen Shen, Yue-Zong Jiang, Qi-Quang Zhang (Representative of Nanlien International Corp. )

12,000,000 100.00%

Supervisor You-Li Su (Representative of Nanlien International Corp. ) 12,000,000 100.00%

President Jie Tang

Tung Guan Egg Corp. Chairman Reng-Feng Liang (Representative of Nanlien International Corp.) 2,000,000 100.00%

Director Yue-Zong Jiang, Jun-Lin Guo, Chang-Jian Liu, Qi-Quang Zhang (Representative of Nanlien International Corp.)

2,000,000 100.00%

Supervisor Chang-Ji Xue (Representative of Nanlien International Corp. ) 2,000,000 100.00%

President Yow-Wei Lin

Tung Shun Enterprises Corp. Chairman Chih-Hsien Lo (Representative of Nanlien International Corp.) 3,105,000 69.00%

Director Wen-Bin Lian, Chang- Ji Xue (Representative of Nanlien International Corp.) 3,105,000 69.00%

Bor-Chin Zhang 20,000 0.44%

Supervisor Zheng-Chun Huang 405,000 9.00%

President Rong-Kuang Fu

Tung Hsiang Enterprises Corp. Chairman Chih-Hsien Lo (Representative of Nanlien International Corp.) 2,295,000 51.00%

Director Tong-Liang Lee (Representative of Huei Tung Investment Corp.) 1,000,000 22.22%

Rui-Cheng Xu (Representative of Huei Tung Enterprise Corp.) 440,000 9.78%

Jian-Sheng Wei, Wen-Bin Liao (Representative of Nanlien International Corp.) 2,295,000 51.00%

Supervisor Jun-Xiang Xu 90,000 2.00%

President Yu-Rui Liu




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Shareholding

Shares %

Yuan Tai Enterprises Corp. Chairman Ming-Gan Shen (Representative of Nanlien International Corp.) 280,500 51.00%

Director Su-Zhen Yu 55,000 10.00%

Rui-Jun Lee, Juei-Hung Shao (Representative of Nanlien International Corp.) 280,500 51.00%

Zheng-Yi Kao 63,250 11.50%

Shu-Min Kao 87,250 15.86%

Supervisor Qi-Ming Chen (Representative of Nanlien International Corp.) 280,500 51.00%

President Tai-Ran Guo

Tung Yi Enterprises Corp. Chairman Ming- Gan Shen (Representative of Nanlien International Corp.) 510,000 51.00%

Director Shi-Jie Wang (Representative of Da-Jie Enterprises Corp.) 240,000 24.00%

Rui-Feng Fu (Representative of Shou-Feng Food Corp.) 250,000 25.00%

Hui-Ling Su, Jing-Ming Feng (Representative of Nanlien International Corp.) 510,000 51.00%

Supervisor Feng-Chun Chen (Representative of Nanlien International Corp. ) 510,000 51.00%

President Wen-Shing Chen

Tung Che Enterprises Corp. Chairman Rui-Zhong Chen (Representative of Nanlien International Corp. ) 2,000,000 100.00%

Director Feng-Yi Mao, Qiu-Tian Luo, Jin-Zhang Wei, Guo-Zheng Sun (Representative of Nanlien International Corp. )

2,000,000 100.00%

Supervisor Jian-Sheng Wei (Representative of Nanlien International Corp.) 2,000,000 100.00%

President Guo-Long Wang

Tung Hsiang Corp. Chairman Po-Rong Yen (Representative of Nanlien International Corp.) 8,000,000 100.00%

Director Rui-Sheng Wang, Ju-Ken Tu, Kuen-Lin Wu (Representative of Nanlien International Corp.) 8,000,000 100.00%

Supervisor Shuo-Jie Wang (Representative of Nanlien International Corp.) 8,000,000 100.00%

President Chong-Fa Chen

Tung Chu Enterprise Corp Chairman Po-Rong Yan (Representative of Nanlien International Corp.) 1,530,000 51.00%

Director Su-Rong Lee, Po-Ming Yan, Yu-Que Chen (Representative of Xin-Tung Enterprise Corp.) 623,700 20.79%

Ming-Gan Shen, Qian-Zhang Chen, Ju-Ken Tu (Representative of Nanlien International Corp.)

1,530,000 51.00%

Zheng-Yi Guo (Representative of Yuan-Xin Enterprise Corp.) 214,600 7.15%

Si-Liang Chen (Representative of Huang-Yi Enterprise Corp.) 258,600 8.62%

Supervisor Sen-Tai Lai (Representative of Lian-Ming Enterprise Corp.) 107,000 3.57%

Ri-Sheng Dai (Representative of Nanlien International Corp.) 1,530,000 51.00%

President Rui-Jun Lee

Fu Chun Enterprise Corp. Chairman Qing-Zhen Huang (Representative of Nanlien International Corp.) 300,000 100.00%

Director Fang-Rui Zhang, Zheng-Yi Chen, Rui-Huang Chen (Representative of Nanlien International Corp. )

300,000 100.00%

Supervisor Huan-Zhang Chen (Representative of Nanlien International Corp.) 300,000 100.00%

President Jin-Xiang Chen

Chieh Yi Enterprise Corp. Chairman Zhao-Kai Huang (Representative of Nanlien International Corp.) 400,000 100.00%

Director Fang-Rui Zhang, Long-Lin Zhuang, Jing-Ming Feng (Representative of Nanlien International Corp.)

400,000 100.00%

Supervisor Zhi-Hong Guo (Representative of Union Chinese Corp.) 400,000 100.00%

President Yu-Chen Lin




Shareholding

Shares %

Chi Fu Enterprise Corp. Chairman Chin-Ming Feng (Representative of Union Chinese Corp.) 2,200,000 100.00%

Director Ju-Ken Tu, Su-Chuan Wu, Wei-De Shen (Representative of Union Chinese Corp.) 2,200,000 100.00%

Supervisor Jing-Ming Tsai (Representative of Union Chinese Corp.) 2,200,000 100.00%

Tunnel International Marketing Corp. Director Tong-Liang Lee, Ju-Ken Tu (Representative of Nella Ltd.) 20,000 100.00%

Tunnel 88 International Corp. Director Tong-Liang Lee, Ju-Ken Tu (Representative of Nella Ltd.) 20,000 100.00%

President Chain Store Corp. Chairman Chin-Yen Kao (Representative of Uni-President Enterprises Corp.) 388,407,895 45.24%

Director Chang-Sheng Lin, Lung-Yi Lin, Chung-Jen Hsu, Xian-Yan Huang, Chih-Hsien Lo, Wen-Lung Yang (Representative of Uni-President Enterprises Corp.)

388,407,895 45.24%

Jung Tsuei (Representative of Far Eastern Air Transport Corp.) 111,200 0.01%

Tsing-Yuan Huang (Representative of Wei Heng Co., Ltd.) 1,662,418 0.19%

Supervisor Te-Cheng Tu (Representative of Uni-President Enterprises Corp.) 388,407,895 45.24%

President Chung-Jen Hsu 19,230

PCS (BVI) Holdings Ltd. Chairman Chin-Yen Kao (Representative of President Chain Store Corp.) 46,405,437 100.00%

PCS (Labuan) Holdings Ltd. Director PCS (BVI) Holdings Ltd. 20,684,321 100.00%

Philippine Seven Corp. Chairman Vicente T. Pationo 24,380,550 10.28%

Director Chung-Jen Hsu, Yong-Siang Ye, Chien-Nan Hsieh, Rui-Tang Chen, Fu-Tang Chen, Kuo-Hsuan Wu (Representative of PCS (Labuan) Holdings Ltd.)

119,575,008 50.40%

Diana P. Agular (Representative of Asian Holdings Corp.) 29,208,750 12.31%

Jorge L. Araneta (Representative of Progressive Development Corp.) 20,163,080 8.50%

Manuel U. Agustines (Representative of Agus Philippine Holdings Corp.) 4,912,178 2.07%

Alfredo C. Ramos (Representative of Anglo Philippine Holdings Corp.) 4,333,380 1.83%

President Yong-Siang Ye 1 -

Convenience Distribution Inc. Chairman Yong-Siang Ye (Representative of Philippine Seven Corp.) 3,808,000 100.00%

Director Jose Victor P. Pationo, Chun-Pei Liu, Eduardo P.Bataclan, Ma. Victoria Cruz (Representative of Philippine Seven Corp.)

3,808,000 100.00%

President Jose Victor P. Pationo

President Drugstore Business Corp. Chairman Chung-Jen Hsu (Representative of President Chain Store Corp.) 19,800,000 100.00%

Director Lung-Yi Lin, Du-Chuan Tsai, Chien-Nan Hsieh (Representatives of President Chain Store Corp.)

19,800,000 100.00%

Supervisor Wen-Ching Lin (Representative of President Chain Store Corp.) 19,800,000 100.00%

President Du-Chuan Tsai

President Direct Marketing Corp. Chairman Chung-Jen Hsu (Representative of President Chain Store Corp.) 7,000,000 100.00%

Director Chang-Sheng Lin, Rui-Tang Chen, Nan-Pei Lai (Representative of President Chain Store Corp.)

7,000,000 100.00%

Supervisor Fu-Tang Chen (Representative of President Chain Store Corp.) 7,000,000 100.00%

President Nan-Pei Lai

Rui Hui Investment Corp. Chairman Chung-Jen Hsu (Representative of President Chain Store Corp.) 85,303,700 100.00%

Director Chien-Nan Hsieh, Kuo-Hsuan Wu (Representative of President Chain Store Corp.) 85,303,700 100.00%

Supervisor Chien-Li Huang (Representative of President Chain Store Corp.) 85,303,700 100.00%

President Chung-Jen Hsu




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Shareholding

Shares %

Capital Inventory Service Corp. Chairman Chung-Jen Hsu (Representative of President Chain Store Corp.) 4,549,380 100.00%

Director Chien-Nan Hsieh, Kuo-Hsuan Wu, Wen-Kuei Wang, Mao-Chia Chung (Representative of President Chain Store Corp.)

4,549,380 100.00%


President Wen-Kuei Wang

Duskin Serve Taiwan Co., Ltd. Chairman Chung-Jen Hsu (Representative of President Chain Store Corp.) 15,299,995 51.00%

Director Chien-Nan Hsieh, Chien-Li Huang, Rui-Tang Chen (Representative of President Chain Store Corp.)

15,299,995 51.00%

Yoichi Ito, Komai Teruo, Okai Kazuo, Ohkuma Keisuke (Representative of Duskin Co., Ltd.)

14,700,000 49.00%


Hiroshi Yamagishi (Representative of Duskin Co., Ltd.) 14,700,000 49.00%

President Okai Kazuo

Books.com Co., Ltd. Chairman Chung-Jen Hsu (Representative of President Chain Store Corp.) 10,000,000 50.03%

Director Rui-Tang Chen, Po-Chung Hsieh, Yen-Sen Yang (Representative of President Chain Store Corp.)

10,000,000 50.03%

Hong-Chih Chang (Representative of Clever Investment Co., Ltd.) 363,000 1.82%

Pi-Jung Lin 2,081,000 10.41%

Terry Chang 1,579,000 7.93%


Li-Ching Lin(Representative of Clever Investment Co., Ltd.) 363,000 1.82%

President Terry Chang 1,579,000 7.93%

Wisdom Distribution Service Corp. Chairman Chung-Jen Hsu (Representative of President Chain Store Corp.) 9,432,540 100.00%

Director Nan-Pei Lai, Po-Chung Hsieh, Rui-Tang Chen (Representative of President Chain Store Corp.)

9,432,540 100.00%


President Po-Chung Hsieh

President Information Corp. Chairman Chung-Jen Hsu (Representative of President Chain Store Corp.) 10,626,000 70.00%

Director Chien-Nan Hsieh, Nan-Pei Lai, Fukami Yasuo (Representative of President Chain Store Corp.)

10,626,000 70.00%

Xian-Yan Huang, Mu-Shing Fang (Representative of Uni-President Enterprises Corp.) 4,554,000 30.00%

Supervisor Mao-Chia Chung (Representative of President Chain Store Corp.) 10,626,000 70.00%

President Chien-Nan Hsieh

President Coffee Corp Chairman Chang-Sheng Lin (Representative of Uni-President Enterprises Corp.) 3,960,000 20.00%

Director Xian-Yan Huang (Representative of Uni-President Enterprises Corp.) 3,960,000 20.00%

Chung-Jen Hsu (Representative of President Chain Store Corp.) 5,940,000 30.00%

Man Yiu Kwong Pedro, Orin Clayton Smith, Christine Helen Day (Representative of Starbucks Coffee International Corp.)

9,990,000 50.00%

Supervisor Te-Cheng Tu (Representative of Uni-President Enterprises Corp.) 3,960,000 20.00%

Histon (Representative of Starbucks Coffee International Corp.) 9,990,000 50.00%

President K.Y. John Hsu




Shareholding

Shares %

Mech-President Corp. Chairman Yi-Liang Fang 141,251 0.31%


Chung-Jen Hsu, Chien-Nan Hsieh, Kuo-Hsuan Wu, Ming-Jao Liu, (Representative of President Chain Store Corp.)

28,253,850 62.95%

Sung-Yi Shen (Representative of Da Ya Cable Corp.) 3,116,626 6.94


President Ming-Jao Liu 176,546 0.39%

Safety Elevator Corp. Chairman Chang-Ming Wong (Representative of Mech-President Corp.) 500,000 100.00%

Director Ming-Jao Liu, Yin-Yu Wang, Long-Cai Huang, Pin-Chang Chang, Yu- Ren Syue (Representative of Mech-President Corp.)

500,000 100.00%

Supervisor Chun-Yi Cheng (Representative of Mech-President Corp.) 500,000 100.00%

President Chang-Ming Wong

Shanghai Mech-President Co., Ltd. Chairman Ming-Jao Liu (Representative of Mech-President (BVI) Corp.) NTD86,762,000 100.00%

Director Jung-Tsai Huang, Jyun-Yi Cheng (Representative of Mech-President (BVI) Corp.) NTD86,762,000 100.00%

President Ming-Jao Liu

Mech-president (BVI) Corp. Director Ming-Jao Liu (Representative of Mech-president Corp.) 2,500,000 100.00%

Tung Jim Corp. Chairman Yi-Liang Fang (Representative of Mech-President Corp.) 900,000 60.00%

Director Ming-Tsung Chen, Ming-Jao Liu (Representative of Mech-President Corp.) 900,000 60.00%

Ting-Song Tsai 375,000 25.00%

Shui-Qian Lin 225,000 15.00%

Supervisor Chun-Yi Cheng (Representative of Mech-President Corp.) 900,000 60.00%

Uni-President Cold Corp. Chairman Lung-Yi Lin (Representative of Uni-President Enterprises Corp.) 6,521,090 20.00%

Director Chih-Hsien Lo (Representative of Uni-President Enterprises Corp.) 6,521,090 20.00%


Chung-Jen Hsu, Chien-Nan Hsieh, Dong-Ho Chen (Representative of President Chain Store Corp.)

19,563,272 60.00%

Supervisor Rui-Tang Chen (Representative of President Chain Store Corp.) 19,563,272 60.00%

President Dong-Ho Chen

President Transnet Corp. Chairman Chang-Sheng Lin (Representative of Uni-President Enterprises Corp.) 20,000,000 20.00%

Director Lung-Yi Lin (Representative of Uni-President Enterprises Corp.) 20,000,000 20.00%

Chung-Jen Hsu, Chien-Li Huang, Chien-Nan Hsieh, Jin-Gu Hung (Representative of President Chain Store Corp.)

80,000,000 80.00%


President Chien-Li Huang

Uni-President Oven Bakery Corp. Chairman Chang-Sheng Lin (Representative of Uni-President Enterprises Corp.) 3,600,000 40.00%

Director Chung-Jen Hsu, Chien-Nan Hsieh, Arther Cheng (Representative of President Chain Store Corp.)

5,400,000 60.00%

Lung-Yi Lin, Xian-Yan Huang (Representative of Uni-President Enterprises Corp.) 3,600,000 40.00%


President Arther Cheng




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Shareholding

Shares %

President Engineering Technology Corp. Chairman Chung-Jen Hsu (Representative of President Chain Store Corp.) 3,499,995 70.00%

Director Chien-Nan Hsieh, Kuo-Hsuan Wu, Chien-Li Huang, Yokomuro Isao (Representative of President Chain Store Corp.)

3,499,995 70.00%

Akahashi Hajime, Tadenuma Akira (Representative of Sanden Corp.) 1,500,000 30.00%


Tsukada Masataka (Representative of Sanden Corp.) 1,500,000 30.00%

President Yokomuro Isao

President Musashino Corp. Chairman Chung-Jen Hsu (Representative of President Chain Store Corp.) 31,374,000 60.00%

Director Kuo-Hsuan Wu, Dong-Ho Chen, Chien-Li Huang (Representative of President Chain Store Corp.)

31,374,000 60.00%

Yukio Kobayashi, Kumagai Junichi (Representative of Musashino Corp.) 15,687,000 30.00%

Chang-Chi Lin (Representative of Asia Frozen Food Corp.) 5,229,000 10.00%


Yasuda Novayuki (Representative of Musashino Corp.) 15,687,000 30.00%

President Kumagai Junichi

Uni-President Takashimaya Co., Ltd. Chairman Chin-Yen Kao (Representative of President Chain Store Corp.) 12,500,000 50.00%

Director Chang-Sheng Lin, Chung-Jen Hsu, Chih-Chung Ye (Representative of President Chain Store Corp.)

12,500,000 50.00%

Asauchi Tsutomu, Sho Masayoshi, Shinichi Hagiwara, Matsuoka Joji (Representative of Takashimaya Co., Ltd.)

12,500,000 50.00%


Onishi Norio (Representative of Takashimaya Co., Ltd.) 12,500,000 50.00%

President Shinichi Hagiwara -

President Collect Service Co., Ltd. Chairman Chang-Sheng Lin (Representative of President Chain Store Corp.) 1,050,000 70.00%

Director Kuniyuki Koshijima, Kawada Hiroshi (Representative of Yamato Transport Co., Ltd.) 450,000 30.00%

Chung-Jen Hsu, Chien-Li Huang, Chien-Nan Hsieh, Jin-Gu Hung (Representative of President Chain Store Corp.)

1,050,000 70.00%

Supervisor Toshizo Kurisu (Representative of Yamato Transport Co., Ltd.) 450,000 30.00%

Lung-Yi Lin (Representative of President Chain Store Corp.) 1,050,000 70.00%

President Chien-Li Huang

Uni-President Yellow Hat Corp. Chairman Chung-Jen Hsu (Representative of President Chain Store Corp.) 5,700,000 30.00%

Director M. J. Liou, Chien-Nan Hsieh (Representative of President Chain Store Corp.) 5,700,000 30.00%

Ju-Ken Tu(Representative of Nanlien International Corp) 3,799,999 20.00%

Hiroshi Ninomiya, Shimizu Katsutaro (Representative of Yellow Hat) 5,795,000 30.50%

Takeyoshi Ide, Osamu Onuma (Representative of Itochu Corp.) 2,755,000 14.50%

Supervisor Tokutomi Akira (Representative of Yellow Hat) 5,795,000 30.50%

Jing-Ming Tsai (Representative of Nanlien International Corp) 3,799,999 20.00%

President Shimizu Katsutaro




Shareholding

Shares %

Bank Pro E-Service Technology Co., Ltd. Chairman Chung-Jen Hsu (Representative of President Chain Store Corp.) 7,200,000 53.33%

Director Chien-Nan Hsieh, Zhang-Zheng Cheng (Representative of President Chain Store Corp.) 7,200,000 53.33%

Xian-Yan Huang (Representative of Uni-President Enterprises Corp.) 675,000 5.00%

Ze-Li Chen (Representative of Financial Information Corp.) 1,800,000 13.33%

Xiao-Xuao Song (Representative of Bank of Taiwan.) 450,000 3.33%

Jia-Zhong Chen (Representative of E.SUN Financial Holding Co., Ltd) 450,000 3.33%

Supervisor Jia-Hua Chang (Representative of President Chain Store Corp.) 7,200,000 53.33%

Jing-Da Mao (Representative of Financial Information Corp.) 1,800,000 13.33%

President Zhang-Zheng Chen

Muji (Taiwan) Co., Ltd. Chairman Chung-Jen Hsu (Representative of President Chain Store Corp.) 4,100,000 41.00%

DirectorDu-Chuan Tsai, Chin-Pen Hsu (Representative of President Chain Store Corp.) 4,100,000 41.00%

Chih-Hsien Lo (Representative of Uni-President Enterprises Corp.) 1,000,000 10.00%

Huruda Masanobu, Azami Hiroyoshi (Representative of Ryohin Keikaku Co., Ltd.) 3,900,000 39.00%

Yoshida Ziro (Representative of Mitsubishi Corp.) 1,000,000 10.00%

Supervisor Yen-Sen Yang (Representative of President Chain Store Corp.) 4,100,000 41.00%

Mitsuki Hiroshi (Representative of Mitsubishi Corp.) 1,000,000 10.00%

President Du-Chuan Tsai

President Asian Enterprises Inc. Director Jack Lee (Representative of President Canada Syndicates Inc.) 3,180 49.99%

Vivian L.J. Lin (Representative of Uni-President Enterprises Corp.) 3,180 49.99%

President Jack Lee

President Hotel Inc. Director/President Jack Lee (Representative of President Asian Enterprises Inc.) NTD2,500 100.00%

President Canada Construction Inc. Director/President Jack Lee (Representative of President Asian Enterprises Inc.) NTD2,500 100.00%

President Canada Real Estate Services Inc. Director/President Jack Lee (Representative of President Asian Enterprises Inc.) NTD2,500 100.00%

555053 British Columbia Ltd. Director/President Jack Lee (Representative of President Asian Enterprises Inc.) - 100.00%

Ton Yi Industrial Corp. Chairman Chin-Yen Kao (Representative of Uni-President Enterprises Corp.) 685,102,310 43.34%

Vice Chairman Shing-Chi Liang (Representative of Uni-President Enterprises Corp.) 685,102,310 43.34%

Director Chang-Sheng Lin, Wen-Lung Yang (Representative of Uni-President Enterprises Corp.) 685,102,310 43.34%

Rui-Chsin Chen (Representative of China Development Industrial Bank) 62,447,657 3.95%

Keiji Kwwata (Representative of Tomen Corp.) 84,333,321 5.34%

Tao-Hiong Chen 1,247,722 0.08%

Chang-Jin Chen 4,669,734 0.30%

Huan Lai Kuo 2,461,563 0.16%

Supervisor Lung-Yi Lin (Representative of Uni-President Enterprises Corp.) 685,102,310 43.34%

Tsung-Hsien Chang 1,123,092 0.07%

President Shing-Chi Liang 4,738,122 0.30%

Tovecan Corp. Chairman Shing-Chi Liang (Representative of Ton Yi Industrial Corp.) NTD55,439,000 51.00%

Director Sen-Yuan Lin,Y. Fujii (Representative of Ton Yi Industrial Corp.) NTD55,439,000 51.00%

K.Eto (Representative of Tomen Corp.) NTD28,654,000 26.36%

Pham Khac Quynh, Nguyen Van Lai (Representative of Vietnam National Vegetable And Fruit Corporation)

NTD24,611,000 22.64%

President Y. Fujii

Cayman Ton Yi Industrial Holdings Ltd. Chairman Shing-Chi Liang (Representative of Ton Yi Industrial Corp.) NTD1,359,140,000 100.00%

Director Chih-Chung Chen, Feng-Fu Chen (Representative of Ton Yi Industrial Corp.) NTD1,359,140,000 100.00%




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Shareholding

Shares %


Chairman Shing-Chi Liang (Representative of Cayman Ton Yi Industrial Holdings Ltd.) NTD1,494,000 87.93%

Director Chih-Chung Chen (Representative of Cayman Ton Yi Industrial Holdings Ltd.) NTD1,494,000 87.93%

Pei-Lian Hu (Representative of Asian Corporation Partner Fund) NTD205,000 12.07%

Jiangsu Ton Yi Tinglate Co., Ltd. Chairman Shing-Chi Liang (Representative of Cayman Jiangsu Ton Yi Industrial Holdings Ltd.) NTD997,941,000 82.86%

Director Chih-Chung Chen, Sen-Yuan Lin, Chin-Shing Yang, Chung-Sen Lu (Representative of Cayman Jiangsu Ton Yi Industrial Holdings Ltd.)

NTD997,941,000 82.86%

Mitsuharu Sakamoto (Representative of Kawasaki Steel Corp.) NTD78,219,000 5.71%

Cayman Fujian Ton Yi Industrial Holdings Ltd. Chairman Shing-Chi Liang (Representative of Cayman Ton Yi Industrial Holdings Ltd.) NTD1,599,000 88.58%

Director Chih-Chung Chen (Representative of Cayman Ton Yi Industrial Holdings Ltd.) NTD1,599,000 88.58%

Pei-Lian Hu (Representative of Asian Corporation Partner Fund) NTD206,000 11.42%

Fujian Ton Yi Tinglate Co., Ltd. Chairman Shing-Chi Liang (Representative of Cayman Fujian Ton Yi Industrial Holdings Ltd.) NTD1,088,145,000 83.58%

Director Chih-Chung Chen, Sen-Yuan Lin, Yah-Yii Chyn (Representative of Cayman Fujian Ton Yi Industrial Holdings Ltd.)

NTD1,088,145,000 83.58%

K.Eto (Representative of Tomen Corp.) NTD112,577,00 7.66%

Chendu Ton Yi Industrial Packing Co., Ltd. Chairman Shing-Chi Liang (Representative of Cayman Ton Yi Industrial Holdings Ltd.) NTD257,205,000 100.00%

Director Sen-Yuan Lin, P-Jen Lai, Chin- Cheng Hsu, Feng-Fu Chen (Representative of Cayman Ton Yi Industrial Holdings Ltd.)

NTD257,205,000 100.00%

Wuxi Ton Yi Industrial Packing Co., Ltd. Chairman Shing-Chi Liang (Representative of Cayman Ton Yi Industrial Holdings Ltd.) NTD233,901,000 100.00%

Director Sen-Yuan Lin, P-Jen Lai, Chin-Cheng Hsu, Feng- Fu Chen (Representative of Cayman Ton Yi Industrial Holdings Ltd.)

NTD233,901,000 100.00%

Hong Kong Ton Yi Industrial Holdings Co., Ltd.

Chairman Shing-Chi Liang (Representative of Cayman Ton Yi Industrial Holdings Ltd.) NTD340,000 100.00%

Director Feng-Fu Chen (Representative of Cayman Ton Yi Industrial Holdings Ltd.) NTD340,000 100.00%

New Dawn Enterprises Ltd. Chairman Feng-Fu Chen (Representative of Ton Yi Industrial Corp.) NTD6,454,000 100.00%

President International Development Corp. Chairman Chin-Yen Kao (Representative of Uni-President Enterprises Corp.) 877,500,000 58.50%

Director Chang-Sheng Lin, Po-Ming Yen, Tong- Liang Lee, Lung-Yi Lin, Chao Yang, Te-Cheng Tu, Xian-Yan Huang, Wen-Lung Yang (Representative of Uni-President Enterprises Corp.)

877,500,000 58.50%

Kao-Huei Cheng, Po-Ming Ho (Representative of Tainan Spinning Corp.) 135,000,000 9.00%

Nan-Tien Chuang (Representative of Prince Housing & Development Corp.) 95,000,000 6.33%

Guo-Dung Lee (Representative of Universal Cement Corp.) 50,000,000 3.33%

Yi-Sheng Huang (Representative of TTET Union Corp.) 20,000,000 1.33%

Ruig-Tse Deng (Representative of Canking Investment Corp.) 20,000,000 1.33%

Chung-Ho Wu (Representative of San Shing Spinning Co., Ltd.) 15,000,000 1.00%

Chung-Jen Hsu (Representative of President Chain Store Corp.) 50,000,000 3.33%

Shing-Chi Liang (Representative of Ton Yi Industrial Corp.) 50,000,000 3.33%

Chih-Hsien Lo (Representative of Kao Chuan Investment Co., Ltd.) 20,000,000 1.33%

Chih-Chung Ye (Representative of Tung Li Investment Corp.) 20,000,000 1.33%

Yi-Sheng Lin (Representative of Nan Fan Building Corp.) 45,000,000 3.00%

Supervisor Jen-Chin Chen (Representative of Prince Housing & Development Corp.) 95,000,000 6.33%

Chien-Li Yin (Representative of Uni-President Enterprises Corp.) 877,500,000 58.50%

President Chin-Yen Kao

President(BVI) International Investment Holdings Ltd.

Director Chin-Yen Kao (Representative of President International Development Corp.) 133,026,000 100.00%

Tong Shou Investment Corp. Chairman Chin-Yen Kao (Representative of President International Development Corp.) 11,140,000 100.00%

Director Chang-Sheng Lin, Lung-Yi Lin (Representative of President International Development Corp.)

11,140,000 100.00%

Supervisor Te-Cheng Tu (Representative of President International Development Corp.) 11,140,000 100.00%




Shareholding

Shares %

Tong Cheng Investment Corp. Chairman Chin-Yen Kao (Representative of President International Development Corp.) 15,000,000 100.00%


15,000,000 100.00%


Tong Yu Investment Corp. Chairman Chin-Yen Kao (Representative of President International Development Corp.) 116,530,000 100.00%


116,530,000 100.00%


President Life Sciences Cayman Co., Ltd. Director Chin-Yen Kao (Representative of President Life Sciences Co., Ltd.) 26,814,000 100.00%

President Medical Technologies Corp. Chairman Chang-Sheng Lin(Representative of President International Development Corp.) 2,700,000 27.00%

Director Huaw-Chiu Kuo, Te-Cheng Tu (Representative of President International Development Corp.)

2,700,000 27.00%

Hua-Yang Lee, Po-Hsun Lai (Representative of President Life Sciences Co., Ltd.) 4,600,000 46.00%

Wei-De Wu, Olivia Ho (Representative of Pacifi c Republic Capital) 2,700,000 27.00%

Supervisor Chien-Li Yin (Representative of President International Development Corp.) 2,700,000 27.00%

President Huaw-Chiu Kuo

Tung Li Development Corp. Chairman Chin-Yen Kao (Representative of President International Development Corp.) 412,000 49.96%

Director Chang-Sheng Lin, Nan-Tien Chuang (Representative of President International Development Corp.)

412,000 49.96%

Supervisor Lung-Yi Lin (Representative of President International Development Corp.) 412,000 49.96%

President Chih-Chung Ye 413,000 50.04%

President Life Sciences Co., Ltd. Chairman Chang-Sheng Lin(Representative of President International Development Corp.) 165,000,000 100.00%

Supervisor Nan-Tien Chuang, Lung-Yi Lin, Hua-Yang Lee, Po-Hsun Lai, Hary W Chan (Representative of President International Development Corp.)

165,000,000 100.00%


President Po-Hsun Lai

President Biosystems Co., Ltd. Chairman Chang-Sheng Lin (Representative of President Life Sciences Co., Ltd.) 4,000,000 96.25%

Director Lung-Yi Lin, Hua-Yang Lee, Nan-Tien Chuang, Po- Hsun Lai (Representative of President Life Sciences Co., Ltd.)

4,000,000 96.25%

Shih-Yu Hsiao 300,000 3.75%


President Po-Hsun Lai

Presitex Co., Ltd. Chairman Chang-Sheng Lin (Representative of President International Development Corp.) 22,795,000 63.01%

Director Lung-Yi Lin (Representative of Kao Chuan Investment Co., Ltd.) 502,000 1.39%

Ling-Mei Chen (Representative of Jia Ke Co., Ltd.) 884,000 2.45%

Xi-Jia Zhang (Representative of Jia Ding International Corp.) 884,000 2.45%

Chin-Yen Kao, Yu He (Representative of Latin America Development Co., Ltd.) 8,760,000 24.21%

Ming-Hui Chen (Representative of Hosing Clothing Co., Ltd.) 1,320,000 3.65%


Tong-Liang Lee (Representative of Latin America Development Co., Ltd.) 8,760,000 24.21%

Yong-Sen Wu (Representative of Jia Ding International Corp.) 884,000 2.45%




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Shareholding

Shares %

G-Advanced Semiconductor Technology Corp. Chairman Te-Cheng Tu (Representative of President International Development Corp.) 10,799,000 54.54%

Director Ging-Zong Zhong, Yi-Jin Lee (Representative of President International Development Corp.)

10,799,000 54.54%

Ming-Ren Xu (Representative Chuan Mou Investment Corp.) 4,418,000 22.32%

Rui-Jing Lin (Representative of Compal Electronics Inc.) 3,599,000 18.18%

Supervisor Shi-Ji Chen (Representative Chuan Mou Investment Corp.) 4,418,000 22.32%

Z-Kat Asia Co., Ltd. Chairman Po-Hsun Lai (Representative of President Life Sciences Co., Ltd.) 300,000 100.00%

Director Te-Cheng Tu, Zhi-Yi Lin (Representative of President Life Sciences Co., Ltd.) 300,000 100.00%

Supervisor Zhi-Jing Xu (Representative of President Life Sciences Co., Ltd.) 300,000 100.00%

President Po-Hsun Lai (Representative of President Life Sciences Co., Ltd.)

Protein Institute Inc. Chairman Dr. Por Lai (Representative of President Life Sciences Cayman Co., Ltd.) 3,700,000 70.88%

Director Dr. Rowen Chang 500,000 9.58%

Dr. F. Murad 100,000 1.92%

President Natural Industrial Corp. Chairman Chang-Sheng Lin (Representative of Uni-President Enterprises Corp.) 8,981,995 74.85%

Director Ku-Jou Tsai, Hua-Yang Lee, Rui-Tang Chen, Du-Chuan Tsai, Xian-Yan Huang, Chin-Yan Hsu (Representative of Uni-President Enterprises Corp.)

8,981,995 74.85%

Sasaki Ryuichi, Hashimoto Yukio (Representative of Naturally Yours Co., Ltd.) 1,350,000 11.25%

Tokue Shinsuke (Representative of Mitsubishi Corp.) 960,000 8.00%


Okumura Toshiyuki (Representative of Mitsubishi Corp.) 960,000 8.00%

President Sasaki Ryuichi

President Baseball Team Corp. Chairman Chang-Sheng Lin (Representative of Uni-President Enterprises Corp.) 30,000 100.00%

Vice Chairman Tong-Liang Lee (Representative of Uni-President Enterprises Corp.) 30,000 100.00%

Director Chih-Hsien Lo, Lung-Jao Lee, Ming-Chin Yang (Representative of Uni-President Enterprises Corp.)

30,000 100.00%

Supervisor Po-Hsun Yang (Representative of Uni-President Enterprises Corp.) 30,000 100.00%

President Lung-Jao Lee

President Pharmaceutical Corp. Chairman Chang-Sheng Lin (Representative of Uni-President Enterprises Corp.) 10,640,494 53.74%

Director Hua-Yang Lee, Ming-Hang Kuo (Representative of Uni-President Enterprises Corp.) 10,640,494 53.74%

Ping-Chih Wu (Representative of Taipo Investment Corp.) 1,980,000 10.00%

Tian-Mao Lin, Chung-Cheng Wu (Representative of Tung Rui Investment Corp.) 382,199 1.93%

Du-Chung Tsai, Chung-Jen Hsu (Representative of Preident Chain Store Corp.) 3,960,000 20.00%


President Ming-Hang Kuo

Tone Sang Construction Corp. Chairman Tong-Liang Lee (Representative of Uni-President Enterprises Corp.) 19,800,000 100.00%

Director Chang-Sheng Lin, Lung-Yi Lin, Ben-Yung Liao (Representative of Uni-President Enterprises Corp.)

19,800,000 100.00%

Supervisor Po-Hsun Yang (Representative of Uni-President Enterprises Corp.) 19,800,000 100.00%

President Ben-Yung Liao




Shareholding

Shares %

President Entertainment Corp. Chairman Tong-Liang Lee (Representative of Uni-President Enterprises Corp.) 76,759,680 61.80%

Director Chih-Hsien Lo, Chang-Sheng Lin, Lung-Yi Lin (Representative of Uni-President Enterprises Corp.)

76,759,680 61.80%

Nan-Tien Chuang, Po-Ming Ho, Chien-Chung Ye (Representative of President International Development Corp.)

47,440,320 38.20%


President Ming-Chin Yang

President Kikkoman Inc. Chairman Yuzabuyo Mogi (Representative of Kikkoman Corp.) 6,000,000 50.00%

Vice Chairman Chang-Sheng Lin (Representative of Uni-President Enterprises Corp.) 6,000,000 50.00%

Director Mitsuo Someya, Kaichiyo Someya, Rintome Baba, Mogi Yoshiyuki (Representative of Kikkoman Corp.)

6,000,000 50.00%

Po-Ming Yen, Tsung-Ming Lin, Chih-Ping Hsieh, Chien-Jen Yin (Representative of Uni-President Enterprises Corp.)

6,000,000 50.00%

Supervisor Kazuo Sekine (Representative of Kikkoman Corp.) 6,000,000 50.00%

Lung-Yi Lin (Representative of Uni-President Enterprises Corp.) 6,000,000 50.00%

President Chien-Jen Yin

President Fair Development Corp. Chairman Chin-Yen Kao (Representative of Uni-President Enterprises Corp.) 150,000,000 42.86%

Director Chang-Cheng Lin, Lung-Yi Lin (Representative of Uni-President Enterprises Corp.) 150,000,000 42.86%

Chih-Chung Ye, Nan-Tien Chuang, Te-Cheng Tu (Representative of President International Development Corp.)

150,000,000 42.86%


Kainan Plywood &Wood Mfg. Co., Ltd. Chairman Chang-Sheng Lin (Representative of President Fair Development Corp.) 20,000,000 100.00%

Director Lung-Yi Lin, Chih-Chung Ye (Representative of President Fair Development Corp.) 20,000,000 100.00%

Supervisor Chien-Li Yin (Representative of President Fair Development Corp.) 20,000,000 100.00%

Retail Support International Corp. Chairman Chung-Jen Hsu(Representative of Uni-President Enterprises Corp.) 5,000,000 25.00%

Director Lung-Yi Lin, Xian-Yan Huang (Representative of Uni-President Enterprises Corp.) 4,000,000 20.00%

Chien-Nan Hsieh (Representative of President Chain Store Corp.) 5,000,000 25.00%

Tsunao Kijima, Kimtzu Sheng (Representative of Mitsubishi Corp.) 3,000,000 15.00%

Haneda Hiroshi (Representative of Ryoshoku Ltd.) 2,000,000 10.00%


Supervisor Tokue Shinsuke (Representative of Mitsubishi (Taiwan) Corp.) 2,000,000 10.00%

Rui-Tang Chen (Representative of President Chain Store Corp.) 5,000,000 25.00%

President Chin-Pin Hsu

Retail Support Taiwan Corp. Chairman Chien-Nan Hsieh (Representative of Retail Support International Corp.) 2,295,000 51.00%

Director Komori Yutaka, Chin-Pin Hsu (Representative of Retail Support International Corp.) 2,295,000 51.00%

Ming-Fang Lin (Representative of FSG Co., Ltd.) 1,323,000 29.40%

Wei-Yu Huang (Representative of Grand Fountain Co., Ltd.) 882,000 19.60%

Supervisor Li-Tai Huang (Representative of Retail Support International Corp.) 2,295,000 51.00%

Yueh-Kuei Cheng (Representative of Grand Fountain Co., Ltd.) 882,000 19.60%

President Ming-Fang Lin -




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Shareholding

Shares %

President Logistics International Co., Ltd. Chairman Chien-Nan Hsieh (Representative of Retail Support International Corp.) 5,595,800 49.00%

Director Chin-Pin Hsu, Hsieh-Shou Peng, San-Hsien Wu (Representative of Retail Support International Corp.)

5,595,800 49.00%

Dong-Ho Chen (Representative of Uni-President Cold Chain Corp.) 2,855,000 25.00%

Po-Chung Hsieh, Te-Chi Qiu (Representative of Wisdom Distribution Service Corp.) 2,284,000 20.00%

Ming-Fang Lin (Representative of Retail Support Taiwan Corp.) 685,200 6.00%

Supervisor Li-Tai Huang (Representative of Retail Support International Corp.) 5,595,800 49.00%

Kun-Pin Su (Representative of Uni-President Cold Chain Corp.) 2,855,000 25.00%

President Hsieh-Shou Peng

Chieh Shun Transport Corp. Chairman Chien-Nan Hsieh (Representative of President Logistics International Co., Ltd.) 5,000,000 100.00%

Director Chin-Pin Hsu, Hsieh-Shou Peng, San-Hsien Wu, Dong-Ho Chen, Po-Chung Hsieh, Te-Chi Qiu, Ming-Fang Lin (Representative of President Logistics International Co., Ltd.)

5,000,000 100.00%

Supervisor Li-Tai Huang, Kun-Pin Su (Representative of President Logistics International Co., Ltd.) 5,000,000 100.00%

President Hsieh-Shou Peng

Tung Ho Development Corp. Chairman Tong-Lian Lee (Representative of Uni-President Enterprises Corp.) 101,889,615 65.06%

Director Chang-Sheng Lin, Lung-Yi Lin, Chih-Hsien Lo (Representative of Uni-President Enterprises Corp.)

101,889,615 65.06%

Chung-Jen Hsu(Representative of President Chain Store Corp.) 30,236,994 19.31%



Ming-Chin Yang (Representative of Nanlien International Corp.) 14,980,615 9.57%

President Chung-Huang Huang

Gu Hsiang Co., Ltd. Chairman Tong-Lian Lee (Representative of Tung Ho Development Corp.) 20,385,822 100.00%

Director Chung-Huang Huang, Shu-Chieh Huang, Sheng- I Chen (Representative of Tung Ho Development Corp.)

20,385,822 100.00%

Supervisor To Shih (Representative of Tung Ho Development Corp.) 20,385,822 100.00%

President Chung-Huang Huang

President Being Corp. Chairman Chung-Jen Hsu (Representative of Tung Ho Development Corp.) 5,000,000 50.00%

Director Chung-Huang Huang, Shu-Chieh Huang (Representative of Tung Ho Development Corp.) 5,000,000 50.00%

Yu-Wen Yang, Shou-Yin Huang, Ming-Chen Huang (Representative of Being Corp.) 5,000,000 50.00%

Supervisor To Shih (Representative of Tung Ho Development Corp.) 5,000,000 50.00%

Ming-Haur Shih (Representative of Being Corp.) 5,000,000 50.00%

President Shu-Chu Huang

President Nisshin Corp Chairman Ogome Kazuo (Representative of Nisshin Oil Mills, Ltd.) 5,280,000 44.00%

Vice Chairman Chang-Sheng Lin (Representative of Uni-President Enterprises Corp.) 6,120,000 51.00%

Director Akitani Joukei, Negishi Hironori, Ohara Atsushi, Suzuki Tadashi (Representative of Nisshin Oil Mills, Ltd.)

5,280,000 44.00%

Lung-Yi Lin, Chao Yang, Chen-Nan Chen, Liang-Feng Wu (Representative of Uni-President Enterprises Corp.)

6,120,000 51.00%

Supervisor Nobuo Kurebayashi (Representative of Nisshin Oil Mills, Ltd.) 5,280,000 44.00%

Kuang-Nan Chu (Representative of Uni-President Enterprises Corp.) 6,120,000 51.00%

President Liang-Feng Wu




Shareholding

Shares %

President Packaging Corp. Chairman Chih-Hsien Lo (Representative of Uni-President Enterprises Corp.) 12,659,116 50.59%

Director Tsung-Ming Lin, Chieh-Peng Hsien (Representative of Uni-President Enterprises Corp.) 12,659,116 50.59%

Jun-Hsiao Lee, Ruei-Tse Lee, Ruei-Chin Lee (Representative of Yihrong Investment Corp.) 5,071,576 20.27%


President Ruei-Chin Lee 870,089 3.47%

President Packaging (BVI) Corp. Director Ruei-Chin Lee (Representative of President Packaging Corp.). NTD51,630,000 100.00%

Shanghai President Packaging Corp. Chairman Chih-Hsien Lo (Representative of President Packaging (BVI) Corp.) NTD51,624,000 100.00%

Director Ruei-Chin Lee, Chieh-Peng Hsien (Representative of President Packaging (BVI) Corp.) NTD51,624,000 100.00%

President Ruei-Chin Lee

Parabola Creative Inc. Chairman Chih-Hsien Lo (Representative of Uni-President Enterprises Corp.) 900,000 60.00%

Director Ming-Chin Yang, Chih-Peng Hsieh, Wen-Lung Yang, Ho-Beng Lee (Representative of Uni-President Enterprises Corp.)

900,000 60.00%

Sekiguchi Tsuneo, Osugi Shinkichi, Teng-Pang Chen, Chen-Kun Lin (Representative of Kuohua Inc.)

600,000 40.00%

Supervisor Chien-Li Yin (Representative of Uni-President Enterprises Corp.) 900,000 60.00%

President Ching-Kuo Tsai

Ton Yi Pharmaceutical Corp. Chairman Chang-Sheng Lin(Representative of Uni-President Enterprises Corp.) 510,000 51.00%

Director Hua-Yang Lee, Chung-Jen Hsu, Du-Chung Tsai (Representative of Uni-President Enterprises Corp.)

510,000 51.00%

Ping-Chih Wu (Representative of Taipo Investment Corp.) 100,000 10.00%

Huaw-Chiu Kuo, Chung-Cheng Wu (Representative of Tung Rui Investment Corp.) 389,998 39.00%

Supervisor Tian- Mao Lin (Representative of Tung Rui Investment Corp.) 389,998 39.00%

President Yen-Sen Yang

Tung Yuan Corp. Chairman Qian-Chang Chen (Representative of Uni-President Enterprises Corp.) 19,800.000 100.00%

Director Po-Rong Yen, Chih-Peng Hsien, Wen-Lung Yang(Representative of Uni-President Enterprises Corp.)

19,800,000 100.00%


President Ying-Chang Yu

Uni-President Dream Parks Corp. Chairman Lung-Yi Lin (Representative of Uni-President Enterprises Corp.) 3,100,000 100.00%

Director Chung-Jen Hsu, Chih-Hsien Lo, Xian-Yan Huang, Ming-Chin Yang (Representative of Uni-President Enterprises Corp.)

3,100,000 100.00%


President Ming-Chin Yang

Uni-OAO Travel Service Corp. Chairman Chih-Hsien Lo (Representative of Uni-President Dream Parks Corp.) 480,000 80.00%

Director Ming-Chin Yang, Kuang-Yen Chu (Representative of Uni-President Dream Parks Corp.) 480,000 80.00%

Shu-Chieh Huang (Representative of Tung Ho Development Corp.) 60,000 10.00%

Jui-Tien Huang (Representative of President Chin Store Corp.) 60,000 10.00%

Supervisor Chien-Li Yin(Representative of Uni-President Dream Parks Corp) 480,000 80.00%

President Kuang-Yen Chu




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Shareholding

Shares %

Aimservices Uni-President Co., Ltd. Chairman Xian-Yan Huang (Representative of Uni-President Enterprises Corp.) 5,000,000 50.00%

Vice Chairman Chi-Fu Tsai (Representative of Mitsui Co. (Taiwan), Ltd.) 500,000 5.00%

Director Hua-Yang Lee, Chun-Sung Wu, Shin-Ten Su (Representative of Uni-President Enterprises Corp.)

5,000,000 50.00%

Kenichiro Sekiya, Hirai Masatoshi(Representative of AIM Service ) 3,000,000 30.00%

Yamamura Toshio (Representative of Mitsui Co. Ltd.) 1,500,000 15.00%

Supervisor Chien-Li Yin (Representative of Uni-President Enterprises Corp.) 5, ,000,000 50.00%

Satoshi Ichikawa (Representative of Mitsui Co.(Taiwan),Ltd.) 500,000 5.00%

Director Shin-Ten Su

Uni-President Glass Industrial Co., Ltd. Chairman Lung-Yi Lin(Representative of Uni-President Enterprises Corp.) 36,000,000 100.00%

Director Chih-Hsien Lo, Tsung-Ming Lin, Ya-Sheng Wang (Representative of Uni-President Enterprises Corp.)

36,000,000 100.00%


President Ya-Sheng Wang

Kai Nan Investment Co., Ltd. Chairman Chin-Yen Kao (Representative of Uni-President Enterprises Corp.) 60,000,000 100.00%



President Chang-Sheng Lin

President Tokyo Corp. Chairman Hoshino Mikio (Representative of Tokyo Leasing Co., Ltd.) 9,800,000 49.00%

Director Fujino Toru (Representative of Tokyo Leasing Co., Ltd.) 9,800,000 49.00%

Chung-Sheng Lin (Representative of President Investment Corp.) 4,950,000 24.75%

Chang-Sheng Lin (Representative of Uni-President Enterprises Corp.) 4,200,000 21.00%

Supervisor Molson M.T .Hou (Representative of President Investment Corp.) 4,950,000 24.75%

President Chung-Sheng Lin

President Tokyo Auto Leasing Corp. Chairman Hoshino Mikio (Representative of President Tokyo Corp.) 500,000 100.00%

Director Chung-Sheng Lin, Chang-Sheng Lin (Representative of President Tokyo Corp.) 500,000 100.00%

Supervisor Molson M.T .Hou (Representative of President Tokyo Corp.) 500,000 100.00%

President Chung-Sheng Lin

Uni-President Organics Corp. Chairman Lung-Yi Lin (Representative of Uni-President Enterprises Corp.) 6,200,000 51.67%

Director Chih-Hsien Lo, Xian-Yan Huang, Hua-Yang Lee (Representative of Uni-President Enterprises Corp.)

