൴֏ˠ Spokesman щ NameĈJames ShihޙؖЩĈ߉ ᖚჍĈઘᓁགྷந TitleĈExecutive Vice President ྖĈ(02)2536-295102)2536-2951)2536-29512536-2951 TelĈ(02) 2536-2951 E-mail [email protected] ̄ฎІܫቐĈ[email protected] Ĉ
Acting Spokesman ந൴֏ˠ NameĈJames Y.G.Chen ؖЩĈౘ̯ซ TitleĈExecutive Vice President ᖚჍĈઘᓁགྷந TelĈ(02) 2536-2951 ྖĈ(02)2536-295102)2536-2951)2536-29512536-2951 E-mailĈ[email protected] ̄ฎІܫቐĈ[email protected] Addresses of Chang Hwa Bank Head Office ᓁҖгӬ Ŝ Taichung: 38,Tsu Yu Rd., Sec. 2,Taichung,Taiwan, R.O.C. Ŝ έ̚Ĉέ̚ᦦҋϤྮ˟߱38ཱི Tel: (04) 2222-2001 ྖĈ(04)2222-2001 Ŝ Taipei: 57, Chung Shan N. Rd., Sec. 2,Taipei,Taiwan, Ŝ έΔĈέΔᦦ̋̚Δྮ˟߱57ཱི R.O.C. ྖĈ(02)2536-2951 Tel: (02) 2536-2951
Web Site: http://www.chb.com.tw ᅙҖშӬĈhttp://www.chb.com.tw Stock Registration Offices of Chang Hwa Bank Ᏹந۵ை࿅͗፟ၹ Ŝ Name: Shareholders' Service Section, Secretariat Division .Ŝ ЩჍĈၓ̼ᅙҖ৪३۵ચࡊ Address: 38,Tsu Yu Rd., Sec. 2,Taichung,Taiwan, R.O.C гӬĈέ̚ᦦҋϤྮ˟߱38ཱི Tel: (04) 2222-2001 ྖĈ(04)2222-2001 Ŝ Name:Taipei Service Center of Shareholders' Service Ŝ ЩჍĈၓ̼ᅙҖ৪३۵ચࡊ Section, Secretariat Division ,ચ͕̚ Address: 57, Chung Shan N. Rd., Sec. 2,Taipei,TaiwanڇāāāέΔ гӬĈέΔᦦ̋̚Δྮ˟߱57ཱི R.O.C. ྖĈ(02)2536-2951 Tel: (02) 2536-2951 შӬĈhttp://www.chb.com.tw Web Site: http://www.chb.com.tw
Credit Rating Agency ܫϡෞඈ፟ၹ Moody's Taiwan Corporation ϡෞඈ۵Њѣࢨ̳ΦܫЩჍĈ᎗࢚ AddressĈRm. 1813, 18F,333, Keelung Rd., Sec 1, 110 333 18 1813 гӬĈέΔᦦ ૄษྮ˘߱ ཱི ሁ ވ Taipei, 110 Taiwan ྖĈ(02) 2757-7125 Tel: 886-2-2757-7125 ็ৌĈ(02) 2757-7129 Fax: 886-2-2757-7129
ᘪᙋົࢍर CPA-auditor of the Financial Report னЇົࢍर Present CPA ؖЩĈችԈேăਃၷᐌ NameĈHung-Hsiang Tsai, Long-Swei Won ࢍरְચٙ CompanyĈDeloitte & ToucheົܫચٙЩჍĈ๔ຽிְ 3߱156ཱི12ሁ AddressĈ12th Floor, Hung-TaiPlaze 156 MinSheng EastྮڌડϔϠ̋ڗгӬĈέΔξ105 Rd., Sec. 3 Taipei 105,Taiwan, R.O.C. ྖĈ(02)2545-9988 TelĈ(02)2545-9988 შӬĈwww.deloitte.com.tw Web SiteĈwww.deloitte.com.tw
݈Їົࢍर Exiting CPA Ї NameĈYen Juanlu,Yu-Jen ChenފؖЩĈ֩ӕ៨ăౘ ચٙЩჍĈᅈົࢍरְચٙ CompanyĈDiwan, Ernst & Youngְ гӬĈέΔξ110ૄษྮ1߱333ཱི9ሁ AddressĈ9th Floor, Keelung Rd., Sec. 1,Taipei 110,Taiwan, ྖĈ(02)2720-4000 R.O.C. შӬĈwww.dey.com.tw TelĈ(02)2720-4000720-4000 Web SiteĈwww.dey.com.twy.com.tw
ಞٙЩჍ̈́ Names of Exchanges Where Overseas Securities Areٽଭൕ෴̝Ϲדঔγѣᆊᙋ Listed and Methods of Inquiry None. ߤྙ͞ёĈĄ Ĉ ANNUAL REPORT 2006 1 ϫāᐂ Contents
ώҖְ̂ࡔ 04 ಡӘ३ڌ۵ 06 ३ځᓏޘטטᅙҖ̰ొଠ 12 16 Ⴞ၅ˠߤ८ಡӘ 18 ᅙҖᖎ̬ நಡӘڼΦ̳ 19 19 ˘ăᅙҖᖐ ăְ̈́Ⴞ၅ˠྤफ़˟ 24 நྻүଐԛڼă̳Φˬ 54 αăົࢍर̳ྤੈ̝೬ᜨăົࢍरՀೱଐԛ̈́ 62 ă۵ᝋតજଐԛ̣ 63 ม̢ࠎᙯܼˠྤफ़ڌă۵ּͧΚ݈˩̂۵̱ 64 ăტЪ۵ּͧ˛ 65 66 ๒ྤଐԛ ă۵Њ̈́۵Ӏ˘ 66 ̚ ൴ҖଐԛדᏉๅܛර 71 ˟ă ϔ 73 ˬăপҾ۵൴Җଐԛ ઼ ˝ 76 αăঔγхጴᙋ൴Җଐԛ ăࣶ̍ᄮ۵ᝋጴᙋᏱநଐԛ̣ 76 ˩ ̣ Ꮙ፟ၹܛឰצᔉٕ׀ѐ 76 ̱ă ą 76 ˛ăྤܛྻϡࢍထેҖଐԛ ѐ ڶಡ 77 ᒉྻໄ 77 ˘ăຽચ̰ट 93 ˟ăଂຽࣶ̍ 2 94 ˬăЋຽయЇ̈́ᇇҖࠎ 94 αăྤੈన౯ 94 ̣ă౻ྤᙯܼ ăࢦࢋݵࡗ̱ 98 થݡᙷݭ̈́࠹ᙯྤੈ̼ד୧ּϦኛ८ࣞᏱந̝ᙋ̼ד୧ּٕ̙જயᙋ̼דᏉྤயᙋܛֶޘѐܕ㲠98 ڶੑચໄ 99 ੑચಡܑ׀Ъ 150 ᄃࢲᐍგநְีژᑭ̶̝ڍགྷᒉඕ̈́ڶېੑચ 160 ڶăੑચໄ˘ 160 ڍăགྷᒉඕ˟ 160 161 ˬăனܛ߹ณ 161 αăܕѐޘࢦ̂ྤώ͚၆ੑચຽચ̝ᇆᜩ ᖼԸྤ߆ඉăᒔӀٕᓪຫ̝ࢋࣧЯăԼචࢍ൪̈́Ϗֽ˘ѐԸྤࢍ൪ޘѐܕặ 163 ෞҤژăࢲᐍგந̶̱ 163 טăП፟நᑕត፟˛ 176 ˣăࢦࢋְี 176 পҾྶְี 177 177 ˘ăᙯܼЋຽ࠹ᙯྤफ़ Ᏹநଐԛדăռ๒ѣᆊᙋ˟ 178 Җଐԛે̝דၟҌѐಡΏОͤ͟ռ๒ѣᆊᙋ̈́ޘѐܕăˬ 179 αă̳̄Φѣ̶ٕώҖ۵ைଐԛ 179 ีְځăυࢋྃ·ᄲ̣ 179 ᆊॾѣࢦ̂ᇆᜩְ̝ีדᝋৈٕᙋڌௐ36୧ௐ2ีௐ2ഠٙؠ၆۵ڱٽϹדăᙋ̱ 180 181 ᓁҖ઼̰̈́γ̶͚፟ၹ̶Ҷဦ 182 ᓁҖ̶͚̈́፟ၹ˘ᜓܑ ANNUAL REPORT 2006 3 DO$VVHW HQW$XWKRULW\ VFDO ̚ ර ϔ ઼ ˝ ˩ ̣ ŕ າߋဥ ѐ Celebration of Lunar New Year. ą ѐ ಡ 4 ฟ၌܅Ş Attractive Sidelight of the Opening Ceremony. ŕ 2006Бϔநੑ౾ᜓົ߿જ܅ Attractive Sidelight of 2006 Expo on Wealth Management. ANNUAL REPORT 2006 5 e Sidelight of 2006 Expo on Wealth v Бϔநੑ౾ᜓົ߿જ܅ ŕ The Concert of Vienna Youth Choir. ၓᅙགྷ࡚ᓏᜬजჯ˵ৼ͌ѐЪભဥ Attracti Management. Ş 2006 ŕ Management. ઼ᅫ൳ᔈ The little Sentries of Wealth 101 Tapei 101 International Climbing Contest. Ş έΔ ᝌሄᏐ̄ᓁજࣶęԧߏநੑ̈ыһ ಡӘ३ڌ۵ Letter to Shareholders There were a number of disturbances such as disputes between the US and IRAN regarding development of nuclear weapons, missile tests by North Korea and the Israeli attacks on Lebanon in 2006. Fortunately, these crises were all quickly defused. In the meantime, steady economic expansion in the US, Japan, Europe and emerging Asia such as China and India has continued to drive the world economy. Global Insight Inc. (GII) (2007/02) has placed the 2006 global economic growth around 3.9% higher than 3.4% of 2005, and provides concrete proof of the solid performance of the global economy during the year. As for future prospect, the weakening US economy is often highlighted, but it will most likely steer clear of ̚ a hardlanding type of scenario. Furthermore, rapid ර and sustained growth in China, India, Russia and other ϔ ઼ emerging economies, together with the strong recovery in ˝ v v ˩ Europe, ha e for the most part offset the negati e impacts ̣ caused by the softening of the US economy. As a result, ѐ ą major international organizations are forecasting just a mild ѐ ಡ 董事長：張伯欣 slowdown in 2007; for example, GII (2007/02) has predicted Chairman of the Board: PoShin Chang the 2007 global economic growth rate at 3.5%. Domestically, our economy was hindered in 2006 by the ۋࡁ൴ڠ࡚Ͽ८זצаᜪ2006ѐБགྷᑻܑனĂᔵ 6 ᛉăΔᔹྏडࢳᇅ̈́ͽҒЕԽᑝጌ့͐ඈࡎ൴ְІ̒ᕘĂ credit card/cash card crises, leading to lackluster domestic consumption and weak momentum in private sector ਕдൺഇ̰ར၌Ă҃д઼࡚ă͟ώăለ߷ͽ̈́ౌضҭٙ spending and investment. Fortunately, sustained growth in ඈֲ߷າᎸགྷᑻវഀঈᜈᘦઉᕖૺ۞જޘăО઼̚ global economy has helped drive the further expansion of ĂֹБགྷᑻ̪ѣ࠹༊ᐹள۞ܑனĄॲፂᒖෛ፟ external trade, resulting in very encouraging foreign trade˭ ၹ(GII)(2007/02)Ă2006ѐБགྷᑻјܜதܐҤࣃࠎ statistics. The DirectorateGeneral of Budget, Accounting v (ᚊ۞˘ and Statistics, Executi e Yuan, R.O.C. (DGBAS) (2007/02ܪ2005ѐ۞3.4%ĂΞჍ˯ߏܑனٺ3.9%Ăர has placed its estimate of the yearly economic growth rate ѐĄ at 4.62%. གྷᑻ֕ٺण୕ϏֽĂጐგ઼࡚གྷᑻ݈ഀিऴĂҭϤ Global economic expansion is expected to slow down ăܻᘲ̈́ in 2007, but the growth rate will still be higher than theޘഈШർౙ۞࣒ϒĂГΐ˯઼̚ăОܧ๕֭ Ăለ߷གྷᑻೇ൩˧ longterm average. Moreover, strong global demands forܜ֝ి૦۞າᎸགྷᑻវᘦؠԣిᆧ electronic products will continue to propel steady growth in ቤ۞ࢬᇆᜩĄЯѩ઼ᅫٸϺૻĂ಼̂ቤ˞઼࡚གྷᑻ our foreign trade. With the ill effects of the credit card/cash Чࢋീ፟ၹ࠰ᄮࠎ2007ѐБགྷᑻ֕๕ரࠎᔌቤĂ card crises gradually subsiding, together with the boosts GII(2007/02)Ҥ2007ѐБགྷᑻјܜதࠎ3.5%Ą provided by the booming equity and housing markets ᗕΙࢲᇷĂϔมঐܑன̙ and by the improving employment conditions, domesticٺགྷᑻ͞ࢬĂ2006ѐϤ઼̰ consumption is on target for a stable recovery. In addition, ֶ˧ܜБགྷᑻјضĂঐ̈́Ըྤ̂જਕ̙ॎĂָٙ strong momentum in privatesector investment growth ᕖૺĂγ࠹ᙯᇾܑனሤඛĄٽᘦઉĂજԧ઼થݡ is being generated by increases in production capacity ࢍീ(2007/02)Бѐགྷᑻјܜத4.62%Ą and elevation of technology development among hitech ANNUAL REPORT 2006 7 , , e Ň Ň v ice Ň ect Ň j v loans Pro ņ elopment ices to all Mini aluations; v v v or strategic j ņ ation. We will Consolidation of eser v v ņ Smile & Reach Out ņ . ery Loans for SMEs v Ň strong support, continued oriented products; stabilization Ņ Beneficial Loans for Laborer t channel strategies and effecti fi ņ Loans for the Encouragement of ery satisfactory 4.30% in 2007. ņ v loan programs such as and Preferential Loans for LogisticSer and ņ Ň , antages and by repaying our shareholders ice, efficiency and inno . Ň v standing support with rewarding business v Ň Ň ect Loans for the Precision Machinery Park in j ead iders v v ision of the most comprehensi v Natural Disaster Reco Pro ed through multiple aluable shareholders v Financing for Returning Taiwanese Businessmen Taichung Pro ņ ņ for Farmers Tourism Industry Upgrading Owners and strategies v Our bank has identified the following ma As a centenarian bank that is currently at the 101st year Our 2006 business results and 2007 de eloping our bank as an international player with clear v alues of ser I. Implementation results of business plans (1) Offering of corporate loan programs such as demonstrate our utmost determination andde ambition by for their long (2) Offering of mini companies. The DGBAS (2007/02)economy has to grow forecasted by our a our customers through realizing ourv fundamental business competiti performances. We sincerely express ourto heartfelt all gratitude shareholders and theour society at large, and we ask marketing; focusing on pro of its existence, we are adopting compliance with the new capitaland adequacy establishment requirements of an independentmanagement and mechanism. professional risk as our new corporate sloganthe to pro reflect our commitment to encouragement and backing. goals for 2007: enhancement ofCorporate ROE; Banking & Breakthrough in Consumerachie Banking of operating expenses; implementation ofbased performance personnel policies, where theat right person the is right placed position through performance e directions are summarized as follows: ѐԧ઼Бѐགྷᑻјܜதࠎ 2007 ѐĂώҖͽາ۞Ћຽᇾᄬ Ă 舟 Julius Chen 淮 ચ෭ڇўĂۧٚĶ৯ా͕Ă؟ķࠎ Ĉ 101 陳 ： 理 (2007/02) ೩̿ٺ˧ѐĂώҖඉரϫᇾ̝ࢦᕇࢍѣĈ 經 ഇπӮܜٺѐ઼ᅫഀঈᕖૺՎአᔵቤĂଘ̪ 總 兼 2007 2007 事 Ą 董事兼總經理：陳淮舟董 Director & President ീ ࿅ѺѐĂдௐ֕ ण୕ Smile & Reach Out ᔌ๕Ăΐ˯Б̄யݡᅮՐ̪ইĂԧ઼γᕖૺΞ୕ჯ πᘦćдᗕΙड़ᑕు႙πिĂ۵ξăٗξ߿ඛͷಶຽԼචඈ ѣӀЯ৵˭ĂϔมঐΞ୕ుՎаćϔมԸྤдࡊԫ ຽ۰ᜈᕖ·யਕ̈́೩ԫఙᆸѨ˭ĂΞѣड़ჯᘭજਕĄ ॲፂࢍീ ཏĂ֭ͽ̂͗މચ̟ώҖᇃ̂۞ڇᏉܛĂ೩ֻБ͞Ҝ۞ه ચநڇચĂड़தĂ౹າķ۞གྷᒉڇĶ ͕ķາЋຽჟৠĂ൴೭Ķ 4.30% Ąטཉϲͷຽ۞ࢲᐍგந፟ ޙΐͽෞ ณĂͽ྿ዋ̖ዋ̝ٙϫᇾć੨Ъາྤώዋ֖த̝ఢؠĂ֭ޘטķĂેҖк఼ྮඉ ரĂͽ൴೭ҖዚΑਕćࢦෛથݡ̝ӀማĂՏ˘ีથݡืᒔ Ӏࠎࣧćᒉຽϡ̝ზĂჯд˘࠹༊ᘦؠ̝ͪć၁ ߉ͽᒻड़ࠎጱШ۞ˠְ߆ඉĂ֭࿅ᒻड़҂८ܛ࣎וăܛᝋৈಡ࿌தćĶዮЋڌ۵ ᐹ๕ (3) ProYiding the serYices of ņCreationof a Pledge onۋՙ͕ᄃЋဦ͕ĂֹώҖ൴णјࠎѣ઼ᅫͪᄃᚮ۞ ᚊ۞ຽᒻа㒝̟кѐֽ͚ᄃຑ᜕ώҖ۞۵ Foreign Currency Demand Deposit and Using it as aܪᅙҖĂ౹ౄ۞ SecurityŇ. ၱۤົኰ྿Ăᚶᜈග̟ඉᐽڌࡆЧҜ۵إࣇĄᖰѩᔁĂڌ (4) Issuance of the Platinum Commercial Card and the ᄃ͚Ą Century Platinum Card. 2007ѐӅ˧͞ШĂಡӘт (5) Offering of ņDomestic e-L/C serYicesŇ, ņPaymenẗ́ڍਬώҖ2006ѐགྷᒉј ѨĈ of Water and Electricity Bills Yia Mobile BankingŇ and ņNation-wide Payment SerYicesŇ. .ProYiding CHB-Talking-ATM serYices (6) ڍăᒉຽࢍ൪̈́གྷᒉඉர၁߉ј˘ (˘) ฟᏱĶέથаέԸྤ९ᏉྤഠķăĶ̈̚Ћຽ͇ (7) Offering of import & export negotiation and OBU internet banking ser ices. խचೇᖞഠķăĶέ̚ξჟ፟ୠࡊԫ౹າડ Y (8) Completionof customer ser Yice system upgrading ચຽᐹഠķ̈́Ķረᐽ៍Ѝڇ९ഠķăĶ߹఼ and launch of the nation-wide unified hotline number ̚ யຽ̿৺ഠķඈЋຽഠĄ ර 412-2222. ϔ (˟) ฟᏱĶྺछ̈ᗝഠķ̈́Ķ౻ᔲӀķඈ̈ᗝ ઼ (9) DeYelopment of the e-Billing system for distributorship ˝ ഠĄ ˩ receiYables management. ,ฟᏱĶγ๗߿ഇхഠనؠኳᝋ̈́೩ֻүࠎፉܲݡү (10) Adding the Zhunan branch, and relocating Luzhu (ˬ) ̣ ѐ ą ຽķĄ Zhonglun and Tanzi branches. ѐ ಡ (α) ൴ҖĶથચϨܛΙķăĶ͵ࡔϨܛΙķĄ (11) Obtained permission to apply with Vietnamese .̼̄ຽચķăĶҖજᅙҖᘳϹ authorities for setting up a branch in HanoiېϡܫĶ઼̰ٸฟ (̣) (12) Completion of upgrading of trust-business serYers and ચķ̈́ĶБ઼ّᘳຽચķĄڇăͪ 8 (̱) ฟᏱĶၓ̼થຽᅙҖᅪᘣᄬࢰ೩ഠ፟ķ(CHB- deployment of the reports management system. (13) Establishment of the credit-inYestigation management Talking-ATM)Ą system, enabling the proYisionof detailed information ચĄڇฟᏱซ˾γ๗ຽચ̈́OBUშྮᅙҖ (˛) oncredit risks. րΑਕ̿৺Ă֭ଯणБ࠷ಏ˘ྖܑཱིڇމˣ) Ԇј) (14) DeYelopment of the credit risk assessment model for 412-2222Ą loanapplicantswithout certi ¿ed ¿nancial reports. ( ) (e-Billing) ˝ ฟ൴͕̚ᇄགྷዚᙥᑕќഠგநր Ą (15) Planning and deployment of the creditor's rights .າᆧѻݑ̶Җᒉຽፂᕇ̈́ዏொྮѻă̚૬̈́ሔ̄ඈፂ management subsystem under the e-Loan system (˩) ᕇĄ (16) Deployment of the capital charge system ҖĄ encompassing the Basel II standard approaches for̶̰ګᒔࣞШݑ༊гგ፟ᙯ೩Ϧኛనϲ (˘˩) ཉಡܑგநրĄ credit risk and market risk, and the basic indicatorޙր፟̿৺Ă֭ܫԆј (˟˩) .ϡࢲᐍྤ approach for operationriskܫგநրķĂ೩ֻՀԆፋ۞ܫϲĶᇈޙ (ˬ˩) (17) Completed installing of serYers and networks at the ੈĄ Zhonglun data center, as well as moYing of equipment. ϡࢲᐍෞඈሀݭ̝ฟ൴Ąܫķ̝͗ܫα) ԆјĶੑᘪ˩) (18) Planning and deployment of the remote backup center (˩̣) ఢထޙཉܫҋજ̼ր(e-Loan)̝ๅᝋგந̄ր for our core billing system. Ą (19) Deployment of the Centralized Processing System ă̈́үڱăξಞࢲᐍᇾڱϡࢲᐍᇾܫ ཉBasel IIޙ (̱˩) for Check RetrieYals and Check Collections, enabling .ώࢍ೩րĄ bank-wide centralized processingྤ̝ڱຽࢲᐍૄώᇾ (˩˛) Ԇј̚૬ྤੈ̂ሁ፟ăშྮޙཉ̈́న౯ວዏĄ (20) Completionof the o Yerall planning for the bank's new (˩ˣ) ԆјώҖ८͕ચրளг౯೯͕̚ఢထᄃޙཉĄ CIS: Smile & Reach Out. ANNUAL REPORT 2006 9 olume Y olutionand Y ersified and elop soundly, Y Y enue ratio was Y ings) reached NT$ Y olume (excluding the Y alent to 0.84% (ROA) of Y ings alue and 14.35% (ROE) of the Y Y enue: NT$ 11,476,326,000 olume was NT$ 830,574,505,000 Y Y enue: NT$ 18,219,176,000 Y olume for the year was NT$ 76,960,362,000 e effect of changes in accounting principles: Y Y enues, expenses and profits are summarized enue: NT$ 29,695,502,000 Y Y isionfor loanlosses: NT$ 4,525,824,000 Y eraged total asset Y 14,324,496,000 11,084,417,000 NT$ 292,638,000 Analysis As the financial market continues to de Net income totaled NT$ 11,377,055 thousand in 2006, In2006, our total sa 2006 re eraged equity. Y financial products are becoming more di the a a sophisticated. Inorder to fully grasp market e 38.31%; Net income was equi reaching 88.81% of the budget12,810,332 target, thousand; which Net income was to NT$ net re IV. Research and Development as follows: (1) Net interest re (2) Net non-interest re (3) Net re (4) Pro (5) Operating expenses: NT$(6) 10,845,182,000 Earning Before Tax from Continued Operations: NT$ (7) Tax expenses: NT$(8) 3,240,079,000 Earning After Tax from Continued Operations: NT$ (9) Cumulati (10) Net income: NT$ 11,377,055,000 (11) After tax EPS: NT$ 1.79 II. Budget Execution III. Revenues, Expenses, and Profitability deposit transferred from postal sa 990,140,898,000 or 101.52% oftarget; the the original total budget loans or 96.43% of the target;totaled foreign US$ exchange 129,666,632,000 transactions amounting tothe 107.52% target; of securities brokering transactions89,821,435,000 totaled or NT$ 88.55% of the(mutual target; funds) the trust business or 83.36% of the target; the total card transaction (retail spend) reached NT$ 6,818,161,000,81.32% representing of the original target. Ă Ă ˼ ̙ӣฎ ( 0.84% ࠎາέ။ ) ˼̮Ą ˼̮Ą ࠎ ˼̮Ą Ă෴γ๗ 107.52% ˼̮ Ą 76,960,362 Ιณה ˼̮Ą ( (ROA) ˼̮Ă྿јზϫ ഠᒉྻณࠎາٸĂ 96.43% 292,638 Ą ˼̮Ą ˼̮Ă྿јზϫᇾ ˼̮Ą 11,084,417 14,324,496 14.35% ˼̮Ą Smile & Reach out ( ˼̮Ą ˼̮Ą ࠎ ćඁޢஐӀҫஐќৈͧத 990,140,898 ˼̮Ą ̮Ą 81.32% 101.52% 11,476,326 11,377,055 1.79 4,525,824 (ROE) ̝րЕఢထĄ ຽચณࠎາέ။ ĂΙͯຽચณ ) ) 88.81% 3,240,079 18,219,176 89,821,435 11,377,055 10,845,182 ૄܛ ˼࡚̮Ă྿јზϫᇾ̝ 29,695,502 ( 83.36% ˼̮̝ ˼̮Ă྿јზϫᇾ̝ Ă྿јზϫᇾ̝ ) Ăܫຽચ ѐхഠᒉྻณࠎາέ။ ĂඁޢஐӀҫπӮྤயᓁᗝͧத ˼̮Ă྿јზϫᇾ̝ ѐඁޢஐӀࠎາέ။ ѐੑચќ͚̈́ᒔӀଐԛ̶т˭Ĉ 129,666,632 12,810,332 Տ۵࠳ዶĈາέ။ޢඁ ώഇஐӀĈາέ။ ົࢍࣧតજ᎕ᇆᜩᇴĈາέ။ ᚶᜈᒉຽొܝඁޢஐӀĈາέ။ ඁ݈ஐӀĈາέ။ ٙඁϡĈາέ။ܝᚶᜈᒉຽొ ᒉຽϡĈາέ။ ഠӑϡĈາέ။ٸ ԆјώҖາЋຽᙊҾԛ෪ᇾౢ ચ෭͕ڇ৯ా͕ ၓᅙ ஐќৈĈາέ။ ԆјĶ೩аைፂ̈́ќைፂะ̚үຽրķ̝ޙཉၱ БҖాቢะ̚үຽĄ ӀिஐќৈĈາέ။ ӀिͽγஐќৈĈາέ။ ) ) ) 2006 Ꮙથݡ͟Ꮇк̮ăјሢĂܛᏉξಞ۞ઉБ൴णĂܛᐌ 2006 2006 830,574,505 ) ) ) ) ) ) ) ) ) ) 88.55% 38.31% ˩˘ ˩ ˝ ˣ ̱ ˛ ̣ α ˟˩ ˬ ˩˝ ˘ ˟ ᇾາέ။ ࠎ ( ( ᝋৈͧதڌஐӀҫπӮ۵ޢඁ ( ( ( ( ( ( ( ( ڶېαăࡁտ൴ण ژ̶˧ăੑચќ͚̈́ᒔӀਕˬ ˟ăზેҖଐԛ ( Ăүࠎξಞត̼̈́֕๕̝ࡁҿĂ֭ଂ઼ְژᏉགྷᑻഀঈ̶ܛ ξಞА፟ĂώҖؠഇ೩઼̰γפࠎ·̶ೠ೪ξಞਔજĂ ( ( ๗Ԋᖼхഠ έ။ ̝ གྷࡔຽચณࠎາέ။דຽચณࠎ ᙋ 6,818,161 ̮Ă྿јზϫᇾ̝ ᅮ get ahead of the competition, our bank produces regular͗މᏉથݡĂͽ႕֖ܛயຽࡁտᄃξಞአߤĂ౹າࡁ൴̰ Րć֭ᜈᏱநᅙҖຽચᗟࡁտ̈́ࠁࣶҌ઼γ̶ҖซҖপ reYiews of local and oYerseas financial markets as a way to assess market changes and trends. We also engage ؠຽચᗟ̝ࡁĂഇਕඕЪநኢᄃ၁ચĂүࠎགྷᒉ̈́٤ण insector research, market sur Yey and product innoYation ຽચ̝ણ҂Ą with a Yiew to satisfying customer needs. Furthermore, as ̣ă2007ѐᒉຽࢍ൪ໄࢋ a customary practice of our bank, special-topic research is (˘) ഇᒉຽϫᇾ always carried out, and bank representatiYes are sent to 1. хഠᒉྻณĈາέ။1,053,104,000˼̮Ą oYerseas branches for studying on speci¿c business issues. ഠᒉྻณĈາέ။892,484,000˼̮Ą The goal is to facilitate business operation and expansionٸ .2 through the optimal marriage of theories and practices. 3. ෴γ๗ຽચณĈ࡚ܛ141,434,000˼̮Ą གྷࡔຽચณĈາέ။96,724,000˼̮Ąדᙋ .4 V. Highlights of Business Operation Plans for 5. ܫຽચ(ૄܛ)ຽચณĈາέ။82,000,000˼̮Ą ̚ 2007 Ιณ)Ĉາέ။7,197,000˼̮Ą (1) Business Operation Targetsה)ර 6. Ιͯຽચณ ϔ ઼ 1. SaYings Volume: NT$ 1,053,104,000,000 ˝ ˩ (˟)གྷᒉ͞੫̈́ᒉຽ߆ඉ 2. Loans Volume: NT$ 892,484,000,000 ̣ 3. Foreign Exchange Transactions: US$ 141,434,000,000 ѐ 1. ΐૻξಞડĂஎਆϫᇾމ͗ཏĂͽᆧৈᒉຽӀৈ̈́͘ᜈ ą 4. Securities Brokerage Transactions: NT$ 96,724,000,000 ѐ ќˢĄ ಡ 5. Trust Business (Mutual Funds) Volume: NT$ 82,000,000,000 Multiple Channel Concept)̝ዚგĂ)ه൴णк఼ྮໄ .2 6. Credit Card (Transaction Amount): NT$7,197,000,000 ཏᐹ๕Ă֭ඕЪ̼̄ຽચĂͽ൴͗މ᎕ໂྻϡώҖᘀ̂ 10 ೭ዚტड़Ą (2) Business Directions and Operation Policies 1. Enhancement of operating profits and fee incomes through strengthening market segmentation and consolidating serYices for target customers. 2. Deployment of the Multiple Channel Concept by leYeraging the bank's extensiYe customer base and by implementing e-business for achieYing synergy in sales and marketing. 3. Close obserYation of political and economic deYelopments at both home and abroad to inform the bank's operation strategies for building optimal inYestment positions, carrying out liquidity risk management and maximizing pro¿ts. 4. Boosting the bank's reYenues by actiYely deYeloping foreign-currency and OBU businesses. 5. Enhancement of risk management effectiYeness by setting up an independent and professional risk management mechanism and by promoting the culture of risk management throughout the entire bank. 6. Reducing non-performing loans in order to improYe credit quality; strengthening recoYery of bad debts in ANNUAL REPORT 2006 11 ailable Y ciencies ¿ ision of optimal alignment Y ely implementing risk-oriented auditing Y estment risks and operating costs. Y ation of operating efficiencies by way of sound ities. Y Y e. Y nancial management, performance analysis and budget Our credit ratings as awarded by Moody's in July 2006 ¿ tracking. billing system; supporting front-desk operationsstrengthening IT by applications and integrating all a IT resources; facilitating processing automationcentralization and in order to enhanceand operating reduce ef in policies inorder to realize the order to boost earnings. of abilities and positions. qualifications of the auditors; strengtheningand education training programs; facilitating computer-aided auditing; effecti acti are as follows. Long-term Rating:P-1; A3; Bank Short-term Financial Rating: Strength Rating:Positi D; Outlook (BFSR): Po-ShinChang Chairmanof the Board Julius Chen President VI. Latest Credit Ratings 8. Setting up a remote backup mechanism for the core 9. Implementation of performance-based human resource 7. Ele 10.Continuous enhancement of the professional ࠎϒ (Financial (Outlook) ĂᅙҖੑચ၁˧ P-1 ᓁགྷந ܜְ ࠎĈڍϡෞඈ̝ෞඈඕܫ᎗࢚צତ͡ 7 ѐ Ăൺഇෞඈࠎ ĂᅙҖੑચ၁˧̝Ϗֽण୕ D 2006 A3 ࠎ ٺώҖ Ăૻ̼ྤੈࡊԫᑕϡĂፋ ЪፋវྤੈྤĂ͚೯݈έຽચ൴णĂଯજүຽҋજ̼̈́ ะ̼̚Ă೩̿БҖፋវүຽड़தăࢫҲԸྤࢲᐍᄃགྷᒉј ώĄ ၁߉ͽᒻड़ࠎጱШ۞ˠְ߆ඉĂ·̶ྻϡˠ˧ྤĂͽ྿ Ķዋ̖ዋٙķ̝ˠ˧ᙸഀĄ ᜈ೩̿ቊ८ˠࣶຽ৵ኳĂΐૻˠ̖ૈĂኴᜈଯજቊ ८ຽચཝ̼Ă֭ѣड़ેҖͽࢲᐍࠎጱШ̝ቊ८ࢍထĄטϲ८͕ચրளг౯೯፟ޙ ზᖸĂͽ೩̿གྷ ᒉᒻड़Ą̈́ژݡኳćТॡΐૻќаӑ Ăͽᆧỉ࠳ዶĄ ൴णੑચგநΑਕĂેҖᒻड̶़ܫഠĂͽჯ᜕։рٸĂར၁БҖࢲᐍგந̼͛ ۞ଯ જĂͽ೩̿ࢲᐍგந̝ड़ਕĄ ந࿈ഇטཉϲ̈́ຽ̝ࢲᐍგந፟ޙ ᏉຽચĂͽ೩ќৈĄܛԸྤొҜĂར၁߹જّࢲᐍგநĂ౹ౄӀማ̂ ̼Ą ᎕ໂ٤णγ๗઼̈́ᅫ̝آϲ Ъޙຍ઼̰γ߆གྷଐ๕൴णĂ੨ЪώҖགྷᒉඉரĂڦ̷ 3. 4. 5. 6. 7. 8. 9. 10. ڍϡෞඈඕܫѨ˘ܕă̱ ܜഇෞඈࠎ ШĄ Strength) ३ځᓏޘטטᅙҖ̰ొଠ Internal Control System Statement ३ځᓏޘטטၓ̼થຽᅙҖ̰ొଠ ̈́ט95ѐ1͡1͟Ҍ95ѐ12͡31͟ቁ၁ᏲೈĶᅙҖ̰ొଠٺώᅙҖځᖰܑၓ̼થຽᅙҖᓏ Җߤ८ĂેܝĂ၁߉ࢲᐍგநĂ֭Ϥϲ̝ቊ८ొޘטטϲ̰ొଠޙķĂڱ၁߉Ᏹޘטቊ८ ഇఱԊࢎĶᙋדᏉႾ༛გந؎ࣶົᙋܛຽચొ̶Ăֶ֭ፂדؠഇౘಡְົ̈́Ⴞ၅ˠĂࣘᒉᙋ ѣड़ّ̝ҿᕝีϫĂޘטטநķఢؠ̝̰ొଠޘטטϲ̰ొଠޙચְຽڇၱഇఱξಞЧד ఢᏲೈଐڱ̈́טЧಏҜ̰ొଠޘనࢍ̈́ેҖߏӎѣड़ĄགྷᆶຕෞҤĂώѐ̝ޘטטҿᕝ̰ొଠ ३̝ࢋ̰ځ३јࠎώᅙҖѐಡ̳̈́ฟᄲځٙЕְีγĂӮਕቁ၁ѣड़ેҖćώᓏܑܢԛĂੵ ௐ˟˩୧ăௐڱٽϹדଐְĂঘ̈́ᙋڱटĂ֭၆γ̳ฟĄ˯̳ฟ̝̰टтѣંăᔳઠඈ̙ యЇĄޠڱ୧ăௐ˘Ѻ˛˩˘୧̈́ௐ˘Ѻ˛˩α୧ඈ̝˟˩ˬ ᖰ ᏉႾ༛გந؎ࣶົܛ ̚ ර ϔ ઼ ˠĈၓ̼થຽᅙҖ۵Њѣࢨ̳Φځᓏ ˝ ˩ ̣ ѐ ą ѐ ಡ Ĉܜְ 12 ᓁགྷநĈ ᓁቊ८Ĉ გĈ΄ڱᓁ፟ၹᏲч ̚රϔ઼˝˩̱ѐα͡˩ˣ͟ ANNUAL REPORT 2006 13 d 174 of aluation, Y eness of internal Y pliance systems of , promulgated by the Ň Enforcement Regulations for ņ aluating effecti Y isors. With respect to the securities e department to conduct audits, and Y Y ), we hereby state that from January 1, Ň ecti M Bank isory Commission. After prudent e Y ņ ed. Y Ĉ ol Y cer ¿ in establishing its internal control system, implementing Ĉ Ň Handling Guidelines for the Establishment of Internal Control eness of the design and implementation of its internal control Y Ĉ ņ Ĉ e Vice President e Vice President Y Y Chang Hwa Commercial Bank, Ltd. Executi Executi & Head Auditor & Compliance Of April 18, 2007 President Chang Hwa Commercial Bank, Ltd. Chairman s annual report and prospectus, and be published to the public. If there is e been in effect during the year, this Statement will be included as the main Y INTERNAL CONTROL SYSTEM STATEMENT Ņ ice Enterprises in Securities and Futures Markets Y isory Commission Y ity such as fraud or concealment, liabilities under Article 20, 32, 171, an Y aluationof the effecti Y On behalf of Chang Hwa Commercial Bank ( Ĉ any illegal acti Financial Super Bank Internal Audit Control Systems regularly reporting to the Boardbusiness, of e Directors and the Super system has beendoneinaccordancewith the criteriacontrol for systems described e in the Securities and Futures Bureau, Financialexcept Super for items listed ineach department the ha schedule, the internalcontent control of the and Bank legal com the Securities and Exchange Law will be in To risk management, designating an independent and ob Systems by Ser 2006 to December 31, 2006, the Bank has duly complied with the ᑕΐૻְี̈́Լචࢍ൪ޘטטၓ̼થຽᅙҖ̰ొଠ Ğૄ͟Ĉ95ѐ12͡31͟ğ ᑕΐૻְี Լචନ߉ ؠԆјԼචॡม ĂࢦϦᑕֶఢᏱநҋ ώҖ̏εଐԛቁ၁ᑭԼචĂ(בЧᒉຽಏҜ(ၓથхфௐ10544ཱིב95.7.20఼ٺपϠ൸ϡ 1. ᓁҖڒϔ̶Җ95ѐ7͡൴ϠᏱְࣶˬ ܛგົĂ̏ᒔܛϏ̝ఢؠĄ̰ొቊ८ ֭ԼචଐԛౘಡٺĂ֨ቑၑბטજᕢࣶ፟ೱăྃดүຽĂར၁̰ొ ܛҋજᕢࣶ፟ഠี800༱̮९ĂགྷҖ߆ੰ გᅙĞ˟ğܛგᅙ(˟)ф ֭Еࠎࢦᕇߤ८ีϫĄ გົࠀଉĞ96.1.23͟ܛᏉႾ༛გந؎ࣶົ95.11.13 ğĄבᛉְีΡะᓁቊ८ă фௐ09685000550ཱིޙ95.7.25ֶቊ८९አߤ൴ன̝ε̈́ٺௐ09520007481ཱི३Ă၆ώҖЯϏ 2.(1)ᓁགྷந ܛăఢؠ྅ดዋனטቁ၁ે ઘᓁགྷந̈́ᓁҖЧგᑭҋજᕢࣶ̰፟ଠ֭፟ޘטטϲዋ༊ѣड़̰ొଠޙਕ ดӇგநࢋᕇķĄܛௐ45୧̝1Ă८ჳᔫາ хณĂ̈́ࢎؠĶҋજᕢࣶ፟னڱҖĂ࿁ͅᅙҖ ᄂ။20000༱̮Ą (2)ҋ8͡˯џБҖ̶̱ડᓝᏱĶх๗ຽચ̰ଠᓾ௫ົķĂࢋՐЧᒉຽಏҜ ར၁̰ଠ̝ેҖĂ̷֭၁ેҖҋҖߤ८̍үĄ چ11͡15ă16ă17БҖ̶ˬડᓝᏱĶҋҖߤ८გˠࣶᓾ௫ົķĂ೩ٺ(3) ̚ ර ҋҖߤ८გຽચۢਕĄ ϔ (4)Ω̰ొቊ८Я94ѐᏱநᐹੜˠᇴ྿35ˠĂҫٙѣቊ८ˠࣶ45ƦĂ95ѐ ઼ 95ѐٺĂ̏ޢ95ѐ6͡АҖྃ·20ˠٺĂଘˠࣶޢᚑࢦརޘഇᑭߤซ˯ ˝ ˩ ĂώҖᚶᜈૈ·֖ăຽ̝ቊ८ˠࣶĄޘԆјБొࢍထซغ ̣ ѐ ЧᒉຽಏҜ(ၓבดӇგநࢋᕇķ఼֭ܛ95.8.11ࢎؠĶҋજᕢࣶ፟னٺą 3. ᓁҖ ѐ ดܛᑕቁ၁ᏲҖາ࣒ࢎҋજᕢࣶ፟үຽఢؠ(ӣ۩ன(בથх๗фௐ11738ཱི ಡ Ӈგநࢋᕇ)Ă̰ొቊ८֭ώีЕࠎቊߤࢦᕇีϫĄ 14 ANNUAL REPORT 2006 15 ing thoroughly Y led a report to the FSC ¿ iewed and redressed on Y After ha re the said weaknesses, the bank to that effect whichtakennote.(As has been per FSC's Letter No. 09685000550 dated January 23, 2007) e Y on ision ision Y Ň Y eVice Y aws and À insix areas, Regulations ņ Ň Internal Control ņ iewed the Y Regulations regarding ņ ed professional ones. ¿ December 31, 2006) Ĉ estigation, enhanced the internal control Y ember 15, 16 and 17, the Bank held 3 self- . ent misconducts. Such compliance is on the Y Y Ň ised regulation (including the management of Y and enforced all businessinternal units control to measures and perform self-audits. strictly The Headquarter set the the Management of Cash Cartridges in ATM Seminars on Deposit and Remittance OnNo assessment seminars for self-assessment-officers by region in order toknowledge. enhance their competence and During 2005, 35 experiencedreaching internal to auditors, 45% ofmanpower total caused retired. a The shortage seriousperformance of delay during in the auditing firstJune half 2006, year 20 of auditors 2006.caught were By up recruited. with The its Bank plannedof audit the schedule year. at The the Bank end willnew continue auditors to to recruit be and quali train August 11, 2006. The notice no.11738units to all was business issued tore stress the compliance withempty the cash cartridges). Suchpriority list compliance of is internal audit. on the suggestions reported by the Internal Auditing Di Inearly August, the Bankheld The notice no. 10544on issued July by 20, the 2006 Headquarter toimportance of all complying business with all units measures reiteratedthe regarding the replacing of cash cartridgescash and in ATMs, replenishing and of toof re-emphasize implementing the internal importance check mechanismsto in pre order priority list of internal audit. OnJuly 25, 2006, the President with the Executi President and Senior ViceHeads President of & Di the Headquarter re after its in Vice President & Head Auditor, Executi mechanisms of ATMs and setlimit for the branch Cash and in to ATM formulate the regarding the Management ofATM Cash Cartridges in (Record Date (3) (4) 3. 1. (1) (2) 2. CHB Internal Control Weaknesses and Improvement Plans ery bank should e internal control Weakness Improvement Plans Completion Date Y Y ember 13, 2006 stated Y system. OnJuly, 2006, Clerk Lin Fengsheng of Sanmin Branch embezzled NT$ 8 million from ATMs. The statement of FSC No.09520007481 dated No that the Bank wasNT$ fined 2 for millionaccordinglydue to breach Article 45-1Banking of Act the which regulates that e establish and implement effecti Ⴞ၅ˠߤ८ಡӘ Supervisors' Audit Report Ⴞ၅ˠߤ८ಡӘ ᒉຽಡӘ३ă࠳ዶ̶੨ᛉ९̈́ЧࢋੑચಡܑĞΒ߁ޘώ̳Φְົౄਖ਼̝ϔ઼˝˩̣ѐ ߹ณܑğඈܑΊĂ̚ࢋੑચಡܑĞӣᄃ̳̄ܛᝋৈតજܑăனڌயๅܑăຫৈܑă۵ྤ ࢍरְચٙችԈேົࢍर̈́ਃၷᐌົࢍरߤ८ᘪᙋĂ൴ο࣒ົܫੑચಡܑğຽགྷ๔ຽி׀Φ̝Ъ ˘˩ˬ͡˟˩ϒёܲຍ֍३Ă֭གྷְົٚᄮд९Ăᄮࠎ֖ͽ̯༊ܑ྿ώ̳Φϔ઼˝˩̣ѐ ௐڱ߹ณĄώႾ၅ˠ၆˯ฟܑΊֶ̳̏Φܛᄃனڍགྷᒉј̝ޘᄃϔ઼˝˩̣ѐڶېੑચ̝͟ ᆶ८ԆඇĂপѩٚᄮĄະኛᝥ८ĄڱѺ˘˩˝୧ఢؠĂֶ˟ āāѩ ົ૱ڌၓ̼થຽᅙҖ۵Њѣࢨ̳Φ˝˩̱ѐ۵ ̚ ර ϔ ઼ ˝ ၓ̼થຽᅙҖ۵Њѣࢨ̳Φ ˩ ̣ ѐ ą ѐ ಡ ˧༩ڒዸႾ၅ˠĈ૱ 16 Ⴞ၅ˠĈߟѽս ང Ⴞ၅ˠĈౘ˿ॲ ؟Ⴞ၅ˠĈችೳ Ⴞ၅ˠĈܘᇇၓ ̚රϔ઼˝˩̱ѐ̣͡˟͟ ANNUAL REPORT 2006 17 , Earnings contributions atement). All nancial position ¿ ows in2006. The À ed Opinion has been issued. These statements ¿ nancial statements (including Balance Sheet, Income ¿ ed Unquali e-mentioned statements in accordance with Article 219 of the arious ¿ Y Y ides such acknowledgments for your perusal. Y Diao Li Lin e been certified by Hung-Hsiang Tsai, CPA and Long-Swei Won, CPA Y Ĉ iewed the abo Y isor Y Tai Chang Chiu Jimmy Yang-Tzong Tsay Tu-Kung Chen Hsiu ChuanKo Ĉ Ĉ Ĉ Ĉ e Super or financial statements, including consolidated statements containing M Y isor isor isor isor isor has re Y Y Y Y Y The Board of Directors has produced the 2006 Report on Business Operations e thus been recognized by the Board of Directors as presenting fairly the Y May 2, 2007 Super Supervisors' Audit Report To: Annual Shareholders' Meeting of Chang Hwa Commercial Bank Super DistributionProposal, as well as Statement, Statement of Changesthe in ma Stockholders' Equity, andfrom Cash subsidiaries, Flow ha St Super of Deloitte & Touche, andha a Modi Super Executi of the company as ofSuper December 31, 2006 andCompany its Law business and results hereby and pro cash Chang Hwa Commercial Bank, Ltd. ᅙҖᖎ̬ Bank Overview A. Bank Overview a. Re-registered Date Re-registered DateĈJuly 1950 License No.: ID51811609 b. The Bank's Development History The origin of Chang Hwa Bank dates back to the colonial period under Japan's goYernance when Wu Ju- Hsiang founded the Kabushiki Kaisha Shoka Ginko in Chang Hwa County on June 5, 1905, with an initial capital of 220,000 Japanese yen raised from local businessmen and landlords. Kabushiki Kaisha Shoka Ginko relocated its head of¿ce from Chang Hwa County to Taichung City in 1910 to better coordinate its expansion efforts of setting up branches and ˘ăᅙҖᖎ̬ of¿ces inall ma Mor cities inTaiwan. ̚ (˘)నϲ͟ഇ ර WhenTaiwanwas restored to the ROC go Yernment నϲ൳͟ഇĈ̚රϔ઼39ѐ7͡ ϔ onOctober 25, 1945, the Bank'spredecessor established ઼ ેཱིቅĈ̳Φ˘በཱི51811609 ˝ a preparatory office to reorganize as today's Chang Hwa ˩ Bank. After the Taiwan proYincial goYernment took control ̣ ( ) ࢭ of Japanese shareholdings in Kabushiki Kaisha Shokaڻѐ ˟ ᅙҖ ϔ઼݈7ѐ(̳̮1905ѐ)6͡5͟ĂϤၓ̼Ꭹ Ginko, the preparatory office conducted the Bank's firstٺą ώҖ౹న ѐ shareholders' meeting in February 1947, which elected ಡ ӓѬேАϠ۬Ъ̚ొг̀͞Ăะྤ෮߂෮༱͟Ă·ࠎ۵ Chang Hwa Bank's ¿rst directors and superYisors under a ٺ༊ѐ൴ᖐనϲĶঀёົۤၓ̼ᅙҖķĂనᓁҖٺώĄ new goYernment. The new board elected the preparatory ၓ̼ĂߏࠎώҖ൴̝ؕĂ̫֞̏˘Ѻ˘ฉѐĄ of¿ce's head Ling Hsien-Tang as the Bank's ¿rst chairman. 18 ϔ઼݈2ѐ(̳̮1910ѐ)ώҖࠎዋᑕ༊ॡᒖဩᅮࢋĂᓁ Chang Hwa Bank was formally re-incorporated under ROC Җዏనέ̚ξĂ᎕ໂ٤णຽચĂ˲ώ࠷ЧࢦࢋᓄгડĂӮ Law onMarch 1, 1947, with aninitialcapital of 15 million ̶నᒉຽ፟ၹĂᒉຽშ̶οБέĄ Taiwanese yuan. ϔ઼34ѐ10͡25͟έ៉ЍೇĂϔ઼35ѐ10͡16͟ώҖ InJune1949, the Taiwanpro Yincial goYernment re- .ᚥૅАϠፉЇᚯ౯ЇĂ֭ placed the Taiwanese yuan with the New Taiwan dollarڒјϲၓ̼થຽᅙҖᚯ౯ĂϤ Chang Hwa Bank adMusted its registered capital accordingly ̂ڌ۵ЊĄϔ઼36ѐ2͡ᓝҖ౹ϲ۵̝ڌତќ͟ᚱ۵عϤ߆ ,ĄТѐ3͡1͟ϒё to NT$2.4 millioninDecember 1950. InDecember 1997ܜᚥૅАϠࠎְڒĂϤְົଯᏴົ the Taiwanpro Yincial goYernment made public its share- Լјϲࠎၓ̼થຽᅙҖĂྤώᓁᗝؠࠎᖞέ။ಥΖЁֿ༱ holdings in the Bank in line with the goYernment's policy of ̮Ą ¿nancial priYatization. The Bank was of¿cially priYatized on ԼࢭĂ൴Җາέ။Ăϔ઼39טϔ઼38ѐ6͡ώ࠷၁߉။ January 1, 1998. ѐ12͡ώҖྤώᓁᗝአፋࠎາέ။෮ֿདྷ߂༱̮Ąϔ઼86 In 2005, Chang Hwa Bank carried out a 1.4 billion Type-B preferred shares cash capital increase Yia priYate ѣ̝ώҖ఼۵۵ைซҖ̳ฟ٢عѐ12͡Ăέ៉࠷߆ ๒ĂͽેҖ̳ᒉְຽϔᒉ̼̝߆ඉĄϔ઼87ѐ1͡1͟ϒёԼ placement. Taishin Financial Holdings Co., Ltd. won the ϔᒉĄ biding in the competition, with the cash capital increase dateט ,ᆧྤռ๒൴Җ߂དྷᆆ۵˙ of record set for October 3, 2005. After the capital increaseܛϔ઼94ѐώҖᏱந઼̰ன the Bank had registered capital of NT$63,594,756,000 and ᆧܛᏉଠ۵۵Њѣࢨ̳ΦᇾĂனܛЩёপҾ۵ĂϤέາ Taishin Financial Holdings became CHB's largest share- ྤૄ͟ࠎ94ѐ10͡3͟Ąᆧྤޢ၁ќྤώᓁᗝࠎາέ။ౙ holder with a 22.01% stake. Ꮙଠ۵۵Њѣܛણ߂ЁᆆմΖདྷֿ߭߂Ё༱ౙΖ̮Ăέາֿ At the end of 2006, the Bank's authorized capital stood Ą at NT$65,000,000,000, and the Bank's registered capitalڌࢨ̳ΦѣώҖ22.01%̝۵ᝋĂјࠎώҖ̂۵ ĂώҖᗝؠྤώᓁᗝࠎາέ။ౙֿЁ߂ᆆ stood at NT$62,094,756,000, presented in 4,809,475,600غҌϔ઼95ѐ Ă၁ќྤώᓁᗝࠎາέ။ౙֿ෮߂ᆆմΖདྷֿ߭߂Ё༱ౙ commonshares and1,400,000,000 Type-B preferred̮ Ζ̮Ă̶ࠎ఼۵དྷ߂ज़ᆆմֿདྷ߂߭༱ЁΖౙֿ۵Ă̈́˙ shares at a par Yalue of NT$10 per share. The Bank is one পҾ۵߂དྷᆆ۵ĂՏ۵ࢬᗝາέ။ಥ߂̮Ăࠎ઼̰ྤώฯ of the leading banks in Taiwan in terms of paid-in capital and .ݓĂૄᖂᘦ̝ᅙҖĄ sound ¿nancial structure ANNUAL REPORT 2006 19 ᒉຽొ Business Department Sub-branches Җ̈́Ᏹ̶઼ְ̰ Domestic Branches and ) གྷࡔથדᙋ Security Brokers Branch ડᒉྻ Centers Company Ltd. Offshore Banking ௐ˘Ҍௐ̱ડᒉྻ CHB Life Insurance ઼γ̶Җܑ̈́ ઼ᅫܛᏉຽચ̶Җ ( Representative Office ၓᅙˠ֗ܲᐍநˠ̳Φ 6 Commercial Regional Agency Company Ltd. ၓᅙܲᐍགྷࡔˠ̳Φ Overseas Branches and CHB Insurance Brokerage ܫ ৪३ ቊ८ ๅᝋგந ઼̰ᒉྻ ઼ᅫᒉྻ ̄ᒉྻ ܫგந ࢲᐍგந ᒉྻܛྤ ˠ˧ྤ થݡඉထ Trust Division Treasury Division E-Business Division Secretariat Division Division Human Resoures Division Internal Auditing Division Risk Management Division Domestic Banking Division ྤੈ Credit Management Division Division үຽ ᓁચ International Banking Division Product Management Division IT Division ੑચგந Operations Division Loan Assets Management Financial Management General Affairs Division ᓁቊ८ ઘᓁགྷந ઘᓁགྷந ઘᓁགྷந ઘᓁགྷந & Head Auditor ᓁགྷந President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President ְ ܜְ Ⴞ၅ˠ ְົ Directors Ⴞ၅ˠົ ચְ૱ Supervisors ૱ዸႾ၅ˠ Board of Directors Managing Directors Board of Supervisors Executive Supervisor Chairman of the Board ົڌ۵ ᖐրဦ நಡӘ Report of Corporate GovernanceڼΦ̳ ᖐր 1. ) 1. Organization Chart Shareholders' Meeting ˘ a. Organization ( ˘ă ᅙҖᖐ A.Organization ٙᒉຽચ 2. MaMor Business of Each DiYisionܝࢋొ.2 ְົቊ८Ĉೠநგ፟ᙯఢؠυࢋ̝˘ਠߤ८ă (1) Internal Auditing DiYisionĈIncharge of audits of (1) ९ߤ८̈́ࠎώҖຽચᅮࢋ̝ຽચ٩ߤĂᖬߤ̰ăγ general and special proMect concernnrequired required by by the the ొቊ८ᑭߤຍ֍̝ԼචଐԛĂ̙։ܫᖼዚӑ̝ߤ competent authority and random business examination ८Ăࢦ̂ઊ൴̈́Ը෦९І̝አߤĂͽֶ̈́ఢᑕߤ required by the Bank's regulations, and inspecting the -̳ improYements required by internal and external auditט८ְ̝ีćΩෞҤԼචώҖ̝ࢲᐍგநăଠ -ӄ྿јώҖ̝ϫᇾĄ ing opinions, examining the write off from non-performםந࿅̝ѣड़ّĂࣕͽڼΦ நă͛३ ing debts to bad debts, inYestigating material incidenceڼ৪३ĈೠநБҖགྷᒉඉரᄃఢထă̳Φ (2) -ચ̈́Ᏺ and complaint processing, and other required examiڱநă̳Вᙯܼă۵ચந(Ըྤ۰ᙯܼ)ă ఢထᄃგநඈְีĄ nation pursuant to the regulation; and eYaluating and̝ޘטგ΄ڱч ˠ˧ྤĈೠநБҖˠ˧߆ඉăˠ˧Җ߆ְચăࣶ improYing the Bank's risk management and control and (3) ̚ ̍ିֈቚࢍ൪ăࣶ̍ᒻड़გந߆ඉăࣶ̍ᓟ࿌̈́ the ef¿ciency of corporate goYernance for ful¿lling the ර .ϔ Ӏඈ̝ఢထᄃેҖć֭యࣶ̍ሕਕฟ൴ᄃᖚგந goals set by the Bank ઼ ൴णඈְีĄ (2) Secretariat DiYisionĈResponsible for the planning ˝ ˩ Ꮙ and management of the Bank's business operationܛĂາژᏉથݡྤफ̶़̝ܛથݡඉထĈೠநξಞ (4) ̣ ѐ ,strategies and planning, corporate goYernance ͗މą થݡ̝ฟ൴ᄃߊѣથݡ۞ჯ᜕ᄃԼචćડϫᇾ ѐ ಡ ξಞĂࢎؠҖዚఢထĂయࢎؠથݡᆊॾ;֭ᑢࢎ̈́ document processing, public relationship, stock affairs -࣒ࢎЧีຽચఢౢăநԔ̈́࠹ᙯݵࡗćయᇃӘ processing (inYestor relationship),legal affairs and le 20 ͛ކᄃҖዚඉரఢထĄ gal compliance. (3) HumanResources Di YisionĈResponsible for the bank-wide human resource policies, human resource administration, employees' education and training plans, employee performance management policies, employee compensationn and bene¿t planning and ex- ecution; and employees' potentiality deYelopment and Mob career management and deYelopment. (4) Product Management DiYisionĈResponsible for mar- ket data analysis of ¿nancial products, deYelopment of new products and maintenance and improYement of existing ones; segmentation of target customers, formulation of marketing plans, and execution of prod- uct pricing; establishment and amendment of Yarious business guidelines, operation procedures and rele- Yant agreements and contracts; planning of marketing communications and strategies. (5) Treasury DiYisionĈEngaging in financial commodity marketing by targeting on the Bank'ss niche customer ANNUAL REPORT 2006 21 isionand Y erseas branches, Y elopment plans for Y CoordinationCoordination among among ResponsibleResponsibleResponsible for for for build- build- build- ĈĈ ĈĈ aluation, super elopment and research of elopment and research of Y Y Y nancial markets, and execut- ision and management of the ision elopment plans; administra- ision ¿ Y Y Y Y ement of domestic banking units. Y al of business targets and perfor- Y ,thede InIn charge charge of of the the planning planning and and operation operation ĈĈ aluation of budget plans, setting up and Y ision nancial institutions; establishment, relocation/ Y ¿ isionandexecutionof de and domestic branches, compiling annual and Y iew and appro Y estment portfolio in the re mance monitoring and e assistance in the formulation and implementationsales of and business de termination and management of o ing and managing inter-bank foreign exchangeposit de- and trading networks comprising bothforeign local and tion and execution of back-office foreigntransactions exchange in relation to foreign exchangeand deposits import & export trades. each commodity. In charge of domesticincluding banking units, the installation, relocation and dismantleATMs; of The planning and execution forand the procedure sales impro flow Assisting banking units in maintaining, andthe managing sales plans of each nichethe customer Bank. group set by CRCs and domestic branches, compiling annualmid-term and sales goals, implementation, tracking, per- formance e super trust commodities, super trust business in each business operation unit,drawing and the up of policies and proceduresness. for trust busi- of trust business, the de groups, and abiding by the actspetent enacted authority, operating by short, the mid, com- and long termY in- ing the Asset and Liability Managementdecision Committee's concerning interest rate risk tocapital ensure liquidity the and maximize profits withinand tolerable controllable risks. (8) International Banking Di (7) Domestic Banking Di (6) Trust Di ΒΒΒΒ ((( ăξಞࢲᐍăăξಞࢲᐍăăξಞࢲᐍă )) ഠă๊ќഠ̈́ٸ࿈ഇ ഠă๊ќഠ̈́ٸഠă๊ќഠ̈́࿈ഇٸഠă๊ќഠ̈́࿈ഇٸ࿈ഇ ( (( გந̈́நඉரĂ֭ࢎؠЧี๊ќநგந̈́நඉரĂ֭ࢎؠЧี๊ќநგந̈́நඉரĂ֭ࢎؠЧี๊ќந )) ࢎ̙։ๅᝋטඈְ ีĄ ๅᝋგநĈטؠࢲᐍ߆ඉăඉரăఢቑăԔᄃጱ ͞੫ĂಶЧีࢲᐍΐͽᄮؠăᏊณăෞҤᄃଠטүຽࢲᐍඈ ࢲᐍგநĈ੫၆ຽચ˯઼̝छࢲᐍăܫϡࢲᐍ ߁ЋຽܛᏉă࣎ˠܛᏉ̈́ܛᏉТຽඈ ϡࢲᐍܫ९ІᖬᆶඈְีĄ ࢲᐍგநĈ੫၆ຽચ˯઼̝छࢲᐍăܫ९Іᆶ ८ăᒉຽಏҜܫგநĈయ࿈ડᒉྻᝋࢨ̝ܫ९ІᆶܫგநĈయ࿈ડᒉྻᝋࢨ̝ܫćᑢࢎЧ఼ྮ ۞ዚඉரăຽચఢăዚ߿જ̝ેҖᄃგநăͽ ̈́Чีຽચଯण̝ᒻड़҂८ඈְีĄ ޘטăྖᅙҖăҖજᅙ ҖăშྮᅙҖ̈́ۡତฎІዚ̝͕̚ڇމϲྖޙăྖᅙҖăҖજᅙ ̄ᒉྻĈ͕̚ڇމϲྖޙέүຽგந̈́ྻүĄ ̄ᒉྻĈޢӄЧีຽચዚᄃଯणࢍထ̝ࢎؠᄃેҖć యх๗ăซ˾ඈγ๗ຽચםϲᄃგநćయ઼γ̶͚፟ၹ̝నཉăዏ ၣ̈́გநĂ८ؠຽચϫᇾăᖸᄃᒻड़҂८Ă֭༛ ጱăޙᏉТຽΒ߁х๗Җă఼๗ Җშྮ̝ܛᏉТຽΒ߁х๗Җă఼๗ ઼ᅫᒉྻĈయ઼̰γܛཏዚࢍ൪ඈְีĄ ઼ᅫᒉྻĈయ઼̰γ͗މӄᒉຽಏҜჯ᜕ăგநБҖఢထ̝ϫ ᇾםᄃ̚ഇዚϫᇾ̈́ზࢍ൪̝ેҖăᖸᄃᒻड़҂ ८ඈć֭ࢎؠЧથݡଯणࢍ൪ă༛ጱᄃેҖĄయ ઼̰ᒉຽಏҜĂΒ߁ҋજᕢࣶ̝፟నཉăዏொăၣ ඈүຽć֭య઼̰ᒉຽፂᕇዚ߹ă࿅Լซ̝ ఢထᄃેҖćޘ ѐטአડᒉྻ઼̰̈́ᒉຽಏҜĂበםѐ ઼̰ᒉྻĈטአડᒉྻ઼̰̈́ᒉຽಏҜĂበםఢౢ̝ᑢࢎඈְีĄ ઼̰ᒉྻĈޘטຽચܫຽચ̝༛ጱᄃგ நĂܫથݡ ̝ࡁտᄃฟ൴Ă၆ЧᒉຽಏҜܫຽચ̝ఢထᄃүຽĂܫĈೠநώҖܫ થݡܫຽચ̝ఢထᄃүຽĂܫĈೠநώҖܫ ̝̂Ӏማඈ ְีĄפࢲᐍ˭Ăᒔ̝ט߹ જّγĂ֭ഇдΞଠ̝ܛഇ̝ԸྤЪፆүĂ̈́ેҖྤயๅგந ؎ࣶົ၆Ӏதࢲᐍٙү̝ՙඉĂੵቁܲώҖྤܜᏉξಞଂְ ൺă̚ăܛ͔ĂдޠڱᏉથݡĂ ֭Ᏺೈგ፟ᙯٙࢎؠ̝ܛཏĂҖዚ͗މᒉྻĈ੫၆ώҖϫᇾܛྤ ᏉથݡĂܛཏĂҖዚ͗މᒉྻĈ੫၆ώҖϫᇾܛྤ ඈְีĄآְٽგநćેҖ̙։ๅᝋϹޢ ։ๅᝋ̝ᐺćᏱநᖼዚӑ̈́ӑ९Іְ̙טԫμćந̂ᗝ̙։ๅᝋĂ֭Ⴞ༛ăგந ̈́ଠ̈́ڱԔă͞ ࢎ̙։ๅᝋטๅᝋგநĈ ӑ९І (12) (5) (6) (7) (8) (9) (10) (11) (9) E-Business DiYisionĈEstablishing such systemsystems as call center, phone banking, mobile banking, internet banking and direct mailing sales; deYising the ex- ecution and management of marketing strategies, business guidelines and marketing actiYities of each e-channel, and the performance eYaluation. (10) Credit Management DiYisionĈResponsible for case reYiew of credit approYals that are beyond the man- dates of regional business units, and auditing of credit approYals handled by indiYidual business units. (11) Risk Management DiYision: Formulation of manage- ̚ ment policies, strategies, rules, procedures and ර ϔ guidelines with regard to country risks, credit risks ઼ ˝ (including corporate banking, consumer banking and ˩ ̣ inter-bank dealings), market risks and operation risks, ѐ ą which need to be identi¿ed, measured, eYaluated and ѐ ಡ controlled. (12) Loan Assets Management DiYisionĈ Enacting 22 the management and handling strategies for non- performing loans (NPL) (referring to oYerdue loans, collections and bad debts), and proposing the handling procedures, skill and methods for collections. Write-off, טਠ̳ᄮົࢍࣧఢؠâ̈́΄ڱੑચგநĈֶፂ (13) super ision, management, control, post-management, ࢍຽચநԔ͘ΊĂ̯༊ܑ྿ Yົ̈́ޘטࢎώҖົࢍ and execution of NPL. ώҖੑચྤੈĂቁܲྤயๅܑЧࡊϫ̝ϒቁّĂఢ (13) Financial Management Di ision Implementing the ထ̳Φඁચă̈́ѣड़ೠ೪ዋ̷ྤफ़ĂჯώҖྤώዋ Y Ĉ Bank's accounting system and accounting operation ഇზࢍ൪ćેҖྤயๅ̈́̚ޘதćຉበБҖѐ֖ handling procedure brochure pursuantt to the Acts and ഇੑચᅮՐܜგந؎ࣶົ৪३үຽăඉரఢထБҖ̚ GAAP, disclosing properly the Bank's nancial informa- ᄃგநྤயๅܑ̰γЧีࢲᐍćయϒቁͷӈॡг ¿ tion, ensuring the accurate correctness of each items ҾăથݡҾă̶ҖҾܝ೩ֻ̰ొੑચྤੈĂෞҤЧొ listed in the balance sheet, planning the corporate Ă൴೭გநົࢍآᒻड़Ă̈́Чีથݡᆊॾ̝ᑭീְ̝ taxation, controlling proper information ef ciently, main- ¿ ΑਕඈְีĄ̝ taining the capital adequacy ratio for the Bank, com- (14) ྤੈĈೠநБҖྤੈրఢထޙཉᄃྤੈщБଠგ piling bank-wide annual and mid-term budget plans, ඈЧีүຽĄ executing the secretariat obs for the Asset and Liabil- (15) үຽĈᚯ͚೯Чี݈έຽચ̝ྻүᄃଯणĂΒ߁ M ity Management Committee, planning the bank-wide ᑢࢎă࣒ԼડᒉྻăᒉຽಏҜЧีາέ။ຽચүຽ mid and long term financial demands, and managing ะ̼̚ăྤੈ̼ăזέүຽ྿ޢέүຽĂഇֹޢ߹ each risk in and off balance sheet, in charge of pro id- ड़த̼۞ϫ۞Ą Y ANNUAL REPORT 2006 23 el- Y ed by Y ision: Pro- Y aluating the ce business ing the each Y ¿ cient. idual business ¿ Y SettingSetting up up six six ision, assistance, ce operationthat Y ¿ Ĉ Ĉ erseas banking branches Y ProposingProposing and and executing executing the the eaback-of ision, commodity type, branch, ĈĈ Y Y nancial information, e ision ¿ e office, offshore banking branch, arious front-desk transactions; es- Y Y Y ision: Business Process Di Y heir satellite branches. ision: Responsible for company-wide IT systems Y elopment of Y ision of integrated support for the operation and processes for handling NT-denominated transactions by regional business centers and indi units, in order to achie is centralized, IT-enabled and highly ef Bank's capital expenditure budgets, handling theexpense each disbursement in the headquarter, managing and maintaining the Bank's properties, protectingsecurity the of the Bank's fortunes, andmeasures, related sticking protection to labor security andand sanitary architectural acts. acts Regional Commercial Centers, in charge ofassessing, risk credit management, super ing timely internal performance of each di and inspecting the price of each commodity, and de planning and deployment, as well ascurity information control and se- management. Y de tablishment and amendment of back-of oping the functions of management accounting. support for their satellite branches. ing Business Department, domestic banking branches and sub-branches, and o and representati the authority. securities brokerage, life insurance agency, insurance brokerage to operate the Bank's business appro (17) Commercial Regional Centers (15) Operations Di (14) IT Di (16) General Affairs Di (18) Business Operation Units and Subsidiaries: Establish- ă઼ᅫܛᏉຽચ̶ă઼ᅫܛᏉຽચ̶ă઼ᅫܛᏉຽચ̶ă઼ᅫܛᏉຽચ̶ă઼ᅫܛᏉຽચ̶ )))) ᏱְᏱְ Ᏹְ ( ( གྷᒉ̝ຽચĄڱགྷࡔથăˠ֗ܲᐍநˠ̳Φăܲᐍགྷࡔˠ ̳ΦඈಏҜĂᏱநώҖֶדҖăᙋ ӄă͚೯Чีགྷᒉ̝ຽચĄ ᒉຽಏҜ̳̈́̄ΦĈనཉᒉຽొă̶઼̰Җ̈́Ᏹְ ᒉຽಏҜ̳̈́̄ΦĈనཉᒉຽొă̶઼̰Җ̈́Ᏹְ ă઼γ̶Җܑ̈́ םᆶ८ăࢲᐍგநĂ̈́༛ጱăܫఢඈְีĄ ડᒉྻĈ̶నௐ˘ડᒉྻҌௐ̱ડᒉྻćೠந ડᒉྻĈ̶నௐ˘ડᒉྻҌௐ̱ડᒉྻćೠந ᔑડ̰Ч̶Җ̝ڱޙ̈́΄ڱĂ֭੨Ъ Ᏹந౻̍щБϠآᄃેҖĂᏱந ᓁҖЧีϡ̝ৼְีćώҖЧีੑயგந̈́ᒉᖑ ̍үćჯ᜕ώҖੑய̝щБᄃ࠹ᙯ᜕ְ֨טᄃેҖĂᏱந ᓁચĈೠநώҖྤώ͚ზ̝በטᓁચĈೠநώҖྤώ͚ზ̝በ (16) (17) (18) ăְ̈́Ⴞ၅ˠྤफ़˟ B.Board of Directors and Supervisors (ְ̈́Ⴞ၅ˠྤफ़(1(˘) a.Board of Directors and SuperYisors (1) 96ѐ4 ͡17͟ April 17, 2007 ܐѨᏴЇ͟ഇ Dated Started ੨ઊăϏјѐ̄ ӀϡˠЩཌྷ ੨ઊٕ˟Ꮠඈͽ̰ᙯܼ̝ for the First Term ᏴЇॡѣ۵Њ ̃னдѣ۵Њ ѣ۵Њ გăְٕႾ၅ˠBeing the Shareholding on னдѣ۵ᇴ Shareholding by Shareholding ϫ݈ࣘЇώҖ̈́ Spouse or Relative Within 2 Tiers Ᏼ(ಶ)Ї (YearƟMonth) Current Shareholding Їഇ / Election Spouse & Minor Under ࢋགྷĞጯğ። ̳Φ̝ᖚચ of Other Managers, Directors or ˠ Prime Experience & Current Positions in theڱ ˠܑˠڱ ᖚჍ ؖЩ ͟ഇ Term Title Name Date Started Representative Children OthersŅ Title Supervisors (Year) Education Bank and Other Companies (Year/Month) of Institutional Shareholder ۵ ۵ ۵ ۵ ᙯܼ ۵ᇴ ۵ᇴ ۵ᇴ ۵ᇴ ᖚჍ ؖЩ Institutional Relation Shares ͧத Shares ͧத Shares ͧத Shares ͧத Title Name Shareholder % % % % ship ̄ͭ ְ ૺؠϔ ܜώ̳Φְ ܜ ၓ̼ᅙҖְ 186,350 0.05 3,195,362 0.05 3,195,362 1973.09 3 2005.11 ڟૺұ ܜְ Chairman Po-Shin Chang Chairman of CHB Chairman of CHB Director Timothy Father Chang and Son ܜ઼࡚ϣৼҘ̂ጯགྷᑻጯ ϖˬЋຽ(۵)̳Φְ Ⴧ̀ Chairman of Yun San Corp. ̚ (ᓑྤயგந(۵ܛM.S. in Economics,The έ៉ ර University of Tennessee ̳Φְ ϔ Director of Taiwan Asset ઼ Management Corporation ˝ (ચ(۵ڇᏉྤயܛέ៉ ˩ ̣ ̳ΦႾ၅ˠ ѐ Supervisor of Taiwan ą Financial Assets Service Co. ٙ(۵)̳ΦٽϹדѐ έ៉ᙋ ಡ Ⴞ၅ˠ Supervisor of Taiwan Stock Exchange Corp. 2005.11 3 2006.05 1,400,000,000 22.01 1,560,225,000 25.13 ώ̳Φְ ܜ ̂щᅙҖְ إચְ Ԡ૱ 24 Managing Henry C.S.Kao 2005.11 Chairman of Dah An Director of CHB ܜᏉଠ۵۵Њ Commercial Bank ཌྷ࡚ࢴݡઘְܛDirector (έາ ѣࢨ̳Φܑ) ઼࡚ᖞܛ̋̂ጯ̳ВҖ Vice President of I-Mei (Delegate of Taishin ߆Ⴧ̀ Foods Co., Ltd. Financial Holding Co., Ltd.) M.A., University of San έາܛଠ̈́έາᅙҖ Francisco Ⴞ၅ˠ Supervisor of Taishin International Bank & Taishin Financial Holding Co., Ltd. щ১ྨ(۵)̳Φְ̂ Director of DahhAnLeasingAn Leasing & Financing Co., Ltd Φ̳(۵)ظර઼ᅫฺ Ⴞ၅ˠ Supervisor of Formosa International Hotel Co., Ltd රາᚊර(۵)̳ΦႾ၅ˠ Supervisor of Walsin Lihwa Corp. ݱ̂ጯ̳В߆ ώ̳Φְ ڼચְ ॳАྺ 2005.11 3 2006.06 757,120,460 11.91 757,120,460 12.19 ઼࡚ಕ૱ Managing Hsien-Nung Kuei 1947.02 ඉࡁտٙჇ̀ Director of CHB Director (ੑ߆ొܑ) Master in Public Policy, ੑ߆ొᙯ߆ΦΦܜ (Delegate of Ministry of Georgetown University Director General, Dept. of Finance) (Washington D.C. , USA) Customs Administration, ੑ߆ొੑඁˠࣶቚٙ MOF ܜઘٙ Deputy Director General, Training Institute, Ministry of Finance ੑ߆ొܛᏉԊЇ৪३ Assistant Director, Deputy Director, Director, Secretary General, Bureau of Monetary Affairs, Ministry of Finance ship ᙯܼ Relation BeingBeing the the ؖЩ Name Supervisors Title ᖚჍ ੨ઊٕ˟Ꮠඈͽ̰ᙯܼ̝ of Other Managers, Directors or Spouse or Relative Within 2 Tiers გăְٕႾ၅ˠ An Leasing hAnLeasing ܜΦְ̳ ܜΦְ̳ܜΦְ̳ܜΦְ̳ܜΦְ̳ Φְ̳ Φְ̳Φְ̳Φְ̳Φְ̳ ) ))) ) ))) ۵ ۵۵ ۵ ۵۵ ( ( ( ( ̳Φ̝ᖚચ ϫ݈ࣘЇώҖ̈́ Current Positions in the Bank and Other Companies ώ̳Φְ Director of CHB & Financing Co., Ltd ଠְ Director of Taishin Financial Holding Co., Ltd. ΔኖᎸຽܛPresident of Tasco Chemical Corporation έາ ܜώ̳Φְ Director of CHB έ៉Ϯ̼ЪјĞ۵ğ ̳Φְ ᗁੰ৪३Ї Chief in Department of Secretariat, Chung- Ho Memorial Hospital, Kaohsiung Medical University هన̚ࡔܢChairman of Safeway Gas Co., Ltd. ώ̳Φᓁགྷந President of CHB ώ̳Φְ Director of CHB ฯᗁጯੰ Chairman of Taishin Asset Management Co. έາᅙҖְ Director of Taishin International Bank ̂щ১ྨ ܜώ̳Φְ Director of CHB έາྤயგநĞ۵ğ ̳Φְ Director of Dah An Leasing ANNUAL REPORT 2006 25 President of & Taishin Education ࢋགྷĞጯğ። Prime Experience & Director & PresidentCHB of ెϥጯੰົࢍጯրலຽ Accounting, Feng Chia University ጯ̍ጯ౾̀ PhD,The University of TokyôִڌΦᓁགྷந President of Tasco Chemical Corporation ͟ώ̳ President of Taishin Financial Holding Co., Ltd. ৸ࡗξϲ̂ጯұጆҹጯ ੰੑགྷჇ̀ M.A. in Finance, City University of New York Ⴧ̀ M.S., Stanford University ᓁགྷந President of Taishin Financial Holding Co., Ltd.& Taishin International Bank έ៉̂ጯགྷᑻր Economics, National Taiwan University % Title ۵ ͧத Ņ Under ѣ۵Њ ۵ᇴ Shareholding Others Shares ӀϡˠЩཌྷ % ۵ ͧத Children ၓ̼ᅙҖְ̈́ᓁགྷந έ៉Ϯ̼ЪјĞ۵ğ έາܛଠᓁགྷந ઼࡚Ϋ̜̂ጯྤੈր έາܛଠ̈́έາᅙҖ ۵ᇴ Shares Spouse & Minor Shareholding by ੨ઊăϏјѐ̄ ̃னдѣ۵Њ % ۵ ͧத ۵ᇴ னдѣ۵ᇴ Shares Current Shareholding % ۵ ͧத Їഇ Term (Year) Election 817,162 0.01 817,162 0.01 881,850 0.01 881,850 0.01 ۵ᇴ ЇЇЇ ЇЇ )) )) Shares ˠڱ Shareholding on ᏴЇॡѣ۵Њ / ಶ ಶ ಶ ( ( 1,400,000,000 22.01 1,560,225,000 25.13 1,400,000,000 22.01 1,560,225,000 25.13 1,400,000,000 22.01 1,560,225,000 25.13 ͟ഇ Month) Month) Month) Ᏼ ƟƟ Date Started (Year/Month) Institutional Shareholder Shareholder Dated Started 8 ܐѨᏴЇ͟ഇ of Institutional (Year Representative 08 for the First Term ˠܑˠڱ 1997.10 2005.11 2005.11 2005.11 2005.11 ؖЩ Name 2005.11 3 2003.06 2005.11 3 2005.11 2005.11 32005.11 2006.03 3 2005.11 2005.11 3 2005.08 Title ᖚჍ ))) )(Delegate)(Delegate of of )) (Delegate (Delegate of of )(Delegate)(Delegate of of ChengCheng Ching Ching Wu Wu Jau Chen -Jau Chen Ꮙଠ۵۵ЊѣࢨܛᏉଠ۵۵Њѣࢨέາܛέາ ̌۵Њѣࢨ̳Φܑ̌۵Њѣࢨ̳Φܑ Ꮙଠ۵۵ЊѣࢨܛᏉଠ۵۵Њѣࢨέາܛέາ Ꮙଠ۵۵ЊѣࢨܛᏉଠ۵۵Њѣࢨέາܛέາ Foundation) Kuan Yu Tang Charity (Delegate of Chang ૺЍྈૅຎචົܑğ ˠέ̚ᦦռϲڱĞੑဥ Co., Ltd.) Taishin Financial Holding ̳Φܑ ( Charles W.Y.Wang ͳ͛ Co., Ltd.) Taishin Financial Holding ̳Φܑ ( ӓሏ Co., Ltd.) Taishin Financial Holding ( Eric K. Chen Co., Ltd.) Chen-Jau Chen Ԡ (Delegate of Ho Chuan ౘ֚ߌޙౘ ̳Φܑ ( Julius Chen ౘஏҐ ચְ Managing Director૱ ְࣘᓁགྷ ந Director & President ְ Director ְ Director ચְ Managing Director૱ ܐѨᏴЇ͟ഇ Dated Started ੨ઊăϏјѐ̄ ӀϡˠЩཌྷ ੨ઊٕ˟Ꮠඈͽ̰ᙯܼ̝ for the First Term ᏴЇॡѣ۵Њ ̃னдѣ۵Њ ѣ۵Њ გăְٕႾ၅ˠBeing the Shareholding on னдѣ۵ᇴ Shareholding by Shareholding ϫ݈ࣘЇώҖ̈́ Spouse or Relative Within 2 Tiers Ᏼ(ಶ)Ї (YearƟMonth) Current Shareholding Їഇ / Election Spouse & Minor Under ࢋགྷĞጯğ። ̳Φ̝ᖚચ of Other Managers, Directors or ˠ Prime Experience & Current Positions in theڱ ˠܑˠڱ ᖚჍ ؖЩ ͟ഇ Term Title Name Date Started Representative Children OthersŅ Title Supervisors (Year) Education Bank and Other Companies (Year/Month) of Institutional Shareholder ۵ ۵ ۵ ۵ ᙯܼ ۵ᇴ ۵ᇴ ۵ᇴ ۵ᇴ ᖚჍ ؖЩ Institutional Relation Shares ͧத Shares ͧத Shares ͧத Shares ͧத Title Name Shareholder % % % % ship 2005.11 3 2005.11 1,400,000,000 22.01 1,560,225,000 25.13 έາᅙҖઘᓁགྷந ώ̳Φְ ઼ڒ ְ Director Thomas K.K.Lin 2005.11 Executive Vice President Director of CHB Ꮙଠ۵۵Њ of Taishin Financial έາᅙҖְܛέາ) ѣࢨ̳Φܑ) Holding Co., Ltd. Director of Taishin (Delegate of Taishin έ៉̂ጯགྷᑻրலຽ International Bank Ꮙ(۵)̳ΦܛדFinancial Holding Co., Ltd.) Economics, National έາை ܜTaiwan University ઘְ Vice Chairman of Taishin Bills Finance ந ώ̳Φְ ם έາᅙҖ 25.13 1,560,225,000 0.01 1,400,000,000 2005.11 3 2005.11 پְ ӓጳ Director Hsien Chang Wu 2005.11 Vice President of Taishin Director of CHB ̚ Ꮙଠ۵۵Њѣࢨ International Bankܛර (έາ ϔ ̳Φܑ) ၓ̼ᅙҖགྷந ઼ (Delegate of Taishin Manger of CHB Financial Holding Co., Ltd.) έݑથᖚᖚొலຽ ˝ ˩ Tainan Senior ̣ Commercial School ѐ ̄ͭ ڟૺұ ܜą ְ ૺؠϔ 2005.11 3 1997.10.100 1,400,000,000 22.01 1,560,225,000 25.13 ϖˬЋຽ۵Њѣࢨ̳Φ ώ̳Φְ ְ ѐ Director Timothy Chang 2005.11 ᓁགྷந Director of CHB Chairman Po-Shin Father Ꮙଠ۵۵Њѣࢨ President of Yun San ϖˬЋຽĞ۵ğ̳Φ Chang and Sonܛಡ (έາ ̳Φܑ) (Delegate of Corp. ᓁགྷந Taishin Financial Holding ઼࡚PEPPERDINÊጯ President of Yun San Corp. Co., Ltd.) ЋຽგநჇ̀ 26 MBA, Pepperdine University ώ̳Φְ ءڱੰڱ߆ጳ 2005.11 3 2006.116.11.11 1,400,000,000 22.01 1,560,225,000 25.135.13.1313 έ៉έΔг͞ڒ ְ Director Cheng-Hsien Lin (έາܛ 2005.11 Judge of Taiwan Taipei Director of CHB ચְٙޠڱц઼ᅫથચޠ Ꮙଠ۵۵Њѣࢨ̳Φ District Court रޠ ءڱੰڱг͞ڕDelegate of Taishin έ៉) (ܑ Financial Holding Co., Ltd.) Judge of Taiwan Banciao Managing Attorneyof Lin District Court Law Firm ጯ රԄࡊԫ(۵)̳Φϲְڱ઼࡚ݑ࡚ͽ࡚̂ጯ Ⴧ̀ă౾̀ࡁտ Independent Director of Ph. D.. candidate,, Master Waffer Technology Corp. of Laws,Southern ᗕᕃࡊԫ(۵)̳Φϲְ Methodist University Independent Director of Auras Technology Co., Ltd. ְ ૺ 2005.11 3 2000.100.10 757,120,460 11.91 757,120,460 12.19 έ៉̂ጯགྷᑻր ώ̳Φְ Director Ching-Hsi-HsiHsi Chang 1947.02 րЇ Director of CHB (ੑ߆ొܑ) (Delegate Professor of Dept. of έ៉̂ጯି of Ministry of Finance) Economics, National Professor of National Taiwan Taiwan University University ઼࡚ܻϻܻэϲ̂ጯ ౾̀ Ph. D., Ohio State University र ώ̳Φְ ޠચְٙޠڱְ ఄ౼ၷ 2005.11 3 2000.10.10 757,120,460 11.91 757,120,460 12.192.199 ཌྷந Director Sheng-Rong-RongRong Chuang 1947.02.0202 Lawyer of Justice & Truth Director of CHB रޠચְٙޠڱĞੑ߆ొܑğ Law Office ཌྷந րலຽ Lawyer of Justice & TruthޠڱDelegate of Ministry of έ៉̂ጯ) Finance) Lawof National Taiwan Law Office University ޠर҂̈́ॾ Certified Patent Attorney ship ᙯܼ Relation BeingBeing the the ؖЩ Chinese Bank of Taiwan Name ̳ΦႾ၅ˠ ̳ΦႾ၅ˠ ̳ΦႾ၅ˠ ̳ΦႾ၅ˠ ) ) ) ) ۵ ۵ ۵ ۵ Supervisors ( ( ( ( Director, National -Director, National Title ᖚჍ ώ̳ΦႾ၅ˠ Supervisor of CHB έ៉̂ጯથጯੰି Professor, College of Management, National Taiwan University ੈాࡊԫ Supervisor of CyberCorp. Link ̚රෛ Supervisor of Chinese Television System Inc. έ៉ඵ੧ Supervisor of Taiwan Tobacco andᄂ៉ᅙҖ Liquor Corp. Supervisor of BankTaiwan of ώ̳ΦႾ၅ˠ Supervisor of CHB ώ̳ΦႾ၅ˠ Supervisor of CHB ੑ߆ొ઼ऱཌܜ Division-Director, National Treasury Agency, Ministry of Finance ੨ઊٕ˟Ꮠඈͽ̰ᙯܼ̝ of Other Managers, Directors or Spouse or Relative Within 2 Tiers გăְٕႾ၅ˠ s Ņ Hsing of CHB -Hsing Taishin ̳Φ ̳Φ ,Senior ) ) ۵ ۵ ( ( Chief, Senior HoldingHolding Co., Co., Ltd. Ltd. ̳Φ̝ᖚચ Director of BankTaiwan of ઼࡚֧ᜋ̂ጯົࢍ ౾̀ Ph. D., University of Maryland ሯ̂ጯથགྷࡊ லຽ Kinki UniversityܕChairman of Huang Lieh Ho Social Welfare Foundation ͟ώ ܜְົܛⱑӀૄ University Executive Officer, National Treasury Agency, Ministry of Finance ̚Ꮈ̂ጯੑඁրலຽ Finance & Taxation, National Chung-Hsing ࣶ Division Chief, Senior؎ܝ ϫ݈ࣘЇώҖ̈́ Current Positions in the xecutive vice president at Bank and Other Companies Ꮙଠ۵ܛડ̈̚ЋຽᅙҖତგ ̈Ρะˠ Convener of takeover the Taitung Business Bank έາڌώ̳Φְ Director of CHB ̚δхഠܲᐍ Central Deposit InsuranceCorp έ ઘᓁགྷந Executive vice president at the Ministry of Finance ώ̳Φ૱ዸႾ၅ˠ Executive Supervisor of CHB ᓁቊ८ General Auditor of Taishin Financial Holding Co., Ltd. ANNUAL REPORT 2006 27 National of National Education ࢋགྷĞጯğ። Prime Experience & Economics of National Taiwan University General Auditor of Dah An Commercial Bank ̼͛̂ጯགྷᑻր Economics of Chinese Culture University έ៉ᅙҖְ ˠเধͫۤົڱ ੑဥ ੑ߆ొ઼ऱཌࡊܜă % Title ۵ ͧத Ņ 3 9 19 .13 .19 Under .01 2.19 ѣ۵Њ ۵ᇴ Shareholding Others Shares ӀϡˠЩཌྷ % ۵ ͧத Children έ៉̂ጯགྷᑻጯࡁտٙ ̂щથຽᅙҖᓁቊ८ ۵ᇴ Shares 1 1,560,225,000 25.13 Spouse & Minor Shareholding by ੨ઊăϏјѐ̄ ̃னдѣ۵Њ 01 .01 .01 817,162 0.01 19 13 .19 .13 % 2.19 5.13 ۵ ͧத 817,162 0.01 757,120,460 11.91 757,120,460 12.19 1,400,000,000 22.01 ۵ᇴ னдѣ۵ᇴ Shares Current Shareholding 0 2 10 11 02 .10 .10 .11 0.10 5.11 % ۵ ͧத 2005.11 1997.10 1947.02 Їഇ Term (Year) Election ۵ᇴ ЇЇЇ ЇЇ )) )) Shares ˠڱ Shareholding on ᏴЇॡѣ۵Њ / 757,120,460 11.91 757,120,460 12.19 ಶ ಶ ಶ ( ( 1,400,000,000 22.01 1,560,225,000 25.13 ͟ഇ Month) Month) Month) Ᏼ ƟƟ .11 3 2000.10 Date Started (Year/Month) 5.11 Institutional Shareholder Shareholder Dated Started 5 2 2 ܐѨᏴЇ͟ഇ of Institutional (Year Representative 2005.11 3 2005.11 2005.11 2005.11 3 2005.11 02 for the First Term .05 .12 ˠܑˠڱ 6.05 6.12 2005.11 1947.02 ؖЩ Name ))) Ko )) Tzong Tsay -Tzong Tsay (Delegate(Delegate of of Chang Chang ང ѽս Kung Chen -Kung Chen Ꮙଠ۵۵ЊѣࢨܛᏉଠ۵۵Њѣࢨέາܛέາ ੑ߆ొܑ ੑ߆ొܑ ( ( 2005.11 3 2006.05 2005.11 3 2006.12 ̳Φܑ (Delegate of Taishin Financial Holding Co., Ltd.) Yang-Tzong Tsay ؟ችೳ ˠέ̚ᦦռ ϲૺЍྈૅຎචົ ܑğڱౘ˿ॲ Tu-Kung Chen Ğੑဥ Kuan Yu Tang Charity Foundation) (Delegate of Ministry of Finance) Hsiu Chuan Ko Title ᖚჍ Ⴞ၅ˠ Supervisor Ⴞ၅ˠ Supervisor )) Ꮙଠ۵۵ЊܛᏉଠ۵۵Њέາܛέາ (Delegate of Taishin Financial Holding Co., Ltd.) ѣࢨ̳Φܑ ( Diao Li Lin ˧༩ڒ ߟ Finance) (Delegate of Ministry of Ğੑ߆ొܑğ Wen-Hsien Lai Ꮵ͛ᚥ ૱ዸႾ၅ˠ Executive Supervisor Ⴞ၅ˠ Supervisor ְ Director ܐѨᏴЇ͟ഇ Dated Started ੨ઊăϏјѐ̄ ӀϡˠЩཌྷ ੨ઊٕ˟Ꮠඈͽ̰ᙯܼ̝ for the First Term ᏴЇॡѣ۵Њ ̃னдѣ۵Њ ѣ۵Њ გăְٕႾ၅ˠBeing the Shareholding on னдѣ۵ᇴ Shareholding by Shareholding ϫ݈ࣘЇώҖ̈́ Spouse or Relative Within 2 Tiers Ᏼ(ಶ)Ї (YearƟMonth) Current Shareholding Їഇ / Election Spouse & Minor Under ࢋགྷĞጯğ። ̳Φ̝ᖚચ of Other Managers, Directors or ˠ Prime Experience & Current Positions in theڱ ˠܑˠڱ ᖚჍ ؖЩ ͟ഇ Term Title Name Date Started Representative Children OthersŅ Title Supervisors (Year) Education Bank and Other Companies (Year/Month) of Institutional Shareholder ۵ ۵ ۵ ۵ ᙯܼ ۵ᇴ ۵ᇴ ۵ᇴ ۵ᇴ ᖚჍ ؖЩ Institutional Relation Shares ͧத Shares ͧத Shares ͧத Shares ͧத Title Name Shareholder % % % % ship ந ώ̳ΦႾ၅ˠ םᇇၓ 2005.11 3 2005.115.11.111 1,400,000,000 0.01 1,560,225,000 25.13.1313 έາᅙҖܘ Ⴞ၅ˠ Supervisor Teo Chang Chiu 2005.115.11.111 Vice President of Taishin Supervisor of CHB Ꮙଠ۵۵Њѣࢨ International Bankܛέາ) ̳Φܑ) ၓ̼ᅙҖགྷந (Delegate of Taishin Manger of CHB Financial Holding Co., Ltd.) ࠷ϲέ̚થᖚலຽ Taichung Senior Commercial School 95.6.13ԼࠁࠎְĄٺ95.5.30ྋЇ૱ચְᖚચĂ֭ٺᏉଠ۵۵Њѣࢨ̳ΦܛĈέາ઼ڒ ොĈ ԼࠁࠎְĄޘТѐ95.11.14ྋЇְᖚચć96.1.29Гٺ95.3.14ԼࠁࠎְĂ֭ٺᏉଠ۵۵Њѣࢨ̳ΦܛౘஏҐĈέາ 95.5.30ྋЇ૱ዸႾ၅ˠᖚચĂ֭ԼࠁࠎְĄٺᏉଠ۵۵Њѣࢨ̳ΦܛĈέາإԠ ̚ ර NoteĈ Taishin Financial Holding Co., Ltd. reappointed or dismissed the representatives for directors and supervisors of CHB. ϔ Thomas K.K. LinĈDismissed the managing director on May 30, 2006ćre-appointed as the director on June 13, 2006. ઼ Julius ChenĈRe-appointed as the director of CHB on March 14, 2006ćdismissed the director on November 14 , 2006ćre-appointed as the director on January 29 , 2007. ˝ Henry C.S. KaoĈDismissed the executive supervisor and re-appointed as the director on May 30 , 2006. ˩ ̣ ѐ ą ѐ ڌࢋ۵̝ڌˠ۵ڱ.ಡ 2 2.MaMor Institutional Shareholder 96 ѐ4͡17͟ April 17, 2007 28 ڌࢋ۵̝ڌˠ۵ڱ ЩჍڌˠ۵ڱ Institutional Shareholder MaMor Holder of Shares in Institutional Shareholder ֽҘֲથTPG NEWBRIDGE TAISHIN HOLDINGS Ƕ,LTD, LTD 7.18% ֽҘֲથTPG NEWBRIDGE TAISHIN HOLDINGS I, LTD 4.79% ֽҘֲથ QE INTERNATIONAL (L) LIMITED 3.82% થՅֲ߷ԸྤĞέ៉ğ۵Њѣࢨ̳Φາΐ 3.18% Nomura Asia InYestment (Taiwan) PTE. Ltd. έາ১ྨ۵Њѣࢨ̳ΦTaishin Leasing & Financing 2.58% Ըྤ͗ 2.42%ܛপᚗᖳγ઼ૄܛΦ̝րЕૄ̳ܛܲგপᚗᖳૄצᏉଠ۵۵Њѣࢨ̳Φ ࡚થᇝॲ఼̂ᅙҖέΔ̶Җܛέາ Taishin Financial Holding Co., Ltd. TempletonForeignFund(aSeries of TempletonFund,Inc) ֽҘֲથTAISHIN CO-INVESTOR HOLDINGS Ƕ,LTD, LTD 2.36% έ៉ˠုܲᐍ۵Њѣࢨ̳Φ 1.98% TaiwanLife InsuranceCo. Ltd ֽҘֲથTAISHIN CO-INVESTOR HOLDINGS I, LTD 1.57% ౻̍ܲᐍԊ 1.52% Bureau of Labor Insurance ੑ߆ొ ܧࠎ̳ΦᖐĂ̙ዋϡ Ministry of Finance The Bank is not a corporation structure, so it's'ss not subMect to the requirements. ౘϣങ(39.01%)ăౘ։̄(40.67%)ăౘޙ(6.71%)ăౘޙԠ(6.71%)ă߸܆(3.33%)ăᔨฯ(3.33%)ă ; ̌۵Њѣࢨ̳Φ James D. Chen; Liang-TzChen ćJian-Dau Chen ćEric K. Chen ćYing-Fan Hung ; Fei-Shiung Tung (Ho ChuanCo.,Ltd. ౘϣߦ(0.03%)ăౘϣࣧ(0.03%)ă ౘϣࣿ(0.03%)ăౘϣݱ(0.03% Tian-Bo Chen ; Tian-Yuan Chenć Tian-Pu Chen ; Tian-Cheng Chen ࠎ̳ΦᖐĂ̙ዋϡܧ ˠέ̚ᦦռϲૺЍྈૅຎචົڱੑဥ Chang Kuan Yu Tang Charity Foundation The Bank is not a corporation structure, so it's'ss not subMect to the requirements. 0.31% 0.15% ANNUAL REPORT 2006 29 %% ͟ ͟ 17 17 ͡ ͡ 4 4 ѐ ѐ ۵ͧத 96 96 April 17, 2007 April 17, 2007 ect to the requirements. ect to the requirements. ectect to to the the requirements. requirements. ectect to to the the requirements. requirements. M M MM MM s not sub s not sub 's not sub 's not sub . Co., Ltd. 19.95% . Co., Ltd. estCo.,Ltd est Co., Ltd 5.50% Y Y ڌࢋ۵̝ڌˠ۵ڱ YY estest Co., Co., Ltd Ltd 2.00% .Co. . Co. 32.11% estest Co., Co., Ltd Ltd 2.00% estest Co., Co., Ltd Ltd 2.00% YY YY YY YY est Co., Ltd 2.00% est Co., Ltd estest Ltd. Ltd. 11% estest Co., Co., Ltd Ltd 2.00% Y Y YY .. Co., Co., Ltd. Ltd. 10.91% YY YY or Holder of Shares in Institutional Shareholder ShinShin Kong Kong Life Life Insurance Insurance Co., Co., Ltd. Ltd. 5.02% M Ma LongLong Bon Bon De De BankBank Of Of Taiwan TaiwanBasoBaso In In 28.46% Ruey-ShiangRuey-Shiang In In Jia-Jia In Ruey-ShinEnterpriseCo.,Ruey-ShinEnterpriseCo., Ltd. Ltd.Jia-Jia In 19.00% ChunChangDe ChunChangDe TaiwanPostTaiwanPost Co., Co., Ltd. Ltd. 0.88% Yuan-ShenYuan-Shen In In Jia-JiaJia-Jia In In Tong-RungTong-Rung In In Shiu-ShenInShiu-ShenIn ShareShare TongTong Shin Shin In In Biau-JieBiau-Jie Co., Co., Ltd. Ltd. 30% estor A, L.P. 100% estor A, L.P. 100% 757,120,460340,474,000 12.19 5.48 Y Y 1,560,225,000 25.13 ѣ۵ᇴ Wen-ShiungWen-Shiung Suen SuenJiun-NanJiun-Nan Tsai TsaiShiau-FenChenShiau-FenChen 0.31% 0.17% 0.20% ᐷ֣ฟ൴۵Њѣࢨ̳Φ ᄂ៉ᅙҖ۵Њѣࢨ̳Φ ܲ౼Ըྤ۵Њѣࢨ̳Φ ࠎ̳ΦᖐĂ̙ዋϡ Trust Fund The Bank is not a corporation structure, so it's not subܧδᅙҖԸྤ͗ JP Morgan Chase Bank as trustee for the Norges Bank̚ރ࡚થᇝॲ఼̂ᅙҖგॗ ܆ၱᗁᒚ؎ົ Standard Chartered as trustee forችܷշ the Pension & Health Trust Fund ౘ̈ܛາЍˠုܲᐍ۵Њѣࢨ̳Φ ᄂ៉ฎ߆۵Њѣࢨ̳Φ ग͛ฯ ളχგᓑЪநିົੜЃ ܧࠎ̳ΦᖐĂ̙ዋϡ The Bank is not a corporation structure, so it's not sub ༄ேԸྤ۵Њѣࢨ̳Φ ၷԸྤ۵Њѣࢨ̳Φڌ Ըྤ۵Њѣࢨ̳Φ ָΐԸྤ۵Њѣࢨ̳Φ ᴣԸྤ۵Њѣࢨ̳Φ ኰԸྤѣࢨ̳Φ လָԸྤ۵Њѣࢨ̳Φڌ ༄າᎸຽ۵Њѣࢨ̳Φ ฟ൴۵Њѣࢨ̳Φ 100%پNomura Holdings, Incᇾଥ۵Њѣࢨ̳Φ ཏ ,LTD ,LTD , LTD TPG Newbridge TaishinII, L.P. 100% ,LTD ǶǶ Ƕ ,LTD ,LTD ,LTD , LTD TaishinCo-In ǶǶǶ or Institutional Shareholders of the Bank M NameName ੑ߆ొ ЩჍڌˠ۵ڱ ѣ۵ᇴăͧத̈́ڌ۵̝ Щ͗ڌ۵ 5% Institutional Shareholder Ministry of Finance estment (Taiwan) PTE. Ltd. Y າЍˠုܲᐍ۵Њѣࢨ̳Φ Ꮙଠ۵۵Њѣࢨ̳Φܛέາ or Shareholders of Ma M QEQE INTERNATIONAL INTERNATIONAL (L) (L) LIMITED LIMITED Quantum Partners LDC 100% TAISHINTAISHIN CO-INVESTOR CO-INVESTOR HOLDINGS HOLDINGS TAISHINTAISHIN CO-INVESTOR CO-INVESTOR HOLDINGS HOLDINGS I, I, LTD LTD TaishinCo-In TPGTPG NEWBRIDGE NEWBRIDGE TAISHIN TAISHIN HOLDINGS HOLDINGS I, I, LTD LTD TPG Newbridge TaishinI, LP. 100% TPG NEWBRIDGE TAISHIN HOLDINGS TPG NEWBRIDGE TAISHIN HOLDINGS Taishin Financial Holding Co.,Ltd. Shin Kong Life Insurance Co., Ltd. ۵࿅ ڌˠ۰ࢋ۵ڱࠎڌࢋ۵ 4.The Shareholders Holding a Stake of 5% or More 4. 3. 3.Ma έ៉ˠုܲᐍ۵Њѣࢨ̳Φ Taiwan Life Insurance Co. Ltd ֽҘֲથ ֽҘֲથ ౻̍ܲᐍԊ Bureau of Labor Insurance (Ըྤ͗ TempletonForeignFund(aSeries of TempletonFund,Incܛপᚗᖳγ઼ૄܛૄ Φ̝րЕ̳ܛܲგপᚗᖳૄצ࡚થᇝॲ఼̂ᅙҖέΔ̶Җ έາ১ྨ۵Њѣࢨ̳Φ Taishin Leasing & Financing થՅֲ߷ԸྤĞέ៉ğ۵Њѣࢨ̳Φ Nomura Asia InֽҘֲથ ֽҘֲથ າΐ ֽҘֲથ (ְ̈́Ⴞ၅ˠྤफ़(2.5 5.Board of Directors and SuperYisors(2) 96 ѐ4͡17͟ April 16, 2007 Ъϲّଐԛ(ො2) ࣘЇ̳ฟ൴Җ̳Φ ୧І ྤॾ୧І (ො1) Quali¿cation Independent status ϲְछᇴ Quali¿cations(Note1) (Note 2) Number of serYeasan ؖЩ independent director of Name ABC12345678910public companies. Po-ShinChangڟૺұ Henry C.S.KaoإԠ ॳАྺHsien-Nung Kuei ͳ͛Charles W. Y. Wang ӓሏCheng Ching Wu ౘஏҐJulius Chen ౘޙԠEric K. Chen ̚ ර ౘ֚ߌChen-Jau Chen ϔ Thomas K.K.Lin઼ڒ ઼ HsienChangWuپӓጳ ˝ ˩ ૺؠϔTimothy Chang ̣ ߆ጳCheng-Hsien Lin 2ڒ ѐ ą ѐ ૺChing-Hsi Chang ಡ ఄ౼ၷSheng-Rong Chuang Ꮵ͛ᚥWen-Hsien Lai ༩˧Diao Li Linڒ 30 ߟѽսངHsiu ChuanKo ౘ˿ॲTu-Kung Chen Yang-Tzong Tsay؟ችೳ ܘᇇၓTeo Chang Chiu ො1ĈЧְăႾ၅ˠߏӎѣ̣ѐͽ˯̍үགྷរ̈́˭ЕຽྤॾĈ Note 1ĈDirectors or SuperYisors shall meet one of the following professional requirements, together with at least ¿Ye years work experience. ˯ચăੑચăົࢍٕ̳Φຽચٙื࠹ᙯࡊր̝̳ռϲ̂ੰ७ᓾरͽڱA. થચă A. Aninstructoror higher up ina departmentof commerce, law, ¿nance, accounting, or other academic department related to company business ina public or priYate Munior college, college, or uniYersity. ᖚຽ̈́ԫఙˠࣶܝरăົࢍरٕᄃ̳Φຽચٙᅮ઼̝छ҂ྏ̈́ॾᅳѣᙋ३̝ޠăءăᑭ၅ءڱ .B B. A Mudge, public prosecutor, attorney, certi¿ed public accountant, or other professional or technical specialist who has passed a national examination and has beenawarded a certi ¿cate in a professional capacity that is necessary for company business. ચăੑચăົࢍٕ̳Φຽચٙื̝̍үགྷរڱC. થચă C. HaYing work experience in the area of commerce, law, ¿nace or accounting, or otherwise necessary for company business. Ч୧Іཱི˭͞۩ॾ̚χņŇĄٺᏴЇ݈˟ѐ̈́ЇᖚഇมЪ˭Ч୧І۰Ăኛٺො2ĈЧְăႾ၅ˠ Note 2: During the two years before beingelected or Muring the term of¿ce, directors or superYisors shall meet the following terms with ņŇ Mark. ဌˠĄצࠎᅙҖٕᙯܼЋຽ̝ܧ (1) (1) Neither employees of Bank nor its af¿liates. ᅙҖٕᙯܼЋຽְ̝ăႾ၅ˠ(ҭтࠎᅙҖٕϓ̳ΦăᅙҖۡତ̈́มତѣܑՙᝋ̝۵Њ࿅Ѻ̶̝̣˩̝̳̄Φ̝ϲְ۰Ă̙дѩࢨ)Ąܧ (2) (2) Neither a director or a superYisor of Bank nor its affiliates, unless the person is an independent director of the company, its parent company, or any subsidiary in which the company holds, directly or indirectly, more than 50 percent of the Yoting shares. Ąڌώˠ̈́੨ઊăϏјѐٕ̄̃ͽˠЩཌྷѣᅙҖ̏൴Җ۵ЊᓁᗝѺ̶̝˘ͽ˯ٕ۵݈˩Щ̝ҋˠ۵ܧ (3) (3) Not anindi Yisual shareholder who holds shares, together with those held by the person's spouse, minor children, or held under others' names, in an aggregate amount of 1% or more of the total outstanding shares of the company or ranks among the top ten shareholders who are natural persons in terms of the share Yolume held. ഠٙЕˠࣶ̝੨ઊă˟Ꮠඈͽ̰Ꮠᛳٕ̣Ꮠඈͽ̰ۡրҕᏐᏐᛳĄˬ݈ܧ (4) (4) Not a spouse or relatiYe within the second degree of kinship, or lineal relatiYe withinthe ¿fth degree of kinship, of any of the persons in the preceding three subparagraphs. ဌˠĄצְăႾ၅ˠٕ̝ڌˠ۵ڱဌˠĂٕ۵݈̣ЩצְăႾ၅ˠٕ̝ڌˠ۵ڱ˯ତѣᅙҖ̏൴Җ۵ЊᓁᗝѺ̶̝̣ͽۡܧ (5) (5) Not directors, superYisors, or employees of a corporate shareholder that directly holds 5% or more of the total outstanding shares of the bank or ranks among the top 5 corporate shareholders in the terms of share Yolume held. Ąڌপؠ̳Φٕ፟ၹְ̝(நְ)ăႾ၅ˠ(Ⴞְ)ăགྷநˠٕ۵Ѻ̶̝̣ͽ˯۵ֽ̝ـᄃᅙҖѣੑચٕຽચܧ (6) (6) Not directors, superYisors, or executiYeof¿cer, or shareholder holding 5% or more shares of a speci¿c company or institution and who also has ¿nancial or business dealings with the company. ચٕᏙྙ̝ຽˠ̀ăྤăЪူă̳Φٕ፟ၹ̝ЋຽăЪူˠăְ(நְ)ăႾ၅ˠ(Ⴞְ)ăགྷநڇચăੑચăົࢍඈڱࠎᅙҖٕᙯܼЋຽ೩ֻથચăܧ (7) ˠ̈́੨ઊĄ (7) Not a professional, or owner, partner, director, superYisor, or executiYeof¿cer and the spouse thereof of a sole proprietorship, partnership, company,or institution that proYides commercial, legal, ¿nancial, accounting or consulting serYices to the bank or to any af¿liates. Ϗᄃְมѣ੨ઊٕ˟Ꮠඈͽ̰̝ᏐᛳᙯܼĄ (8) (8) Not a spouse or relatiYe within the second degree of kinship within directors. ௐ30୧Чഠଐְ̝˘ĄڱϏѣ̳Φ (9) NULRPR 2006 REPORT ANNUAL (9) Not any of the circumstances in the subparagraphs of Article 30 of the Company Act. ˠܑٕˠ༊ᏴĄڱăعௐ27୧ఢؠͽ߆ڱϏѣ̳Φ (10) (10) Not elected inthe capacity of a go Yernment agency, a Muristic person, or a representatiYe thereof, as proYided inthe Article 27 of the CompanyAct. 31 ְăႾ၅ˠ̈́ࢋགྷநˠ Directors, SuperYisors and Management ચְ/ॳАྺ૱ إચְ/Ԡ૱ Managing Director / Managing Director/ Henry C. S. Kao Hsien-Nung Kuei ڟૺұ/ܜְ Chairman/ Po-ShinChang ̚ ර ϔ ઼ ˝ ˩ ̣ ѐ ą ѐ ಡ ચְ/ͳ͛ ૱ચְ/ӓሏ ְ/ౘ֚ߌ૱ Managing Director/ Managing Director/ Director/ Chen-Jau Chen 32 Charles W. Y. Wang Cheng Ching Wu ְ/ૺؠϔ پ ְ/ӓጳ઼ڒ/Ԡ ְޙְ/ౘ Director/ Eric K. Chen Director/ Thomas K.K.Lin Director/HsienChangWu Director/Timothy Chang ߆ጳ ְ/ૺ ְ/ఄ౼ၷ ְ/Ꮵ͛ᚥڒ/ְ Director/Cheng-Hsien Lin Director/Ching-Hsi Chang Director/ Director/ Wen-Hsien Lai Sheng-Rong Chuang ANNUAL REPORT 2006 33 ͛ځૺ / eVicePresident/ Y ౘ˿ॲ isor/ Tu-Kung Chen / Y ઘᓁགྷந Executi Ming-Wen Chang Ⴞ၅ˠ Super ཧ༱˿ / eVicePresident/ Y ܘᇇၓ isor/ Teo Chang Chiu / Y ઘᓁགྷந Executi Walter W. T. Yeh Ⴞ၅ˠ Super ང ᔁߌշ ѽս / e Vice President/ Y ߟ isor/ Hsiu ChuanKo / Y ઘᓁགྷந Executi Chao-NanHsieh Super Ⴞ၅ˠ ჯሇڒ / e Vice President/ Y ؟ችೳ isor/ Yang-Tzong Tsay / Y Ⴞ၅ˠ Super ઘᓁགྷந Executi William Lin isor/ Y ౘஏҐ / ˧༩ڒ / e Super Y ૱ዸႾ၅ˠ Executi Diao Li Lin ְࣘᓁགྷந Director & President/ Julius Chen (˟) ࢋགྷநˠྤफ़ b. Major Managers ૄ͟Ĉ96.2.28 Based on : Feb. 28, 2007 ੨ઊăϏјѐ ӀϡˠЩཌྷ дώҖЇᖚ̝੨ઊٕ Їგ͟ ̄̃ѣώҖ ѣώҖ۵ை ˟ඈᏐ̰ᙯܼ̝གྷந ѣώҖ ಏҜЩჍ ᖚჍ ؖЩ Date Started ۵ை۵ᇴ ۵ᇴ ࢋགྷĞጯğ። ϫ݈ࣘЇ̳Φ̝ᖚચ ˠ ۵ை۵ᇴ DiYision Title Name (Year/Month/ Shareholding Shareholding Prime Experience & Expectation Current Positions The Spouse or Shareholding Day) by Spouse & Under Others' RelatiYe within2 Tiers Minor Children Title of General Managers ᓁҖ ᓁགྷந ౘஏҐ 2007/02/01 ৸ࡗξϲ̂ጯұጆҹጯੰੑགྷჇ̀ Head Of¿ce President Julius Chen None None None EMSF,Baruch College The City UniYersity of None None New York Ꮙଠ۵̳Φᓁགྷநܛέາ President of Taishin Financial Holding Co., ܜέາ઼ᅫથຽᅙҖઘְ Vice Chairman of Taishin International Bank ܜᏉ̳Φְܛדέາை ̚ Chairmanof TaishinBills FinanceCorporation ර έ៉ిᜠྮ̳Φੑચܜ ϔ ઼ CFO of TaiwanHigh Speed Rail Corporation Җᓁགྷந̶̋ڗ઼࡚થຽᅙҖ ˝ ˩ VP & GM of Bank of America ᓁҖ ઘᓁགྷந ᔁߌշ 2000/11/18 44,091 ઼ϲᄂ៉̂ጯགྷᑻጯր ฟ൴઼ᅫԸྤ(۵)̳Φְ ̣ ѐ Head Of¿ce ExecutiYe Vice Chao-NanHsieh None None Economics, National Taiwan UniYersity Director of CDIB & Partners None ą ѐ President ၓ̼ᅙҖੑચܜ InYestment Holding Co., ܜಡ Senior Vice President & General VP & GM of ၓᅙܲᐍགྷࡔˠ(۵)̳Φְ CHB Treasury DiYision Chairman of CHB Insurance Brokerage Company ܜጯົࢍጯր ၓᅙˠ֗ܲᐍநˠ(۵)̳Φְ̂ڼ͛ 2003/07/04 175,151 ઼ϲ߆ځᓁҖ ઘᓁགྷந ૺ 34 Head Of¿ce ExecutiYe Vice Ming-Wen Chang None None Accounting, National Chengchi UniYersity Chairman of CHB Life Insurance None President Agency Company ჯሇ 2004/12/28 80,089 ռϲ୶ѯ͛நጯੰົࢍࢍጯր ၓᅙܲᐍགྷࡔˠ(۵)̳Φְ ڒ ᓁҖ ઘᓁགྷந Head Of¿ce ExecutiYe Vice William Lin None None Accounting & Statistics, Tamkang UniYersity Director of CHB Insurance None President Brokerage Company ጯր ၓᅙˠ֗ܲᐍநˠ(۵)̳ΦႾ၅ˠ ٽጯ઼ᅫ̂ڼᓁҖ ઘᓁགྷந ཧ༱˿ 2006/01/13 111,632 ઼ϲ߆ Head Of¿ce ExecutiYe Vice Walter W.T.Yeh None None International Trade, National Chengchi SuperYisor of CHB Life Insurance None President UniYersity Agency Company έ៉̈̚ЋຽᅙҖְ έΔγ๗གྷࡔĞ۵ğ̳Φְ Director of Medium Business Bank of Taiwan Director of Taipei Forex Inc. ᔁ͛ 2006/01/20 77,359 ռϲ୶ѯ͛நጯੰથጯր ܜְົ/৪३ Ї৪३ࣘ Board of SVP & Chief Secretary; Wen-Huang Hsieh None None Business, Tamkang UniYersity None None Directorsć SVP & DiYisionHead Secretariat DiYision ጯր ޠڱᚹዂ 2006/11/29 1,004 ռϲ઼̼͛̚ጯੰڒ (ᖚચܜந)ܜቊ८ ઘ Internal Auditing SVP & Deputy DiYision Yao-Huei Lin None None Law, Chinese Culture UniYersity None None DiYision Head (Acting SVP & DH) ͳፄអ 2006/01/20 82,723 ռϲ୶ѯ͛நጯੰᅙҖܲᐍጯր ၓᅙܲᐍགྷࡔˠ(۵)̳ΦႾ၅ˠ ܜˠ˧ྤ HumanResources SVP & DiYisionHead Tzer-LinWang None None Banking & Insurance,Tamkang UniYersity SuperYisor of CHB Insurance None DiYision Brokerage Company ࡻ 2006/01/20 64,432 ઼࡚৸ࡗPACEUNIVERSITYЋຽგந ܛౘ ܜથݡඉထ Product SVP & DiYisionHead Chin-Ying Chen None None ࡁտٙ None None Management MBA, Pace UniYersity of New York, USA DiYision ̄ᒉྻܜ SVP & General VP & GM of Electronic Business DiYision Ğ۵ğ̳ΦႾ၅ˠ ੨ઊĈ̰സ̶Җགྷநדщ 2006/01/20 60,221 67,403 ᖠРᏚ̂ጯЋຽგநࡁտٙ ̮ಱᙋޙ߉ ܜᒉྻ ܛྤ Treasury DiYision SVP & DiYisionHead James Shih None MBA, Saginaw Valley State UniYersity of SuperYisor of MasterLink Securities ౘϜ܆ Michigan, USA Corp. Spouse: Yu-Fen (Elaine) Chen, (GM of Nei-Ho Branch) ˠ None None None None None None None None None None None None None ewithin2Tiers Y The Spouse or дώҖЇᖚ̝੨ઊٕ ˟ඈᏐ̰ᙯܼ̝གྷந of General Managers Relati Φְ̳ Φְ̳ ) ) ۵ ۵ ( ( Φְ̳ ) ۵ ( None None None None None None None None Current Positions isor of Financial eSolution Y ϫ݈ࣘЇ̳Φ̝ᖚચ .ੑԈࡊԫ۵Њѣࢨ̳ΦႾ၅ˠ Super Co., Ltd Director of CHBAgency Life Company Insurance ၓᅙˠ֗ܲᐍநˠ Director of CHBAgency Life Company Insurance ၓᅙˠ֗ܲᐍநˠ Director of CHBBrokerage Insurance Company ၓᅙܲᐍགྷࡔˠ .ચ۵Њѣࢨ̳Φְ Director of LanAnLimit coڇᓑщ ersity Y ersity Y ision, CHB Y ersity ersity ersity Y Y Җ߆ࡊ Y ision,CHB ) Y ersity Y ersity Y ఼ ( ࢋགྷĞጯğ። e, National Chung Hsing Uni e, Feng Chia Uni Y Y ANNUAL REPORT 2006 35 Prime Experience & Expectation ersity ersity ersity ersity ersity Y Y Y Y Y ጯᅙҖጯր Money & Banking,Uni National Chengchîڼϲ߆઼ ጯགྷᒉგநࡁտٙ EMBA, National Chengchi Unîڼϲ߆઼ ઼ϲ̚Ꮈ̂ጯЪүጯր Cooperati ઼ϲ̚Ꮈ̂ጯགྷᑻጯր Economics, National Chung Hsing Uni ጯ౾̀ Ph.D.in Political Economics,Uni Tamkangڱռϲ୶ѯ̂ጯ઼࡚ࡁտٙ Vice President ofέ៉̈̚ЋຽᅙҖְ Accounting Di Director of Medium Business Bank of Taiwan ܜన۩̚Җ Administration,National Chengchi OpenCollege Junior of Commerce ၓ̼ᅙҖົࢍઘܢጯ̂ڼռϲెϥጯੰЪүጯր Cooperati ઼ϲ߆ ӓ̂ጯγ઼ᄬ͛ጯր Foreign Languages,Soochow Uniڌռϲ SVP & GM of Domestic Banking Di ܜጯੑඁጯր Public Finance &Uni Taxation, National Chengchi ၓ̼ᅙҖ઼̰ᒉྻ̂ڼϲ߆઼ ઼ϲјΑ̂ጯົࢍࢍጯր Accounting & Statistics,Uni National Cheng Kong ጯր International Trade, Tamkang Uniٽռϲ୶ѯ͛நጯੰ઼ᅫ ጯր International Trade,Tamkang Uniٽռϲ୶ѯ͛நጯੰ઼ᅫ ઼ϲ̚Ꮈ̂ጯྺຽགྷᑻጯր Agricultural Economics, NationalUni Chung Hsing Title ۵ᇴ None None None None None None None None None None None None None Shareholding ӀϡˠЩཌྷ ѣώҖ۵ை Under Others' None None None None None None None ۵ை۵ᇴ by Spouse & Shareholding ੨ઊăϏјѐ ̄̃ѣώҖ Minor Children ѣώҖ ۵ை۵ᇴ Shareholding Day) Їგ͟ 2006/1/20 100,009 2003/11/01 137,217 108,921 2003/08/22 169,405 2006/01/20 12,305 2006/01/20 2,488 11,496 2006/01/20 263,056 6,700 2003/06/24 30,953 2003/06/24 94,673 13,374 2006/01/20 131,659 2004/12/28 148,083 2006/01/20 110,629 2006/01/20 202,630 13,305 2006/01/20 53,729 12,506 Date Started (Year/Month/ ؖЩ Name ѯޙᎸ ౘࡌ͡ ਃᓐჅ مޙ ځ۾഼ሗ അ ၿܦڒ ጳځڒ เ؈ Ϯࡻර າ ౘ̯ซ઼ڒ ধڒ Gwo ShinLin Yin-Hwa Shih HuanLieh Lin Chi-Tay Huang Ming-Hsien Lin Tsung-Pi Weng Chaur-Her Tang James Y.G.Chen Fangming Tzeng Chiou-Yueh Chen Alexander C.H.Lin Chen-Shin Chaing Chien-Chung Yang isionHead isionHead isionHead isionHead isionHead isionHead isionHead isionHead isionHead isionHead isionHead Title ᖚჍ Y Y Y Y Y Y Y Y Y Y Y ܜ SVP & Center Head གྷந VP & GM ܜ SVP & Di ܜ SVP & Di ܜ SVP & Di ܜ SVP & Di ܜ SVP & Di ܜ SVP & Di ܜ SVP & Di ܜ SVP & Di ܜ SVP & Di ܜ SVP & Di ܜ SVP & Di ision Y ision ision Y Y ision Di ಏҜЩჍ Y ision ision ision ision ision ision ision ision Y Y Y Y Y Y Y Y ௐ˘ડᒉྻ Commercial Regional Center 1 ઼ᅫܛᏉຽચ̶Җ Offshore Banking Branch ᓁચ General Affairs Di үຽ Operations Di ੑચგந Financial Management Di ྤੈ IT Di ๅᝋგந LoanAssets Management Di ࢲᐍგந Risk Management Di ܫგந Credit Management Di ̄ᒉྻ E-Business Di ઼̰ᒉྻ Domestic Banking Di ઼ᅫᒉྻ International Banking Di ܫ Trust Di ੨ઊăϏјѐ ӀϡˠЩཌྷ дώҖЇᖚ̝੨ઊٕ Їგ͟ ̄̃ѣώҖ ѣώҖ۵ை ˟ඈᏐ̰ᙯܼ̝གྷந ѣώҖ ಏҜЩჍ ᖚჍ ؖЩ Date Started ۵ை۵ᇴ ۵ᇴ ࢋགྷĞጯğ። ϫ݈ࣘЇ̳Φ̝ᖚચ ˠ ۵ை۵ᇴ DiYision Title Name (Year/Month/ Shareholding Shareholding Prime Experience & Expectation Current Positions The Spouse or Shareholding Day) by Spouse & Under Others' RelatiYe within2 Tiers Minor Children Title of General Managers ଘᇇ 2006/01/20 94,470 37,428 ռϲెϥጯੰᅙҖܲᐍጯր ڒ ܜௐ˟ડᒉྻ Commercial SVP & Center Head Wei-The Lin None Banking & Insurance, Feng Chia UniYersity None None Regional Center 2 ௐˬડᒉྻ ܜ เ઼ࠡ 2006/01/20 62,730 104,378 ռϲెϥጯੰЪүጯր Commercial SVP & Center Head Gwo-ChenHuang None CooperatiYe, Feng Chia UniYersity None None Regional Center 3 ௐαડᒉྻ ܜ ᘲ࡚ഏ 2003/11/01 95,845 ઼ϲ̚Ꮈ̂ጯགྷᑻጯր Commercial SVP & Center Head Mei-Tung Lou None None Economics, National Chung Hsing UniYersity None None Җགྷந̶ڒRegional Center 4 έΔ̶Җằ VP & GM of Taipei and Shihlin Branch ࢶപ̶Җઘந VP & RepresentatiYe of Hong Kong Branch ̚ ර ϔ ઼ ௐ̣ડᒉྻ ܜ Ꮒᐅᕃ 2006/01/20 228,342 867 ռϲెϥጯੰົࢍጯր ˝ Commercial SVP & Center Head Joe Shiao None Accounting, Feng Chia UniYersity None None ˩ Regional Center 5 ̣ ௐ̱ડᒉྻ ܜ ᆒҹড় 2006/01/20 61,757 ઼ϲᄂ៉̂ጯྺຽགྷᑻጯր ѐ Commercial SVP & Center Head Keh-Yu Liu None None Agricultural Economics, National Taiwan None None ą ѐ Regional Center 6 UniYersity ಡ ᒉຽొ གྷந ңѼР 2003/11/01 105,270 ࠷ϲέ̚થᖚ Business VP & GM Mi-Chi Ho None None ProYincial Taichung Senior Commercial None None Department Vocational School ෳྈ 2004/09/01 131,546 1,369 ռϲెϥጯੰᅙҖܲᐍጯր ڒ ᓁొ̶Җ གྷந 36 Central Branch VP & GM Kweiy-Yuh Lin None Banking & Insurance, Feng Chia UniYersity None None གྷࡔથέΔᓁ Ї ోц 2001/05/16 13,436 ռϲ̂Тથຽࡊጯ७ܲᐍࡊ דᙋ ̳Φ VP & GM Yeu-Jaw Guo None None Insurance, Tatung Institute of Commerce and None None Taipei Securities Technology Broker གྷࡔથέ̶̚ Ї เπР 2001/11/09 9,000 2,911 ռϲ̂Тથຽࡊጯ७Ћຽგநࡊ דᙋ ̳Φ VP & GM Ping-Jyi Hwang None Business Administration, Tatung Institute of None None Taichung Commerce and Technology Securities Broker న۩̚થ ܢགྷࡔથݑᄂ̚ Ї เ༈ 2006/01/20 6,842 ઼ϲᄂ̚થຽࡊጯ७דᙋ ̶̳Φ VP & GM Hui-Ying Huang None None ົࢍࡊ None None Nan-Taichung Accounting, Open Junior College of National Securities Broker Taichung Institute of Commerce న۩̚Җ(఼)Җ߆ࡊ ܢጯ̂ڼέΔ Ї ዑ̮ܲ 2006/01/20 39,544 864 ઼ϲ߆ڌགྷࡔથדᙋ ̶̳Φ VP & GM Bao-YuanCheng None Administration, National Chengchi Open Junior None None Tung-Taipei College of Commerce Securities Broker Ꮙᒉྻࡁտٙ ܛགྷࡔથ˛ኰ̶ Ї ᐑ 2005/07/19 22,160 33,936 ઼ϲฯௐ˘ࡊԫ̂ጯדᙋ ̳Φ VP & GM Meng-Ling Yang None Master of Financial Operation Institute, None None Chi-Hsien National Kaohsiung First UniYersity of Science Securities Broker and Technology న۩̚Җ(఼)Җ߆ࡊ ܢጯ̂ڼέ̶̚Җ གྷந ૺࢦฯ 2004/07/09 93,093 ઼ϲ߆ Taichung Branch VP & GM Jong-Shoung None None Administration, National Chengchi Open Junior None None Chang College of Commerce Δέ̶̚Җ གྷந ᆵ̥ 2002/06/12 120,593 ռϲ୶ѯ͛நጯੰ̍થგநጯր Pei-Taichung VP & GM Kuan-Jen Wang None None Business Administration, Tamkang UniYersity None None Branch ѻ 2003/11/01 2,634 ռϲᅃ̥̂ጯགྷᑻጯր ڗݑέ̶̚Җ གྷந ӓ Nan-Taichung VP & GM Sung-Chu Wu None None Economics, Fu Jen Catholic UniYersity None None Branch ˠ None None None None None None None None None None None None None None None None None None None ewithin2Tiers Y The Spouse or дώҖЇᖚ̝੨ઊٕ ˟ඈᏐ̰ᙯܼ̝གྷந of General Managers Relati None None None None None None None None None None None None None None None None None None None Current Positions ϫ݈ࣘЇ̳Φ̝ᖚચ ersity ersity Y Y ersity Y ersity Y ersity Җ߆ࡊ ersity ) Y Y ersity ఼ Y erseas Chinese ( Y liated with National Taipei ¿ ࢋགྷĞጯğ። ANNUAL REPORT 2006 37 Prime Experience & Expectation incial Taichung Senior Commercial ersity Y Y ռϲ୶ͪ̍થგநࡊጯ७ᅙҖგநࡊ Business Administration, Tamsui Oxford College ጯր Law, National Chengchi Uniޠڱጯ̂ڼϲ߆઼ ռϲ͵ࠧາჷࡊጯ७ᇃᇫෛࡊ Journalism, World of College ᄂ៉࠷ϲᖳࣧ৺થຽᖚຽጯ७ National Feng YuanVocational Senior School Commercial ᄂ៉࠷ϲᄂ̚થຽࡊጯ७Ћຽგநࡊ Business Administration, NationalInstitute Taichung of Commerce ռϲెϥጯੰᅙҖܲᐍጯր Banking & Insurance, Feng Chia Uni ጯᅙҖጯր Banking, National Chengchi Unîڼϲ߆઼ થຽࡊጯ७̍ຽົࢍࡊ Accounting, Ling Tung Collegeڌռϲᑏ ռϲ୶ѯ͛நጯੰ̍થგநጯր Business Administration, Tamkang Uni ࡊ International Trade, AdministrationNational College Taipei of Institute of Commerceٽన۩̚થ ઼ᅫܢϲᄂΔથຽࡊጯ७઼ న۩̚ጯ ᑕϡથጯր OpenCollege Af College of BusinessܢϲέΔથຽԫఙጯੰ઼ ռϲᅃ̥̂ጯЋຽგநጯր Business Administration, FuUni Jen Catholic ࠷ϲέ̚થᖚ Pro Vocational School ጯր International Trade, Tamkang Uniٽռϲ୶ѯ͛நጯੰ઼ᅫ ઼ϲ̚Ꮈ̂ጯགྷᑻጯր Economics, National Chung Hsing Uni ᄂ៉࠷ϲᄂ̚થຽࡊጯ७ᅙҖܲᐍࡊ Banking & Insurance,Institute National of Taichung Commerce Institute of Technology ࡊ International Trade, The OٽռϲဋЍથຽࡊጯ७઼ᅫ న۩̚Җ Administration, National ChengchiCollege Open of Junior Commerceܢጯ̂ڼϲ߆઼ ռϲᅃ̥̂ጯགྷᑻጯր Economics, Fu Jen Catholic Uni Title ۵ᇴ None None None None None None None None None None None None None None None None None None Shareholding ӀϡˠЩཌྷ ѣώҖ۵ை Under Others' None None None None None None None None None None None ۵ை۵ᇴ by Spouse & Shareholding ੨ઊăϏјѐ ̄̃ѣώҖ Minor Children ѣώҖ ۵ை۵ᇴ Shareholding Day) Їგ͟ 2003/11/20 108,088 2,413 2003/11/01 138,539 2006/01/20 64,774 420 2006/01/20 59,073 2006/01/20 100,000 200,000 2005/07/19 30,048 67,292 2002/10/25 34,565 2003/06/24 6,000 2004/02/19 588 4,253 2004/09/01 15,158 2006/01/20 45,081 2004/09/01 39,947 2006/02/10 82,782 2005/04/01 30,720 2006/01/20 17,007 15,380 8,300 2004/09/01 98,997 2004/07/09 54,072 10,000 2002/10/04 29,347 2004/02/19 103,751 1,552 Date Started (Year/Month/ ؖЩ Name ૺϒె เ႔ܦ ౘጳዂ ࡔ̥፨ ૺ፨ϣ ၷேڒ เշ ፘڗՂ ӓ༄ฯ ౘܛᅾ ౘϠ൴ ᆵཌྷڒ ᑛࠏዂ ฯڌͳ ߟໆே مഫܷ ች̮ Ղ౼ฯ ᔁܛ C.F.Chang Paul Huang Jen-Tse Chi Kuan-Yih Lin Ping-Huei Tai Song-Shu Lee Yuan-Sen Tsai Jui-Hsiung Wu Jer-TenChang Jin-Yong Shieh Shen-Fei Chen Jin-Kwey Chen Jen-Shyang Ke Sheng-Fa Chen Jiunn-Chwng Yu Rong-Shyang Lin Kuan-Nan Huang Sheng-Hsiung Lee Tung Shiung Wang Title ᖚჍ གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM ision Y Di ಏҜЩჍ ϖሄ̶Җ Yunglo Branch Δܝ̶Җ PeimenBranch Ҙܝ̶Җ HsimenBranch ᗕ̶Җ Shuangyuan Branch ༱ර̶Җ Wanhua Branch ̶̼Җ Tunhwa Branch ݱ̶̰Җ Chengnei Branch ᄂΔ̶Җ Taipei Branch ᛂ፫̶Җ Suao Branch Җ Lotung Branch̶ڌᘲ ᜋ̶Җ IlanBranchآ ษ̶Җ Tung-Keelung Branchૄڌ ̥ຑ̶Җ Jenai Branch ૄษ̶Җ Keelung Branch Ҙ͏̶Җ HsitunBranch ݑ͏̶Җ Nantun Branch ͪ⏬̶Җ Shuinan Branch ̚പ̶Җ Chung-Kang Branch Δ͏̶Җ PeitunBranch ੨ઊăϏјѐ ӀϡˠЩཌྷ дώҖЇᖚ̝੨ઊٕ Їგ͟ ̄̃ѣώҖ ѣώҖ۵ை ˟ඈᏐ̰ᙯܼ̝གྷந ѣώҖ ಏҜЩჍ ᖚჍ ؖЩ Date Started ۵ை۵ᇴ ۵ᇴ ࢋགྷĞጯğ። ϫ݈ࣘЇ̳Φ̝ᖚચ ˠ ۵ை۵ᇴ DiYision Title Name (Year/Month/ Shareholding Shareholding Prime Experience & Expectation Current Positions The Spouse or Shareholding Day) by Spouse & Under Others' RelatiYe within2 Tiers Minor Children Title of General Managers થຽࡊጯ७ᅙҖܲᐍࡊ ڌј̶Җ ઘந(நགྷநᖚચ) ႔ራ 2007/02/26 9 48,663 ռϲᑏޙ Chiencheng VP & Deputy GM Han-Chang Yang None Banking & Insurance, Ling Tung College None None Branch (Acting VP & GM) ઼ϲ̚Ꮈ̂ጯགྷᑻጯր 20/01/2006 ځТ̶Җ གྷந ౘ̂ Tatung Branch VP & GM Ming Chen None None None Economics, National Chung Hsing UniYersity None None ጯր ٽϔϠ̶Җ གྷந ͳщϮ 2006/01/20 183,970 ռϲెϥጯੰ઼ᅫ Min-Sheng Branch VP & GM An-Shi Wang None None International Trade, Feng Chia UniYersity None None Їᖚώمԙഫܷ̝؍ Δྮ̶Җ གྷந ૺཌྷ६ 2006/01/20 400 ઼ϲ̚Ꮈ̂ጯЋຽგநጯր ̋̚ Chungshan North VP & GM Ji-Lang Chang None None Business Administration, National Chung None Җݑ͏̶Җགྷந Rd.Branch Hsing UniYersity Brother inLaw Ĉ ̚ Jiunn-Chwng Yu(VP ර & GM of Nantun ϔ Branch) ઼ ᇇ 2006/01/20 2,922 ᄂ៉࠷ϲᄂݑ৺થຽᖚຽጯ७ ڠڒ Ѝ̶Җ གྷந ˝ ˩ Ching-Kuang VP & GM Wu-Te Lin None None National Tainan Senior Commercial Vocational None None ̣ Branch School Җ གྷந ᎊုщ 2006/01/200 47,878 1,963 ઼ϲ۩̂̚ጯથጯր ̶઼ޙ ѐ ą Chien-Kuo Branch VP & GM Shou-AnLu None Business, National Open UniYersity None None ѐ Җ གྷந ౘᐁਕ 2006/01/20 326 ઼ϲ̚Ꮈ̂ጯੑඁጯր ̶ڒಡ Р ChilinBranch VP & GM Shyi-Neng Chen None None Public Finance & Taxation, National Chung None None Hsing UniYersity щ 2006/01/20 123,000 110,000 ઼ϲᄂ̚થຽࡊጯ७Ћຽგநࡊ ؟