總行臺 中 市 西 區 民 權 路 8 7 號 　 電 話 ： 0 4 - 2 2 2 3 6 0 2 1 No.87, Min-Chuan Road, Taichung, Taiwan, R.O.C.

We Do Our Best For You

2013Stock Code:2812

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Printed on recycled paper. Date of publication:March 2014 Website:http://www.tcbbank.com.tw M.O.P.S:http://mops.twse.com.tw

Annual Report

Taichung Commercial Bank

Chairman : Jin-Fong Soo

Taichung Commercial Bank Company LimitedNo. 87, Min Chuan Road, Taichung, Taiwan, R.O.C.Tel.:(04)2223-6021Website:http://www.tcbbank.com.tw

Company SpokesmanName:Jr-Chyuan Fang Job title:Executive Vice PresidentTel.:(04)2223-6021Email:4663@ms2.tcbbank.com.tw

Acting SpokesmanName:Hsueh-Hsien LiaoJob title:Executive Vice PresidentTel.:(04)2223-6021Email:lsn@ms2.tcbbank.com.tw

Shares RegistrarName:by internal functionAddress:11F., No. 50, Sec. 1, XinSheng South Road, ZhongZheng District, Taipei, Taiwan, R.O.C.Website:http://www.tcbbank.com.twTel.:(02)2395-7388

Credit Rating AgencyName:Fitch Ratings Limited, Taiwan BranchAddress:Suite 1306, 13F., No. 205, Tun Hwa N. Road, Taipei, Tawian, R.O.C. Tel.:(02)8175-7600

External Auditors in the Most Recent YearName of CPA firm:Deloitte & ToucheName of CPA:Min-Xian Yang & Tzu-Chun WangAddress:12F., No. 156, MinSheng East Road, Sec. 3, Song Shan District, Taipei, Taiwan, R.O.C.Website:http://www.deloitte.com.twTel.:(02)2545-9988

Name of any exchanges where the Company's securities are traded overseas, and the method by which to access information on said offshore securities : None

Table of Contents I. LETTER TO SHAREHOLDERS ................................................................................................ 1

II. A PROFILE OF TAICHUNG BANK ......................................................................................... 7

III. CORPORATE GOVERNANCE REPORT ................................................................................ 9

A. ORGANIZATION ................................................................................................................................ 9

B. PROFILES OF DIRECTORS, SUPERVISORS, PRESIDENT, EXECUTIVE VICE PRESIDENTS, ASST. VP,

AND SUPERVISORS OF THE VARIOUS DEPARTMENTS AND BRANCHES ............................................... 12

C. STATUS OF CORPORATE GOVERNANCE ........................................................................................... 44

D. DISCLOSURE OF THE ACCOUNTANT’S FEE ....................................................................................... 70

E. CHANGES OF ACCOUNTANTS .......................................................................................................... 71

F. DISCLOSE THE NAMES AND JOB TITLE OF THE CHAIRMAN, PRESIDENT, FINANCIAL AND ACCOUNTING

MANAGER OF THE BANK WHO HAS WORKED WITH THE CPA FIRM WHO CONDUCTS THE AUDIT OF THE

BANK OR THE AFFILIATES TO SUCH FIRMS IN THE MOST RECENT ONE YEAR, AND THE DURATION OF

THEIR EMPLOYMENT IN THE CPA FIRM AND ITS AFFILIATE. ............................................................. 71

G. CHANGES IN SHAREHOLDINGS BY DIRECTORS, SUPERVISORS, AND MANAGERS THROUGH TRANSFER

AND PLEDGED UNDER LIEN AND THOSE REQUIRED TO BE DECLARED PURSUANT TO ARTICLE 25-3 OF

THE BANKING ACT FROM THE RECENT YEAR UNTIL THE DATE THE ANNUAL REPORT WAS PRINTED. 71

H. THE TOP 10 SHAREHOLDERS BY PROPORTION OF SHAREHOLDING AND INFORMATION ON THEIR

AFFILIATIONS. ................................................................................................................................. 77

I. QUANTITY OF SHAREHOLDINGS OF THE SAME INVESTEE BY THE BANK AND DIRECTORS,

SUPERVISORS, PRESIDENTS, EXECUTIVE VICE PRESIDENTS, ASST. EXECUTIVE VICE PRESIDENTS,

SUPERVISORS OF THE VARIOUS DEPARTMENTS AND BRANCHES, AND DIRECT OR INDIRECT

SUBSIDIARIES IN PROPORTION TO THE COMBINED HOLDINGS OF ALL ............................................... 79

IV. STATUS OF CAPITAL PLANNING ........................................................................................ 80

A. SHARES AND DIVIDENDS ................................................................................................................ 80

B. ISSUANCE OF FINANCIAL BONDS .................................................................................................... 85

C. ISSUANCE OF PREFERRED STOCKS. ................................................................................................. 96

D. ISSUANCE OF OVERSEAS DEPOSITORY RECEIPTS ............................................................................ 96

E. EMPLOYEE STOCK OPTIONS ........................................................................................................... 96

F. ACQUISITION OR ASSIGNMENT OF OTHER FINANCIAL INSTITUTIONS. ............................................ 96

G. IMPLEMENTATION OF FUND UTILIZATION PLAN .............................................................................. 96

V. OPERATION PROFILE ............................................................................................................ 99

A. BUSINESS CONTENTS ...................................................................................................................... 99

B. EMPLOYEES .................................................................................................................................. 114

C. ENTERPRISE RESPONSIBILITIES AND ETHICAL BEHAVIOR ............................................................ 119

1

I. Letter to Shareholders

A. Operating performance in 2013

a. Domestic and foreign financial environment

International economic performance remained stable in 2013 along with the alleviation of

the U.S. financial problems, the gradual recovery from recession of EURO community, and

the improvement of global economy. Observing the situation of the major economies at the

end of 2013, the strength of the U.S. economic growth strengthened, the EURO community

index bounced back from the bottom, “Abenomics” of Japan stimulated the economy

effectively, and China’s economic restructuring started showing good results to activate the

positive development of global economy and the domestic economic upturn.

Directorate-General of Budget, Accounting and Statistics, Executive Yuan, R.O.C. (Taiwan)

predicts our economic growth to reach 2.82% in 2014.

b. Changes to the organization

1. “Taichung Commercial Bank Securities Co., Ltd.” is setup for the operation of

securities business and with 100% shareholding held directly by the Bank to expand

the scope of operations through cross-marketing and to exercise co-promotion for

operating synergies.

2. The Division of Compliance was setup in 2013 to establish a well-defined and

appropriate a law and regulation conveying, consultation, coordination, and

communication system. The “Regulatory of Compliance Department” was setup in

January 2014 to substantiate the execution of law and regulations compliance system.

3. Adjust the delinquent account collection function of each original district center. The

overdue loan is to be coordinated and handled by the Dept. of Debt Collection and

Asset Recovery in order to simplify the collection of the delinquent account process

and to exercise the effect of a centralized operation. The “Division of Precaution” is

established under the Dept. of Debt Collection and Asset Recovery to execute the

precautionary process of loan operations and to exercise the credit risk control

mechanism.

c. Implementation results of business plans and strategies

1. Although domestic economic growth indicator had been adjusted down several times

in 2013, the Bank’s overall business development and performance was as outstanding

as the year of 2012 with the operating performance achieved, including 12% growth of

deposit and loan in the scale of operation, 17% growth of foreign exchange business

volume, 26% growth of wealth management service fee income, and 28% growth of

net income.