6,200,000 51.67%

Sasaki Ryuichi (Representative of President Natural Industrial Corp.) 2,000,000 16.66%

Chien-Nan Hsien, Rui-Tang Chen (Representative of President Chain Store Corp.) 3,800,000 31.67%


President Pei-Neng Su

Presco Netmarketing Inc. Chairman Chih-Hsien Lo (Representative of Uni-President Enterprises Corp.) 6,500,000 100.00%

Director Xian-Yan Huang, Chien-Nan Hsien, Shui-Hsing Yeh (Representative of Uni-President Enterprises Corp.)

6,500,000 100.00%

Supervisor Chung-Ming Su (Representative of Uni-President Enterprises Corp.) 6,500,000 100.00%

President Shui-Hsing Yeh





Name of Corporation

Paid-in

Capital Total Assets

Total

Liabilities Net Worth

Net Operating

Revenues

Operating

Income Net Income

Earning Per

Share(NTD)

Uni-President Enterprises Corp. 33,950,978 73,477,382 31,401,818 42,075,564 37,951,951 109,123 2,937,696 0.86

President Global Corp. 172,075 634,016 182,192 451,824 205,853 15,783 33,210 -

Ameripec Inc. 89,522 281,942 122,246 159,696 479,986 30,874 22,921 -

Cayman President Holdings Ltd. 5,164,315 15,616,826 12,943,520 2,673,307 268,457 81,798 418,272 2.79

Uni-President Southeast Asia Holdings Ltd. 1,376,600 1,524,011 110,238 1,413,772 5,215 (23,557) 29,073 0.73

Uni-President (Thailand) Ltd. 721,230 753,609 579,130 174,478 1,076,666 90,296 79,671 1.10

Uni-President (Vietnam) Co., Ltd. 1,001,503 1,582,837 698,281 884,556 1,832,117 25,590 25,667 -

Uni-President (Philippines) Corp. 21,624 284 393 (109) 253 (217) (223) (0.07)

Uni- President Foods Corp. 295,104 325,358 198,087 127,272 89,307 (99,002) (117,017) (2.52)

President Energy Development (Cayman) Ltd. 1,376,600 1,159,718 14,282 1,145,436 - - (77,232) (1.93)

President Enterprises (China) Investment Co., Ltd. 8,541,819 15,808,727 5,991,026 9,817,700 23,832,901 427,192 435,625 -

Xinjiang President Enterprises Food Co., Ltd. 533,432 313,137 137,458 175,679 409,272 (1,510) (6,191) -

Tianjiang President Enterprises Food Co., Ltd. 523,452 364,287 155,246 209,041 475,710 (3,847) (5,089) -

Chengdu President Enterprises Food Co., Ltd. 688,300 1,741,857 580,337 1,161,520 3,608,185 369,083 416,482 -

Meishan President Feed & Oil Co., Ltd. 344,150 278,292 52,463 225,829 316,997 (36,298) (41,879) -

Guangzhou President Enterprises Co., Ltd. 1,651,920 2,196,890 1,072,167 1,124,723 3,629,415 57,112 41,322 -

Zhongshan President Enterprises Co., Ltd. 412,980 488,127 36,415 451,712 375,294 31,040 29,584 -

Beijing President Food Co., Ltd. 426,746 578,341 169,585 408,756 1,258,157 (48,346) (43,010) -

Wuhan President Enterprises Food Co., Ltd. 832,843 1,822,745 517,414 1,305,331 3,419,356 210,891 200,103 -

Nanchang President Enterprises Co., Ltd. 412,980 687,806 235,062 452,744 1,414,479 39,521 57,809 -

Kunshan President Enterprises Food Co., Ltd. 1,514,260 3,694,784 1,823,599 1,871,185 5,969,020 307,910 277,537 -

Guangzhou Wang Sheng Industrial Co., Ltd. 83,160 82,852 262 82,590 22,065 395 (890) -

Qingdao President Feed & Livestock Co., Ltd. 516,225 466,686 67,442 399,244 414,980 (18,868) (19,713) -

Shenyang President Enterprises Co., Ltd. 684,858 980,276 453,982 526,294 1,268,006 (111,472) (130,045) -

Hefei President Enterprises Co., Ltd. 344,150 837,244 387,375 449,869 1,534,835 89,859 99,663 -

Harbin President Enterprises Co., Ltd. 516,225 497,119 261,143 235,976 312,297 (85,973) (117,276) -

Changjiagang President Nisshin Food Co., Ltd. 585,055 599,702 57,488 542,214 411,874 9,321 5,191 -

Zhengzhou President Enterprises Co., Ltd. 206,490 227,174 26,643 200,531 - (5,165) (5,041) -

San Tong Wanfu (Qingdao) Food Co., Ltd. 412,980 453,230 44,854 408,376 536,222 (6,379) (4,582) -

Uni-President International (HK) Co., Ltd. 26,520 49,911 42,135 7,774 138,691 (36,509) (1,666) (0.28)

President International Trade & Investment Corp. 1,549,095 2,610,733 10,966 2,599,767 126,065 (174,759) (141,614) (3.15)

Tianjing President International Food Co., Ltd. 428,466 123,778 112,528 11,250 110,284 (13,688) (29,044) -

Shanghai President International Food Co., Ltd. 447,395 111,032 186,868 (75,836) 167,391 (32,617) (128,317) -

Uni-President (U.S.A.), Inc. 516,225 501,353 280,617 220,736 172,517 (68,716) (75,006) (0.50)

Kai Yu Investment Co., Ltd. 4,322,054 3,272,030 1,329,186 1,942,844 1,167,954 306,141 471,849 1.46

Tung Ang Enterprises Corp. 30,000 651,440 605,239 46,202 6,152,189 4,401 8,073 2.69

Uni-President Vender Corp. 25,000 184,809 147,640 37,169 1,302,517 (11,076) 9,330 3.73

Kai Yu (BVI) Investment Co., Ltd. 1,833,573 2,718,042 1,311,489 1,406,553 613,159 432,272 432,272 8.08

Shanghai Songjiang President Enterprises Co., Ltd. 275,320 278,824 237,362 41,462 213,489 (47,038) (70,753) -

Fuzhou President Enterprises Co., Ltd. 344,150 768,938 455,648 313,290 1,443,632 62,183 49,681 -


395,772 1,096,242 630,243 465,999 1,629,127 63,669 59,494 -

President Coffee (Cayman) Holdings Ltd. 206,490 176,903 7,116 169,787 - 454 43,943 7.32

Shanghai President Coffee Co., Ltd. 137,667 275,615 119,231 156,384 515,587 58,488 43,397 -

Century Quick Service Restaurant Corp. 341,250 47,371 90,247 (42,876) 160,854 (51,095) (80,015) (2.34)

Nanlien International Corp. 1,000,000 2,720,929 1,573,195 1,147,734 2,106,277 (69,084) 34,796 0.35

Summarized Operation Results of Affiliated Enterprises IN THOUSAND NTD

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Summarized Operation Results of Affiliated Enterprises (Continued) IN THOUSAND NTD

Name of Corporation

Paid-in


Total


Net Operating

Revenues

Operating

Income Net Income

Earning Per

Share(NTD)

Uni-President Auto Accessories Corp. 25,000 52,775 34,391 18,384 59,585 (5,266) (5,233) (2.09)

Nella Limited. 44 149,935 217,472 (67,537) 219,718 662 308 69.68

Tunnel International Marketing Corp. 688 774 511 263 - (274) 3,140 4.56

Tunnel 88 International Corp. 688 8,388 7,380 1,008 - (1,439) 281 0.41

Wei Lien Enterprises Corp. 5,000 38,435 30,416 8,019 201,143 (3,312) 3,534 7.07

Cayman Nanlien Holding Ltd. 138,004 168,502 71,030 97,471 - (521) 745 0.01

Lien Yu Enterprises Corp. 27,500 49,764 13,377 36,387 246,736 7,402 5,552 2.02

Lien Bai Enterprises Corp. 80,000 244,971 162,210 82,761 1,139,896 12,350 15,341 1.92

Xin Sheng Food Corp. 7,500 17,637 7,318 10,319 81,161 1,051 927 1.24

Xian Jin Food Corp. 5,000 13,369 6,088 7,282 84,431 1,179 894 1.79

Tung Chang Enterprises Corp. 7,000 10,807 8,557 2,250 36,767 (569) (1,057) (1.51)

Yuan Tai Enterprises Corp. 5,500 33,318 26,081 7,237 104,647 9,081 812 1.48

Tung Huang Enterprises Corp. 6,000 21,546 12,593 8,953 120,644 20,547 934 1.56

Tung Hsiang Enterprises Corp. 45,000 151,641 100,098 51,544 557,341 6,930 4,785 1.06

Tung Shun Enterprises Corp. 45,000 195,186 141,989 53,197 660,033 12,617 6,504 1.45

Jian Hua Enterprises Corp. 10,000 19,986 9,582 10,404 108,704 (2,193) (1,056) (1.06)

Tung Shen Corp. 16,000 46,401 28,716 17,685 139,057 (647) 1,031 0.65

Tung Yi Enterprises Corp. 10,000 85,566 71,240 14,326 314,565 13,127 2,760 2.76

Lien Song Enterprises Corp. 65,000 69,541 7,555 61,986 85,935 (1,554) 216 0.09

Lien You Enterprises Corp. 17,000 21,202 5,783 15,419 89,892 (2,938) (1,625) (0.96)

Lien Lu Enterprises Corp. 50,000 135,234 115,906 19,328 501,975 (28,741) (18,067) (3.61)

Hua Zuo Corp. 8,000 31,084 23,498 7,587 132,671 1,379 1,080 1.35

Jin Yu Enterprises Corp. 12,000 23,680 11,065 12,615 109,223 (2,510) 321 0.27

Tung Che Enterprises Corp. 20,000 67,544 47,571 19,973 250,686 (2,706) (291) (0.15)

Tung Xu Corp. 5,000 7,492 2,160 5,333 31,102 208 177 0.35

Chao Tung Enterprises Corp. 20,000 37,041 13,845 23,196 194,397 545 1,930 0.97

Tung Guan Egg Corp. 20,000 68,881 49,687 19,194 253,444 (5,779) 63 0.03

Union Chinese Corp. 120,000 453,860 292,225 161,634 883,330 51,371 37,857 3.16

Tung Chu Enterprises Corp. 30,000 184,137 139,753 44,384 754,558 12,044 6,521 2.17

Tung Hsiang Corp. 80,000 509,062 418,868 90,194 2,308,333 (3,544) 6,606 0.83

Tung Jun International Corp. 12,000 32,563 19,876 12,687 153,964 223 544 0.45

Tung Yu Enterprises Corp. 80,000 137,584 48,815 88,770 902,775 8,074 8,170 1.02

Hui Sheng Enterprises Corp. 12,000 30,694 24,750 5,944 125,191 (185) (1,844) (1.54)

Fu Chun Enterprises Corp. 3,000 7,074 3,957 3,117 13,054 4,176 193 0.64

Chieh Yi Enterprises Corp. 4,000 7,053 2,943 4,110 11,212 4,162 110 0.28

Chi Fu Enterprises Corp. 22,000 25,156 1,927 23,229 54,496 1,390 1,158 5.26

President Chain Store Corp. 8,584,995 27,839,849 14,033,060 13,806,789 77,634,490 3,094,278 3,681,606 4.29

PCS (BVI) Holding Ltd. 1,597,043 1,443,092 - 1,443,092 - - 179,159 13.29

PCS (Labnan) Holdings Ltd. 711,851 519,770 - 519,770 - - (46,818) (0.01)

Philippine Seven Corp. 150,892 846,936 451,265 395,612 2,060,644 14,536 5,674 -

Convenience Distribution Inc. 24,168 33,572 6,095 27,477 50,964 9 44 -

President Drugstore Business Corp. 198,000 698,455 460,108 238,347 2,379,821 9,061 53,548 2.70

President Direct Marketing Corp. 70,000 270,641 175,512 95,129 519,895 4,547 19,876 2.84

Rui Hui Investment Corp. 853,037 859,873 313 859,560 29,032 28,029 28,012 0.33

Capital Inventory Service Corp. 45,494 96,724 35,098 61,627 155,458 13,547 12,152 2.67




Name of Corporation

Paid-in


Total


Net Operating

Revenues

Operating

Income Net Income

Earning Per

Share(NTD)

Duskin Serve Taiwan Co., Ltd. 300,000 136,708 48,357 88,351 259,320 16,926 17,356 0.58

Books.com Co., Ltd. 199,900 108,939 75,231 33,708 493,005 8,481 10,076 0.50

Wisdom Distribution Service Corp. 94,325 1,074,770 938,114 136,656 4,250,889 34,493 33,919 3.60

President Information Corp. 151,800 455,539 234,760 220,779 685,263 58,290 59,996 3.95

President Coffee Corp. 198,000 881,721 643,323 238,488 2,054,463 137,005 73,284 3.70

Mech-President Corp. 448,800 1,785,995 1,202,590 583,405 8,006,862 64,587 119,916 2.67

Safe Technology Corp. 5,000 11,308 5,921 5,386 13,712 156 156 0.31

Shanghai Mech-President Co., Ltd. 86,042 84,069 5,226 78,844 11,610 (4,451) (4,405) (0.01)

Mech-President (BVI) Corp. 86,038 2,310 2 2,308 - (2) (110) (0.44)

Tung Jim Corp. 15,000 24,220 9,351 14,869 3,724 (131) (131) (0.09)

Uni-President Cold Chain Corp. 326,055 2,085,051 1,607,336 477,715 10,224,008 144,060 122,639 3.76

President Transnet Corp. 1,000,000 1,026,677 949,769 76,909 1,650,860 (48,775) (63,913) (0.67)

Uni-President Oven Bakery Corp. 90,000 165,099 94,734 70,365 307,161 (19,641) (17,474) (1.29)

President Engineering Technology Corp. 50,000 118,090 59,683 58,407 438,229 10,667 7,621 1.52

President Musashino Corp. 522,900 727,432 185,073 542,358 656,765 12,402 14,669 0.28

Uni-President Takashimaya Co., Ltd. 250,000 153,745 21,100 132,645 - (67,872) (66,937) (2.68)

Muji (Taiwan) Co., Ltd. 100,000 98,167 962 97,205 - (2,945) (2,795) (0.28)

Bank Pro E-Service Technology Co., Ltd. 135,000 124,411 23,015 101,396 67,541 331 1,063 0.08

President Collect Service Co. Ltd. 15,000 88,124 74,836 13,288 24,682 2,819 3,354 2.24

Uni-President Yellow Hat Corp. 190,000 142,436 47,107 95,329 227,418 (25,565) (25,704) (1.35)

President Asian Enterprises Inc. 411,197 987,380 832,272 155,108 79,007 (46,954) (54,693) (8,598.1)

President Hotel Inc. 2 32,863 175,837 (142,974) 168,157 (29,309) (29,309) (29.31)

President Canada Construction Inc. 2 1,591 1,750 (159) 2,735 (266) (266) (0.27)

President Canada Real Estate Services Inc. 2 4,216 8,861 (4,645) 9,724 (318) (318) (0.32)

555053 British Columbia Ltd. - 386,423 202,287 184,136 61,795 (10,033) (10,033) -

Ton Yi Industrial Corp. 15,807,419 32,124,843 15,015,765 17,109,078 17,238,578 1,355,923 577,276 0.37

Tovecan Corp. 108,704 164,777 3,231 161,546 103,605 18,570 10,055 -

Cayman Ton Yi Industrial Holdings Ltd. 1,359,140 3,425,695 4,114,483 (688,788) 4,496,193 (19,241) 11,508 -

Cayman Jiangsu Ton Yi Industrial Holdings Ltd. 1,699 681,391 731 680,661 - (89) 57,149 -

Jiangsu Ton Yi Tinglate Co., Ltd. 1,369,857 3,881,957 3,220,612 661,345 2,918,165 191,275 75,810 -

Cayman Fujian Ton Yi Industrial Holdings Ltd. 1,805 1,148,346 929 1,147,417 - (95) 86,029 -

Fujian Ton Yi Tinglate Co., Ltd. 1,469,672 4,554,717 3,194,207 1,360,510 3,205,401 198,402 103,313 -

Chendu Ton Yi Industrial Packing Co., Ltd. 257,205 463,621 396,171 67,450 199,522 (8,889) (20,021) -

Wuxi Ton Yi Industrial Packing Co., Ltd. 233,901 1,026,907 863,020 163,887 654,828 16,080 2,402 -

Hong Kong Ton Yi Industrial Holdings Co., Ltd. 340 222,197 208,804 13,394 172,461 5,737 5,743 -

New Dawn Enterprises Ltd. 6,454 6,828 - 6,828 - (73) 194 -

President International Development Corp. 15,000,000 20,238,125 7,717,588 12,520,537 - - (460,844) (0.31)


4,578,107 6,088,728 800,255 5,288,473 - - (66,153) (0.50)

Tung Li Development Corp. 826 82,142 59,753 22,389 - - 12,834 15.53

Tong Shou Investment Corp. 111,400 150,043 20 150,023 - - 23 -

Tong Yu Investment Corp. 1,165,300 260,229 23 260,206 - - (293) (0.01)

Tong Cheng Investment Corp. 150,300 111,348 20 111,328 - - (71) (0.01)

President Life Sciences Co., Ltd. 1,650,000 1,339,795 5,833 1,333,962 - - (124,796) (0.76)

President Biosystems Co., Ltd. 43,000 23,168 2,684 20,484 - (14,556) (11,485) (2.67)

Protein Institute Inc. 180 74,222 5,265 68,957 - - (568) (0.11)

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Name of Corporation

Paid-in


Total


Net Operating

Revenues

Operating

Income Net Income

Earning Per

Share(NTD)

President Life Sciences Cayman Co., Ltd. 922,829 516,403 137 516,266 - - (2,425) (0.09)

President Medical Technologies Corp. 100,000 178,336 113,328 65,007 28,981 (19,337) (7,033) (0.70)

Presitex Co., Ltd. 361,786 595,565 497,553 98,011 297,304 (113,749) (182,631) (7.94)

Z-Kat Asia Co., Ltd. 3,000 955 1 956 - - (547) (1.83)

G-Advanced Semiconductor Technology Corp. 198,000 683,569 538,738 144,831 - (5,242) (4,879) (0.25)

President Natural Industrial Corp. 120,000 171,233 97,799 73,434 232,996 (4,833) (123) (0.01)

President Baseball Team Corp. 30,000 40,014 19,957 20,057 137,407 (2,911) (356) (11.87)

President Pharmaceutical Corp. 198,000 827,190 665,804 161,386 2,054,249 81,771 88,020 4.45

Tone Sang Construction Corp. 198,000 1,191,393 1,074,552 116,840 223,367 1,100 (29,541) (1.49)

President Entertainment Corp. 1,242,000 2,415,034 915,212 1,499,822 10,461 (13,360) (10,717) (0.09)

Tung Ho Development Corp. 1,565,973 4,598,027 4,500,350 97,677 601,788 (291,440) (500,165) (3.54)

Gu Hsiang Co., Ltd. 203,858 273,841 107,323 166,518 - - (5,380) (0.26)

President Being Corp. 100,000 218,321 167,930 50,391 75,537 (60,183) (49,609) (12.72)

President Kikkoman Inc. 120,000 461,033 167,138 293,895 746,377 72,530 61,789 5.15

Retail Support International Corp. 200,000 5,143,356 4,758,876 384,480 35,200,493 118,029 123,861 6.19

Retail Support Taiwan Corp. 45,000 125,118 63,453 61,665 163,761 16,153 12,705 2.82

President Logistics International Co., Ltd. 114,200 433,142 292,989 140,153 706,160 36,858 23,356 2.05

Chieh Shun Transport Co., Ltd. 50,000 183,256 132,025 51,204 25,649 2,066 1,525 0.24

President Fair Development Corp. 3,500,000 7,340,461 3,966,112 3,374,349 - (25,220) (44,310) (0.13)

Kainan Plywood & Wood Mfg. Co., Ltd. 200,000 1,786,278 1,363,277 423,001 - (9,779) 7,253 0.36

President Nisshin Corp. 120,000 326,649 108,901 217,748 958,787 54,571 43,401 3.62

President Packaging Corp. 250,250 1,248,420 908,127 340,293 1,093,026 93,437 61,567 2.46

President Packaging (BVI) Co., Ltd. 51,631 49,312 4,276 45,035 778 (6,604) (6,597)

Shanghai President Packaging Co., Ltd. 51,624 49,312 4,163 45,149 778 (6,486) (6,596) -

Parabola Creative Inc. 15,000 24,487 14,918 9,569 49,342 724 1,495 1.00

Ton Yi Pharmaceutical Corp. 10,000 7,177 30 7,147 - (32) (189) (0.19)

Tung Yuan Corp. 198,000 252,107 45,401 206,706 313,015 1,453 1,875 0.09

Uni-President Dream Parks Corp. 31,000 304,665 278,590 26,075 1,294,310 801 (9,270) (2.99)

Uni-OAO Travel Service Corp. 6,000 24,055 29,536 (5,480) 4,216 (11,345) (11,481) (1.91)

Aimservices Uni-President Co., Ltd. 100,000 65,572 14,900 50,672 58,360 (22,901) (28,792) (2.88)

Uni-President Glass Industrial Co., Ltd. 360,000 689,447 484,168 205,279 365,447 (10,368) (19,845) (0.55)

Kai Nan Investment Co., Ltd. 600,000 551,414 3,029 548,385 7,569 2,068 2,831 0.05

President Tokyo Corp. 200,000 1,998,446 1,780,877 217,569 893,730 88,092 32,703 1.64

President Tokyo Auto Leasing Corp. 5,000 11,065 6,370 4,695 393 65 (305) (0.61)

Uni-President Organics Corp. 120,000 32,375 39,400 (7,025) 76,216 (19,421) (32,300) (2.69)

Presco Netmarketing Inc. 65,000 74,031 58,749 15,282 172,446 4,604 5,796 0.89

USD NTD=1 34.415 HKD NTD=1 4.42 RMB NTD=1 4.158 BHD NTD=1 0.829

PSO NTD=1 0.636 CAD NTD =1 24.804 NTD VND =1 450.88

Independent Auditor's Uni-President And Affiliated Enterprises

Consolidated Financial Statements: Please refer to page 265~325.

Affiliation Report: None



INTERNAL CONTROL SYSTEM EXECUTION STATUS

Statement of Internal Control

Date: Apr 1,2004

The internal control system from January 1 to December 31, 2003, according to the result of self-assessment is

thus stated as follows:

1. The Company acknowledges that the implementation and maintenance of internal control system is the

responsibility of Board of Directors and management, and the Company has established such system. The internal

capital system is aimed to reasonably assure that the goals such as the effectiveness and the efficiency of

operations (including profitability, performance and protection of assets), the reliability of financial reporting and

the compliance of applicable law and regulations are achieved.

2. The internal control system has its innate restriction. An effective internal control system can only ensure the

foregoing three goals are achieved; nevertheless, due to the change of environment and conditions, the

effectiveness of internal control system will be changed accordingly. However, the internal control system of the

Company has self -monitoring function and the Company will take corrective action once any defect is identified.

3. According to the effective judgment items for the internal control system specified in “Highlights for

Implementation of Establishing Internal control System by Listed Companies” (hereinafter referred to as

“Highlights”) promulgated by Securities and Futures Commission, Ministry of Finance R.O.C., the Company has

made judgment whether or not the design and execution of internal control system is effective. The judgment

items for internal control adopted by “Highlights” are, based on the process of management control, for

classifying the internal control into five elements: 1.Control environment; 2.Risk assessments; 3.Control activities;

4.Information and communication; and 5.Monitoring. Each element also includes a certain number of items. For

the foregoing items, refer to “Highlights”.

4. The Company has adopted the aforesaid judgment items for internal control to evaluate the effectiveness of

design and execution of internal control system.

5. Based on the above-mentioned result of evaluation, the Company suggests that the internal control system,

including the design and execution of internal control relating to the effectiveness and efficiency of operation, the

reliability of financial reporting, the compliance of applicable law and regulations has been effective and they can

reasonably assure the aforesaid goals have been achieved.

6. This statement will be the main content for annual report and prospectus and will be disclosed publicly. If the

above contents have any falsehood and concealment, it will involve in the liability as mentioned in Article

20,32,171 and 174 of Securities and Exchange Law.

7. This statement has been approved by the meeting of Board of Directors on April 1, 2004, and those 7 directors in

presence all agree at the contents of this statement.

Uni-President Enterprise Corporation

Chairman : Kao, Chin Yen

President : Lin, Lung Yi

Under specified circumstances, Securities & Futures Commission may

request the Company to engage CPA to examine the Company's internal

control system and disclose the CPA's audit report: None.

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MAJOR RESOLUTIONS OF GENERAL MEETING OF

SHAREHOLDERS AND MEETINGS OF BOARD OF DIRECTORS

Major Resolutions during 2003 General meeting of Shareholders:

1. Acceptance of Company’s 2002 operating report and financial statements.

2. Acceptance of Company’s 2002 schedule of retained earnings distribution.

3. Acceptance of the indirect investment in Mainland China.

4. Amendments to the “Procedures governing to the Lending of Capital to others”.

5. Amendments to the “Procedures for Endorsement and Guarantee”.

6. Amendments to the “Procedures for Acquisition or Disposal of Assets”.

7. Amendments to the Company’s Articles of Incorporation.

Major Resolutions during the Meetings of Board of Directors in 2003 and

to the Publish Date of the Annual Report:

On Feb. 21, 2003

1. Approval of the cancelled treasury stocks.

On Mar. 3, 2003

2. Approval of common stock buyback.

On Apr. 7, 2003

3. Approval of participating in BOT of Taipei City Transit.

4. Acceptance of acquisition of 42,257 thousand common shares of Tung Ho Development Co., Ltd. with market

value of NTD 211,286 thousand dollars.

5. Acceptance of Company’s 2002 financial statements.

6. Approval of appointment of top executives.

7. Approval of Company’s 2002 schedule of retained earnings distribution.

8. Approval of the date and site for 2003 General Meeting of Shareholders.

9. Approval of cancelled treasury stocks.

On May 2, 2003


On Jun. 27, 2003

11. Acceptance of the acquisition of 4,178 thousand common shares of President Chain Store Corp. with market

value of NTD 181,325 thousand dollars.

12. Approval of change of chairman.

13. Approval of increasing investment in Cayman President Holding Ltd. with USD 35,000,000.

14. Approval of issuance of the company’s corporate bonds.

On Aug. 21, 2003

15. Acceptance of acquisition of 608 thousand common shares of President Chain Store Corp. with market value of

NTD 26,953 thousand dollars.



16. Acceptance of transfer of common shares of Grand Commercial Bank to the common shares and preferred

shares of Chinatrust Financial Holding Company Ltd.

17. Acceptance of disposing 25% shares of President Coffee Corp. to Starbucks Coffee International Inc.


19. Approval of establishing Guangzhou President Healthy Food Technology Co., Ltd.

20. Approval of issuance of Zero Coupon Exchangeable Bonds.

21. Approval of acquisition of 6,474 thousand common shares of President Packaging Corp from President Chain

Store Corp. with value of NTD 162,268 thousand dollars.

On Oct. 13, 2003


On Nov. 14, 2003

23. Acceptance of redeeming 50,661 thousand preferred shares of Chinatrust Financial Holding Company Ltd.

transferred from Grand Commercial Bank with value of NTD 506,613 thousand dollars.

24. Acceptance of acquiring 262 thousand common shares of President Chain Store Corp. with market value NTD

10,580 thousand dollars.

25. Approval of acquiring 49% shares of RFM President Enterprises Corp. through Uni-President Southeast Asia

Holdings Ltd. with PESO 196,010 thousand dollars.

26. Approval of incorporation with Cargill Inc. to establish Cargill-President (Nantong) Feed Protein Technology Co.,

Ltd.

On Feb. 13, 2004

27. Approval of increasing investment in Tung Ho development Co., Ltd. with NTD 420,357 thousand dollars.

28. Approval of increasing capital NTD 1,122,054 thousand dollars in Kai Yu Investment Co., Ltd. with 99,700

thousand common shares of Tonpal Oppoel Electronics Inc.


30. Approval of incorporation with Kirin Brewery Co., Ltd. to establish Beijing President Kirin Beverage Corp.

On Apr. 1, 2004

31. Acceptance of Company’s 2003 financial statements.

32. Approval of Company’s 2003 schedule of retained earnings distribution.

33. Approval of the date and the site of the 2004 Shareholders’ Meeting.

34. Acceptance of the acquisition of 30,038 thousand common shares of Kuang Chuan Dairy Co., with NTD

961,560 thousand dollars, 22 thousand common shares of Kuang Chuan Foods Ltd., and 6,600 thousand

common shares of Hi-life International Co., Ltd.

DIRECTORS’ OR SUPERVISORS’ OBJECTIONS ON IMPORTANT

RESOLUTION OF MEETINGS OF BOARD OF DIRECTORS

During the most recent fiscal year or during the current fiscal year up to the published date of the

annual report, some party has expressed a dissenting opinion with respect to a major resolution passed

by the board of directors: None.

ISSUANCE OF PRIVATE PLACEMENT SECURITIES: None.

ACQUISITION OR DISPOSAL OF UNI-PRESIDENT’S SHARES BY

SUBSIDIARIES: None.

LEGAL PENALTIES AND INTERNAL PUNISHMENT

Where, during the most recent fiscal year or during the current fiscal year up to the date of printing

of the annual report, any penalties have been imposed in accordance with the law upon the company

or its in-house personnel, or the company has taken disciplinary action against its in-house personnel

for violations of the company’s internal control regulations, the annual report shall describe the

principal problem(s) and what it has done to improve the situation: None

OTHER NECESSARY SUPPLEMENT:

Non-auditing fee for CPA in 2003 In thousand NTD

Amount Item

100 Actuarial Report

MAJOR EVENT MAY AFFECT SHAREHOLDERS’ EQUITY OR

STOCK PRICE

Situations listed in Subparagraph 2 of Paragraph 2 of Article 36 of the Securities and Exchange Law,

which might materially affect shareholders’ equity or the price of the company’s securities, has occurred

during the most recent fiscal year or during the current fiscal year up to the date of printing of the

annual report: None.

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UNI PRESIDENT ENTERPRISES CORP.

FINANCIAL STATEMENTS AND REPORT

OF INDEPENDENT ACCOUNTANTS

DECEMBER 31, 2003 AND 2002

These English financial statements and report of independent accountants were translated from the financial statements and report of independent accountants originally prepared in Chinese.


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REPORT OF INDEPENDENT ACCOUNTANTS

(04)P12D.40353

To the Board of Directors and Stockholders

of Uni-President Enterprises Corp.

We have audited the accompanying balance sheets of Uni-President Enterprises Corp. as of December 31, 2003 and 2002, and the related statements of income, of changes in stockholders' equity and of cash flows for the years then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We did not audit the financial statements of certain long-term investments accounted for under the equity method, which statements reflected investment of $10,693,169,000 and $12,719,984,000 as of December 31, 2003 and 2002, respectively, and net investment income in the amount of $714,966,000 and $584,099,000 for the years then ended, respectively. These statements were audited by other auditors, whose reports thereon have been furnished to us. Our opinion expressed herein, insofar as it relates to the amounts included for these long-term investments, is based solely upon the reports of other auditors.

We conducted our audits in accordance with the “Rules Governing Examination of Financial Statements by Certified Public Accountants” and generally accepted auditing standards in the Republic of China. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits and the reports of other auditors provide a reasonable basis for our opinion.



In our opinion, based on our audits and the reports of other auditors, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of Uni-President Enterprises Corp. as of December 31, 2003 and 2002, and the results of its operations and its cash flows for the years then ended, in conformity with the “Rules Governing the Preparation of Financial Statements of Securities Issuers” and generally accepted accounting principles in the Republic of China.

As described in Note 3 to the financial statements, effective 2002, the Company changed its method of accounting of certain inventory costs from the “First in, first out” method to the weighted average method. The net cumulative effect of the change in accounting principle amounted to $7,810,000 for the year ended December 31, 2002. Effective January 1, 2002, the Company also adopted R.O.C. FAS No. 30 “Accounting for Treasury Stock” under which the parent company’s stock held by its subsidiaries is accounted for as treasury stock. As a result of this change in the method of accounting of treasury stock, net income decreased by $126,998,000 for the year ended December 31, 2002.

We have also audited the consolidated financial statements of Uni-President Enterprises Corp. and subsidiaries (not presented herein) for the years ended December 31, 2003 and 2002. Our report dated March 30, 2004, expressed a modified unqualified opinion on those statements.

PricewaterhouseCoopers Tainan, Taiwan Republic of China March 30, 2004 -----------------------------------------------------------------------------------------

The accompanying 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 financial statements and report of the independent accountants 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.


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UNI-PRESIDENT ENTERPRISES CORP.BALANCE SHEETS

DECEMBER 31,(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

ASSETS Current Assets Cash and cash equivalents (Note (4(1)) Notes receivable (Notes 4(2) and 5) Accounts receivable – third parties (Note 4(3)) Accounts receivable – related parties (Note 5) Other receivables – third parties Other receivables – related parties (Note 5) Inventories (Notes 3 and 4(4)) Prepayments Deferred income tax – current (Note 4(19))

Funds and Long-term investments (Notes 4(5) and 5) Long-term investments accounted for under the equity method Long-term investments accounted for under the cost method

Property, Plant and Equipment (Notes 4(6), 5 and 6) Cost: Land Buildings Machinery and equipment Storage facilities Electrical installations Transportation equipment Furniture and fixtures Leased property Leasehold improvements Other equipment Revaluation increment Cost and revaluation Less: Accumulated depreciation Construction in progress and prepayments for equipment

Intangible Assets Deferred pension cost (Note 4 (14)) Other Assets Assets held for lease (Notes 4(6), 4(7) and 6) Idle assets (Notes 4(6), 4(8) and 6) Guaranteed deposits Deferred expenses (Note 4(9)) Long-term receivables-third parties (Note 4(10)) Long-term receivables–related parties (Note 5) Deferred income taxes – non–current (Note 4(19)) Other (Note 4(6))

TOTAL ASSETS

(Continued on next page)



UNI-PRESIDENT ENTERPRISES CORP.

DECEMBER 31,(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Short-term loans (Note 4(11)) Notes payable Accounts payable – third parties Accounts payable – related parties (Note 5) Income tax payable (Note 4(19)) Accrued expenses (Note 5) Other payable Current portion of long-term liabilities(Note 4(13)) Other current liabilities (Note 4(6))

Long-term liabilities Bonds Payables (Note 4(12)) Long-term loans (Note 4(13)) Long-term payables Lease payables– non–current (Note 4(6))

Other Reserves Provision for land-value incremental tax (Note 4(6)) Other Liabilities Provision for retirement plan (Note 4(14)) Customers' deposits Other (Note 4(5))

TOTAL LIABILITIES

Stockholders' Equity Common stock (Notes 1 and 4(15)) Capital reserve (Notes 4(6) and 4(16)) Transactions in treasury stock Asset revaluations Donated capital Long-term investments Retained earnings (Notes 4(15), 4(16), and 4(17)) Legal reserve Special earnings reserve Unappropriated earnings Other adjustment to stockholder’s equity Unrealized loss on long-term investments Cumulative translation adjustment Unrecognized pension cost Treasury stock (Notes 3, 4(5), 4(15) and 4(18))

Contingent Liabilities and Commitments (Notes 5 and 7) Significant Subsequent Events (Note 9) TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

The accompanying notes are an integral part of these financial statements. Please refer to the audit report of PricewaterhouseCoopers dated March 30, 2004.


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UNI-PRESIDENT ENTERPRISES CORP.STATEMENTS OF INCOME

YEARS ENDED DECEMBER 31,(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS

EXCEPT FOR EARNINGS PER SHARE AMOUNT)

Operating Revenues (Note 5) Gross sales Less: Sales returns

Sales allowance Other

Operating Costs (Notes 4(20) and 5) Cost of goods sold Other

Gross Profit

Operating Expenses (Notes 4(20) and 5) Selling expenses Administrative and general expenses Research and development expenses

Operating Income

Other Income Interest income Investment gain accounted for under the equity method (Note 4(5)) Cash dividends Gain on disposal of property, plant and equipment (Note 5) Gain on sale of investments (Note 5) Gain on foreign currency transactions Rental income (Notes 4(7) and 5) Other (Note 5)

Other Expenses Interest expenses (Note 4(6)) Investment loss accounted for under the equity method (Note 4(5)) Other loss from investments (Note 4(5)) Loss on disposal of property, plant and equipment Loss on foreign currency transactions Amortization on commercial paper for issuance cost Shutdown loss Other

Income before income taxes Income tax expense (Note 4(19)) Income before extraordinary items and cumulative effect of changes in accounting principle Cumulative effect of changes in accounting principle, less applicable income tax of $2,603 (Notes 3 and 4(19)) Net Income




UNI-PRESIDENT ENTERPRISES CORP.STATEMENTS OF INCOME (CONTINUED)

YEARS ENDED DECEMBER 31(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS


Before Tax Net Before Tax Net

Basic Earnings Per Common Share (Note 4 (21) )

Income before cumulative effect of changes in accounting Principle

Cumulative effect of changes in accounting principle

Net Income

Pro forma amounts as if the shares of the Company held

by the Company’s subsidiaries were not treated as

treasury stock

Net Income

Basic Earnings Per Common Share

Net Income

Pro forma amounts assuming retroactive

application of change in method of accounting

for inventory cost

Net Income

Basic Earnings Per Common Share

Net Income



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UNI-PRESIDENT ENTERPRISES CORP.STATEMENTS OF CASH FLOWSYEARS ENDED DECEMBER 31

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

CASH FLOWS FROM OPERATING ACTIVITIES Net income Adjustments to reconcile net income to net cash provided by operating activities: Reversal of valuation of short-term investments Provision for doubtful accounts Reversal of allowance for doubtful accounts Reversal of inventory obsolescence valuation Equity in loss (Gain) of subsidiaries Perpetual loss of long-term investments accounted for under the

cost method Cash dividends from equity subsidiaries Gain on sale of investments Depreciation Gain on disposal of property, plant and equipment, idle assets and other assets Loss on disposal of property, plant and equipment, and idle assets Amortization Loss (Gain) on foreign currency translations Changes in assets and liabilities: Notes receivable Accounts receivable – third parties Accounts receivable – related parties Other receivables – third parties Other receivables – related parties Inventories Prepayments Deferred income tax assets - current Deferred pension cost Long-term receivables Deferred income tax assets-non-current Notes payable Accounts payable – third parties Accounts payable – related parties Income tax payable Accrued expenses Other payables Provision for retirement plan Net cash provided by operating activities




UNI-PRESIDENT ENTERPRISES CORP.STATEMENTS OF CASH FLOWS (CONTINUED)

YEARS ENDED DECEMBER 31(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

CASH FLOWS FROM INVESTING ACTIVITIES Decrease in short-term investments Increase in long-term investments-subsidiaries Increase in long-term investments-non-subsidiaries Proceeds from sale of long-term investments-subsidiaries Proceeds from sale of long-term investments-non-subsidiaries Proceeds from reduction of the subsidiaries capital Cash purchase of property, plant and equipment, assets held for lease and other assets Proceeds from disposal of property, plant and equipment, assets held for lease, idle assets and other assets Decrease in guaranteed deposits Increase in deferred expenses (Increase) Decrease in employees’ car loans Net cash provided by investing activities

CASH FLOWS FROM FINANCING ACTIVITIES Decrease in short-term loans Increase in bonds payable Decrease in long-term loans Increase in long-term payables Increase (Decrease) in guarantee deposits Payment of directors' and supervisors' remuneration Payment of employees' bonuses Payment of cash dividends Purchase of treasury stock Net cash used in financing activities EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR CASH AND CASH EQUIVALENTS, END OF YEAR Supplemental disclosures of cash flow information 1. Interest paid (not including capitalized interest) 2. Income taxes paid 3. Fair value of subsidiaries on the date of acquisition during the period:

President Packaging Ind. Corp. Cash

Total payment for acquiring President Packaging Ind. Corp. (Based on 51% ownership) Less: Cash balance of President Packaging Ind. Corp.

(Based on 51% ownership) Cash purchase of President Packaging Ind. Corp. (Based on 51% ownership)



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UNI-PRESIDENT ENTERPRISES CORP.STATEMENTS OF CASH FLOWS (CONTINUED)


Investing and financing activities with partial cash payment

1.Purchase of long-term investments – non-subsidiaries

Plus: Other payables, beginning of year

Cash purchase of long-term investments – non-subsidiaries

2.Sales of long-term investments – non-subsidiaries

Plus: Other receivables, beginning of year

Cash sales of long-term investments – non-subsidiaries

3.Purchase of property, plant and equipment, assets held for

lease and other assets

Plus: Other payables, beginning of year

Long-term payables, beginning of year

Less: Other payables, end of year

Long-term payables, end of year

Cash purchase of property, plant and equipment, assets held for


4.Sales of property, plant and equipment, assets held for


Less: Long-term receivables-related parties

Cash sales of property, plant and equipment, assets held for lease

and other assets

Other activities with no cash flow effect

Long – term investments reclassified to treasury stock




UNI-PRESIDENT ENTERPRISES CORP.NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2003 AND 2002(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT AS OTHERWISE INDICATED)

Note 1 HISTORY AND ORGANIZATION

1.Uni-President Enterprises Corp. (the “Company”) was incorporated as a company limited by shares under the provisions of the Company Law of the Republic of China in August 1967 with initial capital of $32,000. As of December 31, 2003, the authorized capital was $34,243,868, the paid-in capital was $33,950,978, consisted of 3,395,098 thousand shares of common stock with $10 (NT dollar) par value per share. The Company primarily engages in the manufacture, processing and sales of various soft drinks, foods, flour and animal feeds.

2.As of December 31, 2003, the Company has 5,156 employees.

3.The common shares of the Company have been listed on the Taiwan Stock Exchange since December 1987.

Note 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in accordance with the “Rules Governing the preparation of Financial Statements of Securities Issuers” and generally accepted accounting principles in the Republic of China. The summary of significant accounting policies is as follows:

1.Foreign currency transactions and translation

The Company maintains its accounts in New Taiwan dollars. Foreign currency transactions are measured and recorded in New Taiwan dollars using the exchange rate in effect on that date. Any change in the exchange rate between the date of transaction and the settlement date which results in an exchange gain or loss is charged to income for the period. The unrealized exchange gain or loss on monetary assets and liabilities denominated in foreign currencies at balance sheet date is included in income for the period.

2.Interest rate swap

Any differential interest receipts and payments arising from interest rate swap agreements entered into for hedging purposes are accrued to match the net gain or loss with the related financing costs.


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3.Current and non-current assets

An asset which meets one of the following criteria is classified as current asset:

(1) Cash or cash equivalents with no restriction in use; (2) Held for the purpose of trading or held for a short period and expected to

be turned into cash within 12 months after balance sheet date; or (3) Expected to be turned into cash or to be sold or used within the ordinary

course of business in the Company’s normal operating cycle.

An asset which does not meet the criteria of current assets is classified as non-current asset.

4. Cash equivalents

Cash equivalents include repurchased bonds and commercial papers with maturity date of less than three months.

5. Short-term investments

Short-term investments are stated at the lower of cost or market value. Cost is determined using the weighted average method. Any excess of aggregate cost over the market value will be recognized in the current period. Subsequent recovery in market value is recognized to the extent of original cost.

6.Allowance for doubtful accounts

Allowance for doubtful accounts is determined based on past experience of occurrence of bad debt and evaluation of the collectibility of receivables and the aging of accounts receivable, notes receivable and other receivable.

7. Inventories

Inventories are stated at the lower of cost or market value. Cost is determined using the weighted average method except for livestock which is based on average cost less allowance for decline in value. The cost of livestock is amortized over the actual breeding and production periods. Market value for raw materials, raw materials in transit and supplies is based on the replacement cost, and market values for merchandise, work in process, livestock in process, finished goods and by products, is determined based on net realizable value. Appropriate consideration is given to deterioration, obsolescence and other factors in evaluating allowance for inventory obsolescence.



8.Long-term investments

Long-term investments in which the Company has less than 20% of the subsidiaries' paid-in voting share capital, and in which the Company has no ability to exercise significant influence, are stated at the lower of cost or market value for listed companies and at cost for unlisted companies. The market value of listed companies is determined using the average closing price of the last month during the accounting period and the unrealized loss of decline in market value is recorded under the stockholders' equity. If it becomes evidently clear that there has been a permanent impairment in value and the chance of recovery is minimal, then loss on decline in market value is recognized in the current period.

Investments which ownership interest exceeds 20%, or in which the Company has the ability to exercise substantial influence are accounted for using the equity method. The difference between the acquisition cost and the Company's share of the subsidiary’s net book value on the date of acquisition is capitalized and amortized over a period of five years.

Consolidated financial statements are prepared to include majority owned subsidiaries. However, if the majority owned subsidiaries’ total assets and total operating revenues constitute less than 10% of the respective accounts of the Company, such subsidiaries are not required to be consolidated and the equity method is used to account for these majority owned subsidiaries. When the total assets or total operating revenues of all non-consolidated majority owned subsidiaries have exceeded 30% of those of the Company, any of these subsidiaries with total assets or total operating revenues in excess of 3% of the respective accounts of the Company are consolidated.

"Cumulative Translation Adjustment" resulting from translation of all assets and liabilities of the invested foreign companies, which are accounted for using the equity method, are recognized proportionally based on the percentage of ownership of the foreign company and are reflected in the stockholders' equity section.

9. Property, plant and equipment, assets held for lease, idle assets and other assets

Property, plant and equipment, assets held for lease, idle assets and other assets are stated at either cost or cost plus appraisal increments. Interest incurred in connection with the purchase or construction required to bring the assets to the condition and location for their intended use is capitalized. Major renewals, betterments and additions are capitalized. Maintenance and repairs are expensed as incurred.

Depreciation is computed using the straight-line method over the estimated economic useful lives of depreciable assets. Fully depreciated assets still in use are depreciated based on the residual value over the new estimated remaining useful lives. The useful lives of depreciated assets are: machinery and equipment 2-19 years, other assets 2-55 years. Containers are expensed when damaged.


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When an asset is sold or retired, the cost and accumulated depreciation are removed from respective accounts and any gain or loss on disposal of property, plant and equipment, assets held for lease, idle assets and other assets is recorded as non – operating income and expenses. Prior to 2001, this disposal gain net of related income tax is transferred to capital reserve.

Idle fixed assets are stated at the lower of book value or net realizable value and are reclassified as other assets. The difference between book value and net realizable value is recorded as a loss in the current period. The depreciation expense for the period is recorded as non-operating expenses.

10. Deferred expenses

(1) The Company leases its dairy and juice packing machines. The minimum advance rental payments are amortized over 12 years, the estimated economic lives of the packing machines. The contingent rent paid quarterly or based on unit-of-production is recorded as current expense.

(2) The issuance costs of exchangeable bonds are classified as deferred expenses and amortized over the life of the bonds.

(3) Other deferred expenses are amortized over a period of 3-10 years.

11.Current liabilities and non-current liabilities

A liability which meets one of the following criteria, is classified as current liability:

(1) Expected to be repaid within 12 months after balance sheet date; or

(2) Incurred due to business operation and expected to be repaid within the ordinary course of business in the Company’s normal operating cycle.

A liability which does not meet the criteria of current liability is classified as non-current liability.

12.Exchangeable bonds

When exchangeable bondholders exercise their rights to exchange for the reference shares, the book value of the bonds is to be offset against the book value of the investments in reference shares and the related stockholders’ equity accounts, with the difference recognized as gain or loss on disposal of investments.

13.Retirement plan and net periodic pension cost

The Company has a non-contributory and funded defined benefit retirement plans covering all regular employees. Monthly contributions are deposited into an independent retirement trust fund.

R.O.C. FAS No. 18, "Accounting for Pension Cost" was adopted to account for pension expenses. Net periodic pension cost includes service cost, interest cost, expected return on plan assets, amortization of unrecognized prior service cost, amortization of unrecognized loss and amortization of unamortized net transition asset (obligation).



14.Treasury stock

The cost of treasury stock (common or preferred) acquired by the Company and its subsidiaries are accounted for under the weighted-average method. The treatments are as follows :

(1) Acquisition: shares purchased are based on the cost shares donated are based on the fair value.

(2) Disposal: if the disposal value is higher than the cost, any excess is recorded as additional Capital Reserve - Treasury Stock account; if the disposal value is lower than the cost, the difference is first charged against the Capital Reserve - Treasury Stock account; any deficiency is charged against Retained Earnings.

(3) Retirement: The cost is charged against the Treasury Stock account, and the related additional Paid-in Capital and the Common Stock accounts. If the cost of the treasury stock is higher than the sum of the par value and the additional Paid-in Capital, the difference is charged against the Capital Reserve-Treasury Stock account; any deficiency is charged against Retained Earnings; if the cost of the treasury stock is lower than the sum of par value and the additional Paid - in Capital, the difference is credited to the Capital Reserve - Treasury Stock account.

Effective January 1, 2002, the Company adopted R.O.C. FAS No. 30 "Accounting for Treasury Stock" and accordingly began to treat the Company’s stocks held by the subsidiaries as treasury stock when recognizing investment income (loss) and when preparing the financial statements.

15.Income tax

The Company adopted R.O.C. FAS No. 22 "Accounting for Income Tax", whereby income tax is provided based on accounting income after adjusting for permanent differences, and inter-period and intra-period allocation of income tax was adopted. The tax effect of taxable temporary differences was recorded as a deferred tax liability; while the tax effect of deductible temporary differences, net operating loss carry forwards and income tax credits were recorded as deferred tax assets. A valuation allowance is provided for deferred tax assets. Deferred tax assets or liabilities are classified into current or non-current items in accordance with the nature of the balance sheet accounts or the period realization is expected. Adjustments of prior years' income tax liabilities are included in the current year's income tax expense.