Җ གྷந Ꮵ̶ྮڌщܜ 38 Chang-An E.Rd. VP & GM Tzong-An Lai None Business Administration, National Taichung None None Branch Institute of Commerce થຽࡊጯ७ࢍࡊ ڌ ռϲᑏ 23,333 20/01/2006 ٻҖ གྷந ዑፘ̶ܝڌ Tungmen Branch VP & GM Chu-Wang Cheng None None Accounting, Ling Tung College None None ࡊ ٽϒ̶Җ གྷந ၐѐԈ 2004/09/01 7,145 ռϲဋЍથຽࡊጯ७઼ᅫ̚ Chung-Cheng VP & GM Nien-Hong Liao None None International Trade,The OYerseas Chinese None None Branch Institute of Technology ጯր ޠڱӓ̂ጯڌҖ གྷந ૺჯՄ 2006/01/20 53,092 92,230 ռϲ̶ܩΟ Kuting Branch VP & GM Wei-Tsair Chang None Law, Soochow UniYersity None None Ꮙጯր ܛҖ གྷந ᑛૄј 2006/01/20 73,651 ռϲ୶ͪ̍થგநጯੰੑચ̶ྮڌԂم Chung-Hsiao Tung VP & GM Chicheng Tai None None Banking & Finance, Tamsui Oxford College None None Lu Branch ༄Ꮈ 2006/01/20 114,489 ռϲెϥጯੰᅙҖܲᐍጯր ڒ ϖߋ̶Җ གྷந Yung-Chun VP & GM Rucy-Shing Lin None None Banking & Insurance, Feng Chia UniYersity None None Branch ց̂ጯЋຽგநࡁտٙ ځ 2003/11/20 56,712 ࡻ઼ұܭ щ̶Җ གྷந̂ TaanBranch VP & GM Lawrence Hou None None MBA, UniYersity of Birmingham, UK None None ӓ̂ጯགྷᑻጯր ڌཌྷ̶Җ གྷந ᗬ༱ࠀ 2006/01/20 120,000 ռϲܫ Hsin-Yi Branch VP & GM W.S Way None None Economics,Soochow UniYersity None None ̶Җ གྷந ӓҥᗉ 2003/06/24 74,216 392 ઼ϲᄂ̚થຽࡊጯ७ᅙҖܲᐍࡊ ̥ Jen-Ho Branch VP & GM Tso-ChenWu None Banking & Insurance, National Taichung None None Institute of Commerce ռϲెϥጯੰົࢍጯր 58,842 20/01/2006 ڠέΔ͵̶͕̚Җ གྷந ጳ Taipei World Trade VP & GM Hsian-Wu Yang None None Accounting, Feng Chia UniYersity None None Center Branch ጯր ޠڱҖ གྷந ౘ̬͈ 2003/04/04 961 ઼ϲᄂ៉̂ጯ̶ڌݱ Chengtung Branch VP & GM Jieh-Fu Chen None None Law, National Taiwan UniYersity None None ̚૬̶Җ གྷந ౘԠј 2006/01/20 3,351 16,000 ռϲ઼ᅫથຽࡊጯ७Ћຽგநࡊ Chunglun Branch VP & GM Chih-ChenChen None Business Administration, International College None None of Commerce ision) Y ˠ None None None None None None None None None None ችፘ ewithin2Tiers ܜ߉ޙщ Y YuanBranch) The Spouse or Spouse: James Spouse: Chu-Shu Treasury Di Shih (SVP & GM of ੨ઊĈྤܛᒉྻ ੨ઊĈޥ̶Җགྷந дώҖЇᖚ̝੨ઊٕ ˟ඈᏐ̰ᙯܼ̝གྷந Tsai (VP & GM of Sy of General Managers Relati None None None None None None None None None None None None None None None None None Current Positions ϫ݈ࣘЇ̳Φ̝ᖚચ None None None None None ersity Y ersity ersity Y Y erseas erseas Y Y ersity of New Y ersity Y ersity Y ࢋགྷĞጯğ። ANNUAL REPORT 2006 39 Prime Experience & Expectation ռϲ̂Т̍ጯੰ̍થგநጯր Business Administration, Tatung Uni හநղҹᅊ̂ጯგநྤੈࡁտٙ M.Sc, Fairleigh DickinsonJersey, Uni USA ռϲဋЍથຽࡊጯ७Ћຽგநࡊ Business Administration, TheChinese O College of Commerce ռϲ୶ѯ̂ጯᅙҖጯր Banking, Tamkang Uni ᄂ៉࠷ϲາѻ৺થຽᖚຽጯ७ National Hsin ChuHigh Commercial School Vocational ռϲెϥጯੰᅙҖܲᐍጯր Banking & Insurance, Feng Chia Uni ռϲ୶ѯ͛நጯੰ̍થგநጯր Business Administration, Tamkang Uni Ꮙࡁտٙ MBA Tamkang Uniܛռϲ୶ѯ̂ጯੑચ ৺થຽᖚຽጯ७ ShihlinHigh School of CommerceڒᄂΔᦦϲ̀ ռϲ̂Тથຽࡊጯ७ົࢍࡊ Accounting, Tatung InstituteTechnology of Commerce and ৺̚ጯ National Yuanlin Senior High Schoolڒᄂ៉࠷ϲࣶ ռϲဋЍથຽࡊጯ७Ћຽგநࡊ Business Administration, TheChinese O Institute of Technology Title ۵ᇴ None None None None None None None None None None None None ersity ersity Shareholding ӀϡˠЩཌྷ ѣώҖ۵ை Under Others' Y Y ռϲ̂Тથຽࡊጯ७ົࢍࡊ Accounting, Tatung Institute ofTechnology Commerce and ռϲ઼̼͛̂̚ጯᅙҖܲᐍጯր Banking & Insurance,Uni Chinese Culture ᄂ៉࠷ϲᄂ̚થຽࡊጯ७ົࢍࢍࡊ Accounting & Statistics,Institute National of Taichung Commerce ࡊ International Trade, Ming Chuan Collegeٽռϲᅛ็̃̄થຽࡊጯ७઼ᅫ ռϲ୶ѯ̂ጯ઼࡚ࡁտٙ Graduate Institute ofUni American Study, Tamkang None None None None None None ۵ை۵ᇴ None None None None None by Spouse & Shareholding ੨ઊăϏјѐ ̄̃ѣώҖ Minor Children ѣώҖ ۵ை۵ᇴ None None Shareholding Day) None Їგ͟ 2005/04/01 52,667 2004/07/08 67,403 60,221 2003/04/04 50,123 87,262 2006/01/20 50,041 2004/07/08 870 123,645 2006/01/20 36,584 688 2006/01/20 141,617 144,204 2005/07/19 42,188 2005/04/01 18,524 2006/01/20 4,363 4,000 2004/09/01 104,277 2004/09/01 344 Date Started (Year/Month/ ؖЩ Name ѦԠ پາ ౘϜ܆ ౘϖᆇ ౘࣰฯ ีྻέ Щॼڒ அ؟ౘ ᔁս៣ ౘϮࡌ ܘГ षಈշ ૺ͛ෳ -TianChiou M 2003/04/04 30,868 2,284 2006/01/20 75,338 97 2004/02/19 25,759 2005/07/19 2004/02/19 10,000 Min-Tron Lin Yu-FenChen Shyu-NanShii Tia Yun-Tai Hsiang Yung-Yee Chen Wen-Kuei Chang Shyr-Chiou Chen Hsin-Chang Yang Sherry S.L. Hsieh Che-Hsiung Chen Chung-Yuan Chen ͫᩐ ށཌྷฯ ӓʹ เЏሇ ইፍර Title Biing-Yn Wu ᖚჍ Hsiao-Hwa Yin Chi-Chung Chu Yih-Shyoung You Chao Liang Huang གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM ision Y Di ಏҜЩჍ གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM ݑപ̶Җ Nankang Branch സ̶Җ Tung-Hu Branchڌ ̰സ̶Җ Nei-Hu Branch Җ Tachih Branch̶ۡ̂ Ҙ̰സ̶Җ His-Neihu Branch έΔ̶Җ Tung-Taipei Branchڌ Җ Hsi-Sung Branch̶ڗҘ Җ Sungshan Branch̶̋ڗ ͇ϓ̶Җ Tienmu Branch ΔԸ̶Җ Bei Tou Branch Җ ShihlinBranch̶ڒ̀ ѯ̶Җ Sung-Chiang Branchڗ ೇᎸ̶Җ Fu-Hsing Branch Tanshui Branch ୶̶ͪҖ Hsi-Chih Branch ѱ̶ͤҖ Branch Industrial Park Nankang Science ݑപࡊጯડ̶Җ Mucha Branch ͢ߝ̶Җ ੨ઊăϏјѐ ӀϡˠЩཌྷ дώҖЇᖚ̝੨ઊٕ Їგ͟ ̄̃ѣώҖ ѣώҖ۵ை ˟ඈᏐ̰ᙯܼ̝གྷந ѣώҖ ಏҜЩჍ ᖚჍ ؖЩ Date Started ۵ை۵ᇴ ۵ᇴ ࢋགྷĞጯğ። ϫ݈ࣘЇ̳Φ̝ᖚચ ˠ ۵ை۵ᇴ DiYision Title Name (Year/Month/ Shareholding Shareholding Prime Experience & Expectation Current Positions The Spouse or Shareholding Day) by Spouse & Under Others' RelatiYe within2 Tiers Minor Children Title of General Managers న۩̚થ ܢҖ གྷந ౘԗ 2004/09/01 90,551 ઼ϲᄂΔથຽࡊጯ७̶۾༄ ࡊ None NoneٽJuifang Branch VP & GM Ting-Jey Chen None None ઼ᅫ International Trade, Administration College of National Taipei Institute of Commerce ˬࢦं̶Җ གྷந ၐϒཌྷ 2006/01/20 35,714 ռϲెϥጯੰᅙҖܲᐍጯր Sanchungpu VP & GM Cheng-I Liao None None Banking and Insurance, Feng Chia UniYersity None None Branch ጯր ޠڱ ռϲᅃ̥̂ጯ 22,653 20/01/2006 ۾Δˬࢦं̶Җ གྷந ӓ࡚ Pei-Sanchungpu VP & GM Mei-Fang Wu None None Law, Fu JenCatholic Uni Yersity None None Branch ࢦ̶Җ གྷந ഫܲ 2006/01/20 10,000 ռϲ઼̼͛̂̚ጯົࢍጯր ˬڌ ̚ Tung-Sanchung VP & GM Pao-SenYu None None Accounting, Chinese Culture UniYersity None None ර Branch ϔ Ҙˬࢦ̶Җ གྷந ధ႔͛ 2006/01/20 1,018 3,261 ռϲ୶ͪ̍થგநࡊጯ७ᅙҖგநࡊ ઼ Hsi-Sangchung VP & GM Han-Wen Hsu None Business Administration, Tamsui Oxford None None ˝ ˩ Branch College ݑˬࢦ̶Җ གྷந ᔁ̄щ 2006/01/20 138,200 ռϲ୶ѯ͛நጯੰᅙҖܲᐍጯր ̣ ѐ Nan-Sangchung VP & GM Tsu-AnHsieh None None Banking & Insurance, Tamkang UniYersity None None ą Branch ѐ ጯր ޠڱऔ 2006/01/20 2,000 ઼ϲᄂ៉̂ጯڒ ಡ ˬྮ̶Җ གྷந SanHo Rd. VP & GM Meng-O Lin None None Law, National Taiwan UniYersity None None Branch 40 ᛀ߷̶Җ གྷந ዑܜර 2006/01/20 64,653 ઼ϲ̚Ꮈ̂ጯЪүགྷᑻጯր Luchou Branch VP & GM Chang-Hua Cheng None None CooperatiYe Economics, National Chung None None Hsing UniYersity Җ གྷந ͳᙶ 2006/01/20 208,148 ռϲᅛ็̃̄થຽࡊጯ७થຽ͛३ࡊ ̶ظາ Hsintien Branch VP & GM Yun-Mei Wang None None Secretarial Science, Ming Chuan College None None Δາ̶Җ གྷந ૺ३ໆ 2003/11/20 43,657 ᄂ៉࠷ϲາѻ৺થຽᖚຽጯ७થࡊ Pei HsinBranch VP & GM Shu-Chang Chen None None National Hsin Chu Commercial Vocational None None High School Рј̶Җ གྷந ధॳ 2006/01/20 9,698 ռϲᅃ̥̂ጯົࢍጯր Chicheng Branch VP & GM Kuei-Mei Hsu None None Accounting, Fu Jen Catholic UniYersity None None ϖ̶Җ གྷந Οέщ 2003/06/24 46,051 ռϲ୶ͪ̍થგநࡊጯ७ᅙҖგநࡊ Yungho Branch VP & GM Tai-AnKu None None Banking Management, Tamsui Oxford college None None ̶Җ གྷந เԠј 2002/01/01 2,228 ռϲెϥጯੰᅙҖܲᐍጯր Fuho Branch VP & GM Chih-Cheng Huang None None Banking & Insurance, Feng Chia UniYersity None None న۩̚થຽ ܢ̶Җ གྷந ྜጙБ 2006/01/20 23,717 21,000 ઼ϲέ̚ԫఙጯੰ̚ Chungho Branch VP & GM Shun-Chuan Chan None Ћຽგநࡊ None None Business Administration, Open College Af¿liated with National Taichung Institute of Technology ጯր ޠڱᗕ̶Җ གྷந ఄึ 2006/01/20 37,655 51,085 ռϲ઼̼͛̂̚ጯ Shuangho Branch VP & GM Shuenn Juang None Law, Chinese Culture UniYersity None None ጯੑඁጯր ̂ڼݑ๕֎̶Җ གྷந ౘౠᔷ 2004/09/01 33,814 ઼ϲ߆ Nanshih Chiao VP & GM Hsueh-Hsia Chen None None Public Finance & Taxation , National Chengchi None None Branch UniYersity 㛄 2003/04/04 86,286 ռϲ୶ͪ̍થგநࡊጯ७Ћຽგநࡊ ؟າఄ̶Җ གྷந ᖎ Hsinchuang VP & GM Jong-Shien Jean None None Business Administration,Tamsui Oxford None None Branch College ˠ None None None None None None None None None None None None None None None None None ewithin2Tiers Y Щॼڒགྷந Sung Branch) The Spouse or Җ̶ڗ੨ઊĈҘ Spouse: Min-Tron дώҖЇᖚ̝੨ઊٕ ˟ඈᏐ̰ᙯܼ̝གྷந Lin(VP & GM of Hsi- of General Managers Relati None None None None None None None None None None None None None None None None None None Current Positions ϫ݈ࣘЇ̳Φ̝ᖚચ ersity Y ersity ersity Y Y ersity ersity Y Җ߆ࡊ Җ߆ࡊ Җ߆ࡊ Y ) ) ) ersity ersity Y Y ersity ఼ ఼ ఼ Y ( ( ( ࢋགྷĞጯğ። incial Taipei Commercial School Y ANNUAL REPORT 2006 41 Prime Experience & Expectation ersity Y న۩̚Җ Administration, National ChengchiCollege Open of Junior Commerceܢጯ̂ڼϲ߆઼ న۩̚Җ Administration, National ChengchiCollege Open of Junior Commerceܢጯ̂ڼϲ߆઼ ռϲ୶ѯ͛நጯੰ̍થგநጯր Business Administration, Tamkang Uni ռϲ઼̼͛̚ጯੰགྷᑻጯր Economics, Chinese Culture Uni ϲ۩̂̚ጯۤົࡊጯր Social Science, National Open Uni઼ ጯЋຽგநጯր Business Administration,National Chengchi Unîڼϲ߆઼ ᄂ៉࠷ϲ̚ᗾ৺થຽᖚຽጯ७ National Chung-Li SeniorCommerce Vocational School of ռϲ୶ͪ̍થგநࡊጯ७ᅙҖგநࡊ Business Management, Tamsui Oxford College ࠷ϲέΔથᖚ TaiwanPro Administration, National ChengchiCollege Open of Junior Commerce న۩̚Җܢጯ̂ڼϲ߆઼ ጯགྷᒉგநࡁտٙ MBA, National Chengchi Unîڼϲ߆઼ έ៉࠷ϲঔ߶ጯੰਝྻგநጯր Shipping & TransportationNationalTaiwanOceanUni Management, ጯր International Trade, Tamkang Uniٽռϲ୶ѯ͛நጯੰ઼ᅫ ռϲᏹӍથຽࡊጯ७៍Ѝְຽࡊ Tourism,HsingWuCollege ռϲ୶ͪ̍થგநࡊጯ७ᅙҖგநࡊ Banking Management, Tamsui Oxford College న۩̚ҖҖ߆გந Administration, National ChengchiCollege Open of Junior Commerceܢጯ̂ڼϲ۩̂̚ጯۤົࡊጯր Social Science, National Open Uni ઼ϲ߆઼ ϲ۩̂̚ጯથጯր Business, National Open Uni઼ Title ۵ᇴ None None None None None None None None None None None None None None None None None Shareholding ӀϡˠЩཌྷ ѣώҖ۵ை Under Others' None None None None None None None None None None None ۵ை۵ᇴ by Spouse & Shareholding ੨ઊăϏјѐ ̄̃ѣώҖ Minor Children ѣώҖ ۵ை۵ᇴ Shareholding Day) Їგ͟ 2005/04/01 103,260 2006/01/20 65,440 43,510 2002/09/13 127,199 2006/01/20 46 2006/01/20 68,244 64,056 2005/04/01 11,240 2,440 2005/04/01 141,095 2006/01/20 589 625 2004/09/01 451 2006/01/20 50,578 2002/10/25 283 3,112 2006/01/20 69,092 2003/06/24 142,686 2006/01/20 671 2004/09/01 4,607 2003/06/24 123,645 870 2006/01/20 1,500,863 100,000 200,000 2006/01/20 64,218 Date Started (Year/Month/ ؖЩ Name ၐੑ ၐᐁ ྿ځࡰ ౘԠ֣ ࠏ؟ͳ ధℼ ՂᐛՅ ࣫ߐܩ ᔁᇇ เ୧ ᆒछ ችܛӀ ုضᖎ ߸̥ྕ چͳ ችፘ Ѱܛڒ ధᐅゲ His-Fu Liao Johnson Liu Hui-Ting Hsu Pin-Tsun Lee Chu-Shu Tsai King-Lee Tsai Chin-Chih Lin Tien-Tsai Liao Der-Jiuh Hsieh Ming-Dar Fann Tiao-Ho Huang Shing-Ting Tang Chih-Pang Chen Chin-Huang Hsu Jeng-Cheng Hong Tzong Biing Wang Hsing-Show Chien Sheng-Chao Wang Title ᖚჍ གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM ision Y Di ಏҜЩჍ ̶Җ Yangmei Branch Җ Hsin-Ming Branch̶ځາ Δ̚ᗾ̶Җ Pei-Chungli Branch ̚ᗾ̶Җ Chungli Branch Җ Tung-Linkou Branch̶˾ڒڌ ݑब̶Җ Nankan Branch ˣᇇ̶Җ Ba De Branch Δॿ̶Җ Pei-Taoyuan Branch ॿ̶Җ TaoyuanBranch ˬद̶Җ Sanhsia Branch ݱ̶Җ Tucheng Branch˿ ѯჴ̶Җ Chiang Tsui Branch Ѝೇ̶Җ Kuang-Fu Branch ̶Җ Panchiao Branchڕ Җ ShulinBranch̶ڒፘ ޥ̶Җ Sy YuanBranch Җ Linkou Branch̶˾ڒ ݑາఄ̶Җ Nan-Hsinchuang Branch ੨ઊăϏјѐ ӀϡˠЩཌྷ дώҖЇᖚ̝੨ઊٕ Їგ͟ ̄̃ѣώҖ ѣώҖ۵ை ˟ඈᏐ̰ᙯܼ̝གྷந ѣώҖ ಏҜЩჍ ᖚჍ ؖЩ Date Started ۵ை۵ᇴ ۵ᇴ ࢋགྷĞጯğ። ϫ݈ࣘЇ̳Φ̝ᖚચ ˠ ۵ை۵ᇴ DiYision Title Name (Year/Month/ Shareholding Shareholding Prime Experience & Expectation Current Positions The Spouse or Shareholding Day) by Spouse & Under Others' RelatiYe within2 Tiers Minor Children Title of General Managers న۩̚ࡊ(఼)Җ߆ࡊ ܢҖ གྷந ምӻ 2005/04/01 136,941 ઼ϲ۩̂̚ጯ̶͕ं PuhsinBranch VP & GM Miao Pan None None Administration, National Chengchi Open Junior None None College of Commerce న۩̚Җ(఼)Җ߆ࡊ ܢጯ̂ڼ ઼ϲ߆ 88,962 20/01/2006 ۾າѻ̶Җ གྷந ౘϖ Hsinchu Branch VP & GM Yung-Fang Chen None None Administration, National Chengchi Open Junior None None College of Commerce న۩̚થ ܢ ઼ϲᄂΔથຽࡊጯ७ 30,948 125,500 20/01/2006 مౘڒ Δາѻ̶Җ གྷந ࡊ None NoneٽPei-Hsinchu VP & GM Chen-Chung Lin None ઼ᅫ Branch International Trade, Administration College of National Taipei Institute of Commerce న۩̚થ ܢາѻࡊጯડ̶Җ གྷந ཧߋࡓ 2004/02/19 2,533 618 ઼ϲᄂΔથຽࡊጯ७ ࡊ None NoneٽHsinchu Science- VP & GM Cheung-Hong Yeh None ઼ᅫ ̚ ර based Industrial International Trade, Administration College of ϔ Park Branch National Taipei Institute of Commerce ઼ Җ གྷந ഫЍᒑ 2006/01/20 118,082 ռϲెϥጯੰЪүགྷᑻጯր ̶ڌѻ ˝ ˩ Chutung Branch VP & GM kuang-Jyue You None None CooperatiYe Economics, Feng Chia UniYersity None None ̣ ռϲဋЍથຽࡊጯ७ᅙҖܲᐍࡊ 43,311 01/04/2005 ڠѐ ࡺॷ̶Җ གྷந ᆒࡌ ą Miaoli Branch VP & GM Chiou-Wu Liou None None Banking & Insurance, The OYerseas Chinese None None ѐ Institute of Technology ಡ న۩̚થ ܢѻݑ̶Җ གྷந ཧึౢ 2006/04/21 ઼ϲᄂΔથຽࡊጯ७ ࡊ None NoneٽZhunan Branch VP & GM Shuen-Chang Yeh None None None ઼ᅫ International Trade, Administration College of 42 National Taipei Institute of Commerce ঔ̂ጯЋຽგநጯր ڌࡿ̶྆Җ གྷந ཧᄔࣦ 2004/09/01 46,070 ռϲ Yuanli Branch VP & GM Tsang-Cheng Yeh None None Business Administration,Tunghai UniYersity None None ϥ̶Җ གྷந 冫Ҵᕃಜ 2004/09/01 10,010 21,689 ռϲ୶ѯ̂ጯ઼ᅫથጯࡁտٙ ̂ Tachia Branch VP & GM Horng-Yau Tu None Tamkang UniYersity IMBA None None Ւ౩̶Җ གྷந ౘϖᖳ 2004/07/09 166,342 ռϲెϥጯੰੑඁጯր Shalu Branch VP & GM Yung-Feng Chen None None Public Finance, Feng Chia UniYersity None None న۩̚Җ(఼)Җ߆ࡊ ܢጯ̂ڼ̶ͪҖ གྷந ՂЍߦ 2005/04/01 46,287 5,826 ઼ϲ߆ Chingshui Branch VP & GM Kuang-Po Lee None Administration, National Chengchi Open Junior None None College of Commerce Ꮙጯր ܛև̶Җ གྷந ߟᆇ 2006/01/20 40,706 ռϲ୶ͪ̍થგநጯੰੑચ̂ Tatu Branch VP & GM Kuen-Yi Ko None None Finance & Banking, Tamsui Oxford College None None ͉π̶Җ གྷந ౘୂ߆ 2004/02/19 23,000 ռϲဋЍથຽࡊጯ७ܲᐍࡊ TaipinBranch VP & GM Ming-Cheng Chen None None Insurance, The OYerseas Chinese Institute of None None Technology న۩̚Җ(఼)Җ߆ࡊ ܢጯ̂ڼᖳ̶ࣧҖ གྷந ᎊ͛ே 2004/02/19 103,578 40,000 ઼ϲ߆ Fengyuan Branch VP & GM Wen-Hsiag Lu None Administration, National Chengchi Open Junior None None College of Commerce થຽࡊጯ७ົࢍࡊ ڌݑᖳ̶Җ གྷந ң˙າ 2006/01/20 79,000 100,000 ռϲᑏ Nan-Feng Branch VP & GM Yee-Hsing Ho None Accounting, Ling Tung College None None ࡊ ٽሔ̶̄Җ གྷந ᇉг 2002/01/01 187,018 ᄂ៉࠷ϲᄂ̚થຽࡊጯ७઼ᅫ Tantzu Branch VP & GM Ching-Di Yang None None International Trade, National Taichung Institute None None of Commerce 2003/04/04 65,217 58,367 ռϲဋЍથຽࡊጯ७Ћຽგநࡊ ͇ڒ ๕̶Җ གྷநڌ Tungshih Branch VP & GM Tien-Ming Lin None Business Administration, The OYerseas None None Chinese Institute of Technology ͛૽ 2006/01/20 115,462 ᄂ៉࠷ϲᄂ̚થຽࡊጯ७ᅙҖܲᐍࡊ ڒ ᙳप̶Җ གྷந Wufeng Branch VP & GM Wen-Bin Lin None None Banking & Insurance, National Taichung None None Institute of Commerce ˠ None None None None None None None ewithin2Tiers Y The Spouse or дώҖЇᖚ̝੨ઊٕ ˟ඈᏐ̰ᙯܼ̝གྷந of General Managers Relati None None None None None None None None None None ߉ჴऔ None None None None None None None of Lukang Branch) Spouse: Shih,Tsui- Current Positions ੨ઊĈ౩പ̶Җᓷந E(Assistant VP & GM ϫ݈ࣘЇ̳Φ̝ᖚચ ersity Y None None None None None None None None None None None Җ߆ࡊ ) ఼ ( ersity Y ࢋགྷĞጯğ። ANNUAL REPORT 2006 43 ersity Prime Experience & Expectation Y Җ߆ࡊ ) ռϲ୶ͪ̍થგநࡊጯ७ົࢍࢍࡊ Accounting & Statistics, Tamsui Oxford College ޙ઼થົࢍࡊ Accounting, Chienkuo Technology Uni ཌྷч̂ጯგநࡁտٙ EMBA, I-Shou Uni ઼ϲᄂ̚થຽࡊጯ७ᅙҖܲᐍࡊ Banking & Insurance,Institute National of Taichung Commerce ռϲາϔથ̍ Shin Min VocationalCommercial School of Industrial and ᄂ៉࠷ϲᖳࣧ৺થຽᖚຽጯ७ National Feng YuanVocational Senior School Commercial Administration, National ChengchiCollege Open of Junior Commerce న۩̚Җܢጯ̂ڼϲ߆઼ ersity ఼ ( Y Title ۵ᇴ None None None None None None None Shareholding ӀϡˠЩཌྷ ѣώҖ۵ை Under Others' liated Institute of Continuing ¿ ersity Y ersity ersity Af Y Y None None None Administration, National ChengchiCollege Open of Junior Commerce న۩̚Җܢጯ̂ڼϲ߆઼ ᒉӀְຽგநࡁտٙ Master of NPOUni Management, Nanhuaܧݑර̂ጯ ᄂ៉࠷ϲလཌྷ৺થຽᖚຽጯ७ National Chia-Yi SeniorSchool Commerical Vocational ઼ϲ̚Ꮈ̂ጯЋຽგநጯր Business Administration, NationalHsing Chung Uni ࡊ International Trade, Nationalof Taichung Institute Commerceٽϲᄂ̚થຽࡊጯ७઼ᅫ઼ થຽࡊጯ७ᅙҖົࢍ Banking & Accounting, Ling Tung Collegeڌռϲᑏ Education ޙ઼ԫఙጯੰܢనซ࣒ጯੰ઼ᅫ Ћຽგநጯր Business Administration, ChienkuoUni Technology ռϲెϥጯੰᅙҖܲᐍጯր Banking & Insurance, Feng Chia Uni ռϲ̂Тથຽࡊጯ७ᅙҖࡊ Banking, Tatung InstituteTechnology of Commerce and ռϲెϥጯੰົࢍጯր Accounting, Feng Chia Uni ռϲ̂Тથຽࡊጯ७ᅙҖܲᐍࡊ Banking & Insurance,TatungCommerce Institute and of Technology ۵ை۵ᇴ by Spouse & Shareholding ੨ઊăϏјѐ ̄̃ѣώҖ Minor Children None None None None None None None None None None None ѣώҖ ۵ை۵ᇴ Shareholding None None None None None None None Day) Їგ͟ 2006/01/20 151,496 2004/09/01 69,701 20,000 2006/01/20 88,273 52,660 2006/01/20 45,326 127,294 2006/01/20 10,046 2004/02/19 2,872 66,131 2006/01/20 77,672 Date Started (Year/Month/ ؖЩ Name پՔॎ ༄ј ߸ώਕ مች ྿ྕڒ ౘߌР щڒ Гڒ Tsai-Fu Lin Ta-ChenLin Chang-An Lin Jui-ChenYang Chao-Chi Chen Ben-Neng Hong Chung-Yung Tsai 2003/04/04 50,521 2005/04/01 43,798 2002/01/01 151,805 2004/09/01 20,185 2005/04/01 78,403 2006/01/20 6,000 50,000 2006/01/20 72,056 63,486 2005/04/01 98,000 2005/04/01 173,156 166 2005/04/01 128,031 2005/04/01 37,170 30,000 Title ᖚჍ Chen-Chang Shen Houng-Tong Chang ૺԈૅ เࡷ เᄔซ ᔁϖ շ؟ૺ ౘ༄ࣦ ૺϖ༄ ᆇ؟ૺ ᏥܷҜ ምኰ གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM Chun-Wei Lai Hsine-Kai Pan Tsung-I Chang Yung-Ju Chang Jui-Ching Chen Ma-Sheng Huang Yeong-Fwu Shieh Tsung-Nan Chang Tsang-Chin Huang ision Y Di ಏҜЩჍ ౩പ̶Җ Lukang Branch ܆̶Җ Fengyuan Branch ၓ̶̼Җ Changhwa Branch ѻ̶̋Җ ChushanBranch ͪ྆ӫ̶Җ Shuilikeng Branch Җ Puli Branch̶֧ं ݑԸ̶Җ Nantou Branch ਨ͏̶Җ TsaotunBranch གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM Huwei Branch ԍ̶Җ ͜ݑ̶Җ Tounan Branch Touliu Branch ̶̱͜Җ Hsiluo Branch Ҙᓲ̶Җ Fangyuan Branch ࡿ̶Җ۾ Peitou Branch Δ̶͜Җ PuyenBranch ंៃ̶Җ Hsihu Branch സ̶Җ Yuanlin Branch Tukoo Branch Җ ˿ऱ̶Җ̶ڒࣶ ੨ઊăϏјѐ ӀϡˠЩཌྷ дώҖЇᖚ̝੨ઊٕ Їგ͟ ̄̃ѣώҖ ѣώҖ۵ை ˟ඈᏐ̰ᙯܼ̝གྷந ѣώҖ ಏҜЩჍ ᖚჍ ؖЩ Date Started ۵ை۵ᇴ ۵ᇴ ࢋགྷĞጯğ። ϫ݈ࣘЇ̳Φ̝ᖚચ ˠ ۵ை۵ᇴ DiYision Title Name (Year/Month/ Shareholding Shareholding Prime Experience & Expectation Current Positions The Spouse or Shareholding Day) by Spouse & Under Others' RelatiYe within2 Tiers Minor Children Title of General Managers Δപ̶Җ གྷந ችซ 2006/01/20 101,000 4,000 ռϲݑᄂ̍ຽࡊጯ७̍ຽგநࡊ Peikang Branch VP & GM Chin-Ching Tsai None Electronical Engineering, Nan-Tai Junior None None College of Technology ጯր ޠڱӓ̂ጯڌ ռϲ 10,000 189,365 01/09/2004 ึٻလཌྷ̶Җ གྷந ధ Chiayi Branch VP & GM Wang-Shun Hsu None Law, Soochow UniYersity None None ຽࡊጯ७̍ຽგநࡊ ̍͞ڌᅛ̋ 2004/09/01 144,685 63,000 ռϲڒ Җ གྷந̶ڒ̂ TalinBranch VP & GM Ming-Shan Lin None Electronical Engineering, Tung-Fang Institute None None of Technology ᄂ៉࠷ϲလཌྷ৺થຽᖚຽጯ७ 10/02/2006 ڌလཌྷ̶Җ གྷந ᖎѯڌ Tong-Chiayi VP & GM Chiang-Tung Chien None None None National Chia Yi Senior Commercial Vocational None None Branch School ̚ Δလཌྷ̶Җ གྷந Ꮵ̮ঔ 2004/09/01 201,975 ռϲ୶ѯ͛நጯੰથጯր ර Pei-Chiayi Branch VP & GM Yuan-Hai Lai None None Business, Tamkang UniYersity None None ϔ າᒉ̶Җ གྷந ో̥ 2004/09/01 40,338 ռϲလݑᘽጯࡊጯ७̍ຽщБϠࡊ ઼ ˝ Hsinying Branch VP & GM Jen-Ho Kuo None None Pharmacy, Chia NanJuniorCollege of None None ዂ 2006/01/20 240,834 ռϲెϥጯੰᅙҖܲᐍጯր ځරྮ̶Җ གྷந ӕ̚ ˩ ̣ Chung-Hua Road VP & GM Ming-Huei Leu None None Banking & Insurance, Feng Chia UniYersity None None ѐ Branch ą ѐ ϖ̶Җ གྷந ౘᇉം 2006/01/20 226,259 ռϲెϥጯੰົࢍጯր ಡ Yungkang Branch VP & GM Ching-Chih Chen None None Accountiing, Feng Chia UniYersity None None ጯր ޠڱӓ̂ጯڌέݑ̶Җ གྷந ዒࡻࣰ 2005/04/01 1,000 ռϲ Tainan Branch VP & GM Yin-Che Teng None None Law, Soochow UniYersity None None ؼπ̶Җ གྷந ૺϒ̌ 2006/01/20 132,087 41,826 ռϲెϥጯੰੑඁጯր 44 Yenping Branch VP & GM Jeng-Chung Chang None Public Finance Taxation, Feng Chia UniYersity None None Ҙέݑ̶Җ གྷந ᚗ 2004/09/01 156,684 23,192 136,565 ռϲ઼̼͛̚ጯੰགྷᑻጯր Hsi-Tainan Branch VP & GM Pao-Kai Yang Economics, Chinese Culture UniYersity None None ࡊ ٽݑέݑ̶Җ གྷந ͳჅঔ 2006/01/20 122,889 ᄂ៉࠷ϲᄂ̚થຽࡊጯ७઼ᅫ Nan-Tainan VP & GM Pi-Hai Wang None None International Trade, National Taichung Institute None None Branch of Commerce έݑ̶Җ གྷந ܷԈ 2005/04/01 69,820 6,833 ռϲ઼̼͛̂̚ጯགྷᑻጯր ڌ Tung-Tainan VP & GM Chun-Hung Tung None Economics, Chinese Culture UniYersity None None Branch Δέݑ̶Җ གྷந ᗞॎ։ 2006/01/20 193,186 160,944 ռϲెϥጯੰົࢍጯր Pei-Tainan Branch VP & GM Jenn-Liang Yen None Accounting, Feng Chia UniYersity None None ጯགྷᑻጯր ̂ڼщݑ̶Җ གྷந ͪ͞ 2004/02/19 25,643 1,028 ઼ϲ߆ AnNan Branch VP & GM Shuei-Fu Fang None Economics, National Chengchi UniYersity None None ጯր ٽҖ གྷந ӓ༄ߋ 2004/09/01 39,847 ռϲᅃ̥̂ጯ઼ᅫ̶̋ت Kangshan Branch VP & GM Jui-ChunWu None None International Trade, Fu Jen Catholic UniYersity None None ࡊ ٽฯ 2006/08/04 56,195 ռϲ઼ᅫથຽࡊጯ७઼ᅫڒ ၮ̶̋Җ གྷந ChishanBranch VP & GM Chyi-Shyong Lin None None International Trade,International College of None None Commerce ઼ϲ۩̂̚ጯથጯր 67,292 01/09/2004 ۾ᆂ̶̋Җ གྷந ౘ્ Fengshan Branch VP & GM Wan-Fang Chen None None Business, National Open UniYersity None None ྮѻ̶Җ གྷந ᚑၷጯ 2005/04/01 977 ռϲ̂Тથຽࡊጯ७ܲᐍࡊ Luchu Branch VP & GM Rong-Shyue Yan None None Insurance, Tatung Institute of Commerce and None None Technology న۩̚થЋຽგநࡊ ܢՅϣ 2005/04/01 132,406 9,099 ઼ϲјΑ̂ጯמ ൴̶Җ གྷந̂ Ta-Fa Branch VP & GM Tsun-Tien Chuo None Business Administration, National Cheng Kung None None OpenJuniorCollege of Commerce ӓ̂ጯགྷᑻጯր ڌฯ̶Җ གྷந ᐨِ 2004/02/19 109,487 ռϲ Kaohsiung Branch VP & GM Ho-Yi Lo None None Economics, Soochow UniYersity None None ˠ None None ewithin2Tiers Y The Spouse or дώҖЇᖚ̝੨ઊٕ ˟ඈᏐ̰ᙯܼ̝གྷந of General Managers Relati None None None None None None None None None None None None None None None None None None None None None Current Positions ϫ݈ࣘЇ̳Φ̝ᖚચ ersity Y None None None None None None None None None None None None None None None None None None None Җ߆ࡊ ) ఼ ( ࢋགྷĞጯğ። ersity ersity Y Y ANNUAL REPORT 2006 45 Prime Experience & Expectation ersity ersity of ersity ersity Y Y Y Y ersity ersity Y ersity Y Y ersity ռϲ୶ѯ͛நጯੰᅙҖܲᐍጯր Banking & Insurance, Tamkang Uni న۩̚Җ Administration, National ChengchiCollege Open of Junior Commerceܢጯ̂ڼϲ߆઼ ersity Y ersity Y Y ersity Y Title ۵ᇴ None None Shareholding ӀϡˠЩཌྷ ѣώҖ۵ை Under Others' e Economics, Tamkang Uni e, Feng Chia Uni ersity of Texas, USA Y Y Y None ઼࡚ᇇэ̂ጯЋຽგநጯր MBA, Uni ӓ̂ጯགྷᑻጯր Economics, Soochow Uniڌռϲ ጯր International Trade, Tamkang Uniٽռϲ୶ѯ̂ጯ઼ᅫ ϲ۩̂̚ጯથጯր Business, National Open Uni઼ ጯր International Trade, Feng Chia Uniٽռϲెϥጯੰ઼ᅫ ռϲ୶ѯ͛நጯੰЪүགྷᑻጯր Cooperati ၁ኹనࢍგநጯੰੑચܛᏉጯր Finance & Banking, Shih Chien Uni Ꮙጯր Finance & Banking,Technology Fortune Institute ofܛనซ࣒ጯ७ੑચܢߋԫఙጯੰ ռϲᅃ̥̂ጯགྷᑻጯր Economics, Fu Jen Catholic Uni ጯր International Trade, Feng Chia Uniٽռϲెϥጯੰ઼ᅫ ռϲెϥጯੰЪүጯր Cooperati ռϲెϥጯੰົࢍጯր Accounting, Feng Chia Uni ռϲ઼ᅫથຽࡊጯ७ົࢍࢍࡊ Accounting & Statistics,of International Commerce College ռϲ઼ᅫથຽࡊጯ७̍થგநࡊ Business Administration, Internationalof College Commerce ռϲ઼̼͛̚ጯੰགྷᑻጯր Economics, Chinese Culture Uni ઼ϲ̚Ꮈ̂ጯགྷᑻጯր Economics, National Chung Hsing Uni ռϲ୶ͪ̍થგநࡊጯ७ົࢍࢍࡊ Accounting & Statistics, Tamsui Oxford College ઼ϲฯௐ˘ࡊԫ̂ጯგநጯჇ̀ MBA, National Kaohsiung First Uni ռϲ୶ͪ̍થგநࡊጯ७Ћຽგநࡊ Business Administration, Tamsui Oxford College Science and Technology ۵ை۵ᇴ by Spouse & Shareholding ੨ઊăϏјѐ ̄̃ѣώҖ Minor Children None None None None None None None None None None None None None None None None None None None ѣώҖ ۵ை۵ᇴ Shareholding None None None None None None None None None None None None Day) Їგ͟ 2003/11/01 100,000 2006/01/20 80,103 7,506 Date Started (Year/Month/ ؖЩ Name เߋܜ ཌྷڠో ౘᓑᙡ Wu-I Kuo Lien-Ching Chen 2005/04/15 96,000 1,000 2006/01/20 88,956 2006/01/20 10,346 2006/01/20 39,371 2004/05/01 10,878 2005/07/19 1,000 2006/01/20 2,185 60 2006/01/20 145,560 4,503 2005/07/19 35,202 2006/01/20 81,989 2006/08/04 205,121 4,261 2006/01/20 10,596 27,066 2004/05/01 40,023 2006/01/20 55,481 2006/01/20 12,147 2006/01/20 16,624 2004/09/01 65,762 10,000 2004/09/01 449 10,350 2005/04/01 70,492 Title ᖚჍ Ching-Chang Chen Chun-Chang Huang ౘॎц ᔁซᇇ Ղॎ઼ مͳҹ ᆒߋࢲ ܘಱၷ ຑৌڒ ӓዂฯ ̋ٿเ ౘᇉౢ आᖳ ͛၆ ୖͶฯڒ ࡧ൳ ૺ౾ཌྷ ᆒϜౠ ܘᐑ ᔁ˚Ϝ Ai-JanLin གྷந VP & GM གྷந VP & GM གྷந VP & GM Po-Yi Chang Wen-Duy Lin Yu-Hsueh Liu Fu-Rong Chiu Ding-Yu Hsieh Jenn-Gwo Lee Chen-Yu Chen Ching-Te Hsieh Teng-Huang Hu Chuen-Feng Liu Feng-Yuan Shia Ching-Lin Chiou Huei-Hsiung Wu Ko-Chung Wang Pe-Hsiung Liang Kuen-Shan Hwang ision Y Di ಏҜЩჍ ៃṽ̶Җ Yencheng Branch ฯ̶Җ Tung-Kaohsiung Branchڌ ˛ኰ̶Җ Chi-HsienBranch གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM གྷந VP & GM New York Branch ৸ࡗ̶Җ Taitung Branch Җ̶ڌέ HualienBranch ܅ቷ̶Җ Branch Chencheng ݱ̶Җ֘ Tungkang Branch പ̶Җڌ Linpien Branch ᙝ̶Җڒ Chaochou Branch ሗэ̶Җ Pingtung Branch Җ̶ڌލ Ta-ShunBranch ̂ึ̶Җ Hsinhsing Branch Po-Ai Branch າᎸ̶Җ ౾ຑ̶Җ Sanmin Branch Lingya Branch ˬϔ̶Җ ࢁฮ̶Җ Branch Branch Pei-Kaohsiung Chienhsing Δฯ̶Җ ޙᎸ̶Җ Chiu-Ju Lu Branch ˝тྮ̶Җ Branch Nan-Kaohsiung Chanchen Branch ݑฯ̶Җ ݈ᗉ̶Җ ੨ઊăϏјѐ ӀϡˠЩཌྷ дώҖЇᖚ̝੨ઊٕ Їგ͟ ̄̃ѣώҖ ѣώҖ۵ை ˟ඈᏐ̰ᙯܼ̝གྷந ѣώҖ ಏҜЩჍ ᖚჍ ؖЩ Date Started ۵ை۵ᇴ ۵ᇴ ࢋགྷĞጯğ። ϫ݈ࣘЇ̳Φ̝ᖚચ ˠ ۵ை۵ᇴ DiYision Title Name (Year/Month/ Shareholding Shareholding Prime Experience & Expectation Current Positions The Spouse or Shareholding Day) by Spouse & Under Others' RelatiYe within2 Tiers Minor Children Title of General Managers ࠃՉᒧ̶Җ གྷந ౘࣰ͛ 2005/04/15 112,842 ઼ϲ̚Ꮈ̂ጯྺຽགྷᑻጯր Los Angeles VP & GM Wen-Che Chen None None Agricultural Economics, National Chung Hsing None None Branch UniYersity Җ གྷந ୖछၷ 2005/01/26 1,816 21,614 ࡻ઼প̂ጯჇ̀ ̶ִڌ Tokyo Branch VP & GM Chia-Rong Liang None MBA, UniYersity of Leicester, UK None None ̶ࣖҖ གྷந ᚶٚ 2004/05/01 31,021 ઼ϲᄂ៉̂ጯགྷᑻጯր London Branch VP & GM Jih-Cheng Yang None None Economics, National Taiwan UniYersity None None ࢶപ̶Җ གྷந ౘϒշ 2001/01/19 105,409 11,436 ઼ϲ̚Ꮈ̂ጯЪүགྷᑻጯր Hong Kong Branch VP & GM Cheng-Nan Chen None CooperatiYe Economics, National Chung None None Hsing UniYersity ռϲ୶ѯ͛நጯੰЋຽგநጯր 68,091 67,428 08/07/2004 مҖ གྷந ౘະ̶າΐ ̚ Singapore Branch VP & GM Jing-Chung Chen None Business Administration, Tamkang UniYersity None None ර ϔ 2005/01/26 7,331 23,234 ܑ Ї ࡔၷѐ ઼ϲᄂ̚થຽࡊጯ७ᅙҖܲᐍࡊ ̋ٿ ઼ ˝ Kunshan Repre- VP & Chief Representa- Jung-Nien Chi None Banking & Insurance, National Taichung None None ˩ sentatiYeOf¿ce tiYe Institute of Commerce ̣ ѐ ą ѐ ಡ 46 ested Y ed from Y ࿌ܛ subsidiaries. Whetherornot is recei businesses than other re-in ҋ̳̄ ΦͽγᖼԸྤְຽֽפѣᅳ any compensation ඈ E ̈́ D t(%) ă ¿ C ă ৈּ̝ͧ pro B and E /after-tax ă SumofA,B,C,D ̣ีᓁᗝΚඁޢ৷ A (F) warrants subscription ᄮᔉ۵ᇴ ࣶ̍ᄮ۵ᝋጴᙋ Employee share (E) ed by part-time employees Y ࠳ዶ̶੨ࣶ̍ࡓӀ ܛ࠹ᙯ࿌פࣘЇࣶ̍ᅳ Employee Bonus distribution ā ā ā ā Compensations recei (D) ā ā ā ā and Special প͚ඈ ANNUAL REPORT 2006 47 ᓟྤăረܛ̈́ Salary, Bonus Disbursement ಡ ܑ̰ٙ ѣ̳Φ׀Ъ ā ā t(%) ¿ ඈˬี C ā ā ώҖ CHB ̈́ ಡ ܑ̰ٙ ѣ̳Φ׀Ъ ּ̝ͧ າέ။Ζ̮ B : ă ᓁᗝΚඁޢ৷ৈ A Consolidation Sum of A, B and C /after-tax pro idends Stock Y ᗝܛ۵ைࡓ Ӏ ͟ಏҜ ώҖ CHB di ā ā 31 ͡ 12 Consolidation idend ѐ Y Cash னܛࡓ Ӏܛᗝ Consolidation 95 di Dec. 31, 2006 Unit: NT$1,000 ā ā ಡܑ̰ٙѣ̳Φ׀Ъ Practice ຽચેҖϡ (C) Professional idends Stock Y ᗝܛ۵ைࡓ Ӏ di ā ā āāāāā CHB (B) ώҖ idends Cash Y னܛࡓ Ӏܛᗝ ಡ ܑ̰ٙ ѣ̳Φ׀Ъ di ā ā ܛְ࿌ Consolidation Compensation ࠳ዶ̶੨̝࿌౻ Earning Distribution ώҖ CHB ಡ ܑ̰ٙ ѣ̳Φ׀Ъ ā ā Consolidation ಡ ܑ̰ٙ ѣ̳Φ׀Ъ (A) ώҖ CHB ಡ ܑ̰ٙ ѣ̳Φ׀Ъ ā ā ಡ࿌ Rewards Consolidation ώҖ CHB ώҖ CHB ಡ ܑ̰ٙ ѣ̳Φ׀Ъ ā ā Consolidation ώҖ CHB ā ā Consolidation ؖЩ Name ā ā ā ā ܛְ̝࿌ ಡ࿌ (1) 1. Compensation for Directors ) Title ᖚჍ ā ā ˬ ( c. Compensation āāāāāāāāāāāāāāā ) ) ) ) ) ) ) ) Cheng Ching Wu ˠέ̚ᦦռϲૺЍྈૅڱᏉଠ۵۵Њѣࢨ̳Φܑ ̌۵Њѣࢨ̳Φܑ ੑဥܛᏉଠ۵۵Њѣࢨ̳Φܑ έາܛᏉଠ۵۵Њѣࢨ̳Φܑ έາܛᏉଠ۵۵Њѣࢨ̳Φܑ ੑ߆ొܑ έາܛέາ Ꮙଠ۵۵Њѣࢨ̳Φܑܛέາ Ԡ Eric K. Chen ( (Delegate of Ho ChuanCo.,ౘ֚ߌ Ltd.) Chen-Jau Chen ( ຎචົܑ (Delegate of ChangCharity Kuan Foundation) Yu TangޙHenry C.S. Kao ( (Delegate of TaishinHolding Financial Co., Ltd.) ॳАྺ Hsien-Nung Kuei ( (Delegate of Ministryͳ͛ of Finance) Charles W. Y. Wang ( (Delegate of TaishinHolding Financial Co., Ltd.) ӓሏ ( (Delegate of TaishinHolding Financial Co., Ltd.) ౘஏҐ Julius Chen ( (Delegate of TaishinHolding Financial Co., Ltd.) ౘ إԠ Po-ShinChang ڟૺұ (. Thomas K.K.Lin ( (Delegate of TaishinHolding Financial Co., Ltd઼ڒ ચְ Managing Director ૱ચְ Managing Director ૱ચְ Managing Director ૱ચְ Managing Director ְ Director ְ Director ְ Director૱ Chairman ܜְ ְ Director ܛ࠹ᙯ࿌פࣘЇࣶ̍ᅳ ܛְ࿌ AăBăCăD̈́Eඈ Compensation AăB̈́Cඈˬี Compensations receiYed by part-time employees ̣ีᓁᗝΚඁޢ৷ ᓁᗝΚඁޢ৷ৈ ҋֽ̳̄פࣶ̍ᄮ۵ᝋጴᙋ ৈּ̝ͧ ѣᅳ ̈́ܛᓟྤăረ (ຽચેҖϡ ּ̝ͧ প͚ඈ(D) ᄮᔉ۵ᇴ(F ಡ࿌(A) ࠳ዶ̶੨̝࿌౻(B) ࠳ዶ̶੨ࣶ̍ࡓӀ(E) SumofA,B,C,D ΦͽγᖼԸྤְຽ (C) Professional Sum of A, B and C Salary, Bonus Employee share Rewards Earning Distribution Employee Bonus distribution and E /after-tax ࿌ܛ Practice /after-tax pro¿t(%) and Special subscription Whether or not (%)ᖚჍ ؖЩ pro¿t Disbursement warrants any compensation Title Name ಡܑ̰ٙѣ̳Φ is recei ed from׀Ъ ώҖCHB Y ಡ other re-inYested׀ಡ Ъ׀ಡ Consolidation Ъ׀ಡ Ъ׀ಡ Ъ׀ಡ Ъ׀ಡ Ъ׀Ъ ࡓ ۵ைࡓ ώҖ ܑ̰ٙ ώҖ ܑ̰ٙ businesses thanܛࡓ ۵ைࡓ னܛώҖ ܑ̰ٙ ώҖ ܑ̰ٙ ώҖ ܑ̰ٙ ώҖ ܑ̰ٙ ώҖ ܑ̰ٙ ன CHB ѣ̳Φ CHB ѣ̳Φ CHB ѣ̳Φ CHB ѣ̳Φ CHB ѣ̳Φ Ӏܛᗝ Ӏܛᗝ Ӏܛᗝ Ӏܛᗝ CHB ѣ̳Φ CHB ѣ̳Φ subsidiaries. Consolidation Consolidation Consolidation Consolidation Consolidation Cash Stock Cash Stock Consolidation Consolidation diYidends diYidends diYidend diYidends پӓጳ ְ HsienChangWu (Ꮙଠ۵۵Њѣࢨ̳ΦܑܛDirector (έາ ā (Delegate of Taishin Financial Holding Co., Ltd.) ૺؠϔ ̚ Timothy Chang ර ְ (Ꮙଠ۵۵Њѣࢨ̳Φܑܛέາ) ϔ Director ઼ (Delegate of Taishin Financial ˝ Holding Co., Ltd.) ˩ ߆ጳڒ ̣ Cheng-Hsien Lin ѐ ְ (Ꮙଠ۵۵Њѣࢨ̳Φܑܛą (έາ Director ѐ (Delegate of Taishin Financial ಡ Holding Co., Ltd.) ૺ ְ Ching-Hsi Chang 48 Director (ੑ߆ొܑ) (Delegate of Ministry of Finance) ఄ౼ၷ ְ Sheng-Rong Chuang Director (ੑ߆ొܑ) (Delegate of Ministry of Finance) Ꮵ͛ᚥ ְ Wen-Hsien Lai Director (ੑ߆ొܑ) (Delegate of Ministry of Finance) ൏Ҧࣖ Yu-LonChiao ְ (Ꮙଠ۵۵Њѣࢨ̳Φܑܛέາ) Director (Delegate of Taishin Financial Holding Co., Ltd.) เԠσChih-hung Huang (Ꮙଠ۵۵Њѣࢨ̳Φܑܛְ (έາ Director (Delegate of Taishin Financial Holding Co., Ltd.) ౘᆵ̥ KuanRenChen ְ (Ꮙଠ۵۵Њѣࢨ̳Φܑܛέາ) Director (Delegate of Taishin Financial Holding Co., Ltd.) ౘ⟳ಟ Yu Ti Chen ְ (Ꮙଠ۵۵Њѣࢨ̳Φܑܛέາ) Director (Delegate of Taishin Financial Holding Co., Ltd.) ested Y ed from Y ࿌ܛ subsidiaries. Whetherornot is recei businesses than other re-in ҋ̳̄ ΦͽγᖼԸྤְຽֽפѣᅳ any compensation ඈ E ̈́ D t(%) ă ¿ C ă ৈּ̝ͧ pro B and E /after-tax ă SumofA,B,C,D ̣ีᓁᗝΚඁޢ৷ A (F) warrants subscription ᄮᔉ۵ᇴ ࣶ̍ᄮ۵ᝋጴᙋ Employee share (E) ed by part-time employees Y ࠳ዶ̶੨ࣶ̍ࡓӀ ܛ࠹ᙯ࿌פЇࣶ̍ᅳ Employee Bonus distribution Compensations recei (D) and Special প͚ඈ ANNUAL REPORT 2006 49 ᓟྤăረܛ̈́ Salary, Bonus Disbursement ಡ ܑ̰ٙ ѣ̳Φ׀Ъ t(%) ¿ ඈˬี C ώҖ CHB ̈́ ಡ ܑ̰ٙ ѣ̳Φ׀Ъ ּ̝ͧ B ă ᓁᗝΚඁޢ৷ৈ A Consolidation Sum of A, B and C /after-tax pro idends Stock Y ᗝܛ۵ைࡓ Ӏ Consolidation ώҖ CHB di ಡܑ̰ٙѣ̳Φ׀Ъ (A+B+C+D+E) Consolidation idend Y Cash னܛࡓ Ӏܛᗝ Consolidation di ಡܑ̰ٙѣ̳Φ׀Ъ Practice SumofA,B,C,D,andE ຽચેҖϡ (C) Professional ώҖ CHB ݈̣ี࿌ܛᓁᗝ idends es. Stock Y ᗝܛ۵ைࡓ Ӏ Y di CHB (B) es. Y ώҖ idends Cash Y னܛࡓ Ӏܛᗝ ְؖЩ ಡ ܑ̰ٙ ѣ̳Φ׀Ъ di ܛ࿌ְ Name of Directors Consolidation Compensation representati ࠳ዶ̶੨̝࿌౻ Earning Distribution ώҖ CHB ಡ ܑ̰ٙ ѣ̳Φ׀Ъ Consolidation (A+B+C) Consolidation ಡܑ̰ٙѣ̳Φ׀Ъ ಡ ܑ̰ٙ ѣ̳Φ׀Ъ (A) ώҖ CHB ಡ ܑ̰ٙ ѣ̳Φ׀Ъ ಡ࿌ Rewards Consolidation SumofA,B,andC enly distributed to designated representati ώҖ CHB Y ݈ˬี࿌ܛᓁᗝ ώҖ CHB ಡ ܑ̰ٙ ѣ̳Φ׀Ъ ώҖ CHB Consolidation ώҖ CHB Consolidation ؖЩ Name ~NT$2,000,000 8 8 8 8 ed by institutional directors is e Total 23 23 23 23 Y Directors ᓁࢍ cationof Compensationfor ¿ NT$2,000,000~NT$5,000,000 13 13 12 12 NT$5,000,000~NT$10,000,000 2 2 2 2 NT$100,000,000~ ৺ܛග;ώҖЧְ࣎࿌ NT$10,000,000~NT$15,000,000NT$15,000,000~NT$30,000,000 NT$30,000,000~NT$50,000,000 1 1 NT$50,000,000~NT$100,000,000 Title ᖚჍ Classi ЊπӮ̶੨ҌࠁܑĄ Note: Amount receiొפˠְٙᅳڱොĈ ˠ̈́ࠁܑˠĄ Note: Paid amount includes payables to legal persons and their designatedڱ;ᗝΒӣ͚ܛ;ොĈග ) ) ) ) Ministry of Finance Total 22,299 22,299 46,827 46,827 0.61% 0.61% 10,103 10,103 0.7% 0.7% Ꮙଠ۵۵Њѣࢨ̳Φܑ ੑ߆ొܑ ੑ߆ొܑܛᏉଠ۵۵Њѣࢨ̳Φܑ έາܛέາ Ꮙଠ۵۵Њѣࢨ̳Φ Taishin Financial Holdingੑ߆ొ Co., Ltd. Ъࢍܛˠέ̚ξռϲૺЍྈૅ ຎචົ Chang Kuan YuFoundation Tang Charity έາڱᅛ of Finance) Suming Lin ( (Delegate of Ministry̌۵Њѣࢨ̳Φ of Finance) Ho ChuanCo., Ltd. ੑဥ͵ڒᆧР Tseng-Chi Lin ( (Delegate of Ministryڒ (.ษ̀ James Long Su( Lin (Delegate of TaishinHolding Financial Co., Ltdڒ (.Џୂ Chao MinLin ( (Delegate of TaishinHolding Financial Co., Ltdڒ ְ Director ְ Director ְ Director ְ Director (2)Ⴞ၅ˠ̝࿌ܛ 2. Compensation for SuperYisors 95ѐ12͡31͟ಏҜ:າέ။Ζ̮ Dec. 31, 2006 Unit: NT$1,000 Ⴞ၅ˠ࿌ܛ ҋ̳̄ΦͽγֽפCompensation AăB̈́CඈˬีᓁᗝΚ ѣᅳ ܛ৷ৈּ̝ͧ ᖼԸྤְຽ࿌ޢඁ (ᖚჍ ؖЩ ಡ࿌(A) ࠳ዶ̶੨̝࿌౻(B) ຽચેҖϡ(C Sum of A, B and C /after-tax pro¿t(%) Whether or not any compensation Title Name Rewards earning distribution Professional Practice is receiYed from other re-inYested .ಡܑ̰ٙѣ̳Φ businesses than subsidiaries׀ಡܑ̰ٙѣ̳Φ ώҖ Ъ׀ಡܑ̰ٙѣ̳Φ ώҖ Ъ׀ಡܑ̰ٙѣ̳Φ ώҖ Ъ׀ώҖ Ъ CHB Consolidation CHB Consolidation CHB Consolidation CHB Consolidation ā ā ā ā ā ā إԠ ૱ዸႾ၅ˠ Henry C.S. Kao ā ā ā ā ā ā ā ā ExecutiYe Ꮙଠ۵۵Њѣࢨ̳Φܑ) ā ā ā ā ā ā ā āܛέາ) SuperYisor (Delegate of Taishin Financial Holding Co., Ltd.) ā ā ā ā ā ā ˧༩ڒ ૱ዸႾ၅ˠ Diao Li Lin ExecutiYe (Ꮙଠ۵۵Њѣࢨ̳Φܑܛέາ) SuperYisor (Delegate of Taishin Financial Holding Co., Ltd.) ̚ ߟѽսང Ⴞ၅ˠ ර Hsiu ChuanKo SuperYisor ϔ (ੑ߆ొܑ) ઼ (Delegate of Ministry of Finance) ˝ ˩ ౘ˿ॲ ̣ Ⴞ၅ˠ Tu-Kung Chen (ˠέ̚ᦦռϲૺЍྈૅຎචົܑڱѐ SuperYisor (ੑဥ ą (Delegate of Chang Kuan Yu Tang Charity ѐ Foundation) ಡ ؟