D. IT EQUIPMENT .............................................................................................................................. 119

E. LABOR-MANAGEMENT RELATIONS .............................................................................................. 121

F. MAJOR AGREEMENTS

G. SECURITIZED PRODUCTS AND RELATED INFORMATION ................................................................. 123

VI. FINANCIAL STATUS .............................................................................................................. 124

A. THE CONSOLIDATED BALANCE SHEET AND COMPREHENSIVE INCOME STATEMENT WITHIN THE LAST

YEARS - INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) ......................................... 124

B. BALANCE SHEET AND INCOME STATEMENT FROM THE MOST RECENT YEARS – R.O.C. GAAP ..... 127

C. FINANCIAL ANALYSIS FOR THE MOST RECENT YEARS ................................................................... 130

D. SUPERVISORS’ REVIEW REPORT ON THE FINANCIAL STATEMENT OF 2013 ................................... 142

E. CONSOLIDATED FINANCIAL STATEMENTS 2013 ............................................................................ 142

F. FINANCIAL STATEMENTS 2013 ..................................................................................................... 142

G. IN THE CASE OF ANY INSOLVENCY OF THE BANK AND ITS AFFILIATES, SPECIFY ITS EFFECT ON THE

FINANCIAL STATUS OF THE BANK ................................................................................................ 142

VII. REVIEW AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS; RISK

MANAGEMENT MATTERS .................................................................................................. 143

A. FINANCIAL ANALYSIS ................................................................................................................... 143

B. OPERATION RESULT ANALYSIS ..................................................................................................... 145

C. CASH FLOWS ................................................................................................................................. 146

D. THE MATERIAL EFFECT ON FINANCIAL STRUCTURE FROM SUBSTANTIAL CAPITAL EXPENDITURE IN

THE LAST FEW YEARS .................................................................................................................... 147

E. DIRECT INVESTMENT POLICY, THE MAIN REASONS FOR PROFIT OR LOSS, AND CORRECTIVE

ACTION PLAN IN THE MOST RECENT YEAR, AND INVESTMENT PLAN IN THE NEXT YEAR ................. 149

F. RISK MANAGEMENT ..................................................................................................................... 150

G. CRISIS MANAGEMENT MECHANISM ............................................................................................... 163

H. THE FOLLOWING METHODS AND HYPOTHESES FOR THE VALUATION OF FAIR VALUE OF FINANCIAL

INSTRUMENTS ARE APPLIED .......................................................................................................... 163

I. OTHER IMPORTANT NOTES ............................................................................................................ 165

VIII. SPECIAL NOTES ..................................................................................................................... 166

A. SPECIAL NOTES ............................................................................................................................ 166

B. CONDITIONS THAT WILL MATERIALLY AFFECT SHAREHOLDERS’ EQUITY OR PRICE OF SECURITIES

..................................................................................................................................................... 176

C. MATERIAL INTERNAL INFORMATION OPERATING PROCEDURE OF THE COMPANY ........................... 176

IX. BRANCHES OF TAICHUNG COMMERCIAL BANK AT A GLANCE .......................... 177

....................................................................................................................

1

I. Letter to Shareholders

A. Operating performance in 2013

a. Domestic and foreign financial environment

International economic performance remained stable in 2013 along with the alleviation of

the U.S. financial problems, the gradual recovery from recession of EURO community, and

the improvement of global economy. Observing the situation of the major economies at the

end of 2013, the strength of the U.S. economic growth strengthened, the EURO community

index bounced back from the bottom, “Abenomics” of Japan stimulated the economy

effectively, and China’s economic restructuring started showing good results to activate the

positive development of global economy and the domestic economic upturn.

Directorate-General of Budget, Accounting and Statistics, Executive Yuan, R.O.C. (Taiwan)

predicts our economic growth to reach 2.82% in 2014.

b. Changes to the organization

1. “Taichung Commercial Bank Securities Co., Ltd.” is setup for the operation of

securities business and with 100% shareholding held directly by the Bank to expand

the scope of operations through cross-marketing and to exercise co-promotion for

operating synergies.

2. The Division of Compliance was setup in 2013 to establish a well-defined and

appropriate a law and regulation conveying, consultation, coordination, and

communication system. The “Regulatory of Compliance Department” was setup in

January 2014 to substantiate the execution of law and regulations compliance system.

3. Adjust the delinquent account collection function of each original district center. The

overdue loan is to be coordinated and handled by the Dept. of Debt Collection and

Asset Recovery in order to simplify the collection of the delinquent account process

and to exercise the effect of a centralized operation. The “Division of Precaution” is

established under the Dept. of Debt Collection and Asset Recovery to execute the

precautionary process of loan operations and to exercise the credit risk control

mechanism.

c. Implementation results of business plans and strategies

1. Although domestic economic growth indicator had been adjusted down several times

in 2013, the Bank’s overall business development and performance was as outstanding

as the year of 2012 with the operating performance achieved, including 12% growth of

deposit and loan in the scale of operation, 17% growth of foreign exchange business

volume, 26% growth of wealth management service fee income, and 28% growth of

net income.

1

3

e. Financial income and expenditure, and profitability analysis:

1. The earnings before taxation in 2013 amounted to NTD 3.537 billion, which was an

increase of 5.38% from the same period of 2012. Corporate earnings in the same period

amounted to NTD 3.060 billion, which was an increase of 9.13% from the same period

of 2012.

2. KPI: Key Performance Indicator

Indicators 2013

Capital adequacy ratio (BIS) 11.91

Return on Assets (ROA) 0.65

Return on Equity (ROE) 10.38

Earnings Per Share (EPS) NTD1.23

NPL ratio 0.58

Coverage ratio 209.71

3. Information about the most recent credit rating

Rating agency Date of ratingCredit rating

Long-term Short-term Outlook

Fitch Ratings Limited Taiwan

Branch 2013.10.7 A-(twn) F2(twn) Negative

f. Research and development status

1. Substantiate the well management of client’s assets, strengthen personal information

management system, introduce the “BS10012: 2009 Personal Information

Management System (PIMS)” international standard operation, and promote

information security technology for international connection.

2. Add an integrated “credit precautionary mechanism” system check function, work

with the credit precautionary account classification mechanism, substantiate the

initiative pre-assessment management, take immediate relative measures, and exercise

precautionary mechanism to reduce credit risk.

3. For enhancing the operating efficiency of the job processing center, update the “notes

collection system” to integrate the coherent treatment of management and billing,

enhance the active management capabilities and strengthen compliance with

information security standards in order to dramatically reduce operational risk.

4. Optimize the “credit investigation management system” to shorten the operating

procedures in order to accelerate the credit review timeliness and improve the

information supplementary tool processing efficacy.

2

2. The bank was performed exceedingly well in “SME finance” and “Regional finance”

and was rated by the Financial Supervisory Commission(FSC) as the top-performing

bank in “Strengthening of SME Loans by Domestic Banks(8th Term)” and ranked in

the first place of the special award for balanced regional development in Central

Taiwan.

3. Committed to the development of “diversified finance” enterprise value. After sixty

years of operation, the Bank has invested to have “Taichung Commercial

Bank Leasing (Suzhou) Co., Ltd.” and “Taichung Commercial Bank Securities

Co., Ltd.” established to construct an overall financial organization, branch out into

the Greater China market, and root the foundation for a sustainable operation.

4. For enhancing resilience in response to adverse economy and substantiating risk-based

loan management, strengthen the Bank’s Tier I loan assets ratio, lower NPL ratio, and

improve the Capital Adequacy ratio in accordance with the supervision standards of

the “Regulations Governing the Enhancement of Domestic Bank Loan Risk” of the

government.

5. Compete to deploy the ninth branch in Taipei Metropolitan with the use and

adjustment of the existing channel. The “Fuxing Branch” is established in Taipei that

helps add one more business station in northern Taiwan.

6. Construct the “second generation E-commerce” system, enhance personal convenient

e-financial services and corporate cash flow management, and arrange credit card

business and mobile banking APP software online service in accordance with the

concept of product innovation, in which, the mobile banking allows customers to

access to online banking account, credit card, and investment and wealth management

services by Smartphone or tablet PC in order to closely link with customer’s lifestyles

and create business value.

d. Budget execution in 2013

1. The average deposit balance (including foreign currency) amounted to NTD 427.464

billion. The budget achievement rate was 101.51%, representing 11.92% growth from

the NTD 381.938 billion in 2012.

2. The average deposit balance (including foreign currency) amounted to NTD 362.926

billion. The budget achievement rate was 101.75%, representing 13.21% growth from

the NTD 320.567 billion in 2012.

3. Foreign exchange amounted to US$12.309 billion. The budget achievement rate was

109.58%, representing 17.21% growth from the US$10.502 billion in 2012.

4. Wealth management service fees amounted to NTD 0.819 billion, representing 26.58%

growth from the NTD 0.647 billion in 2012.

2

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e. Financial income and expenditure, and profitability analysis:

1. The earnings before taxation in 2013 amounted to NTD 3.537 billion, which was an

increase of 5.38% from the same period of 2012. Corporate earnings in the same period

amounted to NTD 3.060 billion, which was an increase of 9.13% from the same period

of 2012.

2. KPI: Key Performance Indicator

Indicators 2013

Capital adequacy ratio (BIS) 11.91

Return on Assets (ROA) 0.65

Return on Equity (ROE) 10.38

Earnings Per Share (EPS) NTD1.23

NPL ratio 0.58

Coverage ratio 209.71

3. Information about the most recent credit rating

Rating agency Date of ratingCredit rating

Long-term Short-term Outlook

Fitch Ratings Limited Taiwan

Branch 2013.10.7 A-(twn) F2(twn) Negative

f. Research and development status

1. Substantiate the well management of client’s assets, strengthen personal information

management system, introduce the “BS10012: 2009 Personal Information

Management System (PIMS)” international standard operation, and promote

information security technology for international connection.

2. Add an integrated “credit precautionary mechanism” system check function, work

with the credit precautionary account classification mechanism, substantiate the

initiative pre-assessment management, take immediate relative measures, and exercise

precautionary mechanism to reduce credit risk.

3. For enhancing the operating efficiency of the job processing center, update the “notes

collection system” to integrate the coherent treatment of management and billing,

enhance the active management capabilities and strengthen compliance with

information security standards in order to dramatically reduce operational risk.

4. Optimize the “credit investigation management system” to shorten the operating

procedures in order to accelerate the credit review timeliness and improve the

information supplementary tool processing efficacy.

3

5

industry in Taiwan. In this regard, the Bank will expand the scope of cross-strait exchange business and enhance the extent of financial internationalization. The business development and profitability of the Bank within the year is promising.

C. Development strategies In response to the challenge of facing a severe and constantly changing financial environment, the mid-term and long-term development is based on the principle of “steady volume and increasing profit” and “stable growth,” and implement the business strategies of “structural adjustment,” “interest spreads increase,” “cash flows,” and “revenue increase” to maintain a sound business development and gradually expand the scale of operations domestically and internationally. a. Adjust the source of earnings structure and improve the reasonable level of deposit and

loan interest spreads. b. Ensure stable growth of operation in scale and optimize the quality of credit asset. c. Enhance asset and liability management and enhance risk management and control

ability. d. Improve the capital adequacy ratio and expand credit assets coverage ratio. e. Secure SMEs financial advantage and expand the scope of business. f. Enhance the functionality of electronic financial products and plan cross-border

business platform. g. Actively promote the parent company and subsidiary integrated marketing and enhance

operating synergy. h. Follow in the footsteps of Taiwan investors and strengthen the overseas market

deployment and territory. i. Demonstrate dedications and devotions and pursue excellent service and charity. j. Construct a comprehensive compliance system and create a good corporate image.

D. Highlights of business operation plans for 2014

Adjusting business structure and qualitative and quantitative profit model, substantiating capital structure and risk management mechanism, and developing E-commerce and expanding the scale of foreign exchange operation are the three primary objectives. Operational policies as follows: a. Diversify the development of new money flow channels, stably enhance demand

deposit ratio, enrich foreign exchange working capital, and expand the scale of foreign exchange business.

b. Substantiate credit policies and pricing strategies, maintain the scale of loans with “steady volume and increasing profit,” emphasize sound banking supervision data and credit indicators balanced development, and ensure the quality of loan assets.

c. Observe the relaxation of cross-industry marketing specifications by the competent authorities, exercise the existing advantages of the organization, enhance the integrated marketing of the parent company and subsidiary and develop wealth management business, root reinvestment business and product operating synergies, realized the “We

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B. Impact of the external competitive environment, regulatory environment, and macroeconomic

environment a. External competitive environment

Financial environment is constantly under the pressure of competition. The problems of low interest spreads and profitability structure are also frequently experienced. With the continuous relaxation of cross-strait cooperation and domestic financial deregulation, the question is how to maintain a sound operation and financial structure, and reduce duplication of resources deployment and exercise organizational efficiency in order to readily adjust the operational direction in response to the rapidly changing financial environment. With the Economic Cooperation Framework Agreement (ECFA) and Cross-Strait Service Trade Agreement signed by Taiwan and China, and the commitments made by China that are broader than the scope defined by the World Trade Organization (WTO), it will help the Bank handle RMB business and provide more quality financial services to SMEs Taiwan businessmen in China. In addition, our government has relaxed the business scope of financial institutions to provide financial services to the non-resident and the professional investors. The Bank will integrate the structure and development of RMB instruments and create new engine of profitability for developing the Bank’s wealth and assets management business.

b. Regulatory environment 1. In response to the implementation of Personal Information Protection Law and its

enforcement rules, establish a personal information management system, substantiate the protection of privacy in the working process, and demonstrate the determination for good faith management and customer interest protection.

2. In order to protect the interests of consumers, comply with financial consumer protection law, and substantiate the Bank’s “consumer protection policy” for having financial consumption disputes resolved fairly, reasonably, and effectively, the standard contract terms are set based on the principle of equality, reciprocation, and good faith in order to improve consumer’s confidence in the Bank and promote the sound development of the financial market.

3. Set the “Guidelines for Handling Internal Material Information” to establish the Bank’s excellent internal information handling and disclosure mechanisms, and ensure the consistency and correctness of the information released to the public.

c. Macroeconomic environment 1. Despite the global economic recovery back on track, we should move cautiously. The

monetary policy of the United States that is the world leader, the fiscal reformation measures of Japan, and the subsequent success of China’s economic policies will affect the economic performance of the world and Taiwan.

2. The establishment of cross-strait currency settlement mechanism and the initiation of various RMB business is not only a significant progress in the history of the cross-strait communication but also brings new business opportunities to the financial

4

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industry in Taiwan. In this regard, the Bank will expand the scope of cross-strait exchange business and enhance the extent of financial internationalization. The business development and profitability of the Bank within the year is promising.

C. Development strategies In response to the challenge of facing a severe and constantly changing financial environment, the mid-term and long-term development is based on the principle of “steady volume and increasing profit” and “stable growth,” and implement the business strategies of “structural adjustment,” “interest spreads increase,” “cash flows,” and “revenue increase” to maintain a sound business development and gradually expand the scale of operations domestically and internationally. a. Adjust the source of earnings structure and improve the reasonable level of deposit and

loan interest spreads. b. Ensure stable growth of operation in scale and optimize the quality of credit asset. c. Enhance asset and liability management and enhance risk management and control

ability. d. Improve the capital adequacy ratio and expand credit assets coverage ratio. e. Secure SMEs financial advantage and expand the scope of business. f. Enhance the functionality of electronic financial products and plan cross-border

business platform. g. Actively promote the parent company and subsidiary integrated marketing and enhance

operating synergy. h. Follow in the footsteps of Taiwan investors and strengthen the overseas market

deployment and territory. i. Demonstrate dedications and devotions and pursue excellent service and charity. j. Construct a comprehensive compliance system and create a good corporate image.

D. Highlights of business operation plans for 2014

Adjusting business structure and qualitative and quantitative profit model, substantiating capital structure and risk management mechanism, and developing E-commerce and expanding the scale of foreign exchange operation are the three primary objectives. Operational policies as follows: a. Diversify the development of new money flow channels, stably enhance demand

deposit ratio, enrich foreign exchange working capital, and expand the scale of foreign exchange business.

b. Substantiate credit policies and pricing strategies, maintain the scale of loans with “steady volume and increasing profit,” emphasize sound banking supervision data and credit indicators balanced development, and ensure the quality of loan assets.

c. Observe the relaxation of cross-industry marketing specifications by the competent authorities, exercise the existing advantages of the organization, enhance the integrated marketing of the parent company and subsidiary and develop wealth management business, root reinvestment business and product operating synergies, realized the “We

5

7

II. A profile of Taichung Bank: Formerly a cooperative savings company in Taichung established in April 1953, the

predecessor of Taichung Bank started its operation in savings and loans in August 1st of the same year. The scope of business then covered Taichung City, Taichung County, Chang Hwa County and Nantou County. The Bank has reorganized as “Taichung Small and Medium Business Bank” in 1978 in responding to the promulgation of the Banking Act and business development needs. On May 15, 1984, the Bank went public and expanded its scale of operations, and has successfully been listed on the centralized market.

In September 1995, the Taipei Branch was established with business covering different districts, which set a new milestone of the operation of the Bank. The Bank continued to relocate its branches, which were previously located in central Taiwan, to northern and southern Taiwan. After this process of expansion, the Bank has banking locations across western Taiwan. With the effort of all, the Bank prospered in business, and has officially reorganized as “Taichung Business Bank” on December 9 1998. Since then, the Bank has emerged as a national commercial bank. The Company awarded by the Financial Supervisory Commission in April 2013 as the “Class A Outstanding Bank” for loans to SMEs. The Fuxing Branch was established in September 2013, which was the ninth business station in Taipei Metropolitan. Fuxing Branch operates in Taipei City, the economic hub of Taiwan that helps make the financial core services market even more comprehensive and improve the operational value of channels.

The capital of the Bank has increased from NTD 500,000 at its initial stage of operation to NTD 25.345 billion as of December 31 2013. The Bank also expanded to 80 branches and 1 OBU from 5 branches at the time of its establishment. After sixty years of dedication to the business operation, “Taichung Commercial Bank Consolidated Securities Co., Ltd.,” and “Taichung Commercial Bank Finance Lease (Suzhou) Co., Ltd.” were invested and established in 2013 to work with “Taichung Commercial Bank Lease Enterprise,” “Taichung Commercial Bank Insurance Broker Co., Ltd.,” and “Reliance Securities Investment Trust Co., Ltd.,” to construct the quasi-holding organizational structure, refine the Bank’s competitive advantages of “local finance,” “SMEs finance,” and “diversified finance,” realize the mission of sustainable operation, and to achieve the extension of overseas deployment and territory. The scope and volume of business of the Bank multiplied over the years. The variety and size of the operation far exceeded that at the time of its establishment as a cooperative saving company. The achievement was the feedback of the whole-hearted operation of the Bank. The growth and the excellence in operation of Taichung Commercial Bank have been witnessed by the public.

Massive transactions or changes in equity shares by Directors, Supervisors, or shareholders holding more than 1% of the total outstanding shares in the most recent year: None. Changes in the management in the most recent year: None. Major events affecting the rights and privileges of the investors and the effect on the Bank:

None. Reinvested affiliate: Taichung Commercial Bank Insurance Broker Co., Ltd., Reliance

6

do our best to manage” and fulfill the multi-faceted asset allocation demand of customers.

d. Uphold the stability and flexibility of the financial operation, pursue maximize efficiency of the fund utilization, and enhance the overall investment operating efficiency.

e. Construct the “second generation E-commerce” system platform in accordance with the “corporate banking” “personal banking” and “e-ATM” service demand model and plan to connect corporate money flow management and comprehensive collection system for enhancing the advantage of online banking channel.

f. Expected business objectives Scope of business Objective by the end of 2014

Deposits (including foreign currencies) Average balance amounted to NTD

445.044 billion.

Lending (including foreign currencies) Average balance amounted to NTD

377.94 billion. Foreign Exchanges Operations Annual amount USD12.72 billion

Trust Operations The average balance of trust assets

amounted to NTD 38.7 billion After sixty years of dedication to the business operation, in the year of 2013 that is the turning

point of diversified operation, in addition to “Taichung Commercial Bank Insurance Broker Co., Ltd.” and “Reliance Securities Co., Ltd.,” were also invested and established “Taichung Commercial Bank Securities Co., Ltd.,” “Taichung Commercial Bank Lease Enterprise,” and “Taichung Commercial Bank Leasing (Suzhou) Co., Ltd.” ,to construct the quasi-holding organizational structure and achieve the extension of overseas deployment and territory. In the future, the Bank will continue to grow steadily and realize a triple-win situation for shareholders, employees, and customers; also, will strive to achieve the vision of becoming a regional bank in the Greater China market.

Best regards, To All Shareholders

May I wish you all good health and good luck.

President Chairman

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II. A profile of Taichung Bank: Formerly a cooperative savings company in Taichung established in April 1953, the

predecessor of Taichung Bank started its operation in savings and loans in August 1st of the same year. The scope of business then covered Taichung City, Taichung County, Chang Hwa County and Nantou County. The Bank has reorganized as “Taichung Small and Medium Business Bank” in 1978 in responding to the promulgation of the Banking Act and business development needs. On May 15, 1984, the Bank went public and expanded its scale of operations, and has successfully been listed on the centralized market.

In September 1995, the Taipei Branch was established with business covering different districts, which set a new milestone of the operation of the Bank. The Bank continued to relocate its branches, which were previously located in central Taiwan, to northern and southern Taiwan. After this process of expansion, the Bank has banking locations across western Taiwan. With the effort of all, the Bank prospered in business, and has officially reorganized as “Taichung Business Bank” on December 9 1998. Since then, the Bank has emerged as a national commercial bank. The Company awarded by the Financial Supervisory Commission in April 2013 as the “Class A Outstanding Bank” for loans to SMEs. The Fuxing Branch was established in September 2013, which was the ninth business station in Taipei Metropolitan. Fuxing Branch operates in Taipei City, the economic hub of Taiwan that helps make the financial core services market even more comprehensive and improve the operational value of channels.

The capital of the Bank has increased from NTD 500,000 at its initial stage of operation to NTD 25.345 billion as of December 31 2013. The Bank also expanded to 80 branches and 1 OBU from 5 branches at the time of its establishment. After sixty years of dedication to the business operation, “Taichung Commercial Bank Consolidated Securities Co., Ltd.,” and “Taichung Commercial Bank Finance Lease (Suzhou) Co., Ltd.” were invested and established in 2013 to work with “Taichung Commercial Bank Lease Enterprise,” “Taichung Commercial Bank Insurance Broker Co., Ltd.,” and “Reliance Securities Investment Trust Co., Ltd.,” to construct the quasi-holding organizational structure, refine the Bank’s competitive advantages of “local finance,” “SMEs finance,” and “diversified finance,” realize the mission of sustainable operation, and to achieve the extension of overseas deployment and territory. The scope and volume of business of the Bank multiplied over the years. The variety and size of the operation far exceeded that at the time of its establishment as a cooperative saving company. The achievement was the feedback of the whole-hearted operation of the Bank. The growth and the excellence in operation of Taichung Commercial Bank have been witnessed by the public.

Massive transactions or changes in equity shares by Directors, Supervisors, or shareholders holding more than 1% of the total outstanding shares in the most recent year: None. Changes in the management in the most recent year: None. Major events affecting the rights and privileges of the investors and the effect on the Bank:

None. Reinvested affiliate: Taichung Commercial Bank Insurance Broker Co., Ltd., Reliance

7

8

Securities Investment Trust Co., Ltd., Taichung Commercial Bank Lease Enterprise, and Taichung Commercial Bank Securities Co., Ltd.

8

9

III. Corporate Governance Report A. Organization a. Organizational Structure

Risk M

anagement C

omm

ittee

Rem

uneration Com

mittee

NPL M

anagement C

omm

ittee

Financial Products Review

Com

mittee

Investment C

omm

ittee

Personal Evaluation Com

mittee

Loan Supervision Com

mittee

Trust Assess A

ssessment C

omm

ittee

Asset and Liability M

anagement

Com

mittee

Business Development Dept

International Banking Dept

Trust Dept.

Information Dept.

Risk Management Dept.

Treasury Dept.

General Affairs Dept.

Human Resource Dept.

Accounting Dept.

Corporate Finance Dept.

Wealth Management Dept.

Department of Debt Collection and Asset

Recovery

Regulatory of Compliance Dept.

Loan Administration Dept,

Shareholder's Meeting

Board of D

irectors

Executive Vice Presidents

Chairm

an

Vice C

hairman

President

Board of M

anaging D

irectors

Assistant V

P

Supervisor's meeting

Supervisor Resident

Audit Office of the Board

Office of the Board of Directors

Chief A

uditor

District Center

Business units (include B

usiness Dept.), O

BU

9

11

and promotion, supervision and management of wealth management customers’ investment in the financial planning business.

14. Loan Administration Dept.: Administer the planning, review, management, research, analysis and consultation service of the various credit extensions, investigations and consumer banking.

15. Dept. of Debt Collection and Asset Recovery: Administer the precautionary and review after granting loan, and planning, executing, supervision and statistic analysis of the collection of delinquent accounts, performance appraisal of the collection, review of writing off non-performing loans, examination and management of Collaterals Assumed, participation and cooperation in the process of resolving legal issues, retaining of external attorneys-at-law.

16. Regulatory of Compliance Dept.: Handle the drafting, promotion, supervision, and performance appraisal of the compliance system; maintain an effective and adequate internal control system; confirm the Bank’s operations and management rules are updated in accordance with the relevant laws and regulations in a timely manner. When the business units in executing business operation or daily transactions are in doubt, the Regulatory of Compliance Department is the inquiry and communication window of the Bank to give interpretations and to provide the personnel of each unit with appropriate and expedient regulatory training.

17. Business Dept.: Administer the operation of different types of deposits, loans, foreign exchange settlements and banking matters.

18. District Center: administer the lending (except consumer loans, cash card, and credit card), review and approval of foreign exchange financing, banking supervision.

19. Offshore Banking Branch: Administer the planning, promotion, management and operation of international banking.

10

b. Operations & Functions 1. Auditing Office of Board: Administer the general auditing of the Bank, including

operation audit, computer information audit, internal self-audit, internal audit, corrective actions as per the requests of competent authority, and related reporting.

2. Office of the Board of Directors: Call for sessions and elections of the Standing Committee of the Board, the Board of Directors and Supervisors, General Meeting of the Shareholders, shares registration and related matters, public relations, press release.

3. Business Development Dept.: Administer the study and development of the operational strategies and the overall business development plan, the planning and development of the deposits and remittances, e-banking and credit card business, and customer telephone service, phone collection, marketing, and customer relationship management.

4. International Banking Dept.: Administer the planning, promotion, management and operation of foreign exchanges.

5. Trust Dept.: Administer the planning, management and operation of trust business. 6. Information Dept.: Administer the planning, configuration and operation of IT system

and banking information package software. 7. Risk Management Dept.: Administer the draft of the Bank’s overall risk management

policies, the planning of risk strategies and risk control mechanism, the monitoring and control of the business risk exposures and other risk management related matters.

8. Treasury Dept.: Administer the appropriation of funds and investments of the whole bank and other financial matters.

9. General Affairs Dept.: Administer the articles of incorporation, organization, important documents and corporate seals, business affairs, cashier service, general purchase, custody of assets, procurement and lease of real properties, improvement and repair of properties, and labor safety & health issues, security protection drill and management and supervision, property insurance, and any matters other than those administered by the other departments/offices.

10. Human Resources Dept.: Administer human resources management and review, and employee welfare, and also administer employee continuing education and training, library management, and publication and printing of journals.

11. Accounting Dept.: Administer accounting affairs, management accounting, annual budget settlement, and inter-branch transactions.

12. Corporate Finance Department: administer the planning, formulation, supervision and assessment of the all forms of corporate financing, account receivables, syndicated loans, and financing of Taiwan enterprises in overseas investment.

13. Wealth Management Dept.: Administer the planning and execution of the financial planning businesses throughout the nation, management of financial planning staff, preparation and revision of the wealth management policy and operating procedure,

10

11

and promotion, supervision and management of wealth management customers’ investment in the financial planning business.

14. Loan Administration Dept.: Administer the planning, review, management, research, analysis and consultation service of the various credit extensions, investigations and consumer banking.

15. Dept. of Debt Collection and Asset Recovery: Administer the precautionary and review after granting loan, and planning, executing, supervision and statistic analysis of the collection of delinquent accounts, performance appraisal of the collection, review of writing off non-performing loans, examination and management of Collaterals Assumed, participation and cooperation in the process of resolving legal issues, retaining of external attorneys-at-law.

16. Regulatory of Compliance Dept.: Handle the drafting, promotion, supervision, and performance appraisal of the compliance system; maintain an effective and adequate internal control system; confirm the Bank’s operations and management rules are updated in accordance with the relevant laws and regulations in a timely manner. When the business units in executing business operation or daily transactions are in doubt, the Regulatory of Compliance Department is the inquiry and communication window of the Bank to give interpretations and to provide the personnel of each unit with appropriate and expedient regulatory training.

17. Business Dept.: Administer the operation of different types of deposits, loans, foreign exchange settlements and banking matters.

18. District Center: administer the lending (except consumer loans, cash card, and credit card), review and approval of foreign exchange financing, banking supervision.

19. Offshore Banking Branch: Administer the planning, promotion, management and operation of international banking.

11

12

B.

Prof

iles o

f Dire

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.; Ta

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2011

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Dire

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ng

%

Qua

ntity

Rat

io o

f Sh

areh

oldi

ng

%

Qua

ntity

R

atio

of

Shar

ehol

ding

%

Q

uant

ityR

atio

of

Shar

ehol

ding

%

Ti

tleN

ame

Rel

atio

n

(Ind

epen

dent

di

rect

or)

Rep

rese

ntat

ive

Offi

ce; N

atio

nal

Chu

ng H

sing

U

nive

rsity

, D

epar

tmen

t of

Agr

icul

tura

l Ec

onom

ics

Inde

pend

ent

dire

ctor

C

hen-

Le L

iu20

11/6

/22

3 ye

ars

2010

/6/1

50

0 0

0 0

0 0

0

Vice

Gen

eral

M

anag

er o

f C

oope

rativ

e B

ank;

C

hairm

an o

f C

oope

rativ

e B

ank

Insu

ranc

e Age

ncy

Co.

, Ltd

.; D

epar

tmen

t of

Tran

spor

tatio

n an

d C

omm

unic

atio

n M

anag

emen

t Sc

ienc

e, N

CK

U

Non

e N

one

Non

e N

one

Inde

pend

ent

dire

ctor

Ji

n-Y

i Lee

20

11/6

/22

3 ye

ars

2011

/6/2

20

0 0

0 0

0 0

0

Res

pons

ible

pe

rson

of J

P M

orga

n C

hase

in

Chi

na;

Co-

resp

onsi

ble

pers

on o

f BN

P in

A

sia;

CEO

of

Fubo

n B

ank

(Hon

g K

ong)

Lim

ited;

an

d H

arva

rd

Bus

ines

s Sch

ool

CEO

of C

atha

y In

tern

atio

nal

Hol

ding

s Ltd

. N

one

Non

e N

one

Dire

ctor

Pan

Asi

a C

hem

ical

C

orpo

ratio

n R

epre

sent

ativ

e:

Shu-

Yuan

Lin

2014

/2/6

3

year

s 20

02/5

/17

0 0

0 0

0 0

0 0

Insp

ecto

rs a

nd

Ass

ista

nt

Insp

ecto

rs o

f Ta

xatio

n A

dmin

istra

tion,

M

inis

try o

f Fi

nanc

e, R

.O.C

., A

udito

rs, D

ivis

ion

Hea

d, S

enio

r Ex

ecut

ive

Offi

cer,

and

Seni

or A

udito

rof

the

Secu

ritie

s an

d Fu

ture

s B

urea

u, M

inis

try

of F

inan

ce,

R.O

.C.,

Vice

Pre

side

nt o

f A

BN

AM

RO

,

Supe

rvis

or o

f Uni

ted

Inte

grat

ed S

ervi

ces

Co.

, Ltd

. N

one

Non

e N

one

14

15

Title

N

ame

Elec

tion

(App

oint

men

t) D

ate

Dur

atio

n In

augu

ratio

n da

te

Shar

es a

t Ele

ctio

n C

urre

nt sh

areh

oldi

ng

Cur

rent

Sha

res H

eld

by S

pous

e &

D

epen

dent

s

Shar

ehol

ding

und

er th

e tit

le o

f a th

ird p

arty

M

ajor

(aca

dem

ic

degr

ee) e

xper

ienc

eC

urre

nt B

ank

& O

ther

po

sitio

ns

Oth

er C

hief

, Su

perv

isor

s or

Dire

ctor

s with

a

Spou

sal o

r Oth

er

Imm

edia

te R

elat

ive

Qua

ntity

Rat

io o

f Sh

areh

oldi

ng

%

Qua

ntity

Rat

io o

f Sh

areh

oldi

ng

%

Qua

ntity

R

atio

of

Shar

ehol

ding

%

Q

uant

ityR

atio

of

Shar

ehol

ding

%

Ti

tleN

ame

Rel

atio

n

Vice

Pre

side

nt

of P

resi

dent

Se

curit

ies C

orp.

, Se

nior

Vi

ce P

resi

dent

of

Fuh

Hw

a Se

curit

ies

Inve

stm

ent T

rust

C

o., L

td.,

Exec

utiv

e Vi

ce P

resi

dent

of

Cap

ital S

ecur

ities

C

orp.

, Man

agin

g D

irect

or o

f Cap

ital

Secu

ritie

s (H

K) L

imite

d,

Cap

ital F

utur

es

(Hon

g K

ong)

Lim

ited,

an

d C

apita

l Asi

a C

ompa

ny, A

djun

ct

Ass

ista

nt P

rofe

ssor

at T

amka

ng

Uni

vers

ity, a

nd

Chi

ef S

enio

r Vi

ce P

resi

dent

of

Cap

ital S

ecur

ities

C

orp.

Dire

ctor

Pan

Asi

a C

hem

ical

C

orpo

ratio

n R

epre

sent

ativ

e:

Chu

n-Sh

eng

Lee

2011

/6/2

2 3

year

s 20

02/5

/17

190,

500

0.01

51

5,81

2 0.

02

19,4

140.

00

0 0

Vice

Pre

side

nt,

Taiw

an B

usin

ess

Ban

k; In

depe

nden

t D

irect

or o

f Ta

ichu

ng

Com

mer

cial

Ban

k;

MB

A, N

atio

nal

Taiw

an U

nive

rsity

C

olle

ge o

f M

anag

emen

t

Pres

iden

t, Ta

ichu

ng

Com

mer

cial

Ban

k N

one

Non

e N

one

Dire

ctor

Pan

Asi

a C

hem

ical

C

orpo

ratio

n R

epre

sent

ativ

e:

Min

g-Sh

an

Chu

ang

2011

/6/2

2 3

year

s 20

02/5

/17

0 0

0 0

61,7

590.

00

0 0

Dire

ctor

of

ITO

CH

U

CO

RPO

RAT

ION

, Ta

ipei

Bra

nch;

D

epar

tmen

t of

Pol

itica

l Sc

ienc

e, N

atio

nal

Taiw

an U

nive

rsity

Vice

Cha

irman

, Chi

na

Man

-Mad

e Fi

ber

Co.

, Ltd

.; C

hairm

an,

Taic

hung

Com

mer

cial

B

ank

Secu

ritie

s Co.

,Ltd

.;;C

hairm

an, J

e M

i Fan

g C

orpo

ratio

n; V

ice

Cha

irman

, Pan

Asi

a C

hem

ical

Cor

pora

tion

Non

eN

one

Non

e

Dire

ctor

Pa

n A

sia

Che

mic

al

2011

/6/2

2 3

year

s 20

02/5

/17

0 0

0 0

0 0

0 0

Chi

ef

Aud

itor,

Land

Su

perv

isor

of T

aich

ung

Com

mer

cial

N

one

Non

e N

one

15

16

Title

N

ame

Elec

tion

(App

oint

men

t) D

ate

Dur

atio

n In

augu

ratio

n da

te

Shar

es a

t Ele

ctio

n C

urre

nt sh

areh

oldi

ng

Cur

rent

Sha

res H

eld

by S

pous

e &

D

epen

dent

s

Shar

ehol

ding

und

er th

e tit

le o

f a th

ird p

arty

M

ajor

(aca

dem

ic

degr

ee) e

xper

ienc

eC

urre

nt B

ank

& O

ther

po

sitio

ns

Oth

er C

hief

, Su

perv

isor

s or

Dire

ctor

s with

a

Spou

sal o

r Oth

er

Imm

edia

te R

elat

ive

Qua

ntity

Rat

io o

f Sh

areh

oldi

ng

%

Qua

ntity

Rat

io o

f Sh

areh

oldi

ng

%

Qua

ntity

R

atio

of

Shar

ehol

ding

%

Q

uant

ityR

atio

of

Shar

ehol

ding

%

Ti

tleN

ame

Rel

atio

n

Cor

pora

tion

Rep

rese

ntat

ive:

H

sin-

Chi

ng

Cha

ng

Ban

k of

Tai

wan

; M

aste

r in

Land

A

dmin

istra

tion,

N

atio

nal C

hung

H

sing

Uni

vers

ity

Ban

k Le

ase

Ente

rpris

e

Dire

ctor

Cho

u C

hang

C

o., L

td.

Rep

rese

ntat

ive:

W

ei-L

iang

Lin

2012

/6/8

3

year

s 20

11/6

/22

0 0

0 0

0 0

0 0

Pres

iden

t, C

hang

H

wa

Ban

k,

Gra

duat

e fr

om

Tam

kang

U

nive

rsity

Cha

irman

of T

aich

ung

Com

mer

cial

B

ank

Leas

e En

terp

rise

Non

eN

one

Non

e

Dire

ctor

Pan

Asi

a C

hem

ical

C

orpo

ratio

n R

epre

sent

ativ

e:

Men

g-Li

ang

Cha

ng

2012

/10/

1 3

year

s 20

02/5

/17

0 0

0 0

632,

722

0.02

0

0

Rel

ianc

e Se

curit

ies

Inve

stm

ent T

rust

C

o., L

td.,

Gra

duat

e fr

om

Deh

Min

g C

omm

erci

al

Scho

ol, S

peci

al

Ass

ista

nt, C

hina

M

an-M

ade

Fibe

r C

orpo

ratio

n.

Cha

irman

, Chu

n Fu

D

evel

opm

ent C

o., L

td.

Non

eN

one

Non

e

Dire

ctor

I Jou

ng

Inve

stm

ent

Co.

, Ltd

. R

epre

sent

ativ

e:

Chi

ng-H

sin

Cha

ng

2011

/6/2

2 3

year

s 20

08/6

/13

66,5

42

0.00

70

,697

0.

00

0 0

0 0

V.P.

, Tai

chun

g B

usin

ess B

ank;

K

aina

n H

igh

Scho

ol o

f C

omm

erce

and

In

dust

ry, S

enio

r C

lass

, Bus

ines

s

Supe

rvis

or o

f C

haio

-Wu

Co.

, Ltd

. N

one

Non

e N

one

Dire

ctor

Ho

Yang

M

anag

emen

t C

onsu

ltant

C

o., L

td.

Rep

rese

ntat

ive:

C

hia-

Hun

g Li

n

2011

/6/2

2 3

year

s 20

11/6

/22

0 0

0 0

0 0

0 0

Mas

ter o

f Sci

ence

, U

nive

rsity

of

Sout

ham

pton

, UK

Cha

irman

of H

o Fa

C

onst

ruct

ion

Co.

, Ltd

.; C

hairm

an o

f Sak

ura

Con

stru

ctio

n C

o., L

td.;

Supe

rvis

or o

f H

ong-

Wei

Dev

elop

men

t C

o., L

td.

Non

eN

one

Non

e

Inst

itute

Su

perv

isor

Xin

Rui

In

vest

men

t C

o., L

td.

2011

/6/2

2 3

year

s 20

11/6

/22

4,80

0,00

00.

28

8,47

0,80

20.

33

0 0

0 0

- -

- -

-

Inst

itute

Su

perv

isor

Tai J

iunn

En

terp

rise

Co.

, Ltd

. 20

11/6

/22

3 ye

ars

2008

/6/1

373

7,44

9 0.

04

845,

596

0.03

0

0 0

0 -

- -

- -

Supe

rvis

or

Res

iden

t

Xin

Rui

In

vest

men

t C

o., L

td.

Rep

rese

ntat

ive:

Jian

n-El

l Hua

ng

2011

/6/2

2 3

year

s 20

11/6

/22

0 0

0 0

0 0

0 0

Man

ager

of C

hiao

Tu

ng B

ank;

D

epar

tmen

t of

Acc

ount

ing,

N

atio

nal C

hung

H

sing

Uni

vers

ity

Non

e N

one

Non

e N

one

16

17

Title

N

ame

Elec

tion

(App

oint

men

t) D

ate

Dur

atio

n In

augu

ratio

n da

te

Shar

es a

t Ele

ctio

n C

urre

nt sh

areh

oldi

ng

Cur

rent

Sha

res H

eld

by S

pous

e &

D

epen

dent

s

Shar

ehol

ding

und

er th

e tit

le o

f a th

ird p

arty

M

ajor

(aca

dem

ic

degr

ee) e

xper

ienc

eC

urre

nt B

ank

& O

ther

po

sitio

ns

Oth

er C

hief

, Su

perv

isor

s or

Dire

ctor

s with

a

Spou

sal o

r Oth

er

Imm

edia

te R

elat

ive

Qua

ntity

Rat

io o

f Sh

areh

oldi

ng

%

Qua

ntity

Rat

io o

f Sh

areh

oldi

ng

%

Qua

ntity

R

atio

of

Shar

ehol

ding

%

Q

uant

ityR

atio

of

Shar

ehol

ding

%

Ti

tleN

ame

Rel

atio

n

Supe

rvis

or

Xin

Rui

In

vest

men

t C

o., L

td.

Rep

rese

ntat

ive:

Shu-

Li H

uang

2011

/6/2

2 3

year

s 20

11/6

/22

0 0

0 0

0 0

0 0

Man

ager

of

Taiw

an

Coo

pera

tive

Ban

k;

Yu D

a H

igh

Scho

ol o

f C

omm

erce

and

H

ome

Econ

omic

s

Supe

rvis

or o

f Ts

ai-B

ao-M

on C

o., L

td.

Non

eN

one

Non

e

Supe

rvis

or

Xin

Rui

In

vest

men

t C

o., L

td.

Rep

rese

ntat

ive:

Chi

en-H

wa

Lee

Fu

2011

/6/2

2 3

year

s 20

11/6

/22

0 0

0 0

0 0

0 0

Man

ager

of P

acifi

c C

ompu

ters

; Fu

xing

Sen

ior

Hig

h Sc

hool

Non

e N

one

Non

e N

one

Supe

rvis

or

Xin

Rui

In

vest

men

t C

o., L

td.

Rep

rese

ntat

ive:

Chi

ng-H

uang

Ts

ai

2011

/6/2

2 3

year

s 20

11/6

/22

0 0

0 0

0 0

0 0

Vice

Chi

ef

Aud

itor,

Taiw

an

Bus

ines

s Ban

k;

Wen

Sha

n Se

nior

H

igh

Scho

ol

Non

e N

one

Non

e N

one

Supe

rvis

or

Tai J

iunn

En

terp

rise

Co.

, Ltd

. R

epre

sent

ativ

e:C

hao-

Nan

Hsi

eh

2011

/6/2

2 3

year

s 20

08/6

/13

0 0

0 0

0 0

0 0

VP

of C

hang

hua

Ban

k; D

epar

tmen

t of

Eco

nom

ics,

Nat

iona

l Tai

wan

U

nive

rsity

Non

e N

one

Non

e N

one

17

19

Corporate shareholder Name Major Shareholders of Corporate Shareholders:

Tai Yi Investment Co., Ltd.

Pan Asia Investment Co., Ltd. (41.80%), Ta Fa Investment Co., Ltd. (38.17%), Tsung Hao Enterprise Co., Ltd. (9.93%), Kuei-Hsien Wang (6.31%), Sian-Jhang Syu (2.53%), Guei-Lian Jheng (1.26%).

Chung Chien Investment Co., Ltd.

Ta Fa Investment Co., Ltd. (28.08%); Pan Asia Chemical Corporation (17.67%); Chin-Yuan Huang (14.72%); Tung Hao Enterprises Corp. (14.70%); Hsuan Deh Consultants Co., Ltd. (9.76%); Chun Foo Development Co., Ltd. (7.55%); Kuei-Hsien Wang (1.70%); Hsu Tian Investment Co., Ltd. (2.02%), Kuei-Fong Wang (1.55%); Yu Hui Limited (1.47%).

Pan Asia Investment Co., Ltd. Tai Yi Investment Co., Ltd. (47.42%), Ta Fa Investment Co., Ltd. (42.63%), Tsung Hao Enterprise Co., Ltd. (9.44%), Kuei-Hsien Wang (0.51%)

Sheng Jen Knitted Textiles Co., Ltd.

Chung Chien Investment Co., Ltd. Co., Ltd. (93.87%), Chao-Chang Wang (5.57%), Kuei-Hsien Wang (0.25%), Shang-Jr Chiang (0.15%), Shi-Yi Chiang (0.10%), Chao-Ching Wang (0.05%).

Deh Hsing Investment Co., Ltd. China Man-Made Fiber Corporation (100%).

Yu Hui Limited Kuei-Hsien Wang (100%).

Ke Yi Bao Investment Co., Ltd. Yun-Jyun Deng (99.99%).

Pan Asia Employee Welfare Committee Not applicable.

Chou Chin Industrial Co., Ltd.

China Man-Made Fiber Co., Ltd. (45.81%); Ta Fa Investment Co., Ltd. (32.35%), Ching-Chun Kuan (7.4%), Kuei-Hsien Wang (6.00%), Deh Hsing Investment Co., Ltd. (2.45%), Reliance Securities (1.44%), Special adjustment account (1.04%), Nurske County Investment Account at HSBC Taipei Branch (0.64%), Chou Chin Industrial Co., Ltd. treasury stock (0.64%), Chung-Yi Chen (0.40%)

Chou Heui Investment Co., Ltd.

Li-Kai Chuang (21.36%), Hsin-Yi Chuang (13.49%), Chien-Huei Chuang (13.43%), Man-Yen Chuang Chen (12.14%), Teng-Hsin Chuang (8.17%), Lai-Zi Kuo (5.01%)

Ge Ling Co., Ltd.

Chou Chin Industrial Co., Ltd. (89.78%), Chou Chang Co., Ltd. (5.74%), Ching-Long Tu (1.72%), Tsui-Chueh Chan (0.20%), Chiung-Er Wang (0.17%), Shu-Chin Kuo (0.17%), Shu-Yun Hsu Chu (0.12%), Chi-Chien Chan (0.08%), Rong-Li Chen (0.08%), Mei-Keui Lin (0.07%)

GIUM CO., LTD GIUM CO., LTD (100%).

18

2. Major Shareholders of Corporate Shareholders: Feb. 28, 2014

Corporate shareholder Name Major Shareholders of Corporate Shareholders

Pan Asia Chemical

Corporation

China Man-Made Fiber Co., Ltd. (42.89%); Sheng Jen Knitted

Textiles Co., Ltd. (5.99%); Chung Chien Investment Co., Ltd.

(4.95%); Deh Hsing Investment Co., Ltd. (4.53%); Yu

Hui Limited (3.26%); Tai Yi Investment Co., Ltd. (2.28%);

Ya-Ying Jhu (0.73%); Ke Yi Bao Investment Co., Ltd (0.73%); Pan

Asia Investment Co., Ltd. (0.61%); Pan Asia Employee Welfare

Committee (0.60%).

I Joung Investment Co., Ltd.

Yi-Jen Chen (33.17%), Yi-Der Chen (27.77%), Yee-Fan Chen

(12.37%), Ching-Shuan Chen Ting (6.47%), Hsiun-Fan Lo

(5.51%), Yee-Chen Chen (4.7%), Min-Yuan Yeh (0.56%)

Chou Chang Co., Ltd.

Chou Chin Industrial Co., Ltd. (48.24%), Pan Asia Investment

Co., Ltd. (36.39%), Deh Hsing Investment Co., Ltd. (14.78%),

Chou Huei Investment Co., Ltd. (0.25%), Ge Ling Co., Ltd.

(0.19%), Tai Yi Investment Co., Ltd. (0.05%), Hsiun-Ching Hsu

(0.05%), Chung-Yi Chen (0.02%), Chung-Tien Hsu (0.01%),

Yun-Ling Chen (0.01%)

Ho Yang Management

Consultant Co., Ltd. Shu-Cyong Zen (81%), Chen-Hai Lin (19%)

Xin Rui Investment Co., Ltd. You-Ciang Yang (34.8%), Ying-Huei Liou (32.4%), Mei-Jyuan

Syong (26.8%)

Tai Jiunn Enterprise Co., Ltd. Yi-Jen Chen (46.13%), GIUM CO., LTD (42.84%), Ming-Yuan

Yeh (0.69%), Ching-Shuan Chen Ting (0.21%)

3. The major shareholder of the juristic person shareholder is a juristic person Feb. 28, 2014

Corporate shareholder Name Major Shareholders of Corporate Shareholders:

China Man-Made Fiber Co., Ltd.

Pan Asia Chemical Corporation (14.97%), Sheng Jen Knitted