The Company adopted R.O.C. FAS No.12 "Accounting for Income Tax Credits", whereby investment tax credits from the purchase of machinery and equipment, research and development expenditure, training expenditure and equity investment in stock were adopted by flow through method.

The 10% additional income tax expense on unappropriated earnings is recognized in accordance with the resolution adopted at the annual stockholders’ meeting.


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16.Use of estimates

The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenue, cost of revenue and expenses during the reporting period. Actual results could differ from those estimates.

17.Revenues, costs and expenses

Sales revenues are recognized when the earning process is completed and payment is realized or realizable; the costs and expenses associated with the revenue are recorded as incurred.

Note 3 CHANGE IN ACCOUNTING PRINCIPLES

1.Effective January 1, 2002, the Company changed the method of accounting for certain inventory costs from the first in-first out method (FIFO) method to the weighted average method, which was approved by the SFC. The net cumulative effect of this change in the accounting principle was to increase the net income by $7,810 for the year ended December 31, 2002.

2.Effective January 1, 2002, the Company adopted R.O.C. FAS No. 30 "Accounting for Treasury Stock" and accordingly began to treat the Company’s stock held by the subsidiaries as treasury stock when recognizing investment income (loss) and when preparing the financial statements. As a result of this change in accounting principle, net income decreased by $126,998 for the year ended December 31, 2002.



Note 4 DETAILS OF SIGNIFICANT ACCOUNTS

1. CASH AND CASH EQUIVALENTS

Cash:Cash on hand Checking deposits Demand deposits

Cash equivalents: Commercial papers

2. NOTES RECEIVABLE

Notes receivable Less : Allowance for doubtful

notes receivable

3. ACCOUNTS RECEIVABLE THIRD PARTIES

Accounts receivable Less : Allowance for doubtful

accounts receivable

4. INVENTORIES

MerchandiseRaw materials Raw materials in transit SuppliesWork in process Livestock in process Finished goods LivestockLess : Allowance for livestock By-products

Less : Allowance for price decline and obsolescence in inventories


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5. LONG-TERM INVESTMENTS

(1) Details of long-term investments with debit balance

Name of subsidiaries Accounted for under the equity method:President International Trade and Investment Corp. Cayman President Holdings, Ltd. Kai Yu Investment Co., Ltd. Nanlien International Corp. President International Development Corp. President Chain Store Corp. Ton Yi Industrial Corp. Tong-Jeng Development Corp. President Securities Corp. Presicarre Corp. Tonpal Optoelectronics Corp. (Note 3) Others (individually less than 2%) (Notes 1 and 2)

Accounted for under the cost method: Tonpal Optoelectronics Corp. (Note 3) New Century Info-Comm Co., Ltd. Others (individually less than 2%) (Note 4)



(2) Credit balance of long-term investments

Name of subsidiaries Accounted for under the equity method:Tone Sang Construction Corp. President Organics Co. Latin America Development Co., Ltd. (Notes 2 and 3)

(Note 1) The majority-owned subsidiaries are not consolidated because each subsidiary’s total assets and total operating revenues constituted less than 10% of the respective accounts of the Company, and all subsidiary’s total assets and total operating revenues constituted less than 30% of the respective accounts of the Company.

(Note 2) The equity method was used to account for investments in Copers Corp., Scino Pharm Taiwan Ltd., Allianz President Life Insurance Co., Ltd., Tonpal Optoelectronics Corp. and Latin America Development Co., Ltd. due to the Company’s ability to exercise significant influence, even though the Company’s ownership in these investee companies was less than 20%.

(Note 3) Investment in Tonpal Optoelectronics Corp. and Latin America Development Co., Ltd. had been changed to be accounted for under the cost method from equity method since first and third quarter of 2003, respectively, as the Company no longer had the ability to exercise significant influence over these investee companies.

(Note 4) In 2003 and 2002, the net equity of investee companies, President Investment Trust Corp. and Lumnen Electronics Corp. are minus. The recovery of possibility is minimal, therefore the company recognized the perpetual loss of 23,700 and 76in 2003 and 2002, respectively.

(3) The long-term investment income and loss accounted for under the equity method was $2,348,733, and $1,523,080, respectively, in 2003 and 2002.


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(4)As of December 31, 2002, the shares of the Company held by the Company’s subsidiaries were as follows:

2002

Beginning Balance Addition (Note) Sale Ending Balance

Average Average market

Shares Book value per Shares Shares price per Shares price per

Name of the subsidiaries (in thousands) share (NT Dollar) (in thousands) (in thousands) share (NT Dollar) (in thousands) share (NT Dollar)


President International

Development Corp.

(Note) The dividends acquired by subsidiaries from the distribution of the Company’s 2001 earnings.

1. In accordance with R.O.C. FAS NO. 30 "Accounting for Treasury Stock", the Company recognized the treasury stock cost of $1,260,735 based on the Company’s stock market price of $12.24 (NT dollars) per share as of December 31, 2001 and its equity ownership in above-mentioned subsidiaries.

2. None of the shares of the Company was held by the Company’s subsidiaries on December 31, 2003.

(5)On September 4, 2003, Grand Commercial Bank (“Grand”), the Company’s investee company accounted for under the cost method, was acquired by Chinatrust Financial Holding Co., Ltd. (“Chinatrust”) by means of share swap and hence Grand became a 100%-owned subsidiary of Chinatrust after the merger. One share of Grand’s common stock was exchanged for 0.633 share and 0.254 share of Chinatrust’s preferred stock and common stock, respectively, and the effective date of the share swap was September 30, 2003. Accordingly, the Company obtained 50,661 thousand shares and 20,329 thousand shares of Chinatrust’s preferred stock and common stock, respectively, and recognized a gain on disposal of investment of $176,327 in the nine-month period ended September 30, 2003. In addition, the Company’s investment in Chinatrust’s preferred stock can be converted into cash after one month from the issuance of such preferred stock. Total cash that the Company can receive from such conversion is calculated based on the par value of the preferred stock (NT$10 dollars per share) plus the interests, which are calculated based on the interest rate of Chinatrust Bank’s six-month time deposits. However, the conversion request must be exercised within six months after the issuance of these preferred shares.



6. PROPERTY, PLANT AND EQUIPMENT

(1)As of December 31, 2003 and 2002, revaluation and accumulated depreciation of fixed assets are listed as follows:

December 31,2003 December 31,2002

Assets Revaluation

Accumulated

depreciation Revaluation

Accumulated

depreciation

Land

Buildings

Machinery and equipment

Electrical installations

Transportation equipment

Furniture and fixtures

Leased property

Leasehold improvements

Other equipment

(2) In the years 1975, 1979, 1981, 1983, 1990 and 1995, the Company revalued certain property, plant and equipment (including assets held for lease, idle assets ) in accordance with the regulations for the Revaluation of Assets in the Republic of China. The amounts of revalued appreciation credited to capital reserve was $1,984,813.The balance of capital reserve-assets revaluation was $452,131 as of December 31, 2003 and 2002.

(3) The balance of the provision for land-value increment tax on December 31, 2003 and 2002 was $1,289,869 and $1,291,803,respectively.

(4) Interest expenses before capitalization in 2003 and 2002 was $560,358 and $1,064,201, respectively. Interest capitalized totaled $86,020 and $132,840 with interest rates of 2.39% and 4.23% for 2003 and 2002, respectively.

(5) As of December 31, 2003 and 2002, the Company has purchased certain agriculture land in the amount of $59,156 and $59,304, respectively, for expansion of plant facilities. The land has yet to be rezoned for industrial purposes. Accordingly, the land title has not been officially transferred to the Company. However, the Company has secured the land deeds and other ownership documents.

(6) Leased property

The major terms of the leased properties are summarized below:

A. Upon the maturity of the lease contract, the title of the leased properties accounted for under capital leases are transferred to the Company at no additional cost. The rental payments and the leased properties are listed as follows:


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Present value based on the implicit Category of property interest rate Period Buildings, electrical 8.1997-7.2012 installations and 180 equal monthly other equipment installments

Buildings 1. 1998-8. 2005 92 equal monthly installments

B. As of December 31, 2003, total amount of rental payments and their present value are listed as follows:

Present value

of rental Total rental

payments payments

2004

2005

2006

2007

2008

2009 and thereafter

Less: Liabilities under capital lease within

one year

Long-term liabilities under capital lease

(classified as long-term payables)



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9. DEFERRED EXPENSES

Beginning balance AdditionsDecreasesAmortization and depreciation Ending balance

(1) The deferred expenses included lease of packing machines. The minimum advance rental payments are amortized over a period of twelve years, the estimated economic lives of the packing machines, and the contingent rent paid quarterly or based on the units-of-production is treated as current expense.

(2) The decrease in 2003 and 2002 was caused by the returns and allowances from the design of website software and vending machines help for lease.

10. LONG-TERM RECEIVABLES

Employee’s car loans Long-term notes receivable

Long-term accounts receivable

Less: Allowance for doubtful long-term receivable

11. SHORT-TERM LOANS

December Collateral or

security

Unsecured bank loans Range of interest rates


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12. BONDS PAYABLE December 31, Collateral or 2003 2002 security

Secured domestic bonds payable in 2002




Overseas exchangeable bonds payable

(1) The Company issued five-year secured domestic bonds on January 28, 2003. The significant terms of the bonds were as follows:

(a) Total issue amount:

The Company issued five-year secured domestic bonds totaling $1,800,000, including $500,000 of A bonds, $300,000 of B bonds, $200,000 of C bonds, $400,000 of D bonds and $400,000 of E bonds.

(b) Issue price: At par value of $1,000 per bond.

(c) Coupon rate:

The five-year secured domestic bonds can be divided into five types of bonds, A, B, C, D and E.(Note) The coupon rate of A, B and D bonds is 3.95% less the floating interest rate. The coupon rate of C and E bonds is 3.951% less the floating rate.

(d) The term of interest repayment:

The bond interest is payable in installments every six months from January 28, 2003 based on the coupon rate.

(e) The repayment term:

The A bonds are repayable starting from January 2006 to January 2008 in three annual installments at the rate of 30%, 30% and 40%, respectively. The B, C, D, and E bonds are repayable on January 28, 2008 upon the maturity of the bonds.

(f)Period: 5 years, from January 28, 2003 to January 28, 2008.

(Note): A bonds is guaranteed by International Commercial Bank of China, the B and C bonds are guaranteed by Chang Hwa Commercial Bank, and D and E bonds are guaranteed by Bank of Taiwan.



(2)The Company issued five-year secured domestic bonds in September 2003. The significant terms of the bonds were as follows:


The Company issued five-year secured domestic bonds totaling $1,300,000, including $300,000 of A, B and C bonds, $200,000 of D and E bonds.


(c) Coupon rate:

The five-year secured domestic bonds can be divided into five types of bonds, A, B, C, D and E (Note). The coupon rate is determined as follows:

(i) If the floating rate is equal to or less than 0.75% per annum, the coupon rate is equal to the floating rate.

(ii) If the floating rate is greater than 0.75% per annum, but is equal to or less than 2.50% per annum, the coupon rate is 2.69% per annum.

(iii) If the floating rate is greater than 2.50% per annum, the coupon rate is 4.00% minus the floating rate.


The bond interest is payable in installments every year from September 2003 based on the coupon rate.


The bonds are repayable in September 2008 upon the maturity of the bonds.

(f) Period: 5 years. The maturity dates of the bonds are from September 22 to September 26, 2008.

(Note): The bonds are guaranteed by Chang Hwa Commercial Bank, Bank of Taiwan and Taiwan Land Bank.



The Company issued five-year secured domestic bonds totaling $300,000.


(c) Coupon rate:

The coupon rate in the first year is 3.00% per annum. The coupon rate from the second year to the fifth year is determined as follows:

(i) If the floating rate is less than 1.25% per annum, the coupon rate is the floating rate plus 0.70% per annum.

(ii) If the floating rate is greater than or equal to 1.25% per annum, the coupon rate is 4.20% minus the floating rate.


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The interest is payable in installments every year from September 2003 based on the coupon rate.


The bonds are repayable in September, 2008 upon the maturity of the bonds.

(f) Period:

5 years, from September 29, 2003 to September 29, 2008.

(Note): The bonds are guaranteed by the Hua Nan Commercial Bank.

(4)The Company issued five-year secured domestic bonds on December 24, 2003. The significant terms of the bonds were as follows

(a) Total issue amount

The Company issued five-year secured domestic bonds totaling $700,000, including $300,000 of A, $200,000 of B and C bonds.

(b) Issue Price At par value of $10,000 per bond.

(c) Coupon rate

The five-year secured domestic bonds can be divided into three types of bonds, A, B and C (Note).The coupon rate is determined as follows

Bonds Coupon rate A If 6M LIBOR 1.20%, the coupon rate is 6M LIBOR. If 1.20%

6M LIBOR 2.00%, the coupon rate is 3.50%. If 6M LIBOR2.00%, the coupon rate is 5.00% minus 6M LIBOR. The floor

of coupon rate is zero. B If 6M LIBOR 1.20%, the coupon rate is 6M LIBOR plus

0.0001%. If 1.20% 6M LIBOR 2.00%, the coupon rate is 3.50%. If 6M LIBOR 2.00%, the coupon rate is 5.00% minus 6MLIBOR. The floor of coupon rate is zero.

C If 6M LIBOR 1.05%, the coupon rate is 6M LIBOR. If 1.05%6M LIBOR 2.00%, the coupon rate is 3.25%. If 6M LIBOR2.00%, the coupon rate is 4.00% minus 6M LIBOR. The floor of

coupon rate is zero.

(d) The term of interest repayment

The bond interest is payable in installments every six months from December 24, 2003 based on the coupon rate.

(e) The repayment term

The A and B bonds are repayable on December 24, 2008 upon the maturity of the bond. The C Bonds are repayable starting from December 2006 to December 2008 in three annual installments at the rate of 30%, 30% and 40%, respectively.

(f)Period 5years, from December 24, 2003 to December 24, 2008.



(Note) A and B bonds are guaranteed by Taipei Bank, C bond is guaranteed by International Commercial Bank of China.

(5) In December 2003, the Company issued Luxembourg Stock Exchange listed five-year zero coupon exchangeable bonds exchangeable for common shares of Ton Yi Industrial Corporation (Ton Yi) with an aggregate principal amount of USD 100 million. The significant terms and conditions of the bonds are as follows

(a) Maturity date and final redemption:

Unless previously redeemed, exchanged, or purchased and cancelled, the Bonds will be redeemed at their principal amount in U.S. dollars on December 5, 2008.

(b) Terms of exchange:

Subject to prior redemption and except as otherwise provided herein. The Bonds may be exchanged, at any time on or after January 5, 2004 and prior to the close of business (at the place at which the Bond is deposited for exchange) on November 5, 2008, into Ton Yi shares at the exchange price of NTD 13.39 per share, determined on the basis of a fixed exchange rate of NTD34.018=USD1.00.

The exchange price will be subject to adjustments upon the occurrence of certain events set out in the indenture.

(c) Redemption at the option of the Company:

The Company may at its option redeem the Bonds at their principal amount, (A) in whole or in part, on or at any time after December 5, 2005 if the average closing price of shares reported on the Taiwan Stock Exchange (the “TSE”) and translated into U.S. dollars at the rate of NTD34.018=USD1.00 for 20 consecutive Trading Days, the last of which Trading Days occurs not more than 10 days prior to the date of notice of such redemption, is at least 125% of the Exchanges Price then in effect translated into U.S. dollars at the Fixed Exchange Rate, or (B) in whole but not in part, at any time if at least 90% in principal amount of the Bonds has already been redeemed, exchanged, or purchased and cancelled; provided that the Company shall not exercise the redemption rights described in (A) and (B) above during a Closed Period.

(d) Tax redemption:

The Company may redeem the Bonds, in whole but not in part, if, as a result of certain changes in ROC laws or regulations occurring after the date of this Offering Circular, the Company becomes obliged to pay additional tax amounts.

(e) Redemption at the option of the holders:

The Company will, at the option of the holder of any Bond (the “Bondholder “) redeem all or a portion of the Bonds held by such Bondholder, at their principal amount on December 5, 2005 (the “Put Option Date”). Bondholders may also require the Company to redeem all or a portion of the Bonds held by such Bondholder (A) if Ton Yi shares cease to be listed or admitted to trading for a period of at least 5 Trading Days on the TSE, or (B) upon the occurrence of a change in control of the Company.


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(f) Exchange of the Bonds:

As of December 31, 2003, no bondholders have exercised their rights to exchange their bonds.

13. LONG-TERM LOANS

December 31, Collateral or

2003 2002 Security

Unsecured bank loans

Revolving credit facility

Less: Prepaid interest

Current portion of

long-term loans

Range of maturity dates

Range of interest rates

14. RETIREMENT PLAN

(1) Under the terms of the retirement plan, an employee may retire when he or she either (i) attains the age of 55 and with the 15 years of service, or (ii) has more than 25 years of service, or (iii) has reached the age of 60, or (iv) is unable to work (involuntary retirement). The employees accrue two units of credits for each year of service for the first 15 years, and one unit of credit for each year of service thereafter. Any fraction of a year which is equal to or greater than six months shall be counted as one year of service, and any fraction of a year which is less than six months, half a year. Each employee can accumulate a maximum of 45 units of credits. Each unit of credit is based on the average of six-month's salaries prior to retirement. Calculation of average salary is in accordance with the Labor Standards Law of the R.O.C.

(2) The Company adopted FAS No. 18 "Accounting for Pension Plan" of the R.O.C. The assumptions used to measure the funded status of the plan are as follows:

Discount rate

Rate of increase in compensation levels

Expected return on plan assets



(3) The net periodic pension cost for the period ended December 31, 2003 and 2002 consists of the following factors:

Service cost Interest cost Expected return on plan assets Amortization of the unrecognized net obligation at transition Amortization of the unrecognized

prior service cost Loss not recognized as pension cost Net periodic pension cost

(4) The funded status of the plans at November 30, 2003 and 2002 were as follows:

Benefit obligation: Vested benefit obligation Non-vested benefit obligation Accumulated benefit obligation Additional benefit based on future salaries Projected benefit obligation Plan assets at fair value Plan funded status Unrecognized net transition obligation Unrecognized prior service cost Unrecognized plan assets loss Accrued pension cost Minimum pension liability Vested benefit


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15. COMMON STOCK

(1) As approved by the stockholders' meeting, the Company issued 50,000,000 shares of Global Depositary Shares (the "GDSs") by means of issuing the first overseas registered common stocks on April 10, 1992. The proceeds from the issuance of the GDSs were collected on November 24, 1992. As of December 31, 2003, these were total of GDSs outstanding was 143,310 units, equivalent to 1,433,132 shares of the Company’s common stock.

The holders of the GDSs have substantially the same rights as holders of common shares. Under the R.O.C. Laws and the "Description of Global Depositary Receipts", the terms are as follows:

(A) Exercise of voting rights

Holders of the GDSs will not have the right to exercise voting rights with respect to the underlying common shares. However, if the trustee receives identical instructions with respect to any matter to be voted on at such meeting from holders of at least 51% of the GDSs, the trustee will in respect of such matter vote all common shares represented by the GDSs in accordance with such instructions insofar as practicable and permitted under applicable law and the Articles of Incorporation of the Company.

(B) The conversion of the GDSs

Under the conversion method, current shares represented by the GDSs may be withdrawn by holders of the GDSs. After the expiration of a three-month period after the closing of the GDS offering, a holder of the GDSs may request the Trustee to sell or cause to be sold on behalf of such holder the common shares represented by such GDSs through TSE.

(C) Dividends The holders of the GDSs have the same rights to receive dividends as holders of registered common shares.

(2) On June 28, 2002, the stockholders at their annual meeting resolved to capitalize unappropriated retained earnings of $1,002,596 as stock dividends which was approved by SFC. After the issuance of stock dividends, the total paid-in capital was $34,422,458, consisted of 3,442,246 thousand shares of common stock issued and outstanding with a par value of $10 (in dollars) per share.

(3) In order to maintain the Company’s credit rating and stockholders’ equity, The Company retired 17,859 thousand shares of treasury stock on March 12, 2003, which was approved by MOEA. After the retirement of treasury stock, the total paid-in capital was $34,243,868, consisted of 3,424,387 thousand shares of common stock issued and outstanding with a par value of $10 (in dollars) per share.

(4) In order to maintain the company’s credit rating and stockholders’ equity, The company bought 49,002 thousand shares of treasury stock and retired 29,289 thousand shares of treasury stock on September 30, 2003, which was approved by



MOEA. After the retirement of treasury stock, the total paid-in capital was $33,950,978, consisted of 3,395,098 thousand shares of common stock issued and outstanding with a par value of $10 (in dollars) per share.

16. CAPITAL RESERVE (1) According to the R.O.C. Company Law, capital reserve shall be exclusively used to

offset against accumulated deficit. However, capital reserve arising from paid-in capital in excess of par value and donation can be used to increase capital, after covering accumulated deficit.

(2) On June 28, 2002, the stockholders at their meeting resolved to transfer the capital reserve of $10,889 from the gain on disposal of assets to unappropriated earnings, which were approved under MOEA Ruling (2002) Chian-Shou-Shang No.09102050200.

17. RETAINED EARNINGS

(1) According to the R.O.C. Company Law, the annual net income should be used initially to cover any accumulated deficit; thereafter 10% of the annual net income should be set aside as legal reserve until the legal reserve has reached 100% of contributed capital. Under the R.O.C. Company Law, the legal reserve shall be exclusively used to cover accumulated deficit or, if the balance of reserve exceeds 50% of contributed capital, to increase capital not exceeding 50% of reserve balance and shall not be used for any other purpose.

(2) According to the Company's Articles of Incorporation, 10% of the annual net earnings, after offsetting any loss of prior years and paying all taxes and dues, shall be set aside as legal reserve. The remaining net earnings can be distributed in accordance with a resolution passed by a meeting of the board of directors and approved at the stockholders' meeting. Of the amount distributed by the Company, stockholders’ dividends are to represent 50% to 100% of the accumulated unappropriated retained earnings, 2% of the remaining earnings is fixed for directors' and supervisors' remuneration and not less than 0.2% is for employees' bonuses.

(3) The distribution of 2002 and 2001 earnings in accordance with the resolution adopted by the stockholders’ meeting, the contribution of cash dividends is 0.35dollars and 0.60 dollars per shares, respectively and the contribution of stock dividends is 0 dollars and 0.30 dollars per shares, respectively.

(4) As of March 30, 2004, the Company has not yet held the board of directors meeting to discuss the earnings distribution proposal for fiscal year 2003. The related information will be available from the Market Observation Post System Website of Taiwan Stock Exchange Corporation once the resolution is approved by the board of directors and shareholders. The information on the distribution of 2002 earnings in accordance with the resolution adopted by the board of director and approved in the stockholders' meetings was as follows:


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Approved in the stockholders’ meeting

A. Distribution: (i) Employees’ cash bonuses (ii) Employees’ stock bonuses (iii) Directors’ and supervisors’ remuneration

B. Information about earnings per share( EPS ) (in dollars)

(i) Original EPS (Note 1) (ii) Imputed EPS (Note 2)

(Note 1) The original EPS was not retroactively adjusted in accordance with the issuance of capitalization of retained earnings.

(Note 2) Imputed EPS = (net income – employees’ bonuses – directors’ and supervisors’ remuneration)/weighted average number of shares outstanding during 2002.

(5) As of December 31, 2003 and 2002, the balance of unappropriated earnings were as follows:

(A) Unappropriated earnings before 1997 (B) Unappropriated earnings since 1998 A: 10% income tax unpaid balance B: 10% income tax paid balance

(6) As of December 31, 2003 and 2002, the imputation tax credit account balance amounted to $3,769 and $740, respectively. The Company distributed 2002 undistributed earnings as dividends in accordance with the resolution adopted at the stockholders’ meeting on June 27, 2003, and the date of dividends distribution was August 22, 2003 adopted at a meeting of board of directors. The creditable ratio was 32.29%. As of December 31, 2003, the estimated creditable ratio was 0.13%. The amount of deductible tax distributable by the Company to its shareholders shall be limited to an amount not exceeding the amount of the imputation tax credit account balance on the date of distribution of the dividends. Accordingly, the actual creditable ratio for the distribution of 2003 undistributed earnings will be based on the imputation tax credit account balance up to the date of distribution of the dividends.

(7) According to the R.O.C. SFC Ruling, the debit balance of $781,100 of stockholders’ equity as of December 31, 2003, should be appropriated as special earnings reserve and not be distributed.



18. TREASURY STOCK

The changes in treasury stock purchased by the Company in 2003 and 2002 are as follows:

Unit In thousands of shares 2003 Purpose for acquisition Beginning balance Addition Reduction Ending balanceMaintaining credit of the Company and stockholders’ equity

Unit In thousands of shares 2002 Purpose for acquisition Beginning balance Addition Reduction Ending balanceMaintaining credit of the Company and stockholders’ equity

(A) According to the R.O.C. Securities Exchange Law, the number of shares of treasury stock shall not exceed 10% of the total shares of common stock issued by the Company and the total amount of treasury stock may not exceed the total amount of retained earnings, paid-in capital in excess of par value and realized capital reserve. As of December 31, 2003 and 2002, the balance of the cost of treasury stock purchased and then retired amounted to $261,492 and $178,004, respectively.

(B) According to the R.O.C. Securities Exchange Law, treasury stock cannot be pledged and bears no shareholders’ rights before the stock is reissued.

(C) According to the R.O.C. Securities Exchange Law, the treasury stock acquired for maintaining credit rating of the Company and stockholders’ equity should be retired within six months of acquisition.


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19. PERSONNEL EXPENSES, DEPRECIATION AND AMORTIZATION

For the period ended December 31, 2003 and 2002, the personnel expenses, depreciation and amortization were as follows:

2003

Recorded as operating costs

Recorded as operating expenses Total

Personnel expenses

Payroll

Insurance

Pension

Other

Depreciation

Amortization

2002

Recorded as operating costs

Recorded as operating expenses Total

Personnel expenses

Payroll

Insurance

Pension

Other

Depreciation

Amortization



20. DEFERRED INCOME TAX AND INCOME TAX EXPENSE

(1) Adjustments for corporate income tax expense and income tax payable were as follows:

Corporate income tax benefit before cumulative effect of changes in accounting principle

Additional 10% income tax on unappropriated earnings

Income tax benefit due to cumulative effect of changes in accounting principle

Corporate income tax expense Net change in deferred income tax assets

Income tax on separately taxed income

Over provision of prior year’s income taxes Prepaid and income taxes withheld

Income tax payable


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(2)T

he d

etai

ls o

f de

ferr

ed in

com

e ta

x as

sets

or

liabi

litie

s re

sulti

ng f

rom

tem

pora

ry d

iffer

ence

s, lo

ss c

arry

forw

ards

and

inve

stm

ent t

ax c

redi

ts w

ere

as fo

llow

s:

D

ecem

ber 3

1, 2

003

Dec

embe

r 31,

200

2

Am

ount

T

ax e

ffec

t

A

mou

nt

Tax

eff

ect

C

UR

RE

NT

ITE

MS:

Tem

pora

ry d

iffer

ence

s

Bad

deb

t exp

ense

ove

r lim

it

Unr

ealiz

ed in

vent

ory

ob

sole

scen

ce lo

ss

Exp

ense

s ca

rrie

d fo

rwar

d

Unr

ealiz

ed (g

ain)

loss

on

fo

reig

n cu

rren

cy tr

ansa

ctio

ns

Inve

stm

ents

tax

cred

its

NO

N-C

UR

RE

NT

ITE

MS:

Tem

pora

ry d

iffer

ence

s

Exp

ense

s ca

rrie

d fo

rwar

d

Dep

reci

atio

n ex

pens

es

Inv

estm

ent i

ncom

e or

loss

Pen

sion

cos

t

Los

s ca

rryf

orw

ards

Inve

stm

ent t

ax c

redi

ts

Val

uatio

n al

low

ance



(3) As of December 31, 2003, unused investment tax credits for purchase of machinery and equipment, research expenditure, personnel training expenditure and the stockholders’ investment tax credits were $477,015, which will expire between 2006 and 2007.

(4) The Company's income tax returns for the years through 2000 have been assessed and approved by the Tax Authority. As of March 30, 2004, there were no disputes existing between the Company and the Tax Authority.

21. BASIC EARNINGS PER COMMON SHARE (EPS)

2003 Weighted average number

of shares Amount outstanding during the EPS (in NT dollars)

Before tax After tax year(shares in thousands) Before tax After taxNet income

2002

Weighted average number of shares

Amount outstanding during the EPS (in NT dollars)


Weighted average number of shares outstanding during the year has been adjusted retroactively in accordance with the capitalization of retained earnings in 2003.


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Note 5 RELATED-PARTY TRANSACTIONS

1.Related parties and their relationship with the Company

Name of related parties Relationship with the Company Cayman President Holdings Ltd. Subsidiary accounted for under the equity method Kai Yu Investment Co., Ltd. Subsidiary accounted for under the equity method Tone Sang Construction Corp. Subsidiary accounted for under the equity method Uni-President Dream Parks Corp. Subsidiary accounted for under the equity method President Baseball Team Corp. Subsidiary accounted for under the equity method Nanlien International Corp. Subsidiary accounted for under the equity method President International Development Subsidiary accounted for under the equity method Corp. President Nisshin Corp. Subsidiary accounted for under the equity method President Kikkoman Inc. Subsidiary accounted for under the equity method President Chain Store Corp. Subsidiary accounted for under the equity method Ton Yi Industrial Corp. Subsidiary accounted for under the equity method TTET Union Corp. Subsidiary accounted for under the equity method Qware Systems & Services Corp. Subsidiary accounted for under the equity method President Packaging Ind. Corp. Subsidiary accounted for under the equity method Ztong Yee Industrial Co., Ltd. Subsidiary accounted for under the equity method Uni-President Cold-Chain Corp. Subsidiary accounted for under the equity method Retail Support International Corp. Subsidiary accounted for under the equity method Prince Housing Development

Corp.

Common chairman

Uni-President Vender Corp. A subsidiary of Kai Yu Investment Co., Ltd. (accounted for under the equity method)

Tung Ang Enterprises Corp. A subsidiary of Kai Yu Investment Co., Ltd. (accounted for under the equity method)

Kuan Chang Enterprises Corp. A subsidiary of Nanlien International Corp. (accounted for under the equity method) Tung-Tse Corp. A subsidiary of Nanlien International Corp. (accounted for under the equity method) Tun Hsiang Enterprises Corp. A subsidiary of Nanlien International Corp. (accounted for under the equity method) Tung-Yu Enterprises Corp. A subsidiary of Nanlien International Corp. (accounted for under the equity method) Tung Guan Egg Corp. A subsidiary of Nanlien International Corp. (accounted for under the equity method)



2. Transactions with related parties

(1) Sales 2003 2002

Percentage Percentage

of net of net Amount sales Amount sales Tung Ang Enterprises Corp. Uni-President Cold- Chain Corp. President Chain Store Corp. Others (individually

less than 10%)

The terms of collection period at December 31, 2003 were two weeks after sales to third parties, one month by notes to related parties and 60~75 days after sales to foodstuff and animal feed and 10-15 days after sales to soybean products, except that the collection period is two months for sales to the corporations of outlet channel; one month for sales to the corporations that operate both in outlet channel and traditional channel; two weeks for sales to the corporations of traditional channel; Retail Support International Corp. close it amount 30 days within the end of each month (2 months after sale for the six-month period ended June 30, 2003); Uni-President Vender Corp. closes its accounts 20 days within the end of each month Tung Aug Enterprises Corp. closes its accounts every 10 days and remit within 40 days (10 day after sales for the three-month period ended March 31, 2002); Uni-President Cold - Chain Corp. closes its accounts 40 days within the end of each month; President Chain Store Corp. closes its accounts 30 days within the end of each month(20 days for the three-month period ended March 31, 2002). Except for the collection period mentioned above, other terms of sales were the same to related and third parties.


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(2) Purchases

2003 2002

Percentage Percentage

of net of net Amount purchases Amount purchasesPresident Kikkoman Inc. TTET Union Corp. President Nisshin Ind. Corp. President Packaging Corp. Others (individually

less than 10%)

The terms of purchases and payments (due within one month) to the related parties were the same as those with regular suppliers except for the following companies:

(1) TTET Union Corp. closes its account at the end of each month, and pays within one week with post dated checks due in 30-45 days.

(2) Ton Yi Industrial Corp. pays its account within 50 days. (3) President Nisshin Corp. pays its account within 15 days.

(3) Purchase of Investments


Oware Systems & Services Corp.

Prince Housing & Development Corp.

The Company purchased 6,474,000 shares of common stocks of President Packaging Ind. Corp. from President Chain Store Corp. and 1,518,000 shares of common stocks of President Information Corp. from Oware Systems & Services Corp. and Prince Housing & Development Corp.



(4) S

ale

of in

vest

men

ts

S

ellin

g pr

ice

Boo

k va

lue

G

ain

Sel

ling

pric

e

B

ook

valu

e

Gai

n

K

ai Y

u In

vest

men

t Co.

, Ltd

. Pr

esid

ent C

hain

Sto

re C

orp.

(A) T

he C

ompa

ny in

crea

se in

vest

men

t in

Kai

Yu

Inve

stm

ent C

o., L

td. b

y 99

,700

,000

sha

res

of th

e co

mm

on s

tock

s of

Ton

pal O

ptoe

lect

roni

cs

Cor

p. in

200

3.

(B)

The

Com

pany

sol

d th

e 3,

960,

000

shar

es o

f th

e co

mm

on s

tock

s of

Pre

side

nt P

harm

aceu

tical

Cor

p. a

nd 3

6,20

8,00

0 sh

ares

of

the

com

mon

stoc

ks o

f Pre

sica

rre

Cor

p. to

Pre

side

nt C

hain

Sto

re C

orp.

at n

egot

iate

d pr

ice

in 2

002.

(5) P

urch

ases

of p

rope

rty, p

lant

and

equ

ipm

ent

Ite

m

Q

war

e Sy

stem

s &

Ser

vice

Cor

p.

Fur

nitu

re a

nd fi

xtur

es

Oth

er (i

ndiv

idua

lly le

ss th

an 1

0%)

Tra

nspo

rtatio

n eq

uipm

ent,

Furn

iture

and

fixt

ures

and

O

ther

equ

ipm

ent.

The

Com

pany

pur

chas

ed a

bove

fixe

d as

sets

from

rela

ted

parti

es a

t neg

otia

ted

pric

es.

(6) D

ispo

sal o

f pro

perty

, pla

nt a

nd e

quip

men

t

S

ellin

g pr

ice

Boo

k va

lue

Gai

n

S

ellin

g pr

ice

B

ook

valu

e

Gai

n

Tone

San

g C

onst

ruct

ion

Cor

p.

Ret

ail S

uppo

rt In

tern

atio

nal C

orp.

U

ni-P

resi

dent

Col

d-C

hain

Cor

p.

Oth

ers

(indi

vidu

ally

less

than

10

%)

The

Com

pany

sol

d fix

ed a

sset

s to

rela

ted

parti

es a

t neg

otia

ted

pric

es.


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(7) Processing expenses

TTET Union Corp.

(8) Other expenses

Advertisement expenses

Uni-President Dream Parks Corp.

President Baseball Team Corp.

Others (less than 10%)

Other expenses Kuan Chang Enterprises Corp.

Uni-President Cold-Chain Corp.

Oware Systems & Services Corp. Others (individually less than 10%)

(9) Rental income

Rent collection frequencyUni-President Vender Corp. Monthly Retail Support International Corp. Monthly

Others (individually less than 10%)

Monthly

Rents are charged based on the existing lease agreements at negotiated

prices.



(10) Other income

Management and technical consultancy

fees:

Ztong Yee Industrial Co., Ltd.



Other income

Tung Hsiang Enterprises Corp.

Tung-Yu Enterprises Corp.


(11) Notes receivable December 31, 2003 December 31, 2002

Amount Percentage Amount PercentageTung Guan Egg Corp. President Nisshin Corp. Tung-Tse Corp. Others (individually less than

10%)

(12) Accounts receivable December 31, 2003 December 31, 2002

Amount Percentage Amount PercentageUni-President Cold-Chain Corp. Retail Support

International Corp. Tung Ang Enterprises Corp. Tun Hsiang Enterprises Corp.President Chain Store Corp. Others (individually less than

10%)


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(13) Other receivables December 31, 2003 December 31, 2002 Amount Percentage Amount PercentageZtong Yee Industrial Co.,

Ltd.


President Kikkoman Inc.


Tun Hsiang Enterprises Corp.


(14) Long-term notes receivable and accounts receivable December 31, 2003 December 31, 2002

Amount Percentage Amount PercentageTone Sang Construction Corp.

(15) Accounts payable December 31, 2003 December 31, 2002

Amount Percentage Amount PercentagePresident Kikkoman Inc.


President Packaging

Ind. Corp.

President Nisshin Corp.

TTET Union Corp.


(16) Accrued expenses December 31, 2003 December 31, 2002

Amount Percentage Amount PercentageUni-President Dream Parks

Corp.Others (individually less

than 10%)



3. Contingent liabilities and commitments

(1) The amount endorsed and guaranteed for related parties are as follows:

December 31, 2003 December 31, 2002




(2) On August 24, 1998, the Company and seven other companies (including the Prince Housing Development Corp.) jointly purchased a parcel of land (located in Shin-Yi District Lot No. 6) with an area of 9,643 m2 from the Ministry of National Defence. The Company shared 20% ownership of the land. According to the “PEC National Building Construction Contract” dated November 6, 1998, the Company will contribute 20% of the capital in cash and share the obligation and right accordingly.

(3) In July, 2000, President Chain Store Corp. signed a permanent technical cooperation contract (the Contract) with the Southland Corporation . Under the terms of the contract the Company agrees that:

(A) The Company guarantees that President Chain Store Corp. will fulfil all payments or other obligations to Southland Corporation due under the Contract.

(B) Without the written approval of Southland Corporation in advance, the Company may not sell, transfer, or pledge the ownership or the assets of President Chain Store Corp.

(C) The Company should maintain no less than 45% ownership of President Chain Store Corp. In May 2001, the minimal ownership was revised to 40%.


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Note 6 PLEDGED ASSETS

As of December 31, 2003 and 2002, the pledged assets were as follows:

Purpose of December December

Assets collateral 31, 2003 31, 2002 Land Revolving credit facility Buildings - net Revolving credit facility Machinery and Revolving credit equipment - net facility

Note 7 CONTINGENT LIABILITIES AND COMMITMENTS As of December 31, 2003 and 2002, the following shows the contingent liabilities and commitments of the company except note 5(3).

1. As of December 31, 2003 and 2002, the remaining balance due for construction in progress and advances to suppliers were as follows:


Construction in progress

Advance to suppliers

2. As of December 31, 2003, and 2002, total letters of credit opened and unused were $1,071,179 and $1,205,809, respectively.

3. In August 2000, the Company borrowed $4,200,000 under a 5-year term syndicated credit facility agreement from October 5, 2000 to October 5, 2005 led by Taiwan Industry Bank Corp., Union World Chinese Commercial Bank and Taiwan Land Bank. Under the terms of the loan agreement, the Company agrees that’s(1) The current ratio shall be above 70%. (2) The debt ratio shall be below 100%. (3) The ratio of liabilities and amount of guarantee to tangible net worth shall be

below 150%. (4) Any substantial investment plan such as purchase or disposal of assets, substantial

change of business or organization and sale, transfer, lease, and other arrangements of major assets shall require written consent from bank syndication.



4. In June 2001, the Company signed a $6,000,000 5-year syndicated credit facility agreement including Note issuance facilities and Unsecured bank loans from June 28, 2001 to June 28, 2006 led by International Commercial Bank of China and Chiao Tung Bank. Under the terms of the loan agreement, the Company agrees that(1) The current ratio shall be above 80%. (2) The debt ratio shall be below 100% from 2000, retroactively. (3) If the ratios mentioned above do not meet the requirements, the Company

should improve it before the June 30 of the next year. (4) To ensure that, any substantial investment plan such as purchase or disposal of

assets, substantial change of business or organization shall be communicated to the management bank. The lead bank may call a meeting of the leaders to discuss above events as needed.

5. In September 2002, the Company signed a $6,000,000 5-year syndicated credit facility agreement, including Note issuance facilities and unsecured bank loans from September 18, 2002 to September 18, 2007 led by Taiwan Bank, BNP PARIBAS, DBS Bank and Standard Chartered Bank. Under the terms of the loan agreement, the Company agrees that(1) The year-end audited consolidated tangible stockholder’s equity shall not be less

than $30,000,000. (2) The debt ratio computed from the year-end non-consolidated audited financial

statements shall not be above 150%. (3) The interest coverage ratio computed from the year-end non-consolidated

audited financial statements shall not be below 200%. (4) The current ratio computed from the year-end non-consolidated audited financial

statements shall not be below 80%.

Note 8 SIGNIFICANT LOSS OF NATURAL DISASTER AND LOSS: None.

Note 9 SIGNIFICANT SUBSEQUENT EVENT:

As approved by the meeting of the Board of Directors on March 1, 2004, the Company purchased 30,038,000 shares of Kuang Chuan Co., Ltd. at $32.0117 per share (in dollars) from We-Chuan Investment Co., Ltd. etc.. According to the contract , the Company will purchase 22,000 shares (purchasing price at $22,440) of Kuang Chuan Co., Ltd. and 6,600,000 shares (purchasing price at $66,000) of Hi-Life International Co., Ltd., respectively. The total amount of purchasing price was $1,050,000.

Note 10 OTHER :

1.INFORMATION OF DERIVATIVE FINANCIAL INSTRUMENTS

The information of the Interest Rate Swap Contracts at December 31, 2003 and 2002, was disclosed as follows (units in the thousands of currencies indicated)


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a. Contract amount or notional principals amount and credit risk


Contract amount Contract amount

(Notional principal (Notional principal

Derivative financial instruments amount) Credit risk amount) Credit risk

Interest Rate Swap Contracts $ $ $ $

Non-Delivery Forward

As the counterparties are banks with good credit ratings, the credit risk is minimal.

b. Market risk

The main purpose of holding derivative financial instruments is for hedging. Gain or loss resulted from the fluctuation of market interest rates will be offset by the gain or loss incurred from the underlying hedged items. Accordingly, the market risk is immaterial.

c. Liquidity risk, cash flow risk and amount, timing and uncertainty of future cash demand

The purpose or holding derivative financial instruments is for hedging. Due to the interest or exchange rates on the contracts are certain and hence the working capital of the Company should be sufficient. Accordingly, the liquidity risk is low.

d. Type of derivative financial instruments, the objectives of holding derivative financial instruments, and the strategy for achieving the objectives

(a)Transaction terms:

Interest rate swap contracts:

From December 16, 2002 to November 13, 2003, the company signed a contract agreeing to pay or receive every three months or six months the difference between floating and fixed interest rates during the 5- year period of the contracts.

Non-Delivery Forward:

The company and the bank has approve the foreign currency settlement on maturity date is the difference between the original forward rate and the official rate designated at settlement.

(b)The company sign the Interest Rate Swap Contract to hedge the effects of secured domestic bonds denominated from fluctuations of interest and exchange rates. The hedging instruments are derivative financial instruments with inverse relationships with the market value of the hedged positions and they are evaluated periodically.



e. Presentation of derivative financial instruments on the financial statements

The liabilities and assets resulted from the Interest Rate Swap Contracts were offset. As of December 31, 2003, the net amount resulting from the Interest Rate Swap Contracts are $16,558 of other receivable and the reduction of interest expenses.

As of December 31, 2003, the exchange profit from the settlement of Non-Delivery Forward is $7,970, which estimated by the amount of contract multiplied the difference between the original forward rate and the official rate designated at settlement.

2. FAIR VALUE OF NON–DERIVATIVE FINANCIAL INSTRUMENTS

December 31, 2003 December 31, 2002 Book value Fair value Book value Fair value

Financial assets Financial assets with book value equal to fair value Long-term investments Guaranteed deposits Long-term receivables

Financial liabilities Financial liabilities with book value equal to fair value Bonds payables Long-term loans Long-term payables Long-term lease payables Provision for retirements planCustomers’ deposits Other Liabilities-other

The methods and assumptions applied on the fair values of financial instruments are summarized as follows:

(1) The carrying amounts of short-term non-derivative financial instruments which include cash and cash equivalents, notes and accounts receivable, other receivables, short-term loans, notes and accounts payable, income tax payable, accrued expenses, other payables, the current portion of long-term liabilities and other current liabilities, approximate the fair values due to their short maturities.


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(2) The fair value of long-term investments and other liabilities-other are based on the market value. The fair value of investments without any market value are estimated based on the net equities of the investee companies, whose financial statements are audited under the equity method or not audited under the cost method. The fair value of which under the lower of cost or market value method are estimated based on the closing price at the balance sheet date.

(3) The fair value of guaranteed deposits and long-term receivables is based on the discounted value of expected future cash inflows, which are discounted based on the interest rate of one-year time deposit of the Postal Savings System at December 31, 2003 and 2002, respectively.

(4) The fair value of bonds payable, long-term loans, long-term notes payable, long-term payables and customers’ deposits is based on the discounted value of expected future cash inflows, which are discounted based on the interest rates of long-term loans at December 31, 2003 and 2002, respectively.

(5) The fair value of provision for retirement plan is based on the funding status presented on the actuarial report measured at November 30, 2003 and 2002.

3.PRESENTATION OF FINANCIAL STATEMENT

Certain accounts the 2002 financial statements have been reclassified to conform with the presentation adopted for 2003 financial statements.



Not

e.11

Add

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$10

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(Not

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In a

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The

code

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as fo

llow

:


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.(N

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ry Q

uick

Ser

vice

Res

taur

ant C

orp

(Not

e 2)

0Pr

esid

ent P

acka

ging

Inc.

Cor

p.(N

ote

2)

0Pr

esid

ent I

nter

natio

nal T

rade

and

(N

ote

2)

Inv

estm

ent (

BV

I) C

orp.

0U

ni-P

resi

dent

Sou

thea

st A

sia

(Not

e 2)

Hol

ding

s L

imite

d.

0Pr

esite

x C

o., L

td.

(Not

e 2)

0Pr

esid

ent E

nter

tain

men

t C

orp.

(Not

e 2)

End

orse

rE

ndor

see



acc

umul

ated

Rel

atio

nshi

p e

ndor

sem

ent

with

the

The

out

stan

ding

amou

nt t

o ne

t

Com

pany

End

orse

men

t lim

itT

he h

ighe

st b

alan

ce

bal

ance

at

Bal

ance

sec

ured

wor

th o

f the

Max

imum

am

ount

Num

ber

Nam

e of

end

orse

rsN

ame

of e

ndor

sees

(Not

e 1)

for a

sin

gle

entit

y d

urin

g 20

03 1

2/31

/200

3 b

y co

llate

ral

Com

pany

(%)

of e

ndor

sem

ent

End

orse

rE

ndor

see

0Pr

esid

ent G

loba

l Cor

p.(N

ote

2)

0Pr

esid

ent D

igita

l Net

wor

k C

orp.

(Not

e 2)

0Pr

esid

ent O

rgan

ics

Co.

(Not

e 2)

0U

ni-P

resi

dent

Foo

d C

orp.

(Not

e 2)

0Pr

esid

ent B

aseb

all T

eam

Cor

p.(N

ote

2)

1C

aym

an P

resi

dent

Hol

ding

Ltd

.PT

AB

C P

resi

dent

Ent

erpr

ises

(Not

e 3)

In

done

sia

2Pr

esid

ent I

nter

natio

nal T

rade

Shan

ghai

Pre

side

nt In

tern

atio

nal F

ood

(Not

e 4)

and

Inve

stm

ent (

BV

I) C

orp.

Co.

, Ltd

.

3K

ai Y

u In

vest

men

t Co.

, Ltd

.U

ni-P

resi

dent

Ent

erpr

ise

Cor

p.(N

ote

5)

4N

anlie

n In

tern

atio

nal C

orp.

Nel

la L

td.

(Not

e 6)

4L

ien

Lu

Ent

erpr

ises

Cor

p.(N

ote

6)

4W

ei L

ian

Ent

erpr

ises

Cor

p.(N

ote

6)

4U

nion

Chi

nese

Cor

p.(N

ote

6)

4T

ung

Jun

Inte

rnat

iona

l Cor

p.(N

ote

6)

4U

ni-P

resi

dent

Ent

erpr

ise

Cor

p.(N

ote

6)

4C

heng

Mia

o C

o., L

td.

(Not

e 6)

4T

ung

Lie

n E

nter

pris

es C

orp.

(Not

e 6)

4T

ung

Yu

Ent

erpr

ises

Cor

p.(N

ote

6)

4T

ung

Shen

Ent

erpr

ises

Cor

p.(N

ote

6)

4L

iang

Tun

g E

nter

pris

es C

orp.

(Not

e 6)

5Pr

esid

ent I

nter

natio

nal

Pres

iden

t Med

ical

Tec

hnol

ogie

s C

orp.

, (N

ote

7)

5 D

evel

opm

ent C

orp.

G-A

dvan

ced

Sem

icon

duct

or

(Not

e 7)

Tec

hnol

ogy

Cor

p.

5Pr

esite

x C

o., L

td.

(Not

e 7)

5Pr

esid

ent (

BV

I)In

tern

atio

nal

(Not

e 7)

Inv

estm

ent H

oldi

ngs

Ltd

.


AU

DIT

OR

'SR

EP

OR

TA

ND

FIN

AN

CIA

LS

TA

TE

ME

NT

S

acc

umul

ated

Rel

atio

nshi

p e

ndor

sem

ent

with

the

The

out

stan

ding

amou

nt t

o ne

t

Com

pany

End

orse

men

t lim

itT

he h

ighe

st b

alan

ce

bal

ance

at

Bal

ance

sec

ured

wor

th o

f the

Max

imum

am

ount

Num

ber

Nam

e of

end

orse

rsN

ame

of e

ndor

sees

(Not

e 1)

for a

sin

gle

entit

y d

urin

g 20

03 1

2/31

/200

3 b

y co

llate

ral

Com

pany

(%)

of e

ndor

sem

ent

End

orse

rE

ndor

see

6T

ung

Ho

Dev

elop

men

t Co.

