President Chain Store : PCSC announces on behalf of President Drugstore Business Corp. for acquisition of right-of-use asset

2020-12-02

Date of events:2020/12/02 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):

Right-of-use asset of real estate located at No.164, * Rd.,

Zhongshan Dist., Taipei City.

2.Date of occurrence of the event:2020/12/02

3.Transaction unit amount (e.g.XX square meters, equivalent to XX ping), unit price, and total transaction price:

Volume: 49 Taiwanese ping.

Unit price: NT$4,700~5,600 per ping, monthly rent: NT$230.3K~274.4K.

Total transaction price: around NT$ 26,477,955~31,548,202.

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 Chain Store Corporation

Relationship with the company: Parent company.

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: PCSC acquires the right of use asset from

a non-related party.

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 period: 10 years

Monetary amount: monthly rent is around NT$230.3K~274.4K.

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: Board of directors.

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:2020/12/02

25.Date of ratification by supervisors or approval by

the audit committee:2020/12/02

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:None.

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