ችೳ Ⴞ၅ˠ Yang-Tzong Tsay SuperYisor (Ꮙଠ۵۵Њѣࢨ̳Φܑܛέາ) 50 (Delegate of Taishin Financial Holding Co., Ltd.) ܘᇇၓ Ⴞ၅ˠ Teo Chang Chiu SuperYisor (Ꮙଠ۵۵Њѣࢨ̳Φܑܛέາ) (Delegate of Taishin Financial Holding Co., Ltd.) Ꮙଠ۵۵Њѣࢨ̳Φܛέາ Taishin Financial Holding Co., Ltd. ੑ߆ొ Ministry of Finance Ъࢍ Total 5,760 5,760 10,742 10,742 0.15% 0.15% ˠ̈́ࠁܑˠĄڱ;ᗝΒӣ͚ܛ;ොĈග Note:Paid amount includes payables to legal persons and their designated representatiYes. Ⴞ၅ˠؖЩ Name of SuperYisors ග;ώҖЧ࣎Ⴞ၅ˠ࿌ܛ৺ ݈ˬี࿌ܛᓁᗝ Classi¿cationof Compensationfor (A+B+C) Sum of A, B, and C SuperYisors ಡܑ̰ٙѣ̳Φ׀ώҖ Ъ CHB Consolidation ~NT$2,000,000 NT$2,000,000~NT$5,000,000 6 6 NT$5,000,000~NT$10,000,000 NT$10,000,000~NT$15,000,000 NT$15,000,000~NT$30,000,000 NT$30,000,000~NT$50,000,000 NT$50,000,000~NT$100,000,000 NT$100,000,000~ ᓁࢍ Total 6 6 ЊπӮ̶੨ҌࠁܑĄొפˠႾ၅ˠٙᅳڱොĈ Note:Amount receiYed by institutional superYisors is eYenly distributed to designated representatiYes. ested Y ed from Y פѣᅳ ҋ̳̄Φֽ subsidiaries. Whether or not is recei businesses than other re-in ܛͽγԸྤְຽ࿌ any compensation ጴᙋᇴᗝ ā ā āā ā ࣶ̍ᄮ۵ᝋפ Employee share subscriptionwarrants t(%) ¿ (%) ּ̝ͧ ᓁᗝΚඁޢ৷ৈ Total /after-tax pro Total ݈ˬีᓁᗝ ā ā ā ā ANNUAL REPORT 2006 51 າέ။Ζ̮ : ώҖ CHB ܛᗝ ಡ ܑ̰ٙ ѣ̳Φ׀Ъ ࠳ዶ̶੨̝ࣶ̍ࡓӀܛᗝ Amount ͟ಏҜ Consolidation 31 ώҖ CHB idends Y ͡ Employee Bonus Of Earning distribution ξᆊ Price 12 ѐ ಡ ܑ̰ٙ ѣ̳Φ׀Ъ Consolidation ᗝܛ۵ைࡓӀ āā 95 Dec. 31, 2006 Unit: NT$1,000 Stock di Consolidation ಡܑ̰ٙѣ̳Φ׀Ъ ώҖ CHB ۵ᇴ Share eVicePresident Y ಡ ܑ̰ٙ ѣ̳Φ׀Ъ consolidation idend Consolidation ܛᗝ Y Cash ಡܑ̰ٙѣ̳Φ׀Ъ di னܛࡓӀ ܛᗝ ᓁགྷந̈́ઘᓁགྷநˠᇴ Amount idends Y ξᆊ ረܛ̈́প͚ Disbursement Price bonus and Special āā ᗝܛ۵ைࡓӀ ώҖ Number of President and Executi Stock di CHB ۵ᇴ Share ώҖ CHB e Vice Presidents idend Y ܛᗝ Y Cash di னܛࡓӀ ᓟྤ Salary ಡ ܑ̰ٙ ѣ̳Φ׀Ъ ώҖ CHB 21,900 21,900 17,110, 17,110 1,504 1,516 40,514 40,526 0.36% 0.36% Consolidation ώҖ CHB ~NT$2,000,000 ಡ ܑ̰ٙ ѣ̳Φ׀Ъ e Vice President Name Consolidation Y Total Total 6 6 ؖЩ ೆၷᇈ JohnC. Peng Ъࢍ ཧ༱˿ Walter W.T.Yeh ჯሇ William Linڒ ͛ Ming-Wen Changځૺ ᔁߌշ Chao-NanHsieh ౘ֚ߌ Chen-Jau Chen ᓁࢍ NT$2,000,000~NT$5,000,000 3 3 NT$5,000,000~NT$10,000,000 2 2 cationof Compensationfor NT$10,000,000~NT$15,000,000NT$15,000,000~NT$30,000,000 NT$30,000,000~NT$50,000,000 1 1 ¿ NT$50,000,000~NT$100,000,000 eVice eVice eVice eVice eVice Y Y Y Y Y NT$100,000,000~ ᓁགྷந̈́ઘᓁགྷந̝࿌ܛ Classi 3. Compensation for President and Executi (3) Title ᖚჍ President and Executi ග;ώҖЧ࣎ᓁགྷந̈́ઘᓁགྷந࿌ܛ৺ President & Head Auditor President ᓁቊ८ Executi President ઘᓁགྷந Executi President ઘᓁགྷந Executi President ઘᓁགྷந Executi ઘᓁགྷந Executi ְࣘᓁགྷந Director & President ੨൴ࣶ̍ࡓӀ̝གྷநˠؖЩ̈́੨൴ଐԛ(4) 4. Members of the Management Team ReceiYing Employee Bonus & Bonus Distribution 95ѐ12͡31͟ಏҜ:າέ။Ζ̮ Dec. 31, 2006 Unit: NT$1,000 ৷ৈޢ۵ைࡓӀ ᓁᗝΚඁ னܛࡓӀܛᗝ (%)ּ̝ͧ ᖚჍ&ؖЩ Stock diYidends ᓁࢍ Cash diYidends Title & Name Total Total/after-tax ᗝ Amountܛ ۵ᇴ ξᆊ Share Price Amount profit (%) ᓁགྷந ᔁߌշ Acting President Chao-NanHsieh ͛ځઘᓁགྷந ૺ ExecutiYe Vice President Ming-Wen Chang ჯሇڒ ઘᓁགྷந ExecutiYe Vice President William Lin ઘᓁགྷந ཧ༱˿ ExecutiYe Vice President Walter W.T.Yeh ᓁቊ८ ೆၷᇈ ExecutiYe Vice President & ̚ JohnC. Peng Head Auditor ර ϔ Ї৪३ࣘܜ ᔁ͛ ઼ Chief Secretary; Wen-Huang Hsieh ˝ SVP & DiYisionHead ˩ ̣ ઘܜ(நܜᖚચ) ᚹዂڒ ѐ SVP & Deputy DiYision Yao-Huei Lin ą Head (Acting SVP & DH) ѐ ಡ ܜ ͳፄអ SVP & DiYisionHead Tzer-LinWang ܜ ౘܛࡻ 52 SVP & DiYisionHead Chin-Ying Chen ܜ ߉ޙщ SVP & DiYisionHead James Shih 4,755 4,755 0.04% ধ Noneڒ ܜ SVP & DiYisionHead HuanLieh Lin າ઼ڒ ܜ SVP & DiYisionHead Gwo ShinLin ܜ ౘ̯ซ SVP & DiYisionHead James Y.G.Chen ܜ Ϯࡻර SVP & DiYisionHead Yin-Hwa Shih เ؈ ܜ SVP & DiYisionHead Chi-Tay Huang ጳځڒ ܜ SVP & DiYisionHead Ming-Hsien Lin ၿܦڒ ܜ SVP & DiYisionHead Alexander C.H.Lin ഼ሗ ܜ SVP & DiYisionHead Chaur-Her Tang ځ۾അ ܜ SVP & DiYisionHead Fangming Tzeng مޙ ܜ SVP & DiYisionHead Chien-Chung Yang ܜ ਃᓐჅ SVP & DiYisionHead Tsung-Pi Weng ANNUAL REPORT 2006 53 YLFH Board of SHUYLVRUV st VDQGYLFH RQLQGLYLGXDO GRQLQGLYLGXDO HDUQLQJVHWF DGHZDVRI JLQJ GLUHFWRUV UDWLRQVIRUYLFH RQHTXLW\DQG VXSHUYLVRUVE\ board meeting on th IRXUPHPRUDQGXP QDQFLDOLQVWLWXWLRQVRI DUHDSSURYHGE\WKH DQGVXSHUYLVRUVZHUH Extraordianry Meeting of the 21 XQHUDWLRQVIRUGLUHFWRUVDQGVX SOR\HHERQXVIRUSUHVLGHQWVDQG rd Determined by Article 38 of our memorandum. presidents: According to theon CHB Employee Guideline Cash Rewardsfollowing and metrics Bonus, will the beof used performance in bonus: the percentage calculation SURILWWDUJHWDFKLHYHGUHWXUQ of pre-tax RWKHUIDFWRUVKDYLQJLPSDFWVRQ SUHVLGHQWV (PSOR\HHERQXVEDVH performance in accordance withof the our Article memorandum, 38 theEmployee CHB Bonus Guideline Distribution on andGuideline the on CHB Employee CashBonus. Rewards and CHB Life Insurance Agent Co., Ltd.,Insurance and Brokerage CHB Co., Life Ltd., (within1% a - range 8%, of withthe the Board final annually). decision For to 2003,HPSOR\HHERQXVWKHSURYLVLRQP be 2004 made and by 2005 after-tax earnings and the distributionto ratios be were decided by the Board of Directors. Performance bonus thus obtainedVXEPLWWHGIRUDSSURYDOE\ PDQD will then be EHIRUHEHLQJGLVWULEXWHGEDVHG performance. 3HUIRUPDQFHERQXVIRUSUHVLGHQW extraordinary session of the 18 th 5HP (P (4)Bonus for subsidiary employees: According to Article 39 of the memorandum of the standards and composition, procedures for determining remunerations, and their correlation performance: with management SURYLGHGIRULQ$UWLFOHR which authorizes the BoardUHPXQHUDWLRQVIRUGLUHFWRUVDQG of Directors to determine UHIHUHQFLQJWKRVHSURYLGHGE\¿ a similar size. 7 August 25, 1998 andMeeting by on the October General 17, Shareholders RIRXUPHPRUDQGXPUHPXQH 1998. Acoording to Article presidents are determined by the CHBSchedule Remunerations for Current Employees, whichat was the adopted 3 Directors onMarch 17, 2006. d. Information related to remuneration policies, 5HPXQHUDWLRQVIRUGLUHFWRUV 5HPXQHUDWLRQVIRUSUHVLGHQWV 3. Correlation with Management Performance: ̳ ) Ѩᓜ ۵ 3 ( ௐب 21 Ѩᓜॡְົၱ 7 ͟ௐ ѐĶࣶ̍ࡓӀķܼ ˯ྍٺᝋְົ 94 17 ഠᝋְົᛉֶఢ ௐب ĂГෛ࣎ˠޢְົ ă ͡ 13 ) 3 18 93 ѐ (1%~8% ă ૱ચ ୧ௐ ( ̳Φ̈́ၓᅙܲᐍགྷࡔˠ ͟ௐ 95 ) 92 20 25 ۵ Ą ( ) ͡ 8 ѐ ୧ăĶၓ̼ᅙҖࣶ̍ረܛ̈́ࡓӀ൴ගᏱ ୧ఢؠᏱநĄ 87 ഠఢؠĂֶ ೩хĂ̶ࠁּͧ೩ְົՙᛉĄ 38 38 14 1% ՙᛉᏱநĄઘᓁགྷநಡ࿌ֶώҖົ૱ڌ۵͟ 17 ୧ௐ ͡ 20 10 т˭Ĉځགྷᒉᒻड़̝ᙯᓑّķඈ࠹ᙯྤफ़ᄲ ѐ Ⴞְ࿌౻Ĉ ᓁགྷநăઘᓁགྷநࣶ̍ࡓӀĈ ᓁགྷநăઘᓁགྷநᒻड़ረܛĈ ̳̄Φ̝ࣶ̍ࡓӀĈ ώҖౢௐ ֶώҖౢௐֶ ķ̈́Ķၓ̼ᅙҖࣶ̍ࡓӀ̶੨ࢋᕇķෛ࣎ˠᒻड़ՙ ؠࡓӀĄڱ Ąܛ೩ಡ ᒻड़ՙؠረܛᝋৈಡ࿌தඈЧีᄃགྷᒉᒻड़࠹ᙯ ᇾ८ზώҖᒻड़ረڌķಶώҖඁ݈࠳ ዶϫᇾ྿јதă۵ڱࡓӀ൴ගᏱ̈́ܛĶၓ̼ᅙҖࣶ̍ረֶ ၓᅙˠ֗ܲᐍநˠ Φౢௐˬ˩˝୧ఢؠᏱந ˭ࢨ̝ቑಛ̰ѐՙؠֶ ͽඁޢ࠳ዶ Ԕ̝̈́ܛ߆ඉăᇾᄃЪăࢎؠ࿌̝ܛĶග;࿌ ) ౢௐ 87 ॡְົՙᛉĶၓ̼થຽᅙҖனᖚˠࣶᓟගܑķቑಛ̰ග ᄃĄ Ꮙ፟ၹႾְಡ࿌ͪπᛉؠႾְಡ࿌Ąܛሀ࠹༊ Ⴞְಡ࿌ֶܼώҖౢௐ ᓁགྷநಡ࿌ܼॲፂ ᄃགྷᒉᒻड़̝ᙯᓑّĈ (1) (2) (3) (4) α 3. 1. ( 2. நྻүଐԛڼă̳Φˬ C.The Practice of Corporate Governance ְົྻүଐԛ(˘) a. The Practice of Director of Board ְົฟົ14ѨĂְႾ၅ˠЕयଐԛт˭Ĉޘѐܕ The Board of Directors conYened 14 meetings in the past year, and the records of attendance by directorsand superYisors are shownas follows Ĉ (95.1.1-95.12.31) (Jan.1, 2006~Dec. 31, 2006) ၁ᅫ(Е)यத(%) ၁ᅫ(Е)य ؎य (ො) ᖚჍ ؖЩ Ѩᇴ Ѩᇴ ౯ො Percentage of In- Title Name Attendance In Attendance Note Person Attendance Person By Proxy (%)(Note) ઃᖚഇมĈ95.5.26-95.11.25 ڟૺұ ܜְ 60 100Period of Suspension: May 26, 2006 ~NoY. Chairmanof the Board Po-ShinChang 25, 2006. ଠԼࠁࠎְĄܛHenry C.S.Kao 95.5.30έາإԠ ̚ ચְ૱ ଠ)ܑī 90 100Taishin Holdings assinged as a new directorܛᏉଠ۵۵Њѣࢨ̳Φ(ᖎჍέາܛර Īέາ Managing Director ϔ (Delegate of Taishin Financial Holding Co., Ltd.) onMay 30, 2006. ઼ ॳАྺHsien-Nung Kuei 95.6.20ੑ߆ొԼࠁࠎְĄ ચְ૱ ˝ Īੑ߆ొܑī 71 87.5Ministry of Finance assinged as a new ˩ Managing Director ̣ (Delegate of Ministry of Finance) director onJune20, 2006. ѐ ͳ͛Charles W. Y. Wang ચְ૱ ą Īέາܛଠܑī 14 0 100 Managing Director ѐ (Delegate of TaishinHoldings) ಡ ӓሏCheng Ching Wu ચְ૱ Īέາܛଠܑī 13 0 92.86 Managing Director (Delegate of TaishinHoldings) 54 ଠԼࠁࠎְĂ95.11.14ྋܛ95.3.14έາ ЇְᖚચĂ96.1.29ೇԼࠁࠎְĄ ౘஏҐJulius Chen ְ Taishin Holdings assinged as a new director Īέາܛଠܑī 73 70 Director onMarch 14, 2006, remo Yed as a director (Delegate of TaishinHoldings) onNo Yember 14, 2006, and re-assinged as a director onJanuary29, 2007. ౘޙԠEric K. Chen ְ Ī̌۵Њѣࢨ̳Φܑī 13 0 92.86 Director (Delegate of Ho ChuanCo., Ltd.) ౘ֚ߌChen-Jau Chen ְ ˠέ̚ξռϲૺЍྈૅຎචົܑī 12 0 85.71ڱĪੑဥ Director (Delegate of Chang Kuan Yu Tang Charity Foundation) ٺଠྋЇ૱ચְᖚચĂ֭ܛ95.5.30έາ Thomas K.K.Lin 95.6.13ԼࠁࠎְĄ઼ڒ ְ Īέາܛଠܑī 11 1 84.62 TaishinHoldingsremo Yed as a managing Director (Delegate of TaishinHoldings) director on May 30, 2006, and assinged as a director onJune13, 2006. HsienChangWuپӓጳ ְ Īέາܛଠܑī 13 0 92.86 Director (Delegate of TaishinHoldings) ૺؠϔTimothy Chang ְ Īέາܛଠܑī 9164.29 Director (Delegate of TaishinHoldings) ଠԼࠁࠎְĄܛ߆ጳCheng-Hsien Lin 95.11.1έາڒ ְ Īέາܛଠܑī 20 100Taishin Holdings assinged as a new director Director (Delegate of TaishinHoldings) onNo Y.1,2006. ૺChing-Hsi Chang ְ Īੑ߆ొܑī 6542.86 Director (Delegate of Ministry of Finance) ఄ౼ၷSheng-Rong Chuang ְ Īੑ߆ొܑī 13 1 92.86 Director (Delegate of Ministry of Finance) ྋ e ᙜ Y ྋ ౯ො Note ed as Y 96.1.29 95.11.1 95.3.22 ed as a Y ed as a director ed as a managing Y Y ed as anexecuti ed as a director on ed as a director on Y Y Y ଠԼࠁࠎႾ၅ˠĄܛੑ߆ొԼࠁࠎְĄ έາ isor onMay 30, 2006. Y .1,2006. . 14, 2006, and remo Y Y director onDec. 1, 2006. super 95.12.1 Ministry of Finance assinged as a new 95.5.30 Taishin Holdings assinged as a new (%) ଠԼࠁࠎְćܛέາ ੑ߆ొྋЇְᖚચĄ ଠԼࠁࠎְćܛੑ߆ొྋЇ૱ચְᖚચĄ έາ ଠྋЇ૱ዸႾ၅ˠᖚચĄܛέາ ଠྋЇְᖚચĄܛέາ ଠԼࠁࠎְćܛέາ ଠྋЇְᖚચĄܛέາ isor onMay 30, 2006. 55 ְᖚચĄעଠᙜܛANNUAL REPORT 2006έາ Y ndance in person. ) यத ) ො ( Е ( director onNo onDec. 1, 2006. super June 13, 2006. director onJune20, 2006. onMarch 22, 2006, andremo .ЇְᖚચĄ director onNo a director onJan.29, 2007 .ְᖚચĄ director on Feb.16, 2006,a and director resigned onMarch as 22, 2006. March 8, 2006ע Jan. 26, 2006, ЇְᖚચĄ 95.12.1 Ministry of Finance remo 95.6.20 Ministry of Finance remo 95.3.22 Taishin Holdings assinged as a new director 95.11.14 Taishin Holdings assinged as a new 95.5.30 TaishinHoldingsremo Taishin Holdings assinged as a new 95.3.8 Taishin Holdings resigned as a director on 95.6.13 TaishinHoldingsremo 95.2.16 95.1.26 TaishinHoldingsremo (%)(Note) Percentage of In- ၁ᅫ Person Attendance Ѩᇴ य؎ By Proxy Attendance य ) Е ( Ѩᇴ Person 10 100 90 100 ၁ᅫ Attendance In 30 50 3633.33 20 100 50 100 11 50 60 100 20 100 01 0 10 2 76.92 131412 014 0 0 92.86 0 100 85.71 100 attended by the director during the period of his or her incumbency and atte ؖЩ Name यѨᇴࢍზ̝Ą ) Е ( Diao Li Lin Wen-Hsien Lai ߟ (ଠܑī (Delegate of TaishinHoldingsܛ༩˧ Īέາڒ Ꮵ͛ᚥ Īੑ߆ొܑī (Delegate of Ministry of Finance) KuanRenchen Suming Lin Tseng-Chi Lin JamesJames Long Long Su Su Lin Lin Chao MinLin Henry C.S.Kao Yu Ti Chen Chih Hung Huang Tu-Kung Chen Yang-Tzong Tsay Teo Chang Chiu Yu lunChiao Hsiu ChuanKo ང ѽս e (ᅛ Īੑ߆ొܑī (Delegate of Ministry of Finance͵ڒ (ଠܑī (Delegate of TaishinHoldingsܛษ̀ Īέາڒ (ᆧР Īੑ߆ొܑī (Delegate of Ministry of Financeڒ (ଠܑī (Delegate of TaishinHoldingsܛЏୂ Īέາڒ (ଠܑī (Delegate of TaishinHoldingsܛĪέາ إԠ ౘᆵ̥ Īέາܛଠܑī (Delegate of TaishinHoldings) ౘ⟳ಟ Īέາܛଠܑī (Delegate of TaishinHoldings) เԠσ Īέາܛଠܑī (Delegate of TaishinHoldings) (ଠܑī (Delegate of TaishinHoldingsܛଠܑī (Delegate of TaishinHoldings) ൏Ҧࣖ Īέາܛᇇၓ Īέາܘ (ଠܑī (Delegate of TaishinHoldingsܛTang Charity Foundation) Īέາ ؟ˠέ̚ξռϲૺЍྈૅຎචົܑī (Delegate of Chang Kuan Yuችೳڱౘ˿ॲ Īੑဥ Īੑ߆ొܑī (Delegate of Ministry of Finance) Y isor Y al) Executi Y ͽдᖚഇมְົฟົѨᇴ̈́၁ᅫ Title ᖚჍ isor Super Y (%) remo al) al) isor isor isor isor al) al) al) al) al) al) Y Y Y Y Y Y Y Y Y Y Y Y यத ) ૱ዸႾ၅ˠ Super Ⴞ၅ˠ ְ Director ̏ྋЇ Е remo remo remo remo remo remo remo remo ( Super Super Super Super ̏ྋЇ ̏ྋЇ ̏ྋЇ ̏ྋЇ ̏ྋЇ ̏ྋЇ ̏ྋЇ ̏ྋЇ ၁ᅫ ( ( : ְ Director (96.1.29 ) ְ Director ) ચְ Managing Director ְ Director૱ Ⴞ၅ˠ ( ְ Director ( ְ Director ) ְ Director ) Ⴞ၅ˠ Ⴞ၅ˠ Ⴞ၅ˠ ְ Director ො Note: Percentage of in-person attendance was counted by the Board meeting ᑕྶְีĈ Other noteworthy matters: ְົᛉՙְีĄĪī̝ځௐ14୧̝3ٙЕְีၱགྷϲְͅ၆ٕܲຍ֍ͷѣࡔᐂٕ३ࢬᓏڱᙋϹ .1 1. Matters speci¿ed in Article 14.3 of the Securities Exchange Act, or Board resolutions where independent directors haYe expressed oppositionor quali ¿ed opinions that haYe been noted in the record or declared in writing. None. ְ၆Ӏचᙯܼᛉ९ਫ਼ᔖ̝ેҖଐԛĞ95.1.1-95.12.31ğ .2 2. AYoidance of ConÀict of Interest by Directors (Jan. 1, 2006 ~ Dec.31, 2006) ᛉ९̰ट ְؖЩ ᑕӀৈਫ਼ᔖࣧЯ ܑՙଐԛ Issues Name Reasons for AYoidance Vote Results ९ܫௐ44୧ఢؠ̝ڱᏉଠ۵̳Φܛௐ33୧ٕڱ1І) Po-ShinChang ᛉ९ࠎᅙҖ)ڟұܜૺְ ௐ178୧ఢؠਫ਼ᔖĄڱௐ206୧ϡТڱૺְؠϔ(9І) Timothy Chang ІĂֶ̳Φ Ԡ(2І) Eric K. Chen The matter discussed was a loancase go Yerned byޙౘְ Ӏचᙯܼˠܫ९ 1І) Yang-Tzong Tsay Article 33 of the Banking Law or Article 44 of the Financial)؟ችႾ၅ˠೳ Loans to interested parties 2І) Henry C.S.Kao Holding Company Act; in accordance with Article 206 of)إ૱ચְԠ ˠְܑ(6І) the Company Law, aYoidance is required as prescribed inڱᏉଠ۵۵Њѣࢨ̳Φܛέາ (Delegate of TaishinHoldings) Article 178 of the same Law. ͽγ̝Ӏचᙯܼˠ ੵᛉ९̰टᄃҋ֗ѣӀचᙯܼܫௐ45୧ఢؠ̝ڱᏉଠ۵̳Φܛᛉ९ࠎ ̚ ර ௐ178୧ఢؠਫ਼ᔖĄ ְֶ̝ఢਫ਼ᔖᗓयٕኛڱௐ206୧ϡТڱ९ІĂֶ̳ΦٽϹ ϔ γĂዶयְТຍ೩९ 1І) Henry C.S.Kao The matter discussed was non-loan transactions with)إᄃຽચགྷᒉ࠹ᙯᛉ९ ૱ચְԠ ઼ ˠְܑ(6І) interested parties by Article 45 of the Financial Holding ٕᆶߤຍ֍఼࿅ĄڱᏉଠ۵۵Њѣࢨ̳ΦܛOther business-related έາ ˝ ˩ cases (Delegate of TaishinHoldings) Company Act; in accordance with Article 206 of the Apart from directors who did ̣ Company Law, aYoidance is required as prescribed in not attend or who requested ѐ Article 178 of the same Law. aleaYe of absence due to ą conflict of interest pertaining ௐ206୧ to the matters discussed, allڱѐ ᛉ९̰टᄃᑕਫ਼ᔖְѣҋ֗ӀचᙯܼĂֶ̳Φ ௐ178୧ఢؠਫ਼ᔖĄ the remaining directors inڱಡ࿌९ ϡТܜಡ አፋְ AdMustment of The matter discussed director who was requested a leaYeof 1І) Po-ShinChang attendance agreed to pass)ڟұܜૺְ compensation for the absence due to conÀict of interest pertaining; in accordance each matter as proposed or Chairmanof the Board with Article 206 of the Company Law, a oidance is required Y reYiewed. 56 as prescribed inArticle 178 of the same Law. ௐ206୧ڱᛉ९̰टᄃᑕਫ਼ᔖְѣҋ֗ӀचᙯܼĂֶ̳Φ ௐ178୧ఢؠਫ਼ᔖĄڱϡТ Po-ShinChang ăڟұܜ९ ૺְטྋੵᚮຽ༰ͤࢨ The matter discussed director who was requested a leaYeof (ˠְܑ(1ІڱᏉଠ۵۵Њѣࢨ̳Φ̝ܛRemoYal of the Non έາ absence due to conÀict of interest pertaining; in accordance Competitionrestriction (Delegate of TaishinHoldings) with Article 206 of the Company Law, aYoidance is required as prescribed inArticle 178 of the same Law. ΐૻְົᖚਕ̝ϫᇾᄃેҖଐԛෞҤĄޘѐܕ̈́ޘ༊ѐ .3 តՀ̈́Ķ̳ฟ൴Җ̳Φϲְ̝ڱٽϹדăᙋڱநͪᄃ઼ᅫତĂ̈́੨Ъ̳ΦڼĂ೩̿ώҖ̳ΦޘטநڼࠎઉБ̳Φ Ąڱ࣒ࢎώҖְ̈́Ⴞ၅ˠᏴᓝᏱົڌ۵ޘ96ѐٺఢ̝ࢎؠĂڱķඈڱనཉ̈́ᑕᏲೈְีᏱ 3. Assessment of obMectiYes and implementation status in the area of strengthening the powers of the board of directos for the current and immediately past years will be carried out. We will reYise our bank's rules for the election of directors and superYisors inthe 2007 generalshareholders Ņ meeting, inorder to strengthenourcorporate go Yernance system, improYe our corporate goYernance quality to be in alignement with international practices, and comply with the amended Compay Law, Securities Exchange Act, as well as the Implementation Rules for Assigning Independent Directors and Matters of Compliance to be Followed by Publicly Listed Companies. ᆶࢍ؎ࣶົྻүଐԛĈĄ(˟) b. Operation status of the Auditing Committee: None. ந၁ચчमளଐԛڼநྻүଐԛ̈́ᄃᅙҖຽ̳ΦڼώҖ̳Φ(ˬ) c. The current status of corporate governance within our bank and its comparison against the Corporate Gover- nance Best-Practice Principles for Banks. ந၁ચчఢؠ೬ᜨ̝ีϫĄኛણዦώҖშ৭http://www.chb.com.twĄڼᅙҖຽ̳Φֶ.1 1. Disclosure informationinaccordancewith Corporate Go Yernance Best-Practice Principles for Banks. Please refer to http://www.chb.com.tw. ୧ 25 ͡ 11 ೩ᇥ̝ഠ 181-2 ѐ 97 0.0285 ୧̈́ௐ ॡĂົڌ۵ޘѐ 96 14-2 ͟Ҍϔ઼ 25 मளଐԛ̈́ࣧЯ ͡ 11 ѐ चᙯܼᛉ९ਫ਼ᔖ̝ેҖଐԛăᅙҖ ந၁ચчڼᄃᅙҖຽ̳Φ ࠹Ą ࠹Ą ࠹Ą ࠹Ą ࠹Ą ၅ˠķ̝ఢؠĄ ࠹Ą 94 ௐڱٽϹדந၁ચч̝ఢؠ Ğᑢֶᙋڼந၁ચч̝ఢؠ Ğ˟ğТ˯Ą ĞˬğТ˯Ą Ğ˘ğᄃᅙҖຽ̳ΦڼĞ˘ğᄃᅙҖຽ̳Φ ְЇഇࠎˬѐĂҋ ϔ઼ب႕ॡĂనཉ ϲְĄώҖώبְЇഇبώҖώٺఢؠĂ ٺĄЯѩώҖͤ͟ ந၁ચч̝ఢؠ࠹Ąڼந၁ચч̝ఢؠ ᄃᅙҖຽ̳Φڼந၁ચч̝ఢؠ Ğ˟ğᄃᅙҖຽ̳ΦڼĞ˘ğᄃᅙҖຽ̳Φ ந၁ચч̝ఢؠڼϲְ̝ˠᇴăЇ ഇă೩ЩăᏴЇ͞ёඈ࠹ᙯְีĄğ Ğ˟ğᄃᅙҖຽ̳Φځ੨Ъ࣒ԼౢĂྶ ந၁ચч̝ఢؠڼĂ̏ĶϲႾ Ğ˟ğᄃᅙҖຽ̳Φ̚ڱᄃᙋϹڱĞ˘ğ̳Φ య ώ ฟ Ą ᗝ̝༱̶̝ܛјϹד෴ѣᆊᙋצЊ݈͡ ଐԛĄ ந၁ચч̝ఢؠ࠹ĄڼĄ ᄃᅙҖຽ̳Φ ߤ८Ą ANNUAL REPORT 2006 57 ĄآԸྤˠᏱநՐᐺְ ˠĄ ֍̝Ϲ߹ᄃ఼გĂ֭ΞూШˠ˧ྤͅߍܑٕ྿ຍ 1 ߆ඉ̝ેҖଐԛăְ၆Ӏ͗މᐍᏊณᇾ̝ેҖଐԛă᜕ܲঐ۰ٕ ࢎؠĶְăႾ၅ˠซ࣒ࢍ൪၁߉ࢋᕇķĂ֭̏ฟؕ၁߉Ą Ą ྤੈშ৭ķĄ ĂᄃĶ̳ฟྤੈ៍ീ৭ķాඕĄ ะ̈́೬ᜨĄ ൴ο̳̈́ົځĂዋॡΡฟ۰ົăᄲޘטੑಡăΗѐಡ̈́؞ಡඈྤफ़Ă݈ྤफ़ᄃ ॡ˯შߤዦĄώҖనѣ൴֏ˠޘķშࢱĂ೬ᜨԆፋ̝ѐีְ ඈĂ֭ѣ͗މăӀचᙯܼˠăԸྤˠăڌચ۵ڇăϦ෦ቢྖĂͽ ఢؠՀೱᘪᙋົࢍर̈́ෞҤϲّĄֶ ྻүଐԛ Ķ̳ฟྤੈ៍ീ৭ķ೬ᜨٺͽ˯۵Њ۰ĂӮనѣయˠࣶؠഇಡĂ֭ ԼචଐԛĈĄ̈́ีְ ) ˠĂ̚ӣ૱ዸႾ၅ˠ 5 10% གྷࡔથՏ͡דĂᖣͽநঐ۰̝ᅮՐĂͽჯ᜕ᝋৈćΩώҖᙋ ᛉޙٕ ) ( ˘ ( ఢؠĄ΄ڱགྷయˠ̝ᏴЇ̈́ࠁЇӮЪ࠹ᙯܲ / གྷ̝ᖚࣶĞΒӣҋၓ̼ᅙҖᖼЇˠࣶğĂ࠰ࠎЇĂ̢֭࠹ࣘЇ̝ܲ ăࢋεڍඕ / ) ܲགྷྤயЧҋგநĂགྷົࢍरߤ८ᘪᙋĄ / ࣧЯĄ Ӏचᙯܼˠຍ֍̝Ϲ߹఼̈́გĂΞᐌॡͅߍຍ֍̈́ڌ೩ֻࣶ̍ă۵ γෞᝥ؎ٕ Ă֭གྷົࢍरڶېٽనϲᛳᘨĂ·̶೬ᜨᄃၓ̼ᅙҖ̝Ϲڱགྷֶܲ ( / ၓ̼ᅙҖ̈́ၓᅙܲ ࣶົඈΑਕ؎ࣶົĄ : ӄםफ़ྤٽˠ̝ϡĂΩώҖϺ೩ֻ࠹ᙯϹٽԸྤˠ̈́ഇఱϹדͽᐺ;ᙋ ၓᅙܲ ၓ̼ᅙҖᄃၓᅙܲ : : : ቐĂ೩ֻࣶ̍ຍܫҖႾ၅ˠᖚᝋॡĂᐌॡᄃЧ৺ࣶ̍ࠀኘ఼Ą Ⴞ၅ˠᄃᅙҖࣶ̍มĈώҖЋຽ̰ొშ৭Ăనѣຍ֍ે มĈТ˯˘̝Ğ˘ğĄڌ֍Ą Ⴞ၅ˠᄃ۵ ăࢲᐍგந߆ඉ̈́ࢲڶېˠซ࣒̝ଐԛăְय̈́Ⴞ၅ˠЕयְົ ҋෞځቁࢎѣЧᆸ৺གྷநˠ̝ᖚయĂ̷֭၁ેҖĄ ĂᑕୃځඈĂӮܑีְ ăЋຽయЇ̈́ᇇҖࠎķˬڶमளଐԛ̈́ࣧЯĈĞमளğ ኛણዦĶᒉྻໄ̝ ෞҤķٕώҖĶၓ̼ᅙҖБژᄃࢲᐍგநְี̝̱ăࢲᐍგந̶ژ̶ Ꮙგ፟ᙯ̝ఢؠᏱநܛϏᏱநćϏֽᏲೈإࢨ̳Φ൴ο̝Ķ˯ξ˯ᕢ̳ΦְăႾ၅ˠซ࣒ଯҖࢋᕇણ҂ቑּķĂ Ķ̳ฟྤੈ៍ീ৭ķϦಡրĂ·̶೬ᜨĄ यਫ਼ᔖĂ̙ણᄃᆶ८ՙᛉְีĄ ϲְ̈́Ⴞ၅ˠĂ߇ 2. 3. 1. ੑચგந ྤயგந యˠొЊ ˠ̶ְᗓ ᖚࣶొЊĈၓ̼ᅙҖ̈́ၓᅙܲ ᛉٕ۬৾ඈְีĄޙˠࣶந˯ˠࣶ̝ Ķ̳ฟྤੈ៍ീ৭ķćώҖనѣˠయ̳Φྤੈ̝ᄓٺгķ ྤੈĂ֭೬ᜨڌந࠹ᙯྤੈĂགྷϤώҖშࢱĶ۵ڼҖЧีࢦࢋְЇ̳́Φ 2. 3. 1. ̝˘ચĂ֭నѣϦ෦გĂྎтώܑڇॡᏙྙ̈ 24 Ğ˘ğώҖ֭ϏనཉĶϲႾ၅ˠķĄଘώҖϫ݈నѣႾ၅ˠ Ğ˟ğ ͕̚ڇމĶၓ̼ᅙҖБྤੈშ৭ķనѣ֏ડĂ̈́నѣٺĞ˘ğώҖ ڌႾְᄃѣࢋ۵̝ڌăࢋ۵ڌࢋ۵ٺĞ˟ğώҖ၆ Ğˬğ ᘪᙋົࢍर̝؎ЇăྋЇ̈́ಡ࿌Ă࠰གྷְົ८ࣞĂ֭ٺనཉϲְĄ Ğ˟ğώҖ၆إĞ˘ğώҖ შࢱͽ೬ᜨ̳ฟྤੈĂۤົ̂ி̈́ԸྤˠӮਕᐌۍཉѣࡻ͛ޙĞ˟ğΩ ؠ̳ฟ೬ᜨڱཉϲĶޙĶၓ̼ᅙҖБྤੈშ৭ķ̰ٺĞ˘ğώҖຽ http://www.chb.com.tw ีϫ ந၁ચчमளଐԛ̈́ڼநྻүଐԛ̈́ᄃᅙҖຽ̳Φڼၓ̼ᅙҖ̳Φ 2. ොĈኛซˢώҖБྤੈშ৭ણዦ ۰Щಏ̝ଐԛטଠ ཉᅙҖშ৭ඈğٸ࿅ົځˠᄲڱăޘט৭ăؠˠయᅙҖྤੈ̝ᄓะ̈́೬ᜨăར၁ ൴֏ˠ ੈ̝ଐԛ Ăܛˠ᜕͕ܲ̚నཉ᜕̝ܲૄٽԸྤˠ̈́ഇఱϹדˠᙋڱĂϹ̟ੑဥี Ğ̳Φğࠎְ̈́Ⴞ၅ˠᔉ෴యЇܲᐍ̝ଐԛඈğĈ ᒒଐԛͫ֨̈́טϲᄃᙯܼЋຽࢲᐍଠგ፟ޙĞˬğᅙҖ ̝ڌࢋ۵̈́ڌᅙҖ̝ࢋ۵טᛉٕ۬৾ඈયᗟ̝͞ё Ğ˟ğᅙҖೠ೪၁ᅫଠޙڌᝋৈ Ğ˘ğᅙҖந۵ڌăᅙҖ۵ᝋඕၹ̈́۵˘ Ğ˟ğؠഇෞҤᘪᙋົࢍरϲّ̝ଐԛ ăְົ̝ј̈́ᖚయ Ğ˘ğᅙҖనཉϲְ̝ଐԛ˟ நෞᝥಡӘ۰ڼநҋෞಡӘٕ؎ຽ፟ၹ̝̳ΦڼĞ˛ğώҖ̳ΦౢăᖐఢăЧีຽચఢăᝋăᝋయထ̶ ˩ăтѣ̳Φ நྻүଐԛ̝ࢦࢋྤੈĞтְ̈́Ⴞ၅ڼᒢྋώҖ̳Φٺనཉᆶࢍ؎ ˝ăѣӄإᄃନ߉̈́ᆹҖۤົయЇଐԛĈ ώҖޘטώҖ၆ۤົయЇٙଳҖ̝ځநྻүчķ ˣăኛୃڼநྻүଐԛ̈́ᄃĶᅙҖຽ̳ΦڼώҖ̳ΦځăᅙҖనཉᆶࢍ؎ࣶົඈΑਕ؎ࣶົ̝ྻүଐԛ˛ăኛୃ̱ ఼̝ଐԛڌĞ˟ğႾ၅ˠᄃᅙҖ̝ࣶ̍̈́۵ ˬăႾ၅ˠ̝ј̈́ᖚయ Ğ˘ğᅙҖనཉϲႾ၅ˠ̝ଐԛ гĂڌϲᄃӀचᙯܼˠ఼გ̝ଐԛ ώҖБྤੈშనѣ۵ޙαă Ğ˟ğᅙҖଳҖྤੈ೬ᜨ̝͞ёĞтߛనࡻ͛შ ķ೩ֻঐ۰͕̚ڇމᑭ Ğ̱ğѣᙯঐ۰᜕̝ܲĂώҖనѣĶ̝ڍགྷᒉඕ̈́ڶېϏనཉ Ğ̣ğࢲᐍგந߆ඉ̈́ેҖଐԛĈኛણዦĶੑચإӀचᙯܼᛉ९ӮֶĶְົᛉְఢķ̝ఢؠĂੜ ĞαğѣᙯώҖࠎϲְ̈́ϲႾ၅ˠᔉ෴యЇᐍ˙༼ĂЯٺநྤ Ğ˟ğώҖְय̈́Ⴞ၅ˠЕयְົĂ̈́ซ࣒ଐԛĂֶఢؠᏮˢ ĞˬğώҖְ၆ڼăྤੈ̳ฟ Ğ˘ğᅙҖߛనშ৭Ă೬ᜨੑચຽચ̈́ώҖ̳Φ̣ ٙ۵ЊѣٽϹדĞ˘ğώҖְ̈́Ⴞ၅ˠซ࣒̝ଐԛĂຽ̏ણ҂ᄂ៉ᙋ 2. The bank's practice of corporate goYernance and the common corporate goYernance requirements for the banking industry Item Execution Difference from the common requirements 1. Structure of a bank's shareholders and equities 1.1 The means a bank applies for 1.1 Clients and shareholders are welcome to leaYe message concerning any questions or inquiries about the Bank's operations and serYices 1.1 Inaccordancewith the corporate go Yernance dealing with the shareholders' through the Bank s serYice hotline or its Web site. Besides, the Bank has a Call Center to help clients or shareholders solYe their problems guidelines for the banking industry. suggestions and disputes or disputes. 1.2 The bank keeps track of the maMor 1.2 The Bank's maMor shareholders, directors and superYisors of our maMor shareholders, and those with a 10% or higher equity ownership of 1.2 The same as aboYe. controlling shareholders as well as our maMor shareholders. Such information is also disclosed on the web site of the Market ObserYationPost System. their ownership structures. 1.3 Tosetupa¿re wall and risk control 1.3 a. Separate personnel rules: 1.3 The same as aboYe. mechanism to reduce the risks Employees: inYolYed with a bank's related Employees of the Bank and those of the CHB Insurance Agent/ Broker (including those transferred from the CHB) are all full-time staff companies without cross employment. Managers in charge: Managers in charge of the Bank and those of the CHB Insurance Agent/ Broker are all selected and appointed in accordance with ̚ goYernment regulations. ර b. Financial management: ϔ CHB Life Insurance Agency and CHB Insurance Brokerage Company operate with separate ¿nancial systems, which disclose the details ઼ about their ¿nancial interaction and transactions with the Bank. All the ¿nancial documents should be approYed by the CPA. ˝ c. Assets management: ˩ The Bank and its two subsidiaries CHB Life Insurance Agency and CHB Insurance Brokerage Company manage their assets separately, ̣ ѐ and they all haYetheir¿nancial reports approYed by the CPA. ą 2 Board of directors and its responsibilities ѐ 2.1 Independent directors 2.1 The Bank doesn't nominate independent directors 2.1 Inaccordancewith the corporate go Yernance ಡ guidelines for banking industry. (The bank has a plan to follow Articles 14-2 and 181-2 of the Securities Exchange Act by appointing independent 58 directors whenthe term of the currentdirectors expires. The current Board of Directors has a term of 3 years, from NoYember 25, 2005 to NoYember 25, 2008. Therefore, we will reYise our memorandum at the 2007 Shareholders' Meeting and speci¿y thereinthe number of independent directors, term of office, methods of nomination and seletion, etc. 2.2 Regular eYaluationof the ¿nancial 2.2 The Bank follows the decisions of the board of directors in hiring or dismissing the Bank's accountants and the payments for their serYices. 2.2 Inaccordancewith the corporate go Yernance reports and the independent The Bank regularly replaces its accountants to assure impartial assessment and independent auditing on the Bank's ¿nancial reports. guidelines for banking industry. auditing of the CPA 3. SuperYisors and their responsibilities 3.1 The independent superYisors 3.1 The Bank doesn't nominate independent superYisors. 3.1 The requirement of ņindependent superYisorsŇ The Bank currently has 5 superYisors, including 1 resident superYisor. has beenremo Yed from the Company Law and the Securities Exchange Act. 3.2 Interaction among superYisors, 3.2 a. Inperformingtheir duties, super Yisors keep frequent contacts with the Bank's employees of different leYels from all diYisions of the Bank 3.2 Inaccordancewith the corporate go Yernance employees and shareholders so as to haYe better understanding of the Bank's operations. guidelines for banking industry. b. SuperYisors Ys. EmployeesĈEmployees canmake suggestionsor lea Ying messages of their opinions or questions in the communication area of the Bank's Web site. c. SuperYisors Ys. ShareholdersĈThe same as 1.1 stated aboYe. 4.Communications with stakeholders The Shareholders Section of our worldwide web proYides a forum of information exchange and communication for our employees, shareholders Inaccordancewith the corporate go Yernance guidelines and all stakeholders to express their opinions in a timely fashion. for banking industry. 5. Information disclosure 5.1 The Bank's biannual and annual ¿nancial reports are aYailable onits global informationalWeb site, onthe sectionof the Ň Information 5.1 Inaccordancewith the corporate go Yernance 5.1 A company website is set up by the DisclosureŇ. These reports as well as the signi¿cant information about the Bank's operations and its practice of the corporate goYernance guidelines for banking industry. Bank for the disclosure of releYant are also aYailable on the Bank's Web site which is hyper linked to the ņMarket ObserYationPost system Ň sectionof the Web site of the information on ¿nancial status and TaiwanStock Exchange. corporate goYernance. 5.2 To fully disclose its information, a 5.2 Both English and Chinese information are aYailable on the Bank's Web site. For any signi¿cant eYents about the Bank's operations, the 5.2 Inaccordancewith the corporate go Yernance bank has a special group engaged Bank's spokesman holds press conferences or other actiYities to disclose the information to the mass media and the public. The information guidelines for banking industry. on gathering and compiling will be also published onthe ņMarket ObserYationPost System Ň sectionof the Web site of the TaiwanStock Exchange. The Bankhas a the bank's information. The special working group engaged on gathering and disclosing the Bank's information. information is announced through the bank's spokesman, Web site, regularly held press conferences or the meetings with institutional inYestors. icies ed by estors Y ement status isors and has Y Y ernance guidelines Y sectionof the Web site of the TaiwanStock nd be responsible for their duties. Ň Difference from the common requirements ob educationof its directors andsuper M ects. M for banking industry. or shortcomings (or recommendations) and impro M ationPost System ious month to the fund set up by Securities and Futures In Y Y nof the pro iew. Y ects related to their interests, liabilities insurance policies purchas M er .1 of the table) so as to satisfy their demands and protect their interests. Y isors in a bank's regular meetings, implementation of risk management pol Y Market Obser ernment's policy. estors to make their claims. Y ņ Y aluationresults, ma Y et its own guidelines for the on- ed with any pro Y of Operations O ol Y Ň ANNUAL REPORT 2006 59 ior ewiththego Y isclosed onthe Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes ఢؠ isors for not getting in ant transactions data to help in ߏ ߏ ߏ ߏ ߏ ߏ ߏ ߏ ߏ ߏ Y with the Y Regulations ernance for Banks and why. (No difference) InConformity ซ࣒ߏӎЪ iders, clear descriptions of the e Y Y ning employee's duties and so on. Managers should implement their duties a isors, participationof directors andsuper alue of securities transactions brokered by it in the pre ¿ Y Y ides rele Y 3 3 3 3 6 18 12 12 12 12 ice pro ซ࣒ ॡᇴ Y orate Go Hours ant committees. In accordance with the corporate go Y ser in Financial Conditions and Operating Results or the Bank's Web site. Execution Enterprise Benchmark and Ethical Beha Ň ņ ects related to their interests during the course of decision and executio M ernance Y er, our bank also pro Œ arious channels for clients to express their complaints or opinions (see 1 Y Y AssociationinTaiwan ed with any pro Corporate Go Y ົםநڼˠ̚ර̳Φڱဥۤ ob educationof directors andsuper ol M ons. Y ob education guidelines published by the Taiwan Stock Exchange (TSE) and s M mergency, and set aluation of Risk Management isors at the Bank are not required to buy liability insurances in complianc Y customer policies, the practices of directors and super Y arter, structural guidelines, and principles for de Unit in Charge ll not get in isors andtheir participationinthe meetingsof the board of directors is d Y Finance ons such as on- of Banking and έ៉ܛᏉࡁੰ TaiwanAcademy Ą ࢦ̂ੈिĄ ᏱಏҜ ery month a sum in the amount of 0.000285% of the total Analysis & E Y ņ estors and futures transactors; moreo Y lling its social responsibilities. Please refer the ¿ Œ Œ Œ Œ ŒŒ Œ Œ ŒŒ Œ Œ isors, the directors and super isors: the Bank refers to the on- Y Y ernance Principles or Related Guidelines. Y ernance system, and explain how it is different from the Guidelines on Corp Currently, the Bank does not set up an auditing committee and other rele Y Information Center aluation reports done by the company itself or outsourced to professional ົܛૄדˠᙋڱੑဥ Securities & Futures Y http://newmops.tse.com.tw http://newmops.tse.com.tw isors. Y ob educationof the directors andsuper M ernance e Y Name Item ႾְؖЩ Charles W.Y. Wang Sheng-Rong Chuang Eric K. Chen HsienChangWu Suming Lin Cheng-Shien Lin Thomas K.K. Lin Yu Ti Chen Tu-Kung Chen Teo Chang Chiu Please refer to http://newmops.tse.com.tw. Please refer to http://newmops.tse.com.tw. ܑᜓ˘Ⴞְซ࣒ଐԛޘѐ en: None. நྻүଐԛፑྋ̝ࢦࢋྤੈĄڼநӵ́ఢౢ۰Ăߤྙ͞ёĄ ֖ͽᆧซ၆ᅙҖ̳ΦڼΦ̳ ኛણዦ̳ฟྤੈ៍ീ৭ ኛણዦ̳ฟྤੈ៍ീ৭ Y 3. 3. Searching the Corporate Go 4. 4. Other information helpful for better understanding the Bank's operati )95 ob educationof directors andsuper M ͳ͛ ఄ౼ၷ઼ڒ ౘ⟳ಟ ౘ˿ॲ پԠ ӓጳޙౘ ᅛ͵ڒ ᇇၓܘ ߆ጳڒ α ( d. On-Job Training of Directors and Supervisors in 2006 In addition, ourProtection securities Center brokerage for arm paying will the claims contribute of e securities in Exchange. required them to follow. Please refer to http://www.chb.com.tw. Ĉ 9.6 Consumer protection: The Bank has set the guidelines for dealing with e 9.5 Risk control policy and implementation: Please refer the 9.7 The responsibilities of managers are stated in the Bank's corporate ch and otherbank functional committees of a 9.4 Without independent directors and super and risk assessment standards, implementation of consumer protection or the bank for9.1 directors On- and super shall be gi 9.3 Inaccordancewith the rules of the board of directors, the directors wi 9.2 Information about the on- 6. Operations of the auditing committee 10. If there exist corporate go 9. Other information helpful for better understanding the Bank's operati 7. Please describe the Bank's8. corporate Please go describe the bank's systems and measures for ful Note -̶̈́ࢋεᄃԼචଐԛ e. Major malfeasant cases and operational improprieties and reצڱ࿁ޘѐ˟ܕ(̣) ෦۰Ĉ medial measures adopted in the past two yearsءయˠٕᖚࣶЯຽચ˯Ϛཋགྷᑭ၅.1 1. Legal ActionIn YolYing Bank ExecutiYes or Employees : 94.12.23ŒŒ̶Җ൴ϠҖࣶϣŒŒ൸މ͗ܫૄܛ९Ă An employee of the branch, Clerk Tian, illegally sold a client's trust fund дઍᏱ̚Ą onDecember 23, 2005. Probe is beingcarried out by the Bureau ofإአߤԊϫ݈ InYestigation. გົ)ͽჳܛᏉႾ༛გந؎ࣶົ(˭ჍܛགྷҖ߆ੰ΄ڱ࿁ͅ.2 2.Fines Paid for Banking Law Violations: :ᔫ۰ (1)A sales representatiYe of the branch, Clerk Tian, illegally sold a client's (1)94.12.23ŒŒ̶Җ൴ϠҖࣶϣŒŒ൸މ͗ܫૄܛĂ trust fund on December 23, 2005. The Financial SuperYisory Commission ௐ45୧̝1Ă८ჳᔫາᄂ။1,000 Mudged our bank Yiolating of Article 45.1 of the Banking Law and decided toڱგົͽ࿁ͅᅙҖܛ ༱̮Ą impose a ¿ne of NT$ 10 million. (2)With regard to the case of Clerk Lin of the branch embezzling the money ŒŒ൸ϡҋજᕢࣶ፟ഠี९Ăڒ95.7ŒŒ̶Җ൴ϠҖࣶ(2) stored at the ATM on July 2006, the Financial SuperYisionCommission གྷܛგົ95.11.13ܛგᅙ(˟)фௐ09520007481ཱི issued the Penalty Order No. 09520007481 dated NoYember 13, 2006 that ቁ၁ે ¿nds our bank in Yiolation of Article 45.1 of the Banking Law for failing to֭ޘטטϲዋ༊ѣड़̰ొଠޙ३Ă၆ώҖЯϏਕ ,ௐ45୧̝1Ă८ჳᔫາᄂ။200༱̮Ą establish and implement a suitable and effectiYe internal control systemڱҖĂ࿁ͅᅙҖ ̚ and imposes a ¿ne of NT$ 2 million. ර ϔ გົᚑ̟۬ϒ۰Ĉ 3. Admonishments Issued by the Financial SuperYisory Commissionfor Seriousܛεགྷ.3 ઼ :Ꮙგந̈́ࢍᇴф̝ϒቁ Operational Improprietiesܛഠൺ႒ಡĂᇆᜩٸ94.4.30࿈ഇ ˝ Ą Failure to precisely report statistics of oYerdue loans on April 30, 2005 hasّ ˩ ̣ undermined the integrity of ¿nancial management and statistical results. გົĂܑϯಶ˯೬۬ϒְีӮቁܛᖬב.95.8.25ٺώҖ̏ ѐ Our bank has replied to the FSC in writing on August 25, 2006, explaining ą ̏ԼචĂ֭̏༛ܳЧ๊ќಏҜቁ၁ֶ93.1.6.ੑ߆ొາ࣒ϒ ѐ that improYements haYe beenmade to the abo Ye-mentioned matters and ഠ๊ќഠӑந all collectionunitsha Ye beenurged to record andreport o Yerdue loans inٸಡ ĶᅙҖྤயෞҤຫε౯೩Ё́࿈ഇ ഠĄ accordance with the Rules for Making ProYisions against Estimated Lossesٸķ̝ఢؠᏱநЕಡ࿈ഇڱᏱ of Bank Assets and for Handling OYerdue Loans and Bad Debts, which was 60 reYised by the Minstry of Finance on January 6, 2004. :ௐ̱˩˘୧̝˘ఢؠ̶ְีڱგົֶᅙҖܛགྷ.4 94.12.23ŒŒ̶Җ൴ϠҖࣶϣŒŒ൸މ͗ܫૄܛĂܛ 4. Any Item Committing Penalty Pursuant to Article 61-1 by Financial :நາ SuperYisionCommitteeצგົ΄ώҖྋੵᄅၑҖࣶϣŒŒᖚચ̈́ᇶઃώҖ An employee of the branch, Clerk Tian, illegally sold a client's trust fund ຽચĂ֞ώҖቁ၁ԼדԸྤѣᆊᙋܫܛᏱநপؠ͗މ on December 23, 2005. The Financial SuperYisory Commissionordered გᅙ our bank to ¿re the wrongdoer, Clerk Tian, and suspended our business ofܛරϔ઼95ѐ4͡4̚͟ٺგົܛࠎͤĄĪטච̰ొଠ ͽቁ၁ે handling securities trust inYestments for new clients pending proof of realטфௐ09585007690ཱིĂ̎ቁᄮώҖ̰ొଠ(˟) ҖĂ̟ࣞ౯ߤī improYements of our internal control system.ĞThe suspicionhas been released onApril 4, 2006 by FSC. ğ Ꮙ፟ၹщБჯ 5. Disclosures of ¿nancial losses caused by corruptions by employees, maMorܛЯˠࣶᄅၑăࢦ̂ઊ൴९ІٕϏ̷၁ֶ.5 ࣎ҾٕЪ incidental cases or maMor breaches of security regulations with lossesޘຍࢋᕇ̝ఢؠ൴ϠщБְ߇ඈĂЧѐڦ᜕ :ࢍ၁ᅫຫε࿈̣˼༱̮۰: exceedingNT$50 millioninindi Yidual and/or combined cases An employee of the branch, Clerk Tian, illegally sold a client's trust fund on 94.12.31ώҖŒŒ̶Җ൴ϠҖࣶϣŒŒ൸މ͗ܫૄ December 23, 2005. Our bank has pressed charge and taken tort action .95.11.29၆ϣࣶ೩ϔְኪᐺ෦Ą againstthe Clerk TianonNo Yember 29, 2005ٺĂώҖ̏ܛ ᏉႾ༛გந؎ࣶົؠᑕ̟೬ᜨְ̝ี: 6. Other Mandatory Disclosures as Instructed by the Financial SuperYisoryܛགྷҖ߆ੰ.6 Commission: None. Ą f. Major resolutions passed at General Shareholders' Meeting & ְົ̝ࢦࢋՙᛉְี̈́ેҖଐԛ Board of Meeting in 2006̈́ົ૱ڌ95ѐ۵(̱) :ՙᛉְี: Decisions made at the 2006 GSMົ૱ڌ95ѐ۵ 1. Recognition of the Bank's 2005 annual ¿nancial statements. ੑચಡܑ९ĄޘٚᄮώҖ94ѐ .1 2. Distribution of the Bank's 2005 earnings. 2. ώҖ94ѐޘᓪຫᇥྃ९Ą 3. Amendment of the Bank's memorandum. 3. ౢ࣒Լ९Ą 4. Amendment of the Bank's Procedures for Conducting DeriYatiYes .நԔķ९Ą Transactionsٽ࣒ࢎĶώҖଂְࢉϠّથݡϹ .4 5. RemoYal of the no-competition restrictions on board members. 8, ision Y ANNUAL REPORT 2006 61 isionbe Y e Y ed. Y ember 24, 2006 Y iew that substanti Y February 16, 2007 acated post of Chief Auditor was to Y ͟ ernment shares and some Y 16 Board of Directors held on ᛬ੜЃب ˠְளજ ᙜЇᖚચ dismissal Retirement st Resignation ͡ oting of the day. ed for effecting a capital decrease. 2 ᙜᖚٕྋЇࣧЯ Y ¿ ѐ Personnel Changes nancial consulting company was discussed ¿ 96 Reasons for resignation or e beencompleted. Y nance or accounting matters ate ownership were of the ¿ Y e tasks ha Y Extraordinary Meeting of the 21 ྋЇ͟ഇ al by the competent authority, Vice President Chao-Nan Hsieh was to th Y lled by Vice President Chao-Nan Hsieh, that Vice President Ming-Wen e as the acting president. Date of dismissed ¿ Y nounced by statementconcerning among the board material directorsing decision or and approved the supervisors by major content the of board that meet- disagreement: 23, 2007 adopted thebe decisions that the Chang was to retire, and that Director James Shih of the Treasury Di January 13, 2006 adopteda the Vice decision President. that Mr. Walter W. T. Yeh be2006 hired adopted as the decisionthatrecalled and the those Type shares A be Preferred nulli Stock of our bankbe September 29, 2006Hsieh adopted the be decisionthat hiredretirement Vice againto age. PresidentChao-Nan the same post uponhis reachingthe statutory adopted the decisionshis that post President and Chen-Jaustatutory Chief Chen Auditor age; was John and to C. thatappro resign Peng Mr. from Julius was Chen toser be retire hired upon as reaching President the and prior to and Director James Y. G. Chen of the International Business Di hired as Vice Presidents. at the 10 Whenthe issue of selectinga cer in charge of ¿ 5. The 12th Extraordiary Meeting of the 21st Board of Directos held on March g. If there is disagreement which is already recorded or an- Decisions made at the 20061. Board The of meeting 2nd Extraordinary Meeting of the 21st Board2. of The Directors 7th held Extraordinary Meeting on of the 21st Board of Directos held on July 2 3. The 9th Extraordiary Meeting of the 21st Board of Directos held on 4. The 5th Meeting of the 21st Board of Directos held on No Implementation status: All of the abo October 14, 2006, directorsdirectors representing representing the the pri go discussions should not beConsequently, they begin did before not procedureal participate in disputes the were resol Ї͟ഇז 2004/05/012003/07/17 2006/01/20 2006/12/01 2005/12/20 2006/12/01 Date of appointed ؖЩ Name ೆၷᇈ ౘ̯ซ ౘ֚ߌ JohnC. Peng Chen-Jau Chen James Y.G. Chen Ѩᓜॡְົՙᛉ఼࿅ᓁቊ८ Ѩְົ ՙᛉ఼࿅ᓁགྷநౘ֚ 12 5 ˿Ѩᓜॡְົՙᛉ఼࿅؎Їཧ༱ Ѩᓜॡְົՙᛉ఼࿅ќаώҖϥ Ѩᓜॡְົՙᛉ఼࿅ઘᓁགྷநᔁ 2 7 9 Ѩᓜॡְົ 10 ௐب ௐب ௐب ௐب ௐب 21 21 21 21 21 ௐب 21 Title ͟ௐ ᖚჍ ͟ௐ ᓁቊ८ ᓁགྷந ͟ௐ ͟ௐ ͟ௐ ௐ President 24 23 isionHead of Treasury 13 28 29 Y ͡ ͡ ྤܛᒉྻܜ ͡ ͡ ͡ 3 11 1 7 9 EVP & Chief Auditor ѐ ѐ ѐ ѐ ѐ ซˢ၁ኳ̰टኢĂ༊ ͟ϏણᄃܑՙĄآᛉϏᗃ݈Ă̙ۋኢႶᏴੑચᜪય̳Φ˙९Ă̳۵̈́ొ̶ϔ۵ܑᄮࠎ Ԕયᗟඈ 95.10.14 ۰Ăࢋ̰टĈځࡔᐂٕ३ࢬᓏ ְٕႾ၅ˠ၆ְົ఼࿅ࢦࢋՙᛉѣ̙Тຍ֍ͷѣ ᄃੑચಡӘѣᙯˠ̀ᙜᖚྋЇଐԛ ) ) ९ĄטྋੵώҖְᚮຽ༰̝ͤࢨ ࠎઘᓁགྷநĄ გ፟ᙯ८݈ࣞĂᇶϤᔁઘᓁགྷநߌշ நĄٺ᛬ੜЃćདЇౘஏҐ АϠࠎᓁགྷநĂبᓁགྷநᖚચăᓁቊ८ೆၷᇈעߌᙜ পҾ۵ăዚੵ۵Њ̈́Ᏹநഴྤ९Ą ౘ̯ซࠎઘᓁགྷ நĄܜщă઼ᅫᒉྻޙ߉ܜᒉྻܛྤ ͛ੜЃć؎ЇځϤઘᓁགྷநᔁߌշፉЇăઘᓁགྷநૺ ᛬ੜЃĂГѨ؎ЇፉЇઘᓁགྷநĄبߌշ SVP & Di ˛ ˣ ( h. Disclosures the resignation or dismissal of managerial of ( ְົ̝ࢦࢋՙᛉְี 1. 95 .5 2. 95 5. 96 3. 95 ҖଐԛĈ ˯ЕՙᛉְีӮ̎ેҖԆலĄે 4. 95 αăົࢍर̳ྤੈ̝೬ᜨăົࢍरՀೱଐԛ̈́ D. Disclosure of the Accountant's Fee, Changes of Accountants, and Other Matters (˘) ົࢍर̳ྤੈ̝೬ᜨ a. Disclosure of the accountant's fee ಏҜ: າέ။˼̮ Unit: NT$1,000 ົࢍर̝ߤ८ഇม ߏӎஉᄏԆፋົࢍѐޘ ܧᆶࢍ̳ Period of Inspection by ચٙЩჍ ᆶࢍ̳ Non-Auditing Feeְ ࢍरؖЩ Accountant CoYering ౯ොົ Accounting Auditing Name of Accountant a complete fiscal year Remark Firm Fee నࢍ ̍થ൳ ˠ˧ྤ ߤ८ഇมޘט ̈ࢍ ӎNoĞො1ğ System Corporate Human ߏYes Inspection Other Subtotal (NoteNoteote 1) Design Registration Resources Period ችԈே ਃၷᐌ 4,500 Y Hung-Hsiang Tsai Long-Swei Won ችԈே ঔγ̶Җ 1,650 Y ๔ຽிܫ Hung-Hsiang Tsai OYerseas Branch Deloitte & ችԈே ̰ଠߤ८ ̚ Touche 1,000 Y ර Hung-Hsiang Tsai Internal Control Inspection ϔ ችԈே រྤ 50 50 Y ઼ Hung-Hsiang Tsai Capital Verification ˝ ᅈ ொᖼؠᆊ ځӕѠ ˩ DIWAN,ERNST 700 700 Y ̣ Peter lu Transfer Pricing ѐ &YOUNG ą ѐ ಡ (˟)Հೱົࢍरྤੈ b. Changes of Accountants Їົࢍर۰Ĉ݈ٺ1ăᙯ 62 1. Exiting accountants: Հೱ͟ഇDate of change ϔ઼95ѐ3͡17͟March 17,2006 ځՀೱࣧЯ̈́ᄲ ̳Φຽચ̈́გநᅮࢋBusiness and Management Requirements Reasons for Changes Made & ReleYant Explanations ༊ְˠ Accountant ົࢍर ؎Їˠ EYent Accountant Appointer ڶଐ Ї؎צЇˠٕົࢍरٕ̙ͤତ؎ܼځᄲ જͤ؎Ї SerYice Contract Terminated by Appointer or Accountant / Not Y Termination of Appointment Accepting Continued Appointment ᚶᜈ)؎Ї)צГତ̙ Y Not Accepting (Continued) Appointment າѐ̰ᘪ൴ܲຍ֍ͽγ̝ߤ८ಡӘ३ຍ֍̈́ࣧЯ Unquali¿ed Opinions in Auditing Reports Certi¿ed withinthe Last 2 None Years and Their Reasons ࢍٕࣧ၁ચAccounting Principles or Practicesົ ੑચಡӘ̝೬ᜨDisclosure of Financial Statements ѣ ߤ८ቑಛٕՎូAuditing Scope or Steps Yes ᄃώҖѣ̙Тຍ֍ ࢍٕࣧ၁ચAccounting Principles or Practicesົ Any Disagreement with the Bank's Opinions Other No Y Reasonځᄲ ೬ᜨְี(ώௐ˟˩˘୧̝˘ௐ˟ഠௐ˘ϫௐ̣ᕇ̈́ௐ̱ᕇ ᑕΐͽ೬ᜨ۰) Other Things Disclosed (Disclosure Required by Articles 21.1.2.1.5 None & .6 of This Guideline.) ANNUAL REPORT 2006 63 ͟ liated ¿ 17 ͤ͟ ͡ None 3 17 ኳ٪۵ᇴ ᆧĞഴğᇴ ͡ ѐ None None. shareholding Long-Swei Won 4 Hung-Hsiang Tsai 95 Changes in pledged March 17, 2006 Deloitte & Touche ϔ઼ ࢍरְચٙົܫ๔ຽி ਃၷᐌ ችԈே As of April 17, 2007 ༊ѐޘၟҌ None None None None None None None None None ഴğᇴ ( None 5,000 5,000 50,000 ѣ۵ᇴ ᆧ Changes in shareholding nance or accounting matters has in ¿ ed public accountant or at an af None ¿ ኳ٪۵ᇴ Changes inpledged ᆧĞഴğᇴ ᘪᙋົࢍरٙᛳְચٕٙᙯܼٺѐ̰അЇᖚ shareholding ѐޘ ĈĄבೇ̝ tem 1 and item 2, point 3 of this Guidelines: None. 95 cers, and Principal Shareholders ğ ¿ g Accountant eOf rm of its certi c Transactions or on Likely Opinions (5,000) (7,000) (4,000) (9,000) (5,000) Y 27,000 cerinchargeof (5,000) ڍຍ֍Ꮩྙְี̈́ඕ ¿ ¿ (10,000) (20,000) (18,000) (22,000) (30,000) ѣ۵ᇴ ¿ ᆧĞഴğᇴ Ğ Changes in 160,225,000 shareholding isors, Executi Y None. None. Name ؖЩ Ĉ Ĉ Ji Yu Chang Tang Huei-Mei Chang Wen-Huang Hsieh James Y.G. Chen Ming-Hsien Lin Tsung-Pi Weng Tzer LinWang Alexander C.H.Lin Fangming Tseng Chaur-Her Tang Ju-lanChu ഼ሗ ૺ࡚ ᄨᜋ ځ۾ၿ അܦڒ ጳ ਃᓐჅ ͳፄអځڒ Ꮙଠ۵۵Њѣࢨ̳Φ Taishin Financial Holding Co., Ltd. ች࡚ Huei-Mei Tsai ૺ࣫ࡔൂ ᔁ͛ ౘ̯ซܛέາ eof eof Y Y ğڌĞࢋ۵ Ą Title ᖚჍ : Spouse of Manager Spouse of Manager Name of Accountant Accounting Firm Date of Appoint Spouse of Director Їົࢍर၆ώௐ˟˩˘୧̝˘ௐ˟ഠௐ˘ϫ̈́ௐ˟ϫௐˬᕇְี݈ ᚶЇົࢍर۰Ĉٺᙯ isor Representati Manager Manager Manager Manager Manager Manager Manager Manager ۵ᝋொᖼྤੈĈĄ ۵ᝋኳ٪ྤੈĈĄ Y ְăႾ၅ˠăགྷநˠ۵ᝋតજଐԛ è è ˘ܕăᓁགྷநăయੑચٕົࢍְચ̝གྷநˠĂܜᅙҖ̝ᅙҖְ̝ Ћຽ۰ 2. 