presidentchainstorecorporation.docVIP

President Chain Store Corporation Financial Statement Independent Auditor’s Report 1st Quarter of 2008 and 2007 (Stock Code 2912) [ Translation Version] Company address: 8F, No. 8, Dongxing Rd, Taipei Telephone: (02) 2747-8711 President Chain Store Corporation Financial Statements for 1st Quarter of 2008 and 2007 Index Item Page I. Cover 1 II. Index 2 ~ 3 III. Independent Auditor’s Report 4 IV. Balance Sheet 5 V. Income Statement 6 VI. Statement of Change in Shareholders’ Equity Not applicable VII. Statement of Cash Flow 7 ~ 8 VIII. Notes to Financial Statements (I) Company History 9 (II) Notes to principal accounting policy 9 ~ 15 (III) Reasons and effect of change in accounting principle 15 (IV) Notes to major account titles 16 ~ 25 (V) Trade between stake holders 25 ~ 34 (VI) Pledged Assets 34 (VII) Major undertaking and contingency 34 ~ 35 (VIII) Loss from major accidents 35 (IX) Materiality after the period 35 Item Page (X) Miscellaneous 35 ~ 39 (XI) Supplementary Disclosure 40 ~ 53 1. Information on major trade 40 ~ 42 2. Information on direct investment 43 ~ 43 3. Information on investment in Mainland China 51 ~ 53 (XII) Financial Information on Departments 53 Independent Auditor’s Report (97) Tai.Shen.Bao.Tzi No. To: President Chain Store Corporation We have audited the accompanying balance sheet of President Chain Store Corporation and subsidiaries as of March 31, 2008 and 2007 and the related statements of income, retained earnings and cash flows covering the period of January 1 to March 31, 2008 and 2007. 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 review. We conducted our review in accordance with Auditing Standards Communiqué No. 36 “Financial Statements Review” except for the events disclosed in the following paragraph. We have not