, Ltd

.G

u-H

sian

g C

orp.

(Not

e 8)

7Pr

esid

ent C

hain

Sto

re C

orp.

Pres

iden

t Tra

nsne

t Cor

p.(N

ote

9)

7Pr

esid

ent D

rugs

tore

Bus

ines

s C

orp.

(Not

e 9)

7M

ech-

Pres

iden

t Co.

(Not

e 9)

7Pr

esid

ent C

hain

Sto

re (B

VI)

Hol

ding

s(N

ote

9)

Ltd

.

7Ph

ilipp

ine

Seve

n C

orp.

(Not

e 9)

7Pr

esid

ent P

acka

ging

Ind.

Cor

p.(N

ote

9)

7Pr

esid

ent Y

amak

o C

orp.

(Not

e 9)

8T

on-Y

i Ind

ustr

ial C

orp.

Cay

man

Ton

Yi I

ndus

tiral

Hol

ding

s(N

ote

10)

L

td.

8Fu

jian

Ton

Yi T

inpl

ate

Co.

, Ltd

.(N

ote

10)

8W

uxi T

on Y

i Ind

ustr

ial P

acka

ging

(Not

e 10

)

C

orp.

8Ji

angs

u T

on Y

i Tin

plat

e C

o., L

td.

(Not

e 10

)

8C

heng

du T

on Y

i Tin

plat

e C

o., L

td.

(Not

e 10

)

9K

ai Y

u (B

VI)

Inve

stm

ent C

o.,

Shan

ghai

Pre

side

nt C

offe

e C

o., L

td.

(Not

e 11

)

L

td.

10Pr

esid

ent H

otel

Inc.

Pres

iden

t Asi

an E

nter

pris

es In

c.(N

ote

12)

11Pr

esid

ent C

hain

Sto

re (B

VI)

Sh

angh

ai P

resi

dent

Cof

fee

Co.

, Ltd

.(N

ote

13)

Hol

ding

s L

td.

12C

aym

an T

on Y

i Ind

ustir

al

Che

ngdu

Ton

Yi I

ndus

tria

l Pac

kagi

ng

(Not

e 14

)

Hol

ding

s L

td.

C

orp.

12Ji

angs

u T

on Y

i Tin

plat

e C

o., L

td.

(Not

e 14

)

12W

uxi T

on Y

i Ind

ustr

ial P

acka

ging

(Not

e 14

)

C

orp.

12Fu

jian

Ton

Yi T

inpl

ate

Co.

, Ltd

.(N

ote

14)



acc

umul

ated

Rel

atio

nshi

p e

ndor

sem

ent

with

the

The

out

stan

ding

amou

nt t

o ne

t

Com

pany

End

orse

men

t lim

itT

he h

ighe

st b

alan

ce

bal

ance

at

Bal

ance

sec

ured

wor

th o

f the

Max

imum

am

ount

Num

ber

Nam

e of

end

orse

rsN

ame

of e

ndor

sees

(Not

e 1)

for a

sin

gle

entit

y d

urin

g 20

03 1

2/31

/200

3 b

y co

llate

ral

Com

pany

(%)

of e

ndor

sem

ent

End

orse

rE

ndor

see

13Pr

esid

ent E

nter

pris

es (C

hina

) T

ianj

iang

Pre

side

nt E

nter

pris

es F

ood

(Not

e 15

)

Inve

stm

ent C

o., L

td.

Co.

, Ltd

.

13X

injia

ng P

resi

dent

Ent

erpr

ises

Foo

d (N

ote

15)

Co.

, Ltd

.

13Pe

ijing

Pre

side

nt E

nter

pris

es D

rink

s(N

ote

15)

& F

ood

Co.

, Ltd

.

13Q

ingd

ao P

resi

dent

Fee

d &

Liv

esto

ck(N

ote

15)

C

o., L

td.

13H

efei

Pre

side

nt E

nter

pris

es C

o., L

td.

(Not

e 15

)

14Fu

jian

Ton

Yi T

inpl

ate

Co.

, Ltd

.Ji

angs

u T

on Y

i Tin

plat

e C

o., L

td.

(Not

e 14

)

15Ji

angs

u T

on Y

i Tin

plat

e C

o.,

Fujia

n T

on Y

i Tin

plat

e C

o., L

td.

(Not

e 14

)

15 L

td.

Wux

i Ton

Yi I

ndus

tria

l Pac

kagi

ng

(Not

e 14

)

C

orp.

16W

uxi T

on Y

i Ind

ustr

ial

Jian

gsu

Ton

Yi T

inpl

ate

Co.

, Ltd

.(N

ote

14)

Pa

ckag

ing

Cor

p.Fu

jian

Ton

Yi T

inpl

ate

Co.

, Ltd

.(N

ote

14)

17C

heng

du T

on Y

i Ind

ustr

ial

Jian

gsu

Ton

Yi T

inpl

ate

Co.

, Ltd

.(N

ote

14)

17

Pack

agin

g C

orp.

Fujia

n T

on Y

i Tin

plat

e C

o., L

td.

(Not

e 14

)

18K

unsh

an P

resi

dent

Ent

erpr

ises

H

efei

Pre

side

nt E

nter

pris

es C

o., L

td.

(Not

e 16

)

Fo

od C

o., L

td.

Shen

yang

Pre

side

nt E

nter

pris

es C

o.,

(Not

e 16

)

Ltd

.

Xin

jiang

Pre

side

nt E

nter

pris

es F

ood

(Not

e 16

)

Co.

, Ltd

.

19G

uang

zhou

Pre

side

nt E

nter

pris

esFu

zhou

Pre

side

nt E

nter

pris

es C

o., L

td.

(Not

e 16

)

C

o., L

td.

20W

uhan

Pre

side

nt E

nter

pris

es

Shen

yang

Pre

side

nt E

nter

pris

es C

o.,

(Not

e 16

)

Fo

od C

o., L

td.

Ltd

.

20N

anch

ang

Pres

iden

t Ent

erpr

ises

Co.

, (N

ote

16)

L

td.

21Sh

enya

ng P

resi

dent

Ent

erpr

ises

Har

bin

Pres

iden

t Ent

erpr

ises

Co.

, Ltd

.(N

ote

17)

Co.

, Ltd

.


AU

DIT

OR

'SR

EP

OR

TA

ND

FIN

AN

CIA

LS

TA

TE

ME

NT

S

(Not

e1)T

he fo

llow

ing

code

repr

esen

ts th

e re

latio

nshi

p w

ith th

e C

ompa

ny:

1. T

radi

ng p

artn

er.

2. M

ajor

ity o

wne

d su

bsid

iary

.

3. A

sub

sidi

ary

join

tly o

wne

d by

the

Com

pany

and

the

Com

pany

’s d

irec

tly-o

wne

d su

bsid

iary

.

4. A

par

ent c

ompa

ny.

6. A

n in

vest

ee c

ompa

ny. T

he g

uara

ntee

s w

ere

prov

ided

bas

ed o

n th

e C

ompa

ny’s

pro

port

iona

te s

hare

in th

e in

vest

ee c

ompa

ny.

(Not

e 2)

The

tota

l am

ount

of t

rans

actio

ns o

f end

orse

men

t equ

al to

100

% o

f the

Com

pany

’s n

et w

orth

, an

d th

e lim

it of

end

orse

men

t for

any

sin

gle

entit

y is

50%

of t

he C

ompa

ny’s

net

wor

th, a

nd a

ll of

the

rela

ted

bu

sine

sses

are

to b

e su

bmitt

ed to

sto

ckho

lder

s’ m

eetin

g fo

r ref

eren

ce.

(Not

e 3)

The

tota

l am

ount

of t

rans

actio

ns o

f end

orse

men

t eq

ual t

o 10

0% o

f its

net

wor

th fo

r Cay

man

Pre

side

nt H

oldi

ngs

Ltd

. , a

nd th

e lim

it of

tran

sact

ions

of e

ndor

sem

ent f

or a

ny s

ingl

e en

tity

is 5

0% o

f the

its

net

w

orth

, and

all

of th

e re

late

d bu

sine

sses

are

to b

e su

bmitt

ed to

the

Boa

rd o

f Dir

ecto

rs’ m

eetin

g fo

r ref

eren

ce.

(Not

e 4

)The

tota

l am

ount

of t

rans

actio

ns o

f end

orse

men

t equ

al to

100

% o

f its

net

wor

th fo

r Pre

side

nt In

tern

atio

nal T

rade

and

Inv

estm

ent C

orp.

and

the

limit

of tr

ansa

ctio

ns o

f end

orse

men

t for

any

sin

gle

entit

y is

50%

of t

heir

net

wor

th, a

nd a

ll of

the

rela

ted

busi

ness

es a

re to

be

subm

itted

to s

tock

hold

ers'

mee

ting

for r

efer

ence

.(N

ote

5 )T

he to

tal a

mou

nt o

f tra

nsac

tions

of e

ndor

sem

ent e

qual

to 1

00%

of

its n

et w

orth

for K

ai Y

u In

vest

men

t Co.

, Ltd

. and

the

limit

of tr

ansa

ctio

ns o

f end

orse

men

t for

any

sin

gle

entit

y is

50%

of t

heir

net

w

orth

, and

all

of th

e re

late

d bu

sine

sses

are

to b

e su

bmitt

ed to

sto

ckho

lder

s' m

eetin

g fo

r ref

eren

ce.

(Not

e 6)

The

tota

l am

ount

of t

rans

actio

ns o

f end

orse

men

t for

Nan

lien

Inte

rnat

iona

l Cor

p. L

td. i

s $1

,000

,000

, and

the

limit

of tr

ansa

ctio

ns o

f end

orse

men

t for

any

sin

gle

entit

y is

$50

0,00

0, a

nd a

ll of

the

rela

ted

bu

sine

sses

are

to b

e su

bmitt

ed to

sto

ckho

lder

s’ m

eetin

g fo

r ref

eren

ce.

(Not

e 7)

The

tota

l am

ount

of t

rans

actio

ns o

f end

orse

men

t equ

al to

20%

of i

ts n

et w

orth

for P

resi

dent

Inte

rnat

iona

l Dev

elop

men

t Cor

p. a

nd th

e lim

it of

tran

sact

ions

of e

ndor

sem

ent f

or a

ny s

ingl

e en

tity

is 5

% o

f the

its

net

wor

th, a

nd a

ll of

the

rela

ted

busi

ness

es a

re to

be

subm

itted

to s

tock

hold

ers’

mee

ting

for r

efer

ence

.(N

ote

8) T

he to

tal a

mou

nt o

f tra

nsac

tions

of e

ndor

sem

ent e

qual

to 5

0% o

f its

net

wor

th fo

r Tun

g H

o D

evel

opm

ent C

o., L

td. a

nd th

e lim

it of

tran

sact

ions

of e

ndor

sem

ent f

or a

ny s

ingl

e en

tity

is 4

0% o

f the

its

net

w

orth

, and

all

of th

e re

late

d bu

sine

ss a

re to

be

subm

itted

to s

tock

hold

ers’

mee

ting

for r

efer

ence

.(N

ote

9) T

he to

tal a

mou

nt o

f tra

nsac

tions

of e

ndor

sem

ent e

qual

to 5

0% o

f its

net

wor

th fo

r Pre

side

nt C

hain

Sto

re C

orp.

and

the

limit

of tr

ansa

ctio

ns o

f end

orse

men

t for

any

sin

gle

entit

y is

20%

of t

he it

s ne

t wor

th,

an

d al

l of t

he re

late

d bu

sine

sses

are

to b

e su

bmitt

ed to

sto

ckho

lder

s’ m

eetin

g fo

r ref

eren

ce.

(Not

e 10

) The

tota

l am

ount

of t

rans

actio

ns o

f end

orse

men

t equ

al 7

0% o

f its

net

wor

th fo

r Ton

Yi I

ndus

tria

l Cor

p. a

nd th

e lim

it of

tran

sact

ions

of e

ndor

sem

ent f

or a

ny s

ingl

e en

tity

is 7

0% o

f its

net

wor

th, a

nd a

ll of

th

e re

late

d bu

sine

sses

are

to b

e su

bmitt

ed to

sto

ckho

lder

s’ m

eetin

g fo

r ref

eren

ce.

(Not

e 11

) The

tota

l am

ount

of t

rans

actio

ns o

f end

orse

men

t equ

al to

100

% o

f its

net

wor

th fo

r Kai

Yu

Inve

stm

ent (

BV

I) C

o., L

td. a

nd th

e lim

it of

tran

sact

ions

of e

ndor

sem

ent f

or a

ny s

ingl

e en

tity

is 5

0% o

f the

its

n

et w

orth

, and

all

of th

e re

late

d bu

sine

ss a

re to

be

subm

itted

to th

e B

oard

of d

irec

tors

’ mee

ting

for r

efer

ence

.

(Not

e16)

For a

ll su

bsid

iari

es o

f Pre

side

nt E

nter

pris

es (C

hina

) Inv

estm

ent C

o., L

td, t

he h

ighe

st a

mou

nt o

f tra

nsac

tions

of e

ndor

sem

ent e

qual

to 1

00%

of t

heir

resp

ectiv

e ne

t wor

th, a

nd th

e lim

it of

end

orse

men

t for

any

sin

gle

entit

y is

30%

of t

heir

resp

ectiv

e ne

t wor

th.

(Not

e17)

For a

ll su

bsid

iari

es o

f Pre

side

nt E

nter

pris

es (C

hina

) Inv

estm

ent C

o., L

td, t

he h

ighe

st a

mou

nt o

f tra

nsac

tions

of e

ndor

sem

ent e

qual

to 6

0% o

f the

ir re

spec

tive

net w

orth

, and

the

limit

of e

ndor

sem

ent f

or a

ny

s

ingl

e en

tity

is 2

0% o

f the

ir re

spec

tive

net w

orth

.

(Not

e12)

The

tota

l am

ount

of t

rans

actio

ns o

f end

orse

men

t for

Pre

side

nt H

otel

Inc.

is C

AN

$40,

000,

and

the

limit

of tr

ansa

ctio

ns o

f end

orse

men

t for

any

sin

gle

entit

y is

CA

N$2

0,00

0, a

nd a

ll of

the

rela

ted

busi

ness

es

are

to b

e su

bmitt

ed to

the

Boa

rd o

f dir

ecto

rs’ m

eetin

g fo

r ref

eren

ce.

(Not

e13)

The

tota

l am

ount

of t

rans

actio

ns o

f end

orse

men

t equ

al to

50%

of i

ts n

et w

orth

for P

resi

dent

Cha

in S

tore

(BV

I) H

oldi

ngs

Ltd

. and

the

limit

of tr

ansa

ctio

ns o

f end

orse

men

t for

any

sin

gle

entit

y is

20%

of i

ts

net w

orth

, and

all

of th

e re

late

d bu

sine

ss a

re to

be

subm

itted

to th

e B

oard

of d

irec

tors

’ mee

ting

for r

efer

ence

.(N

ote1

4)A

ll en

dors

emen

ts is

sued

by

Cay

man

Ton

Yi I

ndus

tria

l Hol

ding

s L

td. f

or it

s m

ainl

and-

subs

idia

ries

are

gua

rant

eed

by T

on Y

i Ind

ustr

ial C

orp.

All

endo

rsem

ents

are

impl

emen

ted

base

d on

the

endo

rsem

ent

ru

les

of T

on Y

i Ind

ustr

ial C

orp.

(Not

e15)

The

lim

it of

tran

sact

ions

of e

ndor

sem

ent e

qual

to 1

00%

of i

ts e

nrol

led

capi

tal f

or P

resi

dent

Ent

erpr

ises

(Cha

in) I

nves

tmen

t Co.

, Ltd

. and

the

limit

of tr

ansa

ctio

ns o

f end

orse

men

t for

any

sin

gle

entit

y is

30%

of

its

enro

lled

capi

tal.



Num

ber o

f sha

res

Perc

enta

geIn

vest

ors

Type

of s

ecur

ities

Rel

atio

nshi

p w

ith th

e is

suer

Gen

eral

ledg

er a

ccou

nts

(in th

ousa

nds)

Boo

k V

alue

of o

wne

rshi

pM

arke

t Val

ueN

ote

Uni

-Pre

side

ntSt

ock

Ente

rpris

e C

orp.

Pres

iden

t Int

erna

tiona

l Tra

de a

nd In

vest

men

tSu

bsid

iary

acc

ount

ed b

y eq

uity

met

hod

Long

-term

inve

stm

ents

Cor

p.C

a ym

an P

resi

dent

Hol

ding

Ltd

.K

ai Y

u In

vest

men

t Co.

, Ltd

.K

ai N

an In

vest

men

t Co.

, Ltd

.Pr

esid

ent G

loba

l Cor

p.N

anlie

n In

tern

atio

nal C

orp.

Pres

iden

t Ent

erta

inm

ent

Cor

p.Pr

esid

ent I

nter

natio

nal D

evel

opm

ent C

orp.

Pres

iden

t Cha

in S

tore

Cor

p.To

n-Y

i Ind

ustri

al C

orp.

Tong

-Jen

g D

evel

opm

ent C

orp.

Eagl

e C

old

Stor

age

Ente

rpris

es C

o., L

td.

TTET

Uni

on C

orp.

Pres

iden

t Sec

uriti

es C

orp.

Pres

icar

re C

orp.

Scin

o Ph

arm

Tai

wan

Ltd

.G

rand

Bill

s Fi

nanc

e C

o.Pr

ince

Hou

sing

Dev

elop

men

t Cor

p.D

irect

orTo

npal

Opt

oele

ctro

nics

Inc.

The

subs

idia

r y o

f Ton

g Sh

ou In

vest

men

t Cor

p. i

s its

dire

ctor

New

Cen

tury

Info

-Com

m C

o., L

td.

The

subs

idia

ry o

f Pre

side

nt In

tern

atio

nal

Tra

de a

nd In

vest

men

t Cor

p. is

its

dire

ctor

Chi

natru

st F

inan

cial

Co.

, Ltd

.U

ni-P

resi

dent

Gla

ss In

dust

rial C

o., L

td. e

tc.

Subs

idia

ry a

ccou

nted

by

equi

ty m

etho

d et

c.

Pres

iden

tB

enef

icia

ry C

ertif

icat

es I

nter

natio

nal

Tra

de a

ndEq

uity

Cer

tific

ates

rela

ting

to A

BN

AM

RL

GLO

BA

L R

etai

l Ind

exSh

ort-t

erm

inve

stm

ents

Inve

stm

ent C

orp.

Stoc

kU

ni-P

resi

dent

(USA

), In

c.et

c.A

n in

vest

ee c

ompa

ny o

f Pre

side

nt In

tern

atio

nal

Tra

de a

nd In

vest

men

t Cor

p. a

ccou

nted

by

the

equ

ity m

etho

d

Long

-term

inve

stm

ents

Cay

man

Pre

side

ntB

enef

icia

r y C

ertif

icat

es

Hol

ding

s Lt

d.Eq

uity

Cer

tific

ates

rela

ting

to A

BN

AM

RL

GLO

BA

L R

etai

l Ind

exSh

ort-t

erm

inve

stm

ents

(3)T

he e

ndin

g ba

lanc

e of

sec

uriti

es h

eld

as o

f Dec

embe

r 31,

200

3 w

ere

sum

mar

ized

as

follo

ws

(Uni

t in

thou

sand

s of

cur

renc

ies

indi

cate

d):


AU

DIT

OR

'SR

EP

OR

TA

ND

FIN

AN

CIA

LS

TA

TE

ME

NT

S

Num

ber o

f sha

res

Perc

enta

geIn

vest

ors

Type

of s

ecur

ities

Rel

atio

nshi

p w

ith th

e is

suer

Gen

eral

ledg

er a

ccou

nts

(in th

ousa

nds)

Boo

k V

alue

of o

wne

rshi

pM

arke

t Val

ueN

ote

Stoc

kPr

esid

ent E

nter

pris

es (C

hina

) Inv

estm

ent C

o.,

An

inve

stee

com

pany

of C

aym

an P

resi

dent

Lo

ng-te

rm in

vest

men

ts L

td.

Hol

din g

s Lt

d. a

ccou

nted

by

the

equi

ty m

etho

dU

ni-P

resi

dent

Sou

thea

st A

sia

Hol

ding

Lim

ited.

An

inve

stee

com

pany

of C

aym

an P

resi

dent

Lo

ng-te

rm in

vest

men

ts H

oldi

ngs

Ltd.

acc

ount

ed b

y th

e eq

uity

met

hod

Zhan

gjia

gang

Pre

side

nt N

issh

in F

ood

Co.

, Ltd

.C

argi

ll Pr

esid

ent H

oldi

ngs

Pte

Ltd.

Que

en H

oldi

ngs

(BV

I) L

td.

Cho

ngqi

ng C

arre

four

Hyp

erm

arke

t C

hain

stor

e C

o., L

td.

Zhuh

ai K

irin

Pres

iden

t Bre

wen

y C

o., L

td.

Uni

-Pre

side

nt In

tern

atio

nal (

HK

) Co.

, Ltd

.etc

.K

ai Y

u In

vest

men

tSt

ock

Co.

, Ltd

.C

hina

trust

Fin

anci

al C

o., L

td.

Shor

t-ter

m in

vest

men

tsK

ai Y

u (B

VI)

Inve

stm

ent C

o., L

td.

An

inve

stee

com

pany

of K

ai Y

u In

vest

men

t Lo

ng-te

rm in

vest

men

ts C

o., L

td. a

ccou

nted

by

the

equi

ty m

etho

dTo

npal

Opt

oele

ctro

nics

Inc.

The

subs

idia

ry o

f Ton

g Sh

ou In

vest

men

t C

orp.

is it

s di

rect

orTo

n-Y

i Ind

ustri

al C

orp.

etc.

Subs

idia

ry a

ccou

nted

by

equi

ty m

etho

d et

c.(N

ote

1)

Kai

Nan

Inve

stm

ent

Ben

efic

iary

Cer

tific

ates

Co.

, Ltd

.H

ome-

Run

Fun

dSh

ort-t

erm

inve

stm

ents

Stoc

kD

alia

n B

eilia

ng L

ogis

tics

Serv

ices

Cor

p.Lo

ng-te

rm in

vest

men

tsPr

esid

ent S

ecur

ities

Cor

p.Su

bsid

iary

acc

ount

ed b

y eq

uity

met

hod

Pres

iden

t Glo

bal

Stoc

k C

orp.

Am

erip

ec In

c.et

c.A

n in

vest

ee c

ompa

ny o

f Pre

side

nt G

loba

l Cor

p.

Long

-term

inve

stm

ents

acc

ount

ed b

y th

e eq

uity

met

hod

Tone

San

g B

enef

icia

ry C

ertif

icat

es C

onst

ruct

ion

Cor

p.To

ng S

hing

Fun

d et

c.Sh

ort-t

erm

inve

stm

ents

Stoc

kH

uaire

n C

orp.

The

subs

idia

ry o

f Ton

San

g C

onst

ruct

ion

Long

-term

inve

stm

ents

Cor

p. is

its

dire

ctor



Num

ber o

f sha

res

Perc

enta

geIn

vest

ors

Type

of s

ecur

ities

Rel

atio

nshi

p w

ith th

e is

suer

Gen

eral

ledg

er a

ccou

nts

(in th

ousa

nds)

Boo

k V

alue

of o

wne

rshi

pM

arke

t Val

ueN

ote

Uni

-Pre

side

nt D

ream

Sto

ck P

arks

Cor

p.U

ni-O

ao T

rave

l Ser

vice

s C

orp.

An

inve

stee

com

pany

of U

ni-P

resi

dent

Dre

am

Par

ks C

orp.

acc

ount

ed b

y eq

uity

met

hod

Uni

-Pre

side

nt G

lass

Ben

efic

iary

Cer

tific

ates

Indu

stria

l Co.

, Ltd

. Ja

mes

Bon

d Fu

ndSh

ort-t

erm

inve

stm

ents

Nan

lien

Inte

rnat

iona

l St

ock

Cor

p.To

n-Y

i Ind

ustri

al C

orp.

etc.

Subs

idia

ry a

ccou

nted

by

equi

ty m

etho

d et

c.Sh

ort-t

erm

inve

stm

ents

Cay

man

Nan

lien

Hol

ding

s Lt

d. e

tc.

An

inve

stee

com

pany

of N

anlie

n In

tern

atio

nal

Long

-term

inve

stm

ents

Cor

p. a

ccou

nted

by

the

equi

ty m

etho

d et

c.Pr

esid

ent N

atur

al

Stoc

kIn

dust

rial C

orp.

Pres

iden

t Org

anic

s C

o.Lo

ng-te

rm in

vest

men

tsPr

esid

ent

Ben

efic

iary

Cer

tific

ates

Ent

erta

inm

ent C

orp.

Ton g

Shi

ng F

und

Shor

t-ter

m in

vest

men

tsPa

rabo

la C

reat

ive

Ben

efic

iary

Cer

tific

ates

Inc.

Jam

es B

ond

Fund

etc

.Pr

esid

ent

Con

verti

ble

Bon

d In

tern

atio

nal

OPT

O T

ech

Cor

p. C

onve

rtibl

e B

ond

etc.

Dev

elop

men

t Cor

p.W

arra

nts

Stoc

kW

orld

Pea

ce In

dust

rial C

o., L

td.W

arra

nts

Stoc

kSt

ock

Ton-

Yi I

ndus

trial

Cor

p.Su

bsid

iary

acc

ount

ed b

y eq

uity

met

hod

Shor

t-ter

m in

vest

men

ts(N

ote

2)Ta

iwan

Cel

lula

r Cor

p.et

c.Pr

esid

ent (

BV

I)In

tern

atio

nal I

nves

tmen

tA

n in

vest

ee c

ompa

ny o

f Pre

side

nt In

tern

atio

nal

Long

-term

inve

stm

ents

Ltd

. D

evel

o pm

ent C

orp.

acc

ount

ed b

y eq

uity

met

hod

Pres

iden

t Life

Sci

ence

s C

o., L

td.

(Not

e 3)

Ton

Yu

Inve

stm

ent I

nc.

Tong

-Jen

g D

evel

opm

ent C

orp.

Subs

idia

ry a

ccou

nted

by

equi

ty m

etho

d(N

ote

4)Pr

esid

ent E

nter

tain

men

t C

orp.

(Not

e 5)

SYN

ergy

Sci

enTe

ch C

orp.

An

inve

stee

com

pany

of P

resi

dent

Inte

rnat

iona

l (N

ote

6) D

evel

opm

ent C

orp.

acc

ount

ed b

y eq

uity

met

hod

Kan

g N

a H

siun

g En

terp

rises

Co.

, Ltd

.(N

ote

7)Tu

ng T

ing

Gas

Cor

pora

tion

The

subs

idia

ry o

f Pre

side

nt In

tern

atio

nal

(Not

e 8)

Dev

elop

men

t Cor

p. is

its

dire

ctor

New

Cen

tury

Info

-Com

m C

o., L

td.

(Not

e 9)


AU

DIT

OR

'SR

EP

OR

TA

ND

FIN

AN

CIA

LS

TA

TE

ME

NT

S

Num

ber o

f sha

res

Perc

enta

geIn

vest

ors

Type

of s

ecur

ities

Rel

atio

nshi

p w

ith th

e is

suer

Gen

eral

ledg

er a

ccou

nts

(in th

ousa

nds)

Boo

k V

alue

of o

wne

rshi

pM

arke

t Val

ueN

ote

Tonp

al O

ptoe

lect

roni

cs In

c.Th

e su

bsid

iary

of T

ong

Shou

Inve

stm

ent

(Not

e 10

)

Cor

p. is

its

dire

ctor

Pres

iden

t Med

ical

Tec

hnol

ogie

s C

orp.

, Ltd

.etc

.A

n in

vest

ee c

ompa

ny o

f Pre

side

nt In

tern

atio

nal

Dev

elop

men

t Cor

p. a

ccou

nted

by

equi

ty m

etho

d et

c.Pr

esid

ent N

issh

in

Ben

efic

iar y

Cer

tific

ates

Cor

p.To

ng S

hing

Fun

dSh

ort-t

erm

inve

stm

ents

Pres

iden

t Pac

kagi

ngB

enef

icia

ry C

ertif

icat

es In

d. C

orp.

Jam

es B

ond

Fund

etc

.Sh

ort-t

erm

inve

stm

ents

Stoc

kSh

angh

ai P

resi

dent

Pac

kagi

ng C

orp.

An

inve

stee

com

pany

acc

ount

ed b

y th

eLo

ng-te

rm in

vest

men

ts e

quity

met

hod

Ton

Yi

Ben

efic

iar y

Cer

tific

ates

Pha

rmac

eutic

al C

orpJ

ames

Bon

d Fu

nd e

tc.

Shor

t-ter

m in

vest

men

tsTu

ng H

o B

enef

icia

r y C

ertif

icat

es D

evel

opm

ent C

o.,

The

Fore

ver F

und

etc.

Shor

t-ter

m in

vest

men

ts L

td.

Stoc

kG

u-H

sian

g C

orp.

etc.

An

inve

stee

com

pany

acc

ount

ed b

y th

eLo

ng-te

rm in

vest

men

ts

equi

ty m

etho

dPr

esid

ent K

ikko

man

B

enef

icia

ry C

ertif

icat

es In

c.Ja

mes

Bon

d Fu

nd e

tc.

Shor

t-ter

m in

vest

men

tsPr

esid

ent A

sian

St

ock

Ent

erpr

ises

Inc.

Pres

iden

t Can

ada

Inco

me

Prop

ertie

sA

n in

vest

ee c

ompa

ny o

f Pre

side

nt A

sian

Lo

ng-te

rm in

vest

men

ts(N

ote

11)

Rea

l Est

ate

Inve

stm

ent T

rust

etc

Ent

erpr

ises

Inc.

acc

ount

ed b

y eq

uity

met

hod

AIM

Ser

vice

Uni

-B

enef

icia

ry C

ertif

icat

es P

resi

dent

Co.

, Ltd

.H

ome-

Run

Fun

dSh

ort-t

erm

inve

stm

ents

Pres

iden

t Org

anic

s B

enef

icia

ry C

ertif

icat

es C

o.Ja

mes

Bon

d Fu

ndPr

esid

ent C

offe

e B

enef

icia

ry C

ertif

icat

es C

orp.

Fuh-

Hw

a A

lbat

ross

Fun

d et

c.



Num

ber o

f sha

res

Perc

enta

geIn

vest

ors

Type

of s

ecur

ities

Rel

atio

nshi

p w

ith th

e is

suer

Gen

eral

ledg

er a

ccou

nts

(in th

ousa

nds)

Boo

k V

alue

of o

wne

rshi

pM

arke

t Val

ueN

ote

Pres

iden

t Cha

in S

tore

Stoc

k C

orp.

Gra

nd P

acifi

c Pe

troch

emic

al C

orpo

ratio

netc

.Sh

ort-t

erm

inve

stm

ents

Pres

iden

t Cha

in S

tore

(BV

I) H

oldi

ngs

Ltd.

An

inve

stee

com

pany

acc

ount

ed b

y th

e Lo

ng-te

rm in

vest

men

ts

equi

ty m

etho

d

Ren

-Hui

Inve

stm

ent C

orp.

Mec

h-Pr

esid

ent C

o.

Uni

-Pre

side

nt C

old-

Cha

in C

orp.

Pres

iden

t Mus

ashi

no C

orp.

Tong

-Jen

g D

evel

opm

ent C

orp.

Pres

icar

re C

orp.

Tonp

al O

ptoe

lect

roni

cs In

c.Th

e su

bsid

iary

of T

ong

Shou

Inve

stm

ent

Cor

p. i

s its

dire

ctor

Pres

iden

t Int

erna

tiona

l Dev

elop

men

t Cor

p.Su

bsid

iary

acc

ount

ed b

y eq

uity

met

hod

Pres

iden

t Dru

gsto

re B

usin

ess

Cor

p.et

c.Su

bsid

iar y

acc

ount

ed b

y eq

uity

met

hod

etc.

Ton-

Yi I

ndus

trial

Ben

efic

iary

Cer

tific

ates

Cor

p.Se

cond

ary

colla

tera

lized

loan

obl

igat

ion

sec

uriti

es-C

redi

t Lyo

nnai

sO

ther

long

-term

in

vest

men

ts e

tc.

Stoc

kC

aym

an T

on Y

i Ind

ustir

al H

oldi

ngs

Ltd.

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inve

stee

com

pany

acc

ount

ed b

y th

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ng-te

rm in

vest

men

ts

equi

ty m

etho

dPr

esid

ent I

nter

natio

nal D

evel

o pm

ent C

orp.

Tung

Ang

Ent

erpr

ises

Cor

p.et

c.A

n in

vest

ee c

ompa

ny a

ccou

nted

by

the

eq

uity

met

hod


AU

DIT

OR

'SR

EP

OR

TA

ND

FIN

AN

CIA

LS

TA

TE

ME

NT

S

Num

ber o

f sha

res

Perc

enta

geIn

vest

ors

Type

of s

ecur

ities

Rel

atio

nshi

p w

ith th

e is

suer

Gen

eral

ledg

er a

ccou

nts

(in th

ousa

nds)

Boo

k V

alue

of o

wne

rshi

pM

arke

t Val

ueN

ote

Tong

-Jen

gSt

ock

Dev

elop

men

t Cor

p.K

ai N

an w

ood

indu

str y

Co.

, Ltd

.A

n in

vest

ee c

ompa

ny a

ccou

nted

by

the

Long

-term

inve

stm

ents

eq

uity

met

hod

Uni

-Pre

side

nt O

ven

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efic

iary

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tific

ates

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ery

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p.H

ome-

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d et

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ort-t

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inve

stm

ents

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iden

t Inf

orm

atio

nB

enef

icia

r y C

ertif

icat

es C

orp.

Jam

es B

ond

Fund

etc

.Pr

esid

ent T

okyo

Ben

efic

iary

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tific

ates

Cor

p.Ja

mes

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d Fu

ndSh

ort-t

erm

inve

stm

ents

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-Pre

side

nt C

old

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efic

iary

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tific

ates

-C

hain

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p.Ja

mes

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d Fu

nd e

tc.

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t-ter

m in

vest

men

tsSt

ock

Pres

iden

t Log

istic

s In

tern

atio

nal C

orp.

An

inve

stee

com

pany

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ount

ed b

y th

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ng-te

rm in

vest

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etai

l Sup

port

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efic

iar y

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tific

ates

eq

uity

met

hod

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erna

tiona

l Cor

p.Ja

mes

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d Fu

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ock

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iden

t Log

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s In

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atio

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orp.

etc.

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inve

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ount

ed b

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Pres

iden

t Co.

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efic

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tific

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es B

ond

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.Sh

ort-t

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inve

stm

ents

Stoc

kSa

fety

Ele

vato

r Cor

p.et

c.A

n in

vest

ee c

ompa

ny a

ccou

nted

by

the

Pres

iden

t Tra

nsne

tB

enef

icia

ry C

ertif

icat

es

equi

ty m

etho

d C

orp.

Qua

lity

Fund

Shor

t-ter

m in

vest

men

tsPr

esid

ent E

nter

pris

es S

tock

(C

hina

) Inv

estm

ent

Kun

shan

Pre

side

nt E

nter

pris

es F

ood

Co.

, Ltd

.A

n in

vest

ee c

ompa

ny a

ccou

nted

by

the

Long

-term

inve

stm

ents

Cor

p.

equi

ty m

etho

dG

uang

zhou

Pre

side

nt E

nter

pris

es C

o., L

td.

Wuh

an P

resi

dent

Ent

erpr

ises

Foo

d C

o., L

td.

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ngdu

Pre

side

nt E

nter

pris

es F

ood

Co.

, Ltd

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enya

ng P

resi

dent

Ent

erpr

ises

Co.

, Ltd

.Zh

ongs

han

Pres

iden

t Ent

erpr

ises

Co.

, Ltd

.H

efei

Pre

side

nt E

nter

pris

es C

o., L

td.

Xin

jiang

Pre

side

nt E

nter

pris

es F

ood

Co.

, Ltd

.Q

ingd

ao P

resi

dent

Fee

d &

Liv

esto

ck C

o., L

td.

Nan

chan

g Pr

esid

ent E

nter

pris

es C

o., L

td.e

tc.



Num

ber o

f sha

res

Perc

enta

geIn

vest

ors

Type

of s

ecur

ities

Rel

atio

nshi

p w

ith th

e is

suer

Gen

eral

ledg

er a

ccou

nts

(in th

ousa

nds)

Boo

k V

alue

of o

wne

rshi

pM

arke

t Val

ueN

ote

Uni

-Pre

side

ntSt

ock

Sou

thea

st A

sia

Uni

-Pre

side

nt V

ietn

am C

o., L

td.

An

inve

stee

com

pany

acc

ount

ed b

y th

eLo

ng-te

rm in

vest

men

ts H

oldi

ngs

Lim

ited.

eq

uity

met

hod

PT A

BC

Pre

side

nt In

done

sia

etc(

Not

e 12

)

Kai

Yu

(BV

I)

Ben

efic

iary

Cer

tific

ates

Inve

stm

ent C

o.,

AB

N C

apita

l Pro

tect

ed U

nit

Shor

t-ter

m in

vest

men

ts(N

ote

13)

Ltd

.Eq

uity

Cer

tific

ates

rela

ting

to A

BN

AM

RL

GLO

BA

L R

etai

l Ind

exSt

ock

Fuzh

ou P

resi

dent

Ent

erpr

ises

Co.

, Ltd

.A

n in

vest

ee c

ompa

ny a

ccou

nted

by

the

Long

-term

inve

stm

ents

eq

uity

met

hod

Song

jiang

Pre

side

nt E

nter

pris

es C

o., L

td.e

tc.

Lien

Bo

Ente

rpris

esSt

ock

Hsi

n Tu

ng Y

ang

CO

., LT

DLo

ng-te

rm in

vest

men

tsU

nion

Chi

nese

Cor

p.St

ock

Uni

-Pre

side

nt E

nter

pris

e C

orp.

etc.

The

Com

pany

etc

.Sh

ort-t

erm

inve

stm

ents

Chi

Fu

Ente

rpris

es C

orp.

etc.

An

inve

stee

com

pany

acc

ount

ed b

y th

eLo

ng-te

rm in

vest

men

ts

equi

ty m

etho

d ec

t.Pr

esid

ent (

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ock

Int

erna

tiona

l G

uida

nt C

orp.

etc.

Shor

t-ter

m in

vest

men

tsIn

vest

men

t Hol

ding

s U

ni-H

ome

Tech

Cor

p.A

n in

vest

ee c

ompa

ny a

ccou

nted

by

the

Long

-term

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stm

ents

Ltd

.

e qui

ty m

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esid

ent E

nerg

y D

evel

opm

ent

(C

aym

an Is

land

s) L

td.

Xia

ng L

u Pe

troch

emic

als

(Xia

men

) Co.

, Ltd

.Sc

ino

Phar

m (K

unsh

an) B

ioch

emic

alA

n in

vest

ee c

ompa

ny a

ccou

nted

by

the

Co.

, Ltd

.etc

.

equi

ty m

etho

d et

c.Pr

esid

ent L

ifeB

enef

icia

ry C

ertif

icat

es S

cien

ces

Co.

, Ltd

.N

ITC

Bon

d Fu

nd e

tc.

Shor

t-ter

m in

vest

men

tsSt

ock

Pres

iden

t Life

Sci

ence

s C

aym

anA

n in

vest

ee c

ompa

ny a

ccou

nted

by

the

Long

-term

inve

stm

ents

Co.

, Ltd

.

equi

ty m

etho

dA

ther

sys

Inc.

Pres

iden

t Bio

syst

em C

o., L

td.e

tc.

An

inve

stee

com

pany

acc

ount

ed b

y th

e

equi

ty m

etho

d et

c.


AU

DIT

OR

'SR

EP

OR

TA

ND

FIN

AN

CIA

LS

TA

TE

ME

NT

S

Num

ber o

f sha

res

Perc

enta

geIn

vest

ors

Type

of s

ecur

ities

Rel

atio

nshi

p w

ith th

e is

suer

Gen

eral

ledg

er a

ccou

nts

(in th

ousa

nds)

Boo

k V

alue

of o

wne

rshi

pM

arke

t Val

ueN

ote

Ton

Yu

Inve

stm

ent

Stoc

k

Cor

p.To

npal

Opt

oele

ctro

nics

Cor

p.Th

e su

bsid

iary

of T

ong

Shou

Inve

stm

ent

Long

-term

inve

stm

ents

(Not

e 14

) C

orp.

is it

s di

rect

orSc

ino

Phar

m T

aiw

an L

td.e

tc.

Long

-term

inve

stm

ents

Ton

Shou

Ivne

stm

ent

Ben

efic

iary

Cer

tific

ates

Cor

p.Ph

oeni

s B

ond

Fund

Shor

t-ter

m in

vest

men

tsSt

ock

Tonp

al O

ptoe

lect

roni

cs C

orp.

etc

.To

n Sh

ou Iv

nest

men

t Cor

p. is

its

dire

ctor

etc

.

Gu-

Hsi

ang

Cor

p.B

enef

icia

ry C

ertif

icat

esTh

e R

sit E

nhan

ced

Bon

d Fu

nd

Shor

t-ter

m in

vest

men

tsTo

n C

heng

St

ock

Inve

stm

ent I

nc.

Sout

h Ep

itaxy

Cor

p.Lo

ng-te

rm in

vest

men

tsTo

npal

Opt

oele

ctro

nics

Cor

p.Th

e su

bsid

iar y

of T

ong

Shou

Inve

stm

ent

(Not

e15)

Cor

p. is

its

dire

ctor

Pres

iden

t Cha

in S

tore

Sto

ck (B

VI)

Hol

ding

s Lt

d.Pr

esid

ent C

hain

Sto

re (L

abua

n) H

oldi

ngs

Ltd.

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inve

stee

com

pany

acc

ount

ed b

y th

eLo

n g-te

rm in

vest

men

ts

equi

ty m

etho

d

Pres

icle

rc L

td.e

tc.

An

inve

stee

com

pany

acc

ount

ed b

y th

e

equi

ty m

etho

d et

c.R

en-H

ui In

vest

men

t B

enef

icia

ry C

ertif

icat

es C

orp.

NIT

C T

aiw

an F

und

etc.

Shor

t-ter

m in

vest

men

tsSt

ock

Tonp

al O

ptoe

lect

roni

cs C

orp.

The

subs

idia

ry o

f Ton

g Sh

ou In

vest

men

t C

orp.

is it

s di

rect

orW

isdo

m D

istri

butio

nB

enef

icia

ry C

ertif

icat

es S

ervi

ces

Cor

p.U

nion

Bon

d Fu

nd e

tc.

Stoc

kPr

esid

ent L

ogis

tics

Inte

rnat

iona

l Cor

p.Th

e su

bsid

iary

of R

etai

l Sup

port

Lon g

-term

inve

stm

ents

Inte

rnat

iona

l Cor

p. a

ccou

nted

by

equi

ty

met

hod

Pres

iden

t Dru

gsto

re

Ben

efic

iary

Cer

tific

ates

Bus

ines

s C

orp.

Hom

e-R

un F

und

Shor

t-ter

m in

vest

men

tsPr

esid

ent D

irect

B

enef

icia

ry C

ertif

icat

es M

arke

ting

Cor

p.U

nion

Bon

d Fu

nd e

tc.



Num

ber o

f sha

res

Perc

enta

geIn

vest

ors

Type

of s

ecur

ities

Rel

atio

nshi

p w

ith th

e is

suer

Gen

eral

ledg

er a

ccou

nts

(in th

ousa

nds)

Boo

k V

alue

of o

wne

rshi

pM

arke

t Val

ueN

ote

Cap

ital I

nven

tory

B

enef

icia

ry C

ertif

icat

es S

ervi

ces

Cor

p.Ja

mes

Bon

d Fu

nd e

tc.

Pres

iden

t Eng

inee

ring

Ben

efic

iary

Cer

tific

ates

Tec

hnol

ogy

Cor

p.Ja

mes

Bon

d Fu

nd e

tc.

Day

eh T

akas

him

aya

Ben

efic

iary

Cer

tific

ates

Dep

artm

ent S

tore

Jam

es B

ond

Fund

etc

.D

uski

n Se

rve

Taiw

na B

enef

icia

ry C

ertif

icat

es C

o., L

td.

Hom

e-R

un F

und

Cay

man

Ton

Yi

Stoc

k In

dust

rial H

oldi

ngs

Cay

man

Fuj

ian

Ton

Yi I

ndus

trial

Hol

ding

s Lt

d.A

n in

vest

ee c

ompa

ny a

ccou

nted

by

the

Long

-term

inve

stm

ents

Ltd

.

e qui

ty m

etho

dC

a ym

an J

iang

su T

on Y

i Ind

usria

l Hol

ding

s Lt

d.H

ong

Kon

g To

n Y

i Ind

ustri

al H

oldi

ng L

td.e

tc.

Pres

iden

t Log

istic

s B

enef

icia

ry C

ertif

icat

es In

tern

atio

nal C

orp.

Jam

es B

ond

Fund

etc

.Sh

ort-t

erm

inve

stm

ents

Kun

shan

Pre

side

ntSt

ock

Ent

erpr

ises

Foo

d G

uang

zhou

Wan

g Sh

eng

Indu

stria

l Co.

, Ltd

.A

n in

vest

ee c

ompa

ny a

ccou

nted

by

the

Lon g

-term

inve

stm

ents

Co.

, Ltd

.

e qui

ty m

etho

dW

uhan

Pre

side

ntSt

ock

Ent

erpr

ises

Foo

d N

anch

ang

Pres

iden

t Ent

erpr

ises

Co.

, Ltd

. C

o., L

td.

Gua

ngzh

ou W

ang

Shen

g In

dust

rial C

o., L

td.

Mei

shan

Pre

side

nt

Stoc

k F

eed

& L

ives

tock

Pres

iden

t Fuc

he (Q

ingd

o) C

o., L

td.

Co.

, Ltd

.Q

ingd

ao P

resi

dent

St

ock

Fee

d &

Liv

esto

ckSa

n To

ng W

an F

u (Q

ingd

o) F

ood

Indu

stry

Co.

, C

o., L

td.

Ltd

.G

uang

zhou

Wan

g St

ock

She

ng In

dust

rial

Gua

ngxh

ou J

iagu

ang

Supe

rmar

kett

Co.

, Ltd

.A

n in

vest

ee c

ompa

ny a

ccou

nted

by

the

Lon g

-term

inve

stm

ents

Co.

, Ltd

.

equi

ty m

etho

dPr

esid

ent L

ifeSt

ock

Sci

ence

s C

aym

an

Are

na P

harm

aceu

tical

s, In

c.et

c.Sh

ort-t

erm

inve

stm

ents

Co.

, Ltd

.Pl

anta

ceut

ica,

Inc.

etc.

An

inve

stee

com

pany

acc

ount

ed b

y th

eLo

ng-te

rm in

vest

men

ts

equi

ty m

etho

d et

c.


AU

DIT

OR

'SR

EP

OR

TA

ND

FIN

AN

CIA

LS

TA

TE

ME

NT

S

Num

ber o

f sha

res

Perc

enta

geIn

vest

ors

Type

of s

ecur

ities

Rel

atio

nshi

p w

ith th

e is

suer

Gen

eral

ledg

er a

ccou

nts

(in th

ousa

nds)

Boo

k V

alue

of o

wne

rshi

pM

arke

t Val

ueN

ote

Pres

iden

t Bio

syst

em

Ben

efic

iary

Cer

tific

ates

Co.

, Ltd

.En

trust

Kiri

n B

ond

Fund

Shor

t-ter

m in

vest

men

tsG

-Adv

ance

dSt

ock

Sem

icon

duct

orEn

trust

Kiri

n B

ond

Fund

Shor

t-ter

m in

vest

men

ts T

echn

olog

y C

orp.

Pres

iden

t Cof

fee

Stoc

k (C

aym

an) H

oldi

ngs

Shan

ghai

Pre

side

nt C

offe

e C

o., L

td.

An

inve

stee

com

pany

acc

ount

ed b

y th

eLo

ng-te

rm in

vest

men

ts L

td.

e q

uity

met

hod

Pres

iden

t Cha

in S

tore

Stoc

k (L

abua

n) H

oldi

ngs

Phili

ppin

e Se

ven

Cor

p.A

n in

vest

ee c

ompa

ny a

ccou

nted

by

the

Long

-term

inve

stm

ents

Ltd

. e

quity

met

hod

Phili

ppin

e Se

ven

Stoc

k C

orp.

Con

veni

ence

Dis

tribu

tion

Inc.

etc.

Mec

h-Pr

esid

ent

Stoc

k(B

VI)

Cor

p.Sh

angh

ai P

resi

dent

Mac

hine

Co.

, Ltd

.A

n in

vest

ee c

ompa

ny a

ccou

nted

by

the

Lon g

-term

inve

stm

ents

Cay

man

Fuj

ian

Ton

Stoc

k e

quity

met

hod

Yi I

ndus

trial

Fu

jian

Ton

Yi T

inpl

ate

Co.

, Ltd

. H

oldi

ngs

Ltd.

Cay

man

Jia

ngsu

Ton

Sto

ck Y

i Ind

ustri

al

Jian

gsu

Ton

Yi T

inpl

ate

Co.

, Ltd

. H

oldi

ngs

Ltd.

(Not

e 14

)20,

000

thou

sand

s sh

ares

of t

he o

utst

andi

ng c

omm

on s

tock

with

mar

ket v

alue

of $

208,

600

wer

e us

ed a

s co

llate

rals

for s

hort-

term

loan

of P

resi

dent

Inte

rnat

iona

l Dev

elop

men

t Cor

p.(N

ote

15)1

0,00

0 th

ousa

nds

shar

es o

f the

out

stan

ding

com

mon

sto

ck w

ith m

arke

t val

ue o

f $10

4,28

8 w

ere

used

as

colla

tera

ls fo

r sho

rt-te

rm lo

an o

f Pre

side

nt In

tern

atio

nal D

evel

opm

ent C

orp.

(Not

e 10

)141

,500

thou

sand

s sh

ares

of t

he o

utst

andi

ng c

omm

on s

tock

with

mar

ket v

alue

of $

1,46

8,77

0 w

ere

used

as

colla

tera

ls fo

r iss

uanc

e of

com

mer

cial

pap

ers

of P

resi

dent

Inte

rnat

iona

l Dev

elop

men

t Cor

p.(N

ote

11)P

resi

dent

Hot

el 1

thou

sand

sha

res

of th

e ou

tsta

ndin

g co

mm

on s

tock

with

mar

ket v

alue

of C

AN

$2,

382

wer

e us

ed a

s co

llate

rals

for s

hort-

term

loan

of P

resi

dent

Asi

an E

nter

pris

es In

c.(N

ote

12)I

ts o

rigin

al n

ame

was

PT

AB

C P

resi

dent

Ent

erpr

ises

Indo

nesi

a.(N

ote

13)A

ll w

ere

used

as

colla

tera

ls fo

r sho

rt-te

rm lo

an o

f Kai

Yu

(BV

I) In

vest

men

t Co.

, Ltd

.

(Not

e 2)

16,0

00 th

ousa

nds

shar

es o

f the

out

stan

ding

com

mon

sto

ck w

ith m

arke

t val

ue o

f $14

9,04

3 w

ere

used

as

colla

tera

ls fo

r iss

uanc

e of

com

mer

cial

pap

ers

of P

resi

dent

Inte

rnat

iona

l Dev

elop

men

t Cor

p.(N

ote

3)14

9,99

4 th

ousa

nds

shar

es o

f the

out

stan

ding

com

mon

sto

ck w

ith m

arke

t val

ue o

f $1,

121,

745

wer

e us

ed a

s co

llate

rals

for s

hort-

term

loan

of P

resi

dent

Inte

rnat

iona

l Dev

elop

men

t Cor

p.(N

ote

4)50

,000

thou

sand

s sh

ares

of t

he o

utst

andi

ng c

omm

on s

tock

with

mar

ket v

alue

of $

482,

080

wer

e us

ed a

s co

llate

rals

for s

hort-

term

loan

of P

resi

dent

Inte

rnat

iona

l Dev

elop

men

t Cor

p.

(Not

e 1)

18,0

00 th

ousa

nds

shar

es o

f the

out

stan

ding

com

mon

sto

ck w

ith m

arke

t val

ue o

f $14

0,05

9 of

Ton

-Yi I

ndus

trial

Cor

p. a

nd 1

1,00

0 th

ousa

nds

shar

es o

f the

out

stan

ding

com

mon

sto

ck w

ith m

arke

t val

ue o

f

$1

68,0

98 o

f TTE

T U

nion

Cor

p. w

ere

used

as

colla

tera

ls fo

r iss

uanc

e of

com

mer

cial

pap

ers

of K

ai Y

u In

vest

men

t Co.

, Ltd

.

(Not

e 9)

251,

000

thou

sand

s sh

ares

of t

he o

utst

andi

ng c

omm

on s

tock

with

mar

ket v

alue

of $

2,51

0,00

0 w

ere

used

as

colla

tera

ls fo

r sho

rt-te

rm lo

an o

f Pre

side

nt In

tern

atio

nal D

evel

opm

ent C

orp.

(Not

e 5)

39,1

00 th

ousa

nds

shar

es o

f the

out

stan

ding

com

mon

sto

ck w

ith m

arke

t val

ue o

f $47

2,21

1 w

ere

used

as

colla

tera

ls fo

r sho

rt-te

rm lo

an o

f Pre

side

nt In

tern

atio

nal D

evel

opm

ent C

orp.

(Not

e 6)

55,4

00 th

ousa

nds

shar

es o

f the

out

stan

ding

com

mon

sto

ck w

ith m

arke

t val

ue o

f $38

7,98

3 w

ere

used

as

colla

tera

ls fo

r sho

rt-te

rm lo

an o

f Pre

side

nt In

tern

atio

nal D

evel

opm

ent C

orp.

(Not

e 7)

46,6

00 th

ousa

nds

shar

es o

f the

out

stan

ding

com

mon

sto

ck w

ith m

arke

t val

ue o

f $59

5,88

8 w

ere

used

as

colla

tera

ls fo

r sho

rt-te

rm lo

an o

f Pre

side

nt In

tern

atio

nal D

evel

opm

ent C

orp.

(Not

e 8)

19,8

75 th

ousa

nds

shar

es o

f the

out

stan

ding

com

mon

sto

ck w

ith m

arke

t val

ue o

f $17

2,11

0 w

ere

used

as

colla

tera

ls fo

r sho

rt-te

rm lo

an o

f Pre

side

nt In

tern

atio

nal D

evel

opm

ent C

orp.



(4)A

ccum

ulat

ive

addi

tions

and

disp

osal

s of i

ndiv

idua

l mar

keta

ble

secu

ritie

s exc

eedi

ng $

100,

000

or 2

0% o

f the

con

tribu

ted

capi

tal (

Uni

t in

thou

sand

s of c

urre

ncie

s ind

icat

ed):

Gen

eral

N

ame

ofN

umbe

r of

Num

ber

Num

ber

Gai

n(lo

ss)

Num

ber

Num

ber

Ledg

er th

e co

unte

r sh

ares

o

f sha

res

of sh

ares

from

of sh

ares

of s

hare

s

Inve

stors

Ty

pe o

f sec

uriti

es a

ccou

nts

party

Rela

tions

hip

(in th

ousa

nds)

Am

ount

(in

thou

sand

s)A

mou

nt(in

thou

sand

s)Sa

les p

rice

Book

Val

ue d

ispos

al(in

thou

sand

s)A

mou

nt (i

n th

ousa

nds)

Am

ount

Uni

-Pre

siden

t Be

nefic

iary

Cer

tific

ates

Ent

erpr

ise

Jam

es B

ond

Fund

Shor

t-ter

m

-

-

Cor

p.

inve

stmen

ts

Ta C

hong

Gal

lop

-

-

Bon

d Fu

nd

Hom

e-Ru

n Fu

nd-

-

NT$

hig

h yi

eld

-

-

fun

d

Ta-c

hong

Bon

d -

-

Fun

d

Stoc

k

Kai

Yu

Long

-term

(N

ote

1)(N

ote

1)

Inv

estm

ent C

o.,

inve

stmen

ts

Ltd

.

Caym

an P

resid

ent

Capi

tal

-

Hol

ding

s Ltd

.in

crea

se

Topp

oly

Capi

tal

-

Opt

oele

ctro

nics

in

crea

se

Cor

p.

Tung

Ho

-

Dev

elop

men

t

Co.

, Ltd

.

Endi

ng b

alan

ceBe

ginn

ing

bala

nce

Add

ition

Oth

er in

crea

se(d

ecre

ase)

Disp

osal


AU

DIT

OR

'SR

EP

OR

TA

ND

FIN

AN

CIA

LS

TA

TE

ME

NT

S

Gen

eral

N

ame

ofN

umbe

r of

Num

ber

Num

ber

Gai

n(lo

ss)

Num

ber

Num

ber

Ledg

er th

e co

unte

r sh

ares

o

f sha

res

of sh

ares

from

of sh

ares

of s

hare

s

Inve

stors

Ty

pe o

f sec

uriti

es a

ccou

nts

party

Rela

tions

hip

(in th

ousa

nds)

Am

ount

(in

thou

sand

s)A

mou

nt(in

thou

sand

s)Sa

les p

rice

Book

Val

ue d

ispos

al(in

thou

sand

s)A

mou

nt (i

n th

ousa

nds)

Am

ount

Endi

ng b

alan

ceBe

ginn

ing

bala

nce

Add

ition

Oth

er in

crea

se(d

ecre

ase)

Disp

osal

Uni

-Pre

siden

t Pr

esid

ent C

hain

Lo

ng-te

rm-

-

Ent

erpr

ise

Sto

re C

orp.

inv

estm

ents

Cor

p.

Pres

iden

t-

-

Pac

kagi

ng I

nc.

Cor

p.

Pres

iden

t-

Ent

erta

inm

ent

Cor

p.

Scin

o Ph

arm

-

Tai

wan

Ltd

.

Chin

atru

st(N

ote

1)(N

ote

1)

Fin

anci

al C

o.,

Ltd

.-Com

mon

Sto

ck

Chin

atru

st(N

ote

1)(N

ote

1)

Fin

anci

al C

o.,

Ltd

.-Pre

ferre

d S

tock

Gra

nd(N

ote

1)(N

ote

1)

Com

mer

cial

Ban

k

Caym

an

Bene

ficia

ry C

ertif

icat

es

Pre

siden

t A

BN C

apita

lSh

ort-t

erm

-

-

Hol

ding

s

Prot

ecte

d U

nit

inve

stmen

ts

Ltd

.



Gen

eral

N

ame

ofN

umbe

r of

Num

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ber

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n(lo

ss)

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ber

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ber

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er th

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r sh

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ares

from

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hare

s

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pe o

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uriti

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ccou

nts

party

Rela

tions

hip

(in th

ousa

nds)

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ount

(in

thou

sand

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mou

nt(in

thou

sand

s)Sa

les p

rice

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mou

nt (i

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ount

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ng b

alan

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ginn

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nce

Add

ition

Oth

er in

crea

se(d

ecre

ase)

Disp

osal

Stoc

k

Uni

-Pre

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ng-te

rm

New

-

So

uthe

ast A

sia in

vestm

ents

esta

blish

men

t

H

oldi

ngs L

imite

d.an

d Ca

pita

l

incr

ease

Carg

ill P

resid

ent

Capi

tal

-

H

oldi

ngs P

te L

td.

incr

ease

Uni

-Pre

siden

t(N

ote

3)(N

ote

3)

Vie

tnam

Co.

, Ltd

.

PT A

BC

(Not

e 3)

(Not

e 3)

-Pr

esid

ent

Ent

erpr

ises

Ind

ones

ia

Kai

Yu

Stoc

k

Inv

estm

ent

Chin

atru

st Ca

sh a

nd(N

ote

1)(N

ote

1)

Co

., Lt

d. F

inan

cial

Co.

, c

ash

Ltd

. e

quiv

alen

t

- P

refe

rred

Sto

ck

Bene

ficia

ry C

ertif

icat

es

Asia

Pac

ific

Shor

t-ter

m

-

-

Bo

nd F

und

inve

stmen

ts

Cent

ral D

iam

ond

-

-

Bo

nd F

und

Phoe

nis B

ond

-

-

Fu

nd


AU

DIT

OR

'SR

EP

OR

TA

ND

FIN

AN

CIA

LS

TA

TE

ME

NT

S

Gen

eral

N

ame

ofN

umbe

r of

Num

ber

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ber

Gai

n(lo

ss)

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ber

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ber

Ledg

er th

e co

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r sh

ares

o

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res

of sh

ares

from

of sh

ares

of s

hare

s

Inve

stors

Ty

pe o

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es a

ccou

nts

party

Rela

tions

hip

(in th

ousa

nds)

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ount

(in

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sand

s)A

mou

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les p

rice

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ue d

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thou

sand

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mou

nt (i

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ousa

nds)

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ount

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alan

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ginn

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nce

Add

ition

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ote

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ote

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Co

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alin

vestm

ents

Ba

nk

Chin

atru

st(N

ote

1)(N

ote

1)

Fi

nanc

ial C

o., L

td.

-C

omm

on S

tock

Topp

oly

Long

-term

-

-

Opt

oele

ctro

nics

inve

stmen

ts

Cor

p.

Scin

o Ph

arm

-

-

Tai

wan

Ltd

.

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lien

Stoc

k

In

tern

atio

nal

Topp

oly

Long

-term

Ca

pita

l -

Co

rp.

Opt

oele

ctro

nics

in

vestm

ents

incr

ease

C

orp.

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iden

t Be

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tific

ates

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tern

atio

nal

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n Fu

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ort-t

erm

-

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in

vestm

ents

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rp.

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mes

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d Fu

nd-

-

Phoe

nis B

ond

Fund

-

-

Stoc

k

Mag

a H

oldi

ngs

Shor

t-ter

m

-

-

Co

., Lt

d.in

vestm

ents



Gen

eral

N

ame

ofN

umbe

r of

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ber

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ber

Gai

n(lo

ss)

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ber

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ber

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pe o

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ccou

nts

party

Rela

tions

hip

(in th

ousa

nds)

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ount

(in

thou

sand

s)A

mou

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rice

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in F

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-

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H

oldi

ngs C

o., L

td.

Pou

Chen

Cor

p.-

-

Pola

ris S

ecur

ities

-

-

Co.

, Ltd

.

Chin

a St

eel

-

-

Co.

, Ltd

.

Fubo

n Fi

nanc

ial

-

-

Co.

, Ltd

.

Form

osa

Chem

ical

s -

-

& F

iber

Cor

p.

Taiw

an C

ellu

lar

-

-

Cor

p.

Ton

Yu

Long

-term

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tal

-

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vestm

ent I

nc.

inve

stmen

ts

incr

ease

Kan

g N

a H

siung

-

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terp

rises

Co.

,

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d.

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oly

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Opt

oele

ctro

nics

Cor

p.

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iden

t Ja

mes

Bon

d Fu

ndSh

ort-t

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kagi

ng

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. Cor

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ome-

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iden

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tific

ates

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kom

anJa

mes

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dSh

ort-t

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-

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c.Fu

ndin

vestm

ents


AU

DIT

OR

'SR

EP

OR

TA

ND

FIN

AN

CIA

LS

TA

TE

ME

NT

S

Gen

eral

N

ame

ofN

umbe

r of

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pe o

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Rela

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hip

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ount

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ount

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ome

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ent

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perti

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c.

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state

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st

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ome-

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in

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iden

t Cha

inBe

nefic

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re C

orp.

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n Fu

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mes

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Gen

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Ty

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party

Rela

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hip

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ount

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sand

s)A

mou

nt(in

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sand

s)Sa

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rice

Book

Val

ue d

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sand

s)A

mou

nt (i

n th

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nds)

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ount

Endi

ng b

alan

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ginn

ing

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nce

Add

ition

Oth

er in

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se(d

ecre

ase)

Disp

osal

The

Fore

ver F

und

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-

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in

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r Bon

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Dam

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nd

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ay B

ond

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nd

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d

The

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t Glo

bal

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Inv

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rust

Wan

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d

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e-

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und

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d

Fubo

n Ju

-i Fu

nd-

-

Stoc

k

Topp

oly

Long

-term

(Not

e 4)

(Not

e 4)

Opt

oele

ctro

nics

in

vestm

ents

Cor

p.

Ren-

Hui

Inve

stmen

t (N

ote

4)(N

ote

4)

Cor

p.

Pres

iden

t(N

ote

5)(N

ote

5)

Pac

kagi

ng In

c.

Cor

p.

Tung

Ho

-

-

Dev

elop

men

t

Co.

, Ltd

.


AU

DIT

OR

'SR

EP

OR

TA

ND

FIN

AN

CIA

LS

TA

TE

ME

NT

S

Gen

eral

N

ame

ofN

umbe

r of

Num

ber

Num

ber

Gai

n(lo

ss)

Num

ber

Num

ber

Ledg

er th

e co

unte

r sh

ares

o

f sha

res

of sh

ares

from

of sh

ares

of s

hare

s

Inve

stors

Ty

pe o

f sec

uriti

es a

ccou

nts

party

Rela

tions

hip

(in th

ousa

nds)

Am

ount

(in

thou

sand

s)A

mou

nt(in

thou

sand

s)Sa

les p

rice

Book

Val

ue d

ispos

al(in

thou

sand

s)A

mou

nt (i

n th

ousa

nds)

Am

ount

Endi

ng b

alan

ceBe

ginn

ing

bala

nce

Add

ition

Oth

er in

crea

se(d

ecre

ase)

Disp

osal

Pres

iden

tSt

ock

Fai

r K

ai N

an w

ood

Long

-term

--

Dev

elop

men

t

indu

stry

Co.,

inve

stmen

ts

Cor

p.

Ltd.

Uni

-Be

nefic

iary

Cer

tific

ates

:

Pre

siden

t H

ome-

Run

Fund

Shor

t-ter

m

--

Ove

n

inve

stmen

ts

Bak

ery

Corp

.

Pres

iden

tBe

nefic

iary

Cer

tific

ates

:

In

form

atio

nJa

mes

Bon

d Fu

ndSh

ort-t

erm

-

-

Co

rp.

in

vestm

ents

Prud

entia

l Fi

nanc

ial

--

Fun

d

Uni

-Pre

siden

tBe

nefic

iary

Cer

tific

ates

:

Co

ld-C

hain

Ja

mes

Bon

d Fu

nd-

-

Co

rp.

Ta-c

hong

Bon

d -

-

Fun

d

Pca

Bond

Fun

d-

-

Yua

nda

Duo

Li

--

II

Fund

Jih S

un B

onds

Fun

d-

-

Uni

ted

Wei

-li

-

-

Bon

d Fu

nd

Pca

Wel

l Poo

l-

-

Fu

nd

TIIM

Bon

d Fu

nd-

-

Hom

e-Ru

n Fu

nd-

-

Reta

il Su

ppor

t Be

nefic

iary

Cer

tific

ates

:

Int

erna

tiona

lH

ome-

Run

Fund

-

-

Co

rp.



Gen

eral

N

ame

ofN

umbe

r of

Num

ber

Num

ber

Gai

n(lo

ss)

Num

ber

Num

ber

Ledg

er th

e co

unte

r sh

ares

o

f sha

res

of sh

ares

from

of sh

ares

of s

hare

s

Inve

stors

Ty

pe o

f sec

uriti

es a

ccou

nts

party

Rela

tions

hip

(in th

ousa

nds)

Am

ount

(in

thou

sand

s)A

mou

nt(in

thou

sand

s)Sa

les p

rice

Book

Val

ue d

ispos

al(in

thou

sand

s)A

mou

nt (i

n th

ousa

nds)

Am

ount

Endi

ng b

alan

ceBe

ginn

ing

bala

nce

Add

ition

Oth

er in

crea

se(d

ecre

ase)

Disp

osal

Jam

es B

ond

Fund

--

Ta-c

hong

Bon

d-

-

Fun

d

NIT

C Bo

nd F

und

--

Mec

h-Be

nefic

iary

Cer

tific

ates

:

Pre

siden

t Co.

Jam

es B

ond

Fund

Shor

t-ter

m

--

inve

stmen

ts

Yua

nda

Duo

Li

--

Fu

nd

Hom

e-Ru

n Fu

nd-

-

Pres

iden

t St

ock

Ent

erpr

ises

Kun

shan

Lo

ng-te

rmCa

pita

l-

(Ch

ina)

P

resid

ent

inve

stmen

ts in

crea

se

Inv

estm

ent

Ent

erpr

ises F

ood

Cor

p.

Co.

, Ltd

.

Beiji

ng P

resid

ent

-

Ent

erpr

ises D

rinks

& F

ood

Co.,

Ltd.

Zhen

gzho

uN

ew-

Pre

siden

tes

tabl

ishm

ent

Ent

erpr

ises F

ood

Co.

, Ltd

.

Uni

-Pre

siden

t St

ock

Sou

thea

st U

ni-P

resid

ent

(Not

e 6)

(Not

e 6)

V

ietn

am

Co.

, Ltd

.

PT A

BC(N

ote

6)(N

ote

6)

Pre

siden

t

Ind

ones

ia

(N

ote

7)


AU

DIT

OR

'SR

EP

OR

TA

ND

FIN

AN

CIA

LS

TA

TE

ME

NT

S

Gen

eral

N

ame

ofN

umbe

r of

Num

ber

Num

ber

Gai

n(lo

ss)

Num

ber

Num

ber

Ledg

er th

e co

unte

r sh

ares

o

f sha

res

of sh

ares

from

of sh

ares

of s

hare

s

Inve

stors

Ty

pe o

f sec

uriti

es a

ccou

nts

party

Rela

tions

hip

(in th

ousa

nds)

Am

ount

(in

thou

sand

s)A

mou

nt(in

thou

sand

s)Sa

les p

rice

Book

Val

ue d

ispos

al(in

thou

sand

s)A

mou

nt (i

n th

ousa

nds)

Am

ount

Endi

ng b

alan

ceBe

ginn

ing

bala

nce

Add

ition

Oth

er in

crea

se(d

ecre

ase)

Disp

osal

Uni

-Pre

siden

t(N

ote

6)(N

ote

6)

Foo

d

Cor

pora

tion

Kai

Yu

(BV

I)Be

nefic

iary

Cer

tific

ates

In

vestm

ent

Kin

gsto

nSh

ort-t

erm

-

-

Co

., Lt

d. Y

ield

inve

stmen

ts

E

nhan

cem

ent

F

und

Stoc

k

Pres

iden

t Cof

fee

Long

-term

(N

ote

8)-

(Ca

yman

)in

vestm

ents

Hol

ding

s Ltd

.

Pres

iden

tSt

ock

(BV

I)G

UID

AN

TSh

ort-t

erm

-

-

In

tern

atio

nal

Cor

p Co

m.

inve

stmen

ts

In

vestm

ent

MY

LAN

-

-

Hol

ding

s Lt

d. L

abor

ator

ies

Inc.

Ton

Yu

Stoc

k

Inve

stmen

tTo

ppol

yLo

ng-te

rm(N

ote

8)-

In

c. O

ptoe

lect

roni

cs in

vestm

ents

Cor

p.

Scin

o Ph

arm

(Not

e 6)

-

Tai

wan

Ltd

.

Pres

iden

tSt

ock

Cha

in S

tore

Pres

iden

t Cof

fee

Long

-term

(N

ote

9)-

(BV

I) (

Caym

an )

inve

stmen

ts

H

oldi

ngs L

td.

H

oldi

ngs L

td.



Gen

eral

N

ame

ofN

umbe

r of

Num

ber

Num

ber

Gai

n(lo

ss)

Num

ber

Num

ber

Ledg

er th

e co

unte

r sh

ares

o

f sha

res

of sh

ares

from

of sh

ares

of s

hare

s

Inve

stors

Ty

pe o

f sec

uriti

es a

ccou

nts

party

Rela

tions

hip

(in th

ousa

nds)

Am

ount

(in

thou

sand

s)A

mou

nt(in

thou

sand

s)Sa

les p

rice

Book

Val

ue d

ispos

al(in

thou

sand

s)A

mou

nt (i

n th

ousa

nds)

Am

ount

Endi

ng b

alan

ceBe

ginn

ing

bala

nce

Add

ition

Oth

er in

crea

se(d

ecre

ase)

Disp

osal

Wisd

omBe

nefic

iary

Cer

tific

ates

D

istrib

utio

nU

nion

Bon

d Fu

ndSh

ort-t

erm

--

Se

rvic

es in

vestm

ents

Co

rp.

Jih S

un B

onds

--

Fun

d

ABN

AM

RO-

-

Bo

nd F

und

Barit

s Bon

d Fu

nd-

-

Jam

es B

ond

Fund

--

Hom

e-Ru

n Fu

nd-

-

Pres

iden

tBe

nefic

iary

Cer

tific

ates

Mus

ashi

noJa

mes

Bon

d Fu

nd-

-

Cor

p.

Hom

e-Ru

n Fu

nd-

-

Pres

iden

t Be

nefic

iary

Cer

tific

ates

Dru

gsto

reH

ome-

Run

Fund

Shor

t-ter

m-

-

Bus

ines

s

inve

stmen

ts

Cor

p.

Pres

iden

tBe

nefic

iary

Cer

tific

ates

Log

istic

sW

ell P

ool B

ond

Shor

t-ter

m-

-

Int

erna

tiona

l F

und

in

vestm

ents

Cor

p.Pc

a Bo

nd F

und

-

-

Ren-

Hui

To

ppol

y Lo

ng-te

rm

Pres

iden

t (N

ote

10)

Inv

estm

ent C

orp.

Opt

oele

ctro

nics

inve

stmen

tsCh

ain

Stor

e

C

orp.

Corp

.


AU

DIT

OR

'SR

EP

OR

TA

ND

FIN

AN

CIA

LS

TA

TE

ME

NT

S

(Not

e 9)

Nam

e of

the

coun

ter p

arty

is S

tarb

ucks

Cof

fee

Inte

rnat

iona

l Cor

p.

(Not

e 10

)It i

s th

e C

ompa

ny S

ubsi

diar

y ac

coun

ted

by e

quity

met

hod.

(Not

e 1)

The

cou

nter

par

ty is

Chi

natr

ust F

inan

cial

Co.

, Ltd

., w

hich

is th

e C

ompa

ny’s

sub

sidi

ary

and

inve

stee

com

pany

acc

ount

ed b

y th

e co

st m

etho

d, o

r tra

nsfe

rred

from

the

stoc

ks o

f Gra

nd C

omm

erci

al B

ank

reco

rded

as

shor

t-te

rm in

vest

men

ts in

to th

e

p

refe

rred

sto

cks

and

com

mon

sto

cks

of C

hina

trus

t Fin

anci

al C

o., L

td.

(Not

e 5)

Pres

iden

t Cha

in S

tore

Cor

p. s

old

the

stoc

ks o

f Pre

side

nt P

acka

ging

Ind.

Cor

p. to

Uni

-Pre

side

nt E

nter

pris

es C

orp.

(Not

e 6)

Nam

e of

the

coun

ter p

arty

is P

resi

dent

Inte

rnat

iona

l Dev

elop

men

t Cor

p. a

ccou

nted

by

equi

ty m

etho

d.

(Not

e 7)

Its

orig

inal

nam

e w

as P

T A

BC

Pre

side

nt E

nter

pris

e In

done

sia.

(Not

e 8)

The

cou

nter

par

ty is

Pre

side

nt In

tern

atio

nal D

evel

opm

ent C

orp.

(Not

e 2)

The

div

iden

d pr

ice

of th

e co

unte

r par

ty, K

ai Y

u In

vest

men

t Co.

, Ltd

., is

pai

d in

99,

700

thou

sand

sha

res

of T

onpa

l Opt

oele

ctro

nics

Cor

p.

(Not

e 3)

The

cou

nter

par

ty is

Uni

-Pre

side

nt S

outh

east

Asi

a H

oldi

ng L

imite

d. A

sub

sidi

ary

acco

unte

d un

der t

he e

quity

met

hod

Cay

man

Pre

side

nt H

oldi

ng L

td. T

rans

ferr

ed it

s st

ocks

to U

ni-P

resi

dent

Sou

thea

st A

sia

Hol

ding

Lim

ited.

at b

ook

valu

e.

(Not

e 4)

Pres

iden

t Cha

in S

tore

Cor

p. tr

ansf

erre

d th

e st

ocks

of T

onpa

l Opt

oele

ctro

nics

Inc.

into

the

stoc

ks o

f Ren

-Hui

Inve

stm

ent C

orp.



The

rela

tions

hip

Reas

on fo

r acq

uisit

ion

of th

e or

igin

al

Dat

e of

the

of p

rope

rties

and

the

Th

e ba

sis o

r ref

eren

ce

Type

of

Dat

e of

ow

ner w

ith

orig

inal

sta

tus o

f the

u

sed

in d

ecid

ing

the

Oth

er

Com

pany

Prop

ertie

s t

rans

actio

nSe

lling

pric

ePa

ymen

t pai

dCo

unte

r par

tyRe

latio

nshi

pO

wne

r th

e co

mpa

ny tr

ansa

ctio

nA

mou

nt p

rope

rties

pric

eco

mm

itmen

ts

Tone

San

g Co

nstru

ctio

n La

ndTh

e fir

st in

stallm

ent o

fU

ni-P

resid

ent

Subs

idia

ry

Wen

-Chu

n Ts

en-

Refe

r to

Build

ing

hous

es

- C

orp.

71

4 w

as p

aid

as si

ngin

g E

nter

prise

acc

ount

ed

exp

ertis

e re

port

and

fo

r sal

e t

he c

ontra

ct, a

nd th

e C

orp.

by

equi

tyCh

an-Y

ao T

sen

sell

at n

egot

iate

d p

rice

rem

aind

er w

ill b

e pa

id m

etho

dCh

in-H

uang

Tse

n

afte

r sel

ling

the

built

hou

ses a

nd se

ttlin

g th

e t

rans

fere

nce

of h

ouse

s, a

nd th

en p

ay th

e la

nd p

rice

in d

eman

d no

tes

at t

he e

nd o

f mon

th a

ccor

ding

to th

e e

stim

atio

n of

the

set

tlem

ent o

f acc

ount

s p

er m

onth

.

If th

e co

unte

r par

ty is

a re

late

d pa

rty, i

nfor

mat

ion

as to

th

e tra

nsac

tion

of th

e pr

oper

ty is

disc

lose

d be

low

:

(5)A

cqui

sitio

n of

real

esta

te w

ith a

n am

ount

exc

eedi

ng th

e lo

wer

of $

100,

000

or 2

0 pe

rcen

t of t

he c

ontri

bute

d ca

pita

l(Uni

t in

thou

sand

s of c

urre

ncie

s ind

icat

ed)


AU

DIT

OR

'SR

EP

OR

TA

ND

FIN

AN

CIA

LS

TA

TE

ME

NT

S

(6) D

ispo

sal o

f rea

l est

ate

with

an

amou

nt e

xcee

ding

the

low

er o

f $10

0,00

0 or

20

perc

ent o

f the

con

tribu

ted

capi

tal(U

nit i

n th

ousa

nds

of c

urre

ncie

s in

dica

ted)

The

base

s or

Typ

e of

D

ate

of G

ain

(loss

)N

ame

of th

e re

fere

nce

use

d in

Oth

er

Com

pany

Pr

oper

ties

tr

ansa

ctio

nA

cqui

sitio

n da

teB

ook

valu

eSe

lling

am

ount

Stat

us o

f pay

men

t rec

eive

d o

n di

spos

al c

ount

er p

arty

Rel

atio

nshi

pR

easo

n fo

r dis

posa

ldec

idin

g th

e pr

ice

com

mitm

ents

Uni

-Pre

side

ntEn

terp

rise

Cor

p.La

ndTh

e fir

st in

stal

lmen

t of

714

was

pai

d as

sin

ging

the

con

tract

, and

the

rem

aind

er o

f 18

3,74

0 (in

clud

ing

the

lan

d of

incr

ease

d va

lue

tax)

will

be

paid

afte

r Ton

e Sa

ng C

onst

ruct

ion

Cor

p. s

ales

the

bui

lt ho

uses

and

set

tles

the

tra

nsfe

renc

e of

hou

ses,

and

the

n pa

y th

e la

nd p

rice

in d

eman

d no

tes

at th

e en

d of

mon

th a

ccor

ding

to th

e e

stim

atio

n of

the

settl

emen

t o

f acc

ount

s pe

r mon

th.

Tone

San

gC

onst

ruct

ion

Cor

p.

Subs

idia

ryac

coun

ted

by e

quity

met

hod

For r

elat

ed p

artie

sto

enl

arge

oper

atio

n si

te.

Ref

er to

exp

ertis

ere

port

and

sell

atne

gotia

ted

pric

e.

-

(Not

e)Th

e ne

t sel

ling

pric

e af

ter r

educ

tion

of la

nd v

alue

-add

ed ta

x is

$16

8,71

1



(7)P

urch

ases

or s

ales

tran

sact

ions

with

rela

ted

parti

es a

mou

nt to

the

low

er o

f $10

0,00

0 an

d 20

per

cent

of t

he e

nrol

led

capi

tal (

Uni

t in

thou

sand

s of c

urre

ncie

s ind

icat

ed):

Perc

enta

ge

of n

et

Perc

enta

ge o

f

P

urch

ases

/sale

s Re

latio

nshi

p w

ith P

urch

ases

purc

hase

sno

tes o

r acc

ount

s

com

pany

Nam

e of

the

coun

terp

artie

sth

e co

mpa

ny

/sal

es

Am

ount

/ sa

les

Cred

it te

rms

Uni

tpr

ice

Cred

it te

rms

Am

ount

rece

ivab

le/p

ayab

leN

ote

Uni

-Pre

siden

tTu

ng A

ng E

nter

prise

s Cor

p.A

n in

veste

e co

mpa

ny o

f Kai

Yu

(sal

es)

Clos

e its

acc

ount

eve

ry 1

0-

$

(N

ote

1)-

Ent

erpr

ise C

orp.

Inv

estm

ent C

o., L

td. a

ccou

nted

by

day

s and

rem

it w

ithin

40

the

equ

ity m

etho

d d

ays.

Uni

-Pre

siden

t Col

d-Ch

ain

Corp

.Su

bsid

iary

acc

ount

ed b

y th

e eq

uity

Clos

e its

acc

ount

eve

ry 4

0-

(N

ote

1)-

m

etho

d d

ays.

Reta

il Su

ppor

t Int

erna

tiona

l Cor

p.A

bout

30

days

afte

r sal

es-

(N

ote

1)-

(Fo

r the

six

mon

ths e

nded

Jun

e 30

,200

3.w

as tw

o

mon

ths a

fter s

ales

.

Pres

iden

t Cha

in S

tore

Cor

p.A

bout

30

days

afte

r sal

es-

(N

ote

1)-

Tun

Hsia

ng E

nter

prise

s Cor

p.A

n in

veste

e co

mpa

ny o

f Nan

lien

Abo

ut 2

mon

ths a

fter s

ales

-

(Not

e 1)

-

In

tern

atio

nal C

orp.

acc

ount

ed b

y

th

e eq

uity

met

hod

Tone

Chu

Ent

erpr

ises C

orp.

-

(Not

e 1)

-

TTET

Uni

on C

orp.

Subs

idia

ry a

ccou

nted

by

the

equi

tyA

bout

one

mon

th a

fter s

ale

-

(Not

e 1)

-

m

etho

dpu

rcha

ses

Clos

e its

acc

ount

at t

he e

nd-

(N

ote

2)-

of m

onth

and

30~

45 d

ays

not

es p

ayab

le w

ithin

7 d

ays.

Tung

Shu

n En

terp

rises

Cor

p.A

n in

veste

e co

mpa

ny o

f Nan

lien

(sal

es)

Abo

ut 2

mon

ths a

fter s

ales

-

(Not

e 1)

-

In

tern

atio

nal C

orp.

acc

ount

ed b

y

th

e eq

uity

met

hod

Kua

n Ch

ang

Ente

rpris

es C

orp.

Abo

ut 1

mon

th a

fter s

ales

-

(Not

e 1)

-

Not

es o

r acc

ount

s rec

eiva

ble

/ (pa

yabl

e)

Des

crip

tion

of th

e tra

nsac

tion

Des

crip

tion

of a

nd re

ason

s for

diffe

renc

e in

tran

sact

ion

term

s

com

para

ed to

non

-rela

ted

party

tran

sact

ions


AU

DIT

OR

'SR

EP

OR

TA

ND

FIN

AN

CIA

LS

TA

TE

ME

NT

S

Perc

enta

ge

of n

et

Perc

enta

ge o

f

P

urch

ases

/sale

s Re

latio

nshi

p w

ith P

urch

ases

purc

hase

sno

tes o

r acc

ount

s

com

pany

Nam

e of

the

coun

terp

artie

sth

e co

mpa

ny

/sal

es

Am

ount

/ sa

les

Cred

it te

rms

Uni

tpr

ice

Cred

it te

rms

Am

ount

rece

ivab

le/p

ayab

leN

ote

Not

es o

r acc

ount

s rec

eiva

ble

/ (pa

yabl

e)

Des

crip

tion

of th

e tra

nsac

tion

Des

crip

tion

of a

nd re

ason

s for

diffe

renc

e in

tran

sact

ion

term

s

com

para

ed to

non

-rela

ted

party

tran

sact

ions

Tung

She

ng E

nter

prise

s Cor

p.A

bout

2 m

onth

s afte

r sal

es-

$

(N

ote

1)-

Far-T

ung

Ente

rpris

es C

orp.

Abo

ut 2

mon

ths a

fter s

ales

-

(Not

e 1)

-

Tung

-Yu

Ente

rpris

es C

orp.

Abo

ut 2

wee

ks a

fter s

ales

-

(Not

e 1)

-

Uni

-Pre

siden

t D

ing-

Tung

Ent

erpr

ises C

orp.

An

inve

stee

com

pany

of N

anlie

n(s

ales

)A

bout

1 m

onth

afte

r sal

es-

(N

ote

1)-

Ent

erpr

ise C

orp.

In

tern

atio

nal C

orp.

acc

ount

ed b

y

th

e eq

uity

met

hod

Tung

Yi E

nter

prise

s Cor

p.A

bout

2 m

onth

s afte

r sal

es-

(Not

e 1)

-

Hsin

Tun

g En

terp

rises

Cor

p.A

bout

2 w

eeks

afte

r sal

es-

(N

ote

1)-

Tung

-Tse

Cor

p.-

(N

ote

1)-

Uni

-Pre

siden

t Ven

der C

orp.

An

inve

stee

com

pany

of K

ai Y

uCl

ose

its a

ccou

nt 2

0 da

ys

-

(Not

e 1)

-

Inv

estm

ent C

o., L

td. a

ccou

nted

w

ithin

the

end

of e

ach

mon

th

by

the

equi

ty m

etho

d

Lien

She

ng E

nter

prise

s Cor

p.A

n in

veste

e co

mpa

ny o

f Nan

lien

Abo

ut 2

mon

ths a

fter s

ales

-

(Not

e 1)

-

In

tern

atio

nal C

orp.

acc

ount

ed

b

y th

e eq

uity

met

hod

Xin

Ya

Ente

rpris

es C

orp.

Two

mon

ths a

fter s

ales

-

(Not

e 1)

-

Uni

-Pre

siden

t Ove

n Ba

kery

Cor

p.Su

bsid

iary

acc

ount

ed b

y th

e eq

uity

With

in 1

mon

ths a

fter s

ales

-

(Not

e 1)

-

m

etho

d

Tung

Sam

Ent

erpr

ises C

orp.

An

inve

stee

com

pany

of N

anlie

nA

bout

1 m

onth

afte

r sal

es-

(N

ote

1)-

In

tern

atio

nal C

orp.

acc

ount

ed b

y

th

e eq

uity

met

hod



Perc

enta

ge

of n

et

Perc

enta

ge o

f

P

urch

ases

/sale

s Re

latio

nshi

p w

ith P

urch

ases

purc

hase

sno

tes o

r acc

ount

s

com

pany

Nam

e of

the

coun

terp

artie

sth

e co

mpa

ny

/sal

es

Am

ount

/ sa

les

Cred

it te

rms

Uni

tpr

ice

Cred

it te

rms

Am

ount

rece

ivab

le/p

ayab

leN

ote

Not

es o

r acc

ount

s rec

eiva

ble

/ (pa

yabl

e)

Des

crip

tion

of th

e tra

nsac

tion

Des

crip

tion

of a

nd re

ason

s for

diffe

renc

e in

tran

sact

ion

term

s

com

para

ed to

non

-rela

ted

party

tran

sact

ions

Hua

Zuo

Cor

p.-

$

(N

ote

1)-

Lien

She

ng E

nter

prise

s Cor

p.A

bout

2 w

eeks

afte

r sal

es-

(N

ote

1)-

Kai

Xin

Foo

d Co

rp.

Abo

ut 1

mon

th a

fter s

ales

-

(Not

e 1)

-

Chen

g M

iao

Co.,

Ltd.

Abo

ut 2

wee

ks a

fter s

ales

-

(Not

e 1)

-

Pres

iden

t Kik

kom

an In

c.Su

bsid

iary

acc

ount

ed b

y th

e eq

uity

pu

rcha

seW

ithin

1 m

onth

-

-

-

m

etho

d

Pres

iden

t Niss

hin

Corp

.W

ithin

15

days

afte

r sal

es-

(N

ote

2)-

Pres

iden

t Pac

kagi

ng In

d. C

orp.

With

in 1

mon

th

-

--

Uni

-Pre

siden

t To

n-Y

i Ind

ustri

al C

orp.

Subs

idia

ry a

ccou

nted

by

the

equi

ty

purc

hase

With

in 5

0 da

ys-

(N

ote

2)-

En

terp

rise

Corp

.

met

hod

Wei

Lia

n En

terp

rises

Cor

p.A

n in

veste

e co

mpa

ny o

f Nan

lien

With

in 1

mon

th

-

(Not

e 2)

-

In

tern

atio

nal C

orp.

acc

ount

ed b

y

th

e eq

uity

met

hod

Nan

lien

Inte

rnat

iona

lLie

n Bo

Ent

erpr

ises

An

inve

stee

com

pany

acc

ount

ed b

y th

e(s

ales

)15

60da

ys-

-

-

Co

rp.

eq

uity

met

hod

Tun

Hsia

ng E

nter

prise

s Cor

p.-

-

-

U-C

hain

s Ent

erpr

ises C

orp.

-

--

Lien

Lu

Ente

rpris

es C

orp.

Clo

se it

s acc

ount

90

days

-

-

-

with

in th

e en

d of

eac

h m

onth

.


AU

DIT

OR

'SR

EP

OR

TA

ND

FIN

AN

CIA

LS

TA

TE

ME

NT

S

Perc

enta

ge

of n

et

Perc

enta

ge o

f

P

urch

ases

/sale

s Re

latio

nshi

p w

ith P

urch

ases

purc

hase

sno

tes o

r acc

ount

s

com

pany

Nam

e of

the

coun

terp

artie

sth

e co

mpa

ny

/sal

es

Am

ount

/ sa

les

Cred

it te

rms

Uni

tpr

ice

Cred

it te

rms

Am

ount

rece

ivab

le/p

ayab

leN

ote

Not

es o

r acc

ount

s rec

eiva

ble

/ (pa

yabl

e)

Des

crip

tion

of th

e tra

nsac

tion

Des

crip

tion

of a

nd re

ason

s for

diffe

renc

e in

tran

sact

ion

term

s

com

para

ed to

non

-rela

ted

party

tran

sact

ions

Pres

iden

t Cha

inRe

tail

Supp

ort I

nter

natio

nal C

orp.

Subs

idia

ry a

ccou

nted

by

the

equi

ty

purc

hase

1040

days

(Not

e 3)

--

Sto

re C

orp.

met

hod

Uni

-Pre

siden

t Col

d-Ch

ain

Corp

.15

30da

ys(N

ote

3)-

-

Wisd

om D

istrib

utio

n Se

rvic

es C

orp.

An

inve

stee

com

pany

acc

ount

ed b

y th

e15

35da

ys(N

ote

3)-

-

equi

ty m

etho

d

Uni

-Pre

siden

t Ent

erpr

ise C

orp.

The

Com

pany

Clos

e its

acc

ount

30

days

-

--

with

in th

e en

d of

eac

h m

onth

.

Pres

iden

t Tra

nsne

t Cor

p.Su

bsid

iary

acc

ount

ed b

y th

e eq

uity

Cl

ose

its a

ccou

nt 1

5 da

ys

-

--

met

hod

with

in th

e en

d of

eac

h m

onth

.

Pres

iden

t Mus

ashi

no C

orp.

An

inve

stee

com

pany

acc

ount

ed b

y th

eCl

ose

its a

ccou

nt 2

5 da

ys

-

--

eq

uity

met

hod

with

in th

e en

d of

eac

h m

onth

Ton-

Yi I

ndus

trial

To

yota

Tsu

sho

Corp

.To

yota

Tsu

sho

Corp

. is t

he d

irect

or o

fth

e sa

me

as re

gula

r-

-

-

Cor

p. T

on Y

i Ind

ustri

al C

orp.

Caym

an T

on Y

i Ind

ustri

al

An

inve

stee

com

pany

acc

ount

ed b

y th

e(s

ales

)(N

ote

4)-

-

-

Hol

ding

s Ltd

.

equi

ty m

etho

d

TTET

Uni

on C

orp.

Subs

idia

ry a

ccou

nted

by

the

equi

ty

(sal

es)

the

sam

e as

regu

lar

-

--

met

hod

Uni

-Pre

siden

t Ent

erpr

ise C

orp.

The

Com

pany

the

sam

e as

regu

lar

-

--

Hon

g K

ong

Ton

YI I

ndus

trial

Th

e Co

mpa

ny's

subs

idia

ry in

veste

dth

e sa

me

as re

gula

r-

-

-

Hol

ding

Ltd

.

thro

ugh

Caym

an T

on Y

i Ind

ustir

al

H

oldi

ngs L

td.

Pres

iden

t Pr

esid

ent C

hain

Sto

re C

orp.

Subs

idia

ry a

ccou

nted

by

the

equi

ty

(ser

vice

the

sam

e as

regu

lar

-

--

Inf

orm

atio

n Co

rp.

met

hod

rev

enue

)

(sal

es)

the

sam

e as

regu

lar

-

--



Perc

enta

ge

of n

et

Perc

enta

ge o

f

P

urch

ases

/sale

s Re

latio

nshi

p w

ith P

urch

ases

purc

hase

sno

tes o

r acc

ount

s

com

pany

Nam

e of

the

coun

terp

artie

sth

e co

mpa

ny

/sal

es

Am

ount

/ sa

les

Cred

it te

rms

Uni

tpr

ice

Cred

it te

rms

Am

ount

rece

ivab

le/p

ayab

leN

ote

Not

es o

r acc

ount

s rec

eiva

ble

/ (pa

yabl

e)

Des

crip

tion

of th

e tra

nsac

tion

Des

crip

tion

of a

nd re

ason

s for

diffe

renc

e in

tran

sact

ion

term

s

com

para

ed to

non

-rela

ted

party

tran

sact

ions

Uni

-Pre

siden

t U

ni-P

resid

ent E

nter

prise

Cor

p.Th

e Co

mpa

nypu

rcha

ses

40da

ys-

$W

ithin

15

50-

Col

d-Ch

ain

Corp

. d

ays

Pres

iden

t Mus

ashi

no C

orp.

An

inve

stee

com

pany

of P

resid

ent

40da

ys-

With

in 1

550

-

Ch

ain

Stor

e Co

rp. a

ccou

nted

day

s

b

y th

e eq

uity

met

hod

Pres

iden

t Cha

in S

tore

Cor

p.Su

bsid

iary

acc

ount

ed b

y th

e eq

uity

(s

ales

)Cl

ose

its a

ccou

nt 2

0~45

(N

ote

5)-

-

met

hod

day

s with

in th

e en

d of

eac

h

mon

th

Reta

il Su

ppor

t Tu

ng A

ng E

nter

prise

s Cor

p.A

n in

veste

e co

mpa

ny o

f Kai

Yu

purc

hase

s15

45da

ys-

-

-

Int

erna

tiona

l Cor

p.

Inve

stmen

t Co.

, Ltd

. acc

ount

ed

by

the

equi

ty m

etho

d

Uni

-Pre

siden

t Ent

erpr

ise C

orp.

The

Com

pany

Clos

e its

acc

ount

30

days

-

-

-

with

in th

e en

d of

eac

h m

onth

(For

the

six m

onth

s end

ed

Jun

e 30

, 200

3 w

as 2

mon

ths a

fter s

ales

. )

Lien

Bo

Ente

rpris

esA

n in

veste

e co

mpa

ny o

f Nan

lien

1545

days

-

--

In

tern

atio

nal C

orp.

acc

ount

ed

b

y th

e eq

uity

met

hod

Pres

iden

t Cha

in S

tore

Cor

p.Su

bsid

iary

acc

ount

ed b

y th

e eq

uity

(s

ales

)th

e sa

me

as re

gula

r(N

ote

5)-

-

met

hod

Tung

Ang

U

ni-P

resid

ent E

nter

prise

Cor

p.Th

e Co

mpa

nypu

rcha

ses

Clos

e its

acc

ount

eve

ry 1

0-

-

-

Ent

erpr

ises C

orp.

da

ys a

nd re

mit

with

in 4

0

Pres

iden

t Pac

kagi

ngU

ni-P

resid

ent E

nter

prise

Cor

p.Th

e Co

mpa

ny(s

ales

)1

mon

th

-

--

In

c. C

orp.


AU

DIT

OR

'SR

EP

OR

TA

ND

FIN

AN

CIA

LS

TA

TE

ME

NT

S

Perc

enta

ge

of n

et

Perc

enta

ge o

f

P

urch

ases

/sale

s Re

latio

nshi

p w

ith P

urch

ases

purc

hase

sno

tes o

r acc

ount

s

com

pany

Nam

e of

the

coun

terp

artie

sth

e co

mpa

ny

/sal

es

Am

ount

/ sa

les

Cred

it te

rms

Uni

tpr

ice

Cred

it te

rms

Am

ount

rece

ivab

le/p

ayab

leN

ote

Not

es o

r acc

ount

s rec

eiva

ble

/ (pa

yabl

e)

Des

crip

tion

of th

e tra

nsac

tion

Des

crip

tion

of a

nd re

ason

s for

diffe

renc

e in

tran

sact

ion

term

s

com

para

ed to

non

-rela

ted

party

tran

sact

ions

Caym

an T

on

Ton-

Yi I

ndus

trial

Cor

p.Su

bsid

iary

acc

ount

ed b

y th

e eq

uity

pu

rcha

se-

-

$

-

-

met

hod

Yi I

ndus

trial

Fujia

n To

n Y

i Tin

plat

e Co

., Lt

d.A

n in

veste

e co

mpa

ny a

ccou

nted

by

(sal

es)

-

-

--

H

oldi

ngs L

td.

the

equi

ty m

etho

d

Jiang

su T

on Y

i Tin

plat

e Co

., Lt

d.-

-

-

-

Kun

shan

Pre

siden

t H

efei

Pre

siden

t Ent

erpr

ises C

o.,

An

inve

stee

com

pany

of P

resid

ent

purc

hase

Ada

ptin

g th

e se

ttlem

ent o

f (N

ote

7)(N

ote

6)-

Ent

erpr

ises F

ood

Ltd

.

Ente

rpris

es (C

hina

) Inv

estm

ent

ac

coun

ts pe

r mon

th, t

he

Co.

, Ltd

.

Co.,L

td. a

ccou

nted

by

the

equi

ty

am

ount

of t

he sa

les

m

etho

d

(pur

chas

es) o

f inv

ento

ries

w

ill b

e re

ceiv

ed (r

epai

d)

in

the

next

mon

th.

(sal

es)

-

(Not

e 6)

-

Kun

shan

Pre

siden

t Kik

kom

an

An

inve

stee

com

pany

of K

ai Y

u pu

rcha

se-

-

-

Bio

tech

nolo

gy C

o., L

td.

(BV

I) In

vestm

ent C

o., L

td.

acc

ount

ed b

y th

e eq

uity

met

hod

Wuh

an P

resid

ent

Nan

chan

g Pr

esid

ent E

nter

prise

s A

n in

veste

e co

mpa

ny o

f pu

rcha

se Ir

regu

larly

sche

dule

d to

(Not

e 7)

(Not

e 6)

-

Co.

, Ltd

. P

resid

ent E

nter

prise

s(Ch

ina)

pa

y

Ent

erpr

ises F

ood

In

vestm

ent C

o.,L

td. a

ccou

nted

(sal

es)

Irre

gula

rly sc

hedu

led

to(N

ote

7)(N

ote

6)-

Co.

, Ltd

.

by th

e eq

uity

met

hod

m

ake

colle

ctio

ns

Gua

ngzh

ou P

resid

entF

uzho

u Pr

esid

ent E

nter

prise

s Co.

,A

n in

veste

e co

mpa

ny o

f pu

rcha

se Ir

regu

larly

sche

dule

d to

(Not

e 8)

(Not

e 6)

-

Ent

erpr

ises C

o., L

td L

td.

Kai

Yu

(BV

I) In

vestm

ent C

o.,L

td.

pa

y

acc

ount

ed b

y th

e eq

uity

met

hod

(sal

es)

Irre

gula

rly sc

hedu

led

to(N

ote

8)(N

ote

6)-



Perc

enta

ge

of n

et

Perc

enta

ge o

f

P

urch

ases

/sale

s Re

latio

nshi

p w

ith P

urch

ases

purc

hase

sno

tes o

r acc

ount

s

com

pany

Nam

e of

the

coun

terp

artie

sth

e co

mpa

ny

/sal

es

Am

ount

/ sa

les

Cred

it te

rms

Uni

tpr

ice

Cred

it te

rms

Am

ount

rece

ivab

le/p

ayab

leN

ote

Not

es o

r acc

ount

s rec

eiva

ble

/ (pa

yabl

e)

Des

crip

tion

of th

e tra

nsac

tion

Des

crip

tion

of a

nd re

ason

s for

diffe

renc

e in

tran

sact

ion

term

s

com

para

ed to

non

-rela

ted

party

tran

sact

ions

Fuzh

ou P

resid

ent

Gua

ngzh

ou P

resid

ent E

nter

prise

s A

n in

veste

e co

mpa

ny o

f Pre

siden

tpu

rcha

se Ir

regu

larly

sche

dule

d to

(Not

e 8)

(Not

e 6)

-

Ent

erpr

ises C

o.,

Co.

, Ltd

.

Ente

rpris

es (C

hain

) Inv

estm

ent C

o.,

pa

y

Ltd

.

Ltd.

acc

ount

ed b

y th

e eq

uity

met

hod

(sal

es)

Irre

gula

rly sc

hedu

led

to(N

ote

8)(N

ote

6)-

m

ake

colle

ctio

ns

Nan

chan

g Pr

esid

ent

Wuh

an P

resid

ent E

nter

prise

s Foo

d A

n in

veste

e co

mpa

ny o

f Pre

siden

tpu

rcha

se Ir

regu

larly

sche

dule

d to

(Not

e 7)

(Not

e 6)

-

Ent

erpr

ises C

o.,

Co.

, Ltd

.

Ente

rpris

es (C

hain

) Inv

estm

ent C

o.,

pa

y

Ltd

.

Ltd.

acc

ount

ed fo

r by

the

equi

ty(s

ales

) Ir

regu

larly

sche

dule

d to

(Not

e 7)

(Not

e 6)

-

m

etho

d m

ake

colle

ctio

ns

Har

bin

Pres

iden

t Sh

enya

ng P

resid

ent E

nter

prise

s pu

rcha

se 3

mon

ths

-

--

Ent

erpr

ises C

o.,

Co.

, Ltd

.

Ltd

.

Shen

yang

Pre

siden

tH

arbi

n Pr

esid

ent E

nter

prise

s Co.

,(s

ales

) C

lose

its a

ccou

nt 3

-

45

75 d

ays a

fter

-

Ent

erpr

ises C

o.,

Ltd

. m

onth

s w

ithin

the

end

sa

les

Ltd

.

of e

ach

mon

th.

Xin

jiang

Pre

siden

t Ent

erpr

ises F

ood

(sal

es)

Clo

se it

s acc

ount

2-

45

75 d

ays a

fter

-

Co

., Lt

d. m

onth

s w

ithin

the

end

sa

les

o

f eac

h m

onth

.

Tian

jiang

Pre

siden

t PT

ABC

Pre

siden

t Ent

erpr

ises

An

inve

stee

com

pany

of C

aym

an(s

ales

) 3

0-12

0day

s-

-

- E

nter

prise

s Foo

d I

ndon

esia

Pe

sidie

nt H

oldi

ngs L

td. A

ccou

nted

Co.

, Ltd

.

b

y th

e eq

uity

met

hod

Xin

jiang

Pre

siden

t Sh

enya

ng P

resid

ent E

nter

prise

s A

n in

veste

e co

mpa

ny o

f Pre

siden

tpu

rcha

se 3

0day

s-

-

- E

nter

prise

s Foo

d

Co.

, Ltd

.

Ente

rpris

es (C

hain

) Inv

estm

ent C

o.,

Co.

, Ltd

.

Ltd.

acc

ount

ed b

y th

e eq

uity

met

hod


AU

DIT

OR

'SR

EP

OR

TA

ND

FIN

AN

CIA

LS

TA

TE

ME

NT

S

Perc

enta

ge

of n

et

Perc

enta

ge o

f

P

urch

ases

/sale

s Re

latio

nshi

p w

ith P

urch

ases

purc

hase

sno

tes o

r acc

ount

s

com

pany

Nam

e of

the

coun

terp

artie

sth

e co

mpa

ny

/sal

es

Am

ount

/ sa

les

Cred

it te

rms

Uni

tpr

ice

Cred

it te

rms

Am

ount

rece

ivab

le/p

ayab

leN

ote

Not

es o

r acc

ount

s rec

eiva

ble

/ (pa

yabl

e)

Des

crip

tion

of th

e tra

nsac

tion

Des

crip

tion

of a

nd re

ason

s for

diffe

renc

e in

tran

sact

ion

term

s

com

para

ed to

non

-rela

ted

party

tran

sact

ions

Hef

ei P

resid

ent

Kun

shan

Pre

siden

t Ent

erpr

ises

purc

hase

Ada

ptin

g th

e se

ttlem

ent o

f (N

ote

7)(N

ote

6)-

Ent

erpr

ises C

o.,

Foo

d Co

., Lt

d.

acco

unts

per m

onth

, the

Ltd

.

amou

nt o

f the

sale

s

(pur

chas

es) o

f inv

ento

ries

w

ill b

e re

ceiv

ed (r

epai

d)

in th

e ne

xt m

onth

.(s

ales

)(N

ote

7)(N

ote

6)-

Fujia

n To

n Y

i Ca

yman

Ton

Yi I

ndus

trial

A

n in

vesto

r of F

ujia

m T

on Y

i pu

rcha

ses

-

US$

--

- T

inpl

ate

Co.,

Ltd.

H

oldi

ngs L

td.

Ti

npla

te C

o., L

td.

Chen

gdu

Ton

Yi I

ndus

trial

A

n in

veste

e co

mpa

ny o

f Cay

man

(sal

es)

-

-

--

Pa

ckag

ing

Corp

.

Pres

iden

t Hol

ding

s Ltd

. Acc

ount

ed

by th

e eq

uity

met

hod

Jiang

su T

on Y

i Ca

yman

Ton

Yi I

ndus

trial

An

inve

stor o

f Jia

ngsu

Ton

Yi

purc

hase

s-

-

-

- T

inpl

ate

Co.,

Ltd.

H

oldi

ngs L

td.

Ti

npla

te C

o.,L

td.

Wux

i Ton

Yi I

ndus

trial

Pac

kagi

ng

An

inve

stee

com

pany

of C

aym

an(s

ales

)-

-

-

-

Corp

.

Pres

iden

t Hol

ding

s Ltd

. acc

ount

ed

by th

e eq

uity

met

hod

Wux

i Ton

Yi

Jiang

su T

on Y

i Tin

plat

e Co

., Lt

d.pu

rcha

ses

-

-

--

Ind

ustri

al P

acka

ging

Cor

pCh

engd

u To

n Y

iFu

jian

Ton

Yi T

inpl

ate

Co.,

Ltd.

-

-

--

In

dustr

ial P

acka

ging

Cor

p.

(Not

e 8)

:The

sale

s and

pru

chas

es p

rices

are

90

perc

ent t

o G

uang

zhou

Pre

siden

t Ent

erpr

iseds

Co.

, Ltd

. giv

es F

uzho

u Pr

esid

ent E

nter

prise

s Co.

, Ltd

. 10%

off

pric

es o

f fra

nchi

se.

(Not

e 6)

:The

stan

dard

per

iod

of p

aym

ent t

o re

gula

r cus

tom

ers i

s with

in th

e ne

gotia

ted

perio

d.

(Not

e 4)

: The

col

lect

ion

perio

d of

Ton

Yi I

ndus

trial

Cor

p. is

long

er b

ecau

se th

e co

llect

ion

depe

nds o

n th

e re

mitt

ance

of t

he p

aym

ent u

nder

the

mai

nlan

d Ch

ina

subs

idia

ries o

f Cay

man

Ton

Yi I

ndus

trial

Ltd

.

(Not

e 7)

:The

sale

s and

pur

chas

es p

rices

to re

late

d-pa

rties

is c

ost p

lus f

reig

ht.

(Not

e 2)

: The

stan

dard

per

iod

of p

aym

ent t

o re

gula

r cus

tom

ers i

s with

in o

ne m

onth

, it d

epen

ds o

n cl

ient

’s p

aym

ent p

olic

y.(N

ote

1): T

he st

anda

rd p

erio

d of

col

lect

ion

to re

gula

r cus

tom

ers i

s with

in tw

o w

eeks

afte

r sal

es, a

nim

al fe

ed w

ithin

60

75 d

ays a

fter s

ales

and

food

stuff

with

in 1

015

day

s afte

r sal

es, i

t dep

ends

on

clie

nt’s

cre

dit w

orth

ines

s.

(Not

e 3)

: The

pur

chas

e co

st fro

m R

etai

l Sup

port

Inte

rnat

iona

l Cor

p., U

ni-P

resid

ent C

old–

Chai

n Co

rp. a

nd W

isdom

Dist

ribut

ion

Serv

ice

Corp

. inc

lude

s mar

kup

com

pute

d b y

neg

otia

ted

rate

acc

ordi

ng to

type

s of g

oods

.

(Not

e 5)

: The

sale

s of R

etai

l Su p

port

Inte

rnat

iona

l Cor

p. a

nd U

ni-P

resid

ent C

old-

Chai

n Co

rp. i

nclu

des m

arku

p co

mpu

ted

by n

egot

iate

d ra

te a

ccor

ding

to ty

pes o

f goo

ds.



(8)

Rec

eiva

bles

from

rela

ted

parti

es e

xcee

ding

the

low

er o

f NT$

100,

000

and

20 p

erce

nt o

f the

cap

ital s

tock

(Uni

t in

thou

sand

s of

cur

renc

ies

indi

cate

d):

Allo

wan

ce fo

r Th

e na

me

of th

e C

ompa

nyN

ame

of th

e co

unte

r par

tyR

elat

ions

hip

Gen

eral

Led

ger a

ccou

nts

Am

ount

Turn

over

rate

Am

ount

Res

olve

Sebs

eque

nt b

alan

cedo

ubtfu

l am

ount

s

Uni

-Pre

side

nt E

nter

pris

eU

ni-P

resi

dent

Col

d-C

hain

Cor

p.Th

e C

ompa

ny's

Subs

idia

ry a

ccou

nted

Acc

ount

s R

ecei

vabl

es

Cor

p. b

y th

e eq

uity

met

hod

Oth

er re

ceiv

able

s

Ret

ail S

uppo

rt In

tern

atio

nal C

orp.

The

Com

pany

's Su

bsid

iary

acc

ount

ed A

ccou

nts

Rec

eiva

bles

by

the

equi

ty m

etho

dO

ther

rece

ivab

les

Tung

Ang

Ent

erpr

ises

Cor

p.A

n in

vest

ee c

ompa

ny o

f Kai

A

ccou

nts

Rec

eiva

bles

Yu

Inve

stm

entC

o., L

td.

Oth

er re

ceiv

able

s

acc

ount

ed b

y th

e eq

uity

met

hod

Tun

Hsi

ang

Ente

rpris

es C

orp.

An

inve

stee

com

pany

by

of N

anlie

nA

ccou

nts

Rec

eiva

bles

In

tern

atio

nal C

orp.

acc

ount

ed

Oth

er re

ceiv

able

s

b

y th

e eq

uity

met

hod

Tung

Shu

n En

terp

rises

Cor

p.A

ccou

nts

Rec

eiva

bles

Oth

er re

ceiv

able

s

Ton-

Yi I

ndus

trial

Cor

p.C

aym

an T

on Y

i Ind

ustir

al H

oldi

ngs

An

inve

stee

com

pany

acc

ount

ed

Acc

ount

s R

ecei

vabl

es b

y th

e eq

uity

met

hod

Pres

iden

t Inf

orm

atio

n C

orp.

Pres

iden

t Cha

in S

tore

Cor

p.Th

e C

ompa

ny's

Subs

idia

ry a

ccou

nted

Acc

ount

s R

ecei

vabl

es

by

the

equi

ty m

etho

d

Uni

-Pre

side

nt C

old-

Cha

inPr

esid

ent C

hain

Sto

re C

orp.

Acc

ount

s R

ecei

vabl

es

Cor

p.

Ret

ail S

uppo

rt In

tern

atio

nal

Pres

iden

t Cha

in S

tore

Cor

p.A

ccou

nts

Rec

eiva

bles

Cor

p.

Cay

man

Ton

Yi I

ndus

trial

Ji

angs

u To

n Y

i Tin

plat

e C

o., L

td.

An

inve

stee

com

pany

acc

ount

ed b

yA

ccou

nts

Rec

eiva

bles

Hol

ding

s Lt

d. t

he e

quity

met

hod

Fujia

n To

n Y

i Tin

plat

e C

o., L

td.

Acc

ount

s R

ecei

vabl

es

Hon

g K

ong

Ton

Yi I

ndus

trial

Oth

er re

ceiv

able

s

Hol

ding

Ltd.

Hef

ei P

resi

dent

Ent

erpr

ises

K

unsh

an P

resi

dent

Ent

erpr

ises

Foo

dAn

inve

stee

com

pany

of P

resi

dent

Acc

ount

s R

ecei

vabl

es

Co.

, Ltd

. C

o., L

td.

En

terp

rises

(Chi

na) I

nves

tmen

t Co.

,

Lt

d. a

ccou

nted

by

the

equi

ty m

etho

dPr

esid

ent I

nter

natio

nal

G-A

dvan

ced

Sem

icon

duct

or

An

inve

stee

com

pany

acc

ount

ed b

yO

ther

Rec

eiva

bles

(Not

e)

Dev

elop

men

t Cor

p. T

echn

olog

y C

orp.

the

equ

ity m

etho

d

-rel

ated

par

ty

Pres

iden

t Cha

in S

tore

Cor

p.R

etai

l Sup

port

Inte

rnat

iona

l Cor

p.Th

e pr

esid

ent i

s its

dire

ctor

Acc

ount

s R

ecei

vabl

es

Oth

er re

ceiv

able

s

Def

erre

d ba

lanc

eO

ther

rece

ivab

les-

rela

ted

party

Am

ount


AU

DIT

OR

'SR

EP

OR

TA

ND

FIN

AN

CIA

LS

TA

TE

ME

NT

S

Allo

wan

ce fo

r Th

e na

me

of th

e C

ompa

nyN

ame

of th

e co

unte

r par

tyR

elat

ions

hip

Gen

eral

Led

ger a

ccou

nts

Am

ount

Turn

over

rate

Am

ount

Res

olve

Sebs

eque

nt b

alan

cedo

ubtfu

l am

ount

s

Def

erre

d ba

lanc

eO

ther

rece

ivab

les-

rela

ted

party

Am

ount

Pres

iden

t (B

VI)

Inte

rnat

iona

lX

iang

Lu

Indu

strie

s Lt

d.Th

e pr

esid

ent i

s its

dire

ctor

Oth

er R

ecei

vabl

es-r

elat

ed

par

ty

Cay

man

Pre

side

nt H

oldi

ng

Pros

pect

Top

Dev

elop

men

t Ltd

.A

n in

vest

ee c

ompa

ny o

f Cay

man

O

ther

Rec

eiva

bles

-rel

ated

Lt

d. P

resi

dent

Hol

ding

s Lt

d. a

ccou

nted

p

arty

by

the

equi

ty m

etho

d

Nel

la L

td.

Pros

pect

Top

Dev

elop

men

t Ltd

.O

ther

rece

ivab

les

Cay

man

Nan

lien

Hol

ding

sN

ella

Ltd

.A

n in

vest

ee c

ompa

ny a

ccou

nted

O

ther

rece

ivab

les

Lt

d. b

y th

e eq

uity

met

hod

Hon

g K

ong

Ton

Yi I

ndus

trial

Fujia

n To

n Y

i Tin

plat

e C

o., L

td.

An

inve

stee

com

pany

of C

aym

an

H

oldi

ngs

Ltd.

To

n Y

i Ind

ustri

al H

oldi

ng L

td.

ac

coun

ted

by th

e eq

uity

met

hod

Fujia

n To

n Y

i Tin

plat

e C

o.,

Jian

gsu

Ton

Yi T

inpl

ate

Co.

, Ltd

.

Ltd

.

(Not

e) T

he re

ceiv

able

s ar

e fr

om re

fund

of c

apita

l inv

estm

ent.



(9)Derivative financial instrument transactions (Units in thousands of currencies indicated):

A. The Company’s derivative financial instrument transactions (Note 10(1))

B. Cayman President Holdings Ltd.

a. Contract amount or notional principal amount and credit risk

December 31, 2003

Contract amount

Derivative financial instrument (Notional principal amount) Credit risk

Interest rate swap contracts USD$ $

As the counterparties are banks with good credit ratings, the credit risk is

minimal.

b. Market risk

The interest rate swap contracts are used for hedging. Gain or loss resulting

from the fluctuation of market interest rates will be offset by the gain or loss

incurred from the underlying hedged items. Accordingly, the market risk is

minimal.


The purpose of holding derivative financial instruments is for hedging. Due to

the interest and exchange rates on the contracts are certain and hence working

capital of the company should be sufficient. Accordingly, the liquidity risk is

minimal.


Interest rate swap contracts

(I) Transaction terms:

Between October 17 to November 24, 2000, the company signed a contract to pay or receive semi-annually the difference between floating and fixed interest rates during the 3-year period of the contract in US$50,000.

(II) The company signed the interest rate swap contract to hedge the effects of

the assets and liabilities denominated in foreign currencies resulted from the

fluctuation of interest and exchange rates. The hedging instruments are

derivative financial instruments with inverse relationship with the market

value of the hedged positions and they are evaluated periodically.


AU

DIT

OR

'SR

EP

OR

TA

ND

FIN

AN

CIA

LS

TA

TE

ME

NT

S


The liabilities and assets resulted from the interest rate swap contracts were offset. As of December 31, 2003, net assets of US$2,440 resulting from the interest rate swap contracts were recorded as other loss.

C.Ton Yi Industrial Corp.

a. Contract amount or notional principal amount and credit risk December 31, 2003

Contract amount

Derivative financial instruments

(Notional principal

amount) Credit risk

Advance booking forward foreign JPY$

exchange contracts JPY/NTD

Advance booking forward foreign US

exchange contracts USD

Foreign currency option USD/NTD US

Foreign currency option USD/JPY US

Currency Foreign currency option

JPY/USD JPY

Currency swap contracts USD/NTD US

NT

y Currency swap contracts JPY/USD JPY

US

The credit risk stated above represents the ultimate loss from the contracts if

settled at the balance date and defaulted by the counterparties. However, as the

counterparties are banks with good credit ratings, the credit risk is minimal.

b. Market risk

The main purpose of holding derivative financial instruments is to hedge losses

due to fluctuations in interest rates or exchange rates. Gain or loss resulting from

fluctuation of interest or exchange rates will be offset by the gain or loss incurred

from the hedged items. Accordingly, the market risk is minimal.



c. Liquidity risk, cash flow risk, and amount, timing and uncertainty of future cash

demand

Up to December 31, 2003, the Company estimated that before December 27,

2004, the above Advance Purchases Forward Foreign Exchange Contracts will

generate cash inflows of NTD $7,910,053 cash inflows of US$225,910 and cash

outflows of JPY$765,000. The Company estimated that before March 5, 2005,

the Currency Swap Contract will generate cash outflows of JPY $179,640 cash

inflows of $511,044 and cash outflows of US$15,017. Before January 23, 2003,

the Advance Booking Forward Foreign Exchange Contracts will generate cash

inflow of US$3,000 and cash outflows of JPY$370,460. The above Advance

Purchases Forward Foreign Exchange Contracts generated cash outflows of

JPY$310,000 and cash inflows of 1,231,146 and cash outflows of US$33,310

before December 18, 2003, and the Currency Swap Contract generated cash

outflows of JPY$1,923,500 cash outflows of $4,625,053 and cash inflows of

US$149,494 before December 26, 2003. The Company estimated it will generate

cash inflows of US$60,000 and cash outflows of $2,064,570 before March 5,

2005.

The company recognized the premium of the receipts (payments) in

non-operating revenue and expense from sale and purchase forward foreign

exchange option transactions. The company’s option exercise price is based on

the current market value at the fixed rate, and the holding (issuing) period is

matched by the company’s future cash flow, when the contract is due. The

market risk of the foreign exchange rate fluctuation and the impact on the

company’s operations is insignificant.

d. Type of derivative financial instruments, the objectives of holding derivative

financial instruments, and the strategy for achieving the objectives.

The derivative financial instruments held by the company are not for trading

purposes. The company engages in forward foreign exchange contracts, foreign

currency option and currency swap contracts in order to hedge the risks of the

assets, liabilities and commitments denominated in foreign currencies resulting

from fluctuation of exchange rates. The strategy for achieving the objective is to

hedge most of the market risk. The hedging instruments are derivative financial

instruments with inverse relationships with the market value of the hedged

positions. These relationships are evaluated periodically.


AU

DIT

OR

'SR

EP

OR

TA

ND

FIN

AN

CIA

LS

TA

TE

ME

NT

S


Net receipts (payments) on forward foreign exchange Derivative financial instruments December 31, 2003 Advance booking forward foreign

exchange contracts JPY/NTD (Note)

Advance booking forward foreign exchange contracts USD

(Note)

Foreign currency option USD/NTD (Note) Foreign currency option USD/JPY (Note) Foreign currency option JPY/USD (Note) Currency swap contracts USD/NTD (Note) Currency swap contracts JPY/USD (Note)

(Note) As of December 31, 2003, the net receipts in the derivative financial

instruments are recorded as other current liabilities of $79,749 and other

liabilities of $7,360. The unamortized discount of advance booking

forward foreign was $50,557 and recorded as prepayments and other

current assets. The unamortized premium of advance booking forward

foreign was $17,125 and recorded as other current liabilities $8,298 and

other liabilities $8,827. The related exchange loss of $47,557 and $6,100

were recorded as non-operating expense, respectively, for December 31,

2003 and 2002.

f. Fair value of derivative financial instruments.

December 31, 2003

Derivative financial instruments Book value Fair value

Advance booking forward foreign exchange contracts

Foreign currency option

Currency swap contracts

The method and assumptions used to estimate the fair value of derivative

financial instruments are summarized as follows:

The fair value of derivative financial instruments are estimated based on the

amount the company may receive or pay assuming that the contracts are settled

at the balance sheet date. Generally, it includes the current unrealized gain from

open contracts. Most of the derivative financial instruments have prices quoted

by financial institutions.



2.R

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etc.

su

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vest

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ark,

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ream

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ent H

oldi

ngs

C

orp.

Ltd

.


AU

DIT

OR

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OR

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ND

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AN

CIA

LS

TA

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and

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. t

owel

Pres

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ical

Ta

ipei

City

etc

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hole

sale

bus

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s Cor

p.,

pr

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stru

men

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.

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d. e

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Pres

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angh

ai P

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Shan

ghai

City

B

uyin

g, se

lling

and

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kagi

ng I

nc.

Pac

kagi

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orp.

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m

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p.

pack

agin

g m

ater

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Tung

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ang

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c.Ta

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etc

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e op

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and

Dev

elop

men

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of t

he H

otel

s

Co.

, Ltd

. a

nd re

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.

Can

ada

Pres

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anad

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urna

by, B

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ate

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rust

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ish

Prof

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Virg

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s

Pres

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in S

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I) H

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)

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eliv

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orp.

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usas

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Taip

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ityFr

esh

food

Cor

p.U

ni-P

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Ove

n Ta

ipei

City

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read

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aker

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orp.

etc.

Ton-

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trial

C

aym

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on Y

i G

rand

Cay

men

,Pr

ofes

sion

al in

vest

men

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orp.

Ind

ustri

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oldi

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td C

aym

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land

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veca

n C

orp.

etc.

Ho

Chi

Min

h ci

ty,

Man

ufac

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can

s V

ietn

am e

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e

tc.

Pres

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t Fai

r K

ai N

an w

ood

indu

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K

aohs

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City

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ng a

nd D

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ent

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roce

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ds C

orp.

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-Pre

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ogis

tics

Tao y

uan

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enTr

ansp

orta

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ness

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orp.

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ail S

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uan

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spor

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nter

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nal C

orp.

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r Cor

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aint

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shan

Pre

side

nt

Jian

gsu

Prov

ince

Inst

ant n

oodl

esso

ft

Ente

rpris

es

Ente

rpris

es F

ood

Kun

shan

City

drin

ksda

iry p

rodu

cts,

(C

hina

) C

o., L

td.

etc

.

Inve

stm

ent

Gua

ngzh

ou P

resi

dent

G

uang

zhou

City

Inst

ant n

oodl

esso

ft C

o., L

td.

En

terp

rises

Co.

, Ltd

. d

rinks

dairy

pro

duct

s, e

tc.

Wuh

an P

resi

dent

Wuh

an C

ityIn

stan

t noo

dles

soft

En

terp

rises

Foo

d d

rinks

dairy

pro

duct

s,

Co.

, Ltd

. e

tc.


AU

DIT

OR

'SR

EP

OR

TA

ND

FIN

AN

CIA

LS

TA

TE

ME

NT

S

Inco

me

(loss

)

E

ndin

g ba

lanc

eB

egin

ning

Net

inco

me

reco

gniz

ed

o

f the

b

alan

ce o

f th

eSh

ares

Perc

enta

ge (l

oss)

of

by th

eIn

vest

ors

Nam

e of

Inve

stee

sA

ddre

ssM

ain

Act

iviti

es

cur

rent

per

iod

cur

rent

per

iod

( in

thou

sand

s) o

f ow

ners

hip

Boo

k V

alue

the

inve

stee

com

pany

Not

e

Hol

ding

s sta

tus

Orig

inal

inve

stm

ents

Che

ngdu

Pre

side

ntSi

chua

n Pr

ovin

ce

Inst

ant n

oodl

esso

ft

Ente

rpris

es F

ood

wen

jiang

Hsi

en d

rinks

mea

t

Co.

, Ltd

.da

iry p

rodu

cts,

etc.

Shen

yang

Pre

side

ntSh

enya

ng C

ityIn

stan

t noo

dles

soft

En

terp

rises

Co.

, Ltd

. d

rinks

mea

tda

iry p

rodu

cts,

etc.

Zhon

gsha

n Pr

esid

ent

Gua

ngdo

ng P

rovi

nce

Mar

ine

prod

ucts

, ani

mal

En

terp

rises

Co.

, Ltd

. Z

hong

shan

City

pro

duct

s, pe

t fee

ds, e

tc.

Hef

ei P

resi

dent

Anh

ui P

rovi

nce

Inst

ant n

oodl

esso

ft

Ente

rpris

es C

o., L

td.

Hef

ei C

ity.

drin

ksda

iry p

rodu

cts,

etc

.X

injia

ng P

resi

dent

X

injia

ng P

rovi

nce

Tom

ato

prod

ucts

, sof

t

Ent

erpr

ises

Foo

d U

rern

gi C

ity d

rinks

, Ins

tant

noo

dles

,

Co.

, Ltd

. e

tc.

Qin

gdao

Pre

side

nt F

eed

Qin

gdao

City

Feed

, bre

ed st

ock

and

& L

ives

tock

Co.

, Ltd

.

poul

try

Nan

chan

g Pr

esid

ent

Jian

gxi P

rovi

nce

Inst

ant n

oodl

esso

ft E

nter

pris

es C

o., L

td.

Nan

chan

g C

ity e

tc.

drin

ksda

iry p

rodu

cts,

etc

. e

tc.

Uni

-Pre

side

nt

Uni

-Pre

side

ntH

o C

hi M

inh,

Food

, flo

ur a

nd o

il

Sou

thea

st A

sia

Vie

tnam

Co.

, Ltd

. C

ity, V

ietn

am

Hol

ding

s Lim

ited.

Uni

-Pre

side

ntB

angk

ok,

soft

drin

ksIn

stan

t

(Tha

iland

) T

haila

nd e

tc.

food

s etc

.

Ltd

.etc

.K

ai Y

u (B

VI)

So

ngjia

ng P

resi

dent

Sh

angh

ai C

ity e

tc.

Feed

etc

.

Inv

estm

ent C

o.,

Ent

erpr

ises

Co.

, Ltd

.etc

.

Ltd

.Inve

stm

ent

Co.

, Ltd

.

Uni

on C

hine

se

Chi

Fu

Ente

rpris

es C

orp

Taip

ei C

itySa

les

Cor

p.



Inco

me

(loss

)

E

ndin

g ba

lanc

eB

egin

ning

Net

inco

me

reco

gniz

ed

o

f the

b

alan

ce o

f th

eSh

ares

Perc

enta

ge (l

oss)

of

by th

eIn

vest

ors

Nam

e of

Inve

stee

sA

ddre

ssM

ain

Act

iviti

es

cur

rent

per

iod

cur

rent

per

iod

( in

thou

sand

s) o

f ow

ners

hip

Boo

k V

alue

the

inve

stee

com

pany

Not

e

Hol

ding

s sta

tus

Orig

inal

inve

stm

ents

Pres

iden

t (B

VI)

U

ni-H

ome

Tech

Cor

p.To

rtola

, Brit

ish

Gen

eral

inve

stm

ent

Int

erna

tiona

l V

irgin

Isla

nds

Inv

estm

ent

Pres

iden

t Ene

rgy

Gra

nd C

aym

an,

Ener

gy in

vest

men

t

Hol

ding

s Lt

d. D

evel

opm

ent

Cay

man

Isla

nds

(C

aym

an Is

land

s) L

td.

Scin

o Ph

arm

(Kun

shan

)Ji

angs

u Pr

ovin

ceM

anuf

actu

ring

of

B

ioch

emic

al T

echn

olo

Kun

shan

City

etc

. b

ioch

emic

al m

edic

ine

C

o., L

td.e

tc.

etc

.

Pres

iden

t Life

Pres

iden

t Life

G

rand

Cay

man

,G

loba

l fin

ance

Sc

ienc

es S

cien

ces C

aym

an C

aym

an Is

land

s

C

o., L

td.

Co.

, Ltd

.

Pres

iden

t Bio

syst

em C

o.Ta

ipei

City

etc

.O

rgan

ism

waf

er e

tc.

Ltd

.etc

.

Nel

la L

td.

Gua

ngzh

ou N

ella

Ltd

.G

uang

zhou

City

Bee

rs, s

oft d

rinks

and

(Not

e 2)

foo

ds, e

tc.

Ton

Yu

Scin

o Ph

arm

Tai

wan

Tain

an H

sien

Bio

chem

istry

Inv

estm

ent I

nc.

Ltd

.

Pres

iden

t Cof

fee

Shan

ghai

Pre

side

nt

Shan

ghai

City

Sale

of c

offe

e

(C

aym

an)

Cof

fee

Co.

, Ltd

.

H

oldi

ngs L

td.

Pres

iden

t Cha

in

Pres

iden

t Cha

in S

tore

M

alay

sia

Labu

an

Prof

essi

onal

inve

stm

ent

Sto

re (B

VI)

(

Labu

an) H

oldi

ngs L

td I

slan

ds

Hol

ding

s Ltd

.Pr

esic

lerc

Ltd

.etc

.To

rtola

, Brit

ish

Prof

essi

onal

inve

stm

ent

V

irgin

s Isl

ands

etc

.

Wis

dom

Pr

esid

ent L

ogis

tics

Taoy

uan

Hsi

enTr

ansp

orta

tion

busi

ness

Dis

tribu

tion

Int

erna

tiona

l Cor

p.

Ser

vice

s Cor

p.

Cay

man

Ton

Yi

Cay

man

Fuj

ian

Ton

Yi

Gra

nd C

aym

an,

Gen

eral

inve

stm

ent

Ind

ustri

al I

ndus

trial

Hol

ding

s C

aym

an Is

land

s

Hol

ding

s Ltd

. L

td.


AU

DIT

OR

'SR

EP

OR

TA

ND

FIN

AN

CIA

LS

TA

TE

ME

NT

S

Inco

me

(loss

)

E

ndin

g ba

lanc

eB

egin

ning

Net

inco

me

reco

gniz

ed

o

f the

b

alan

ce o

f th

eSh

ares

Perc

enta

ge (l

oss)

of

by th

eIn

vest

ors

Nam

e of

Inve

stee

sA

ddre

ssM

ain

Act

iviti

es

cur

rent

per

iod

cur

rent

per

iod

( in

thou

sand

s) o

f ow

ners

hip

Boo

k V

alue

the

inve

stee

com

pany

Not

e

Hol

ding

s sta

tus

Orig

inal

inve

stm

ents

Cay

man

Jian

gsu

Ton

Gra

nd C

aym

an,

Gen

eral

inve

stm

ent

Yi I

ndus

trial

Hol

ding

s C

aym

an Is

land

s

Ltd

.

Hon

g K

ong

Ton

Yi

Hon

g K

ong

etc.

Gen

eral

inve

stm

ent e

tc.

Ind

ustri

al H

oldi

ngs

Ltd

. etc

.

Kun

shan

Pre

side

nt G

uang

zhou

Wan

g G

uang

zhou

City

Man

ufac

turin

g,

Ent

erpr

ises

She

ng In

dust

rial C

o.,

pro

cess

ing

and

sale

s

Foo

d C

o., L

td.

Ltd

. o

f foo

d

Wuh

an P

resi

dent

G

uang

zhou

Wan

g G

uang

zhou

City

etc.

Man

ufac

turin

g,

Ent

erpr

ises

She

ng In

dust

rial C

o.,

pro

cess

ing

and

sale

s

Foo

d C

o., L

td.

Ltd

. etc

. o

f foo

d et

c.

Mei

shan

Pre

side

nt P

resi

dent

Fuc

he

Qin

gdo

City

Man

ufac

turin

g an

d

Fee

d &

(

Qin

gdo)

Co.

, Ltd

. p

roce

ssin

g of

egg

s

Liv

esto

ck C

o.,

Ltd

.

Qin

gdao

Pre

side

nt S

an T

ong

Wan

Fu

Qin

gdo

City

Feed

, bre

ed st

ock

and

Fee

d &

(

Qin

gdo)

Foo

d In

dust

ry

pou

ltry

Liv

esto

ck C

o.,

Co.

, Ltd

.

Ltd

.

Gua

ngzh

ou

Gun

agzh

ou Ji

agua

ngG

uang

zhou

City

Hyp

erm

arke

t

Wan

g Sh

eng

Sup

erm

arke

t Co.

, Ltd

.

In

dust

rial C

o.,

Lt

d.

Pres

iden

t Life

A

ura

Onc

olog

ySu

nny

Bal

e,

Ana

lysi

s of c

ell e

tc.

Sci

ence

s C

aym

an S

yste

ms,

Inc.

etc.

CA

, U.S

.A.e

tc.

Co.

, Lt

d.

Pres

iden

t Cha

in

Phili

ppin

e Se

ven

Cor

p.M

anda

luyo

ung

Ret

ail o

f foo

d an

d

Sto

re (L

abua

n)

City

,Phi

lippi

ne m

erch

andi

se

Hol

ding

s Ltd

.



Inco

me

(loss

)

E

ndin

g ba

lanc

eB

egin

ning

Net

inco

me

reco

gniz

ed

o

f the

b

alan

ce o

f th

eSh

ares

Perc

enta

ge (l

oss)

of

by th

eIn

vest

ors

Nam

e of

Inve

stee

sA

ddre

ssM

ain

Act

iviti

es

cur

rent

per

iod

cur

rent

per

iod

( in

thou

sand

s) o

f ow

ners

hip

Boo

k V

alue

the

inve

stee

com

pany

Not

e

Hol

ding

s sta

tus

Orig

inal

inve

stm

ents

Phili

ppin

e S

even

Con

veni

ence

Q

uezo

n C

ity,

Dis

tribu

tion

and

Cor

p. D

istri

butio

n In

c.et

c. P

hilip

pine

etc

. s

tora

ge e

tc.

Mec

h-Sh

angh

ai P

resi

dent

Shan

ghai

City

Filli

ng st

atio

n an

d

Pre

side

nt M

achi

ne C

o., L

td.

ele

vato

r

(B

VI)

Cor

p.

Mei

shan

Fu

jian

Ton

Yi T

inpl

ate

Fujia

n Pr

ovin

ce

Man

ufac

turin

g of

Pre

side

nt F

eed

Co.

, Ltd

. L

ongh

ai C

ity t

inpl

ates

& L

ives

tock

Co.

, Ltd

.C

aym

an Ji

angs

u Ji

angs

u To

n Y

i Tin

plat

eJi

angs

u Pr

ovin

ceM

anuf

actu

ring

of

Ton

Yi

C

o., L

td.

Wux

i City

tin

plat

es

Ind

ustri

al

Hol

ding

s Ltd

.

(Not

e 1)

It w

as th

e A

mou

nt o

f 12/

31'2

002.

(Not

e 2)

It ha

d be

en li

quid

ated

on

Aug

ust 2

003.


AU

DIT

OR

'SR

EP

OR

TA

ND

FIN

AN

CIA

LS

TA

TE

ME

NT

S

3.

(1)D

iscl

osur

e of

info

rmat

ion

on in

dire

ct in

vest

men

t in

Mai

nlan

d C

hina

(Uni

ts in

thou

sand

s of c

urre

ncie

s ind

icat

ed)

Endi

ng P

erce

ntag

e of

Beg

inni

ng

inve

stm

ent

ow

ners

hip

held

In

vest

men

t

Nam

e of

inve

stee

in M

ain

activ

ities

Inve

stm

ent

inv

estm

ent b

alan

ce b

alan

ce fr

om b

y th

e C

ompa

nyIn

vest

men

t gai

nba

lanc

e as

of

Acc

umul

ated

Mai

nlan

d C

hina

of i

nves

tee

Cap

ital

met

hod

fr

om T

aiw

anPa

ymen

tR

emitt

ance

Tai

wan

(Dire

ct o

r ind

irect

) (lo

ss)

Dec

embe

r 31,

200

3re

mitt

ance

Shan

ghai

Pre

side

nt E

nter

pris

es L

ives

tock

Foo

d C

o., L

td.(N

ote

4)A

nim

al fe

eds,

food

(Not

e 1)

Xin

jiang

Pre

side

nt E

nter

pris

es

Food

Co.

, Ltd

.To

mat

o pr

oduc

ts, i

nsta

nt n

oodl

es, s

oft d

rinks

, etc

.(N

ote

1)

Bei

jing

Pres

iden

t Ent

erpr

ises

D

rinks

& F

ood

Co.

, Ltd

.In

stan

t noo

dles

(Not

e 1)

Tian

jiang

Pre

side

nt E

nter

pris

es

Food

Co.

, Ltd

.Fl

our,

inst

ant n

oodl

es, e

tc.

(Not

e 1)

Tian

jing

Pres

iden

t Int

erna

tiona

l

Food

Co.

, Ltd

.B

iscu

its, f

ood

(Not

e 1)

Che

ngdu

Pre

side

nt E

nter

pris

es

Food

Co.

, Ltd

.In

stan

t noo

dles

, sof

t d

rinks

, dia

ry p

rodu

cts,

etc

.

(Not

e 1)

Kun

shan

Pre

side

nt E

nter

pris

es

Food

Co.

, Ltd

.M

eat,i

nsta

nt n

oodl

es,

so

ft dr

inks

(Not

e 1)

Wuh

an P

resi

dent

Ent

erpr

ises

Foo

d

Co.

, Ltd

.M

eat,i

nsta

nt n

oodl

es,

so

ft dr

inks

(Not

e 1)

Mei

shan

Pre

side

nt F

eed

&

Live

stoc

k C

o., L

td.

Ani

mal

feed

s, ve

geta

ble

oi

l(N

ote

1)

Gua

ngzh

ou P

resi

dent

Ent

erpr

ises

C

o., L

td.

Mea

t,ins

tant

noo

dles

,

soft

drin

ks(N

ote

1)

Shen

yang

Pre

side

nt E

nter

pris

es

Co.

, Ltd

.M

eat,i

nsta

nt n

oodl

es,

so

ft dr

inks

(Not

e 1)

Inve

stm

ent A

mou

nt

The

basi

c in

form

atio

n in

Mai

nlan

d C

hina

as o

f Dec

embe

r 31,

200

3 w

ere

as fo

llow

s



Endi

ng P

erce

ntag

e of

Beg

inni

ng

inve

stm

ent

ow

ners

hip

held

In

vest

men

t

Nam

e of

inve

stee

in M

ain

activ

ities

Inve

stm

ent

inv

estm

ent b

alan

ce b

alan

ce fr

om b

y th

e C

ompa

nyIn

vest

men

t gai

nba

lanc

e as

of

Acc

umul

ated

Mai

nlan

d C

hina

of i

nves

tee

Cap

ital

met

hod

fr

om T

aiw

anPa

ymen

tR

emitt

ance

Tai

wan

(Dire

ct o

r ind

irect

) (lo

ss)

Dec

embe

r 31,

200

3re

mitt

ance

Inve

stm

ent A

mou

nt

Zhon

gsha

n Pr

esid

ent E

nter

pris

es

Co.

, Ltd

.M

arin

e pr

oduc

ts,

liv

esto

ck,

pe

t foo

ds

(Not

e 1)

Shan

ghai

Pre

side

nt In

tern

atio

nal

Fo

od C

o., L

td.

Bis

cuits

, foo

d(N

ote

1)

Nin

gbo

Mal

ting

Co.

, Ltd

.M

alt

(Not

e 1)

Zhan

gjia

gang

Pre

side

nt N

issh

in

Food

Co.

, Ltd

.Fa

ts, f

eed,

flou

r(N

ote

1)

Zhuh

ai K

irin

Pres

iden

t Bre

wer

y

Co.

, Ltd

.B

eers

and

min

eral

wat

er(N

ote

1)

Jiaf

u (T

ianj

ing)

Inte

rnat

iona

l

Trad

ing

Co.

, Ltd

.R

etai

ler

(Not

e 1)

Cho

ngqi

ng C

arre

four

Hyp

erm

arke

t

Cha

inst

ore

Co.

, Ltd

.R

etai

ler

(Not

e 1)

Gua

ngzh

ou Ji

agua

ng S

uper

mar

ket

C

o., L

td. (

Not

e 5)

War

ehou

se &

who

lesa

le(N

ote

1)

Pres

iden

t Ent

erpr

ises

(Chi

na)

In

vest

men

t Cor

pPr

ofes

sion

al in

vest

men

t(N

ote

1)

Qin

gdao

Pre

side

nt F

eed

&

Live

stoc

k C

o., L

td.

Feed

, bre

ed st

ock

and

po

ultry

(Not

e 1)

Hef

ei P

resi

dent

Ent

erpr

ises

C

o., L

td.

Mea

t,ins

tant

noo

dles

, s

oft d

rinks

(Not

e 1)

Har

bin

Pres

iden

t Ent

erpr

ises

C

o., L

td.

Mea

t,ins

tant

noo

dles

, s

oft d

rinks

(Not

e 1)

Pres

iden

t Ent

erpr

ises

(Chi

na)

Fi

nanc

e C

o., L

td.(N

ote

6)Fi

nanc

ing

(Not

e 1)


AU

DIT

OR

'SR

EP

OR

TA

ND

FIN

AN

CIA

LS

TA

TE

ME

NT

S

Endi

ng P

erce

ntag

e of

Beg

inni

ng

inve

stm

ent

ow

ners

hip

held

In

vest

men

t

Nam

e of

inve

stee

in M

ain

activ

ities

Inve

stm

ent

inv

estm

ent b

alan

ce b

alan

ce fr

om b

y th

e C

ompa

nyIn

vest

men

t gai

nba

lanc

e as

of

Acc

umul

ated

Mai

nlan

d C

hina

of i

nves

tee

Cap

ital

met

hod

fr

om T

aiw

anPa

ymen

tR

emitt

ance

Tai

wan

(Dire

ct o

r ind

irect

) (l

oss)

Dec

embe

r 31,

200

3re

mitt

ance

Inve

stm

ent A

mou

nt

Gua

ngzh

ou W

ang

Shen

g In

dust

rial

C

o., L

td.

Man

ufac

turin

g, p

roce

ssin

g a

nd s

ales

of f

ood

(Not

e 1)

Nan

chan

g Pr

esid

ent E

nter

pris

es

Co.

, Ltd

.M

eat,

inst

ant n

oodl

es,

sof

t drin

ks(N

ote

1)

Car

gill-

Pres

iden

t (D

ongu

an) F

eed

Pr

otei

n Te

chno

logy

Co.

, Ltd

.A

nim

al fe

eds

(Not

e 1)

Bei

jing

Pres

iden

t Ent

erpr

ises

D

rinks

& F

ood

Co.

, Ltd

.M

eat,

inst

ant n

oodl

es,

sof

t drin

ks(N

ote

1)

Pres

iden

t Fuc

he (Q

ingd

o) C

o., L

td.

Man

ufac

turin

g an

d p

roce

ssin

g of

egg

s(N

ote

1)

Kun

shan

San

wa

Food

Indu

stry

C

o., L

td.

Flav

orin

g(N

ote

1)

Kun

shan

Pre

side

nt H

ealth

y

Food

Co.

, Ltd

.Ju

ice,

sof

t drin

ks(N

ote

1)

San

Tong

Wan

Fu

(Qin

gdo)

Foo

d

Indu

stry

Co.

, Ltd

.Fe

ed, b

reed

sto

ck a

nd p

oultr

y(N

ote

1)

Zhen

gzho

u Pr

esid

ent E

nter

pris

es

Food

Co.

, Ltd

.M

eat,i

nsta

nt n

oodl

es,

sof

t drin

ks(N

ote

1)



(2)T

he c

eilin

g am

ount

of i

nves

tmen

t in

Mai

nlan

d C

hina

.

(Am

ount

s: in

thou

sand

s of

U/S

dol

lars

& N

T do

llars

)

Acc

umul

ated

inve

stm

ent b

alan

ce fr

om T

aiw

an to

M

ainl

and

Chi

na

Am

ount

app

rove

d by

MO

EA

T

he c

eilin

g am

ount

of i

nves

tmen

t in

Mai

nlan

d C

hina

by

MO

EA

$

(Not

e7)

$

$

(U

S$

) (

US$

)

(Not

e 1)

Indi

rect

inve

stm

ent i

n PR

C th

roug

h ex

istin

g co

mpa

nies

loca

ted

in th

e th

ird

area

.

(Not

e 2)

The

fina

ncia

l sta

tem

ents

are

aud

ited

by th

e C

PA o

f par

ent c

ompa

ny in

Tai

wan

.

(Not

e 3)

The

fin

anci

al s

tate

men

ts a

re a

udite

d by

int

erna

tiona

l ac

coun

ting

offi

ces

affi

liate

d w

ith l

ocal

aud

itor

with

the

acc

ount

ing

offi

ces

in

Rep

ublic

of C

hina

.

(Not

e 4)

Clo

sed

on S

epte

mbe

r 200

3.

(Not

e 5)

Ori

gina

l Nam

e is

Gua

ngzh

ou P

resi

dent

Con

veni

ence

Sto

res

Co.

, Ltd

.

(Not

e 6)

In th

e pr

epar

ator

y st

age,

no

rem

ittan

ce o

f cap

ital.

(Not

e 7)

Cal

cula

te a

t the

rate

of $

33.9

2 (U

/S d

olla

rs to

NT

dolla

rs),

it w

ill b

e $9

,315

,522

at t

he e

xcha

nge

rate

whe

n ap

prov

ed b

y M

OE

A.

(Not

e 8)

Cal

cula

te a

t the

rate

of $

33.9

2 (U

/S d

olla

rs to

NT

dolla

rs),

it w

ill b

e $1

0,08

1,31

1 at

the

exch

ange

rate

whe

n ap

prov

ed b

y M

OE

A.

(Not

e 9)

The

net

wor

th o

f a

com

pany

is

abov

e 10

bill

ion:

5 b

illio

n ap

ply

to 4

0%, 5

bill

ion

10 b

illio

n ap

ply

to 3

0%, a

bove

10

billi

on a

pply

to

20%

. Tot

al a

mou

nt is

it’s

max

imum

.


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(3)The direct or indirect transaction across third region company with the investee in

Mainland China.

(A) Purchases: None

(B) Sale

The third area company Name of investees in Mainland China

Nella Limited Kunshan President Kikkoman Inc.

The terms of purchase were as the same as to other vendors.

(C) Accounts Receivable

The third area company Name of investees in Mainland China

Nella Limited Kunshan President Kikkoman Inc.

(D) Accounts Payable: None

(E) Note Endorsement Guarantee And Provide Security (Unit: in thousands of US

dollars):None

(F)Other tradition items have significant effects on current gain or loss and

financial condition: None.



Note 12. Financial information disclosures for different segments

1. Financial information disclosures for industry segments

(1) Information about the Company's operations in different industries in 2003 and

2002.

Industry-Feeds Industry–FoodsAdjustment and

Elimination Consolidated

Sales to unaffiliated

customers

Intersegment sales

Total revenues

Operating profit

Equity in net income of

subsidiaries

Interest expenses

General corporate

revenues

General corporate

expenses

Consolidated income from

continuing operations

before income tax

Identifiable assets

Long-term investments

by equity

Corporate assets

Total assets

Depreciation expense

Amortization expense

Capital expenditure


AU

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OR

'SR

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ND

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S

Industry-Feeds Industry -FoodsAdjustment and Elimination Consolidated

Sales to unaffiliated customers Intersegment sales

Total revenues

Operating profit

Equity in net income of subsidiaries

Interest expenses

General corporate revenues

General corporate expenses

Consolidated income from continuing operations before income tax

Identifiable assets

Long-term investments by equity

Corporate assets

Total assets

Depreciation expense

Amortization expense

Capital expenditure

(2) The revenue of an industry segment includes revenue both from sales to

unaffiliated customers (including sales, other operating revenue, rent revenue,

gain on disposal of segment and other income), intersegment sales and revenue

from broadcasting, except for the investment income.

(3) Operating profit of loss of industry segment is its department segment revenues

minus segment costs and expenses, which was generated in relation to the

segment revenues except interest expense.

The Company accounts for the intersegment purchases and intersegment sales

in the same way as the revenue from broadcasting.



(4) The identified assets of an industry segment are those tangible and intangible

enterprise assets that are used by the industry segment, but the following items

are not included:

a. Assets not used by industry segment.

b. Long-term investments.

2. Financial Information on Geographic Areas: No foreign operation.

3. Information on Export Sales:

Export sales of the Company in 2003, 2002 constitutes less than 10% of the total

revenues of 2003, 2002, respectively.

4. Information on Significant Customers:

In 2003 and 2002 customers constituted more than 10% of the Company’s total

revenue of 2003 and 2002 respectively were as follows:.

2003 2002 Percentage of Percentage of net operating net operating

Name of customers Amount revenues Amount revenues A Corp. B Corp.


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UNI-PRESIDENT ENTERPRISES CORP.

CONSOLIDATED FINANCIAL STATEMENTS

AND REPORT OF INDEPENDENT

ACCOUNTANTS

DECEMBER 31, 2003 AND 2002

These English consolidated financial statements were translated from the consolidated financial statements originally prepared in Chinese.




(04)P12D.40357

To the Board of Directors and Stockholders of Uni-President Enterprises Corp.

We have audited the accompanying consolidated balance sheets of Uni-President Enterprises Corp. and subsidiaries as of December 31, 2003 and 2002, and the related consolidated statements of income, of changes in stockholders' equity and of cash flows for the years then ended. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We did not audit the financial statements of certain long-term investments accounted for under the equity method, which statements reflected total equity balance of NT$13,162,801,000 and NT$17,687,281,000 as of December 31, 2003 and 2002, respectively, and net investment income in the amount of NT$776,526,000 and NT$610,511,000 for the years then ended. These statements were audited by other auditors, whose reports thereon have been furnished to us. Our opinion expressed herein, insofar as it relates to those amounts included for these long-term investments is based solely upon the reports of other auditors.

We conducted our audits in accordance with the “Rules Governing Examination of Financial Statements by Certified Public Accountants” and generally accepted auditing standards in the Republic of China. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits and the reports of other auditors provide a reasonable basis for our opinion.


AU

DIT

OR'S

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PO

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AN

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NT

S

In our opinion, based on our audits and the reports of other auditors, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Uni-President Enterprises Corp. and subsidiaries as of December 31, 2003 and 2002, and the results of their operations and their cash flows for the years then ended, in conformity with the "Rules Governing the Preparation of Financial Statements of Securities Issuers" and generally accepted accounting principles in the Republic of China.

As described in Note 1 to the consolidated financial statements, the Company has included President International Trade and Investment (BVI) Corp., Kai Yu Investment Co., Ltd., Uni-President Dream Parks Corp., Tung Ho Development Co., Ltd., President Entertainment Corp., President Pharmaceutical Corp. and Tong-Jeng Development Corp. in the 2003 consolidated statements previously accounted for under the equity method of December 31, 2003. Accordingly, the Company have restated the 2002 consolidated financial statements for comparison purpose.

As described in Note 3 to the consolidated financial statements, effective 2002, Uni-President Enterprises Corp. changed its method of accounting for certain inventory costs from the FIFO method to the weighted average method. The net cumulative effect of this change in accounting principle was to decrease the 2002 net income by NT$7,810,000.

PricewaterhouseCoopersTainan, Taiwan Republic of China March 30, 2004 ----------------------------------------------------------------------------------------------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 and practices generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices utilized 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 report of the independent accountants 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.



UNI PRESIDENT ENTERPRISES CORP. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS

DECEMBER 31(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

ASSETS Current Assets Cash and cash equivalents Short-term investments Notes receivable, net Accounts receivable, net - third parties Accounts receivable - related parties Other receivable, net - third parties Other receivables - related parties Other financial assets - current Inventories Prepayments Deferred income tax assets - current Other current assets

Long-term Investments Property, Plant and Equipment Cost Land Buildings Machinery and equipment Storage facilities Electrical installations Transportation equipment Furniture and fixtures Amusement equipment Leased property Leasehold improvement Other equipment Revaluation increment Cost and revaluation Less: Accumulated depreciation Construction in progress and prepayments for equipment

Intangible Assets Trademarks Copyrights Deferred pension cost Other

Other Assets Assets held for lease Idle assets Guaranteed deposits Deferred expenses Long-term receivables-third parties Long-term receivables-related parties Deferred income tax assets-non-current Other

TOTAL ASSETS



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UNI-PRESIDENT ENTERPRISES CORP. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS (CONTINUED)

DECEMBER 31(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Short-term loans Short-term bills payable Notes payable Accounts payable Income tax payable Accrued expenses Other payables Cash received in advance Current portion of long-term liabilities Other current liabilities

Long-term liabilities Bonds payable Long-term loans Long-term notes payable Long-term payables

Other Reserves Provision for assets appraisal increments tax Other Liabilities Accrued pension liabilities Customers’ deposits Minority interests in subsidiaries Other

TOTAL LIABILITIES

Stockholders' Equity Common stock Capital reserve Transaction in treasury stock Asset appraisal increments Donated capital Long-term investments Retained earnings Legal reserve Special earnings reserve Unappropriated earnings Other adjustment to stockholders’ equity Unrealized loss on market value decline of long-term

investments Cumulative translation adjustment Unrealized pension cost Treasury stock

Contingent Liabilities and Commitments Significant Subsequent Events TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

The accompanying consolidated notes are an integral part of these consolidated financial statements. Please refer to the audit report of PricewaterhouseCoopers dated March 30, 2004.



UNI-PRESIDENT ENTERPRISES CORP. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME

YEARS ENDED DECEMBER 31(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS


Operating Revenues Gross sales Less: Sales returns

Sales allowance Net sales Other

Operating Costs Cost of goods sold Other

Gross Profit Operating Expenses Selling expenses Administrative and general expenses Research and development expenses

Operating Income Non-operating Income Interest income Investment income accounted for under the equity method Cash dividends Gain on disposal of property, plant and equipment Gain on sale of investments Gain on inventory taking Gain on foreign currency transactions, net Rental income Gain on market value recovery of short-term investments Gain on recovery of inventory revaluation Others

Non-operating Expenses Interest expenses Investment loss accounted for under the equity method Other investment loss Loss on disposal of property, plant and equipment Loss on inventory taking Loss on foreign currency transactions, net Loss on provision for market value decline and

obsolescence of inventories value Finance charges Shutdown loss Others

Income before Income Taxes and Minority Interests Income Tax Expense Income before Extraordinary Items and Cumulative Effect of Changes in Accounting Principle

Cumulative Effect of Changes in Accounting Principle, less Applicable Income Tax Benefit of $2,603

Minority Interests in Subsidiaries’ Loss Net Income



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CONSOLIDATED STATEMENTS OF INCOME (CONTINUED)YEARS ENDED DECEMBER 31,

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS EXCEPT FOR EARNINGS PER SHARE AMOUNT)

Before Tax After Tax Before Tax After TaxBasic Earnings Per Common Share Net income from continuing operations Cumulative effect of changes in accounting principle

Minority interests in subsidiaries loss Net Income

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

Please refer to the audit report of PricewaterhouseCoopers dated March 30, 2004.

UNI-PRESIDENT ENTERPRISES CORP. AND SUBSIDIARIES



UN

I-PR

ESI

DE

NT

EN

TE

RPR

ISE

S C

OR

P. A

ND

SU

BSI

DIA

RIE

SC

ON

SOL

IDA

TE

D S

TAT

EM

EN

TS

OF

CH

AN

GE

S IN

ST

OC

KH

OL

DE

RS'

EQ

UIT

Y(E

XPR

ESS

ED

IN

TH

OU

SAN

DS

OF

NE

W T

AIW

AN

DO

LL

AR

S)

Ret

aine

d E

arni

ngs

Spec

ial

Unr

ealiz

ed L

oss

C

umul

ativ

e U

nrec

ogni

zed

C

omm

on

C

apita

l

L

egal

E

arni

ngs

Una

ppro

pria

ted

on L

ong–

term

Tran

slat

ion

Pens

ion

200

2

St

ock

R

eser

ve

Res

erve

R

eser

ve

Ear

ning

s

In

vest

men

ts

A

djus

tmen

t

Cos

t

Tr

easu

ry S

tock

Tota

l

B

alan

ce a

t Jan

uary

1, 2

002

Rev

ersa

l of

spec

ial e

arni

ngs

rese

rve

Dis

trib

utio

n of

net

inco

me

of 2

001

App

ropr

iatio

n of

lega

l res

erve

A

ppro

pria

tion

of s

peci

al e

arni

ngs

rese

rve

Dir

ecto

rs’ a

nd s

uper

viso

rs’ r

emun

erat

ion

Em

ploy

ees’

bon

uses

P

aym

ent o

f cas

h di

vide

nds

Iss

uanc

e of

sto

ck d

ivid

ends

C

apita

l res

erve

– g

aine

d on

dis

posa

l of

prop

erty

, pla

nt

and

equ

ipm

ent t

rans

ferr

ed to

una

ppro

pria

ted

earn

ings

A

djus

tmen

t of

capi

tal r

eser

ve d

ue to

the

Com

pany

’s

disp

ropo

rtio

nate

sub

scri

ptio

n to

cap

ital r

eser

ve g

aine

d

on d

ispo

sal o

f pro

pert

y, p

lant

and

equ

ipm

ent b

y

subs

idia

ries

tran

sfer

red

to u

napp

ropr

iate

d ea

rnin

gs

Net

inco

me

for

2002

A

djus

tmen

t of

capi

tal r

eser

ve d

ue to

the

Com

pany

’s d

ispr

opor

tiona

te s

ubsc

ript

ion

to th

e

sub

sidi

arie

s’ is

suan

ce o

f ne

w s

hare

s A

djus

tmen

t of

capi

tal r

eser

ve d

ue to

the

Com

pany

’s p

ropo

rtio

nate

sub

scri

ptio

n of

don

ated

ass

ets

Adj

ustm

ent d

ue to

the

Com

pany

’s p

ropo

rtio

nate

s

ubsc

ript

ion

to th

e su

bsid

iari

es’ c

onve

rsio

ns o

f

con

vert

ible

bon

ds

Adj

ustm

ent o

f unr

ealiz

ed lo

ss o

n m

arke

t val

ue

dec

line

of lo

ng-t

erm

equ

ity in

vest

men

ts d

ue

to

the

Com

pany

’s p

ropo

rtio

nate

sub

scri

ptio

n t

o th

e su

bsid

iari

es

Cum

ulat

ive

tran

slat

ion

adju

stm

ent

Unr

ecog

nize

d pe

nsio

n co

st

Adj

ustm

ent o

f un

reco

gniz

ed p

ensi

on c

ost d

ue to

the

C

ompa

ny’s

pro

port

iona

te s

ubsc

ript

ion

to th

e

sub

sidi

arie

s Pu

rcha

se o

f tr

easu

ry s

tock

R

etir

emen

t of

trea

sury

sto

ck

Adj

ustm

ent d

ue to

the

Com

pany

’s p

ropo

rtio

nate

su

bscr

iptio

n to

th

e su

bsid

iari

es

tran

sact

ion

of

trea

sury

st

ock

Adj

ustm

ent d

ue to

the

Com

pany

’s tr

eatm

ent o

f st

ock

held

by

sub

sidi

arie

s as

trea

sury

sto

ck

Adj

ustm

ent d

ue to

the

Com

pany

’s tr

eatm

ent o

f st

ock

sold

by

the

subs

idia

ries

as

sale

of

trea

sury

sto

ck

Bal

ance

at D

ecem

ber

31, 2

002

(C

ontin

ued

on n

ext p

age)


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UN

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CO

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STA

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OF

CH

AN

GES

IN S

TOC

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EQ

UIT

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ON

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)(E

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D IN

TH

OU

SAN

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OF

NEW

TA

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Ret

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d Ea

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Sp

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U

nrea

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Los

s C

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e

Unr

ecog

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d

Cap

ital

Lega

l

Earn

ings

U

napp

ropr

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d on

Lon

g–te

rm

Tran

slat

ion

Pens

ion

2

003

Com

mon

Sto

ck

R

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ve

Res

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R

eser

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Ear

ning

s

Inve

stm

ents

Adj

ustm

ent

Cos

t

Trea

sury

Sto

ck

Tota

l

B

alan

ce a

t Jan

uary

1, 2

003

Rev

ersa

l of s

peci

al e

arni

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eser

ve

Dis

tribu

tion

of n

et in

com

e of

200

2 A

ppro

pria

tion

of le

gal r

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ve

App

ropr

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n of

spec

ial e

arni

ngs r

eser

ve

Dire

ctor

s’ a

nd su

perv

isor

s’ re

mun

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UNI-PRESIDENT ENTERPRISES CORP. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31(EXPRESSED IN THOUSAND OF NEW TAIWAN DOLLARS)

CASH FLOWS FROM OPERATING ACTIVITIESNet income Minority interests in subsidiaries' loss Adjustments to reconcile net income to net cash provided by operating activities: Gain on market value recovery of short-term investments Provision for doubtful accounts Write-off of allowance for doubtful accounts Loss on provision for market value decline and obsolescence of inventory Reversal of inventory valuation Investment (income) loss accounted for under the equity method Perpetual loss of long-term investments accounted for under the

cost method Loss on capital reduction of subsidiary accounted for under the cost method Cash dividends from equity subsidiaries Gain on sale of investments Depreciation Gain on disposal of property, plant and equipment, idle assets and other assets Loss on disposal of property, plant and equipment, idle assets and other assets Amortization Amortization of excess between cost and book value acquired (Gain) loss on foreign currency transactions Changes in assets and liabilities Notes receivable Accounts receivable - third parties Accounts receivable - related parties Other receivables - third parties Other receivables - related parties Inventories Prepayments Deferred income tax assets-current Other current assets Deferred pension cost Long-term receivables Deferred income tax assets-non-current Notes payable Accounts payable Income tax payable Accrued expenses Other payables Cash received in advance Accrued pension liabilities Net cash provided by operating activities



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UNI-PRESIDENT ENTERPRISES CORP. AND SUBSIDIARIESCONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)


CASH FLOWS FROM INVESTING ACTIVITIES Decrease in short-term investments Increase in other receivable - related parties Increase in other financial assets-current Cash paid for purchase of long-term investments-subsidiaries Cash paid for purchase of long-term investments-non subsidiaries Proceeds from sale of long-term investments-subsidiaries Cash received from sale of long-term investments-non subsidiaries Proceeds due to the subsidiaries’ capital reduction Proceeds due to the subsidiaries’ liquidation distribution Cash paid for purchase of property, plant and equipment, assets held for lease and other assets Cash received from disposal of property, plant and equipment, assets held for lease, idle assets and other assets Decrease (increase) in guaranteed deposits Increase in trademarks, copyright land occupancy right and deferred

expenses (Increase) Decrease in employees’ car loans Increase in other assets-other Net cash (used in) provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES (Decrease) Increase in short-term loans Increase (decrease) in short-term bills paper payable Increase in bonds payable Increase (decrease) in long-term loans Increase in long-term notes payable Decrease in customers' deposits Decrease in minority interests in subsidiaries Increase (decrease) in other liabilities Payment of directors' and supervisors' remuneration Payment of employees' bonuses Payment of cash dividends Purchase of treasury stock Net cash provided by (used in) financing activitiesEFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASHNET INCREASE (DECREASE) IN CASH AND CASH

EQUIVALENTS CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR CASH AND CASH EQUIVALENTS, END OF YEAR Supplemental disclosures of cash flow information 1. Interest paid (not including capitalized interest) 2. Income taxes paid 3. Fair value of subsidiaries on the date of acquisition:

President Packaging Industrial Co., Ltd. Cash

Total payment for acquiring President Packaging Industrial Co., Ltd.(Based on 100% ownership) Less: Cash balance of President Packaging Industrial Co., Ltd.

(Based on 100% ownership) Cash payment for acquiring of President Packaging Industrial Co.,

Ltd. (Based on 100% ownership)




UNI-PRESIDENT ENTERPRISES CORP. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

YEARS ENDED DECEMBER 31,(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Investing and financing activities with partial cash payment1.Purchase of long-term investments Plus Other payables, beginning of year

Cash paid for purchase of long-term investments

2.Proceeds from sale of long-term investments Plus Other, beginning of year

Cash received from sale of long-term investments

3. Purchase of property, plant and equipment, assets held for

lease, idle assets and other assets

Plus Other payables, beginning of year

Long-term payables, beginning of year

Less Other payables, end of year

Long-term payables, end of year

Cash paid for purchase of property, plant and equipment,

assets held for lease, idle assets and other assets

4.Disposal of property, plant and equipment, assets held for idle assets and other assets

Less Long-term notes payables-related parties, end of year

Cash received from disposal of property, plant and

equipment, assets held for lease, idle assets and other assets

Investing or financing activities with no cash flow effectLong-term investments transferred to treasury stock

The accompanying consolidated notes are an integral part of these consolidated financial statements. Please refer to the audit report of PricewaterhouseCoopers dated March 30, 2004.


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UNI-PRESIDENT ENTERPRISES CORP. AND AFFILIATED ENTERPRISES CONSOLIDATED FINANCIAL STATEMENTS

AND REPORT OF INDEPENDENT ACCOUNTANTS DECEMBER 31, 2003

These English consolidated financial statements of the affiliated enterprises were translated from the consolidated financial statements of the affiliated enterprises originally prepared in Chinese.



ANNOUNCEMENT

We confirm, to the best of our knowledge and belief, the following representations:

1. The consolidated financial statements of Uni-President Enterprises Corp. and affiliated enterprises for the year ended December 31, 2003 were prepared in accordance with “Criteria Governing Preparation of Affiliated Reports, Consolidated Business Reports and Affiliated Enterprises Consolidated Financial Statements of Affiliated Enterprises”, the related decrees, and the generally accepted accounting principles in the Republic of China.

2. The consolidated financial statements of Uni-President Enterprises Corp. and affiliated enterprises for the year ended December 31, 2003 were prepared without omission of material information and do not include any false or misleading information.

Kao, Chin Yen

Chairman


March 30, 2004


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To the Board of Directors and Shareholders of Uni-President Enterprises Corp.

We have reviewed the consolidated financial statements of Uni-President Enterprises Corp. and affiliated enterprises for the year ended December 31, 2003. Our review was made in accordance with “The Rules Governing Review of Affiliated Enterprises Consolidated Financial Statements”. Our review is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole, accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to the financial statements referred to above in order for them to be in conformity with “Criteria Governing Preparation of Affiliated Reports, Consolidated Business Reports and Affiliated Enterprises Consolidated Financial Statements of Affiliated Enterprises” and the generally accepted accounting principles in the Republic of China.

PricewaterhouseCoopersTainan, Taiwan Republic of China March 30, 2004



UNI PRESIDENT ENTERPRISES CORP. AND AFFILIATESCONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2003(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

ASSETS Current Assets Cash and cash equivalents (Note 4(1)) Short-term investments (Notes 4(2) and 6) Notes receivable (Note 4(3)) Accounts receivable – third parties (Notes 4(4) and 6) Accounts receivable – related parties (Note 5) Other receivables – third parties (Notes 4(5), 4(23) and 10) Other receivables – related parties (Note 5) Other financial assets-current (Note 6) Inventories (Note 4(6)) Prepayments (Note 7) Other current assets (Note 4(23))

Long-term investments (Notes 4(7), 5 and 6) Other financial assets – noncurrent Property, Plant and Equipment (Notes 4(8), 5 and 6) Cost: Land Buildings Machinery and equipment Storage facilities Electrical installations Research equipment Transportation equipment Furniture and fixtures Pleasure equipment Leased property Leasehold improvement Other equipment Revaluation increment Cost and revaluation Less: Accumulated depreciation Construction in progress and prepayments for equipment

Intangible Assets Trademarks (Note 4(11)) Franchise (Notes 4(11) and 7) Copyright (Note 4(11)) Deferred pension cost (Note 4(16)) Other intangible assets (Note 4(11))

Other Assets Assets held for lease (Notes 4(8), 4 (9) and 6) Idle assets (Notes 4(8), 4 (10) and 6) Guaranteed deposits (Notes 6 and 7) Deferred expenses (Notes 4(11) and 7) Long-term receivables – third parties (Note 7) Long-term receivables – related parties (Note 5) Deferred income taxes (Note 4(23)) Other (Notes 4(8) and 6)

TOTAL ASSETS

(Continued on next pape)


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UNI PRESIDENT ENTERPRISES CORP. AND AFFILIATESCONSOLIDATED BALANCE SHEETS (CONTINUED)

DECEMBER 31, 2003(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Short-term loans (Notes 4(12) and 6) Commercial paper payable (Notes 4(13) and 6) Notes payable Accounts payable – third parties Accounts payable – related parties (Note 5) Income tax payable (Note 4(23)) Accrued expenses (Note 5) Other payables Cash in advance Current portion of long-term liabilities (Notes 4(8), 4(14), 4(15) and 6) Other current liabilities

Long-term Liabilities Bonds payable (Note 4(14)) Long-term loans (Notes 4(15) and 6) Long-term notes payables Long-term payables (Note 4(8))

Other Reserves Provision for land-value incremental tax (Note 4(8)) Other Liabilities Provision for retirement plan (Note 4(16)) Customers’ deposits (Note 4(17)) Minority interests in subsidiaries Others (Note 4(7))

TOTAL LIABILITIES

Stockholders' Equity Common stock (Notes 1 and 4(18)) Capital reserve (Notes 4(8) and 4(19)) Transactions in treasury stock Asset revaluations Donated capital Long-term investments Retained earnings (Note 4(20)) Legal reserve Special earnings reserve Unappropriated earnings Unrealized loss on long-term investments Cumulative translation adjustment Unrecognized pension cost (Note 4(16)) Treasury stock (Note 4(21)) TOTAL STOCKHOLDERS’ EQUITY Contingent Liabilities and Commitments (Notes 5 and 7) Significant Subsequent Event (Note 9) TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

The accompanying consolidated notes are an integral part of the consolidated financial statements. Please refer to the report of independent accountants dated March 30, 2004.



UNI-PRESIDENT ENTERPRISES CORP. AND AFFILIATESCONSOLIDATED STATEMENTS OF INCOME

YEAR ENDED DECEMBER 31, 2003(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS


Operating Revenues (Note 5) Gross sales Less: Sales returns

Sales allowance Net sales Other

Operating Costs (Notes 4(12) and 5) Cost of goods sold Other

Gross Profit Operating Expenses (Notes 4(12) and 5) Selling expenses Administrative and general expenses Research and development expenses

Operating Income Other Income Interest income (Note 5) Income from investments (Note 4(7)) Cash dividends Gain on disposal of property, plant and equipment Gain on sale of investments (Note 4(7) and 5) Rental income (Notes 4(9) and 5) Recovery in market value of short – term investments Recovery in market value of inventories Other (Note 5)

Other Expenses Interest expenses (Notes 4 (8) , 4(17) and 10) Loss on investments (Note 4(7)) Loss on disposal of property, plant and equipment Loss on inventory taking Loss on foreign currency transactions (Note 10) Financing changes Shutdown loss Other

Income before income taxes and minority interests Income tax expenses (Note 4(23)) Minority interests in affiliates earnings Net Income

Before Tax After Tax Basic Earnings Per Common Share (in dollars) (Note 4 (24) ) Net income before minority interests Minority interests in affiliates earnings Net Income

The accompanying consolidated notes are an integral part of the consolidated financial statements. Please refer to the report of independent accountants dated March 30, 2004.


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UNI-PRESIDENT ENTERPRISES CORP. AND AFFILIATESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2003(EXPRESSED IN THOUSANDS OF NEW TAIWAN

DOLLARS, EXCEPT AS OTHERWISE INDICATED) (NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS)

Note 1. HISTORY AND ORGANIZATION

1. Uni-President Enterprises Corp. (the Company ) was incorporated as a company limited by shares under the provisions of the Company Law of the Republic of China in August 1967 with initial capital of $32,000. As of December 31, 2003, the authorized capital was $34,243,868, the paid-in capital was $33,950,978, consisted of 3,395,098 thousand shares of common stock with $10 (NT dollar) par value per share. The Company primarily engages in the manufacture, processing and sales of various soft drinks, foods, flour and animal feeds.

2. As of December 31, 2003, the Company has 5,156 employees.

3. The common shares of the Company have been listed on the Taiwan Stock Exchange since December 1987.

4. Name of consolidated affiliates, their major business and percentage owned by the Company

Name of affiliates Relationship with affiliate Major business Percentage owned

PresidentInternational Trade and Investment Corp.

Majority owned subsidiary

General investments 100.00%




Kai Yu investment Co., Ltd.



(Notes 1 and 6)

Uni – President Dream Parks Corp.


Operators of selling foods drinks and athletic materials; commercials showand travel consultancy, etc.

100.00%

NanlienInternational Corp.


General tradings 99.99%

(Note 2)

Tung Ho Development Co., Ltd.


Operators of leisure club, restaurants and hotels

65.06%

(Note 2)




PresidentEntertainmentCorp.


Operators of driving ranges, hotels, grass skiing courses, etc.

61.80%

(Note 3)

PresidentInternationalDevelopment Corp.


Development and management of shopping malls

58.50%

(Notes 2 6)

PresidentPharmaceuticalCorp.


Distributor of pharmaceuticalproducts

53.74%


Appointment of general manager

Operators of convenience stores and retailers of foods, cans and household goods, etc.

45.24%

(Notes 4 and 6)


Appointment of general manager

Manufacturer of steel plates, tinplates, and tin cans; imports & exports of the machinery

43.34%

(Notes 5 and 6)

Tong – Jeng Development Corp.

Direct or indirect control over personnel matters, finances and operations

Management of city planning, real estate investment consulting, etc.

42.86%

(Notes 3 and 4)

Mech-PresidentCorp.


Manufacturer of elevators and operators of filling stations

20.00%

(Note 4)

Uni-PresidentCold-Chain Corp.


Distributor of baking foods, cold foods and drinks

20.00%

(Notes 2 and 4)

Retail Support International Corp.


Distribution, sorting, warehousing and sales of various canned foods

20.00%

(Notes 2 and 4)

President Coffee Corp.


Retails of foods and coffee beans; coffee shops and restaurants operating

20.00%

(Notes 4)


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President Transnet Corp.


Distributor of sorting, and warehousing

20.00%

(Notes 1 and 4)

(Note 1) New consolidated affiliated enterprise.

(Note 2) As of December 31, 2003, 0.67% of President International Development Corp., 10.00% of Tung Ho Development Co., Ltd., 20.00% of Uni-President Cold-Chain Corp. and 20.00% of Retail Support International Corp. were owned by Nanlien Industrial Corp.

(Note 3) As of December 31, 2003, 38.20% of President Entertainment Corp., 42.86% of Tong – Jeng Development Corp. were owned by President International Development Corp.

(Note 4) As of December 31, 2003, 3.33% of President International Development Corp., 14.29% of Tong – Jeng Development Corp., 20.00% of President Coffee Corp., 60.00% of Uni-President Cold-Chain Corp., 25.00% of Retail Support International Corp., 62.95% of Mech-President Corp. and 80.00% of President Transnet Corp. were owned by President Chain Store Corp.

(Note 5) As of December 31, 2003, Ton Yi Industrial Corp. owned 3.33% of President International Development Corp.

(Note 6) As of December 31, 2003, 1.59% 1.39% and 0.21% of Ton Yi Industrial Corp. were owned by Kai Yu Investment Co., Ltd., President International Development Corp. and President Chain Store Corp., respectively. They were accounted for as long-term investment and short-term investment.

5. Non-consolidated affiliated enterprises

Percentage owned Reason for Name of affiliate by the company non-consolidationKai Nan Investment Co., Ltd. (Note 1)

President Global Corp. (Note 1)

Uni-President Glass Industrial (Note 1)

Co., Ltd.U-Chains Enterprises Corp. (Note 1)

President Baseball Team Corp. (Note 1)

President Digital Network Corp. (Note 1)

Tone Sang Construction Corp. (Note 1)

President Natural Industrial Corp. (Note 1)

Parabola Creative Inc. (Note 1)

President Organics Co., (Note 3) (Note 1)



Percentage owned Reason for Name of affiliate by the company non-consolidationPresident Nisshin Corp. (Note 1)

Ton Yi Pharmaceutical Corp. (Note 1)

President Packaging Ind. Corp. Note (Note 1) President Kikkoman Inc. (Note 1)

President Asia Enterprises Inc. Note (Note 1)

AIM Service Uni-President Co., Ltd. (Note 1)

Uni-President Oven Bakery Corp. Note (Note 1)

President Information Corp. Notes 3 and 4) (Note 1) President Tokyo Corp. (Note 1)

(Note 1) Majority owned subsidiary’s total assets and total operating revenues constitute less than 3% of the respective accounts of the Company.

(Note 2) As of December 31, 2003, 0.02% of President Asia Enterprises Corp. was owned by Cayman President Holding Ltd.

(Note 3) As of December 31, 2003, 31.67% of President Organics Co., 60.00% of Uni-President Oven Bakery Corp., 25.87% of President Packaging Ind. Corp., 80.00% of President Transnet Corp., and 70.00% of President Information Corp., were owned by President Chain Store Corp.

(Note 4) As of December 31, 2003, 2.08% and 2.50% of President Information Corp. were owned by President Organics Co., and Retail Support International Corp. , respectively.

6. Adjustment on different accounting period of affiliated enterprises: None.

7. An explanation of any differences in accounting policies between the subordinate companies and the controlling company: Please refer to Note 2 Summary of Significant Accounting Policies.

8. Special operating risk on foreign affiliated enterprises: None.

9. Statutory or contractual restrictions on distribution of earnings by the various affiliates: None.

10. Amortization methods and period for consolidated borrowings (loans): The difference between the investment cost and the Company’s equity shares of the affiliates’ net book value at the investment date is amortized over a five year period.

11. Other matters of significance or explanations that would contribute to the fair presentation of the consolidated financial statements of the affiliates: None.


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Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in accordance with generally accepted accounting principles in the Republic of China, and the significant accounting policies are summarized as follows:

1. Principles of consolidation

The consolidated financial statements include all majority owned subsidiaries, except for subsidiaries with total assets and operating revenue constituting less than 10% of the Company’s non-consolidated total assets and operation revenue. Irrespective of the above test, if the combined operating revenues and total assets of all such non-consolidated subsidiaries exceed 30% of the Company’s non-consolidated total assets and operating revenue, then each individual subsidiary with total assets or operating revenue greater than 3% of the Company’s respective non-consolidated total assets and operating revenue are consolidated.

The consolidated financial statements of the Company and affiliates were prepared in accordance with the Company Law No. 369-2, R.O.C. FAS No. 7 “Consolidated Financial Statements” and “Criteria Governing Preparation of Affiliated Reports, Consolidated Financial Statements of Affiliated Enterprises.”, and all inter-company in transactions have been eliminated.

2. Foreign currency transactions and translation

The Company and its consolidated affiliated enterprises maintain their accounts in New Taiwan dollars, while the accounts of President International Trade and Investment Corp. and Cayman President Holding Ltd. are maintained in US dollars. Foreign currency transactions are measured and recorded in their regular functional currencies using the exchange rate in effect on that date. Any change in the exchange rate between the date of transaction and the settlement date which results in an exchange gain or loss is charged to net income for the period. The unrealized exchange gain or loss on monetary assets and liabilities denominated in foreign currencies at balance sheet date is included in net income for the period.

3. Interest rate swap

Any differential interest receipts and payments arising from interest rate swap agreements entered into for hedging purposes are accrued to match the net gain or loss with the related financing costs.

4. Forward exchange contracts

(1) The foreign currency forward contracts for hedging purposes are translated into New Taiwan dollars using the spot rate at the inception of the contract. The difference between the forward rate and the spot rate is amortized over the life of the contract. The foreign currency amounts of outstanding contracts are also translated into New Taiwan dollars at the rate of the exchange prevailing at the balance sheet date. Exchange gains or losses are included in current net income. Gains and losses on



forward contracts to hedge foreign currency commitments are deferred until the underlying transaction is recorded, unless deferral would in a loss at a later period.

(2) The notional amount of foreign currency option contracts entered into for hedging purposes are not recognized as an asset or liability on the contract dates. The premiums paid or received for the call or put options are amortized and charged to income on a straight-line basis over the term of the related contract. Any resulting gain or loss upon settlement is charged to income in the period of settlement.

(3) The Company enters into interest rate swap transactions to manage exposures to changes in interest rates on existing liabilities. These transactions are accounted for on an accrual basis, in which the cash settlement receivable or payable is recorded as an adjustment to interest income or expense.

5. Distinguishing between current and non-current assets

An asset which meets one of the following criteria, is classified as current asset:

(1) Cash and cash equivalent with unrestricted use; (2) Held for the purpose of trading or held for a short period and expected to be sold

within 12 months after balance sheet date; or (3) Expected to be turned into cash or to be sold or used within the ordinary course of

business in the Company’s normal operating cycle. An asset which does not meet the criteria is classified as non-current asset.

6. Cash equivalent

Cash equivalent includes security bonds, bankers' acceptances and commercial papers with maturity date of less than three months.

7. Short-term investments

Short-term investments are stated at the lower of cost or market value. Cost is determined using the weighted average method. Any excess of aggregate cost over the market value will be recognized in the current period. Subsequent recovery in market value is recognized to the extent of original cost.

8. Allowance for doubtful accounts

Allowance for bad debts is determined based on past experience of occurrence of bad debt and evaluation of the collectibility of receivables according to the aging of accounts receivable and other factors.

9. Inventories

Inventories are stated at the lower of cost or market value. Cost is determined using the average method except for livestock which is based on the average cost less allowance for decline in value.

Market value for raw materials, raw materials in transit and supplies is based on the replacement cost, and market value for work in process, livestock in process, finished


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goods, merchandise and by-products, is determined on the basis of lower of replacement cost or net realizable value. The allowance for decline in value of livestock is amortized over the actual breeding and production periods. A provision is made for obsolete and slow moving inventories and is charged against current net income.

The consolidated affiliated enterprises adopt the same accounting principle for inventories as the Company except for the following companies.

Subsidiaries Accounting Principle

President International Trade and Investment Corp.

First-in, First-out

President Entertainment Corp. First-in, First-out

Retail Support International Corp. First-in, First-out

Cayman President Holding Ltd. (except for the subsidiary Uni-President (Vietnam) Co., Ltd.)

First-in, First-out

President Chain Store Corp. Retail method

10. Long-term investments

Long-term investments in which the Company owns less than 20% of the subsidiaries' voting rights of the investee company, and in which the Company has no ability to exercise significant influence, are stated at the lower of cost or market value investment in listed companies and at cost for unlisted companies. The market value of listed companies is determined using the average closing price of the last month during the accounting period and the unrealized loss on decline in market value is recorded under the stockholders' equity. If it becomes evidently clear that there has been a permanent impairment in value and the chance of recovery is minimal, then loss on decline in market value is recognized in the current period.

Investments in which the Company owns at least 20% of the voting rights of the investee Company are accounted for using the equity method unless there is evidence that the Company is unable to exercise significant influence over the investee Company’s operational decision. The excess of the acquisition cost over the Company's share of the investee company net book value on the date of acquisition is capitalized and amortized over a period of five years.

Consolidated financial statements are prepared to include majority owned subsidiaries. However, if the majority owned subsidiaries’ total assets and total operating revenues constitute less than 10% of the respective accounts of the Company, the equity methodis used to account for these majority owned subsidiaries. When the total assets and total operating revenues of all non-consolidated majority owned subsidiaries have exceeded 30% of those of the Company, any of these subsidiaries with total assets and total operating revenues in excess of 3% of the respective accounts of the Company are consolidated.

"Cumulative Translation Adjustments" resulting from translation of all assets and liabilities of the invested foreign companies, which are accounted for using the equity method, are recognized proportionally based on the percentage of ownership of the foreign company and are reflected in the stockholders' equity section.



11. Property, plant and equipment, assets held for lease, idle assets and other assets

Property, plant and equipment, assets held for lease, idle assets and other assets are stated at either cost or appraised value. Interest incurred in connection with the purchase or construction required to bring the assets to the condition and location for their intended use is capitalized. Major renewals, betterments and additions are capitalized. Maintenance and repairs are expensed as incurred.

Depreciation is computed using the straight-line method over the estimated economic useful lives of the assets, plus one year residual value, Fully depreciated assets still in use are depreciated based on the residual value over the estimated remaining useful lives. The useful lives of major depreciated assets are: Machinery and equipment 2-30 years, other assets 2-55 years. Containers are expensed when damaged.

When an asset is sold or retired, the cost and accumulated depreciation are removed from respective accounts and any gain or loss on disposal of property, plant and equipment, assets held for lease, idle assets and other assets is recorded as other income or loss.

Idle fixed assets are stated at the lower of book value or net realizable value and are reported as other assets. The excess of book value over net realizable value is recorded as loss in the current period. The depreciation expense for the period is recorded as other expenses.

12. Intangible assets

Trademarks are stated at cost and amortized on the straight-line basis over the estimated useful life of 10-20 years. Copyrights are stated at cost and amortized on the each estimated frequency of broadcasts. Land occupancy right is stated at cost and amortized on the straight-line basis over the lease period of 50 years.

13. Deferred expenses

(1) The Company leases its dairy and juice packing machines. The minimum advance rental payments are depreciated over 12 years, the estimated economic lives of the packing machines. The contingent rent paid quarterly based on unit-of-production is recorded as current expense.

(2) The payments of the transfer and cooperation of technology about the Tinplate Plant and Tin Mill Black Plate Plants are depreciated over a period of 15 - 20 years.

(3) The payment of the land for constructing about the Tinplate Plant and Tin Mill Black Plate Plants are depreciated over 20 years.

(4) Golf club memberships and riding club memberships are amortized over 20 years or the rate of membership years.

(5) Other deferred expenses are depreciated or amortized over a period of 2-10 years.


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14. Distinguishing between current and non-current liabilities

A liability which meets one of the following criteria, is classified as current liability:

(1) Expected to be repaid within 12 months after balance sheet date; or

(2) Incurred due to business operation and expected to be repaid within the ordinary course of business in the Company’s normal operating cycle.

A liability which does not meet the criteria is classified as non-current liability.

15. Exchangeable Bonds

When exchangeable bondholders exercise their rights to exchange for the reference shares, the book value of the bonds is to be offset against the book value of the investments in reference shares and the related stockholders’ equity accounts, with the difference recognized as gain or loss on disposal of investments.

16. Retirement plan and cost

The Company and its consolidated subsidiaries, (except for President International Trade and Investment Corp. and Cayman President Holding Ltd.) have their respective non-contributory and funded defined benefit retirement plan covering all regular employees. Monthly contribution is deposited into the respective independently administrated retirement trust fund.

R.O.C. FAS No. 18, "Accounting for Pension Cost" was adopted to account for pension expenses. Net periodic pension cost includes service cost, interest cost, expected return on plan assets, amortization of unrecognized prior service cost and amortization of unamortized net transition asset (obligation).

The subsidiary, President International Trade and Investment Corp. and Cayman President Holdings Ltd., have no retirement plan because it is primarily served by its parent company. Accordingly, it doesn’t deposit contribution.

17.Treasury Stock

The costs of treasury stock acquired by the parent company and its subsidiaries are accounted for are as follows :

(1) Acquisition: shares purchased are based on cost and shares donated are based on fair value.

(2) Disposal: if the disposal value is higher than the cost, any excess is recorded as additional Capital Reserve - Treasury Stock account; if the disposal value is lower than the cost, the difference is first charged against the Capital Reserve - Treasury Stock account; any deficiency is charged against Retained Earnings.

(3) Retirement: The cost is charged against the Treasury Stock account, and the related additional Paid-in Capital and the Common Stock accounts. If the cost of the treasury stock is higher than the sum of the par value and the additional Paid-in Capital, the excess is first charged against the Capital Reserve-Treasury Stock accounts; and the



remainder is charged against Retained Earnings; if the cost of the treasury stock is lower than the sum of par value and the additional Paid – in Capital, the creditied is added to the Capital Reserve - Treasury Stock account.

Effective January 1, 2002, the Company adopted R.O.C. FAS No. 30 "Accounting for Treasury Stock" and accordingly began to treat the Company’s stocks held by the subsidiaries as treasury stock when recognizing investment income (loss) and when preparing the financial statements.

18. Income tax

The Company adopted R.O.C. FAS No. 22 "Accounting for Income Tax", whereby income tax is provided based on accounting income after adjusting for permanent differences, and inter-period and intra-period allocation of income tax was adopted. The tax effect of taxable temporary differences was recorded as a deferred tax liability; while the tax effect of deductible temporary differences, net operating loss carry forwards and income tax credits were recorded as deferred tax assets. A valuation allowance is provided for deferred tax assets. Deferred tax assets or liabilities are classified into current or non-current items in accordance with the nature of the balance sheet accounts or the period realization is expected. Adjustments of prior years' income tax liabilities are included in the current year's income tax expense.

The Company adopted R.O.C FAS No.12 “Accounting for the Investment Tax Credit”, whereby investment tax credits from the purchase of machinery and equipment, research expenditure, training expenditure and investment in stock are recognized as income tax adjustment in the period the tax credit.

The 10% additional tax expense on undistributed earnings paid by the Company and its consolidated subsidiaries (except for Cayman President Holding Ltd.) is recognized as expenses of the firm the resolution for distribution and/or retention of savings is approved at the annual stockholders’ meeting.

19. Assets exchange and services exchange

Adopted R.O.C FAS No.1,“G.A.A.P”, when different fixed assets exchange, the assets exchanged in should be debited in market value and recognized exchanged gain or loss. According to related regulations, the nonmoney-assets exchange transactions, the transferred market value of exchanged nonmoney-asset should be compared with the similar assets which traded in cash, market value, independent price, the estimated market value and reasonable evidences of exchanged assets or obtained services. The acquirement of fixed assets, other assets or the labour service, if selling member cards to trader to refund portion of cost, should credit entrance fee income and guarantee deposits or customers’ deposits according to the accounting processing program. The assets or services obtained should be debit assets or expenses as market value in accordance with specific characters.

20. Use of Estimates

The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions


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that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenue, cost of revenue and expenses during the reporting period. Actual results could differ from those estimates.

21. Revenues, costs and expenses

(1) Sales revenues are recognized when the earning process is completed and payment is realized or realizable; the costs and expenses associated with the revenue are recorded as incurred.

(2) Tung Ho Development Co., Ltd. computed the interest income of members’ deposits under regular interest rate that debited as interest expenses and credited as service revenues in accordance with the Regulation issued by the R.O.C. Accounting Research and Development Fundation. Security deposits for golf memberships were the cost in regular interest rate that debited as service cost and credited as interest revenues.

(3) Tung Ho Development Co., Ltd. recorded the lodging gift coupons for associate members at their par value as expenses on the accrual basis in accordance with the regulation issued by the R.O.C. Accounting Research and Development Fundation. When the coupons are redeemed, they are treated as service revenue. The unused expired coupons are treated as reduction of expenses or increase of revenues.

Note 3. CHANGE IN ACCOUNTING PRINCIPLE None.

Note 4. DETAILS OF SIGNIFICANT ACCOUNTS

1. CASH AND CASH EQUIVALENTS

Cash: Cash on hand Checking deposits Demand deposits Time deposits

Cash equivalents: Reverse repurchase

agreement Commercial paper Government Bonds



2. SHORT-TERM INVESTMENTS

Mutual funds Common stocks of listed companiesConvertible bonds

Less: Valuation allowance

3. NOTES RECEIVABLE

Notes receivable

Less: Allowance for doubtful accounts

4. ACCOUNTS RECEIVABLE THIRD PARTIES

Accounts receivable


5. OTHER RECEIVABLES THIRD PARTIES

Other receivables



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6. INVENTORIES

MerchandiseRaw materials Raw materials in transit SuppliesWork in process Livestock in process Finished goods LivestockLess: Allowance for decline in value of livestock By-products

Less: Allowance for price decline and obsolescence in inventories

7. LONG-TERM INVESTMENTS (1) Debit balance of long-term investments

December 31, 2003 Percentage

Name of subsidiaries Amount owned Accounted for under the equity method: President (BVI) International Investment Holdings Ltd. (Note)

President Chain Store (BVI) Holdings Ltd. (Note) Kai Yu (BVI) Investment Co., Ltd. (Note) President Life Sciences Co. Ltd. (Note) Ton Yu Investment Inc. (Note) Presicarre Corp. President Securities Corp. Others individually (individually less than 2%) (Note)

Accounted for under the cost methodToppoly Optoelectronics Inc. New Century Info-Comm. Co., Ltd. Others individually (individually less than 2%)



(2) Credit balance of long-term investments (classified as other liabilities–other) December 31, 2003

Percentage Name of subsidiaries Amount owned Accounted for under the equity method Cayman Ton Yi Industrial Holdings Ltd. (Note) Others (less than 10%) (Note)

(Note) The subsidiaries did not meet the maximum criteria for consolidation (Refer to Note 2 (1)).

(3) Ling-term bonds investments: Name of subsidiaries December 31, 2003 Accounted for under the cost method BOOC Subordinated Bond

(4) Other-term bonds investments: Name of subsidiaries December 31, 2003 Accounted for under the cost method CL CLD Subordinated Trust Certificates

(5)In 2003, long-term investment gain accounted for under the equity method in the amount of $838,869 was based on the audited financial statements of the subsidiaries.

(6)The perpetual loss of long term investments of $262,800 in 2003 was recognized under the cost method.

(7)On September 4, 2003, Grand Commercial Bank (“Grand”), a subsidiary accounted for under the cost method, was acquired by Chinatrust Financial Holding Co., Ltd. (“Chinatrust”) by means of share swap and hence Grand became a 100%-owned subsidiary of Chinatrust after the merger. One share of Grand’s common stock was exchanged for 0.633 share and 0.254 share of Chinatrust’s preferred stock and common stock, respectively, and the effective date of the share swap was September 30, 2003. Accordingly, the Company obtained 50,661 thousand shares and 20,329 thousand shares of Chinatrust’s preferred stock and common stock, respectively, and recognized a gain on disposal of investment of $176,327 in 2003. In addition, the Company’s investment in Chinatrust’s preferred stock can be converted into cash after one month from the issuance of such preferred stock. Total cash that the Company can receive from such conversion is calculated based on the par value of the preferred stock (NT$10 dollars per share) plus the interests, which are calculated based on the interest rate of Chinatrust Bank’s six-month time deposits. However, the conversion request must be exercised within six months after the issuance of these preferred shares.


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8. PROPERTY, PLANT AND EQUIPMENT

(1)As of December 31, 2003, revaluation and accumulated depreciation of fixed asset are listed as follows:

December 31,2003 Accumulated Assets Revaluation depreciation Land Buildings Machinery and equipment Electrical installations Research equipment Transportation equipment Furniture and fixtures Pleasure equipment Leased property Leasehold improvements Other equipment

(2)In the years 1975, 1979, 1981, 1983, 1990 and 1995, the Company revalued certain property, plant and equipment (including assets held for lease, idle assets) in accordance with the regulations for the Revaluation of Assets in the Republic of China. The amount of revalued appreciation credited to the capital reserve was as $1,984,813. The balance of capital reserve-assets revaluation was $452,131 as of December 31, 2003.

(3)In the years 1974, 1980, 1985, and 1998, Ton Yi Industrial Corp., a subsidiary, revalued certain property, plant and equipment in accordance with regulations for the Revaluation of Assets in the Republic of China. The balance of capital reserve-assets revaluation was $302,830 as of December 31,2003.

(4)The balance of provision for land-value incremental tax on December 31, 2003 was $1,723,415.

(5)Interest expenses before capitalization for the year ended December 31, 2003 was $2,220,128. Interest capitalized totaled $271,415, with interest rates ranged 0.84%6.215% in 2003.

(6)Tung Ho Development Corp. closed its country club due to the 921 earthquake in 1999 and reclassified the cost of $70,030 to other assets amounted because of disposal of the land. Tung Ho Development Corp. had purchased 56 lots in Da-Pu, pending in Jiayi from MR. Tsai Xu Tang in 2000. The Board of Directors had approved the sale of land. The Company had sold memberships totaling $103,680 which are deferred to pending the final disposal of the land. As of December 31, 2003, the book value was $176,320 (the total cost of $280,000 less deferred revenue of $103,680).



(7)As of December 31, 2003, the Company had purchased land in the cost of $1,029,128 for expansion of plant facilities. Certain agriculture land has yet to be rezoned for industrial purposes, accordingly, the land title has not been officially transferred to the Company. However, the Company has secured land deeds and other ownership documents.

(8)Leased property The terms of the major leased properties are summarized below:

A. Upon the expiration of the lease contract, the title of the leased properties accounted for under capital leases are transferred to the Company at no additional cost. The rental payments and the leased properties are listed below:

Present value based on the implicit

Category of property interest rate Period Buildings, electrical installations and other equal monthly equipment installments

Buildings equal monthly

installments Transportation equipment

equal monthly installments


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B. As of December 31, 2003, total amount of rental payments and their present value are listed as follows:

Rent Payable Present value Total future of future rental rental

payments payments

and thereafter

Less: Liabilities under capital lease within one year Long-term liabilities under capital lease (classified as long- term payables)



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11. INTANGIBLE ASSETS AND DEFERRED EXPENSES (Deferred pension cost excluded)

Beginning balance

Additions

Decreases

Amortization and depreciation

Ending balance

(1)The deferred expenses included lease of packing machines. The minimum advance rental payments are amortized over twelve years, the estimated economic lives of the packing machines. Additional quarterly rental payments and was payments based on units-of-production are charged as expense is current periods.

(2)The decreases during the period represents return of vending machines.

12. SHORT-TERM LOANS

December 31, Collateral or Security Unsecured bank loans Secured bank loans Short-term investments, account receivables, commercial paper, certificate of deposit -restricted, land, buildings, machinery and equipment, transportation equipment and

other assets.


13. COMMERCIAL PAPER PAYABLE December 31, Collateral or Security

Commercial paper payable

Certificate of deposit-restricted, short – term investments, long – term investment, land and buildings

Less: Prepaid interest



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14. BONDS PAYABLE

Secured bonds payable

Overseas exchangeable bonds payable

Less: Current portion of bonds payable

(1) The Company issued five-year secured domestic bonds on January 28, 2003. The significant terms of the bonds were as follows:

A. Total issuance amount:

The Company issued five-year secured domestic bonds totaling $1,800,000, including $500,000 of A bonds, $300,000 of B bonds, $200,000 of C bonds, $400,000 of D bonds and $400,000 of E bonds.

B. Issuing price: At par value of $1,000 per bond.

C. Coupon rate:

The five-year secured domestic bonds can be divided into five types of bonds, A, B, C, D and E.(Note) The coupon rate of A, B and D bonds is 3.95% less the floating interest rate. The coupon rate of C and E bonds is 3.951% less the floating rate.

D. Term of interest repayment:

The bond interest is payable in installments every six months from January 28, 2003 based on the coupon rate.

E. Repayment term:

The A bonds are repayable starting from January 2006 to January 2008 in three annual installments at the rate of 30%, 30% and 40%, respectively. The B, C, D, and E bonds are repayable on January 28, 2008 upon the maturity of the bonds.

F. Period: 5 years, from January 28, 2003 to January 28, 2008.

(Note): A bonds is guaranteed by International Commercial Bank of China, B and C bonds are guaranteed by Chang Hwa Commercial Bank and D and E bonds are guaranteed by Bank of Taiwan.

(2) The Company issued five-year secured domestic bonds in September 2003. The significant terms of the bonds were as follows:


The Company issued five-year secured domestic bonds totaling $1,300,000, including $300,000 of A, B and C bonds, $200,000 of D and E bonds.


C. Coupon rate:

The five-year secured domestic bonds can be divided into five types of bonds, A, B, C, D and E (Note). The coupon rate is determined as follows:



(a) If the floating rate is equal to or less than 0.75% per annum, the coupon rate is equal to the floating rate.

(b) If the floating rate is greater than 0.75% per annum, but is equal to or less than 2.50% per annum, the coupon rate is 2.69% per annum.

(c) If the floating rate is greater than 2.50% per annum, the coupon rate is 4.00% minus the floating rate.



E. Repayment term:

The bonds are repayable in September 2008 upon the maturity of the bonds.

F. Period: 5 years. The maturity dates of the bonds are from September 22 to September 26, 2008.

(Note): The bonds are guaranteed by Chang Hwa Commercial Bank, Bank of Taiwan and Taiwan Land Bank.



The Company issued five-year secured domestic bonds totaling $300,000.


C. Coupon rate:

The coupon rate in the first year is 3.00% per annum. The coupon rate from the second year to the fifth year is determined as follows:

(a) If the floating rate is less than 1.25% per annum, the coupon rate is the floating rate plus 0.70% per annum.

(b) If the floating rate is greater than or equal to 1.25% per annum, the coupon rate is 4.20% minus the floating rate.



E. Repayment term:

The bonds are repayable in September, 2008 upon the maturity of the bonds.

F. Period:

5 years, from September 29, 2003 to September 29, 2008. (Note): The bonds are guaranteed by the Hua Nan Commercial Bank.

(4)The Company issued five-year secured domestic bonds on December 24, 2003. The significant terms of the bonds were as follows:


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The Company issued five-year secured domestic bonds totaling $700,000, including $300,000 of A bonds, $200,000 of B and C bonds.


C. Coupon rate: The five-year secured domestic bonds can be divided into five types of bonds, A, B, C, D and E (Note). The coupon rate is determined as follows:(i) If the floating rate is equal to or less than 0.75% per annum, the coupon

rate is equal to the floating rate. (ii) If the floating rate is greater than 0.75% per annum, but is equal to or

less than 2.50% per annum, the coupon rate is 2.69% per annum. (iii) If the floating rate is greater than 2.50% per annum, the coupon rate is

4.00% minus the floating rate.


The bond interest is payable in installments every year from December 2003 based on the coupon rate.

E. Repayment term:

The A and B bonds are repayable on December 24, 2008 upon the maturity of the bond. The C Bonds are repayable starting from December 2006 to December 2008 in three annual installments at the rate of 30%, 30% and 40%, respectively.

F. Period:

5 years, from December 24, 2003 to December 24, 2008. (Note): A and B bonds are guaranteed by Taipei Commercial Bank and C bonds

is guaranteed by International Commercial Bank of China.

(5)President Chain Store Corp., (“PCSC“) issued five-year secured domestic bonds amounting to $700,000 on January 16, 2002. The interests are repayable in annual installment based on the coupon rate of 2.80%. The bonds are repayable on the maturity date. PCSC also issued another five-year secured domestic bonds amounting to $1,500,000 on June 10, 2003. The bonds can be divided into two types of bonds, A and B. The coupon rate of A bonds is 1.40% per annum. The bond interest is payable in installment every year. The bonds are repayable starting from July 2006 to July 2008 in three annual installments at the rate of 25%, 25% and 50%. The coupon rate of B bonds is 4% per annum less USD 6-Month LIBOR or 4% per annum less 180-day commercial paper interest rate. The bonds interest is payable in installment every six months. The bonds are repayable on the maturity date.

(6)On July 14 and July 27, 1999, Ton-Yi Industrial Corp. issued three-year, four-year and five year secured domestic bonds totaling $1,200,000 and $300,000, respectively, with coupon rates ranging from 5.85% to 6.14% and 5.85% to 6.2%, respectively. The three-year bonds, four-year bonds and five-year bonds are repayable upon the maturity. The interest expenses are payable annually. As of December 31, 2003, the current portion of bonds payable are $500,000.



(7) In December 2003, the Company issued Luxembourg Stock Exchange listed five-year zero coupon exchangeable bonds exchangeable for common shares of Ton Yi Industrial Corporation (Ton Yi) with an aggregate principal amount of USD 100 million. The significant terms and conditions of the bonds are as follows

A. Maturity date and final redemption:

Unless previously redeemed, exchanged, or purchased and cancelled, the Bonds will be redeemed at their principal amount in U.S. dollars on December 5, 2008.

B. Terms of Exchange:

Subject to prior redemption and except as otherwise provided herein. The Bonds may be exchanged, at any time on or after January 5, 2004 and prior to the close of business (at the place at which the Bond is deposited for exchange) on November 5, 2008. into Ton Yi shares at the exchange Price of NTD 13.39 per share, determined on the basis of a fixed exchange rate of NTD 34.108=USD 1.00.

The exchange price will be subject to adjustments upon the occurrence of certain events set out in the indenture.

C. Redemption at the Option of the Company:

The Company may at its option redeem the Bonds at their principal amount, (A) in whole or in part, on or at any time after December 5, 2005 if the average closing price of Ton Yi shares reported on the Taiwan Stock Exchange (the TSE ) and translated into U.S. dollars at the rate of NTD 34.018=USD 1.00 for 20 consecutive Trading Days, the last of which Trading Days occurs not more the 10 days prior to the date of notice of such redemption, is at least 125% of the Exchange Price then in effect translated into U.S. dollars at the Fixed Exchange Rate, or (B) in whole but not in part, at any time if at least 90% in principal amount of the Bonds has already been redeemed, exchanged, or purchased and cancelled; provided that the Company shall not exercises the redemption rights described in (A) and (B) above during a Closed Period.

D. Tax Redemption:

The Company may redeem the Bonds, in whole but not in part, if, as a result of certain changes in ROC laws or regulations occurring after the date of this Offering Circular, the Company becomes obliged to pay additional tax amounts.

E. Redemption at the Option of the holders:

The Company will, at the option of the holder of any Bond (the Bondholder )redeem all or a portion of the Bonds held by such Bondholder, at their principal amount on December 5, 2005 (the Put Option Date ). Bondholders may also require the Company to redeem all or a portion of the Bonds held by such Bondholder (A) if Ton Yi shares cease to be listed or admitted to trading for a period of at least 5 Trading Days on the TSE, or (B) upon the occurrence of a change in control of the Company.

F. Exchange of the Bonds:

As of December 31, 2003, no bondholders have exercised their rights to exchange their bonds.


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15. LONG-TERM LOANS

December 31, Collateral or security

Unsecured bank loan (Note)Secured bank loan Short-term investment,

long-term investment, land, building, machinery and equipment, furniture and fixtures, other equipment, other equipment, construction in progress and other assets

Note issuance facilities Long-term investment, land and building

Less: Prepaid interest Current portion of long-term loans

Range of maturity dates


Note: Including interest-free loans $242,850 that Mech-President Corp., borrowed from Chinese Petroleum Corporation in accordance with the contract.

16. RETIREMENT PLAN

(1) In accordance with the retirement plan of the Company, and its consolidated affiliated enterprises (except for President International Trade and Investment Corp., Cayman President Holding Ltd., Kai Yu Investment Co., Ltd. and President Fair Development Corp.), an employee may retire when he or she either (i) attains the age of 55 and with 15 years of service, or (ii) has rendered more than 25 years of service, or (iii) has reached the age of 60, or (iv) is incapacitated and unable to work (involuntary retirement). The employees accrue two units of credits for each year of service for the first 15 years, and one unit of credit for each year of service thereafter. Any fraction of a year which is equal to or greater than six months shall be counted as one year of service and any fraction of a year which is less than six months, half a year. Each employee can accumulate a maximum of 45 units of credits. Each unit of credit is based on the average of six-month’s salaries prior to retirement.

(2) The contributions to the independent retirement trust fund were $170,536 for 2003. As of December 31 2003, the retirement fund balance with the Central Trust of China was $1,811,982.



(3) The Company and its consolidated affiliated enterprises (except for President International Trade and Investment Corp., Cayman President Holding Ltd., Kai Yu Investment Co., Ltd., Uni-President Dream Parks Corp., President Pharmaceutical Corp., President Coffee Corp., and Tong-Jeng Development Corp.,) adopted FAS No. 18 "Accounting for Pension Cost" of the R.O.C. The assumptions used to measure the funded status of the various retirement plans are as follows:

Discount rate

Rate of increase in compensation levels

Expected return on plan

(4) The net periodic pension cost, of the Company and its consolidated affiliated enterprises (except for President International Trade and Investment Corp., Cayman President Holding Ltd., Kai Yu Investment Co., Ltd., Uni-President dream Parks Corp., President Pharmaceutical Corp., President Coffee Corp., and Tong-Jeng Development Corp.) for the period ended December 31, 2003 are as follows:

Service costInterest cost

Expected return on plan assets

Amortization of the unrecognized net

obligation at transition

Amortization of the

unrecognized prior service cost

Amortization of unrecognized

plan assets losses

Net periodic pension cost


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(5) The funded status of the plans for 2003 was as follows: (Note)

Benefit obligation:

Vested benefit obligation

Non-vested benefit obligation

Accumulated benefit obligation

Additional benefit based on future salaries

Projected benefit obligation

Plan assets at fair value

Plan funded status

Unrecognized prior service cost

Unrecognized net transition obligation

Unrealized plan asset loss

Additional liability

Accrued pension cost

Minimum liability

Vested benefit

Note: The Company’s consolidated affiliated enterprises funded status of the plan for 2003 was measured on December 31, 2003, except for the parent Company and Retail Support International Corp. which was measured on November 30, 2003.

17. GUARANTEE DEPOSITS

Member deposits

Contributions deposits

Other

(1) Security deposits for membership were paid according to the contract when the member joins the club; interests earned from contribution deposits were used to offset the annual fee and monthly fee.

(2) Imputed interest expenses of membership deposits and contributions deposits were $111,210 in 2003 which calculated using Accounting Research and Development Fundation (86) Ji Mi Zi No.214.



18. COMMON STOCK

(1) As approved by the stockholders' meeting, the Company issued 50,000,000 shares of Global Depositary Shares (the "GDSs") by means of issuing the first overseas registered common stocks on April 10, 1992. The proceeds from the issuance of the GDSs was collected on November 24, 1992. As of December 31, 2003, these were total of GDSs outstanding was 143,310 units, equivalent to 1,433,132 shares of the Company’s common stock.

The holders of the GDSs have substantially the same rights as holders of common shares. Under the R.O.C. Laws and the "Description of Global Depositary Receipts", the terms are as follows:

A. Exercise of voting rights

Holders of the GDSs will not have the right to exercise voting rights with respect to the underlying common shares. However, if the trustee receives identical instructions with respect to any matter to be voted on at such meeting from holders of at least 51% of the GDSs, the trustee will in respect of such matter vote all common shares represented by the GDSs in accordance with such instructions insofar as practicable and permitted under applicable law and the Articles of Incorporation of the Company.

B. The conversion of the GDSs

Under the conversion method, current shares represented by the GDSs may be withdrawn by holders of the GDSs. After the expiration of a three-month period after the closing of the GDS offering, a holder of the GDSs may request the Trustee to sell or cause to be sold on behalf of such holder the common shares represented by such GDSs through TSE.

C. Dividends

The holders of the GDSs have the same rights to receive dividends as holders of registered common shares.

(2) In order to maintain the company’s credit rating and stockholders’ equity, The Company retired 17,859 thousand shares of treasury stock on March 12, 2003, which was approved under MOEA. After the retirement of treasury stock, the total paid-in capital was $34,243,868, consisted of 3,424,387 thousand shares of common stock issued and outstanding with a par value of $10 (in dollars) per share.

(3) In order to maintain the Company’s credit rating and stockholders’ equity, The Company bought 49,002 thousand share of treasury stock and retired 29,289 thousand shares of treasury stock on Septomber 30, 2003, which was approved under MOEA. After the retirement of treasury stock, the total paid-in capital was $33,950,978, consisted of 3,395,098 thousand shares of common stock issued and outstanding with a par value of $10 (in dollars) per share.


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19. CAPITAL RESERVE

According to the R.O.C. Company Law, capital reserve shall be exclusively used to offset against accumulated deficit. However, capital reserve arising from paid-in capital in excess of par value and donation can be used to increase capital, after covering accumulated deficit.

20. RETAINED EARNINGS

(1) According to the ROC Company Law, the annual net income should be used initially to cover any accumulated deficit; thereafter 10% of the annual net income should be set aside as legal reserve until the legal reserve has reached 100% of contributed capital. Under the R.O.C. Company Law, the legal reserve shall be exclusively used to cover accumulated deficit or, if the balance of reserve exceeds 50% of contributed capital, to increase capital not exceeding 50% of reserve balance and shall not be used for any other purpose.

(2) According to the Company's Articles of Incorporation, 10% of the annual net earnings, after offsetting any loss of prior years and paying all taxes and dues, shall be set aside as legal reserve. The remaining net earnings can be distributed in accordance with a resolution passed by a meeting of the board of directors and approved at the stockholders' meeting. Of the amount distributed by the Company, 50% to 100% of the accumulated unappropriated retained earnings is appropriated as stockholders’ dividends 2% of the remaining earnings is fixed for directors' and supervisors' remuneration and not less than 0.2% is for employees' bonuses.

(3) The distribution of 2002 earnings in accordance with the resolution adopted by the stockholders’ meetings is $0.35 dollars of cash dividend per share.

(4) As of March 30, 2004, the Company has not yet held the board of directors meeting to discuss the proposal for distribution of the earnings for fiscal year 2003. The related information will be available from the Market Observation Post System website of Taiwan Stock Exchange Corporation once the resolution is approved by the board of directors and shareholders. The information on the distribution of 2002 earnings in accordance with the resolution adopted by the Board of Director and approved in the stockholders' meetings is as follows: Approved in the

stockholders’ meeting

A.Distribution:(i) Employees’ cash bonuses (ii) Employees’ stock bonuses (iii) Directors’ and supervisors’ remuneration

B.Information about earnings per share (in dollars) (i) Original EPS (Note 1) (ii) Imputed EPS (Note 2)

(Note 1) The original EPS was not retroactively adjusted in accordance with the issuance of capitalization of earnings and employees’ bonuses.



(Note 2) Imputed EPS = (net income – employees’ bonuses – Directors’ and supervisors’ remuneration)/weighted average number of shares outstanding for 2002.

(5) As of December 31, 2003, the balance of unappropriated earnings was as follows:

(A) Unappropriated earnings before 1997 (B) Unappropriated earnings since 1998 A: 10% income tax unpaid balance B: 10% income tax paid balance

(6) As of December 31, 2003, the imputation tax credit account balance amounted to $3,769. The Company distributed 2002 net income as dividends in accordance with the resolution adopted at the stockholders’ meeting on June 27, 2003, and the date of dividends distribution was August 22, 2003. The tax credit ratio was 32.29%. As of December 31, 2003, the estimated tax credit ratio was 0.13%. The amount of deductible tax distributable by the Company to its shareholders shall be limited to an amount not exceeding the amount of the imputation tax credit account balance on the date of distribution of the dividends. Accordingly, the actual tax credit ratio for the distribution of 2003 net income will be based on the imputation tax credit account balance up to the date of distribution of the dividends.

(7) According to ROC SFC Ruling, the debit balance of $781,100 of stockholders’ equity as of December 31, 2003, should be appropriated as special earnings reserve and not be distributed.

21. TREASURY STOCK

The changes in treasury stock purchased by the Company in 2003 are as follows: Unit In thousands of shares

2003 Purpose for acquisition Beginning balance Addition Reduction Ending balanceMaintaining credit of the Company and stockholders’ equity

(1) According to the R.O.C. Securities Exchange Law, the percentage of the number of shares of treasury stock shall not exceed 10% of the total shares of common stocks issued by the Company and the total amount of treasury stock shall not exceed the total amount of retained earnings, paid-in capital in excess of par value and realized capital reserve. As of December 31, 2003, the outstanding balance of treasury stock were $261,492.

(2) According to the R.O.C. Securities Exchange Law, treasury stock cannot be pledged and bears no shareholders’ rights before the stock is reissued.

(3) According to the R.O.C. Securities Exchange Law, the treasury stock acquired for maintaining credit rating of the Company and stockholders’ equity should be retired within six months of acquisition.


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22. PERSONNEL, DEPRECIATION AND AMORTIZATION EXPENSES The Company’s personnel, depreciation and amortization expenses for 2003 are summarized as follows:

2003

Operating costs Operating expenses Total

Personnel expenses: Salaries Labor and health

insurances Pension Other

Depreciation expenses Amortization expenses

23.DEFERRED INCOME TAX AND INCOME TAX EXPENSE

(1) Adjustments for corporate income tax expense and income tax payable

are as follows:

Corporate income tax expense

10% additional income tax on unappropriated earnings

Corporate income tax expense Net change amount for deferred income tax assets and liabilities Income tax on separately taxed income Over provision of prior years' income taxes Prepaid and income taxes withheld Net income tax payable

(Note):Income tax payable

Income tax refund Net income tax payable



(2) The details of deferred income tax assets or liabilities resulting from temporary

differences, loss carryforwards tax credit and investment tax credits were as

follows: December 31, 2003

Amount Tax effect

CURRENT ITEMS: Temporary differences Bad debt expenses

Unrealized inventory decline

and obsolescence loss

Investment loss

Expenses (revenues) carried forward

Unrealized gain or loss on

foreign currency transaction

Other

Loss carryforwards

Investment tax credits

Valuation allowance

NON-CURRENT ITEMS:

Temporary differences

Investment income or loss

Depreciation expenses

Pension cost

Unrealized gain or loss on foreign currency transaction

Expenses (revenues) carried forward

Other

Loss carryforwards

Investment tax credits

Valuation allowance

(3) As of December 31, 2003, the balance of unused credits from loss carryforwards was to $727,704, which will expire between 2003 and 2008.

(4) As of December 31, 2003, unused investments tax credits for purchase of machinery and equipment, research expenditure, personnel training expenditure and expenditure on the development of international trademark were $999,451, and will expire between 2006 and 2007.


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(5) The Company's income tax returns for the years through 2000 have been assessed

by the Tax Authority. As of March 30, 2004, there were no disputes between the

Company and the Tax Authority.

24. BASIC EARNINGS PER COMMON SHARE (EPS)

2003

Weighted average number of shares

Amount outstanding during the EPS (in dollars)


25. FOREIGN EXCHANGE REMITTANCE RIGHT

The foreign shareholders of Retail Support International Corp. can remit dividends

after paying the relevant tax and the original investments.



Note 5. RELATED-PARTY TRANSACTIONS

1. Related parties and their relationship with the Company

Name of Related Parties Relationship with the Company Tone Sang Construction Corp. Subsidiary accounted for under the equity method President Nisshin Corp. Subsidiary accounted for under the equity method President Kikkoman, Inc. Subsidiary accounted for under the equity method President Information Corp. Subsidiary accounted for under the equity method TTET Union Corp. Subsidiary accounted for under the equity method Qware Systems & Services Corp. Subsidiary accounted for under the equity method President Tokyo Corp. Subsidiary accounted for under the equity method Ztong Yee Industrial Co., Ltd. Subsidiary accounted for under the equity method Prince Housing Development Corp. The Company represented on board of directors of

Prince Housing Development Corp. Gao Qing Yuan Vice-president RFM President Land Corporation A subsidiary of Cayman President Holding Ltd. (accounted for under the equity method) Prospect Top Development Ltd. A subsidiary of Cayman President Holding Ltd. (accounted for under the equity method) Uni-President Vender Corp. A subsidiary of Kai Yu Investment Co., Ltd. (accounted for under the equity method) Tung Ang Enterprises Corp. A subsidiary of Kai Yu Investment Co., Ltd. (accounted for under the equity method) Lien Bo Enterprises Corp. A subsidiary of Nanlien International Corp.

(accounted for under the equity method) Tun Hsiang Enterprises Corp. A subsidiary of Nanlien International Corp.

(accounted for under the equity method) Kuan Chang Enterprises Corp. A subsidiary of Nanlien International Corp. (accounted for under the equity method) Tong Yu Enterprises Corp. A subsidiary of Nanlien International Corp. (accounted for under the equity method) Lien Lu Enterprises Corp. A subsidiary of Nanlien International Corp.

(accounted for under the equity method) G-Advanced Semiconductor Technology Corp.

A subsidiary of President International Development Corp. (accounted for under the equity method)

Tong Shou Investment Corp. A subsidiary of President International Development Corp. (accounted for under the equity method)

Tong Cheng Investment Corp. A subsidiary of President International Development Corp. (accounted for under the equity method)

Tong Yu Investment Corp. A subsidiary of President International Development Corp. (accounted for under the equity method)


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Name of Related Parties Relationship with the Company President (BVI) International Investment

Holdings Ltd. A subsidiary of President International

Development Corp. (accounted for under the equity method)

Kainan Plywood & Wood Wfg Co., Ltd. A subsidiary of Tong-Jeng Development Corp. (accounted for under the equity method)

Wisdom Distribution Service Corp. A subsidiary of President Chain Store Corp. (accounted for under the equity method) President Chain Store (BVI) Holdings

Ltd.A subsidiary of President Chain Store Corp.

(accounted for under the equity method) Uni-President Yellowhat Corp. A subsidiary of President Chain Store Corp.

(accounted for under the equity method) President Collect Service Corp. A subsidiary of President Chain Store Corp.

(accounted for under the equity method) President Construction Corp. A subsidiary of President Chain Store Corp.

(relationship in reality) Cayman Ton Yi Industrial Holdings A subsidiary of Ton Yi Industrial Corp. Ltd. (accounted for under the equity method) Toyota-Tsusho Corp. A director of Ton Yi Industrial Corp. President Logistics International Corp. A subsidiary of Retail Support International Corp. (accounted for under the equity method) Retail Support Taiwan Corp. A subsidiary of Retail Support International Corp. (accounted for under the equity method) Starbucks Coffee International, Inc. A director of the subsidiary President Coffee Corp.

2. Transactions with related parties:

(1) Sales


Cayman Ton Yi Industrial Holdings Ltd.

Other (individually less than 10%)

a. The terms of collection period for the year ended December 31, 2003 were two weeks after sales to third parties, one month by notes to related parties and 60~75 days after sales for foodstuff and animal feed product and 10-15 days after sales of soybean products, except that the collection period is two months for sales to the corporations of outlet channels one month for sales to the corporations that operate both in outlet channels and traditional channels two weeks for sales to the corporations of traditional channels 2 months for sales to Retail Support International Corp.; Uni-President Vender Corp. closes it’s accounts 20 days within the end of each month Tung Ang Enterprises Corp. closes it’s accounts with 10 days after month end and remits in 40 days; Uni-President Cold Chain Corp. closes its accounts 40 days from the end of each month; President Chain Store Corp. closes its accounts 30 days from the end of each month. Except for the collection periods mentioned above, other terms of sales were the same to related and third parties.



b. The sales terms of the consolidated affiliated enterprises from the related parties were the same as for other clients, except for the followings:

(i) The sales terms of Uni-President Dream Parks Corp. were identical for all

clients except the collection period for Tung Ang Enterprise Corp. is 40-50

days after previous months.

(ii) The sales terms of Nanlien International Corp. were identical all clients

except the collection period for Lien Lu Enterprise Corp. within 90 days after

previous months.

(iii)President Entertainment Corp. sales to related parties must be priced 5%

higher than cost, the payments must be made within 30 days after sales.

(iv)The sales terms of Ton Yi Industrial Corp. made to related parties were

identical for all customers except for the regular 43 days collection period to

subsidiaries in China.

(2) Purchases

Wisdom Distribution Service Corp.

Toyota-Tsusho Corp.


The terms of purchases and payments of the Company (due within one month) for the related parties are the same as for regular suppliers except for the following companies:

a. TTET Union Corp. closes its account at the end of each month, and pays within one week with post dated checks due in 30-45 days.

b. President Nisshin Corp. pays its account within 15 days.

The purchase terms of the consolidated affiliated enterprises from the related parties were the same as for other clients, except for the followings;

All President Chain Store Corp’s purchases from the related parties are at regular prices, except for Wisdom Distribution Service Corp. In addition, the terms for volume discounts and delivery subsidies are the same as other suppliers. All payment terms for related parties are at regular terms. The terms and conditions for purchases and delivery from Retail Support Taiwan Corp., and Wisdom Distribution Service Corp. were based on the contract. Under the agreement, all the merchandises and retail items except tax-free goods, purchased by the subsidiaries are delivered. The costs for goods purchased are based on cost plus basis.


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Except for Toyota-Tsusho Corp., the purchase terms of Ton Yi Industrial Corp. from the related parties were the same as for other clients. The terms and conditions for purchase from Toyota-Tsusho Corp., were 180 days of letters of credit.

(3) Purchase of long-term investment

Qware Systems & Services Corp.

Prince Housing Development Corp.

The Company purchased 1,518,000 and 1,518,000 shares of common stocks of President Information Corp. from Qware Systems & Services Corp. and Prince Housing Development Corp., respectively, based on negotiated prices in 2003.

(4) Sale of investments

Selling price Book value Gain(Loss) Tong Yu Investment Corp. Tong Cheng Investment Corp. Tong Shou Investment Corp.

President International Development Corp. sold 70,000,000 shares of Toppoly Optoelectornics Corp.; to Tong Yu Investment Corp.; sold 3,700 and 1,700,000 shares of South Epitaxy Corp. to Tong Cheng Investment Corp. and Tong Shou Investment Corp., respectively, at negotiated price in 2003.

(5) Purchases of property, plant and equipment

Items 2003 President Tokyo Corp. Funiture and fixtures President Information Corp. Funiture and fixtures and other

equipmentOther (individually less than Buildings, furniture and fixtures

10%) and other equipment

The Company and its consolidated affiliated enterprises purchased certain fixed assets from other related parties at negotiated prices.

(6) Processing expenses

TTET Union Corp.



(7) Management and freight expenses

Retail Support Taiwan Corp. Lien Bo Enterprises Corp. Other (individually less than 10%)

(8) Other expenses

Kuan Chang Enterprises Corp. Qware Systems & Services Corp. Other (individually less than 10%)

(9) Interest income Please see note 5(3) Financing Section.

(10) Rental income

Rent collection frequency Uni-President Vender Corp. Monthly

Other (individually less than 10%) Monthly

Rents are charged based on the existing lease agreements at negotiated prices.

(11) Other income

Management and technical consultancy fees: Ztong Yee Industrial Co., Ltd.

Tun Ang Enterprises Corp. Other (individually less than 10%)

Other income: Tun Ang Enterprises Corp.



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(12) Accounts receivable December

Cayman Ton Yi Industrial Holdings Ltd.



(13) Other receivables (including financing) December

G-Advance Semiconductor Technology

Corp.

Prospect Top Development Ltd.


(14) Long-term notes and accounts receivables December

Tone Sang Construction Corp.

(15) Accounts payable December

Wisdom Distribution Service Corp. Other (individually less than 10%)

(16) Accrued expenses December

President Logistics International Corp. Other (individually less than 10%)



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4. Contingent liabilities and commitments

(1) The amount endorsed and guaranteed for related parties are as follows: December 31,

Cayman Ton Yi Industrial Holdings Ltd. President (BVI) International Investment Holdings Ltd. Other (individually less than 10%)

(2) As of December 31, 2003, the commercial paper payable of President Entertainment Corp. $50,000 was guaranteed by Gao Qing Yuan.

(3) As of December 31, 2003, Tong Cheng Investment Corp. and Tong Yu Investment Corp. provided the common stocks of Toppoly Optoelectronics Inc. in the amount $342,300 (30,000,000 shares) as the guarantee for short-term loans.

(4) As of December 31, 2003, certain bank loans of Tong - Jeng Development Corp. was secured by the land of Kainan Plywood & Wood Mfg Co., Ltd.

(5) As of December 31, 2003, the bank loans and commercial paper payable of President Transnet Corp. $510,000 was guaranteed by President Chain Store Corp.

(6) On January 3, 2004, President Chain Store Corp. entered into a letter of intent with President Construction Corp. to negotiate a sale of certain real estate. The term of the letter of intent is to be dated June 30, 2004. Under the terms of the letter of intent, President Chain Store Corp. paid $200,000 to President Construction Corp. as deposit.

(7) On August 24, 1998, the Company and seven companies (including the President International Development Corp., President Chain Store Corp. and Prince Housing Development Corporation) purchased a parcel of land (located in Shin-Yi District Lot No. 6) with an area of 9,643 m2 from the Ministry of National Defense. The Company, President International Development Corp. and President Chain Store Corp. shared 30% ownership of the land. According to the “PEC National Building Construction Contract” dated November 6, 1998, the Company, President International Development Corp. and President Chain Store Corp. will contribute 30% of the capital in cash and share the obligations and rights based on their contributions.

(8) In July, 2000, President Chain Store Corp. signed a perpetual technical cooperation contract (the Contract) with the Southland Corporation. Under the terms of the Contract, the Company agrees that:

A. The Company guarantees that President Chain Store Corp. will fulfil all payments or other obligations to Southland Corporation due under the Contract.

B. Without the written approval of Southland Corporation in advance, the Company may not sell, transfer, or pledge the ownership or the assets of President Chain Store Corp.

C. The Company should maintain no less than 40% ownership of President Chain Store Corp.



(9) Ton Yi Industrial Corp. ensured Cayman Ton Yi Industrial Holding Ltd. signed a syndicated loan with several banks in Taiwan. During the period of syndicated loan, Ton Yi Industrial ought to maintain a debt ratio below 200%; an interest coverage ratio above 200%, the tangible assets reduced liabilities above $12,000,000 and the ratio of liabilities and of liabilities and amount of guarantee to tangible assets below 260%.

(10) President Coffee Corp. signed a contract with Starbucks Corp. to operate Starbucks coffee shops. According to the contract, President Coffee should pay technical remuneration. The terms of calculation and payment status are following: President Coffee Corp. pays technical remuneration monthly in accordance to a fixed portion of every shop’s total monthly sales. If the number of shops reach 100 shops, the technical remuneration will be reduced by 0.5%.

(11) In August, 2002, President Transnet Corp. entered into an agreement with President Collect Service Corp. to collect accounts receivable and the distribution of goods of President Collect Service Corp.

The one-year agreement is automatically renewable within three months after maturing. According to the agreement, President Collect Service Corp. should pay 50% of its handing charges collected from customers to President Transnet Corp.

Note 6. PLEDGED ASSETS

As of December 31, 2003, the pledged assets are as follows: December

Purpose of collateral Demand deposit Count proceedings Short-term investments Short-term loans, commercial Papers payable and long-term loansAccounts receivable Short-term loans Certificate of deposit- Short-term loans and commercial restricted and commercial papers payable paper Long-term investments Commercial papers payable and

long- term loans Land Short-term loans, commercial papers payable and long-term loans Buildings-net Short-term loans, commercial papers

payable and long-term loans Machinery and Short-term loans and long-term loans equipment-net Furnitures and fixtures-net Long-term loans Transportation equipment Short-term loans and long-term loansOther equipment-net Long-term loans Construction in progress Long-term loans Other assets-other Short-term loans and long-term loansGuaranteed deposit Performance guarantees


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Note 7. CONTINGENT LIABILITIES AND COMMITMENTS

(1) The Company and its consolidated affiliated enterprises provided endorsement

and guarantee to third parties deal with refer to Note 5(4).

(2) The remaining balance due for construction in progress and advances to suppliers

are as follows: December 31,

Construction in progress

Advances to suppliers

(3) As of December 31, 2003, total letters of credit opened and unused were

$1,642,985.

(4) In August 2000, the Company signed a $4,200,000 5-year syndicated credit facility agreement from October 5, 2000 to October 5, 2005 led by Taiwan Industrial Bank, United World Chinese Commercial Bank and Taiwan Land Bank. Under the terms of the loan agreement, the Company agrees that’s:

(A)The current ratio shall be above 70%.

(B)The debt ratio shall be below 100%.

(C)The ratio of liabilities and amount of guarantee to tangible net worth shall be

below 150%.

(D)Any substantial investment plan such as purchase or disposal of assets,

substantial change of business or organization and sale, transfer, lease, and

other arrangements of major assets shall require written consent in writing

from bank syndication.

(5) In June 2001, the Company signed a $6,000,000 5-year syndicated credit facility agreement including Note issuance facilities and Unsecured bank loans from June 28, 2001 to June 28, 2006 led by International Commercial Bank of China and Chiao Tung Bank. Under the terms of the loan agreement, the Company agrees that

(A)The current ratio shall be above 80%.

(B)The debt ratio shall be below 100% from 2000, retroactively.

(C)If the ratios mentioned above do not meet the requirements, the Company

should improve it before the June 30 of the next year.

(D)To ensure that, any substantial investment plan such as purchase or disposal

of assets, substantial change of business or organization shall be

communicated to the management bank. The lead bank may call a meeting of

the leaders to discuss above events as needed.



(6) In September 2002, the Company signed a $6,000,000 5-year syndicated credit facility agreement, including note issuance facilities and unsecured bank loans from September 18, 2002 to September 18, 2007 led by Taiwan Bank, BNP PARIBAS, DBS Bank and Standard Chartered Bank. Under the terms of the loan agreement, the Company agrees that

(A)The year-end audited consolidated tangible stockholders’ equity shall not be

less than $30,000,000.

(B)The debt to ratio computed from the year-end non-consolidated audited

financial statements shall not be above 150%.

(C)The interest coverage ratio computed from the year-end non-consolidated

audited financial statements shall not be below 200%.

(D)The current ratio computed from the year-end non-consolidated audited

financial statements shall not be below 80%.

(7) As of December 31, 2003, banks have provided guarantee to the subsidiary Nanlien International Corp. in the amount of $63,000 for the import of goods, lease of warehouse and has an agreement customs duty.

(8) Tung Ho Development Co., Ltd. has an agreement with a bank to facilitate its members for consumers bank loans for payments of initiation fees and security deposits. The Company has committed to buy back the membership certificates which were pledge as security when the borrowers default on the loan. As of December 31, 2003. the loans for the initiation fees and security deposits were $26,000 and $248,000, respectively.

(9) As of December 31, 2003, Tung Ho Development Co., Ltd. had lease commitments for retail outlets, offices and parking lots.

Summary of the estimated annual rental expenses is as follows:

Year Total rental expenses

and thereafter

(10) President Entertainment Corp.(PEC) signed a non-public use hillside land development contract with National Property Bureau in January and August of 1999. The National Property Bureau agreed to allow PEC to jointly develop two lots of land with a security deposit of $35,071 and issued the certificates to President Entertainment Corp.. President Entertainment Corp. subsequently replaced the security deposits with time deposits in the same amount. The certificates allow PEC to apply for the joint hillside development within a year which may be extended. In addition, within three months of the approval of the application, PEC is to purchase the land. If PEC fails to purchase the land, the National Property Bureau will charge 1% of the guarantee fund as penalty each month. If the land scope is charged or used illegally, the National Property Bureau would charge 25% of the published price of the land as compensations.


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(11) President Entertainment Corp.(PEC) signed a non-public use hillside land development contract with National Property Bureau in July of 2001. The National Property Bureau agreed to allow PEC to jointly develop two lots of land with a security deposit of $63,055 and issued the certificates to President Entertainment Corp. President Entertainment Corp. subsequently replaced the security deposits with time deposit in the same amount. The certificates allow PEC to apply for the joint hillside development within a year which may be extended. In addition, within three months of the approval of the application, PEC is to purchase the land. If PEC fails to purchase the land, the National Property Bureau will charge 1% of guarantee fund as penalty each month. If the land scope is changed or used illegally, the National Property Bureau would charge 25% of the published price of the land as compensations.

(12) President Entertainment Corp.(PEC) signed a non-public use hillside land development contract with National Property Bureau in July of 2003. The National Property Bureau agreed to allow PEC to jointly develop two lots of land with a security deposit of $39,434 and issued the certificates to President Entertainment Corp.. President Entertainment Corp. subsequently replaced the security deposits with time deposit in the same amount. The certificates allow PEC to apply for the joint hillside development within a year which may be extended. In addition, within three months of the approval of the application, PEC is to purchase the land. If PEC fails to purchase the land, the National Property Bureau will charge 1% of guarantee fund as penalty each month. If the land scope is changed or used illegally, the National Property Bureau would charge 25% of the published price of the land as compensations.

(13) President International Development Corp. signed a syndicated medium – term loan aggrement and guarantee for issuance of commercial papers with twelve financial institutions securred . The terms of the aggrement are as follows: (A) Period: medium-term loan is 5 years and commercial paper is 3 years.

(B) Amount and usage: total facility is $3,000,000, including $2,000,000 for

medium-term loan and $1,000,000 for commercial papers. The facility for

commercial papers is a revolving facility.

(C) Commitment fee: annual commitment fee is charged at 0.25% of unused

facility.

(D) Commercial paper guarantee fee: annual fee of 0.75% is charged on amount

issued.

(E) Collateral: the Company shall provide stocks for collaterals.

(F) Commitments: the Company’s debit ratio shall not is excess of 110% and

the tangible net worth shall not be less than $12,500,000 within the contract.



(14) President Chain Store Corp.(PCSC) has signed the rental agreements with non-related parties to rent store spaces with lease periods ranging from 3 to 12 years. As of December 31, 2003, PCSC has prepaid rent and guaranteed deposits in the amount of $565,834 and $709,521, respectively.

Summary of the estimated annual rental expenses of PCSC is as follows:


and thereafter

(15) To construct the Tinplate Plant and Tin Mill Black Plate Plant, Ton Yi Industrial Corp. has signed land lease contract with Taiwan Sugar Corp. The term of contract covers the period from July 1, 1993, to March 9, 2048, and the annual rental payments is based on 10% of the annual assessed value of the land. Royalty payments for the land lease is paid 2 to 4 times of rental expenses for the current year on a 20 year basis, and is amortized over a period of 20 years. As of December 31, 2003, the balance of royalty payments is $24,579.

(16) To avoid any exchange gain or loss caused in Yen for the purchase of machinery from a Japanese corporation, Ton Yi Industrial Corp. has signed a contract with the Japanese corporation in October, 1998 to limit the range exchange rate between 0.2250 to 0.2570 per NT$. Any exchange gain or loss will be absorbed by the Japanese corporation. As of December 31, 2003, the Company has long-term receivables of $862,979 from the Japanese corporation for the exchange loss

(17) As of December 31, 2003, Retail Support International Corp. provided the guarantee $450,000 for purchases of phone cards, cigarettes and liquor.

(18) Retail Support International Corp. (RSIC) signed a lease contract for its plants.

Summary of the estimated minimum annual rental expenses of RSIC is as

follows:


and thereafter


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(19) As of December 31, 2003, Mech-President Corp., has signed the rental agreements for lease of filling stations, the estimated minimum annual rental expenses are as follows: Payment period Amount

(20) As of December 31, 2003, Mech-President Co. had notes payable of $154,270 outstanding for construction performance guarantees.

(21) President Coffee Corp. (PCC) has signed the rental agreements with non-related parties to rent store spaces with lease period from 7 to 10 years. As of December 31, 2003, PCC has paid security deposits in the amount of $75,197.

Summary of the estimated minimum annual rental commitments of PCC is as follows:


and thereafter

(22) President Transnet Corp. has signed agreements for home delivery services with Yamato Transport Corp. for ten years on January 24, 2000. PTC has prepaid

30,000,000, and will pay royalty monthly based on a fixed percentage of sales revenue with a minimum of 1,000,000 per month.



(23) President Transnet Corp. has signed rental agreements with non-related parties to rent land and building for construction of warehouse with lease periods ranging from 1 to 7 years.

As of December 31, 2003, summary of the estimated minimum annual rental

commitments of PTC is as follows:


and thereafter

Note 8. SIGNIFICANT NATURAL DISASTER LOSS: None.

Note 9. SIGNIFICANT SUBSEQUENT EVENT:

As approved by the meeting of the Board of Directors on March 1, 2004, the Company purchased 30,038,000 shares of Kuang Chuan Co., Ltd. at $32.0117 per share (in dollars) from We-Chuan Investment Co., Ltd. and others. Under the contract , the Company will purchase 22,000 shares (purchasing price at $22,440) of Kuang Chuan Co., Ltd. and 6,600,000 shares (purchasing price at $66,000) of Hi-Life International Co., Ltd. The total amount of cost was $1,050,000.

Note 10. OTHER:

(1)INFORMATION OF INVESTMENT ON DERIVATIVE FINANCIAL INSTRUMENTS

The detail of the Interest Rate Swap Contracts and Non Delivery Forward in 2003 is as follows:

a. Contract amount or notional principals amount and credit risk

December 31, 2003

Contract amount

(Notional principal Derivative financial instruments amount) Credit risk

Interest Rate Swap Contracts $ 4 $

Non-Delivery Forword


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The credit risk stated above represents the ultimate loss from the Interest RateSwap Contracts if settled at the balance sheet date and defaulted by the counterparts. However, as the counterparties are banks with good credit ratings, the credit risk is minimal.

b. Market risk

The main purpose of holding derivative financial instruments is for hedging. Gain or loss resulted from the fluctuation of market interest rates will be offset by the gain or loss incurred from the underlying hedged items. Accordingly, the market risk is immaterial.


The purpose or holding derivative financial instruments is for hedging. Due to the interest or exchange rates on the contracts and Non-Delivery Forword are certain and hence the working capital of the Company should be sufficient. Accordingly, the liquidity risk is low.


(a)Transaction terms:

On December 16, 2002 and November 13, 2003, respectively, the Company signed a contract agreeing to pay or receive every three months or six months the difference between floating and fixed interest rates during the 5- year period of the contracts.

Non-Delivery Forward:

The Company and the bank have approved the foreign currency settlement on maturity date is the difference between the original forward rate and the official rate designated at settlement.

(b)The Company signed an Interest Rate Swap Contract to hedge the effects of secured domestic bonds denominated from fluctuations of interest and exchange rates. The hedging instruments are derivative financial instruments with inverse relationships with the market value of the hedged positions and they are evaluated periodically.


(a) The liabilities and assets resulted from the Interest Rate Swap Contracts were offset. As of December 31, 2003, the net amount rresulting from the Interest Rate Swap Contracts are $16,558 of other receivable and the reduction of interest expenses

(b) As of December 31, 2003, gain on foreign currency transctions resulted from the Non-Delivery Forword are $7,970.



(2)FAIR VALUE OF INVESTMENTS ON NON-DERIVATIVE FINANCIAL INSTRUMENTS

December 31,2003 Book value Fair value

Financial assets

Financial assets with same book and fair value

Short – term investments

Long – term investments

Other financial assets – non – current

Guaranteed deposits

Long – term receivables

December 31, 2003 Financial liabilities Book value Fair value Financial liabilities with the same book and fair value

Bonds payable

Long – term loans

Long – term payables

Provision for retirement plan

Customers’ deposits

a. The due dates of short – term financial instruments are close to the balance sheet date (December 31, 2003). Accordingly, the fair value of short-term financial instruments are estimated based on the book value recognized in the balance sheet and applied to cash and cash equivalent, notes and accounts receivable, other receivables, other financial assets-current, short-term loans, commercial papers payable, notes and accounts payable, income tax payable, accrued expenses, other payables and the current portion of long-term liabilities.

b. Short-term investments:

(i) Mutual funds – the fair value are estimated based on the net assets value at the balance sheet date.

(ii) The fair value of listed stocks and government bonds are estimated based on the closing price at balance sheet date.

c. The fair value of long-term investments are based on the market value. The fair value of investments without any market value is based on the net equities of the investee companies.

d. The fair value of other financial assets-current guaranteed deposits and long–term receivables is based on the discounted value of expected future cash inflow and the discount rate is based on the fixed rate of one year time deposit in the post office at December 31, 2003.


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e. The fair value of bonds payables, long–term loans, long–term payables and customers’ deposits are based on the discounted value of expected future cash inflow and the discount rate is based on the rate of long-term loans at December 31, 2003.

f. The fair value of provision for retirement plan is based on the funding status presented on the actuarial report measured.



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A. The revenue of an industry segment includes revenue both from sales to

unaffiliated customers (including sales, other operating revenue, rent revenue,

gain on disposal of segment and other income), intersegment sales and

revenue from broadcasting, except for the investment income.

B. Operating profit of loss of industry segment is its department segment revenues minus segment costs and expenses, which was generated in relation to the segment revenues except interest expense. The Company accounts for the intersgment purchases and intersegment sales in the same way as the revenue from broadcasting.

C. The identified assets of an industry segment are those tangible and intangible enterprise assets that are used by the industry segment, but the following items are not included: a. Assets not used by industry segment.

b. Long-term investments.

(2)Financial Information on Geographic Areas: No foreign operation.

(3)Information on Export Sales:

Export sales of the Company for 2003, constituted less than 10% of the total revenues

of 2003.

(4)Information on Significant Customers:

In 2003 no customer constituted more than 10% of the Company’s total revenue of

2003.

Published Date: April 30, 2004


Chairman: Kao, Chin Yen

Head Office: 301, Chung Cheng Rd., Yungkang City, Tainan Hsien 710, Taiwan, ROC

Tel: +886-6-253 2121

92¦~²Î¤@¦~³ø«Ê · realized with solid operation and necessary transformation. reported...

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