2. Information of shareholding transfer 3. 3. Information for shareholding pledge 1. 1. Changes in Shareholdings of Directors, Super 3 3. Response by exiting accountants regarding Article 21.1, paragraph 2, i 2 2. Replacement accountants: enterprise: None. the most recent year held a position at the accounting ) ˬ ˠְܑ੨ઊ Spouse of Representati Institutional Director ְ੨ઊ གྷநˠ གྷநˠ གྷநˠ གྷநˠ གྷநˠ གྷநˠ གྷநˠ གྷநˠ གྷநˠ੨ઊ གྷநˠ੨ઊڱ ˠְႾ၅ˠ Super Institutional Directorڱ ࢍरؖЩົ ચٙЩჍְ ࢍࣧ̈́၆ੑચಡӘΞਕᘪ൴̝ Consultations on Accounting Measures or Principles concerning Speciົٕڱࢍந͞ົ̝ٽЇ݈ಶপؠϹ؎ Ї̝͟ഇ؎ ᚶЇົࢍर၆݈Їົࢍर̙Тຍ֍ְี̝३ࢬຍ֍ Written Opinions by Succeeding Accountant on Disagreements with Outgoin in Financial Statements ă۵ᝋតજଐԛ E.The Changes in Shareholding̣ ( c. The bank's chairman, president, or any managerial of ม̢ࠎᙯܼˠྤफ़ڌă۵ּͧΚ݈˩̂۵̱ F.Related Party Transaction 96ѐ4 ͡17͟ April 17, 2007 ࠹̢มڌ۵̂˩݈ ѣੑચົࢍ̳ಡ ௐཱི̱ᙯܼˠ̝ᙯܼ ੨ઊăϏјѐ ӀϡˠЩཌྷЪ ۰ĂЩჍ̈́ᙯܼĄ ѣ۵Њ ࢍѣ۵Њ Top tenshareholders̃̄ ώˠѣ۵Њ Shareholding by Shareholding who meet the related Shareholding ؖЩ Spouse & Minor under othersŅ party disclosures term ౯ො Name Children name of No.6 of Accounting Note Standards shall disclose name and relationship. ۵ᇴ ۵ ۵ᇴ ۵ ۵ᇴ ۵ ЩჍ ᙯܼ Shares ͧத% Shares ͧத% Shares ͧத% Name Relationship Ꮙଠ۵۵Њѣࢨ̳Φܛέາ ̚ ර Taishin Financial Holding Co., 1,560,225,000 25.13 ϔ Ltd. ઼ ੑ߆ొ ˝ 757,120,460 12.19 ˩ Ministry of Finance າЍˠုܲᐍ۵Њѣࢨ̳Φ ̣ ѐ Shin Kong Life Insurance Co., 340,474,000 5.48 ą Ltd. ѐ ಡ Җ߆ੰ઼छ൴णૄܛგநົ National DeYelopment Fund, 170,735,123 2.75 ExecutiYe Yuan ௐ˘થຽᅙҖ۵Њѣࢨ̳Φ 64 168,577,953 2.71 First Commercial Bank ϖˬЋຽ۵Њѣࢨ̳Φ 67,197,163 1.08 YunSanCorp. ڟૺұܜְ 3,195,362 0.05 ChairmanPo-ShinChang None None None None ఼̂ᅙҖგ̂ጯ ੜЃܛࢍထѣࢨ̳ΦԸྤ͗ JPMorganChase Bankas 60,000,000 0.97 Directed Trustee For the UniYersity Retirement Plan Trust Fund ๗ᖳᅙҖέΔ̶Җ გͧপ̳ΦԸྤ͗ HSBC as as Directed Trustee 48,322,000 0.78 For the PICTET & CIE Trust Fund થ࡚֣ˠုܲᐍˬ ۵Њѣࢨ̳Φ 46,730,000 0.75 Massmutual Mercuries Life Insurance ݑᎸய۵Њѣࢨ̳Φ 41,696,903 0.67 NanHo Ind.Co., Ltd. % ۵ ּͧ estment Y ტЪԸྤ Omnibus in ۵ᇴ Shares ANNUAL REPORT 2006 65 % ۵ּͧ % Unit: Shares; % December 31, 2006 ͟ isors, general managers, Y 31 ͡ 12 ice president, the chief of each ಏҜĈ۵ć Y ѐ estment subsidiaries directly or ຽ̝Ըྤְטତٕมତଠۡ e ision or branch and the Bank Y 95 Y Y di ͚፟ၹგ̈́ᅙҖ̶̈́ܝநăЧొם ְăႾ၅ˠăᓁགྷநăઘᓁགྷநă indirectly controlled and managed by ۵ᇴ The in Shares directors, super executi % 2.49 4.40 3.00 0.41 0.71 0.01 0.65 7.25 6.89 9.00 3.53 5.00 4.95 3.96 9.14 1.16 1.00 0.46 2.94 5.13 0.00 4.77 0.09 0.70 11.35 s ۵ 100.00 100.00 ּͧ Ņ estment 6,300 Y 23,230 41,768 19,906 in 500,000 500,000 426,615 382,500 700,000 125,000 235,504 ώҖԸྤ The Bank ۵ᇴ 2,058,000 3,197,700 4,634,000 2,000,000 5,000,000 1,771,047 5,748,382 Shares 96,427,620 59,160,059 15,866,695 32,286,333 20,342,813 54,000,000 30,000,000 235,726,532 200,000,000 elopment Corp. Y ice Co. enture Y Y ice Co. ice Y Y ested Y ᖼԸྤְຽ estment Holding Co. Y In ice Corp. isionEnterprise,Ltd. Y Y Pursuant to Article 74 of the Banking Act. ă ტЪ۵ּͧ G. Omnibus Shareholding Ratio˛ Ĉ er Transit International Co. Y ٙ۵Њѣࢨ̳Φ Company TaiwanStock ExchangeCorp. έ៉Ꭴຽ۵Њѣࢨ̳Φ TaiwanSugar Corporation έ៉˧۵Њѣࢨ̳Φ TaiwanPower Company έ៉࠷ྺ̍Ћຽ۵Њѣࢨ̳Φ TaiwanAgricultural & IndustrialDeٽϹד۵Њѣࢨ̳Φ Ltd. MasterLink Securities Corporation ၓᅙˠ֗ܲᐍநˠ۵Њѣࢨ̳Φ CHB Life Insuranceၓᅙܲᐍགྷࡔˠ۵Њѣࢨ̳Φ Agency Co.,CHB Ltd. Insurance Brokerageέ៉ᙋדέ៉̈̚ЋຽᅙҖ۵Њѣࢨ̳Φ Taiwan Business Bank,̮ಱᙋ ะܲ̚გඕზ۵Њѣࢨ̳Φ Debt Instruments DepositoryวЍྤயგந۵Њѣࢨ̳Φ and ClearingSun Co. Asset Taiwan Management CorporationדᏉ۵Њѣࢨ̳Φ Ltd. Hua Nan Billsึ̂ྈ۵Њѣࢨ̳Φ Finance Corporation Taiyu Products Corp. έ៉ைܛדચ۵Њѣࢨ̳Φ Corporation Taiwan Financial AssetsੑԈࡊԫ۵Њѣࢨ̳Φ Ser Financial ESolution Co.,රݑைڇᏉྤயܛᓑྤயგந۵Њѣࢨ̳Φ Telcom Taiwan Asset Managementέ៉ܛٙ۵Њѣࢨ̳Φ TaiwanFutures Exchange ֲ͉შᆵᐛ۵Њѣࢨ̳Φ Asia Pacific Broadbandέ៉ٽέ៉ഇఱϹ ۵Њѣࢨ̳Φ Ser Financial Information Serੈྤܛ۵Њѣࢨ̳Φ ING Aetna FinancialੑܫԸྤדϠ઼ᅫฟ൴۵Њѣࢨ̳Φ In E щᙋܜฟ൴઼ᅫԸྤ۵Њѣࢨ̳Φ CDIB & Partners ચ۵Њѣࢨ̳Φ Lien-An Serڇགྷந۵Њѣࢨ̳Φ Chi Yi ConstructionέΔξঈѣࢨ̳Φ Management Company Taipei Coal GasέΔγ๗གྷࡔ۵Њѣࢨ̳Φ Corp. Taipei Forex Inc. ᓑщޙЪјϠԫ۵Њѣࢨ̳Φ China Chemical Synthesisέ៉ෛְຽ۵Њѣࢨ̳Φ Industrial Co.,TaiwanTele Ltd. ˛ᆆ̼̚ ௐ˛˩α୧ٙࠎ̝ԸྤĄ NoteڱොĈֶܼώ ๒ྤଐԛ Capital Raising ă۵Њ̈́۵Ӏ A. Shares and Dividends˘ a.Capital Sources ۵ώֽ InJune1949 the Taiwanpro Yincial goYernment replaced (˘) ԼࢭĂ൴Җາέ။Ăϔ઼39 the Taiwaneseyuanwith the New Taiwandollar. Changטϔ઼38ѐ6͡Бέ၁߉။ Hwa Bank adMusted its registered capital accordingly to གྷ࿅ޢѐ12͡ώҖྤώᗝአፋࠎາέ။˟Ѻα˩༱̮Ą NT$2.4 millioninDecember 1950. InDecember 1997, the ѣ̝ώҖ఼ Taiwanpro Yincial goYernment made public its shareholdingsعкѨᆧྤĂϔ઼86ѐ12͡Ăέ៉࠷߆ ۵۵ைซҖ̳ฟ٢๒ĂͽેҖ̳ᒉְຽϔᒉ̼̝߆ඉĄϔ઼ in the Bank in line with the goYernment's policy of ¿nancial priYatization. The Bank was of¿cially priYatized onJanuary ώҖᗝؠ۵ώࠎغϔᒉĄҌϔ઼95ѐט87ѐ1͡1͟ϒёԼ 1, 1998. Ă၁ќ۵ώ఼۵ࠎ48,094,756˼̮̈́˙ As the end of 2006, the Bank's authorized capital stood̮˼65,000,000 পҾ۵ࠎ14,000,000˼̮Ăࠎ઼̰ྤώฯݓĂૄᖂᘦ̝ᅙ at NT$65,000,000,000, presented in 4,809,475,600 common shares and 1,400,000,000 Type-B preferred shares at a par ҖĄ Yalue of NT$10 per share. The Bank is one of the leading commercial banksinTaiwaninterms of paid-incapital and sound ¿nancial structure. ̚ ර ८ؠ۵ώ ၁ќ۵ώ ౯ො ϔ ѐ/͡ ൴Җᆊॾ Authorized Capital Paid-inCapital Note ઼ Month/ Offering ᗝ ۵ώֽܛ ᗝ ۵ᇴܛ Year Price ۵ᇴ ˝ ˩ Shares Volume Shares Volume Sources of Capital ᆧྤĞ఼۵ğܛன ̣ ѐ 17,197,857,875 ą Issuance of common for ѐ ಡ cash னܛᆧྤ Ħ˙পҾ۵(ռ๒ğħ Issuance of preferred stock 66 for cash 95.12. 10̮ (Type-B preferred share) Dec. 6,500,000,000 65,000,000,000 6,209,475,600 62,094,756,000 NT$10 (PriYate Placement) 2006 14,000,000,000 ࠳ዶᖼᆧྤ 23,574,824,836 Capital Increase by Earning ྤώ̳᎕ᖼᆧྤ 7,322,073,289 Capital Increase by Capital Surplus ८ؠ۵ώ ۵Њᙷ Authorized Capital ౯ො Category of Shares ߹఼дγ۵Њ Ϗ൴Җ۵Њ Ъࢍ Note Outstanding Shares Un-issued Shares Total ఼۵ ˯ᦦ۵ை 4,809,475,600 290,524,400 5,100,000,000 CommonShares Listed Stocks ռ๒Ħ94.9.29ܛგᅙ(˟)фௐ0942000915 ८ࣞħϏ˯ξ۵ைĂˬѐ̰̙ᖼឰבཱི পҾ۵ PriYately placed ĞFSC ApproYal Letter˙ 1,400,000,000 1,400,000,000 Type-B Preferred Shares No. 0942000915 issued onSep. 29, 2005ğstocks are prohibited from being transferred in the ¿rst 3 years. TotalTotal 9,475,600 Ъࢍ ANNUAL REPORT 2006 67 ͟ 31 ͡ Shareholder and Personal 12 γ઼፟ၹ̈́γˠ ѐ Foreign Institutions Dec. 31, 2006 Dec. 31, 2006 Dec. 31, 2006 % 95 ͟ ͟ % Par Value NT$ 10 Par Value NT$ 10 ۵ּͧ 31 31 ͡ ͡ ۵ּͧ 12 12 ѐ ѐ 95 95 ࣎ˠ Personal Shareholder ̮˩Տ۵ࢬᗝາέ။ ̮˩Տ۵ࢬᗝາέ။ Shares ѣ۵ᇴ ˠڱ Shares Shareholder ѣ۵ᇴ Other Institutional 287 2,512,151,886 52.23% ܛᏉ፟ၹ Financial Institutions 11 1,400,000,000 1,400,000,000 100.00% 100.00% ˠᇴڌ۵ ˠᇴڌ۵ Number of Shareholders 17 10 419 239,419 234 240,099 ernment Number of Shareholders 15.15 26.90 5.76 41.07 11.12 100 Y Institutions ፟ၹع߆ Go 940,541,963 1,670,252,887 357,623,585 2,550,184,090 690,873,075 6,20 ～ ～ ඕၹڌ۵ 5,00015,00020,00030,00050,000 104,631 10,990 7,989 6,588 5,966 257,203,928 136,272,800 145,296,209 166,191,002 237,813,789 5.35% 2.83% 3.02% 3.46% 4.94% 200,000400,000600,000800,000 2,030 755 218 133 284,416,488 213,734,595 107,845,118 93,281,588 5.91% 4.44% 2.25% 1.94% TotalTotal 240,099 4,809,475,600 100.00% 10,000 32,027 248,986,048 5.18% 100,000 4,484 322,348,738 6.70% 1,000,000 72 65,379,030 1.36% StructureStructure of of 999 63,929 18,554,381 0.39% ～～～～～～Total ～ ～ ShareholdersShareholders ～ ～ Ъࢍ 1 1,000,001 % Ъࢍ 1,000,001 ۵̶৺ cationof Shareholding 1,000 ۵̶৺ 5,001 cationof Shareholding ¿ Shares 10,001 15,001 20,001 30,001 50,001 ¿ ˠᇴ ۵ּͧ 100,001 200,001 400,001 600,001 ѣ۵ᇴ 800,001 পҾ۵˙ ఼۵ ۵ᝋ̶ଐԛ ඕၹڌ۵ 2. 2. Type-B Preferred Share 1. 1.CommonShares ) ) Number of Holders Classi Classi ˬ ˟ c. Distribution of Shareholding ( ( b. Structure of Shareholders ᇴณ Quantity Щಏڌα)ࢋ۵) d. Major Shareholders 96ѐ4͡17͟ Apr. 17, 2007 ۵Њ Shares ѣ۵ᇴ ۵ּͧ ЩჍڌࢋ۵ Shares % MaMor Shareholders Ꮙଠ۵۵Њѣࢨ̳Φܛέາ 1,560,225,000560,225,000,225,000225,000,000 25.135.13.1313 Taishin Financial Holding Co., Ltd. ੑ߆ొ 757,120,460 12.192.19.199 Ministry of Finance າЍˠုܲᐍ۵Њѣࢨ̳Φ 340,474,0000,474,000474,000,000000 5.48 Shin Kong Life Insurance Co., Ltd. Җ߆ੰ઼छ൴णૄܛგநົ 170,735,123 2.7575 National DeYelopment Fund, ExecutiYeYuan ௐ˘થຽᅙҖ۵Њѣࢨ̳Φ 168,577,9538,577,953,577,953577,953,953 2.7171 ̚ First Commercial Bank ර ϖˬЋຽ۵Њѣࢨ̳Φ ϔ 67,197,163,197,163197,163,163 1.0808 YunSanCorp. ઼ Ąڌ۵ᝋּͧ྿Ѻ̶̝˘ͽ˯۵ځොĈܼЕ ˝ ˩ Note: Referring to declared shareholding ratio up to oYer 1%. ̣ ѐ ą ۵ᇴăͧத̈́ڌѐ ۵݈˩Щ۵ ಡ The top ten shareholders and their shareholding amount and ratio 96ѐ4͡17͟ Apr. 17, 2007 68 ؖЩ ѣ۵ᇴ ͧதڌЩѨ ۵ Ranking Name Shares % Ꮙଠ۵۵Њѣࢨ̳Φ 1,560,225,000 25.13ܛέາ 1 Taishin Financial Holding Co., Ltd. ੑ߆ొ 757,120,460 12.19 2 Ministry of Finance າЍˠုܲᐍ۵Њѣࢨ̳Φ 340,474,000 5.48 3 Shin Kong Life Insurance Co., Ltd. Җ߆ੰ઼छ൴णૄܛგநົ઼छ൴णૄܛგநົ 170,735,123 2.75 4 National DeYelopment Fund, ExecutiYeYuan ௐ˘થຽᅙҖ۵Њѣࢨ̳Φ 168,577,953 2.71 5 First Commercial Bank ϖˬЋຽ۵Њѣࢨ̳Φ 67,197,163 1.08 6 YunSanCorp. ఼̂ᅙҖგ̂ጯੜЃܛࢍထѣࢨ̳ΦԸྤ͗ 60,000,000 0.97 7 JP Morgan Chase Bank as Trustee For the UniYersity Retirement PlanTrust Fund ๗ᖳᅙҖέΔ̶Җგͧপ̳ΦԸྤ͗ 48,322,000 0.78 8 HSBC as Trustee For the PICTET & CIE Trust Fund થ࡚֣ˠုܲᐍ۵Њѣࢨ̳Φ 46,730,000 0.75ˬ 9 Massmutual Mercuries Life Insurance Co. ݑᎸய۵Њѣࢨ̳Φ 41,696,903 0.67 10 Delegate of NanHo Ind.Co., Ltd. idends per shere Y ANNUAL REPORT 2006 69 erage closing price of the said year ͟ Y 31 Unit:Unit: NTD NTD ͡ 3 ѐ idends shall be ༊ѐޘၟҌ Y 96 As of Mar. 31, 2007 ಏҜĈາέ။ idends per shere/A ecashdi Y Y idends and the rest shall be Y erage closing price of the said year/Cash di idends to shareholders of erage closing price of the said year/Earnings per share Y idends issued do not exceed Y Y idends to shareholders of Type idends to shareholders of Type Y ѐѐ Y Y 94 2005 idends ratio=A 6 12.01 12.41 Y idends yield=Cash di 1.791.00 -7.67 - 0.35 - Y 11.32 - - 20.27 - - 13.2412.06 12.01 13.59 24.2015.7520.27 22.40 14.65 17.93 24.00 19.30 21.74 4.93% - - idends. idends. Stock di idend distribution proposed by shareholders' Y Y Y ѐѐ - 366,000,000 ------idend Policy: idends and bonuses are mainly issued in the form of 95 2006 Y A preferred (NT$ 4.262005 per and 1.67 share, for including 2006): NT$ 2.59 639,010,932. for B preferred (NT$ 1 per share): NT$ 1.4 billion. commonshare (NT$ 1 per share): NT$ 4,809,475,600. Y 6,209,475,600 4,809,475,600 6,209,475,600 stock di half of the totalasset amount. ratio is But, less ifrate than the plus Bank's the one capital competent percent,not to the authority's more risk abo ruling than 30% of total di According to the Bank'sdi memorandum, shareholders' cash di meeting: A.Appropriationof cash di B.Appropriationof cash di C.Distributionof cash di 2. The di f. The Policy and Implementation1. of Di Dividends Note 1 : PriceNote to 2 earnings : ratio=A PriceNote to 3 di : Cash di ѐޘ ̮Ą 94 FYFY 5,600 ᆆ̮Ą ༱ ѐޘ idends Y ̮Ăӣ ̮Ą 14 947 Ĉ ) 932 ᆆ 4.26 ) ̮ ༱ 3)3)3)3) 1 48 idend(Note 3) ѐޘЯᓪຫĂ߇՟ѣ ොොො Y ( Ĉ Տ۵ ) ( 94 Տ۵ 3,901 ( ̮ (%)((%)( ώ̳᎕੨۵ Allotment by capital surplusྤ ࠳ዶ੨۵ Allotment by earning 1 ᆆ 6 t ratio(Note 2) ¿ ) ) Ĉ Տ۵ 1)1) 2)2) ) ( idend Y ො ො ̮ ( ( erage outstanding stock erage 1.67 Y Y ۵ӀതӀத Yield rate of cash diܛன ώৈͧ Price to earning ratio(Note 1) ώӀͧ Pricetopro ᎕Ϗ;۵Ӏ Accumulated undistributed di ᐺ੨۵ Stock grant ۵Ӏ Cash diܛΐᝋπӮ۵ᇴ A Տ۵࠳ዶ EPS ன ̶੨݈ Before distribution ̶੨ޢ After distribution Highest Ҳ Lowest πӮ A ѐޘ 95 ۵िĂܛΪ੨൴னޘѐ ::: 95 ̮̈́ estment ItemsItems ᐺ੨۵၆ᅙҖᒉຽᒻड़̈́၆Տ۵࠳ዶ̝ᇆᜩĄ ᑢᛉ̝ᐺ੨۵၆ᅙҖᒉຽᒻड़̈́Տ۵࠳ዶ ̝ᇆᜩĈ ώҖົڌώѨ۵ ڶې۵Ӏ߆ඉ̈́ેҖ Y 2.59 Տ۵ξᆊăஐࣃă࠳ዶ̈́۵Ӏྤफ़ޘѐ˟ܕ ۵िܛனڌᇥ;ϥপҾ۵۵ ۵Ӏܛனڌ੨఼۵̶ ۵िܛனڌᇥ;˙পҾ۵۵ Տ۵πӮќሹᆊĄޘ۵ӀƟ༊ѐܛ۵ӀതӀதŶՏ۵னܛ۵ӀĄ ĈனܛՏ۵πӮќሹᆊƟՏ۵னޘĈώӀͧŶ༊ѐ Տ۵πӮќሹᆊƟՏ۵࠳ዶĄޘĈώৈͧŶ༊ѐ ) idends ) ) 2 3 1 Y C. B. A. ᛉᑢᛉ۵Ӏ̶੨̝ଐԛĈົڌᛉᑢᛉ۵Ӏ̶੨̝ଐԛĈώѨ۵ົڌ۵Ӏ߆ඉ ώѨ۵ ۵Ӏ߆ඉ ۵Ӏ̙࿅Ѻ̶̝ˬ˩Ăዶࠎ۵ை۵ӀĄܛგ፟ᙯఢؠͧதΐ˘࣎Ѻ̶ᕇॡĂ݈ࣧᑕ አፋࠎனٺ۵ӀࠎĂ۵ை ۵Ӏͽ̙࿅ΗᇴࠎࣧĄҭώҖҋѣྤώᄃࢲᐍّྤய ͧதҲܛனٸ۵िࡓӀͽ൴ڌώҖౢఢؠĂ۵ arning Per hares ˛ ̣ ̱ ( Analysis for return onin ژԸྤಡ࿌̶ Տ۵࠳ዶ Earning Per Shares Տ۵۵Ӏ Di Տ۵ஐࣃ Net assets per share ีϫ Տ۵ξᆊ Market price per share ො ො 2. ( 1. ො e. Net Assets Per Share, EPS, Dividends and Market Price Per Share ( -ˣ) ̶ࣶ̍ࡓְ̈́ăႾ၅ˠ࿌౻ g.The Effects of Stock Dividends on the 2006 Opera) -ᅙҖౢٙྶ̶ࣶ̍ࡓְ̈́ăႾ၅ˠ࿌౻̝јᇴٕቑ tion Results, Earnings Per Share and Sharehold.1 ಛĈ ers' Returns on Investment: The Bank only paid cash diYidends in 2006. For 2005, due ᘳৼٙڱώҖ̳ΦౢఢؠĂՏѐՙზѣ࠳ዶॡĂᑕֶ to an operating loss on the year, there were no stock grants .to weigh on our business performance and EPS ڱ೩ЕѺ̶̝ˬ˩ࠎڱᓪຫĂГֶᅙҖޘѐـඁ̈́ᑓྃͽ ĂᑕᐹА̶ޢ೩ЕপҾ࠳ዶ̳᎕΄ڱؠ࠳ዶ̳᎕ֶ̈́ ࠁϥপҾ۵̈́˙পҾ۵̝۵िĂѨಶዶᗝ˭Еఢ h.Employees' Bonus and the Compensations for ؠ̶ࠁ̝Ĉ Board of Directors and Supervisors 1.The ratio or range for employees' bonus and the ՙᛉ̶ࠁ̝Ąົ૱ڌ۵िăࡓӀĂϤְົ೩ኛ۵ڌA. ۵ compensations for board of directors and superYisors B. ְăႾ၅ˠ࿌౻Ѻ̶̝˘ҌѺ̶̝˘ą̣Ă֭ᝋ listed in the Bank's memorandum. ྍ˯˭ࢨ̝ቑಛ̰ѐՙؠĄ In accordance with the Banking Law and other relatedٺົְ ྍ˯˭ regulations, any annual earnings should ¿rst be used forٺC. ࣶ̍ࡓӀѺ̶̝˘ҌѺ̶̝ˣĂ֭ᝋְົ ࢨ̝ቑಛ̰ѐՙؠĄ paying tax and making up preYious losses, if any, and then ְົ఼࿅̝ᑢᛉ੨൴̶ࣶ̍ࡓඈྤੈĈ the Bank will appropriate 30% of the remaining surplus as .2 ̚ a legal reser e and another portion as a special reser e. ࡓӀ4ᆆ298༱4,912̮ĂႾְ࿌౻5,756 Y YܛA.੨൴ࣶ̍ன ර All other earnings will then be allocated to shareholders ϔ ༱9,273̮Ą ઼ as diYidends. Holders of Type-A preferred shares and B. ੨൴ࣶ̍۵ைࡓӀ۵ᇴ̈́Κ࠳ዶᖼᆧྤּ̝ͧĈĄ Type-B preferred shares haYe the priority regarding ˝ ˩ నზՏ۵࠳ዶ diYidend pay-out. The diYidends will be allocated in̝ޢC.੨൴ࣶ̍ࡓӀְ̈́ăႾ၅ˠ࿌౻ ̣ ѐ Ğඁޢğࠎ1.72̮Ą accordance with the following requirements: ą A.The Board of Directors proposes the annual diYidends ѐ and bonus for shareholders and submits the proposal ࠳ዶϡͽ੨൴ࣶ̍ࡓӀְ̈́ăႾ၅ˠ࿌౻ଐԛĈޘಡ 3. ˯ѐ to the shareholders' meeting for approYal. ЯᓪຫĂ̶੨ࣶ̍ࡓӀ̈́Ⴞְ࿌౻ĄޘώҖ˯(94)ѐ B.The annual compensation for the Bank's directors and 70 superYisors, ranging from 1% to 1.5% of the Bank's .ᅙҖ෴аώҖ۵Њଐԛ: ¿nal earnings, is decided by the Board of Directors (˝) C.The annual bonuses for the Bank's employees, ranging from 1% to 8% of the Bank's ¿nal earnings, is decided by the Board of Directors. 2.The informationofproposed distributionof employees' bonus approYed by the Board of Directors: A. Payment of NT$ 402,984,912 in cash bonus to employees and NT$ 57,569,273 in compensation to directors and superYisors. B. Stock bonus distributed to employees and its share of the capitalization of retained earnings: None. C. The pro forma EPS (after tax) after the distributionof employee bonus and director/superYisor compensation was NT$ 1.72. 3.The distributionof earningsof the pre Yious fiscal year in the employees' bonus and the compensations for the board directors and superYisors: Due to anoperatingloss in2005, there was nodistribution of employee bonus or director/superYisor compensation. i. Repurchase of the Bank's Shares: None. ANNUAL REPORT 2006 71 ͟͟͟͟ ͟ ͟ ƦƦƦ ƦƦƦ 151515 15 15 ƦƦ ͡͡ ͡ ͡ 3.903.90 4.604.60 3 3 3 ѐ ѐ 25.69 ѐޘௐ˘ഇ ğדĞ˚ᙷ ಏҜĈາέ။Ζ̮ аĄדЧ ݈̣ѐ ޢ̣ѐ 91 ഇ͟ז ѐഇ˩ 101 דᏉๅܛѨึҜ ࢬᗝΐ ࢍ༊ഇᑕࢍைࢬӀि˚ᙷד႕ ̣ѐ̝͟Ăͽๅب൴ҖדᙷЧ˚ٺώҖ ƦƦƦ ཱི ཱི ཱི ཱི ཱི ཱཱཱཱཱཱཱིིིིིིི ͟͟͟͟͟ ͟ 15151515 15 ƦƦ 1.001.00 ͡͡͡ ͡ 33 3 25.69 ѐ ѐ ѐޘௐ˘ഇ ğדĞʹᙷ 98 91 ഇ͟ז ѐഇ˛ דᏉๅܛѨึҜ 0910000228 0910000228 0910000228 0910000228 0910000228 091000022809100002280910000228091000022809100002280910000228 ͟͟͟͟ ͟ ͟ ͟͟͟͟ ͟ ͟ ᇾķğΐ 313131 31 31 151515 15 15 фௐ фௐ фௐ фௐ фௐ фௐфௐфௐфௐфௐ ) ) ) ) ) )))) ͡͡ ͡ ͡ ͡͡ ͡ ͡ ώҖ˘ѐഇؠഇᐼᄊхഠ ൕӘ፟જӀதĞᖎჍĶΐቅֶ ------A3 ˟ ˟ ˟ ˟ ˟ ˟˟˟ 5 5 5 3 3 3 ( ( ( ( ( (( ѐ ѐ ѐ ѐ 90 91 ᎗࢚ෞඈ̳Φ ٸᏉྤٺБϡ ͟͟͟͟͟͟ ௐ˘થຽᅙҖܫొ ͟έੑᏉ ͟έੑᏉ ͟έੑᏉ ͟έੑᏉ ͟έੑᏉ ͟έੑᏉ 1515151515 ƦƦ 8 8 8 8 8 ƦƦ ͡͡͡͡ ͡ ͡ ͡ ͡ 333 1 1 1 3.85 25.69 ѐѐ ѐ ѐ ѐޘௐ˘ഇ ğדĞ˙ᙷ 98 91 91 ഇ͟ז ѐഇ˛ דᏉๅܛѨึҜ ͟ ͟ ͟͟͟͟ 15 15 151515 ƦƦ ƦƦ ͡ ͡ ͡͡ 0000 ӎ ߏĂᛳௐ˟ᙷྤώ ߏĂᛳௐ˟ᙷྤώ ߏĂᛳௐ˟ᙷྤώ 3 3 3 3.30 25.69 ѐ ѐ ѐޘௐ˘ഇ 1,000,000 4,000,000 14,000,000 1,000,000 ğדĞϥᙷ 35,356,13477,856,028 35,356,134 77,856,028 35,356,134 77,856,028 35,356,134 77,856,028 96 91 ഇ͟ז ѐഇ̣ דᏉๅܛѨึҜ ᙷדᏉๅܛ ד୧ ഠ ѨึҜๅ ט ϡࢍ൪ྻܛᖼೱ̈́Ϲೱ୧Іࢨྤ ഇᔘώ ϒ૱ ז ஐ ࣃ̝ͧதĞƦğ ޢՙზޘᗝΐࢍ ݈̏൴Җ߹఼дγ ̝ዶᗝΚ൴Җ݈ ˘ѐܛᆹࡗଐԛаٕ೩݈ ᐺ̝୧ഠ Ϧಡ൴Җڱ ஐࣃޢՙზޘ၁ќྤώᗝ ݈͞˘ѐޘᐺϏᐺᔘዶᗝ ᔘ݈˘ѐ ۵Њѣࢨ̳ΦדᏉ፟ၹ ၹ ѨึҜ ̂රᙋܛर ዚᘪᙋົࢍर ፟ᘪᙋޠˠ ٚᘪᙋצ ᐺึҜܲᙋ፟ၹצ ഇࢨ ϡෞඈ፟ၹЩ Ⴭăෞඈ͟ഇ ̈́ෞඈඈ৺ܫ ߏӎࢍˢЪॾҋ ѣྤώ̈́ᙷҾ ࢬ൴။ Җ൴ᓁᗝ Җ ᗝ г ᆊ ॾ Ҿ ಥΖ༱ έΔξ ֶࢬᗝ൴ າέ။ Ӏத ̚δგ፟ᙯ ८ࣞ͟ഇăཱི͛ ൴Җ͟ഇ ൴ҖଐԛדᏉๅܛă˟ B. Issuance of Financial Bonds Unit: NT$1,000 Subordinary bonds Subordinary bonds Subordinary bonds Subordinary bonds Types of Financial Bonds (Type A) (Type B) (Type C) (Type D) for 1st quarter, 2002 for 1st quarter, 2002 for 1st quarter, 2002 for 1st quarter, 2002 Date and serial no. January 8, 2002 approYed by authority Letter No. Tai-Tsai-Rung-2nd-Zhe 0910000228 Date March 15, 2002 Par Value 10 million Issuance Venue Taipei City Dollar NTD Offering Price Sold by par Value Proceed Raised 1,000,000 4,000,000 14,000,000 1,000,000 1.00% oYer The Bank's Board's Àoating interest First 5 years 3.90% Interest Rate 3.30Ʀ 3.85Ʀ rate (brief as ņMargin Last 5 years 4.60% IndicatorŇ) of 1-year time saYing deposit ̚ 5-year term, 7-year term, 7-year term, 10-year term, ර Term maturity dateĈ maturity dateĈ maturity dateĈ maturity dateĈ ϔ March 15, 2007 March 15, 2009 March 15, 2009 March 15, 201212 ઼ ˝ Mortgage Priority Second-Lien ˩ Guarantor --- ̣ ѐ Trustee --- ą Underwriting Organization Grand Cathay Securities Corporation ѐ Veri¿cationCPA --- ಡ CPA-auditor of the Financial --- Report Veri¿cation Financial Institution Trust DiYision, First Commercial Bank 72 Settlement Method Payment off Unsettled Balance 0 0 0 0 Paid-incapital during ¿scal year 35,356,134 35,356,134 35,356,134 35,356,134 Net book Yalue onthe date of balance sheet in the preYious 77,856,028 77,856,028 77,856,028 77,856,028 ¿scal year Exercise Normal The Bank is entitled to redeem Bond Type DbythefaceYalue of The conditions and terms for the bond plus current None None None redemptionor early settlement accrued couponinterest from the maturity date of 5-year term after the bond issuance. ConYersion and Exchange Terms None Restriction Terms Subordinary bonds Capital InYestment Plans Fully utilization in ¿nancing Ratio of reported issuing debt and balance of outstanding debt to 25.69Ʀ 25.69Ʀ 25.69Ʀ 25.69Ʀ the net book Yalue onthe date of balance sheetĞƦğ Counting in net capital (risk-based No Yes, Tier II Yes, Tier II Yes, Tier II capital ratio) and its tier Moody's TaiwanCorporation Credit Rating Agency, Rating Date May 31, 2001 and Rating A3 ൴Җܛᗝࠎ Ą ఼۵Տ۵۵Ӏ۰ࠎ֖ྃޘѐޢ ˙᎕ăপҾ࠳ዶ̳᎕̈́ ࠳ዶٕ࠳ዶ̶̙֖ࠁ̳ ޘ۵ि༊ѐܛன̝ޘ ĂϤְົࢎؠপҾ۵ ఼۵࠹ТĄ ఼۵࠹ТĄ ѐ̝̰Ă̙ᖼឰĄ ѐ̝̰Ă̙ᖼឰĄ 3 3 జᏴᓝᝋ̝ҖֹТ఼۵ АᄮᔉᝋĄ Ą ͟ ͟͟͟͟ ͟ ANNUAL REPORT 2006 73 3 333 3 ͡ ͡͡ ͡ Ʀࢍზ 10 10 10 1.8 ѐ ѐ 94 পҾ۵Ğռ๒൴Җğ˙ ѣ̝˙পҾ۵ᖼೱࠎ఼۵ॡڌѐ̝ഇม̰Ă˙পҾ۵۵ ѣ̝˙পҾ۵ᖼೱࠎ఼۵ॡڌѐ̝ഇม̰Ă˙পҾ۵۵ 3 3 ѐޢҌ൴Җ႕ ѐޢҌ൴Җ႕ ఼۵Ăҭͽ̙࿅ٺϥপҾ۵҃ᐹАٺޢࠁ౺ዶੑய̝ึԔĂК̶ 1 1 ѐॡĂϏᖼೱ̝˙পҾ۵ืБᇴᖼೱࠎ఼۵Ą ѐॡĂϏᖼೱ̝˙পҾ۵ืБᇴᖼೱࠎ఼۵Ą 3 3 পҾ۵̈́Ϥ˙পҾ۵ᖼೱ఼̝۵Ăҋ˙পҾ۵Ϲ;͟႕˙ পҾ۵̈́Ϥ˙পҾ۵ᖼೱ఼̝۵Ăҋ˙পҾ۵Ϲ;͟႕˙ ืБᇴ˘ѨᖼೱĄ ืБᇴ˘ѨᖼೱĄ ؠ࠳ዶ ˙পҾ۵ણΐྤώ̳᎕̶̝ࠁĄڱᘳৼЧีඁॕăᑓྃᓪຫă೩ᇥڱֶٺтѣ࠳ዶĂޢՙზޘপҾ۵۵िதֶ၁ᅫ൴Җᆊॾͽѐि ѐ˙ ఼۵۵ӀĂͽ˙পҾ۵Տ۵۵िᄃ ̶ࠁૄᖂĄٸՙᛉ൴ົ૱ڌ۵ޘͽ ࡶ༊ѐٺՙზ পҾ۵۵िॡĂϏ̶ࠁ̶ٕࠁ̙֖̝˙পҾ۵۵ि̙᎕ޘপҾ۵۵िĄтѐ˙ٸĂಶዶᗝᐹА൴ޢᖼೱѐ ၁ᅫ൴Җ͇ᇴࢍზĄ ϥপҾ۵۵ि̈́ޘ۵िĄ൴Җѐ̝ٸᑕ൴ޘ੨۵िૄ͟Ăፂͽ͚;˯˘ѐ̶ ޢٚᄮՙზܑΊົ૱ڌՏѐ۵ٺĂٸѨ൴˘ܛপҾ۵۵िՏѐͽன˙ ҋ൴Җ႕ ౢΩѣఢؠγĂᄃ̈́΄ڱᝋӀཌྷચĂੵ̝ޢ൴Җ႕ ᖼೱͧதࠎ˘۵˙পҾ۵ೱ˘۵఼۵Ą ˙পҾ۵ᖼೱࠎ఼۵ ҋ൴Җ႕ ൴Җ႕ ᖼೱͧதࠎ˘۵˙পҾ۵ೱ˘۵఼۵Ą ౢΩѣఢؠγĂᄃ̈́΄ڱᝋӀཌྷચĂੵ̝ޢপҾ۵ᖼೱࠎ఼۵˙ 1. 2. 3. 4. 5. 1. 3. 4. 2. ѣ࠹Т̝ᐹֳڌᄃ఼۵۵ڌᆧྤ൴Җາ۵ॡĂ˙পҾ۵۵ܛͽனٺ Ąڌ۵ ѣܑՙᝋăᏴᓝᝋ̈́జᏴᓝᝋĂܑՙᝋăᏴᓝᝋ̈́ົڌ఼۵۵ٺ ࢨĄ 1. 3. 5. 4. 2. ᖼೱ୧ഠĈ ᖼೱ୧ഠĈ 5. ൴Җᆊॾ Ʀࢍზ ͟͟͟ ͟͟ ͟ 88 88 8 6.10 ͡ ͡͡ ͡ 99 9 ෛᖼೱј఼۵̝۵ᇴ҃ؠޘᇆᜩᇆᜩ ࡶপҾ۵ᖼೱј఼۵Ăංᛖ ѐ ѐ ϥপҾ۵ 89 Ϗᖼೱ۵ᇴĈಥ߂དྷᆆ۵ ۵ 0 ̮̮ ̮̮ ̮̮ ̮̮ ̮̮ ̮̮ ̮̮ ̮̮ ̮̮ ۵िதֶ၁ᅫ൴Җᆊॾͽѐि ൴Җາ۵ॡĂপҾ۵ᄃ఼۵ ѣ࠹Т̝າ۵ᐹАᄮ۵ᝋĄܛனٺᆧྤᄮ۵ᝋĈܛᇥ·ྤώ ̶̝ࠁĄ ϥপҾ۵໕ᆊ൴Җ̝ྤώ̳᎕̙ᇥ·ྤώĄ జᏴᓝᝋĈѣజᏴᓝࠎְ̈́Ⴞ၅ˠ̝ᝋӀĄ ன̈́ܛ࠳ዶ̈́ྤώ̳᎕ࠎனٺણᄃ఼۵ᙯ̙ ᐹА֖ྃĄޘѣ࠳ዶѐޢͽٺՙ ზ࠳ዶٕΞ̶ࠁ̝࠳ዶ̶̙֖ࠁϥপҾ۵۵िॡĂ Ϗ̶ࠁ̶ٕࠁ̙֖ᗝ̝۵िĂᑕ۵िதͽѐኑӀࢍ ზĂ᎕ޘ၁ᅫ൴Җ ͟ᇴࢍზĄ൴Җ͟ࠎᆧྤૄ͟Ą൴Җഇม̰࣐ѐޘ۵ि༊ѐܛனޘഇѐז̈́ޘ۵िĄ൴Җѐ ̝ٸᑕ൴ޘĂϤְົΩࢎૄ͚͟;˯ѐޢٚᄮ ՙზ३ܑົ૱ڌՏѐ۵ٺĂٸѨ൴˘ܛপҾ۵۵िՏѐͽன ѣܑՙᝋĄົڌপҾ۵۵ٺ ܑՙᝋᄃᏴᓝᝋົڌ఼۵۵ٺ 1. 1. 2. 3. 4. 1. 2. 2. 44.50 39.55 42.87 45.80 41.70 45.07 ώҖ̳Φౢᑕѣ̝ᝋӀĄڌќа̏൴ҖϥপҾ۵̝Б ొٕ˘ొॡĂϏќа̝ϥপҾ۵ᝋӀĂֶ̪ࣧࢎ൴Җ ୧ІؼᜈҌώҖБొќаࠎͤĄ۵िϺֶࣧࢎ̝۵ि தĂ၁ᅫؼणഇมͽѐኑӀ͞ёࢍზĂ̙ຫचϥপ Ҿ۵۵ڱЯ৵ٕ̙Ξԩ˧ଐְͽ ៍މॡώҖЯبͽ࠳ዶٕ൴Җາ۵̝ٙ۵ഠќа̝Ąࡶ 46.49 41.30 50.00 Ҳ πӮ Ҳ πӮ Ҳ πӮ Ҳ πӮ ѐޘѐޘ ѐޘѐޘ ѐޘѐޘ ൴ҖĞᏱநğ͟ഇ൴ҖĞᏱநğ͟ഇ 94 93 95 ༊ѐޘၟ Ҍѐ͟͡ ̶̝ࠁ ᗝࠎࢨĄ ˙পҾ۵ܛ఼۵Ăҭͽ̙࿅൴Җٺ౺ዶੑய̶̝ࠁܑՙᝋ̝Җֹ ᐹА ഇĂഇ႕൴ҖᆊॾќаĄזќаٕᖼೱᇴᗝϏќаٕᖼೱዶᗝќаٕᖼೱ୧ഠ ќа۵ᇴĈಥᆆЁΖ༱۵ Ϗќа۵ᇴĈ ҋ൴Җ͟႕̱ѐ পҾ۵̙ᖼೱࠎ఼۵Ăഇ႕ॡϤώҖ၁ᅫ ڱᗝ ൴Җ̈́ᖼೱٕᄮ۵ᏱܛၟҌѐಡΏОͤ̏͟ᖼ ೱٕᄮ۵ ߹ ఼ д γ প Ҿ ۵ Տ ۵ ξ ᆊ ᝋ Ӏ ܢ ăপҾ۵൴Җଐԛˬ ࢬᗝ൴Җᆊॾ۵ᇴᓁᗝ າέ။དྷ߂̮ፋ າέ။ಥ߂̮ፋ ಥᆆЁΖ༱۵ າέ။ౙ߂ᆆ̮ፋ າέ။෮߂ౙ̮ಥ֎෮̶ፋ າέ။ಥ߂̮ፋ າέ။ણֿౙ߂ЁᆆౙΖज़ֿ༱̮ፋ ಥ߂དྷᆆ۵ ีϫ ᝋӀཌྷચְี ۵ि̈́ࡓӀ ᝋৈᇆᜩ аপҾ۵၆ҋѣྤώᄃࢲᐍّྤயͧ த̝ᇆᜩڌᝋৈᇆᜩă۵ᝋ Ξਕංᛖଐԛ̈́၆னѣ۵ڌ൴Җ୧І၆পҾ۵۵ C. Issuance of Preferred Shares Date of Issuance Sep. 8, 2000 Oct. 3, 2005 Item Type-A Preferred Share Type-BB Preferred Share (PriYate Placement) Par Value NT$10 NT$10 Offering Price NT$40 NT$26.12 Number of shares Offered 150 million1,400 million Proceed Raised NT$6 billionNT$ 36.568 billion Disbursement of 1. DiYidend is calculated at an annual rate of 6.10% of 1.ThecashdiYidend yield for Type-B preferred stock is an annual rate of 1.8% applied to the DiYidends and actual issuing price. price at issuance. Bonuses 2. DiYidends on preferred stock shall be distributed in 2. DiYidends for Type-B preferred stock will be paid out in cash once a year. Following cash once a year after the stockholders shall haYe recognition of the book of closing statements by the ShareholdersŅ meeting, the Board approYed the Bank's financial statements in the of Directors will set the record date inpreparationfor cash di Yidendspayout inrelationto regular annual stockholders' meeting. The Board preferred stock. For the year of issuance or conYersion, cash diYidends will be based on the of Directors shall also fix the date for the payment actual number of days since issuance. of preYious year's accrued diYidend. Cash diYidend 3. Should there be earnings at the end of the year, they should first be used to pay taxes, for the issuance year and the final year shall be coYer losses, contribute to the legal reserYe and the special reserYe, and to pay diYidends calculated based onthe actual numberof days for Type-A preferred stock; and then Type-B preferred stock shall be giYenthe ¿rstclaimon the shares were outstanding.The number of days the remaining earnings for diYidend payment. Should there be no earnings at the end of the ̚ ර outstanding includes the date of issuance. Based year or if the earnings are insuf¿cient for paying diYidends for Type-B preferred stock, the ϔ on the financial statements,if the Bank does not undistributed or insuf¿ciently distributed diYidends for Type-B preferred stock shall not be ઼ giYe earnings or the earnings are not sufficient for carried oYer to following years. ˝ distribution, the diYidend shall continue to be accrued 4. If the GSM decides onpayingdi Yidends for common stock, the higher diYidend per share ˩ and accumulated with interest and shall haYethetop betweenType-B preferred stock andcommonstock shall be used as the calcul ationbase of ̣ priority for payment as soon as the Bank's earnings diYidend distribution. ѐ Right & become suf¿cient. 5. Type-B preferred stock may participate inthe distributionof capital r eserYe. ą Obligations ѐ Remaining Property Priority to common stock but not to be exceed the In terms of interest claims on remaining property, Type-B preferred stock is subordinated to ಡ proceed raised at initial public offering. Type-A preferred stock, but ahead of commonstock. The total amountshall n ot exceed the total par Yalue at issuance. Exercise of Voting 1. InYalidity in Annual General Meeting of common-stock Entitled to Yote, to elect, and to be elected at the common stock shareholdersŅ meeting; rights 74 Right holders. are exercised inthe same way as they are for commonstock shareholders. 2. Validity in Annual General Meeting of preferred-stock holders. Others 1. Not participating in proposal of appropriating retained Whennewstock is issued for cash, shareholders of Type-B preferred stock a nd those of earnings and transferring capital surplus to capital commonstock en Moy the same pre-emptiYe right. which relating to common stock. 2. Capital surplus onofferingType-A preferred stock can not be transferred to capital. 3. Holders haYe right to be elected directors and superYisors. 4. Holders are equal to commonstock holders on subscribing newly issuance of common stock on cash. Recalled or ConYerted Recalled sharesĈ 150 millionsharesshares Shares Unrecalled or ConYerted Shares Unrecalled sharesĈ0 shares 1.4 billion ProYision To be recalled at issuing price six years after date of ConYersion terms and conditions issuance. 1. From the end of the ¿rst year till the end of the third year since issuance, shareholders of Outstanding Type-B preferred stock who wish to conYert their shares to commonstock must do so by Preferred conYerting all of their shares at once. Shares 2. Type-B preferred stock and common stock conYerted from Type-B preferred stock are prohibited from being transferred in the first 3 years since the deliYery of said Type-B Recalling or preferred stock. ConYerting 3. At 3 years after issuance, all unconYerted Type-B preferred stock must be conYerted to commonstock. 4. One share of Type-B preferred stock is conYerted to one share of common stock. 5. Following conYersionfrom Type-B preferred stock to commonstock, unlesslaws, regulati ons or charters proYide otherwise, the rights and obligations concerned will be the same as those for commonstock. se ons erted to Y ery of said Type B Y ate Placement) ateateateate Placement) Placement) Placement) Placement) erted from Type-B preferred stock are Y YYYY Y ANNUAL REPORT 2006 75 (Pri(Pri erted to one share of common stock. Y ert their shares to commonstock must do so by Y erted Type-B preferred stock must be con Oct. 3, 2005 Y erted. Y Preferred Share (Pri B Preferred Share (Pri Type-B Preferred Share (Pri rst year till the end of the third year since issuance, shareholders of ¿ ersionof preferred stock to commonthe degree of equity dilutionwill Y ide otherwise, the rights and obligations concerned will be the same as tho ersionfrom Type-B preferred stock to commonstock, unlesslaws, regulati Y Y entofcon Y erting all of their shares at once. Y ersion terms and conditions: Y Type-B preferred stock who wish to con con prohibited from being transferred in the first 3 years since the deli preferred stock. commonstock. for commonstock. or charters pro Con 1. From the end of the depend on the number of share con 2. Type-B preferred stock and common stock con 3. At 3 years after issuance, all uncon Inthe e 5. Following con 4. One share of Type-B preferred stock is con idend Y ided inthe Y erted into common Y 7 0 idend rate according to 55 87 50 .55 .87 .50 Y isions. Interest shall also 4.50 Y uence uence 39.55 42.87 À À NT$ 45.80 NT$ 50.00 NT$ 44.50 No In No In Sep. 8, 2000 isions shall remain and continue until Y Type-A Preferred Share the Bank is able to fully redeem the shares. Di Preferred stock cannotbestock. con Onproceeds due from date, issuancepreferred the of stock Bank new based shalldue shares onthe date, use actual to for itsinwhole issuingprice. redeem any earnings reason, or the or the If inpart,rights Bank on the of is Type-A the unablesubscriptionpro preferred to preferred shares, redeem, shares the according to the original the original subscription pro shall be calculated at thebe di calculated usingactual compound period interest ofholders method delay of for inpayment. Type-A the preferred The stock rights as of pro the Bank's Articles of Incorporation shall not be impaired. g. NT$ 42.87 g. g.g. NT$ 45.07 NT$ 46.49 Y Y Y Y The The The The A A A A highest highest highest highest The lowest The lowestThe lowestThe lowest NT$ 39.55 NT$ 41.70 NT$ 41.30 ersionor Y 5 4 6 Date of Issuance ersionor Y 2005 2004 2006 As of Issuance and con subscriptionas of the publicationdate of this annual report The amount of stock con subscriptionmethods annexed Per Share Other rights Market Price Item The influencepreferred of stocks redemptionBank's exerting of core on capital andassets The the ratio of risk The influence ofconditions exerting issuance on terms the owners' and interest ofthe possibility preferred of stocks, stock rights αăঔγхጴᙋ൴Җଐԛ D. The Issuance of Global Depositary Receipt. .൴ҖGDRĄ The Bank has not yet issued any GDRإώҖ ăࣶ̍ᄮ۵ᝋጴᙋᏱநଐԛ E. The Progress of Employees' Stock Warranṭ 1. The status of utilization of outstanding employee stock ഇ̝ࣶ̍ᄮ۵ᝋጴᙋᑕ೬ᜨၟҌѐಡΏОͤ͟بϏإᅙҖ .1 options and its effect on shareholders' equity up to ᝋৈ̝ᇆᜩĄڌᏱநଐԛ̈́၆۵ the printing date of the annual financial report shall be .Ą disclosedڱώҖϫ݈֭ѣᙯࣶ̍ᄮ۵ᝋᏱ The Bank has not yet promulgated the act of issuingפࣶ̍ᄮ۵ᝋጴᙋ̝གྷநˠ̈́פ᎕ҌѐಡΏОͤ͟.2 .ᗝ྿າᄂ။ˬ˼༱̮ͽ˯ employees' stock warrantܛጴᙋΞᄮ۵ᇴ݈˩̂ͷᄮᔉ ̈́ᄮᔉଐԛĄ 2.Names, options size and subscription status of bankפࣶ̝̍ؖЩă Ą executiYes who haYe receiYed stock options prior to the printing date of the annual ¿nancial report and the total of whose accumulated option shares rank among the top 10 Ꮙ፟ၹܛឰצᔉٕ׀ă̱ with a subscription alue of o er NTD 30 million. Ꮙ፟ၹĄ Y Yܛឰצᔉٕ׀ѐ̣ܕώҖ ̚ None. ර ϔ ˛ăྤܛྻϡࢍ൪ેҖଐԛ ઼ F. Merging or Entrusted for Other Financial إדᏉๅܛ̈́דăࢍ൪̰टĈ݈ЧѨ൴Җٕռ๒ѣᆊᙋ˘ ˝ Institutions. ˩ .Ϗពன۰Ĉ Noneإѐ̰̏Ԇјͷࢍ൪ड़ৈˬܕϏԆјٕ ̣ ѐ Ą ą ѐ G.Plan for Capital Investment and Utilization ಡ ˟ăેҖଐԛĈ A. PlanProspectus: Pre Yiously planned priYate placement 94 ࠎԼචώҖੑચඕၹĂૻ̼ҋѣྤώĂώҖ ѐ઼̰ன of securities and ¿nancial debentures which haYe yet to ᆧྤռ๒൴Җ˙পҾ۵14ᆆ۵Ăགྷ̳ฟᚮᇾϤέາܛ 76 be issued or priYately offered, or which haYe beenissued 26.12 94 ѐ or priYately offered withinthe past 3 years, but ha Yeyet ٺᏉଠ۵۵Њѣࢨ̳ΦͽՏ۵ ̮ᇾĂ֭ܛ 10 3 365.68 .ќ֖۵ഠ ᆆ̮ĄώҖགྷϤੑચඕၹ̝Լ to generate the desired bene¿ts: None͟ ͟ 3.87ƦࢫҌ94̝ޘഠͧதϤ93ѐٸච̈́ᖼዚӑĂ࿈ഇ 1.67 95 1.63 93 B. Status of Execution: To improYe our financial structure ̝ޘƦĂྤώዋ֖தϤ ѐ ۞ޘƦă ѐ ޘѐ 10.18 94 11.03 95 11.17 ƦĂྤ an enhance our capital base, we inMected capital in ۞ޘƦă ѐ ޘƦ೩Ҍ ѐ 94 -2.74 95 0.84 யಡ࿌தϤ ѐޘ̝ Ʀ೩Ҍ ѐޘ Ʀăஐࣃ Taiwan Yia priYate placement 1.4 billion Type-B preferred ಡ࿌தϤ94ѐޘ̝-48.29Ʀ೩Ҍ95ѐޘ14.35ƦĂӀ shares pursuantto a resolutionof the Board onJune ,िஐќৈ95ѐᄃ94ѐ࠹ྵᆧΐ1,154,010Ζ̮ĂՏ۵࠳ 24, 2005. Through anopentenderonJuly 22, 2005 1.79̮Ą Taishin Financial Holding Co., Ltd. won the tender at۞ޘҌ95ѐچ7.67̮೩-ޘዶϤ94ѐ NT$26.12 per share and paid up the share money of NT$36.568 billiononOctober 3, 2005. As a result of ¿nancial structure improYement and actiYe writing off of bad debts, the Bank's NPL ratio was lowered from 3.87% in2004 to 1.67% in2005 and1.63% in2006; our capital adequacy was increased from 10.18% in 2004 to 11.03% in2005 and11.17% in2006; ROA impro Yed from -2.74% in2005 to 0.84% in2006; returnonnetassets grew from -48.29% in 2005 to 14.35% in 2006; net interest income increased NT$ 1,154,010 in 2006 as compared with 2005; and EPS rose from NT$ -7.67 in 2005 to 1.79 in 2006. ANNUAL REPORT 2006 77 ices.ices.ices. ed by the ed by the ed by the YYY Y Y Y ices related Y ices.ices.ices. YYY ities.ities.ities. ererer bullion, bullion, bullion, gold gold gold YYY YYY e. Y ed by the central competent ices related to business cited icesices related related to to business business cited cited Y Y YY es business appro es business appro es business appro Y Y Y ernment bonds, treasury bills, ati ati ati ernment bonds, short-term bills, Y Y Y Y Y ernmenternmenternment bonds bonds bonds as as as a a a principal. principal. principal. YYY er coin and handling agency ser nancial debentures. Y ¿ ing checking account deposits. ing demand deposits. ing time deposits. Y Y Y iding margin financing or securities lending for iding margin financing or securities lending for iding margin financing or securities lending for esting in go Y Y Y Y EngagingEngaging in in safe safe deposit deposit box box rental rental ser ser EngagingEngaging in in trust trust business business regulated regulatedBusiness Law. by by the the Trust Trust corporate bonds, financial debentures andstocks. company IssuingIssuing domestic domestic and and international international letters letters of of credit. credit. GuaranteeingGuaranteeing issuance issuance of of corporate corporate bonds. bonds. business. ActingActing as as a a collecting collecting and and paying paying agent. agent. corporate bonds and company stocks. EngagingEngaging in in credit credit cards cards business business acti acti EngagingEngaging in in warehousing warehousing and and custodian custodian ser ser Engaging in deri Engaging in deri securities margintrading. BuyingBuying and and selling selling gold gold bullion, bullion,coin, sil sil sil Pro inthe Licenseor appro authority. HandlingHandling export export remittances, remittances, import import remittances, remittances, regular inward and outward remittances,foreign deposits currency, loan in in foreign currency andguaranty payment in foreign currency. central competent authority. UndertakingUndertaking underwriting, underwriting, certifying certifying and and trading tradingshort-term bills, of of acting as short-term bills broker. UndertakingUndertaking the the underwriting underwriting and and trading tradingfor of of own securities securities accounts or for the accountsTradingTrading of go go customers. Pro to any business described abo EngagingEngaging in in agency agency ser ser 1. Recei 2. Recei 3. Recei 4. Issuing 5. Extending short-term, mid-term and long-term loans. 6. Discounting negotiable instruments. 7. In 8. Engaging in domestic and international remittances. 9. Engaging in acceptance of commercial drafts. 16. Engaging in trust business regulated by the Trust 17. Engaging in warehousing and custodian18. ser Engaging in safe deposit box19. rental Engaging ser in deri 10. Issuing domestic and international letters11. of credit. Guaranteeing issuance of corporate bonds. 12. Engaging in domestic and international guaranty 13. Acting as a collecting and14. paying Underwriting agent. go 15. Engaging in credit cards business acti 24. Buying and selling gold bullion, sil 26. Handling export remittances, import remittances, 20. Undertaking underwriting, certifying and trading of 21. Undertaking the underwriting and trading of securities 22. Trading go 23. Pro 25. Engaging in agency ser A. Business Categories a. Business Scope ைĄ Φ۵̳̈́דᏉๅܛ Φ۵̳̈́דᏉๅܛ ăדă̳ΦๅדăԸྤ̳ๅăൺഇைדă̳ΦๅדԸྤ̳ๅăൺഇை хഠăγ။ഠ̈́γ။ፉܲ;ഠ̝ܲᙋຽચĄ ચຽચĄڇந̝ Ꮙથݡຽ ચĄܛᏉથݡຽ Ᏹநགྷ̚δგ፟ᙯ८ࣞᏱந̝ࢉϠّܛᏱநགྷ̚δგ፟ᙯ८ࣞᏱந̝ࢉϠّ Ᏹந઼̰γ๗ҸĄᏱந઼̰γ๗ҸĄ Ᏹநથຽ๗ை̝ٚҸĄᏱநથຽ๗ை̝ٚҸĄ ഠĄ Ᏹநைፂ෭னĄᏱநைፂ෭னĄٸഇܜഠĄ Ᏹநൺഇă̚ഇ̈́ٸഇܜĄ Ᏹநൺഇă̚ഇ̈́דᏉๅܛĄ൴ҖדᏉๅܛؠഇхഠĄ ൴ҖצؠഇхഠĄќצ߿ഇхഠĄ ќצ߿ഇхഠĄќצ͚ைхഠĄ ќצ͚ைхഠĄќצќ Ᏹந˾γ๗ăซ˾γ๗ă˘ਠ๗̈́๗ˢ๗ഠăγ๗Ᏹந˾γ๗ăซ˾γ๗ă˘ਠ๗̈́๗ˢ๗ഠăγ๗ Ᏹநᄃᒉຽે˯Чഠຽચѣᙯٕགྷ̚δგ፟ᙯ८ࣞᏱநᄃᒉຽે˯Чഠຽચѣᙯٕགྷ̚δგ፟ᙯ८ࣞ நຽચĄ གྷ̚δგ፟ᙯ८ࣞᏱந̝ѣᙯຽચĄགྷ̚δგ፟ᙯ८ࣞᏱந̝ѣᙯຽચĄדநຽચĄᏱநགྷ̚δგ፟ᙯ८ࣞᏱந̝̳ৈ૾דᅃӄຽચĄ Ᏹநགྷ̚δგ፟ᙯ८ࣞᏱந̝̳ৈ૾ٽ࠹ᙯഇఱϹדᅃӄຽચĄགྷᒉᙋٽ࠹ᙯഇఱϹדᏱந˾ᘪᙋຽચĄᏱந˾ᘪᙋຽચĄ Ᏹநซ˾ᘪᙋຽચĄᏱநซ˾ᘪᙋຽચĄ གྷᒉᙋ ။ăᅙ။Ąܛăᅙăܛ။ăᅙ။Ą෴ٕܛăᅙăܛຽચĄ ෴ٕד෴ᏉྤᏉדຽચĄᏱநѣᆊᙋד෴ᏉྤᏉדҋҖ෴ຽચĄ ᏱநѣᆊᙋדๅعҋҖ෴ຽચĄᏱந߆דๅعĄ Ᏹந߆ד෴ѣᆊᙋމĄٚዚ̈́ҋᒉ෴ٕד෴ѣᆊᙋމགྷࡔăҋᒉăᘪᙋ̈́ٚዚຽચĄ ٚዚ̈́ҋᒉ෴ٕדགྷࡔăҋᒉăᘪᙋ̈́ٚዚຽચĄ Ᏹநൺഇைד८ؠᏱந̝ຽચĄ Ᏹநܲგ̈́ࣗऱຽચĄᏱநܲგ̈́ࣗऱຽચĄ Ᏹந১ܲგቐຽચĄᏱந১ܲგቐຽચĄ Ᏹநൺഇைڱຽܫ८ؠᏱந̝ຽચĄ ᏱநֶڱຽܫϡΙຽચĄ ᏱநֶܫϡΙຽચĄᏱநܫΦ۵ைĄ Ᏹந̳̈́דă̳ΦๅדΦ۵ைĄ ዚ̳ๅă઼ऱ̳̈́דă̳ΦๅדᏱந઼̰γܲᙋຽચĄᏱந઼̰γܲᙋຽચĄ நќ;ഠีĄநќ;ഠีĄ ዚ̳ๅă઼ऱ ĄېϡܫĄᘪ൴઼̰γېϡܫᘪ൴઼̰γ ĄדĄܲᙋ൴Җ̳Φๅדᙋ൴Җ̳Φๅܲ Operations Overview ڶᒉྻໄ 8. 9. 1. 2. 3. 4. 5. 6. 7. ᒉຽቑಛ ) 27. 28. 29. 30. 31. 26. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 10. 11. ˘ ( ˘ăຽચ̰ट .ЧຽચҾགྷᒉ̝ࢋຽચּ̈́ͧ 27.Engaging in issuance of export permits(˟) 1.хഠຽચ 28.Engaging in issuance of import permits. јώĂ᎕ໂ٤ण߿ 29.Pro Yiding the intermediary brokerage serYices forܛࠎࣘᜪхഠᒉྻኳᄃณĂѣड़ࢫҲྤ .ഇّхഠćૻ఼̼̄ྮ(тშྮᅙҖăྖᅙҖăҖજ futures trading ᅙҖඈ)ЧีΑਕĂ೩̿ώҖe̼ԛ෪ĂࢫҲүຽјώćᖎ 30. ProYiding goYernment-approYed lottery agent serYices. ϦᏱ࠹ᙯຽચćᖣϤາથݡฟ 31.Engaging in other banking serYices approYed by the͗މٺܮх๗ࡗؠܑಏĂ̼ .central competent authority غચቑಛĄၟҌ95ѐ12͡ڇĂᕖ̂͗މТཏ̙פۋ൴Ă ͤغĂБҖхഠዶᗝࠎາέ။11,840ᆆ̮Ăᄃ94ѐ12ͤ͡ b. Main Business Category with Its Percentage ̝11,828ᆆ̮࠹ྵĂᆧΐ0.10%Ą 1. Deposits 2. ЋຽܛᏉຽચ The business of demand deposits is actiYely promoted ഠዶᗝࠎາέ။ٸܛЋ઼̰غഠĈ94ѐٸᏉܛЋຽ(1) inorder to achie Ye anoptimal balancebetweenquality ഠዶᗝࠎາέ။5,966ٸܛЋ઼̰غ5,838ᆆ̮Ă95ѐ and quantity of deposits and effectiYely lower the cost ഠͧࢦࠎ69.25ƫĄٸ2.19ƦĂҫາέ။ܜᆆ̮Ăј of funds. Various E-banking serYices (such as Internet ߆عͷξಞӀ۞ᒖဩ˭ĂώҖੵ੨Ъ߆ۋдᅙҖᚮ(2) ̚ banking, telephone banking and mobile banking) ඉĂᜈଯજ߆ඉّഠγĂϫ݈˵᎕ໂдξಞડă ර are further improYed so that the bank's'ss image as an ચᐹ๕Ăซ˘Վᕖ̂ξҫڇ͗މפϔ кᇹ̼யݡ˯Ă ઼ e-serYices proYider is enhanced and operations cost is ˝ தĄ reduced. Deposit and remittance forms are simplified to ચ͞ࢬࢍѣĈ˘ਠൺ̚ഇᒉڇ੫၆̈̚Ћຽથݡ ˩ ̣ proYide customers with easier access to related serYices. гᇄٗ፟ጡ Newew products are deYeloped to attract different customer˿ޙăγዚഠăᔉܛăᔉफ़ฉᖼܛѐ ྻฉᖼ ચĈֻᑕڇഇഠć೩ֻ̄შྮրЧีᏉྤܜą ඈ̚ ѐ groups and expand the scope of bank serYices.As of the ಡ થቢ˯ֻᑕᙥᏉྤ̝Ķέშķ̈́Ķࡗ๗ഠᏉྤķă end of 2006,6,, the outstanding deposit totaled NT$1,1844 ચć੨ЪЋຽ؞ billion,0.10% .10%10%%up from theNT$1,182.8 2.8.88 billionatbillion at the the endof end ofڇ๗٪̈́ېϡܫ೩ֻЋຽቢ˯ฟ൴઼̰ ༼ྤܛአޘ̝ĶЋຽѐᙯྤܛᏉྤķĄѩγώҖᄃགྷᑻ 2005.5.. 78 ९ᅃጱ 2. Corporate banking˧ۋЋຽᘪࢎĶ೩̿̈̚Ћຽੑચᚮ̈̚ొ ચ (1) Corporate financingĈThe 2005 year-end balance ofڇચ̈́ĶᏉྤڇഇ෧ᕝܜࢍ൪ķĂ೩ֻ̈̚Ћຽൺă ,ચଯજࢍ൪ķĄ domestic corporate loans stood at NT$ 583.8 billionڇ˾ůछᏙྙ ,ચ͞ࢬࢍѣĈฉᖼᏉྤăྤ while the 2006 ¿gure increased to NT$ 596.6 billionڇ੫၆̂ݭЋຽથ ݡ ᏉྤăܲᙋຽચăᓑຽચඈĂͽЯᑕ̙ representing a growth of 2.19% and accounting forٽώᏉྤă .ഇᚯ 69.25% of total NT-denominated loansܜТЋຽ̝ੑચᅮՐ̈́ٙᛳயຽĂ೩ֻዋ̝ൺ̚ (2) Against the backdrop of intensifying competition and ྤ͞९ĂഇЪމ͗ᅮՐĄ slimming margins, in addition to underwriting loans insupport of go Yernment policies, our bank has also been Yigorously establishing our competitiYe adYantages in customer serYice and increasing our market share through market segmentation and product diYersi¿cation. Our SME products and serYices include: short- and mid-term operating capital financing; working capital for purchasing raw materials; export loans; mid- and long-term loans for purchasing land, factories and equipment; on-line supply-chain loan programs (ņFormosa NetworkŇ and ņPre-ordered Remittance FinancingŇ) proYiding on-line domestic L/C issuance and negotiation serYices; ņYear- end Corporate Financing ProgramŇ satisfying seasonal capital demand. In addition, our bank has signed the Assistance Program for Upgrading SME's Financial CompetitiYeness with MOEA's SMEA and ANNUAL REPORT 2006 79 el Y ices Y ance, Y ided consumers Y er the 2005 le eloped based on Y Y ance payment for Y olume was NT$ 6.8 Y alue for the whole year. nancial demands. Y ¿ ices and expert consultation Y ide SME clients with short- and Y ement Loans for Laborers, Low- ernment policy in offering affordable Y Y erse choices such as Home Acquisition Y ide the following products and ser Y el of NT$ 7 billion. As of the end of December Y ices and syndicated loans. The aim is to meet ices. We pro Y Y 2006, there were a totalcredit cards of incirculation. 184,000 international Co., Ltd. to handleinternational cash credit ad card holderstotal, using 181,745 ATM. transactions In were processedyear, on generating the a total feemillion. income of NT$ 10.2 billion, marking a decline ofle 2.86% from the 2005 international bank card withdrawal) registered1.03 NT$ billionintransaction B. The acquiring business (cash ad Interest Mortgage Loans for theBank Sponsored Youth, Preferential and Mortgage Central Loans. The accumulated number of chip-based cards1,780,206 issued: A. The 2006 card transaction C. Our Bank was contracted by Chung Hwa Post with many di and Home Impro the principles of market segmentation,of re-packaging existing products andcompetition. adaptation to Products market launchedPreferential in Labor 2006 Loans, include Small Loansand for Preferential Farmers Mortgage Loans.support of In the addition, go in mortgage loans, our bank also pro NT$ 264.8 billion, which marked14.6 an billion, increase or of a NT$ 5.84%of growth, NT$ 250.2 o billion andtotal accounted NT-denominated loans. for 30.75% of the the client's needs by offeringlong-term optimal financing short-, solutions mid- in and accordanceclient's with business nature the and designed for large corporations: working capitalcapital loans, expenditure loans, trade finance,ser guarantee is positioned to pro long-term diagnosis ser ser (1) Bank Card Business (2) Credit Card Business (1) The 2006 year-end balance of personal loans reached (2) Personal credit products are de 4. Credit card business 3. Consumer banking ༱ 68 (ATM) 1,020 ࠎາغѐ ƦĂҫາέ 94 5.84 ᆆ̮Ă ϡΙܫĂ઼ᅫͤغ͡ Ιณࠎາέ။הѐ 12 95 ΙĄ 2,648 ѐ ᆆ̮Ą ѐଯથݡт౻ᔲӀă ᆆ̮Ăјܜ 95 ᆆĂ 95 10.3 70 146 Ą ඊĂ͘ᜈќˢࠎາέ။ 1,780,206 ƦĄၟҌ ༱ΙĄ 30.75% 181,745 2.86 18.4 ᆆ̮Ăᆧΐ Ιณࠎາέ။הѐ 2,502 ඊᇴВࢍ ٽ೩ഠ;ຽચĂБѐϹܛϡΙࣄனܫந઼ᅫצ ᆆĂੜ ᗝВࢍາέ။ܛٽϹ ̮Ą ߹఼Ιᇴ ચ፟ጡڇந̚රฎ߆۵Њѣࢨ̳Φҋજ̼ ᏱநќಏຽચĞࣄனܛă઼ᅫܛᏉΙ೩னğĂБѐ ࣎ˠഠዶᗝࠎາέ။غѐ έ။ C. ࣧĂّ̝ۋഠͧࢦࠎ ᑕξಞᚮٸ။ ഠඈĂ೩ֻкᇹٗથݡ̟ϔ ிϦĄޏҲ Ӏഠ̈́δҖᐹᔉޏѐᔉܦᔉ࣒ᖑҝшഠăޙᐹٗ ߆ඉĂᏱநᅃӄ౻̍عഠ९ඈĄ੨Ъ߆ޏछ̈ᗝഠ̈́ᐹٗྺ A.94 B. ࢍ൴ҖͯܛᏉΙ થݡࡁ൴ܼଳડξಞăࢦາΒ྅ࣧથݡ̈́Яܫ࣎ˠ ܛᏉΙຽચ ܫϡΙຽચĈ (1)95 (2) (1) (2) ࣎ˠܛᏉຽચ Ιͯຽચ 3. 4. 5. γ๗ຽચ 5. Foreign exchange business ಏҜĈ˼࡚̮ UnitĈUS$1,000 ีϫ 95ѐޘܛᗝ 94ѐޘܛᗝ Item FY 20066 Amount FY 2005 Amount ˾ 4,961,429 6,646,010 Export ซ˾ 5,264,879 5,915,982 Import ઼γ๗Ҹ 119,440,330 104,897,211 Remittances Ъࢍ 129,666,638 117,459,203 Total БҖγ๗ຽચᓁٚᏱᗝࠎ129,667Ѻ༱࡚̮Ăͧ (1) The total foreign exchange business underwritten inغ95ѐ(1) ࡗ10.39%Ą 2006 was worth USD 129.667 billion, representing anܜᆧΐ12,207Ѻ༱࡚̮Ăຽચјغ94ѐ (2)ࠎЯᑕމ͗ᅮՐĂฟᏱҘᓑ๗ഠăOBUშྮᅙҖຽચĂ increase of USD 12.207 billion, or a 10.39% growth, ̚ oYer the 2005 leYel. ර ͽഇ٤णγ๗ຽચĂᆧྈᒉќĄ (2) In response to customer needs, our bank undertook ̝͗މזϔ (3)ଯणώҖშྮᅙҖЧีຽચĂᕢέຽચؼҩ ઼ to proYide Western Union and OBU internet banking ˝ छ̚Ă̙ܝӈΞԆјүຽĂࠎૻ̼შྮΑਕĂΩ൴ण serYices with a Yiew to expanding foreign exchange ϤOBUშᅙ๗ഠҌDBU͗Ăۡତˢ͗үຽĄ ˩ ̣ business and enhancing business reYenues. ѐ ą (3) Internet banking serYices were actiYely promoted to ѐ allow our customers to do their transactions at home ಡ without haYing to come to the bank. In order to further strengthen e-banking serYices, on-line remittance 80 from OBU was enabled and such remittance can now be directly entered into an DBU account. 6. ̄ܛᏉຽચ 6. E-Banking 95.12.315.12.31.12.31 94.12.314.12.31.12.31 2006.12.316.12.31.12.31 2005.12.315.12.31.12.31 Ѩᇴٽᇴ Ϲ͗މ Ѩᇴٽᇴ Ϲ͗މ Number of Number of Number of Number of Customerss Transactionss Customerss Transactionss შྮᅙҖ 177,045 1,306,166 95,087 472,868 Internet banking ྖᅙҖ 877,578 3,816,348 750,605 3,577,777 Telephone banking ҖજᅙҖ 17,952 61,673 9,361135,36161 Mobile banking ቢ˯ᏉྤπӮዶᗝ(˼̮) 661,899 219,130 AYerage balance of online ¿nancing(NT$1,000)(NT$1,000) ANNUAL REPORT 2006 81 s e e e n In Y Y Y As ely the Y nancial e). banking ¿ Y ices;ices; the the t the end e YY At the end Y ices though ementofthe eloping and Y Y and effecti ser Y ide corporate Y mobile banking icesices and and satisfy satisfy esting in Foreign ices. At the end erall performance erallerall performance performance ebyeffecti YY ice channels. In Y esting in Domestic Y arietyariety of of financial financial ariety of financial Y YY Y Y Y YY Y idingiding best best customer customer cant growth has been YY ¿ erage balance of online Y professional and effecti irtual ser competitioninthe financial Y iceice channels channels with with greater greater ease ease ice channels with greater ease urthermore, the logistical support YY Y cate Business. Furthermore, the logistical support s a result, the o ¿ As a result, the o ser ed our 24/7 call center to the Hefeng s demands for a ices and businesses offered through 's demands for a Y ice offerings on the corporate banking ariousarious collectionser collectionser Y Y cutthroat competitioninthe financial ee succeeded succeeded in in transferring transferring traditional traditional e succeeded in transferring traditional YY YY Y ices. As a result, the o ide customers with comprehensi ciency. Furthermore, the logistical support ciency.ciency. Furthermore, Furthermore, the the logistical logistical support support Y c Purpose Trust Funds In c Purpose Trust Funds In Y ¿ ¿ ¿ ¿ ¿ eha financial ser ices into the E-banking through seamless We ha sef 's ef to offer Y Securities. Securities. (C) Securities inTrust. (D) Real Estate inTrust. (E)CustodianBusiness. (F)Securities Certi (B)Speci (A)Speci ur bank is committed to pro ices. We ha nthe face of cutthroat competitioninthe financial norder to meet the needof the corporate world to ices by continuously upgrading the performance of our e also deployed the personalized e-banking system Inorder to meet the needof the corporate world to Inthe face of cutthroat competitioninthe financial Ourbankiscommittedtopro Y Y Y (2) Main business operations and change of fee income (1) Mainbusiness. nancing as compared with 2005 (see the table abo system was also expanded, upgradedexpedited and incorporated e-ser with manage capital electronically, and to pro a unified hotline foranywhere. the entire nation: 412-2222 anytime, clients with financial ser the corporate client's demands for a Building on Bade Road where professional and effecti of the call center wasnow further enhanced. access our Our user-friendly customers and can speedy ser of use, our banke-Billing will System deploy in the 2007, ValueSystem comprised Added and of Corporate the the Account e-Collection designed Management to System, offer which are planning of the site has ledcall to center's substantial ef impro additionto newser of July 2006, we mo side (Formosa Network andha electronic L/C System), we designed to pro transaction and wealth management ser teller ser integration of physical and operations. 7. Trust business market, our bank has been relentlessly de Internet banking, telephone banking and mobile banking ser ser ¿ promoting new ser E-banking, so as toresponding to stay changes competiti inof the the customer end characteristics. ofrecorded December As inthe 2006, numberof signi clientsofnumber our of e-ser transactions and the a ԧזԱ Account 412-2222 ј۞ޘӔன಼̂ͤغ͡ 12 ѐ ѐޘޙཉĶЋຽഠგநπ 94 96 ̼̄ຽચĂ֭ېϡܫέშ઼̰̈́ - ķĂ̈́ĶЋຽੑົგநր ચĂЯڇЧќഠ͗މķĂΞ೩ֻЋຽ ٽᇴăϹ͗މᏉຽચ̝ܛĂ̄ͤغ͡ 12 ѐ ວዏҌˣᇇྮϰ͕̚ڇމĂБѐЃ۞غ͡ 7 95 ચķĂΒ߁ĶЋຽ̼̄ಏќഠրڇΐࣃ ѐ 95 ĄܫĄ ̙જய̝ܫ̝דѣᆊᙋ Ą ܲგᅙҖຽચĄדԸྤ઼̰ѣᆊᙋܫܛĄ পؠדԸྤ઼γѣᆊᙋܫܛপؠ ᘪᙋຽચĄדѣᆊᙋ A. B. C. D. E. F. Чࢋຽચᒉྻณ̈́͘ᜈќˢត̼ଐԛ ࢋຽચ ఼̼ྮĂјΑፋЪ၁វᄃᑢ఼ྮĂ่̙дЋܛშྮᅙ ચ۞ٚᏚĂᜈ೩̿შྮᅙڇָ͗މ੨ ώҖࠎۧ೩ֻ̈́˧ۋᏉξಞጼ઼ॡ۞ֽᓜĂࠎჯώҖᚮܛࢬ၆ Հ͗މგந̼̄ᅮՐĂ೩ֻЋຽܛࠎ੨ЪЋຽྤ e (2) (1) ܫຽચ e-Billing ચड़ਕĂึӀ็ᕢᕧຽચ ጱˢڇĞт˯ܑğĄ ҖăྖᅙҖ̈́ҖજᅙҖ۞ܜ ᛳّ۞ԼតĂᜈΐૻฟ൴ᄃଯण఼̄ྮЧีΑਕᄃ າຽચćၟҌ͗މЪ Ѩᇴ̈́ቢ˯ᏉྤπӮዶᗝ࠰ྵ 7. έ e-CollectionSystem ٺચგĂڇᏉܛଥ̝ܮ ચĄڇኢңॡңгĂӮΞӀϡБ࠷ಏ˘ܑཱི ࣇĂֳѣ෭͕ͷԣి۞͗ މፋវᒉྻड़ਕĂឰώҖ͕̚ڇމ˞๔ үຽ߹̼̄Ă೩̿ޢ๔͚೯ր۞ᕖ·̿৺ĂΐిޢᅮՐĂ಼̂೩̿ үຽड़தćѩγĂᖣϤ̝͕̚ڇމϡΑਕ˯ઇ˞ຽ̈́ѣड़த۞ఢထĂֹ ፋវྻү˯ՀΐЪ˘ਠຽֹٺᖳ̂ሁĂາಞг ٺચćڇ ᄃநੑٽᏉϹܛՀԆፋ۞͗މચΑਕ Ԇј࣎ˠ̼შᅙ̝˯ቢĂ೩ֻڇཉԆјາޙҖ Management System ᑕЋຽމ͗நЧีੑચүຽᅮՐĄ A. ᒉྻณ (A) Business Yolume ಏҜĈາέ။Ѻ༱̮ Unit: NT$ million ѐޘFY 95ѐޘ 94ѐޘ јܜத ีϫItem 2006 2005 Growth Rate דԸྤ઼γѣᆊᙋܫܛপؠ 19,699 13,159 49.70%% Speci¿c Purpose Trust Funds InYestinginForeignSecurities דԸྤ઼̰ѣᆊᙋܫܛপؠ 56,301 65,032 -13.43%% Speci¿c Purpose Trust Funds InYesting in Domestic Securities (ዶᗝغ͡)გຽચܲ 151,192 135,375 11.68%% Balance of Custodian Assets at Month-end ᗝܛᘪᙋຽચᘪᙋדѣᆊᙋ 24,074 37,775 -36.27%% Value of Securities Certi¿cate Business ܫדѣᆊᙋ 133 111 19.82% Securities inTrust ̙જயܫ 554 505 9.70% Real Estate inTrust ᗝĄܛৈጴᙋצᗝ̙Β߁ܛᘪᙋຽચ̝ᘪᙋדොĈ1. ᙋ ܲგഇఱགྷநְຽԸྤྤய̝ዶᗝĄצܲგБᝋ؎Ըྤྤய̈́צăܛૄܫܲგᙋԸצዶᗝΒ߁غგຽચܲ͡ .2 ྤயዶᗝಡĄܫܼͽܫ̙̈́જயܫדѣᆊᙋ .3 ̚ ර NoteĈ1. The amount of securities certi¿cation does not include those of bene¿ciary certi¿cates. ϔ 2. The ņBalance of Custodian Assets at Month-endŇ includes balances of securities inYestment trust funds held in trust, discretionary inYestment assets held ઼ intrust, andin Yestment assets of futures management enterprises held in trust. ˝ ˩ 3. ņSecurities inTrust Ň and ņReal Estate inTrust Ň based onthe balanceof trust assets. ̣ ѐ B. ͘ᜈќˢ ą ѐ (B) Fee income ಏҜĈາέ။Ѻ༱̮ Unit: NT$ million ಡ ѐޘFY 95ѐޘ 94ѐޘ јܜத ҫᓁќˢͧࢦ ีϫItem 2006 2005 Growth Rate % of total income דԸྤ઼γѣᆊᙋܫܛপؠ 313 217 44.24ƫ 42.53ƫ 82 Speci¿c Purpose Trust Funds InYestinginForeignSecurities דԸྤ઼̰ѣᆊᙋܫܛপؠ 174 136 27.94ƫ 23.64ƫ Speci¿c Purpose Trust Funds InYesting in Domestic Securities ܲგຽચ 243 156 55.77ƫ 33.02ƫ CustodianAssets ᘪᙋຽચדѣᆊᙋ 4 6 -33.33ƫ 0.54ƫ Value of Securities Certi¿cate Business 220ƫ 0.27ƫ Others Ъࢍ 736 517 42.36ƫ 100% Total ᗝĄܛৈጴᙋצᗝ̙Β߁ܛᘪᙋຽચ̝ᘪᙋדොĈ1. ᙋ ܲგഇఱགྷநְຽԸྤྤய̝ዶᗝĄצܲგБᝋ؎Ըྤྤய̈́צăܛૄܫܲგᙋԸצዶᗝΒ߁غგຽચܲ͡ .2 ྤயዶᗝಡĄܫܼͽܫ̙̈́જயܫדѣᆊᙋ .3 NoteĈ1. The amount of securities certi¿cation does not include those of bene¿ciary certi¿cates. 2. The ņBalance of Custodian Assets at Month-endŇ includes balances of securities inYestment trust funds held in trust, discretionary inYestment assets held intrust, andin Yestment assets of futures management enterprises held in trust. 3. ņSecurities inTrust Ň and ņReal Estate inTrust Ň based onthe balanceof trust assets. 8. Ըྤຽચ 8. InYestment (1) Ըྤ͞ࢬ (1) InYestment The Bank purchased and sold securities on the ώҖࠎܲዋ༊߹જ౯̈́ី߿ྤܛྻϡĂᐌॡણᄃܛ financial market to maintain an appropriate leYel of ዶᗝࠎĈ liquid reserYes and to enhance the ef¿ciency of fundsדĂώҖԸྤѣᆊᙋדᏉξಞ෴ѣᆊᙋ allocation. Securities owned by the Bank during the period are as described separately as follows: ANNUAL REPORT 2006 83 cation, ¿ % % % % % % % % 8% 2% % 4% 7% 4% 63% 08% 14% 55% 67% .42% 47% .63% .04% .08% .14% .55% .67% .47% 4.38% .04% 54.42% 00.00% јܜத јܜத јܜத 55.63% Unit: NT$ million Unit: NT$ million Unit: NT$ million Growth Rate Growth Rate Growth Rate er the past two years are Y າέ။Ѻ༱̮ : າέ။Ѻ༱̮ 5 5 : 00 -55.63% 749 32.14% 69 30.55% 557 14.08% 785 26.67% ,749 ѐޘѐޘ ѐޘѐޘ ,785 ,400 .12.31 4 2005 2005 2005 ಏҜ 4.12.31 94 94 ಏҜ 94.12.31 ಏҜĈາέ။Ѻ༱̮ e flexible utilizationof short-term capital, the Y 7 19,749 6 6 6 97 0 0 100.00% 121 113,640 154.42% 440548 431,166 447,332 65.47% -33.04% ,121 097 ,440 ,548 870 46,419 104.38% 00 000% ,097 328065917 5,785 2,400 2,557 072 4,875 4.04% ѐޘѐޘ ѐޘѐޘ results of the business ofunderwriting short-term and bills dealings certi o as follows: In assisting industrial and commercialachie enterprises to ,328 ,065 ,072 .12.31 500 4,870 5 5 2006 2006 2006 1,2657,328 1,065 969 2,917 5,072 9,314 0 100.00% 7,655 12,603 -39.26% 5.12.31 94,870 26,097 95 95 289,121 713,440 299,548 95.12.31 (2) Short-term bills underwriting and trading FYFY ѐޘ ernmenternment Bonds Bonds ernment Bonds (with ernment Bonds (Outright YY Y Y cationcation and and Underwriting Underwriting ¿¿ cation and Underwriting ¿ Sales cates erse Repurchase Agreements ¿ Y of Bills Certi of Proprietary Trading in Go cial Certi ¿ ItemItem ernment Bonds Y ෴ăᘪᙋăٚዚຽચĂᏱநଐԛĈדĂ Ᏹநൺഇைܛൺഇྤޘӄ̍થЋຽдఱ။ξಞ˯ី߿አםώҖࠎ ෴̈́ٚዚથຽώை͞ࢬדை ຽચדᙋ ᘪᙋăٚዚٚүᗝ Amount of Bills Certiדை ෴ᕝٚүᗝ Amount of Outright Purchase ෴аٚүᗝ Amount of Repurchase Agreementsܢ аٚүᗝ AmountofReܢ ᘪᙋăٚዚ͘ᜈќˢ Fee income of Bills Certiדை ᕝٚүᗝ Amount of Outright Sales ৈጴᙋ Beneצ Financial Bonds ̳Φๅ Corporate Bonds דᏉๅܛ ۵ை Stocks Go דๅع߆ ีϫ ୧Іٚүᗝ Volume of Proprietary Trading inRepo) GoܢדๅعҋҖ෴߆ ዶᗝ Balance of Proprietary Trading in Goדๅع෴ᕝٚүᗝ Volume of Proprietary Trading inTransactions) Go ҋҖ෴߆דๅعҋҖ෴߆ (3) (3) Securities operations (2) གྷࡔຽચ͞ࢬדᙋ.9 9. Security brokerage ಏҜ:າέ။Ѻ༱̮ Unit: NT$ million 955ѐޘ 94ѐޘ јܜத 20066 2005 Growth Rate ᗝܛٚዚຽચדᙋ 000% Volume of Security Underwriting གྷࡔຽચᒉຽᗝדѣᆊᙋ 89,8219,821,82121 85,865 4.61%.61%61%% Volume of Security Brokerage Operations ຽચπӮዶᗝד෴ᏉྤᏉדѣᆊᙋ 49191 402 22.14%2.14%.14%14%% Credit Outstanding in the Security Financing Business (ˬ) ώѐޘགྷᒉࢍ൪ c. Operation Plans for 2007 966ѐޘზࢋܛᏉຽચ̝ᒉྻณϫᇾĈ Operational Targets for 20077Ĉ 1.хഠᒉྻณĈາέ။1,053,104,0003,104,000,104,000˼̮Ą 1. SaYings: NT$1,053,104,000,0001,053,104,000,000,104,000,000104,000,000,000,000000,000,000 ഠᒉྻณĈາέ။892,484,00092,484,000,484,000˼̮Ą 2. Loans: NT$892,484,000,00092,484,000,000,484,000,000484,000,000,000,000000,000,000ٸ.2 ̚ 3.෴γ๗ຽચณĈ࡚ܛ141,434,000˼̮Ą 3. Foreignexchanges:US$141,434,000,00041,434,000,000,434,000,000434,000,000,000,000 ර 4.Securities brokerage: NT$96,724,000,00096,724,000,000,724,000,000724,000,000,000,000 གྷࡔຽચณĈາέ။96,724,000˼̮Ąדϔ 4.ᙋ 5. Trust business (mutual funds): NT$82,000,000,00082,000,000,000,000,000,000000,000,000,000,000 ઼ 5.ܫຽચ(ૄܛ)ຽચณĈາέ။82,000,000˼̮Ą ˝ 6. Credit cards (transaction Yolume):): NT$7,197,000,0007,197,000,000,197,000,000197,000,000,000,000 Ιณ)Ĉາέ။7,197,000˼̮Ąה)Ιͯຽચณ.6 ˩ ̣ ѐ ą Ĉ d. Market Analysisژѐ (α) ξಞ̶ ಡ Ĉ 1. Industry oYerYiewڶயຽໄ .1 :DeYelopment of ¿nancial industry (1) ڶᏉຽ̝ໄܛ (1) ,ព۞ӈߏ Inthe aftermath of the credit card/cash card crisisځᗕΙࢲᇷ۞ᇆᜩ˭Ăٺ2006ѐϤ 84 ൺഇม̰ banks haYe stopped doing those lines of businessٺᅙҖຽ۰৾৾ઃᏱྍᙷຽચĂഇຽ۰ and are unlikely to actiYely engage in unsecured ܛഠຽચĂ҃Ћຽٸܛ᎕ໂଯणፉܲঐޘ̙ົГ consumer banking business again anytime soon. Ꮙ̈́ੑಱგந̪ࠎຽ۰Ϗֽ۞ࢋଯणຽચีϫĄ Instead, corporate banking and wealth management ٸĂͷ᎕ໂଯજ̈̚Ћຽ̝ܛ҃âཻ۞ᖼШЋ will continue to be the focus of the banksŅ attention. ᅙҖຽ۰҃֏Ăߏӎ˫ГѨౄјᄃᗕΙࢲٺഠĂ၆ HoweYer, as all banks are simultaneously shifting to ຍ۞ĄѩγĂ઼̰ᅙڦᇷТ۞П፟Ăߏᅮࢋຕ֨ corporate banking and Yigorously underwriting loans ߆ඉ۞ღثٺ၆عĂͷϫ݈߆·ٺ࿅ܛҖຽ۰ྤ to small and medium sized enterprises, precaution ٽ፬ধ̙ۋĂͽ઼̰̈́ᅙҖТኳّ͉Ăᚮޘᒺၗ must be taken against creating a similar crisis as ăӀम̪̈۞ଐԛֶхдĂ߇ഇϏֽ˘ѐ઼ٸ experienced in the credit card/cash card field of late. MoreoYer, the banking industry is currently ͔פঔγοԊ̈́٤णγĂొ̶ଳٺᅙҖੵ˞Հ᎕ໂ̰ ซγྤͽӛќγྤགྷរᄃԫఙ۞ၗ๕ᑕົѣᆧк۞ன flush with capitals, and the goYernment is taking a ෪ĄͷϏֽдӑ೩Еഴ͌ĂᗕΙયᗟពனᔌቤၗ๕ restrictiYe approach towards cross-strait policies. In ̝˭ĂᅙҖຽᒔӀΞ୕ు႙ޭೇͪĄ the meantime, the leYel of similarity among domestic banks is high and this has giYenrise to fierce competition in the loans business characterized by a tight interest rate spread. Therefore, domestic banks are expected to expend more efforts in deYeloping oYerseas markets in the upcoming year and some of them will also try to recruit more foreignin Yestors in order to bene¿t from their experience and expertise. Looking into the future, as proYisions for bad debt decrease and the credit card/cash card crisis moderates, profitability of the banking industry will gradually returnto normal. ANNUAL REPORT 2006 85 e Y en Y ibrant Y ibrancy Y ices. Y enue, and to Y ely. As for the estment ha Y Y rst 3 quarters were ¿ ergence of physical Y ices, including wealth ate in Y e 4.02%, mainly dri Y e products. erseas branches. Y Y Y ationinorder to enhance Y ati Y erseas presence by promoting the ice the needs of Taiwanese companies Y Y nancial capital transactions, focusing on irtualizationanddigitizationhas resulted ¿ Y en by strong export performance in the iding personalized ser elop Y Y Y er the 2005 growth rate of 4.03%. Y Dri first 3 quarters ofthe 2006, manufacturing both sectors the did exportEconomic extremely and growth well. rates for the 4.92%, 4.57% and 5.02% respecti 4th quarter, although a higherresulted baseline ina in lower 2005 growth, therate recorded was growth still animpressi by the credit card/cash cardcontained debt problems as getting well as by the continued inthe housingmarket. For theeconomy grew whole 4.62%. year, the in the new trend ofbranches and the online con banks. pro by working with foreign companiesstrategic or alliances setting with up third-country partners,order to in ser operating on the Mainland. management and one-stop shopping ser the share of fee income in total re meet customer needs inplanning. hedging and financial the designof newderi businesses of OBU and o D. Product E. Cross selling is employed as a business tool for A. Increase o B. Accelerate business deployment in Mainland China C. De F. Engage in product inno (A) Economic growth nancial indicators for 2006: ¿ The world economy is still in good shape, and according The following is a brief look at some domestic economic (2) Future trends (1) Economic performance to the predictionmade by GIIglobal inFebruary economic 2007, growth the rate 2006 shouldthe be domestic around front, 3.9%. although creditpoor On card/cash car card sales debts, and declining pri 2. Market analysis dampened economic growth toexport some of degree, consumer electronics hasperformance of sustained the the manufacturing strong industry.national As economy a grew result, 4.62% the inincrease o 2006, marking a 0.59% and Ą 96 94 94 Ą ѐ۞ ٺ ࠎҲĄ 94 ͞ࢬĂ 3.9% 0.6% (GlI) ٺπ CPI M2 7.10% ̝Бѐ͟πӮ ̈́ M2 ć̙࿅ னĂྵܑ۞ Ăੵ˞ 7.65% ࠎܜƦ۞ܑனćБѐј 5.6% M1b 4.62% ă ćௐα؞˾ܑனᔵЯ 6.22% ѐ۞ 4.02 ѐБགྷᑻјܜதࠎ 94 M1a 95 ѐ 5.02% ̿˯ᆊᇴ่ۏѐঐ۰ Ӯྵ ̈́ 95 6.30% 95 ă M1b ࣎Ѻ̶ᕇĄ ̈́ ăঔγ̶Җ۞ຽચ٤णĂ᎕ໂҶԊঔγξ 4.57% 5.72% 0.59 M1a Ą ڇѐ͇࣏։рĂࢴݡᙷᆊॾҲᘦĂΐ˯થݡ̈́ OBU Ʀă ѐ઼̰ЧีགྷᑻܛᏉᇾតજரт˭Ĉ જ˭ĂᏮᄃ઼̰ݏѐ݈ˬ؞д઼ᅫ˾ૻ 95 ѐБѐགྷᑻјܜத̪ࡗѣ 95 ᔖᐍ̈́ੑચఢထᅮՐĄ͗މચĄ ᖣϤથݡనࢍ۞ଯౘາĂ೩̿͘ᜈҫᒉќּͧ ֭႕֖ڇચă̈́ੑ ಱგந˘Ѩᔉ֖۞ڇચăፋЪڇາࢉϠّથݡ۞నࢍĄ થݡᑢ̼ă̼̄൴णĂඕЪ၁វ̶Җᄃშྮᅙ Җјࠎາᔌ๕߹Ą ӀϡϹ˽ዚĂ೩ֻ࣎ˠ̼ٺĂࢦٽϹܛચĄ ൴णੑચྤ ڇಞĄ Яᑕέથд઼̂̚ౙᜈ൴णĂᄃγથЪүٕߏᄃ ௐˬгူҡඉரᓑ༖ΐి݈ซ̂ౙࠎέથ೩ֻ ΐૻ Ăјܜ ᏉથݡᆧΐĂ ̶Ҿࠎܛ ᔌቤĂͽ઼̈́ˠԸྤঔγܜഠᄃԸྤјٸᅙҖٺϤ ѐγĂ ચᙷႚ಼ѣࢨĂ Я ᆊ˯ႚۏᄃ̍ຽࣧफ़֕Ăଯ̿ซ˾̰̈́ዚய ݡᆊॾĂБѐᛑڵᅫ઼ࣧזצ 4.62% ѣ̪ܜĂ̙ ࿅઼̰ᅮՐЯΙๅࢬड़ᑕᔌቤ̈́ٗξᜈ߿ඛ۞ જ˭Ăགྷᑻјீܪࡶ݈ˬ؞̙ޘ಼ܜѐТഇૄഇྵĂј த̶Ҿࠎ 4.92ܜᚊĂ݈ˬ؞གྷᑻјܪᄦౄຽϠயܑன 95 ఱ။ֻගᗝ ᆊଐ๕ۏ གྷᑻјܜத 95 БགྷᑻܑனᘦઉĂॲፂᒖෛ፟ၹٺϤ A. B. A. ͡າീྤफ़ពϯĂ B. C. D. E. F. .ᏉຽϏֽ൴णᔌ๕ Aܛ ܛᏉଐ๕ གྷᑻଐ๕ 2 (2) ѐ 4.03% Ăீ ܪજ˭ĂᄦౄຽϠயܑனݏĂܑனྵࠎিऴĂ̙࿅γд઼ ᅫঐّ̄யݡ˾ૻ˭ܜᗕΙๅચ൴ᅔăՠ֘ዚָ̙Ăͽ ̈́ϔมԸྤӔјצᅮξಞĂᔵ઼̰̰ ͽ˭ಶ (2) (1) ژξಞ̶ 2. (B) Price index term financial stability, the Central Bank raised As oil and industrial materials became more interest rates in March, June, September and expensiYe, the prices of imports and other products December 2006, each time by half a tick for a total sold inthe domestic market were pushed higher, of 2 ticks. As a result, the rediscount rate, the leading to a 5.6% increase in the wholesale price rate for accommodations against secured loans index. HoweYer, the CPI was a different story. and the rate for temporary accommodations were Good weather in2006 contributedto stability in increased from the leYels of 2.25%, 2.625% and food prices, and price appreciation in goods and 4.5% in the beginning of 2006 to 2.75%, 3.125% serYices were also Yery limited. Consequently, the and 5.0% respectiYely at year end. CPI only rose by 0.6% in 2006. (E) Exchange rate (2) Financial situation With the appreciationof RMB andthe fa Yorable (A) Money supply outlook for economic growth in Asia, global Due to slowing growth in bank loans and demands for maMor Asiancurrencieswere on inYestment, couple with a rising trend of the increase. Consequently, the NT dollar also ̚ inYestment in oYerseas financial products by the appreciated moderately to 32.596 onDecember ර people of Taiwan, the whole-year daily aYerages 30, 2006, rising 0.77% from a year ago. ϔ ઼ of M1a, M1b and M2 in 2006 were 5.72%, 6.30% (3)PositiYe and negatiYe factors influencing the Bank's ˝ and 6.22% respectiYely. Amongst them, M2 was future operations ˩ ̣ more or less the same as in2005, while M1a and Despite the decelerationinglobal economic ѐ M1b were lower thanthe 2005 le Yels of 7.65% and growth predicted for 2007, we still expect Taiwan's ą ѐ 7.10%. international trade to remain healthy as our maMor ಡ (B) Bank deposits trade partners haYedeliYered strong economic As a result of a widening spread between performance. On the domestic front, as the ill effects oYerseas and domestic interest rates, more and of the credit card/cash card debt problem gradually 86 more Taiwanese began to inYest ino Yerseas dissipates and as labor conditions continue to financial products, leading to a declining oYerall improYe, priYate consumption will rebound strongly. deposits growth rate, which decreased from 6.25% Inaddition,the go Yernment has launched the Great in2005 to 5.00% in2006. Indi Yidually, demand InYestment InitiatiYe. Therefore, GDP growth in2007 deposits grew only 4.52%, as compared with is forecast at around 4.30%, only slightly lower than 6.61% in 2005, and growth in time deposits and that of 2006. On the other hand, fluctuations in oil time saYings deposits also slowed from 4.93% and commodity prices, the changing enYironment to 2.67%. By contrast, the annual growth rate of of external trade, as well as Yarious domestic non- foreign currency deposits increased from 13.99% economic factors will haYe to be closely monitored for of the year before to 18.59%. their potential impacts on our economy. PositiYeand (C)Bank loans NegatiYe factors affecting the Bank's future operations As a result of the impact of the credit card/cash are analyzed as follows: card crisis and the rising awareness of risks among (A) PositiYe factors banks, growth in bank loans dropped precipitously. a. Concrete improYement in asset quality: As our In2006, loanspro Yided by maMor financial bank continues to improYe asset quality and institutions grew only 2.44%, as compared with strengthen capital structure, our capacity for 8.13% in2005. Speci ¿cally, bank loans to priYate assuming risks has been further enhanced. This enterprises companies recorded only an annual will help eleYate our pro¿tability as the Basel II growth rate of 4.69% (as compared with 9.34% in will soonbe adopted. 2005). b. Healthy global economy: The world economy is (D)Interest rate trends expected to remainontrack for further moderate In Yiew of the moderate expansion of the economy, expansionin2007. This growth momentum the rising inÀation and the low real interest rates, will continue to driYeoYerseas inYestment and as an attempt to reduce inflationary risks by Taiwanese companies and help generate and promote rational capital allocation and long- operating reYenues. The rising demand for ANNUAL REPORT 2006 87 e e or Y Y M ide Y ices erce el of ati Y ¿ Y eand Y ed our Y Y er, work estment ernment ironment Y Y Y Y eser Y cantly greater ¿ ely low le ice Taiwanese Y Y e already entered Y e beenahead of Y erning cross-strait ironment for wealth Y Y ciency. Moreo ¿ eloped and impro Y elop the new Pre-ordered ices and will risk losing the Y Y ede iding comprehensi Y Y e utilization, and also because cially low for loans, it is expected that Y e capitals with a lack of opportunities ¿ Y nancial institutions ha ¿ orable market en efactors Y Y elop businesses and grow market shares in or elopment of wealth management businesses. culties and barriers to our bank as we try to iew to pro M ersity in financial products and in Y Y nancing system – the CHB e-Banking Portal, ¿ Y Y ¿ ices. We ha di channels, as well as the relati has yet to come up with more effecti relations. As trades acrossare the impeded Taiwan by Strait thisapproach, type domestic banks of are conser unable todirect pro capital ser business opportunities presented by Taiwanese companies operating in China. capitals inthe corporate world willthe banking also industry. benefit management: As a result of signi de this area. for domestic banks tocompanies ser on the Mainland: The go our bank in enteringquite this some market time, segment this by willdif probably pose great competition among banks hasrates kept arti interest interest rate spreads will remainCentral Bank tight stops once hiking the rates in 2007. liberalized policies go interest rates, the current market en for effecti financial institutions ha the financial market is currentlyexcessi inundated with the wealth management market: Since ma is beneficial to thede banking industry for the Y c. A fa c. Cross-strait policies are still too restricti b. Ma a. Fierce competition and narrowing spreads: As nancial products for corporate clients ¿ (B) Negati e-ser and increasing utilization ef hasbeendonetode Remittance subsystem as wellElectronic as L/C subsystem. upgrade the online with a (1) Our bank is making persistent efforts in promoting e. Current Status of R&D on1. New Financial product ͽ 12 Ʀă Ʀ˭ ğĄ ̈́͡ 9 2.75 6.61 ۞ܐѐѐ Ʀ˭ࢫҌ 95 95/12/30 9.34% ͡ă ѐ಼ᔌቤ྿ 6 ƦĄ 6.25 95 ѐࠎ ѐ઼ᅫགྷᑻഀঈ̪ 0.77 ͡ă 94 ۞غ 3 ٸᏉ፟ၹܛࢋغѐ ഴ͌Ă̚ᅙҖ၆ϔ ቅĂֹࢦ෭னதă Ğ 2 ѐ 94 95 2007 95 8.13% ۞غƦĂአፋҌѐ ƦĄ 4.69% ѐ ࣃ̿غѐѐ 4.5 ƦĂҭγ๗хഠѐᆧதϤ˯ѐ 94 94 ѐᔵ઼ᅫഀঈᕖૺՎአᔌቤĂ 18.59 ྵ Ʀ̈́ 96 2.67 ƦĄ ѐࠎ಼̂ഴ͌Ă 5.0 ѐ઼̰གྷᑻјܜ่ྵ 2.44% ƦĂؠഇ̈́ؠഇᐼᄊхഠѐᆧதϤ˯ѐ۞ 2.625 94 Ʀ೩̿Ҍ 96 ̮үќĂྵ Ʀ̈́ ƦĂ̚߿ഇّхഠѐᆧதϤ˯ѐ۞ Ʀ˭Ҍ Ʀă 4.52 ፋវхഠѐᆧதϤغѐ ᅙҖ࠹ᙯຽચ൴णĄٺᅮՐᆧкϺ ӀܛᘦؠᕖૺĂЯѩ։р઼ᅫഀঈ၆઼̰Ћຽঔγ ԸྤᒉྻᒔӀᆧજਕĂЋຽྤ ᅙҖќৈ೩̿Ąٺؠӈ၁߉˭Ăѣ ৈםĂ̏ซ˘Վ೩̿ώҖ۞ࢲᐍ ٚፉਕ˧Ăдາ͐Ⴌྤώޢኳ̈́ૻ̼ྤώඕၹ ण୕ϏֽĂ 13.99 જă၆γགྷᒖگफ़ᆊॾۏᄃࣧڵƦĄ઼҃ᅫࣧ யݡኳԼච̏јड़ĈдώҖᜈԼචྤயݡྤ ᅫགྷᑻഀঈָ̪Ĉഇ઼ b. a. 2.25 ྵܜഠј ٸᗕΙࢲᇷ۞ᇆᜩ̈́ᅙҖࢲᐍຍᙊ೩ĂᅙҖזצ ഠѐᆧத่ࠎٸᒉЋຽ 32.596 ٺᏉᘦؠĂܛഇܜЪந ੨ཉ̈́ܛҲĂδҖࠎࢫҲ఼ᎶࢲᐍĂܳซྤإᆊ˯ႚத೩Ăͷ၁ኳ ӀதۏགྷᑻᕖૺĂ઼̰ٺϤ Ăซ҃ᆧΐֲ߷ࢋ઼छఱ။ᅮՐ۞ᇆ ᜩ˭Ăາέ။˵Ӕ಼̿ࣃ۞֕๕Ăܜ࠹၆࠻рֲ߷ གྷᑻјܛҾአ̿ӀதΗቅĂВࢍ дˠϔ။ు႙̿ࣃĂͽ઼̈́ᅫྤ̶͡ ഠᏉ఼̈́ൺഇᏉ఼Ӏத̶Ҿଂٸፉܲ 3.125 5.00 ഠѐᆧத ۞ Ҍ 4.93 Ꮙ થݡᆧΐĂֹፋវхഠѐᆧதӔ˭ࢫᔌ๕Ą 95ܛγӀमྵ̂۞ᇆᜩĂ઼ˠԸྤঔγ઼̰זצ ഠٸᅙҖ Ӏதଐ๕ ѣӀЯ৵ າέ။๗த ᅙҖхഠ .གྷᑻඈ̙ቁؠЯ৵Ăऻົ၆ԧ઼གྷ ᑻଐ๕யϠྵ̝̂ᇆᜩĂυื̷ຍĄਬಶϏֽώ Җࢬᓜ̝ѣӀᄃ̙ӀЯ৵̶т˭Ĉ Aܧજ̂Ըྤ̝ࢍ ൪ĂҤ 4.30 ဩ۞ត઼̼̰̈́ୁعពа̿Ăΐͽ߆ځҡགྷᑻܑனָ̪Ăԧ઼γજਕΞ୕ჯ ᘭć̰ᅮ͞ࢬĂΙๅࢬड़ᑕᔌቤ̈́౻જଐ๕ԼචĂ ϔมঐΞူٽଘࢋ C. D. E. B. ൴णᅈഀ̝ѣӀᄃ̙ӀЯ৵ (3) Ꮙથݡ (2) Our bank continues to proYide loans and SMEܛc.ξಞᒖဩѣӀੑಱგநຽચ൴णĈд ᙷ಼̂ᆧΐăԸྤგிкͽ̈́Ӏத̪ჯ࠹၆ financing serYices designed to support goYernment .ᅙҖຽ۰٤णੑಱგநຽ policiesٺĂѣӄ˭ڶҲᑫ۞ଐ ચĄ 2. New ¿nancial products for consumers B.̙ӀЯ৵ GiYen the abundant money supply and potential Ꮙ inÀationary pressures in Taiwan, the oYerall housing marketܛϫ݈ٺ፬ধĂӀमᜈᒺ̈ĈϤۋa.ᅙҖຽᚮ ՟ѣ˘࣎ѣड़۞ྻϡ͞ШĂ should haYe a positiYe short-term outlook. Expansion ofܛξಞഫྤϙᑿĂྤ ഠӀத˘ۡᜈ the mortgage business still remains the focus of our futureٸ፬ধĂ߇ۋΐ˯ᅙҖТຽมᚮ ઐҲĂҤ96ѐдδҖ̿ि̏གྷӘ˘߱ར̝ޢĂ deYelopment plan, which aims to offer diYersi¿ed mortgage ҤӀमჯઐҲĄ products, improYe operations efficiency, lower operations cost and increase the olume of unsecured personal loans Ч YٺᏉ፟ၹ̏ຬАྭ֖ੑಱგநξಞĈϤܛb.Ч̂ .Ꮙ፟ၹ̏ᅳАώҖྭ֖ੑಱგநξಞ˘߱ॡ with a higher spread yieldܛ̂ 3. SaYings and remittances มĂऻ၆ώҖ൴णੑಱგநຽચͽ̈́ຬҫξಞ (1) Introduction of the new serYice of Water and Electricity Κѣதౄјӧᙱᄃଵᑟड़ᑕĄ ̚ Bills Automatic Payment through Mobile Banking, Ăᇆᜩ઼̰ᅙҖຽ۰೩ֻٸ߆ඉ̪Ϗѣड़ฟثc. ර offering customers more payment options. Ăдٸ߆ඉ̪Ϗѣड़ฟثع߆ٺચĈϤڇϔ έથ ઼ (2) Launch of the Nation-wide Bills (Taxes) Payment ซणĂ઼ֹ̰ᅙҖٽثᇆᜩ˭ޘᜈܲчၗ ˝ SerYice, increasing fee incomes by offering customers ચĂు႙εΝ̚ڇܛ೩ֻۡତ۞ྤڱຽ۰Я ˩ ̣ more payment options. ચА፟ĄڇᏉܛѐ ઼ξಞ၆έથ۞ (3) Adding the Labor Pension (the old regime) Auto Pay ą ѐ by Fund Transfer serYice, as a way of expanding our ಡ serYice reach. (4) Installing the CHB-Talking-ATM to enable the Yisually 88 impaired to use our ATM serYices without dif¿culty, as a way of strengthening our ¿nancial serYices. 4. Foreignexchangeproducts (1) Launch of the Western Union remittance serYices, where the payee is not required to produce a bank account number and the remittance is transmitted safely with the protection of a unique MTCN number. (2) Adding more serYices aYailable on OBU internet banking (remittance and L/C issuance). (3) Establishment of the Operation Rules for Setting the Lien on Foreign Currency Demand Deposits and Using such Deposits as Collaterals. (4) Establishment of the Guidelines on Penalty WaiYers for Premature TerminationofForeignCurrency Time Deposits, in order to entice such conserYatiYe depositors to purchase other wealth-generating products so as to increase reYenues for our bank. (5) Amendment of the Import Loans Business Guide. (6) Setting the schedule of acceptance fees for handling the importer's usance L/C. (7) Organizing the Training Program for Personnel Handling International Financial Businesses, in order to promote the OBU business and enhance serYice quality. (8) Organizing the 2006 Cross-Strait InYestment ANNUAL REPORT 2006 89 Ň elop Y ects in erseas M Y ior modeling Y eloping product, Y Ň erseas branches. etheircardswhen Y elopment pro Y elop new products to Y Y ernment e-Procurement ements Y Y olume and generate more elopment. elopment trends and new Y Y Y er the range of de Y on-line order business. futures transactionfacilitationbusiness. elopment achie ements Y Y ņ ņ ne target customer segments and de ects for the future ¿ M e promotionof the Go ices (such as paying telecommunications, nancial commodities to de elopment of pre-made ATM chip cards, allowing Y ¿ enhance business de on the analysis of consumer beha appropriate products. to de financial market de Y Y enues from the issuing business. Y (b)Application of information technology and tools (a)Research on domestic and foreign economic and Card business. ser the past two years: 2006 NT$12,577 thousand; 2005 NT$68,703 thousand. parking, water, electricity and gasto bills, generate more etc.) fee in incomes. order Outlook Seminar as acustomer way relationships of and maintaining creating close moreopportunities. business by the Headquarters for the ManagementBranches, of to O be implemented by o as to ensure transaction securitycard and holders. ease of use for Transactions using ATM Chip Cardssoon. to be launched customers to immediately recei opening a bank account. increase card issuance re R&D reports co Customer Relationship Management (CRM),Management, Risk Capital Management and etc.reports Total on2005 40 and2006. (6) Continuous addition of new credit card Auto Pay (2) R&D achie (2) Launch of (1) Launch of (9) Compilation of the Rules and Guidelines Established (1) Replacement of old cards with ATM chip cards, so (2) Issuing and acquiring businesses for Procurement (3) De (4) Launch of the Century Platinum Card in order to (5) Acti (1) Expenditures of Research & De (3) R&D pro 7. Research & De 6. Securities business 5. Card business Ă೩ֻෛᛇᅪᘣ۰ᅪᘣ ቁܲ๗ഠщБਖ਼྿Ą (MTCN) ϡड़ֹ͗މ఼πέĂഇਕԆචΑਕăᆧซ έથԸྤण୕ळኘົķĂՀღჯثѐ e ϡܫચĞ๗Ҹͽ̈́ฟ൴ڇშྮᅙҖຽચ (CHB-Talking-ATM) 2006 OBU ચݡኳĄڇچຽચĂ೩ ᆵᗫăሕд఼Ꮆᑅ˧ᒖဩ˭ĂϏֽέ៉ፋវܛྤ઼̰ ĄّܮщБֹ̈́ϡ͞ ٽᏉΙķೱ൴үຽĂͽჯ᜕ΙˠϹܛķĂࣕ Ӏ઼γ̶ҖᒉྻᏲೈĄ ᎕ໂଯҖĶͯב፟ົĄ ຉበĶᓁҖࢎ઼̝γ̶͚፟ၹგநౢၱ఼ֽـᙯܼ֭ᆧΐຽચ͗މચ፟ጡĄ ฟᏱĶҘᓑ๗ഠķຽચĂќഠˠ̙ᅮࢋѣᅙҖཱིĂ֭ ͷѣপ۞๗ഠཱིቅ ᓝᏱĶ ᜕ڇĂᆧనĶၓ̼થຽᅙҖᅪᘣᄬࢰ ೩ഠ፟ķ ֹϡ̝ҋજ̼هચநڇᏉܛચķĄ ࠎར၁ڇğ؎ᖼ ᘳטĞᖞܛચᆸࢬĂᆧᏱĶ౻̍ੜЃڇĂᆧΐ͘ᜈќˢĄ ࠎ೩̿טк̮̼ᘳ ፟͗މк̮̼ᘳ͞ёĄ ฟᏱĶБ઼ّᘳĞඁğຽચķĂ೩ֻ͗މચีϫĂ೩ֻڇາᆧĶҖજᅙҖᘳϹέ៉࠷ҋֽ̝ͪͪăέ៉˧̳ Φķ Ꮙຽચ̄͞९ቚķĂͽ᎕ໂ٤ण OBUܛĶٚҸķ̝ќᇾĄ ᏱநĶ઼ᅫېϡܫຽચķᆧࢎԆјĄ ࢎؠซ˾ᅈഇܫğĄ ࢎؠĶγ။߿ഇхഠనؠኳᝋ̈́೩ֻүࠎፉܲݡүຽఢ ؠķĄ ࠎ͔ጱܲчᘦઉݭγ။ؠഇхഠх͗ٚઇώҖԸྤநੑ થݡĂഇਕᆧྈώҖᒉќĂࢎؠĶγ။ؠഇّхഠ̚ ྋࡗ̙χԶᐹࢋᕇĄķ Ķซ˾ې ᆧΐ րůၓᅙ ચĄ ķրΑਕĄېϡ ܫதăฟ൴Ķࡗ๗ഠᏉྤķາրΑਕă೩̿Ķ̄ ચĂ᎕ໂฟ൴̈́Լซቢ˯ᏉྤڇώҖᜈଯજ̼̄ ڇ߆ඉĂᜈଯજ߆ඉّഠ̈́̈̚ЋຽᏉྤع੨Ъ߆ ڶᏉથݡࡁտᄃຽચ൴णໄܛ ) (ϡ ഠٚүณĄ (1) (2) (3) (4) (1) (8) (9) (1ܫгயξಞܑனൺഇ̰ᑕ̙࠻୶Ąᕖᆧٗຽચ̪ࠎϏֽ ຽચࢦ͕Ăͽ೩ֻк̮̼ٗથݡĂԼචүຽड़தĂࢫ ҲүຽјώࠎࢋඉரĂ֭ᜈ೩̿Ӏम̝࣎ˠٗ (3) (4) (5) (6) (7) (2) (1) (2) Ꮙથݡܛ࣎ˠ х๗થݡ γ๗થݡ Ιͯથݡ ᏉથݡܛЋຽ ̣ 3. 4. 5. 1. ( 2. ķ൴Ϊ́ќಏຽચĄ (c)Enhancing market segmentation, and promotingٽᏉΙᔉఱϹܛӈฟᏱĶͯ (2) Ιͯ customer relationship management for embracingפฟ͗ॡӈΞᅳ͗މܮᏉΙĂͽ͞ܛฟ൴ᄦͯ (3) .ϡĄ the competitiYe ¿nancial enYironmentֹ (4) ฟᏱĶ͵ࡔϨܛΙķͽᆧΐܫϡΙ൴Ιณ̈́ᆧΐ൴Ιຽ (d)Expanding financial serYice territory by using ચќˢĄ strategic alliance to cooperate with third party. შྮଳᔉΙķຽચĄ f. Long-Term and Short-Term Business Developmentع᎕ໂଯᇃᏱநВТֻᑕݵࡗĶ߆ (5) :ăઃ֘ăͪă PlansܫϡΙᘳຽચĞтܫᜈฟᏱЧี (6) 1. Short-term business deYelopment plans. ăϞඈğĂͽᆧΐ͘ᜈќˢĄ (1) To research ondomestic ando Yerseas financial ຽચדᙋ.6 situations, industrial trends and market intelligence, in ᅃӄຽચķĄٽฟᏱĶഇఱϹ (1) order to effectiYely respond to changes in the market (2) ฟᏱĶშྮ˭ಏຽચķĄ and to facilitate business deYelopment and marketing ڍࡁտ൴ण͚ᄃј.7 consultations. ڍࡁտ൴ण͚̈́јޘѐ˟ܕώҖ (1) (2) To deYelop new corporate banking products and 95ѐາέ။12,577Ζ̮ ̚ online ¿nancing platforms so as to enhance corporate ර 94ѐາέ။68,703Ζ̮ ϔ ¿nancing ef¿ciency. ڍѐࡁտ൴णјܕώҖ (2) ઼ (3) To promote such Yalue added serYices as the ACH ˝ ࢦࢋࡁտಡӘࢍѣ40ቔĂࡁտቑಛஉޘ94ă95ѐ ˩ and the Nation-wide Bills (Taxes) Payment serYices, .გநඈ as a way of attracting demand deposits businessܛᙯܼგநăࢲᐍგந̈́ྤ͗މᄏĈથݡࡁ൴ă ̣ ѐ ą ᛉᗟĄ (4) To launch marketing campaigns regularly by ѐ (3) ಡ Ϗֽࡁտ൴णࢍ൪ organizing eYents tailor made for Yarious customer Ꮙથݡ groups in order to strengthen the bank's professionalܛᏉξಞ൴णᔌ๕̈́າܛa) ซҖ઼̰γགྷᑻᄃ) ̝ࡁտĂͽᆧܜຽચ̝ฟ൴Ą image. 90 Ăࠧؠϫ (5) To boost interest incomes and increase businessژb) ᑕϡྤੈࡊԫ̍ซҖঐҖࠎሀё̶) .ཏĂฟ൴ዋ̷થݡĄ offerings that can generate fee incomes͗މᇾ (c) ΐૻξಞડĂૻ̼މ͗ᙯܼგநĂͽЯᑕ͟ৈᚮ (6) To strengthen niche marketing for credit cards based ᏉᒖဩĄ oneach customer group's consumptionpatternandܛ̝ۋ (d) ͽඉரᓑ༖ăޙϲௐˬ఼ྮူҡ̝ЪүࢍထĂᕖण habits. 'ဦĄ (7) DeYeloping new trust products to satisfy customersۍચڇᏉܛ diYergent product needs, e.g., different types of real estate trust, securities trust and money trust etc. (8) To implement liquidity risk control measures and engage in flexible capital management in order to make gains on interest rate spreads. (9) To engage in actiYe trading in pursuit of profit maximization. (10) To support the planning of the Seal Imaging System in order to achieYe synergy with the Checks Processing System. (11) To establish the Tiered Working Schedules for the credit card transaction department, in order to strengthen risk monitoring and improYe operation performance. (12) To consolidate oYerseas fund allocation platforms for bee¿ng up marketing actiYities inthe Greater China region. ANNUAL REPORT 2006 91 e e e, Y Y Y ide erall Y iding Y Y igorously iduals with Y Y e our product Y nancial needs of erseas branches ¿ Y erseas branches elopment plans are Y Y e Office into a Branch Y ices inasset allocationand Y ices through our nation-wide Y ant in the fiercely competiti arious customers by pro Y alue. Y eser elopment plans e. In addition, we need to ha Y Y Y Y ices to Taiwanese companies that iding high net worth indi Y ati erseas braches capable of generating Y Y Y erseas operations for the purpose of Y ely pursue the goal of upgrading the Y nancial policies and the ¿ e expanded into this region; to elop our wealth management operations that Y Y eandinno Office as a way ofin strengthening China's our financial presence market, instrait line with cross- Kunshan Representati Taiwanese companies. offices inSoutheast Asia inorder to pro financial ser ha complete the necessary work for our Hanoito Branch openfor businessas soonas possible. additional o a high business enue enhancement: Y erseas branches. Y Y nancial planning. and to link them upso with as the to Headquarter remainrele system, marketplace of internationalization and globalization. (b) To carefully assess the feasibility of setting up re (a) To acti (c) To consider suitable locations for setting up and adding new ones inof keeping financial with globalization the and trends higho profitability of deployment by meeting their needsfund in allocation. cross-border is aimed at pro excellent consultati ¿ ice points and e-banking so as to enhance our o elopment and marketing capabilities and seeks In the face of industrial consolidation and fierce Y ersified products and ser Y (1) To assist Taiwanese companies in their global (2) To de (3) To strengthen our current o Y (14) To expand o (13) To upgrade the IT systems at o 2. Long-term business de competition, our bank needs tode impro to strengthen our market positionaggressi by being proacti a firm grasp of theand newest satisfy trends the in needs the of financial market di ser business performance. Our future de presented as follows: ຽચඈ ) ඁ ( ăБ઼ّᘳ (ACH) ࢲᐍႾଠĂ೩̿үຽ̝ᒻड़Ą̝ٽΙϹהϡΙΙˠ ܫΙຽચĶमॡ˯үຽࢋᕇķĂͽΐૻהϡΙܫཉ̝ტड़Ą ࢎؠޙ ཉ̝ఢထĂ൴೭ைፂүຽրޙፆүĂՐӀማ̼̂ϫᇾĄ ੨ЪซҖОᝥᇆညրٽӀमĄ ΐૻЧีϹפፆүĂᔇܛඈĄ ར၁߹જّࢲᐍგநĂ֭ី߿ྤܫ ܛ̈́ܫדăѣᆊᙋܫк̮̼̝யݡᅮՐĄ тĈᏱந̙Тݭၗ̝̙જய͗މથݡĂͽ႕֖ܫϡΙ̶̝ிᇃӘ ҖዚĄ ࡁ൴າܫཏ̝ঐᛳّᄃ௫ၚĂΐૻމཏᓝᏱ߿જĂ೩̿ ώҖຽԛ෪Ą ΐૻ೩̿Ӏिќৈ̈́ᆧΐѣ͘ᜈќˢຽચีϫ̝ٚ үĄ ֶ̙ТމચĂฟ٤߿ഇّхഠֽĄ ᜈᓝᏱથݡҖዚ߿જĂ੫၆̙Тڇΐࣃݭ થݡ̈́ቢ˯ᏉྤπέĂᆧซЋຽᏉྤड़தĄ ଯणಫវҋજચຽચܛĂ֭үࠎຽચଯणăҖዚణኘ ̝ણ҂Ą ࡁ൴າЋڶېĂͽЯᑕξಞត̼ژ Ꮙଐ๕ă઼̰யຽજၗăξಞથଐ̶ܛࡁտ઼̰γགྷᑻ ܜăൺഇຽચ൴णࢍ൪ ) (4) (5) (6) (7) (8) (9) (1) (2) (3) ൺഇຽચ൴णࢍ൪ (10) (11) ̱ 1. ( гຽચҖዚĄ (4) To market standardized products through e-banking, toˬثπέăᆧૻޘአܛፋЪ઼γྤ (12) (13) ೩઼̿γྤੈրΑਕĂޙϲᄃᓁҖրాቢĂͽЯᑕ actiYely promote personalized e-serYices, and to build .፬ধ۞઼ᅫ̼ᄃБ̼ᒖဩĄ a highly competitiYe multi-channel sales networkۋᚮ (14) ᕖ઼̂γᒉྻఢሀࣕᆧྈ࠳ዶĈ (5) To deYelop a diYersi¿ed product portfolio with a special ચᅮՐĂ᎕ڇᏉܛᏉ߆ඉ൴णĂ̈́έથܛثa)a))੨Ъ) focus on products with high margins, and to design ܛܑķ̿ॾ̶ҖࠎϫᇾĂฟ٤̂ౙ̋ٿໂͽĶ and proYide products and serYices that are suitable ᏉξಞĄ for each target customer group. ݑֲ൴णĂᆶຕෞڌـѐֽέથགྷᒉᛈ֎ᜈܕb)b))Яᑕ) (6) To construct a ¿nancial serYice network for the Greater ܛચĂೠ೪ڇᏉܛݑֲፂᕇĂͽ೩ֻέથڌҤᚯన China region and proYide customers with speedy ҖЧีᚯన̍үĂጐ̶̰ګᏉથ፟Ą᎕ໂԆјݑ ԣฟຽᒉྻĄ payment serYices through integration of DBU, OBU .c)c))ෞҤᆧనᒉྻᆊࣃ̝ঔγፂᕇĄ and the internet banking of the Hong Kong branch) 2.ܜഇຽચ൴णࢍ൪ (7) To plana comprehensi Ye line of personalized ᒖဩ˭ĂώҖੵ˞ᜈૻ̼ products, inorder to pro Yide customers with theirۋᚮޘᔉᄃ׀Ꮙܛࢬ၆ ̚ .೩̿ξ preferred serYices and productsޘර થݡฟ൴ᄃҖዚਕ˧Ăͽજă᎕ໂᄃ౹າ۞ၗ ચ (8) To strengthen our long-term equity inYestment portfolioڇᏉξಞᔌ๕Ă࿅࿆̈́Б࠷ܛϔ ಞгҜĂՀᑕ·̶ೠ೪ ઼ ચĂ႕֖Чลᆸ and actiYely build up our position in long-term bondڇፂᕇ఼̼̈́̄ྮĂ೩ֻкᇹّ۞થݡ ˝ ᅮՐĂ೩̿ፋវᒉྻᒻड़ćϏֽຽચ൴णࢍ൪т˭Ĉ͗މ ˩ ̣ inYestment. (1) ЯᑕέથБ̼ҶԊĂЪέથྭ઼ྤܛአޘĄ ѐ To take pro¿t with our long-term equity inYestment at ཏ։р۞ྤய੨ཉᄃމą (2) ฟ൴ੑಱგநຽચĂ೩ֻྤய ѐ the right time and identify high-potential inYestment ચĄڇಡ நੑఢထᏙྙ targets, so as to enhance the quality and performance ᏉБ̼ᄃঔγ̶ҖᒔӀّĂૻ̼னѣঔγፂܛЯᑕ (3) of our inYestment portfolio. To Yigorously search ̝ঔγፂᕇĄ˧ۋᕇΑਕĂ֭᎕ໂᆧనᚮ 92 for and buy into corporate bonds and financial ࿅఼̼̄ྮҖዚᇾ̼થݡĂ֭᎕ໂଯᇃ࣎ˠe̼ debentures compliant with ratings requirements in (4) .ᐹ๕۞к఼ྮዚგĄ order to increase income yield and disposition pro¿tsۋϲᚮޙચĂڇ (5) ൴णк̮̼۞થݡЪăૻ̼ᒔӀّથݡ۞ଯणĂ֭ (9) To facilitate the proYisionof quality ¿nancial serYices through our marketing platform as a way of boosting ڇཏĂ᎕ໂఢထă೩ֻዋЪ̝થݡ̈́͗މ੫၆Чϫᇾ ચĄ the professional image of our bank. ચĂᖣϤፋЪDBUăOBǗࢶڇᏉܛг۞ˬثၹޙ (6) To proYide customers with personalized and tailor- ચĄڇ߹ܛԣి۞͗މപ̶ҖშྮᅙҖĂૻ̼ made product packaging serYices inorder to help ચڇ෭͕۞͗މᏉથݡቢĂͽ೩ֻܛఢထԆፋ۞࣎ˠ (7) consolidate and expand our customer base so as થݡЪĄ̈́ to increase our underwriting Yolume inderi YatiYe ๅԸྤొҜĄܜϲޙഇ۵ᝋԸྤЪĂ᎕ໂܜૻ̼ (8) products with the bene¿tofpro¿t enhancement. ഇ۵ᝋԸྤొҜĂ̈́ఢထԸྤሕ˧̝࣎ܜዋॡ̶ (10) To plan for the establishment of a Centralized ९Ăͽ೩ԸྤЪݡኳ̈́ᒻड़Ă֭᎕ໂವԱͷᔉˢ Processing System for Domestic Remittances in line ĂͽᆧΐדᏉๅᇾ۞ඈѣᆊᙋܛЪෞඈࢋՐ̝̳Φๅă with the eYolutionof the centralizedback-office for ፋវӀिќˢ̶̈́ӀৈĄ deposit and remittance operations.. ώچચĂ೩ڇᏉܛଯᇃੑચҖዚπέĂ೩ֻԆචᐹኳ̝ (9) (11) To pursue the goal of centralizing and automating Җຽԛ෪Ą .ચĂஎਆ֭ᕖ̂ deposit and remittance operations at branchesڇˠ̈́ณ֗ࢎઇ̝થݡΒ྅͗މ೩ֻ ፋវچቆĂͽഇᆧΐώҖࢉϠّથݡٚүณĂ೩ૄ͗މ ᒔӀĄ (10) Яᑕޢέх๗үຽะ̼̝̚ซĂఢထ઼̰๗ഠะ̚ү ຽր̝ޙཉĄ (11) ኴᜈଯજ̶Җბх๗үຽ̝ะ̼̈́̚ҋજ̼Ą ANNUAL REPORT 2006 93 5 ѐޘ 2005 94 6 ѐޘѐޘ 5 2006 95 7 ͟ 28 , 2007 ͡ 28, 2007 2 . 28, 2007 555 887 444 111 73 71 73 ѐ 685587677 671 575 652 619 498 590 1611 1570 1457 1485 1463 1448 1739 1681 1632 3074 3074 2810 3996 394330511519 3674 3480 2946 1434 2766 3388 1116 3315 Feb. 28, 2007 96 ၟҌ As of Feb. 28, 2007 e Y e Y e Y (CFA) 1 1 0 Trust Operations (CFP) 10 10 0 for Trust Operations (FRM)(CISA) 7 1 7 1 0 0 ciency Test for Bank Lending Personnel ¿ OthersOthers OthersOthersOthers 69 71 97 (CIA) 7 6 3 ciency Test for International Banking Personnel ciency Test for Bank Lending Personnel ciency Test on Bank Internal Controls ¿ ¿ ¿ ersityersity / / College College 4,831 4,785 4,596 D.D. 2 2 2 ͽ˭ͽ˭ ͽ˭ͽ˭ͽ˭ YY )) )Senior)Senior)Senior)Senior High High High High School School School School)) 957 959 1,182 CPA 4 4 5 Lawyer 2 2 2 ᖚᖚ ᖚᖚᖚ ᖚ idual Insurance Broker idual Insurance Agent idual Life Insurance Representati ciency Test for Financial Planning Personnel ciency Test for Trust Operations (( Ph.Ph. D. D. GraduateGraduate School SchoolUniUni (( 286 277 214 anced Pro Y Y Y ¿ ¿ estment-Orient Insurance Product Representati Y Y நੑఢထˠࣶຽਕ˧ീរ Pro ܐลγ๗ˠࣶຽਕ˧ീរ Basic Pro ซลܫˠࣶຽਕ˧ീរ Ad ܐลܫˠࣶຽਕ˧ീរ Basic Pro થຽચࣶ Securities Specialist ഇఱથຽચࣶ Futures Specialist ˠ֗ܲᐍགྷࡔˠ Indiדથ৺ຽચࣶ Senior Securities Specialist ᙋדर ੑચࢲᐍგநर ᄮᙋநੑఢထᜪય ̰ొቊ८र ઼ᅫཝቊ८र ᙋژर ઼࡚পధੑચ̶ޠ ࢍरົ ᐍຽચࣶ Property Insurance Representatiܲۏˠ֗ܲᐍநˠ Indi ˠ֗ܲᐍຽચࣶ Indi ੑயܲᐍநˠ Property Insurance Agent ய ώീរ Basic Proૄטຽચຽീរ Pro ᅙҖ̰ొଠܫ ੑயܲᐍགྷࡔˠ Property Insurance Broker Ըྤݭܲᐍથݡຽચࣶ In ̚ ౾̀ Ⴧ̀ ̂ ̚ YearYear of of Experience Experience 13.37 13.36 16.18 erageerage Age Age 37.96 37.92 40.44 ŅŅ YY s FYFY No.No. of of Employees EmployeesAA 6,145 6,094 6,091 cates ¿ ̝ЩჍ ͧத ጯ።̶ο ࣶ̍ѣ ຽᙋ The list of Education certi employees ચѐྤڇࣶ̍ˠᇴ πӮѐ໐ πӮ ѐޘ ˟ăଂຽࣶ̍ B. Employee ˬăЋຽయЇ̈́ᇇҖࠎ C. Enterprise Benchmark and Ethical Behavior ࢦᒖܲନ߉ĈтྤаќăӰ̶ᙷăࣶ̍ᐠះֹϡ a.EnYironmental protection measures: Includingڦ(˘) ᇾᐠ̈́Լචᒖဩନ߉Ăͽ࡚̼̈́ᒖဩăᄮዳҖፘ recycling, trash classi¿cation, use of standards utensils inthe employee cafeteria, en Yironmental improYement ඈĄ measures, enYironmental beauti¿cation, and adoption of roadside trees. :᎕ໂણᄃۤົ̳ৈ߿જĈΒ߁ᙒӄĶੑੈᔌ๕ኢጪķႊ b.Participationinpublic welfare andcharity acti Yities(˟) ᓾăĶ2006ၓ̼ᅙҖέΔ101઼ᅫ൳ᔈķăĶ2006 including sponsoring the Wealth InYest Weekly ,ၓ̼ᅙҖགྷ࡚ᓏᜬजǕჯ˵ৼ͌ѐЪભဥķඈրЕ߿ lectures, the 2006 Taipei 101 Climbing Contest જĂ֭ᓝᏱĶᝌሄᏐ̄ᓁજࣶ-ԧߏநੑ̈ыһķ߿જĂ the 2006 Concert of the Vienna Youth Choir, and organizing the Little Sentries of Wealth Management ሄĄٺĂಲିهጱϒቁநੑ៍ކ eYent for the purpose of promoting educational entertainment and correct concepts of wealth (ˬ)ώҖ൴Җ̝Ķၓᅙྤफ़ķ͡ΏĂܼܛᏉຽ̈́࠹ᙯᅳા̝ management. ፟ᙯă̼͕͛̚ăعĂੵֻ̰ొણዦγĂ֭ਖ਼߆ۏΏ ̚ c.The Bank's monthly publication "Chang Hwa ර Ч̂ဦ३ᐡă࠹ᙯጯ७ဥវඈĂͽүࠎጯఙ̼̝͛Ϲ Information" proYides data on ¿nancing business and ϔ ઼ ߹Ą relatiYe fields. Apart from internal distribution, this ˝ publicationis sentto go Yernment agencies, cultural ˩ centers, large libraries, and releYant school groups as ̣ αăྤੈన౯ ѐ a form of academic and cultural exchange. ą (˘) ࢋྤੈన౯Ĉ ѐ ಡ ࢋྤੈన౯Ӯޙཉд̚૬ྤੈ̂ሁĂΒӣĈέγ။ D. IT Equipment ચրăྤफ़ࣗᐼրăಡܑგநրăБ̄ܛ a. Main Equipment of Information Technology Ꮙ͕̚ĞCࢍ൪ğրăາშྮᅙҖրăܫҋજ̼ 94 Information Technology (IT) equipments are all րăෛੈրăЋຽ̰ొშ৭ăฎІրăܫϡΙր installed in the Bank's information building. Systems ,Ꮙથ include an NT dollar/foreign currency account systemܛზրăࢉϠّדă̄ைፂրăൺഇை a Data Warehouse system, a statement management ፟̿৺̈́შྮ˭ಏրדၱࢲᐍგநրăᙋٽݡϹ system, a global electronic financial center system ăˠ˧ྤგநրăைܫ̈́ܫϡྤੈߤྙրඈĄ (C Plan), a brand-new e-banking system, a credit ( ) Ϗֽྤੈրฟ൴̈́ᔉཉࢍ൪Ĉ automation system, an on-line Yideo conference ˟ Еᓝ2007ѐఢထޙཉ̝ྤੈրĂΒӣĈέ̚ளг౯ system, a mail system, a credit card system, an ೯͕̚ޙཉăາ˘ঔγ̶ҖրăBASEL IIࢲᐍგ electronic note system, a short-term note liquidation ந९ăྤफ़ࣗᐼրᕖ·९ăALM/FTPᑕϡրă system, Kondor VaR, a securities serYer upgrade and E-LOANրăБҖОᝥ̈́๗ഠะ̚үຽրăෛੈր online ordering system, PeopleSoft / Human Resource Management System(HRMS), E-JCIC / a historical ጡ౯ڇրࢋҨٸ᎔րăฟ֨ܬᕇࢍထăˢޙᕖ credit data query system. ཉă̳͛გநրăޙЊଵႾଠă߲֨֨ᐦგநր b. Future DeYelopment and Procurement Plans ဦ३ᐡҋજ̼րă͕̚ᇄ၆གྷዚથ̝ᑕќഠგநր Regarding the Information Technology System: ă๊րăe-learningቢ˯ጯ௫րăੑಱგநր IT systems to be deployed in2007: the Remote SOAௐ˘ล߱ޙཉ९ඈĄ Backup Center in Taichung, the Next-Generation OYerseas Branch's System, the BASEL II Risk Management ProMect, expansion of the data ̣ă౻ྤᙯܼĈ warehousing system, the ALM/FTP Application ᄃ၁߉ଐԛĂͽ̈́ޘטώҖЧีࣶ̍Ӏନ߉ăੜЃ (˘) System, the E-LOAN System, the centralized seal and ᛉᄃЧีࣶ̍ᝋৈჯ᜕ନ߉ଐԛĈם౻ྤม̝ remittance system for the entire bank, deployment 1.ⱑӀନ߉ expansion of Yideo capabilities, the Defense against ፉ10ƦăҖ͞ InYasion system, scheduling and monitoring of theع౻ܲĈ၆෪ࠎБវࣶ̍ĂܲϤ߆(1) ፉ70Ʀăώˠፉ20ƦĄ backup of open-system serYers, deployment of ANNUAL REPORT 2006 95 eto Y eVice Y elopment iding daily Y Y ities throughout es selected from Y Y irus and anti-hacking Y ernment paying 10%. Y lled by representati ¿ erage of NT$3 million, with the premium Y elopment and training acations: Employees are entitled to a paid Y Y ables Management system, the Telephone ernment paying 10%. Y ts Y ement. ¿ acation of 7 to 30 days, depending on their seniority Y law, offers labor insurance forBank employees, paying with 70% the ofpaying the 20%, premium, and the the go employees the Bank and the employeeThe union committee through is elections. inthe charge of betterment managing of a employees'established fund welfare. anemployee for commissary There pro has necessities at procurement cost. where books and periodicals areto kept read for or to employees borrow. the law, offers health insurancetheir for dependents, employees with and thethe Bank premium, paying the 60% employees of go paying 30%, and the Y inthe Bank. which organizes annual sports acti the island for the betterment of employees' health. employees welfare committee. AnExecuti President occupies one of thethe seats general as manager appointed of by theseats Bank, shall and be the rest of the elop the potentials of the employees and encourage Y (1) Labor insurance: The Bank, in compliance with the (6) Library: A library is located inTaipei headquarters and policies on employer-employeethe negotiations protectionof and workers: management systems with anti- capabilities, the Document ManagementRecei system, the Collection system, the E-Learning1 System, implementation and of Stage theSOA. wealth management system (2) Health insurance: The Bank, in compliance with (3) Paid (4) Recreation: the Bank has a recreation committee, (5) Welfare committee: The Bank has a 21-member Employees are insured against work-relateda accidents maximum for co paid by the Bank. The Bank's education andde training programs stri them to engage ininorder continued professional to de create aimpro corporate culture of continuous 3. Career de 2. Protectionof employees' safety E. Labor Relations a.Benefits, training and pensions offered by the Bank, 1. Bene ѐ 10 ˠѨ 94 ͇̙ඈ 30 16,069 ～ 7 ቁځϠड़д९Ă͟ ѐޘᜈᓝᏱ 24 96 ƦĄ ༱̮Ăᓁࢍ ͡ 3 30 ѐ ˠĂੵϤᓁགྷநࠁ˘Ҝઘ ̈ॡቚĄ 4,862 94 21 27.30 ֶፂၓ̼ᅙҖĶ౻ྤົᛉ၁߉ࢋ͟ ˠĂᏱநѣᙯⱑӀܛ̝ᚯထăܲგᄃ Ʀă࣎ˠፉ 28 20 60 ͡ 7 ѐ 88 ࡗķĂВ˝ౢ̣˩ˣ୧୧͛ĂགྷםᘪࢎĶဥវ͟ 15 ͡ ఢቑώҖ౻ྤᗕ͞౻જ୧ІĄ ٺޢТຍᄮΞعέΔξ߆ થĂ࿅౻ྤົᛉ఼ĂώҖ౻ྤᙯܼᘦ ؠĄםᕇķఢؠĂؠഇᓝฟ౻ྤົᛉĂົ̚Ϥ౻ྤᗕ͞ВТྋ ՙ೩९֭ ϡְี̈́ѣᙯᖚ̍ⱑӀְีĂΩనѣᖚ̍ⱑӀۤ ͽซఱࣧᆊֻᑕ͟૱Ϡ߿υᅮݡĄ ̍ࣄዦĄ 3ྻ ଯᏴ؎ࣶڱЃĄ ҖЃย߿જ̈́ԫᘹăᘹ͛៍ᇝ߿જͽአࣶ͕̍֗Ăᆧ ৈۢᙊĄ ᓁགྷநࠎ༊؎ࣶγĂዶϤҖ̈́̍͞ົ̶ҾࢎؠᏴᓝ Ᏹ̝ ƦăҖ͞ፉ ፉع߁ͭϓă੨ઊ̈́Ϗăണᅪ̄̃ğܲϤ߆ БϔઉܲᐍĈ၆෪ࠎણΐ౻ܲˠࣶώˠ̈́ாᛳĞΒ ચѐྤ႕˘ѐͽ˯ՏѐӈֳѣڇЃĈ ώҖҋ ౯ѣ̚γЧ३ᚱֻࣶވέΔ̂ሁనཉဦ३ٺĈވဦ३ វֈሄ߿જĈјϲវֈ؎ࣶົĂՏѐ̶ડᓝᏱវֈઉ ٺࠎܳซ౻ྤᗕ͞ϏֽЪү൴णĂώҖᄃயຽ̍ົ ᖚ̍ⱑӀ؎ࣶົĈཉ؎ࣶ ઼࡚̈́ࡻ઼ࡁ௫Ăـࠁࣶ݈̏ޘѐ ѐޘበЕࣶ̍ቚາέ။ (1) (2) (6) (4) (5) (3) (2) Ꮙຽˠ̖Ă 95ܛᏉથݡ̙ᕝଯౘາĂࠎૈ઼ᅫܛٺᝦ צણĂπӮՏҜҖࣶତ Ą 95هԸܲĶဌຍγయЇܲᐍķĂࠎБវࣶ̍ЯેҖᖚચ൴Ϡ ຍγְ߇ॡĂ೩ֻࣶ̍Ϡ߿̝ܲᅪĂܲБొϤҖ͞ ፉĄ ώҖିֈቚͽᖚਕߛၹࠎૄᖂĂ፬൴ࣶ̍ሕਕĂခᐽࣶ ̍ᜈ۞ຽ൴णᄃౄЋຽ̙ᕝӅ˧۞̼͛ந ઼ࡁ௫Ą ఢؠ ᏱநĄ̝΄ڱඈ࠹ᙯڱϏఢؠ۰Ăଉֶ౻જૄڱᏱ நĂώᏱڱĞӣᖚຽխचྃᐺğ̈́ྤᅋඈְีĂֶώᏱףķĂѣᙯࣶ̝̍ੜ ЃăᇬڱᅋᏱྤ̈́ףώҖࢎѣĶࣶ̍ੜЃăᇬ ᛉଐԛם౻ྤ ޘטੜЃ ࣶ̍щБܲᅪନ߉ ซ࣒ᄃቚ 2. 3. 4. 5. ᛉአྋ The Bank appropriated the NT$48.62 million trainingۋ౻ྤعέΔξ߆ٺ94ѐ4͡13͟ٺҖ͞ᄃ̍ົ (3) ,ᛉአྋĂ budget in 2006; 16,069 persons in total took part in trainingۋࡗซҖ౻ྤםăဥវޘטࣶົಶາረ࿌؎ 94ѐ5͡2͟ᓝҖቪ̍Ըை఼ and each employee accepted training of 27.30 hours inٺᗕ͞Ϗ྿јВᙊĄ̍ົ aYerage. Հࠎؼ֭ט࿅ĂܶགྷҖ͞ᄃ̍ົкѨ఼˭Ăࠎֹາ Since new ¿nancial products are continuously launched, ௐ19ѨᓜॡְົبྋႷᇋĂ94ѐ4͡29͟ώҖௐ20̼ the Bank sent employees to the US and UK for training in ซҖᑭĂ֭ᄃயຽ̍ົኢѣᙯޘטՙᛉĶ၆າረ࿌ 2006 and will continue to organize such oYerseas training ᇶቤ၁ޘטᜈ࠹ᙯ੨इନ߉Ăᑭഇมາޢޘטາረ࿌ actiYities in2007 inorder to culti Yate international ¿nancial ߉ķĄ experts. 6.ࣶ̍ᝋৈჯ᜕ନ߉ 4. Retirement ቁఢؠࣶ̍ᝋӀཌྷચĂώҖࢎѣĶ̍үఢķĂᓝ˲ Retirement and pension plans (including compensationځࠎ ચчă̍үॡมă҂८ረᘂăᓟߺӀăੜЃ for Mob-related accidents) put in place by the Bank areڇဌϡă ඈְีĂӮֶώఢᏱநĄ intended to proYide maximal bene¿ts for retiring employeesףᇬ or those who choose to retire early. Employees who opt to 7.ࣶ̍Җࠎ waiYe their rights under the plans shall be bound by related ௐ4Ѩ૱ચְົ఼࿅ώҖ̝Ķࣶ̍Җࠎب94.12.30ௐ21 ̚ ර labor laws and regulations. ϔ ķĄ ઼ 5. Employer-employee negotiations 8. -ࣶ̍щБ۞ܲᅪନ߉ (1) The Bank has organized regular employee ˝ ˩ щБჯ᜕࠹ᙯүຽఢቑ̈́ેҖࢋᕇĂ៰ኛЧಏҜΐב (1) ̣ management meetings since July 28, 1999 in ѐ ૻщБ᜕֨үࠎĂ֭ᓝᏱࣶ̍ҋበႊቚĂͽ೩ࣶ accordance with Chang Hwa Bank's Guidelines for ą ,ăᗼඈПщ Employee-Management Meetings. In the meetingsۋѐ ̍ᛋᛇĂૻ̼ᑕតਕ˧Ă֨ͤຬងăԩ ಡ І൴ϠĄ the management and the employees will Mointly decideְ -ፂЧಏҜᅮՐĂࢋՐܲБ̳ΦăᛋಡăႾෛᐂᇆր on proposals and negotiate. The Bank's employeeֶ (2) management relationship is stable, thanks to ٚүᇄથ᎕ໂ੨ЪᏱநԼච࠹ᙯ᜕֨న౯Ăͽૻ̼Чಏ 96 communication in employee-management meetings. ҜְА֨ቑПщ̝ड़ਕĄ (2) To promote future cooperationbetweenthe ኛܲБ̳ΦࠁܲБˠࣶซዸЧಏҜፉЇᛋԦ̍үĂ؎ (3) management and the employees, the Bank entered ᜈ̟ͽдᖚቚ̈́༛ጱ҂८Ăͽѣड़ჯ᜕үຽᒖဩ֭ into a "CollectiYe Agreement" on March 15, 2005. ̝щБĄ Consisting of 9 chapters and 58 articles, the contract ώҖٙѣҖγྻྃดүຽଉᇴ؎ϤܲБ̳ΦᏱநĂͽ came into effect on March 24, 2005 after being (4) ᔖҺҖࣶҋҖྻด̝үຽࢲᐍĄ approYed by Taipei City GoYernment and stipulates ఢѣᙯఢؠĂܳኛЧಏҜΐૻᏱநঐ֨щБ terms of work between the management and theڱፂঐֶ֨ (5) .ᔖᙱϠన߉̝ჯ᜕გநĂ֭੨Ъ၁߉щБᑭߤᄃ employees̈́ (3) The Bank and the labor union conducted a labor ቚĂͽ֨ͤխच൴ϠĄ dispute mediation regarding the new compensation ఢѣᙯఢؠࢎώҖщБϠ̍үڱፂ౻̍щБϠֶ (6) system and the group contract at the Labor Dispute чĂͽ֨ቑᖚຽխचຍγְ߇൴ϠĂܲᅪࣶ̍щБᄃ Mediation and Reconciliation Committee of Taipei ઉĄ City GoYernment on April 13, 2005. Since the parties ຫ failed to resolYe their differences, the labor union̝צၟҌѐಡΏОͤ͟ĂЯ౻ྤ۬৾ٙዎ̈́ޘѐܕ (˟) .ᗝ̈́Яᑕନ߉Ĉ adopted a resolutionto go ona strike onMay 2, 2005ܛεĂ̈́ϫ݈ᄃϏֽΞਕ൴Ϡ̝Ҥࢍ થЧีᛉᗟĂ After subsequent communication between the Bankם࿅ؠഇᓝฟ౻ྤົᛉĂ౻ྤᗕ͞ВТ ΐૻ఼გĂ̫֞౻ྤᙯܼᏘᘦؠĄ and the labor union, the 19th ProYisional Meeting of the 20th Board of Directors onApril 29, 2005 decided to reconsider the new compensation system and to discuss with the trade associationissues relatingto the releYant accommodating measures for the new compensation system, which will be suspended during the reconsideration of the new system. 6. Employees' rights and responsibilities (3) The Bank has each of its diYisions well guarded by The Bank has issued a "rights and responsibilities" security professionals from outside ¿rms, who receiYe handbook to employees; telling them about company Mob-related training periodically to improYe their skills. policies onhiring,work hours, e Yaluations, benefits and (4) The Bank hires outside security ¿rms to transport cash retirement. from one point to another as a risk aYersionmeasure. 7. Employee Code of Conduct (5) Following the country's fire safety law, each diYision The Employee Code of Conduct was adopted at the 4th of the Bank is responsible for planning fire escape Managing Directors Meeting of the 21st Board of Directors routes and maintaining firefighting equipment to onDecember 30, 2005. preYent inMuries during a ¿re. 8.Protectionof employees' safety (6) Following the country's labor health and safety (1) The Bank has enacted and notified employees regulations, the Bank distributes health and safety of safety maintenance operating standards and guidelines to each diYisionto protect the employees' implementation guidelines. All units haYe been wellbeing. requested to strengthen safety measures and hold b.Losses suffered due to employer-employee disputes employee self-defense drills. The Bank is committed during the latest year and up to the date of annual 2006 REPORT ANNUAL to maintain employee Yigilance and preYent report publication, disclosure of estimated contingent brigandage, obstruction, and sabotage. losses from now on and future disputes, and response (2) Emergency and safety guidelines are issued to each measures: of the Bank's diYisions. Employees take part in drills Employer-employee relations are stable, as Chang Hwa regularly to increase their ability to protect themselYes Bank, held meetings with employees to discuss issues during burglaries, robberies, protests and other facing both sides. emergencies. 97 ăࢦࢋݵࡗ̱ F.Important Contract ୧ഠטݵࡗّኳ ༊ְˠ ݵࡗੋ͟ഇ ࢋ̰ट ࢨ Contract title Contract ¿rm Period Contents Restrictionterms ฎநүຽ̈́ދϡΙಏЕОă྅ܫ फ़؎γந Ꮈ၁ຽ۵Њѣࢨ̳Φ 95.9.10~96.9.95.9.10~96.9.9.9.10~96.9.90~96.9.9~96.9.96.9.9.9.99.9.99ྤ Outsourced data Yung Hsing Ent. Co., Ltd. Sep.10, , 20066 to Sep. 09,9,,2007 2007 Printing, enYeloping and mailing of credit card processing statements ఼ۢಏ̈́၆ಏЕОฎүຽܛૄ Printing and mailing mutual fund noti¿cationand its statement ચڇચྻਖ਼ݵࡗ ̚රԣᅍ۵Њѣࢨ̳Φ 95.7.20~96.7.19.7.20~96.7.197.20~96.7.19.20~96.7.1920~96.7.19~96.7.1996.7.19.7.197.19.1919 ؎Ᏹநைፂ̈́࠹ᙯ̳̝͛ԣᅍڇᅍਖ਼ைፂ Commissioning of an CHUNG HWA Express Corp. July 20,, 20066 to July.. 19,9, 20077 Commissioning of an express deliYery company ܲࣧ express deliYery company to ship notes and documents Principle of to ship notes con¿dentiality ཉ̈́న౯ວዏ९ޙԫఙЪүݵࡗ έ៉ᐹӀր۵Њѣࢨ̳Φ 94.12.30~95.6.30 ྤੈ̂ሁ፟ Technology Unisys Taiwan Limited Dec. 30,, 20055 to June.. 30,, 20066 Relocating the mainframe deployment and ̚ Contract equipment for IT building ර ϔ 95.9.26~96.4.27 έ̚ளг౯೯͕̚ޙཉ९ ઼ Sep. 26,, 20066 to Apr. 27,, 20077 The Backup Center ˝ щ֝ྤੈր۵Њѣࢨ̳Φ 95.5.16~96.3.16 ྤफ़ࣗᐼăྤफ़ሀ̈́ർវड़ਕ೩̿ ˩ ̣ NCR Systems Taiwan May 16,, 20066 to March 16,, 20077 Enhancing performance of Data Warehouse ѐ Limited system, remodel ą ѐ G. Securitization Commodities and Their Relevant ד୧ּٕ̙જயᙋ̼דᏉྤயᙋܛֶޘѐܕಡ ˛ă થݡᙷݭ̈́࠹ᙯ Information Launched in Accordance with̼ד୧ּϦኛ८ࣞᏱந̝ᙋ̼ ྤੈĈ Financial Asset Securitization Act or the Real 98 થݡĄ Estate Securitization Act, and with Approval of̼דϏѣϦኛ८ࣞᏱநᙋޘ95ѐ the Competent Authority None. ANNUAL REPORT 2006 99 - 0 ͟ 31 86,547 350,400 328,957 369,039 104,975 276,765 ͡ 3 6,048,087 8,047,530 6,969,310 2,350,267 2007 43,098,505 62,094,756 13,525,128 84,365,410 77,056,369 13,104,206 17,227,937 65,182,859 15,014,658 24,941,313 24,157,217 24,754,794 18,400,574 ѐ 170,390,883 863,335,462 147,758,070 141,561,854 ੑચྤफ़ ༊ѐޘၟҌ As of Mar. 31, 1,263,908,027 1,271,217,068 1,348,273,437 1,033,114,868 96 າέ။Ζ̮ : Unit: NT$ 1,000 ಏҜ ѐѐ 95 91 2002 95 46 ѐѐ 92 2003 फ़फ़ ྤफ़ྤफ़ ચྤफ़ચྤफ़ ੑચྤफ़ੑચྤफ़ ѐѐ ޘੑચྤफ़ޘੑચྤफ़ 93 2004 ѐޘੑચྤफ़ѐޘੑચྤफ़ ̣ѐޘੑચྤफ़̣ѐޘੑચྤफ़ ܕ̣ѐޘੑચྤफ़ܕ̣ѐޘੑચྤफ़ ܕ̣ѐޘੑચྤफ़ ѐѐ 94 2005 Financial Information of Recent Five Years 28,447,641 18,006,205 18,517,956 24,780,257 ѐѐ ----- 95 2006 0 39,256,183 16,695,690 16,695,690 21,271,619 160,493,845 175,093,260 127,348,849 170,891,345 131,193,068 3,900,014 0 1,591,571 2,188,015 0 48,517 13,523,833 15,040,059 12,680,575 3,802,151 61,644 52,666 39,259 15,852 8,621 74,875,508 76,404,318 72,974,579 73,503,453 52,373,551 339,059 262,032 448,141 380,570 304,975 326,149 - - - - 350,400 354,050 408,245 498,453 464,138 113,864 65,920 - - - 8,047,530 8,215,530 4,644,422 4,644,422 4,644,422 7,492,708 7,173,425 8,613,356 8,159,645 7,404,473 2,331,485 2,391,611 2,061,013 1,752,225 1,446,536 8,559,731 6,580,178 7,274,034 - - 1,280,729,824 1,279,990,716 1,236,481,881 1,246,651,876 1,149,594,7 62,094,756 63,594,756 49,594,756 49,594,756 36,094,756 82,184,549 76,404,318 74,824,333 74,257,779 52,373,551 24,716,130 28,714,615 17,408,628 15,972,883 16,173,682 16,301,987 12,794,440 10,712,573 -49,069,926 - 46,990,588 39,915,954 36,384,359 37,018,340 20,384,585 20,405,645 20,475,656 20,540,468 22,532,011 11,377,055 (34,924,183) (3,441,324) 2,942,341 (9,942,221) 69,275,366 45,373,552 30,850,75317,668,191 28,206,367 22,137,487 30,329,002 33,957,903 31,742,63525,071,214 18,684,564 25,024,975 24,188,169 25,194,736 25,061,700 11,146,041 863,458,135 834,431,158 879,231,370 832,747,979167,548,463 794,402,554 183,300,157 166,237,442 188,705,931 153,930,425 162,085,482 184,164,623 121,311,530 161,775,160 110,046,297 FY 1,273,420,783 1,279,990,716 1,238,331,635 1,245,897,550 1,149,594,7 1,355,605,332 1,356,395,034 1,313,155,968 1,320,155,329 1,201,968,3 1,022,848,401 999,365,926 1,028,406,605 1,012,266,310 974,285,322 ѐޘ able ˼̮Ą aluation increment is NT$8,215,530,000. Y 8,215,530 ̶੨ޢ After Distribution ̶੨ޢ After Distribution ̶੨ޢ After Distribution ̶੨݈ Before Distribution ̶੨݈ Before Distribution ̶੨݈ Before Distribution Equity Ņ ѐ̶੨ޢϏ၁னࢦҤᆧࣃࠎ ࣄᅙҖТຽ Cash, Cash Equivalents, Due from Central Bank and Due from BanksٵδҖ̈́ٸăхܛࡗ༊ன̈́ܛன ีϫ Items Financial Statement ڶੑચໄ 95 யๅܑྤځᖎ ) ˘ ᝋৈᓁᗝ Total ShareholdersڌᏉથݡ̝Ϗ၁னຫৈ Unrealized gain or loss on financial instrument ᎕ೱზአፋᇴ Cumulative translation Adjustment ۵ܛ (Ϗ၁னࢦҤᆧࣃĞොğ Unrealized Revaluation(Note ๅᓁᗝ Total Liabilities ۵ώ Capital ྤώ̳᎕ Capital Surplus ܲ࠳ዶ Retained Earnings Ꮙๅ Other Financial Liability ๅ Other Liabilitiesܛๅ Accrued Pension Pay ܛFinancing from Central Bank and Other Banks,পҾ۵ๅ Subordinated Debentures Pay Preferred Liability ᑕࢍੜЃ דᏉๅܛ;δҖ̈́ТຽᏉྤăᑕ (ๅ income statement RP (Debtדๅ̈́ד෴аைܢᏉๅ Net Financial debts at fair value throughܛயᓁᗝ Total Assets δҖ̈́ᅙҖТຽхഠ Due to Central Banks and Banks хഠ̈́๗ഠ Deposits Accepted and Remittances Payable ̳πᆊࣃតજЕˢຫৈ̝ྤ Ꮙྤயஐᗝ Net Other FA ྤயஐᗝ Net Other Assetsܛ ۵ᝋԸྤஐᗝ Net investment in Equity ؠྤயஐᗝ Net Property and Equipment ԛྤயஐᗝ Net intangible assets̝ڱଳᝋৈ (Ꮙྤயஐᗝ Net FA (HTMܛഇ̝͟זഠஐᗝ Net Loans, Bills Discounted ᑕќഠีஐᗝ Net Receivables ѣҌٸᏉྤயஐᗝ Net FA (Held for trade) ෭ன̈́ܛԸྤ RS (Investment) ౯ֻדๅ̈́דаைܢ ̳πᆊࣃតજЕˢຫৈ̝ܛᏉྤயஐᗝ Net Financial assets at fair value through income statement ොĈ Note:The post-distributionunrealizedre ( யๅܑ̈́ຫৈܑ A. Brief Balance Sheets and Income Statements of Recent Five Yearsྤځᖎޘѐ̣ܕ㢠a. Brief Balance Sheets of Recent Five Years ຫৈܑځᖎ(˟) b. Brief Income Statements of Recent Five Years ಏҜ:າέ။Ζ̮ Unit: NT$ 1,000 ܕ̣ѐޘੑચྤफ़ ༊ѐޘၟҌ ѐޘFY Financial Information of Recent Five Years 96ѐ3͡31͟ ੑચྤफ़ ีϫ 95ѐޘ 94ѐޘ 93ѐޘ 92ѐޘ 91ѐޘ As of Mar. 31, Items 2006 2005 2004 2003 2002 2007 Ӏिஐќৈ 18,219,176 17,065,166 17,013,855 18,832,380 22,290,339 4,464,289 Net Interest Income Ӏिͽγஐќৈ 11,476,326 9,577,139 9,345,752 11,677,857 1,532,893 2,698,861 Net Other Revenues ഠӑϡٸ 4,525,824 62,716,748 13,771,138 15,849,614 45,268,702 1,300,072 Bad Debt Expense ᒉຽϡ 10,845,182 11,868,121 10,942,803 11,158,380 11,474,905 2,716,757 Total Operating Expenses ᚶᜈᒉຽొܝඁ݈ຫৈ 14,324,496 (47,942,564) 1,645,666 3,502,243 (32,920,375) 3,146,321 Earning Before Tax from Continued Operations ᚶᜈᒉຽొܝඁޢຫৈ(ඁޢஐᗝ) 11,084,417 (36,515,754) 1,253,399 2,942,341 (24,658,254) 2,148,073 Gain(Loss) from Continued Operations ઃຽొܝຫৈ ------̚ Gain(Loss) from Discontinued Operations ර ܧ૱ຫৈ(ඁޢஐᗝ) ------ϔ Extraordinary Gain or Loss ઼ ົࢍࣧតજ̝᎕ᇆᜩᇴ 292,638 ----- ˝ Cumulative Effect of Changes in Accounting Principles ˩ ώഇຫৈ 11,377,055 (36,515,754) 1,253,399 2,942,341 (24,658,254) 2,148,073 ̣ Net Income ѐ Տ۵࠳ዶĞ̮ğ 1.79 (7.67) 0.18 0.72 (7.23) 0.35 ą EPS(NTơ) ѐ :ಡ (ˬ)ົࢍरؖЩ̈́ߤ८ຍ֍ c. CPA-Auditor of the FinancialReport 1.ᘪᙋົࢍरĈ95ѐࠎችԈேăਃၷᐌົࢍर 1. CPA-Auditor ЇົࢍरĄ 2006: Hung-Hsiang Tsai, Long-Swei Wonފ94ă93ѐࠎ֩ӕឳăౘ 100 92ѐࠎңԠጏă֩ӕឳົࢍरĄ 2005, 2004: Ivene Juanlu,Yujen Chen 91ѐࠎเୂБăңԠጏົࢍरĄ 2003: Roger Ho, Ivene Juanlu 2002: Charles Huang, Roger Ho 2.ߤ८ຍ֍Ĉ 95ă91ѐࠎ࣒ϒёܲຍ֍Ą 94ă93ă92ѐࠎܲຍ֍Ą 2. Independent Auditors' Opinion: Modified unqualified opinions in 2006 and 2002. Unqualified opinions in 2005, 2004 and 2003. α) Чีᙯᔣّᇾ) d. Key Performance ѐޘFY 95ѐ 94ѐ 93ѐ 92ѐ 91ѐ ༊ѐޘၟҌ96ѐ3͡31͟ 2006 2005 2004 2003 2002 As of Mar. 31, 2007 ีϫItems ྤயಡ࿌த(%) 0.84 (2.74) 0.10 0.23 (2.09) 0.16 ROA (%) (%)ᝋৈಡ࿌தڌ۵ 14.35 (48.29) 1.68 4.65 (37.87) 2.58 ROE (%) (%)ώዋ֖தྤ 11.17 11.03 10.18 11.21 8.35 11.17 Capital adequacy ratio (%)தͧٸ࿈ 1.63 1.67 3.87 4.93 6.97 1.93 Overdue ratio (%) ANNUAL REPORT 2006 101 າέ။Ζ̮ : Unit: NT$ 1,000 ಏҜ As of Mar. 31, 2007 ͟ੑચྤफ़ 31 ͡ ༊ѐޘၟҌ 3 ѐ 96 ѐѐ 94 2005 ) 1)1)1) Recent Years: ොොො (( ------39,256,183 - 48,517 13,523,833 276,765 113,864 65,920 104,975 350,400 354,050 350,400 326,149339,059 262,032 - 369,039 328,957 8,559,731 6,580,178 17,227,937 7,492,708 7,173,425 6,969,310 8,047,530 8,215,530 8,047,530 3,900,014 0 6,048,087 2,331,485 2,391,611 2,350,267 11,146,041 28,447,641 13,104,206 69,275,36617,676,245 45,373,552 22,105,87425,073,758 65,182,859 14,962,861 25,026,04824,716,292 24,943,857 28,715,87816,226,247 24,157,350 12,749,251 24,628,939 20,384,585 20,405,64549,125,106 18,400,574 47,030,54462,094,75611,377,055 43,161,981 63,594,756 (34,924,183) 62,094,756 82,184,549 13,525,128 74,875,508 76,404,318 76,404,318 84,365,410 77,056,369 160,493,855 175,093,267863,458,135 170,390,893 167,548,463 834,431,158 183,300,157 863,335,462 147,758,070 162,085,482 184,164,623 141,561,854 1,355,554,4581,022,818,087 1,356,313,098 999,289,223 1,348,137,780 1,033,041,590 1,273,369,9091,280,678,950 1,279,908,780 1,279,908,780 1,263,772,370 1,271,081,411 ѐѐ ܕѐޘੑચྤफ़ 95 2006 215,530,000. Financial Information of Recent Years (Note1) 8,215,530,000. $8,215,530,000. able FYFY ѐޘ ˼̮Ą 8,215,530 ̶੨݈ Before Distribution ̶੨ޢ After Distribution ̶੨݈ Before Distribution ̶੨ޢ After Distribution ̶੨݈ Before Distribution ̶੨ޢ After Distribution ѐฟؕበᄦĄ ğ nancial information was compiled since 2005. 2 Equity ¿ 94 Ņ Consolidated ѐ̶੨ޢϏ၁னࢦҤᆧࣃࠎ Financing from Central Bank and Other Banks, Subordinated Debentures Pay דᏉๅܛ;ๅ RP (Debt) δҖ̈́ТຽᏉྤăᑕדๅ̈́ד෴аைܢ Ꮙๅ Net Financial Debts at fair value through Income StatementܛᏉྤயஐᗝ Net Other FA ྤயஐᗝ Net Other Assets ྤயᓁᗝ Total Assets δҖ̈́ᅙҖТຽхഠ Due to Central Banks and Banks хഠ̈́๗ഠ Deposits Accepted and Remittances Payable ̳πᆊࣃតજЕˢຫৈ̝ܛ۵ᝋԸྤஐᗝ Net Investment in Equity ؠྤயஐᗝ Net Property and Equipment ԛྤயஐᗝ Net Intangible Assets ̝ڱᏉྤயஐᗝ Net FA (HTM) ଳᝋৈܛഇ̝͟זഠஐᗝ Net Loans, Bills Discounted ᑕќഠีஐᗝ Net Receivables ѣҌٸᏉྤயஐᗝ NetFA(Heldfortrade) ෭ன̈́ܛԸྤ RS (Investment) ౯ֻדๅ̈́דаைܢ Ꮙྤயஐᗝ Banks Net Financial assets at fair value through income statementܛࣄᅙҖТຽ Cash, Cash Equivalents, Due from Central Bank and Due from̳πᆊࣃតજЕˢຫৈ̝ٵδҖ̈́ٸăхܛࡗ༊ன̈́ܛன Ꮙๅ Other Financial Liability ๅ Other Liabilities ๅᓁᗝ Total Liabilities ۵ώ Capital ྤώ̳᎕ Capital Surplus ܲ࠳ዶ Retained Earningsܛๅ Accrued Pension Pay ܛপҾ۵ๅ Preferred Liability ᑕࢍੜЃ Unrealized Revaluation(Note2) ᝋৈᓁᗝ Total ShareholdersڌᏉથݡ̝Ϗ၁னຫৈ Unrealized Gain or Loss on Financial Instrument ᎕ೱზአፋᇴ Cumulative Translation Adjustment ۵ܛ Ϗ၁னࢦҤᆧࣃĞො Ĉ 95 ีϫ Items யๅܑྤځᖎ׀Ъ ੑચྤफ़ҋ׀ĈЪ Ĉ ) 1 2 ˘ ො ( ੑચಡܑĈ B. Parent Company and Subsidiary's Consolidated Financial Statements of׀གྷົࢍरߤ८ᘪᙋ̝ϓ̳̄ΦЪޘѐܕă˟ Note 1 ො Note 2 :The post-distribution unrealized revaluation increment is NT$8, a. Consolidated Brief Balance Sheets of Recent Years ຫৈܑځᖎ׀Ъ(˟) b. Consolidated Brief Income Statements of Recent Year ಏҜ:າέ။Ζ̮ Unit: NT$ 1,000 ܕѐޘੑચྤफ़(ො) ѐޘFY Financial Information of Recent Years (Note) ၟҌ96ѐ3͡31͟ ੑચྤफ़ 95ѐޘ 94ѐޘ ีϫItems As of Mar. 31, 2007 2006 2005 Ӏिஐќৈ 18,220,313 17,066,108 4,464,378 Net Interest Income Ӏिͽγஐќৈ 11,627,485 9,597,398 2,757,162 Net Other Revenues ഠӑϡٸ 4,525,824 62,716,748 1,300,072 Bad Debt Expense ᒉຽϡ 10,982,720 11,876,387 2,766,846 Total Operating Expenses ̚ ර ᚶᜈᒉຽొܝඁ݈ຫৈ 14,339,254 (47,929,629) 3,154,622 ϔ Earning Before Tax from Continued Operations ઼ ˝ ᚶᜈᒉຽొܝඁޢຫৈ(ඁޢஐᗝ) 11,084,417 (36,515,754) 2,148,073 ˩ Gain(Loss) from Continued Operations ̣ ѐ ઃຽొܝຫৈ -- - ą Gain(Loss) from Discontinued Operations ѐ ܧ૱ຫৈ(ඁޢஐᗝ) ಡ -- - Extraordinary Gain or Loss ົࢍࣧតજ̝᎕ᇆᜩᇴ 292,638 - - 102 Cumulative Effect of Changes in Accounting Principles ώഇຫৈ 11,377,055 (36,515,754) 2,148,073 Net Income Տ۵࠳ዶĞ̮ğ 1.79 (7.67) 0.35 EPS(NTơ) ੑચྤफ़ҋ94ѐฟؕበᄦĄ׀ොĈЪ NoteĈConsolidated financial information was compiled since 2005. ੑચಡܑᘪᙋົࢍरؖЩ̈́ߤ८ຍ֍ c. CPA-Auditor of the Consolidated Financial׀Ъ(ˬ) 1.ᘪᙋົࢍरĈ Report 95ѐࠎችԈேăਃၷᐌົࢍरĄ 1. CPA-Auditor ЇົࢍरĄ 2006: Hung-Hsiang Tsai, Long-Swei Wonފ94ѐࠎ֩ӕឳăౘ 2005: Ivene Juanlu,Yujen Chen 2.ߤ८ຍ֍Ĉ 95ѐࠎ࣒ϒёܲຍ֍Ą 2. Independent Auditors' Opinion: 94ѐࠎܲຍ֍Ą Modified unqualified opinions in 2006. Unqualified opinions in 2005. ăᅙҖ̈́ᙯܼЋຽѣੑચฉᖼӧᙱ̝ଐְ̈́ᇆᜩ: Ąˬ C. Any financial crunch confronted by The Bankor its subsidiaries and the re lated impacts: None. ANNUAL REPORT 2006 103 ) ) ) ) ͽ ͽ ͽ ො˟ ො˟ ො˟ ො˟ າέ။Ζ̮ : ͟ 20% 20% 20% (Note B) (Note B) (Note B) (Note B) Unit: NT$1,000 31 4.97( 5.11( 5.07( 5.08( As of Mar. 31, 2007 ͡ llowance for ಏҜ ᆆ̮ĂΩࠎ 3 ged by at least ѐ an allowance for ༊ѐޘၟҌ 96 365.16 ğѐޘតજ྿ ğѐޘតજ྿ ğѐޘតજ྿ 4 94 ѐѐ Type-B preferred shares was nd set aside an allowance for 91 2002 ѐѐ ᆆ̮Ăඁޢᓪຫ 92 2003 627.17 ࠳ዶඈੑચͧத࠰ྵ˯Ğ ѐѐ 93 2004 ژੑચ̶ޘѐ̣ܕ ѐѐ ӑٯᆆ̮Ă೩х౯ 94 2005 ᆆ۵Ą Financial Information of Recent Five Years 14 --(53.01)--- 595.51 1.631.44 1.673.42 1.11 3.87 3.10 0.92 4.93 2.89 1.17 6.97 3.66 1.99 1.93 5.10 1.56 3.48 0.02 0.02 0.02 0.020.84 0.02 (2.74) 0.10 0.01 1.79 0.23 (7.67) (2.09) 0.18 0.16 0.72 (7.23) 0.35 1.674.96 2.184.99 4.97 0.955.00 3.82 3.96 1.125.10 4.92 4.15 4.29 1.27 5.07 4.57 4.48 4.17 5.18 4.79 1.63 2.71 5.38 4.86 5.25 83.88 83.95 84.26 77.97 80.91 83.71 4,8731,867 4,374 (5,995)23.91 4,398 (85.48) 209 5,26314.35 2.79 4,185 508 (48.29)38.31 7.35 (4,332) (137.06) 1,158 1.68 (67.29) 4.75 347 4.65 9.64 (37.87) - 21.78 (130.51) 22.53 2.58 29.99 19.67 24.62 23.34 20.79 (0.06) 3.29 (0.53) 9.83 3.33 - ѐѐ e Bank wrote off bad debts equivalent to NT$59.551 billion and set aside an a 95 2006 15,117,334 19,176,719 8,169,040 9,124,421 9,677,323 14,680,720 , the Bank wrote off bad debts equivalent to NT$59.551 billion and set aside comeperemployee,ROA,ROE,Netincometotalrevenues,andEPSof2006chan pital base. $36.516 billion. In addition capital injection by issuance of 1.4 billion ğѐޘᖼዚӑ FYFY 94 ğژğ۰ΞҺ̶ژğ۰ΞҺ̶ژ۰ΞҺ̶ of bad debts, the Bank wrote off bad debts equivalent to NT$59.551 billion a 20%20% ѐޘ )))) )))) (%)(%) ƦƦƦ ƦƦƦ (( (( ᆧྤĂ൴Җ˙পҾ۵ܛğѐᏱநன 94 (%)(%) )))) ᝋৈಡ࿌தă৷ৈத̈́Տ۵ڌࣶ̍πӮᒔӀᗝăྤயಡ࿌தă۵ޘğѐ (%)(%) ѨѨѨ (( 95 )))) )))) (%)(%) (%)(%) (%)(%) (%)(%) (%)(%) (%)(%) (%)(%) ƦƦƦ ƦƦƦ (( (( (%)(%) Total assets turnover (times) ዶᗝͧத Interest income ratio ᓁྤயฉᖼதܫத Overdue ratio (%) Ӏि͚ΚѐπӮхഠዶᗝͧத Interest payment ratio ӀिќˢΚѐπӮͧٸ࿈ (%) த Loans to deposits ratioͧٸх (%) த Profit growth rateܜத Assetgrowthrate(%) ᒔӀјܜᝋৈಡ࿌த ROE (%) ৷ৈத Net income total revenues (%) Տ۵࠳ዶĞ̮ğ EPS (NT$) ྤயјڌࣶ̍πӮќৈᗝ Average operating revenue per employee (NT$1,000) ࣶ̍πӮᒔӀᗝ Average after-tax income per employee (NT$1,000) ௐ˘ᙷྤώಡ࿌த Return on Tier Icapital (%) ྤயಡ࿌த ROA (%) ۵ (%) ഠξΚத Market share of Loansٸ (%) யξΚத Market share of assets (%) ஐࣃξΚத Market share of net worth (%) хഠξΚத Market share of depositsྤ (%)(%) )))) Items Items Items Items (Note) (Note) (Note) (Note) ොොො (( Яͽ˯ࣧЯĂώĞ Ğ˯ٺӑᖬᄏதĂٯதĂ೩౯ͧٸώҖࠎࢫҲ࿈ Due to the foregoing reasons, financial ratios such as average after-tax in To reduce the overdue ratio and increase the coverage ratio of bad debts, th scale ability јܜத གྷᒉਕ˧ ᒔӀਕ˧ ᒉྻఢሀ Operating Operating Profitability Growth rate ϫีژ̶ Ğ˯ٺԼචੑચඕၹĂૻ̼ҋѣྤώĂ ѐЧีੑચͧதតજࣧЯĄĞࡶᆧഴតજϏ྿˟ܕځᓁዶᗝ̝ͧத ኛᄲܫᓁዶᗝΚܫᓁዶᗝ Related party secured loan Ӏचᙯܼˠፉܲܫ߹જ౯ͧத Liquidity reserve ratio (%) Ӏचᙯܼˠፉܲ The ratio of related party secured loan of total loan (%) conducted in 2005 to improve our financial structure and consolidate our ca 20% compared with 2005. ˯Ą Reasons for changes of financial ratios for the last two years: bad debts of NT$62.717 billion in 2005, resulting in an after-tax loss of NT ژੑચ̶ ) ˘ ( a. FinancialAnalysisof Recent Five Years D. Financial Analysis of Recent Five Years ژੑચ̶ޘѐ̣ܕαă ො˘Ĉ Note1: 1.གྷᒉਕ˧ 1. Operating Ability ഠᓁᗝƟхഠᓁᗝ (1) Loans to Deposits Ratio = Total Loans/Total DepositsٸதŶͧٸх(1) ഠᓁᗝ (2) Overdue Ratio = (Loans Overdue + Other Overdue)/Total LoansٸഠᓁᗝƟٸதŶ࿈ഇͧٸ࿈(2) (3)Ӏि͚ΚѐπӮхഠዶᗝͧதŶӀि͚ᓁᗝƟѐπӮхഠዶᗝĄ (3) Interest Payment Ratio = Total Interest Payment / Balance of Average Annual (4)ӀिќˢΚѐπӮܫዶᗝͧதŶӀिќˢᓁᗝƟѐπӮܫዶᗝĄ Deposit (5)ᓁྤயฉᖼதŶஐќৈƟπӮྤயᓁᗝ (4) Interest Income Ratio = Total Interest Income/ Balance of Average Annual Credit (6)ࣶ̍πӮᒉຽќˢŶஐќৈƟࣶ̍ᓁˠᇴ (5) Total Assets Turnover = Net Operating Revenue/Average of Total Assets (7)ࣶ̍πӮᒔӀᗝŶඁޢ৷ৈƟࣶ̍ᓁˠᇴ (6) Average Operating Revenue per Employee = Net Operating Revenue/Numberof Employees 2.ᒔӀਕ˧ (7) Average After-tax Income per Employee = After-tax Income /Number of Employees (1)ௐ˘ᙷྤώಡ࿌த=ඁ݈ຫৈƟπӮௐ˘ᙷྤώᓁᗝĄ (2)ྤயಡ࿌தŶඁޢຫৈƟπӮྤயᓁᗝĄ 2. Profitability ᝋৈஐᗝĄ (1) Return on Tier ICapital = Before-tax Earnings or Losses / Total Average Tier ICapitalڌຫৈƟπӮ۵ޢᝋৈಡ࿌தŶඁڌ۵(3) (4)৷ৈதŶඁޢຫৈƟஐќৈ (2) ROA = Net Income/Average of Total Assets ஐӀůপҾ۵۵Ӏ)ƟΐᝋπӮ̏൴Җ۵ᇴĄ (3) ROE = Net Income/Average of Total StockholdersŅ EquityޢՏ۵࠳ዶŶ(ඁ(5) (4) Net Income to Total Revenue = Net Income/Total Revenue 3. јܜத (5) EPS = (Net Income – Preferred Stock Dividend)/Average Weighted Outstanding ̚ (1) =( ) Stock ර ྤயјܜத ༊ѐޘྤயᓁᗝů݈˘ѐޘྤயᓁᗝ Ɵ݈˘ѐޘྤயᓁᗝĄ ϔ (2)ᒔӀјܜத=Ğ༊ѐޘඁ݈ຫৈů݈˘ѐޘඁ݈ຫৈğƟ݈˘ѐޘඁ݈ຫৈĄ ઼ 3. Growth Rate ߹જ౯ͧதŶ̚δᅙҖఢؠ߹જྤயƟᑕ೩߹જ౯̝ЧีๅĄ (1)Asset Growth Rate = (Total Asset of the Year – Total Asset of Previous Year)/Total .4 ˝ ˩ Asset of Previous Year ̣ ѐ 5.ᒉྻఢሀ (2) Profit Growth Rate = (Before-tax Earnings or Losses of the Year – Before-tax Earnings Ꮙ፟ၹྤயᓁᗝ or Losses of Previous Year)/Before-tax Earnings or Losses of Previous Yearܛഠຽચ̝Бវٸą (1)ྤயξΚதŶྤயᓁᗝƟΞᏱநх Ꮙ፟ၹஐࣃᓁᗝܛഠຽચ̝Бវٸѐ (2)ஐࣃξΚதŶஐࣃƟΞᏱநх ಡ Ꮙ፟ၹхഠᓁᗝ 4. Liquidity Reserves Ratio = Liquid Assets Stipulated by CBC/Reserves Appropriatedܛഠຽચ̝БវٸхഠξΚதŶхഠᓁᗝƟΞᏱநх(3) ഠᓁᗝ for various Types of DepositsٸᏉ፟ၹܛഠຽચ̝БវٸഠᓁᗝƟΞᏱநхٸഠξΚதŶٸ(4) 104 ො˟Ĉ༊ѐޘၟҌ96ѐ2͡28͟ੑચྤफ़Ą 5. Operating Scale (1) Market Share of Asset = Total Asset /Total Asset of All Financial Institutions Available for Deposits and Loans (2) Market Share of Net Worth = Net Worth/Total Asset of All Financial Institutions Available for Deposits and Loans (3) Market Share of Deposit=Total Deposit/ Total Asset of All Financial Institutions Available for Deposits and Loans (4) Market Share of Loan=Total Loan// Total Asset of All Financial Institutions Available for Deposits and Loans Note 2 : Finacial Information as of Feb. 28, 2007 ANNUAL REPORT 2006 105 າέ။Ζ̮ : ͟ Unit: NT$ 1,000 None None None None 31 ಏҜ ͡ 3 ѐ 96 ၟҌ As of Mar. 31, 2007 None None None None 1)1)1)1) ѐѐ ොොො 94 2005 (( --- 0.84 (2.74)1.79 0.16 (7.67) 0.35 1.67 2.18 1.63 1.631.443.42 1.670.02 1.11 3.10 1.93 0.02 1.56 3.48 0.01 14.3538.31 (48.29) (137.06)21.78 2.58 29.99 22.53 20.79 4,8781,859 4,378 (5,995) 1,163 346 23.93 (85.44) - 83.88 83.95 83.71 (0.06) - - None None None None 15,117,334 19,176,719 14,680,720 ѐѐ ܕѐޘੑચྤफ़ 95 2006 ğژ۰ΞҺ̶ Financial Information of Recent Years (Note1) 20% FYFY (%)(%) (%)(%) ѐޘ (%)(%) %) (%) %) )))) (%) ğ ğ ѨѨѨ (%) (%) (%) (%) % % (( ) %) (%) ̮ ( (%)(%) (%)(%) %) (%) (%) ഠξΚத Market share of loansٸ (%) யξΚத Market share of assets (%) ஐࣃξΚத Market share of net worth (%) хഠξΚத Market share of depositsྤ Ą ) ѐฟؕበᄦĄ Overdue ratio (%) (%)தĞ Profit growth rateܜதĞ Asset growth rate(%) ᒔӀјܜ৷ৈத Net income total revenues (%) Տ۵࠳ዶ EPS (NT$) ྤயј ഠዶᗝͧத Interest income ratio ᓁྤயฉᖼத Total assets turnover (times) ࣶ̍πӮќৈᗝ Average operating revenue per employee ࣶ̍πӮᒔӀᗝ Average after-tax income per employeeٸӀि͚ΚѐπӮхഠዶᗝͧத Interest payment ratio ӀिќˢΚѐπӮ (%) ᝋৈಡ࿌த ROEڌௐ˘ᙷྤώಡ࿌த ۵ Return on Tier Icapital (%) ྤயಡ࿌த ROA (%) தͧٸ࿈ (%) த Loans to deposits ratioͧٸх ˘ 94 ( (%)(%) 2)2)2) ොොො ( ( Consolidated financial information was compiled since 2005. Formulas used in calculations are same as those of the foregoing table a. Ĉ Ĉ ีϫ Items(Note 2) ᒔӀਕ˧ Profitability јܜத Growth rate ߹જ౯ͧத Liquidity reserve ratio (%) Ӏचᙯܼˠፉܲܫᓁዶᗝ Related party secured loan ӀचᙯܼˠፉܲܫᓁዶᗝΚܫᓁዶᗝ̝ͧத The ratio of related party secured loan of total loan (%) ᒉྻఢሀ Operating scale གྷᒉਕ˧ Operating ability ѐЧีੑચͧதតજࣧЯĄĞࡶᆧഴតજϏ྿˟ܕځኛᄲ .Ą last two years: Please refer to the foregoing table a. financial AnalysisژReasons for changes of financial ratios for theኛણዦ˯ܑੑચ̶ ژੑચಡܑੑચ̶׀Ъ ܑ˯ੑચྤफ़ҋ Ĉࢍზ̳ёт׀ĈЪ ) 1 2 ˟ ො Note1 ො Note2 ( b. Consolidated Financial Analysis of Recent Five Years (ώዋّ֖(ො1ྤ(ˬ) c. Adequacy of Capital(Note 1) ಏҜ:າέ။Ζ̮ Unit: NT$ 1,000 ၟҌޘώዋ֖த ༊ѐྤޘѐ̣ܕ ѐޘ FY Capital Adequacy Ratio of Recent Five Years 96ѐ3͡31͟ ώዋ֖தྤ 95ѐ 94ѐ 93ѐ 92ѐ 91ѐ As of March ϫ(ො2) Items(Note 2) 2006 2005 2004 2003 2002 31, 2007ีژ̶ ఼۵ Common Stocks 48,094,756 48,094,756 48,094,756 48,094,756 34,594,756 48,094,756 ᎕পҾ۵ܧϖᜈ Non- cumulative Perpetual Preferred Stocks 10,538,485 8,503,904 0 0 0 10,538,485 ד᎕ѨึҜๅܧഇ͟ז Non-cumulative Subordinated Debts without Maturity Dates 000000 ќ۵ώ AdvancedAdvancedReceiptsforCapitalStocks000000 Receipts for Capital Stocks ώ̳᎕Ğؠྤயᆧࣃ̳᎕ੵγğྤ ௐ Capital Surplus (apart from Fixed Asset Appreciation Surplus) 0 34,756,183 12,195,690 12,195,690 16,771,619 0 ˘ ؠ࠳ዶ̳᎕ Legal Reserves 0 1,258,722 882,702 0 11,614,113 0ڱ ᙷ ྤ পҾ࠳ዶ̳᎕ Special Reserve 0 0 0 0 2,991,876 0 ώ Tier I ᎕࠳ᓪ Retained Earnings 11,377,055 (36,182,905) 2,558,622 2,942,341 (24,548,210) 11,377,055 Capital ͌ᇴ۵ᝋ Minority Interests ᝋৈีϫ Others of Equity 246,271 262,032 448,141 380,570 304,975 246,271ڌ۵ ഴĈથ Goodwill ഴĈ̙։ๅᝋϏᝊዚຫε Non-amortization of NPL Disposal Loss ̚ ഴĈྤώљੵีϫ Others 3,428,455 3,679,000 5,018,699 4,649,693 5,351,043 3,428,455 ර ҋ ௐ˘ᙷྤώЪࢍ Total Tier II66,828,112 53,013,692 59,161,212 58,963,664 36,378,086 66, 828,112 ϔ ϖᜈ᎕পҾ۵ 000000 ઼ ѣ Perpetual Cumulative Preferred Stocks דഇ͟᎕ѨึҜๅז ˝ ྤ Cumulative Subordinated Debts without Maturity Dates 000000 ˩ ώ ؠྤயᆧࣃ̳᎕ 8,047,530 8,215,530 4,644,422 4,644,422 4,644,422 8,047,530 ̣ Net Capital Fixed Asset Appreciation Surplus ᏉྤயϏ၁னӀৈ̝45% 188,521 109,725 780,598 463,587 41,177 188,521ܛѐ ౯ֻ ௐ 45% of Unrealized Gain Of Financial Assets In Available-for-sale ConvertibleConvertibleBonds Bonds 000000 דą ˟ Ξᖼೱๅ ᙷ ӑٯѐ ᒉຽ౯̈́౯ ྤ Operating Reserve and Loan Loss Provision 9,938,348 9,318,738 1,741,652 2,348,369 3,480,840 9,938,348 ಡ ώ Long- term Subordinated Debts 8,200,000 12,000,000 15,800,000 19,600,000 17,264,565 8,200,000 דഇѨึҜๅܜ Tier II ϖᜈপҾ۵ Non-perpetual Preferred Stocks 0 0 1,200,000 2,400,000 3,600,000 0ܧ Capital Ъࢍד᎕ѨึҜๅܧഇ͟ז᎕পҾ۵̈́ܧϖᜈ ௐ˘ᙷྤώᓁᗝѺ̶̝˩̣۰ 106 The Aggregate of Non-cumulative Perpetual Preferred Stocks 3,461,515 5,496,0960003,461,515 and Non-cumulative Subordinated Debts without a Maturity Date exceed 15% of total Tier 1 Capital. ഴĈྤώљੵีϫ Others 3,428,455 3,679,000 5,018,700 4,649,693 5,351,044 3,428,455 ௐ˟ᙷྤώЪࢍ Total Tier II 26,407,459 31,461,089 19,147,971 24,806,685 23,679,960 26,407,459 Short-term Subordinated Debts דௐˬᙷ ൺഇѨึҜๅ ྤώ ϖᜈপҾ۵ Non-perpetual Preferred Stocksܧ Tier III Capital ௐˬᙷྤώЪࢍ Total Tier III ҋѣྤώ Net Capital 93,235,571 84,474,781 78,309,183 83,770,349 60,058,046 93,235,571 Standardized Approach 821,292,880 745,499,070 747,814,429 718,293,747 685,601,714 821,292,880 ڱᇾ ܫϡࢲᐍ Internal Rating Based Approach ڱCredit Risk ̰ొෞඈ Securitization ̼דயᙋྤ Basic Indicator Approach ڱΐᝋࢲᐍ ૄώᇾ ڱᏴፄّᇾ/ڱயᗝ үຽࢲᐍ ᇾྤّ Total Operational Standardized Approach / Alternative Standardized Weighted Risk Approach Advanced Measurement Approach ڱRisk Assets ซลᏊณ Standardized Approach 13,080,675 20,618,253 21,396,275 29,005,500 33,599,338 13,080,675 ڱξಞࢲᐍ ᇾ Internal Model Approach ڱMarket Risk ̰ొሀݭ ΐᝋࢲᐍّྤயᓁᗝ Total Risk-weighted Assets 834,373,555 766,117,323 769,210,704 747,299,247 719,201,052 834,373,555 ώዋ֖த Capital Adequacy Ratio (%) 11.17Ʀ 11.03Ʀ 10.18Ʀ 11.21Ʀ 8.35Ʀ 11.17%ྤ ௐ˘ᙷྤώΚࢲᐍّྤய̝ͧத Tier ICapital to Risk Assets Ratio(%) 8.01 Ʀ 6.92Ʀ 7.69Ʀ 7.89Ʀ 5.06Ʀ 8.01% ௐ˟ᙷྤώΚࢲᐍّྤய̝ͧத Tier Ii Capital to Risk Assets Ratio(%) 3.16Ʀ 4.11Ʀ 2.49Ʀ 3.32Ʀ 3.29Ʀ 3.16% (%)ௐˬᙷྤώΚࢲᐍّྤய̝ͧத Tier Iii Capital to Risk Assets Ratio ఼۵۵ώΚᓁྤயͧத COE to Total Assets Ratio(%) 3.55% 3.55% 3.66% 3.64% 2.88% 3.55% ğژഇྤώዋ֖ͧதតજࣧЯĄĞࡶᆧഴតજϏ྿20%۰ΞҺ̶˟ܕځኛᄲ Reasons for changes of capital adequacy ratios for the last two years: None. Ă̈́ Note1 : In compliance with the "Regulations Governing The Capital Adequacy Ratioڱგᅙ(˘)0960000020ཱི΄οᅙҖྤώዋّ֖გநᏱܛგົ96.1.4ܛො1Ĉֶ ੨ЪώܑበᄦĂྤώഴੵีϫܛᗝπӮ̶੨Ҍௐ˘ă˟ᙷྤώĄ of Banks" announced by the FSC accorrding to Order 0960000020 on January 4, 2007, and in accordance with the compilation of this sheet, the amount of ො2Ĉ capital deductions is distributed evenly between Tier Iand Tier IIcapita l. 1. ҋѣྤώŶௐ˘ᙷྤώŮௐ˟ᙷྤώŮௐˬᙷྤώĄ ϡࢲᐍΐᝋࢲᐍّྤயŮĞүຽࢲᐍŮξಞࢲᐍğ̝ྤ Note2ĈܫΐᝋࢲᐍّྤயᓁᗝŶ .2 ώࢍ೩Ű12.5Ą (1) Net Capital Base = Tier I Capital + Tier II Capital + Tier III Capital + ώዋ֖தŶҋѣྤώƟΐᝋࢲᐍّྤயᓁᗝĄ (2) Total Weighted Risk Assets = Credit Risk Weighted Risk Assets + (Operational Riskྤ .3 ௐ˘ᙷྤώΚࢲᐍّྤய̝ͧதŶௐ˘ᙷྤώƟΐᝋࢲᐍّྤயᓁᗝĄ Market Risk) Capital Requirement Ű12.5 .4 ௐ˟ᙷྤώΚࢲᐍّྤய̝ͧதŶௐ˟ᙷྤώƟΐᝋࢲᐍّྤயᓁᗝĄ (3) Capital Adequacy Ratio = Net Capital Base/Total Risk Assets .5 ௐˬᙷྤώΚࢲᐍّྤய̝ͧதŶௐˬᙷྤώƟΐᝋࢲᐍّྤயᓁᗝĄ (4) Ratio of Tier ICapital to Risk Assets = Tier ICapital / Total Risk Assets .6 ఼۵۵ώΚᓁྤயͧதŶ఼۵۵ώƟᓁྤயĄ (5) Ratio of Tier II Capital to Risk Assets = Tier II Capital/Total Risk Assets .7 (6) Ratio of Tier III Capital to Risk Assets=Tier III Capital/Total Risk Assets (7)Ratio of Common Share Equity to Total Assets=Common Share Equity/Total Assets ANNUAL REPORT 2006 107 ,485 3.18% 8.05% 11.23% າέ။Ζ̮ ͟ : 31 Unit: NT$ 1,000 ͡ ಏҜ 3 ѐ ώዋ֖தྤ ༊ѐޘၟҌ 96 As of March 31, 2007 uary 4, 2007, and in ƦƦ ƦƦ ƦƦ 4.11 6.92 11.03 2)2)2) ѐѐ ොොො 94 2005 (( 00 0 0 34,756,183 0 00 0 ƦƦ ƦƦ ƦƦ 188,521 109,725 188,521 3,461,515 5,496,096 3,461,515 ѐѐ ܛᗝπӮ̶੨Ҍௐ˘ă˟ᙷྤώĄ 95 ώዋ֖தྤޘѐܕ 2006 Capital Adequacy Ratio of Recent Year (Note 2) FYFY ѐޘ . tions is distributed evenly between Tier Iand Tier IIcapital. le c. y Ratio of Banks" announced by the FSC accorrding to Order 0960000020 on Jan ğژğ۰ΞҺ̶ژğ۰ΞҺ̶ژ۰ΞҺ̶ 20%20% 45%45% OperatingOperating Reserve Reserve and and Loan Loan Loss Loss Provision Provision 9,938,348 9,318,537 9,938,348 OthersOthers 3,428,455 3,652,667 3,428,455 OthersOthers 3,428,455 3,652,667 3,428,455 Non-Non- cumulative cumulative Perpetual Perpetual Preferred Preferred Stocks Stocks 10,538,485 8,503,904OthersOthers of of Equity Equity 10,538 FixedFixed Asset Asset Appreciation Appreciation Surplus Surplus 246,271 262,032 8,047,530 8,215,530 246,271 8,047,530 PerpetualPerpetual Cumulative Cumulative Preferred Preferred Stocks StocksLong-Long- term term Subordinated Subordinated Debts Debts 0 0Short-termShort-term Subordinated Subordinated Debts Debts 8,200,000 12,000,000 0 8,200,000 TotalTotal Tier Tier II II TotalTotal Tier Tier III III 26,407,459 31,487,221 26,407,459 TotalTotal Tier Tier I66,828,112 I 53,040,025 66,828,112 SpecialSpecial Reserve Reserve 0 0 0 Non-perpetualNon-perpetual Preferred Preferred Stocks StocksNon-perpetualNon-perpetual Preferred Preferred Stocks Stocks 0 0 0 LegalLegal Reserves Reserves 0 1,258,722 0 InternalInternal Rating Rating Based Based Approach Approach SecuritizationSecuritization ConvertibleConvertible Bonds Bonds 0BasicBasic Indicator Indicator Approach Approach 0AdvancedAdvanced Measurement Measurement Approach Approach InternalInternal Model Model Approach Approach 0 MinorityMinority Interests Interests GoodwillGoodwill AdvancedAdvanced Receipts Receipts for for Capital Capital Stocks StocksRetainedRetained Earnings Earnings 0 0 11,377,055 (36,182,905) 0 11,377,055 StandardizedStandardized Approach Approach 817,399,792 745,482,933 817,399,792 StandardizedStandardized Approach Approach 13,080,675 20,618,253 13,080,675 ڱᏴፄّᇾڱᏴፄّᇾڱᏴፄّᇾ Ă̈́੨ЪώܑበᄦĂྤώഴੵีϫڱοᅙҖྤώዋّ֖გநᏱ΄ཱི CommonCommon Stocks Stocks 48,094,756 48,094,756 48,094,756 // TotalTotal Risk-weighted Risk-weighted Assets Assets 830,480,467 766,101,186 830,480,467 TierTier III III Capital Capital to to Risk Risk Assets Assets Ratio(%) Ratio(%) TierTier II II Capital Capital to to Risk Risk Assets Assets Ratio(%) Ratio(%) 3.18 TierTier ICapital ICapital to to Risk Risk Assets Assets Ratio(%) Ratio(%) 8.05 ̼דயᙋྤ ڱෞඈొ̰ ڱᇾ ᏉྤயϏ၁னӀৈ̝ܛᝋৈีϫ ഴĈથ ഴĈ̙։ๅᝋϏᝊዚຫε Non-amortization of NPL Disposal Loss ഴĈྤώљੵีϫ ௐ˘ᙷྤώЪࢍ ؠྤயᆧࣃ̳᎕ ౯ֻڌؠ࠳ዶ̳᎕ পҾ࠳ዶ̳᎕ ᎕࠳ᓪ ͌ᇴ۵ᝋ ۵ڱ (᎕পҾ۵ ќ۵ώ ྤώ̳᎕Ğؠྤயᆧࣃ̳᎕ੵγğ Capital Surplus (apart from Fixed Asset Appreciation Surplusܧ఼۵ ϖᜈ ڱሀݭొ̰ ڱᇾ ڱStandardized Approach / Alternative Standardized Approach ซลᏊณ ڱᇾ ڱϖᜈপҾ۵ ௐˬᙷྤώЪࢍ ૄώᇾܧ דЪࢍௐ˘ᙷ ྤώᓁᗝѺ̶̝˩̣۰ The Aggregate of Non-cumulativeNon-cumulative Perpetual Subordinated Preferred Debts Stocks without A and Maturity15% Date of exceed total Tier 1 Capital. ഴĈྤώљੵีϫ ௐ˟ᙷྤώЪࢍ ൺഇѨึҜๅד᎕ѨึҜๅܧഇ͟ז᎕পҾ۵̈́ܧϖᜈপҾ۵ ϖᜈܧ דഇѨึҜๅܜ ӑٯᒉຽ౯̈́౯ דCumulative Subordinated Debts without Maturity Dates 45% of Unrealized Gain of Financial Assets in Available-for-sale Ξᖼೱๅ דഇ͟᎕ѨึҜๅזNon-cumulative Subordinated Debts without Maturity Dates ϖᜈ᎕পҾ۵ ד᎕ѨึҜๅܧഇ͟ז COECOE to to total total Assets Assets Ratio(%) Ratio(%) 3.55% 3.55% 3.55% 1) ො NetNet Capital Capital 93,235,570 84,527,246 93,235,570 )0960000020 ( ˘ ( ௐ ˘ ᙷ ྤ ώ ௐ ˟ ᙷ ྤ ώ Risk Ą Items (Note 3) ) ѐฟؕበᄦĄ 3)3)3) Items Items Items (Note (Note (Note 3) 3) 3) ܫϡࢲᐍ үຽࢲᐍ ξಞࢲᐍ ˬ Credit Risk Market Risk ( 94 Operational ௐˬᙷྤώ Tier ICapital Tier II Capital CapitalCapital Adequacy Adequacy Ratio Ratio (%) (%) 11.23 ܛგᅙ ොොො Tier III Capital ҋѣྤώ ΐᝋࢲᐍّྤயᓁᗝ (( 96.1.4 ҋ ѣ ྤ ώ Total ϫีژ̶ ΐᝋࢲᐍ ّྤயᗝ Weighted Risk Assets Net Capital ௐˬᙷྤώΚࢲᐍّྤய̝ͧத Reasons for changes of capital adequacy ratios for the last two years: None ఼۵۵ώΚᓁྤயͧத ഇྤώዋ֖ͧதតજࣧЯĄĞࡶᆧഴតજϏ྿˟ܕځኛᄲ ௐ˟ᙷྤώΚࢲᐍّྤய̝ͧத ώዋ֖தྤ ௐ˘ᙷྤώΚࢲᐍّྤய̝ͧத accordance with the compilation of this sheet, the amount of capital deduc ώዋّ֖ྤ׀Ъ ) Ĉࢍზ̳ёт˯ܑ გົܛĈֶ ੑચྤफ़ҋ׀ĈЪ 3 1 2 α Note 2 : Consolidated financial information was compiledො since 2005. Note 3 : Formulas used in calculations are same as those of the foregoing tab ො Note1 : In compliance with the "Regulations Governing The Capital Adequac ො ( d. Consolidated Adequacy of Capital (Note 1) ົࢍरߤ८ಡӘ ၓ̼થຽᅙҖ۵Њѣࢨ̳Φā̳ᝦĈ āāၓ̼થຽᅙҖ۵Њѣࢨ̳Φϔ઼˝˩̣ѐ˩˟͡ˬ˩˘̝͟ྤயๅܑĂၱϔ઼˝˩̣ѐ˘͡˘͟Ҍ ߹ณܑĂຽགྷώົࢍरߤ८ඇְĄ˯ฟੑચಡܑ̝በᄦܼܛᝋৈតજܑ̈́னڌຫৈܑă۵̝͟˘˩ˬ͡˟˩ ಡӘĄၓ̼થຽᅙҖ۵Њѣࢨ̳Φϔ઼˝˩αڍΦგநลᆸ̝యЇĂώົࢍर̝యЇࠎॲፂߤ८ඕ̳ ϔ઼˝˩̣ѐ˟͡˝ܲ͟ຍ֍ߤ८ಡӘĄٺੑચಡܑܼϤົࢍरߤ८Ă̝֭ޘѐ Ꮙຽੑચಡܑఢķ̈́˘ਠ̳ᄮᆶࢍఢထ֭ેҖߤ८̍үĂͽܛāāώົࢍरֶܼĶົࢍरߤ८ᘪᙋ ᗝ̈́ٙ೬ᜨְี̝ܛੑચಡܑٙЕפੑચಡܑѣࢦ̙̂၁ܑ྿Ąѩีߤ८̍үΒ߁ͽ٩ߤ͞ёᒔܫЪநቁ ߤ८ᙋፂăෞҤგநลᆸበᄦੑચಡܑٙଳϡ̝ົࢍࣧ̈́ٙү̝ࢦ̂ົࢍҤࢍĂၱෞҤੑચಡܑፋវܑ̝ ѩีߤ८̍үΞ၆ܑٙϯ̝ຍ֍೩ֻЪநֶ̝ፂĄܫ྿Ąώົࢍर࠹ ̚ ੑચಡܑдٙѣࢦ̂͞ࢬܼޘර āāֶώົࢍर̝ຍ֍Ăௐ˘߱ٙၓ̼થຽᅙҖ۵Њѣࢨ̳Φϔ઼˝˩̣ѐ ϔ થຽົࢍந̚ᄃੑચົࢍ࠹ᙯ̝ఢؠၱ̈́ڱĶ̳ฟ൴ҖᅙҖੑચಡӘበᄦķăથຽົࢍֶ ઼ ېਠ̳ᄮົࢍࣧበᄦĂ֖ͽ̯༊ܑ྿ၓ̼થຽᅙҖ۵Њѣࢨ̳Φϔ઼˝˩̣ѐ˩˟͡ˬ˩˘̝͟ੑચ˘ ˝ ߹ณĄܛᄃனڍĂၱϔ઼˝˩̣ѐ˘͡˘͟Ҍ˩˟͡ˬ˩˘̝͟གྷᒉјڶ ˩ ̣ ѐ ොˬٙĂၓ̼થຽᅙҖ۵Њѣࢨ̳Φҋϔ઼˝˩̣ѐ˘͡˘͟Ăଳϡາ൴ο̝ੑચົܢą āāтੑચಡܑ Ꮙથݡܑ̝྿ᄃ೬ᜨķĂͽ̈́࠹ܛᏉથݡ̝ົࢍநķ̈́ௐˬ˩ཱི̱Ķܛѐ ࢍ̳ಡௐˬ˩αཱིĶ ಡ ᙯ̳ಡ੨Ъາ࣒ࢎ̝୧͛Ą ϡĂϺ̝ژ̶·ܑĂࢋֻܼྃځੑચಡܑࢦࢋົࢍࡊϫޘāāၓ̼થຽᅙҖ۵Њѣࢨ̳Φϔ઼˝˩̣ѐ 108 ܑдٙѣࢦ̂͞ࢬᄃௐځགྷώົࢍरଳϡௐ˟̝߱ٙߤ८Ԕ̟ͽߤ८Ąፂώົࢍर̝ຍ֍Ăྍඈࡊϫ ߱ٙੑચಡܑ࠹ᙯྤੈ˘Ą˘ ಡܑĂ֭གྷώົࢍरߤ८࣒ϒёܲຍ׀Ъ̝ޘāāၓ̼થຽᅙҖ۵Њѣࢨ̳Φ̏በᄦϔ઼˝˩̣ѐ ֍̝ߤ८ಡӘд९Ă౯ֻણ҂Ą ࢍरְચٙົܫ๔ຽி ົࢍरችԈே ົࢍरਃၷᐌ ၱഇఱგந؎ࣶົ८ ཱིࣞ͛דၱഇఱგந؎ࣶົ८ཱིࣞ͛ੑ߆ొᙋדੑ߆ొᙋ έੑᙋ̱фௐ0920123784ཱི έੑᙋ̱фௐ0920123784ཱི ̚රϔ઼˝˩̱ѐ˟͡˩̱͟ ANNUAL REPORT 2006 109 Chang ects, the ņ Accounting and related hareholders' ņ Ň k, Ltd. ( ict between the English 2006, Chang Hwa inancial Statements À s of its operations and ollars). These financial 2006 on which we have rform the audit to obtain ting Law and Guidelines AS) No. 34 overning the Preparation isclosures in the financial ponsibility is to express an uary 9, 2006, expressed an ks and accounting principles sed and significant estimates ds, and accounting principles standards generally accepted in nancial statements have been translated into ¿ nancial position, results of operations and cash ¿ nancial statements in accordance with the ancial statments of Chang Hwa Bank as of ¿ ¿ c of China. If there is any con epted in the Republic of China and not those of any other tation of the two versions, the Chinese-language auditors' nancial statement presentation. We believe that ¿ nancial statements are those generally accepted and applied in ¿ Notice to Readers nancial statements are free of material misstatement. An audit ¿ Financial Instruments: Disclosure and Presentation ņ nancial statements. No. 36 ¿ INDEPENDENT AUDITORS' REPORT ed opinion based on our audit. nancial statements referred to above present fairly, in all material resp Ň ¿ ¿ nancial statements are intended only to present the ¿ nancial statements based on our audit. The ¿ ed unquali ¿ ) as of December 31, 2006, and the related statements of income, changes in s Ň nancial statements shall prevail. ¿ ed opinion on those ¿ Chang Hwa Bank has separately prepared consolidated The accompanying For the convenience of readers, the auditors' report and the accompanying We have audited the accompanying balance sheet of Chang Hwa Commercial Ban As mentioned in Note 3 to the financial statements, effective on January 1, In our opinion, the We conducted our audit in accordance with the Rules Governing the Audit of F ows in accordance with accounting principles and practices generally acc February 16, 2007 Regulations Governing the Preparationgenerally of accepted Financial in Reports theissued of Republic a Public modi of Ban China for the year ended December 31, amendments to other SFASs. for Financial Instruments Bank adopted the amended Statement of Financial Accounting Standards (SF À jurisdictions. The standards, procedures andthe practices Republic to of audit China. such Hwa Bank The Board of Directors andChang Shareholders Hwa Commercial Bank, Ltd. financial position of Changits Hwa cash Bank flows as forof of the Financial December year Reports 31, then of 2006,Governing ended, Public and Business in the Banks, Accounting conformity result requirements relevant withgenerally of to accepted the the in financial Regulations the Business accounting G Republic Accoun standar of China. English from the original Chinese versionversion prepared and and the used original in Chinese the version Republi or any difference in the interpre report and equity, and cash flowsstatements for are the the year responsibility thenopinion of on ended Chang these (all Hwa expressed Bank's in management. New Our Taiwan d res of Financial Institutions bythe Certified Republic Public of Accountants, China.reasonable and assurance auditing Those about rules whether and the includes standards examining, require on that astatements. we test plan basis, An and evidence audit pe made supporting also by the includes management, amounts assessing as and well theour as d audit accounting provides evaluating principles a the reasonable u overall basis for our opinion. Deccember 31, 2005, were auditedunquali by other auditors whose report dated Febr ၓ̼થຽᅙҖ۵Њѣࢨ̳Φ CHANG HWA COMMERCIAL BANK, LTD. ྤயๅܑ BALANCE SHEETS ϔ઼˝˩̣ѐ̈́˝˩αѐ˩˟͡ˬ˩˘͟ DECEMBER 31, 2006 AND 2005 (In Thousands of New Taiwan Dollars) 95.12.31 94.12.31 Percentage Dec. 31, 2006 Dec. 31, 2005 of Variation ྤய ASSETS Amountܛᗝ Amountܛᗝ តજѺ̶ͧĞƦğ னܛ̈́ࡗ༊னܛĞܢොαğ Cash and cash equivalents (Note 4) $ 44,126,907 $ 58,079,091 -24 ොα̈́˟˩̱ğ Due from Central Bank and call loans to banks (Notes 4 and 26) 116,366,938 117,014,169 -1ܢࣄᅙҖТຽĞٵδҖ̈́ٸх ā ̳πᆊࣃតજЕˢຫৈ̝ܛᏉྤயůஐᗝĞܢො˟̣̈́ğā Financial assets at fair value through profit or loss (Notes 2 and 5) 11,146,041 28,447,641 -61 ො˟ğ Bonds and securities purchased under resell agreements (Note 2) 8,559,731 6,580,178 30ܢԸྤĞדๅ̈́דаைܢ ̚ ᑕќഠีůஐᗝĞܢො˟ă̱̈́˛ğ Receivables, net (Notes 2, 6 and 7) 17,668,191 22,137,487 -20 ර ϔ ො˛̈́˟˩̱ğ Loans, net (Notes 7 and 26) 863,458,135 834,431,158 3ܢഠůஐᗝĞٸ෭ன̈́ ઼ ˝ ො˟̈́ˣğ Available-for-sale financial assets (Notes 2 and 8) 69,275,366 45,373,552 53ܢᏉྤயůஐᗝĞܛ౯ֻ ˩ ̣ ො˟̈́˝ğā Held-to-maturity financial assets (Notes 2 and 9) 167,548,463 183,300,157 -9ܢᏉྤயůஐᗝĞܛഇ͟זѐ ѣҌ ą ො˩ğ Investments under equity method, net (Note 10) 61,644 52,666 17ܢ۵ᝋԸྤůஐᗝĞ̝ڱѐ ଳᝋৈ ಡ Ꮙྤயůஐᗝ OTHER FINANCIAL ASSETS, NETܛ ͽјώᏊณ̝ܛᏉྤயĞܢො˟̈́˩˘ğā Financial assets carried at cost (Notes 2 and 11) 4,834,177 5,605,782 -14 ො˟̈́˩˟ğā Bond investments with no active market (Notes 2 and 12) 2,594,134 1,485,871 75ܢԸྤĞד߿ඛξಞ̝ๅ 110 Ꮙྤய Other miscellaneous financial assets 64,397 81,772 -21ܛ̦ี ᏉྤயůஐᗝЪࢍ Other financial assets, net 7,492,708 7,173,425 4ܛ (ො˩ˬğ PROPERTY AND EQUIPMENT (Note 13ܢؠྤயĞ ؠྤயࣧؕјώ Cost ˿гĞӣࢦҤᆧࣃğ Land 17,092,967 17,096,509 - ĞӣࢦҤᆧࣃğ Buildings 7,721,258 7,008,664 10ޙ̈́ޏٗ ፟ୠన౯ Machinery equipment 3,961,080 3,673,803 8 Ϲ఼̈́ྻᏮన౯ Transportation equipment 641,959 616,958 4 ̦ีన౯ Miscellaneous equipment 1,438,483 1,347,643 7 ১ྨᝋৈԼ։ Leasehold improvements 557,186 532,783 5 јώ̈́ࢦҤᆧࣃЪࢍ 31,412,933 30,276,360 4 ഴĈࢍԶᖞ Accumulated depreciation ( 6,570,409) ( 6,146,141) 7 24,842,524 24,130,219 3 ϏԆ̍̈́ࢎᔉ፟І Construction in progress and ordered machines 228,690 848,931 -73 ;ٗгഠ Prepayment for land and buildings - 45,825 -100 - ؠྤயஐᗝ Property and equipment, net 25,071,214 25,024,975 ԛྤயůஐᗝ INTANGIBLE ASSETS 113,864 65,920 73 ྤய OTHER ASSETS ො˩αğ Other miscellaneous assets (Note 14) 7,162,459 8,278,273 -13ܢᒉຽྤயĞܧ ො˟̈́˟˩αğ Deferred tax assets (Notes 2 and 24) 17,553,671 20,436,342 -14ܢᅍؼٙඁྤயĞ ྤāāயāāᓁāāࢍ TOTAL $1,355,605,332 $1,356,395,034 - ANNUAL REPORT 2006 111 - 0,000 - 48,094,756 - Percentage of Variation តજѺ̶ͧĞƦğ -- ಏҜĈາέ။Ζ̮ ܛᗝ 8,243,499 1 76,404,318 8 1,279,990,716 -1 94.12.31 $1,356,395,034 - Amount Dec. 31, 2005 48,517 13,523,833 -100 ܛᗝ 326,149 8,297,157 2,331,485 2,391,611 -3 11,377,055 ( 36,182,905)82,184,549 - 16,301,98740,772,769 12,794,440 38,747,08920,000,000 27 20,000,000 5 - 1,273,420,783 1,022,848,401 999,365,926 2 95.12.31 Amount Dec. 31, 2006 $ 1,355,605,332 $ 162,085,482 $184,164,623 -12 (Note 2) (Notes 2 and 5) ' EQUITY S' EQUITY (Note 15) (deficit) (Note 19) (Note 20) (Note 21) participating, and Common stock, $10 par value; Issuedon 4,809,475,600 2006 shares and both 2005. Preferred stock-type A, $10 par value;Cumulative, Non-participating, and issued 48,094,756 150,000,000 shares in 2005. Maturity date: Sep. 8, 2006. Preferred stock-type B, $10 par value; Non-cumulative, 14,000,000 14,00 - 1,500,000 -100 (Note 18) Additional paid-in capital in excess of par - 39,256,183 -100 Legal reserveUnappropriated earnings - 1,258,722 -100 (Notes 17 and 26) (Note 16) Capital surplus Capital stock Retained earnings (With Deloitte & Touche audit report dated February 16, 2007) LIABILITIES AND SHAREHOLDERS' EQUITY ̮ć ̮ć 1,40 issued 1,400,000,000 shares in 2006 and 2005. Total liabilities ۵ćຽ 10 10 ۵ Total shareholders' equity ̮ć˝˩ Funds borrowed from Central Bank and banksFinancial liabilities at fair value through profit or loss 384,585 405,645 -5 Bands payable Revaluation incrementsCumulative translation adjustmentsUnrealized gains or losses on financial instruments 339,059 8,047,530 262,032 8,215,530 29 -2 Payables Deposits Accrued pension liabilities Other financial liabilitiesOther liabilities 350,400 354,050 -1 Bonds and securities sold under repurchase agreements 10 Due to banks and Central Bank ۵ğ LIABILITIES SHAREHOLDERS' EQUITY TOTAL 150,000,000 4,809,475,600 ۵ 6,500,000,000 0,000,000 The accompanying notes are an integral part of the financial statements. ᎕ણΐĂ˝˩̣ѐ̈́˝˩α āѐ˩˟͡ˬ˩˘͟൴ҖӮࠎ ā ۵ώ໕ᆊܧā ఼۵۵ώĂՏ۵ࢬᗝ ഇ ˙পҾ۵۵ώĂՏ۵ࢬᗝזѐ˝͡ˣ̣͟˩˝ٺણΐĂ˝˩αѐ˩˟͡ˬ ā˩˘͟൴Җࠎ ā̏ܧạ̄ѐ̈́˝˩αѐ˩˟͡ˬ˩˘͟ āć൴ҖӮࠎ ϥপҾ۵۵ώĂՏ۵ࢬᗝ ā᎕ ᎕࠳ዶĞᓪğ ؠ࠳ዶ̳᎕ڱ གྷநˠĈౘஏҐ ົࢍგĈ഼ሗ ڟĈૺұܜְ ྤώ̳᎕ ܲ࠳ዶĞܢො˟˩˘ğ ۵ώĞᗝؠ ᝋৈڌๅ̈́۵ ᏉྤயϏ၁னຫৈܛ᎕ೱზአፋᇴ ౯ֻ ࢦҤᆧࣃ ᝋৈЪࢍڌ۵ ᝋৈีϫڌ۵ āāๅЪࢍ δҖ̈́ТຽᏉྤ ̳πᆊࣃតજЕˢຫৈ̝ܛᏉๅĞܢො˟̣̈́ğ ො˩ˣğܢĞדᏉๅܛ;ᑕ ᑕ;ഠีĞܢො˩̱ğ хഠ̈́๗ഠĞܢො˩˛̈́˟˩̱ğ ᑕࢍੜЃܛๅĞܢො˩˝ğ Ꮙๅ ๅܛ ො˟ğܢๅĞד෴аைๅܢ ๅ δҖ̈́ᅙҖТຽхഠĞܢො˩̣ğ ො˟˩ğܢᝋৈĞڌ۵ ࢍरְચٙϔ઼˝˩̱ѐ˟͡˩̱͟ߤ८ಡӘğົܫොܼώੑચಡܑ̝˘ొ̶Ą Ğኛણዦ๔ຽிܢ̝ܢޢ ᝋৈᓁࢍڌๅ̈́۵ ၓ̼થຽᅙҖ۵Њѣࢨ̳Φ CHANG HWA COMMERCIAL BANK, LTD. ຫāৈāܑ STATEMENTS OF INCOME ϔ઼˝˩̣ѐ̈́˝˩αѐ˘͡˘͟Ҍ˩˟͡ˬ˩˘͟ YEARS ENDED DECEMBER 31, 2006 AND 2005 (In Thousands of New Taiwan Dollars, Except Earnings (Loss) Per Share) ಏҜĈາέ။Ζ̮Ăଘ Տ۵࠳ዶࠎ̮ Percentage 95ѐޘ 2006 94ѐޘ 2005 of Variation Amountܛᗝ Amountܛᗝ តજѺ̶ͧĞƦğ ӀिќˢĞܢො˟ğ INTEREST INCOME (Note 2) $ 38,784,294 $ 32,776,811 18 ഴĈӀिϡĞܢො˟ğ INTEREST EXPENSES (Note 2) (20,565,118) (15,711,645) 31 Ӏिஐќৈ NET INTEREST INCOME 18,219,176 17,065,166 7 Ӏिͽγஐќৈ NET INCOME OTHER THAN INTEREST INCOME ͘ᜈஐќৈĞܢො˟˩˟ğ Fee income, net (Note 22) 2,680,387 2,574,937 4 Gains on financial assets and liabilities at fair value through ̚ Ğܢො˟ğ (44,509) (18,470) 141 ̳πᆊࣃតજЕˢຫৈ̝ܛᏉྤய̈́ๅຫৈ profit or loss (Note 2) ර ො˟ğ Realized gains on available-for-sale financial assets (Note 2) 423,807 188,100 125ܢᏉྤய̝̏၁னຫৈĞܛϔ ౯ֻ ઼ Ğܢො˟ğ Investment income recognized under the equity method ᄮЕ̝Ըྤຫৈ (Note 2) 42,765 37,655 14ڱଳϡᝋৈ ˝ ˩ Ҹೱຫৈ Foreign exchange gains, net 731,346 1,133,113 -35 ̣ ྤயഴຫຫεĞܢො˟ăˣă˩˘̈́˩αğ Loss on asset impairment (Notes 2, 8, 11 and 14) (257,837) (209,253) 23 ѐ ќаӑ̈́࿅ഇ Gain on collection of nonperforming loans 7,374,907 4,531,898 63 ą Ğܢො˟˩̱ğ Other miscellaneous net income (Note 26) 625,460 1,349,051 -54 Ӏिஐຫৈܧѐ ො˟ğ Other miscellaneous reserves (Note 2) (100,000) (9,892) 911ܢಡ Чี೩хĞ ஐќৈ GROSS INCOME 29,695,502 26,642,305 11 ො˟̈́˛ğ PROVISION FOR LOAN LOSSES (Notes 2 and 7) (4,525,824) (62,716,748) -93ܢഠӑϡĞٸ 112 ᒉຽϡ OPERATING EXPENSES ϡˠϡĞܢො˟˩ˬğ Personnel (Note 23) (7,099,749) (8,045,535) -12 Զᖞ̈́ᝊዚϡĞܢො˟˩ˬğ Depreciation (Note 23) (750,651) (681,148) 10 ຽચ̈́გநϡ Others (2,994,782) (3,141,438) -5 ᚶᜈᒉຽొܝඁ݈ஐӀĞຫğ INCOME (LOSS) BEFORE INCOME TAX 14,324,496 (47,942,564) - - ො˟˩αğ INCOME TAX (EXPENSE) BENEFIT (Note 24) (3,240,079) 11,426,810ܢٙඁĞϡğӀৈĞ NET INCOME (LOSS) BEFORE CUMULATIVE EFFECTS OF CHANGES ᚶᜈᒉຽొܝඁޢஐӀĞຫğ IN ACCOUNTING PRINCIPLES 11,084,417 (36,515,754) - CUMULATIVE EFFECTS OF CHANGES IN ACCOUNTING -- ොˬğ 292,638ܢĞഴੵٙඁϡ̝ஐᗝğĞ ົࢍࣧតજ̝᎕ᇆᜩᇴ PRINCIPLES (Note 3) ώഇຫৈ NET INCOME (LOSS) $ 11,377,055 $ (36,515,754) - 95ѐޘ 2006 94ѐޘ 2005 Pretax ඁ݈ After-tax ඁޢ Pretax ඁ݈ After-tax ඁޢ (ො˟˩̣ğ BASIC EARNINGS (LOSS) PER SHARE (Note 25ܢώՏ۵࠳ዶĞૄ Net income (loss) before cumulative effects of changes in ΐࢍົࢍࣧតજ̝᎕ᇆᜩᇴ݈৷ৈ $2.79 $2.12 $(10.04) $(7.67) accounting principles ົࢍࣧតજ̝᎕ᇆᜩᇴ Net cumulative effects of changes in accounting principles 0.06 0.06 - - ώഇຫৈ Net income (loss) $ 2.85 $2.18$ (10.04) $ (7.67) Pretax ඁ݈ After-tax ඁޢ Pretax ඁ݈ After-tax ඁޢ (ො˟˩̣ğ DILUTED EARNINGS (LOSS) PER SHARE (Note 25ܢංᛖՏ۵࠳ዶĞ Net income (loss) before cumulative effects of changes in ΐࢍົࢍࣧតજ̝᎕ᇆᜩᇴ݈৷ৈ $2.26 $1.74 $(10.04) $(7.67) accounting principles ົࢍࣧតજ̝᎕ᇆᜩᇴ Net cumulative effects of changes in accounting principles 0.05 0.05 - - ώഇຫৈ Net income (loss) $ 2.31 $1.79$ (10.04) $ (7.67) ޢܢ̝ܢොܼώੑચಡܑ̝˘ొ̶ĄThe accompanying notes are an integral part of the financial statements. (ࢍरְચٙϔ઼˝˩̱ѐ˟͡˩̱͟ߤ८ಡӘğ(With Deloitte & Touche audit report dated February 16, 2007ົܫĞኛણዦ๔ຽி གྷநˠĈౘஏҐ ົࢍგĈ഼ሗ ڟĈૺұܜְ ANNUAL REPORT 2006 113 448,141 $74,824,333 Ъࢍ Total 11,377,055 $82,184,549 (36,515,754) - - 2,032 76,404,318 Translation Cumulative ಏҜĈາέ။Ζ̮ Adjustments $ 339,059 ᎕ೱზአፋᇴ - - Instruments Loss on Financial Unrealized Gain or ᝋৈአፋ $ 326,149 ᏉથݡϏ၁னຫৈܛ - - Equity Adjustment Increments Revaluation Ϗ၁னࢦҤᆧࣃ $ 8,047,530 11,377,055 Unappropriated $11,377,055 (36,515,754) ᎕࠳ዶĞᓪğ Earnings (Deficit) - - ܲ࠳ዶ Retained Earnings Legal Reserve ؠ࠳ዶ̳᎕ڱ $- - - ྤώ̳᎕ $- Capital Surplus - - ᝋৈតજܑڌ۵ ------376,020 - - (376,020) - - - (366,000) - - (1,442,843) - - - - (5,114) - (35,796) ------(366,000) - (1,442,843) - - (5,114) (35,796) - 14,000,000 22,560,493 - - - - - 36,560,493 - - - - - 3,571,108 - - 3,571,108 ------(186,109) (186,109) পҾ۵ ၓ̼થຽᅙҖ۵Њѣࢨ̳Φ $14,000,000 Preferred Stock - - $48,094,756 $ 1,500,000 $16,695,690 $ 882,702 $ 2,558,622 $ 4,644,422 $ - $ ۵ώ (In Thousands of New Taiwan Dollars) Capital Stock CHANG HWA COMMERCIAL BANK, LTD. ఼۵ $48,094,756 YEARS ENDED DECEMBER 31, 2006 AND 2005 Common Stock ϔ઼˝˩̣ѐ̈́˝˩αѐ˘͡˘͟Ҍ˩˟͡ˬ˩˘͟ (With Deloitte & Touche audit report dated February 16, 2007) - (1,500,000) (4,500,000) - - - - - (6,000,000) ------326,149 - 326,149 ------77,027 77,027 - - (34,756,183) (1,258,722) 36,182,905 (168,000) - - - STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY 48,094,756 15,500,000 39,256,183 1,258,722 (36,182,905) 8,215,530 - 26 The accompanying notes are an integral part of the financial statements. གྷநˠĈౘஏҐ ົࢍგĈ഼ሗ ڟĈૺұܜְ ࣶ̍ࡓӀ Employee bonusesٸႾְ࿌౻ Stock dividends ൴ٸ۵ि̈́ࡓӀ Cash dividends ൴ܛனٸপҾ۵۵ि Dividends on preferred stock ൴ٸؠ࠳ዶ̳᎕ Legal reserve ൴ڱ೩Е to equity BALANCE, JANUARY 1, 2005 Appropriation of 2004 earnings Issuance of preferred stock - Type B for cash Reserve for land revaluation increment tax transferred Adjustment of exchange rate fluctuation Net loss in 2005 ˝˩αѐ˘͡˘͟ዶᗝ ᆧྤ൴ҖপҾ۵ܛ࠳ዶ̶੨ னޘѐˬ˩˝ ˿гᆧࣃඁඁதአࢫயϠ̝ྤώ̳᎕ ᎕ೱზአፋᇴ ˝˩αѐޘඁޢஐຫ assets BALANCE, DECEMBER 31, 2005 Redemption of matured preferred stock - Type A Unrealized gains or losses of available-for-sale financial Adjustment of exchange rate fluctuation Appropriation of 2005 loss Netincomein2006 ˝˩αѐ˩˟͡ˬ˩˘͟ዶᗝ ഇќаזপҾ۵ ᏉྤயϏ၁னຫৈ̝តજܛ౯ֻ ᎕ೱზአፋᇴ ᑓྃᓪຫ ˝˩̣ѐޘඁޢ৷ৈ BALANCE, DECEMBER 31, 2006 ˝˩̣ѐ˩˟͡ˬ˩˘͟ዶᗝ ࢍरְચٙϔ઼˝˩̱ѐ˟͡˩̱͟ߤ८ಡӘğົܫොܼώੑચಡܑ̝˘ొ̶Ą Ğኛણዦ๔ຽிܢ̝ܢޢ ၓ̼થຽᅙҖ۵Њѣࢨ̳Φ CHANG HWA COMMERCIAL BANK, LTD. னܛ߹ณܑ STATEMENTS OF CASH FLOWS ϔ઼˝˩̣ѐ̈́˝˩αѐ˘͡˘͟Ҍ˩˟͡ˬ˩˘͟ YEARS ENDED DECEMBER 31, 2006 AND 2005 (In Thousands of New Taiwan Dollars) ಏҜĈາέ။Ζ̮ ˝˩̣ѐޘ ˝˩αѐޘ 2006 2005 ᒉຽ߿જ̝னܛ߹ณ CASH FLOWS FROM OPERATING ACTIVITIES ώഇஐӀĞຫğ Net income (loss) $11,377,055 ($36,515,754) አፋีϫ ߹ณ̝ຫৈีϫ̈́አፋีϫ Gains or losses with no effect on cash flows and other adjustmentsܛᇆᜩன̙ ̚ ර Զᖞ̈́ᝊዚ Depreciation and amortization 750,651 681,148 ϔ ۵Ӏ Cash dividends from equity-method investees 33,786 24,248ܛᄮЕ̝జԸྤ̳Φனڱᝋৈ ઼ ˝ (ᄮЕ̝ԸྤӀৈ Investment income recognized under the equity method, net (42,765) (37,655ڱᝋৈ ˩ ̣ (ѐ ̶ؠ̈́ยཉྤயӀৈ Gain on disposal of property and equipment (234,639) (97,970 ą ѐ ഴຫຫε Losses on asset impairment 257,837 209,253 ಡ ഠӑϡ Provisions for loan losses 4,525,824 62,716,748ٸ Чี೩х Provisions for other losses 100,000 9,892 114 (ԸྤԶ໕ᆊᝊዚ Amortization of premium or discount on investment in bonds (1,808,688) (1,301,621דๅ ̶ԸྤӀৈ Gains on sale of financial assets (530,293) (576,009) - Ꮙથݡෞᆊຫε Loss on financial instruments valuation 139,298ܛ ᒉຽྤய̝Ğᆧΐğഴ͌ Net changes in operating assets ̳πᆊࣃតજЕˢຫৈ̝ܛᏉྤய Financial assets at fair value through profit or loss 17,459,871 4,895,595 ᑕќഠี Receivables 4,363,697 (3,139,315) (ᅍؼٙඁྤய Deferred income tax assets 2,882,671 (11,618,326 (ྤய Other assets 1,054,425 (294,454 ᒉຽๅ̝ᆧΐĞഴ͌ğ Net changes in operating liabilities ̳πᆊࣃតજЕˢຫৈ̝ܛᏉๅ Financial liabilities at fair value through profit or loss (13,772,885) (1,713,599) ᑕ;ഠี Payables 2,006,608 10,981,186 ᑕࢍੜЃܛๅ Accrued pension liabilities (60,125) 330,598 (Ꮙๅ Other financial liabilities (3,650) (54,195ܛ (ๅ Other liabilities 53,659 (138,070 ᒉຽ߿જ̝ஐனܛ߹ˢ Net cash provided by operating activities 28,552,337 24,361,700 ANNUAL REPORT 2006 115 8) 44 54) 48) ,429 ,769,234 238,718 2,835,034 (186,109) 22,165,981) 32,500,662 36,560,493 70,535,010 $22,165,981) 2005 (69,132,172) ˝˩αѐޘ $ 3,571,108 $ 240,589 $ 15,271,670 $ 58,079,091 - ಏҜĈາέ။Ζ̮ 31 547 2,081,867 77,027 388,244 647,231 ($22,165,981) 58,079,091 (1,110,180) 2006 (41,471,368) ˝˩̣ѐޘ $- $ 720,803 $ 44,126,907 $ 19,922,210 ments (1,979,552) 693,856 Net cash (used in) provided by financing activities Net cash used in investing activities (With Deloitte & Touche audit report dated February 16, 2007) Interest Income tax Reserve for land revaluation increment tax transferred to equity Decrease (increase) in due from Central Bank and(Increase) call decrease loans in to bonds banks and securities purchased underIncrease resell in agree loans (including delinquent loans)Increase in available-for-sale financial assetsProceeds of the sale of available-for-sale financial assetsIncrease in held-to-maturity financial assetsProceeds refunded from held-to-maturity financial assetsIncrease in financial assets carried at costProceeds $647,2 of the sale of financial assets carriedIncrease at in cost bond investments with no active marketDecrease in other financial assetsPurchase of property and equipmentProceeds of the sales of property and equipment 20,613,854 (33,547,203) 514,928,899 (41,759,087) (17,926,42 11 (499,177,205) 81 (24,220,3 (829,897,7 170,807 (1,146,750) (418) - - (903,652) 293,464 - (1,314,125) 855,622 Increase in deposits and remittancesDecrease in call loans from banks and CentralRedemption Bank of matured preferred stock - ACash dividends distributedPayment of bonus to directors, supervisors and employeesIssue of preferred stock - B (21,060) 23,482,475 (6,000,000) - (70,011) 26,073,870 (40,910) - - (1,808,843) (Decrease) increase in due to Central Bank and banks (22,079,142) 7,738,5 Increase in bonds and securities sold under repurchase agreements 3,507, SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid during the year FINANCIAL ACTIVITIES WITH NO EFFECT ON CASH FLOWS CASH FLOWS FROM INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES CASH AND CASH EQUIVALENTS, END OF YEAR EFFECT FROM EXCHANGE RATE FLUCTUATION NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTSCASH AND CASH EQUIVALENTS, BEGINNING OF YEAR (13,952,184) 25,578 The accompanying notes are an integral part of the financial statements. གྷநˠĈౘஏҐ ົࢍგĈ഼ሗ ڟĈૺұܜְ Ꮙྤ߿જ̝ஐனܛ߹Ğğˢ Ըྤ߿જ̝ஐனܛ߹ ώഇ͚;Ӏि ώഇ͚;ٙඁ ˿гᆧࣃඁඁதአࢫயϠ̝ྤώ̳᎕ ᒉຽྤய̦̈́ีྤயᆊഠܧᏉྤயഴ͌ ᔉཉؠྤய̈́ԛྤய ̶ؠྤயăܛԸྤ ד߿ඛξಞ̝ๅפ ᏉྤயᆊഠܛᏉྤய ̶ͽјώᏊณ̝ܛͽјώᏊณ̝פ ഇᔘώזᏉྤயܛഇ͟זᏉྤய ѣҌܛഇ͟זѣҌפ ᏉྤயᆊഠܛᏉྤய ̶౯ֻܛ౯ֻפ ഠĞӣ๊ќഠğᆧΐٸԸྤĞᆧΐğഴ͌ ෭ன̈́דаை̈́ๅܢ δҖ̈́ᅙҖТຽഴ͌Ğᆧΐğٸх Ⴞ࿌౻ࣶ̈́̍ࡓӀ ൴Җ˙পҾ۵ٸ۵Ӏ ൴ܛனٸഇќа ൴זхഠ̈́๗ഠᆧΐ δҖ̈́ТຽᏉྤഴ͌ ϥপҾ۵ δҖ̈́ᅙҖТຽхഠĞഴ͌ğᆧΐ ๅᆧΐד෴аๅĞைğܢ னܛ߹ณྤੈ̝ྃ·೬ᜨ ̙ᇆᜩனܛ߹ณ̝Ըྤ̈́Ꮙྤ߿જ Ըྤ߿જ̝னܛ߹ณ ࢍरְચٙϔ઼˝˩̱ѐ˟͡˩̱͟ߤ८ಡӘğົܫොܼώੑચಡܑ̝˘ొ̶Ą Ğኛણዦ๔ຽிܢ̝ܢޢ Ꮙྤ߿જ̝னܛ߹ณ ഇϐனܛ̈́ࡗ༊னܛዶᗝ ๗தᇆᜩᇴ ώഇனܛ̈́ࡗ༊னܛĞഴ͌ğᆧΐᇴ ഇܐனܛ̈́ࡗ༊னܛዶᗝ ۰γĂܼͽາέ။Ζ̮ࠎಏҜğځᗝੵΩ̟ොܛො Ğܢੑચಡܑ Notes To Financial Statements ĪIn Thousands of New Taiwan Dollars, Unless Stated Otherwiseī ࢭ 1. ORGANIZATION AND BUSINESS SCOPEڻࢭ̳Φڻă̳Φ˘ On March 1, 1947 Chang Hwa Commercial Bank, Ltd. ("Chang ၓ̼થຽᅙҖ۵Њѣࢨ̳ΦĞͽ˭ჍώҖğĂֶܼ Hwa Bank") was incorporated under Banking Law, Securities and ఢؠన΄ڱѣᙯ̈́ڱă̳ΦڱٽϹדăᙋڱԧ઼ᅙҖ Exchange Law and Taiwan Company Law, and was formerly known ϔ઼݈˛ѐ̝Ķঀёົۤၓ̼ᅙ઼݈˛ѐ̝Ķঀёົۤၓ̼ᅙ݈˛ѐ̝Ķঀёົۤၓ̼ᅙ as the Chang Hwa Commercial Bank, which was founded in 1904. Asٺϲ̝થຽᅙҖĄࣧ౹న Җķćˬ˩̱ѐˬ͡˘͟ϒёԼјϲၓ̼થຽᅙҖĂ֭ of December 31, 2006, Chang Hwa Bank's total capital of common ѐ˛͡ᒔགྷᑻొ८൴̳ΦેĄ˝˩̣ѐ˩˟͡ stocks amounted to $48,094,756 thousand and preferred stock - Type˝˩ˬٺ ᗝؠ۵ώࠎ65,000,000Ζ̮Ă၁ќ۵ώ఼۵ࠎ B amounted to $14,000,000 thousand. Chang Hwa Bank's capital of͟˘˩ˬ common stocks is listed and traded on the Taiwan Stock Exchange. 48,094,756Ζ̮̈́˙পҾ۵ࠎ14,000,000Ζ̮ĂώҖ൴ Chang Hwa Bank was established pursuant to the Banking Law ٙ˯ξ෴ĄٽϹדҖ఼̝۵Ӯдέ៉ᙋ to engage in: ;ٙఢؠથຽᅙҖ ( i ) all commercial banking operations allowed by the Banking LawڱٙఢؠથຽᅙҖᅙҖڱٙఢؠથຽᅙҖĞ˘ğᅙҖڱώҖགྷᒉ̝ຽચࠎĈĞ˘ğᅙҖ ͽགྷᒉ̝ຽચćĞ˟ğಡኛ̚δგ፟ᙯ८ࣞᏱநЧܫĞ˟ğಡኛ̚δგ፟ᙯ८ࣞᏱநЧܫಡኛ̚δგ፟ᙯ८ࣞᏱநЧܫ (ii) trust operations; ຽચćĞˬğ઼ᅫܛᏉຽચćĞαğనϲ઼γ̶ҖᏱநĞˬğ઼ᅫܛᏉຽચćĞαğనϲ઼γ̶ҖᏱந઼ᅫܛᏉຽચćĞαğనϲ઼γ̶ҖᏱநĞαğనϲ઼γ̶ҖᏱநనϲ઼γ̶ҖᏱந (iii) international banking operations; ८ࣞᏱந̝ᅙҖຽચć̈́Ğ̣ğགྷ̚δგ፟ᙯĞ̣ğགྷ̚δგ፟ᙯགྷ̚δგ፟ᙯ (iv) overseas branch operations authorized by the respectiveع༊г߆ foreign governments; and ८ࣞᏱந̝ѣᙯຽચĄ ̚ ( v ) other operations as authorized by the central authority. έ̚ξĂ֭д઼̰γЧࢦࢋгડనϲ̶ٺώҖᓁҖన ර Chang Hwa Bank's head office is located in Taichung City, Taiwan. As of December 31, 2006, the head office had Banking, and TrustܫᓁҖ̝ᒉຽొ̈́ٺనܢϔ ҖĂᖣͽଯᇃЧีຽચĄੵ ઼ ˝ γĂд઼̰నѣ̶Җ˘˛˘छĂ઼ᅫܛᏉຽચ̶Җ˘छ̈́ Departments. Chang Hwa Bank also had 171 domestic branches, གྷࡔથ̣छĂᒉຽፂᕇ࿆ҶБ࠷Ч̂ݱᗉĂд઼γన an international financing branch, five agents conducting securitiesדᙋ ˩ ̣ brokerage activities, six overseas branches, and a representative office ඈ̶Җ̈́̂ăࣖăࢶപ̈́າΐִڌѐ ѣ৸ࡗăࠃՉᒧă ą in China. ܑĄ̋ٿౙ ѐ As of December 31 2006 and 2005, Chang Hwa Bank had 6,094 ಡ ώҖ˝˩̣ѐ̈́˝˩αѐ˩˟͡ˬ˩˘ࣶ̍͟ˠᇴ̶ and 6,091 employees, respectively. Ҿࠎ6,094ˠ̈́6,091ˠĄ The Parent Company is Taishin Financial Holding Co., Ltd. As of Ꮙଠ۵۵Њѣࢨ̳ΦĂ˝˩̣ December 31, 2006, the Company held 25.13% capital stock of ChangܛώҖ̝ϓ̳Φࠎέາ 116 .ѐ˩˟͡ˬ˩˘͟ѣώҖ۵ᝋ25.13%Ą Hwa Bank 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ځࢦࢋົࢍ߆ඉ̝ຉᓁᄲځăࢦࢋົࢍ߆ඉ̝ຉᓁᄲ˟ Chang Hwa Bank's financial statements have been prepared ώੑચಡֶܑܼ̳ฟ൴ҖᅙҖੑચಡӘበᄦă in conformity with the Regulations Governing the Preparation of ăથຽົࢍந̈́˘ਠ̳ᄮົࢍࣧበ Financial Reports by Public Banks, requirements of the Businessڱથຽົࢍ ӑ Accounting Law and Guidelines Governing Business Accountingٯ౯ٺࣧበᄦੑચಡܑॡĂώҖ၆̈́΄ڱᄦĄֶ˯ ăؠྤயԶᖞăྤயഴຫ̈́ܲᙋయЇ౯ඈ̝೩ЕĂ relevant to financial accounting standards, and accounting principles generally accepted in the Republic of China. In preparing financial ˭ڶᗝĂЯҤࢍ఼૱ܼд̙ቁؠଐܛυืֹϡЪந̝Ҥࢍ statements in conformity with these regulations, guidelines and ѣٙमளĄڍүј̝ҿᕝĂЯѩΞਕᄃֽ၁ᅫඕ principles, Chang Hwa Bank is required to make certain estimates ώᅙҖࢦࢋົࢍ߆ඉт˭Ĉ and assumptions, which could affect the allowance for bad debt, ੑચಡܑຉበࣧ depreciation of property and equipment, asset impairment and reserves for loss or guarantees, etc. Actual results could differ from ώੑચಡܑΒ߁ώҖ઼̰γᓁă̶Җ઼̈́ᅫܛᏉຽ these estimates. Ꮙຽચ̶Җมܛચ̶Җඈ̝ϫĄ઼̰γᓁ̶Җ઼ٕᅫ For the convenience of readers, the accompanying financial ຉበੑચ statements have been translated into English from the originalٺӮٽќ͚Ϲొֽ̰̈́ـăᓑҖֽـࢦ̰̂ొ̝ ಡܑॡ̟ͽዚੵĄ Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese ᏉથݡܛπᆊࣃតજЕˢຫৈ̝̳ version or any difference in the interpretation of the two versions, the .Chinese-language financial statements shall prevail ܛϫ۞̝ٽᏉથݡΒ߁ϹܛπᆊࣃតજЕˢຫৈ̝̳ ࣧؕᄮЕॡĂؠͽ̳πᆊࣃ The significant accounting policies of Chang Hwa Bank areٺᏉๅĂͽ̈́ܛᏉྤயٕ :ᏉๅĄ summarized as followsܛᏉྤயٕܛᏊณͷ̳πᆊࣃតજᄮЕࠎຫৈ̝ Basis of Financial Statements ෞᆊॡĂͽ̳πᆊޢࣧؕᄮЕॡĂܼͽ̳πᆊࣃᏊณĂᜈ The financial statements include the accounts of the head office, ᔉ෴ٽࣃᏊณͷ̳πᆊࣃតજᄮЕࠎ༊ഇຫৈĄֶၚּϹ all domestic and overseas branches, offices and the international ࢍநົ͟ٽৈጴᙋଳϹצᏉྤயॡĂੵ۵ைăܛٕ financial branch. All major intra-office account balances and .γĂዶ࠰ଳϡϹ౷͟ົࢍநĄ transactions have been eliminated ANNUAL REPORT 2006 117 t s e n d is is ts, ts, he he ue ue rol rol ses ses ent ent cial ent. ent. rice rice and and the the ting ting rofit rofit sing sing ates. ates. ates. ates. ition ome, ome, r the ket is ment. ment. s. s. ruments ruments sitive sitive fair abilities. ognition at Cash Cash dividends are recognized as income when dividends are If there is an evidence of impairment impairment, the loss, Financial assets and liabilities designated upon initial recogn assets and liabilities designated Financial Bonds or securities purchased under resell agreement are Available-for-sale financial assets are recognized at their Derivatives Derivatives not qualified for hedge accounting will be classified The basis for fair for value: publicly-traded securities is clo These These instruments include (a) trading-purpose financial assets impairment loss of equity instruments is recognized directly in equity; the recovery of impairment loss of debt if investments, declared. declared. Stock dividends are not recognized as investment inc but only recorded as an increase in shares and cost per share i recalculated. Interests recognized under interest method resul from amortization of difference between cost and maturity amoun income. current to or charged credited are of debt-instrument difference between carrying amount and estimated recoverable is amount, recognized. In a subsequent the period, recovery of recovery can be objectively related to an event occurring after loss was is recognized, reversed and the amount of the reversal included in net income or loss for the period. for or loss included in net income purpose of eliminating major differences caused by inconsistent accounting process. In addition, a portfolio of financial asse liabilities or its component which are managed by the risk cont and investment policy of the company is designated as financial all other financial asset is used for accounting Settlement date on balance sheet date on web-site of Grand Cathay Securities for Corporation; financial assets not actively traded in the mar techniques. using valuation by fair value estimated at fair value through profit and loss includes (a) compound finan instruments; (b) financial assets or liabilities which have bee designated to record at fair value upon initial fo recognition, loss. or profit through fair value at instruments under Specific Agreements Bonds or Securities Purchased/Sold recorded at purchase price and are accounted as financing transactions. Bonds or securities sold under repurchase agreem are recorded at sale Interest price. revenues and expenses are on accrual basis. recorded Assets Financial Available-for-Sale fair value plus transaction costs and are measured at fair valu subsequent to the initial with recognition, changes in fair val recognized as separate component of equity. stockholders’ If t financial assets are the derecognized, accumulated gains or los previously recognized in equity are recognized in income statem A regular way purchase or sale of financial assets is recognize and derecognized using trade date The accounting. same method applies for purchases and sales of stocks and beneficial certific price price on balance sheet date; for open-end mutual funds is net asset value on balance sheet for date; bonds is the reference p as trading financial assets or liabilities. Derivatives with po financial li otherwise, classified as financial assets, are values Financial Instruments at Fair Value through Profit or Loss Profit through Value Fair at Instruments Financial (b) financial assets designated or upon liabilities; initial rec are measured initially and subsequently at fair value through p fair value through profit or These loss. kinds of financial inst or loss and changes in fair values are reported in income state Cash dividends received are recognized as current A income. regular way purchase or sale of financial assets is recognized derecognized using trade date The accounting. same method applies for purchases and sales of stocks and beneficial certific Settlement date accounting is used for all other financial asset is used for accounting Settlement date ᏉྤயĞ෴ˢܛഠăᑕќഠี̈́ٸಶ෭னܼ̈́ ٸᛳܧഠี˭Ăٸ෭ன̈́ٺഠᖼЕ๊̝ќഠีЕٸᏉႾ༛გந؎ࣶົᅙҖԊĶᅙҖྤயෞ Ϥܛᜈഇม ֶҖ߆ੰޢᙋፂĂᄮЕഴຫຫεĄࡶ៍މՙᛉ͟ᄮЕќˢĂ۵ை۵ ࡶѣഴຫ̝ົڌੵिٕ͟۵ٺ۵ӀܛࣧؕᄮЕॡĂͽ̳πᆊࣃᏊณĂ னٺᏉྤயܛа୧ ౯ֻܢדๅ̈́דԸྤܼଂְைדๅ̈́דаைܢ ᏉๅܼܛᏉྤயٕܛயๅܑ̝͟ ؠ̳πᆊࣃតજЕˢຫৈ̝ྤܼדϫ۞ ̳πᆊࣃ̝ૄᖂĈ˯ξĞᕢğᙋٽࢉϠّથݡϏਕЪᔖᐍົࢍ۰Ă̶ᙷࠎϹ ӑ̈́ܲᙋయЇ౯Ąٯќа̝ࢲᐍ̈́БវๅᝋЪ̝ሕдࢲᐍෞҤΞਕຫ εĂ೩Е౯ڱӑ̈́ܲᙋయЇ౯ ๗ഠ๊̈́ќഠีğĂၱЧีܲᙋዶᗝĂ̶Ҿಶপؠๅ ᝋٯᏉྤயĄ ౯ܛٺϡΙᖼЕొ̶ğЕܫ̈́ ᐺഇ҃Ϗᒔᐺͷಡགྷְົ ८ࣞ۰ĂాТ̏ҤЕ̝ᑕќӀिᖼЕ๊ќഠีĄ ഠᖼЕ๊̝ќഠีĞтϤܲᙋăٚҸăᑕќٚᔉഠبഠี̏ܫഠٕٸ ķఢؠĂڱഠ๊ќഠӑநᏱٸ൴Ϡְ̝ІѣᙯĂ̟ͽਫ਼ᖼ֭ᄮЕࠎ ༊ഇຫৈĄ ๊ќഠี Ҥຫε౯೩Ё́࿈ഇޢពᄃᄮЕഴຫځ ᗝࡶܛᝋৈአፋีϫć౯ֻๅચથݡ̝ഴຫഴ͌ڌᗝᄮЕࠎ ