President Chain Store : Announcement regarding to acquisition of right-of-use asset

2021-02-05

Date of events:2021/02/05 To which item it meets:paragraph 20

Statement

1.Name and nature of the underlying asset (e.g., land located at Sublot XX,

Lot XX, North District, Taichung City):

Partial real estate right-of-use asset at No.105-27, Zhongyong Rd.,

Nantun Dist., Taichung City.

2.Date of occurrence of the event:2021/02/05

3.Transaction unit amount (e.g.XX square meters, equivalent to XX ping),

unit price, and total transaction price:

Volume: 58 Taiwanese ping.

Total transaction price: around NTD 6,215 thousand.

4.Trading counterparty and its relationship with the Company (if the trading

counterparty is a natural person and furthermore is not a related party of

the Company, the name of the trading counterparty is not required to be

disclosed):

Counterparty to the trade:President Drugstore Business Corp.

Relationship with the company:100% owned subsidiary.

5.Where the trading counterparty is a related party, announcement shall also

be made of the reason for choosing the related party as trading counterparty

and the identity of the previous owner, its relationship with the Company

and the trading counterparty, and the previous date and monetary amount of

transfer:

Reason for choosing the related party as trading counterpart:

Location meets the requirement of operation.

Previous transaction: related party acquires the right of use asset

from a natural person who is not a related party of the Company.

6.Where an owner of the underlying assets within the past five years has

been a related party of the Company, the announcement shall also include the

date and price of acquisition and disposal by the related party, and its

relationship with the Company at the time of the transaction:NA

7.Projected gain (or loss) through disposal (not applicable for

acquisition of assets; those with deferral should provide a table

explaining recognition):NA

8.Terms of delivery or payment (including payment period and

monetary amount), restrictive covenants in the contract,

and other important terms and conditions:

Payment terms: accordance with the agreement.

Restrictive covenants in the contract: None.

9.The manner of deciding on this transaction (such as invitation to tender,

price comparison, or price negotiation), the reference basis for the

decision on price, and the decision-making unit:

The manner of deciding on this transaction: by negotiation

The reference basis for the decision on price: based on market price.

The decision-making department: Approved by internal authorization.

10.Name of the professional appraisal firm or company and

its appraisal price:NA

11.Name of the professional appraiser:NA

12.Practice certificate number of the professional appraiser:NA

13.The appraisal report has a limited price, specific price,

or special price:NA

14.An appraisal report has not yet been obtained:NA

15.Reason for an appraisal report not being obtained:NA

16.Reason for any significant discrepancy with the appraisal reports

and opinion of the CPA:NA

17.Name of the CPA firm:NA

18.Name of the CPA:NA

19.Practice certificate number of the CPA:NA

20.Broker and broker's fee:NA

21.Concrete purpose or use of the acquisition or disposal:

Store operation.

22.Any dissenting opinions of directors to the present transaction:NA

23.Whether the counterparty of the current transaction is a

related party:Yes.

24.Date of the board of directors resolution:NA

25.Date of ratification by supervisors or approval by

the audit committee:NA

26.The transaction is to acquire a real property or right-of-use

asset from a related party:Yes

27.The price assessed in accordance with the Article 16 of the

Regulations Governing the Acquisition and Disposal of Assets

by Public Companies:NA

28.Where the above assessed price is lower than the transaction price,

the price assessed in accordance with the Article 17 of the same

regulations:NA

29.Any other matters that need to be specified:

The right-of-use asset was from lease contracts signed before

2019/1/1. The announcement is made due to the changes of condition

of the lease contract.

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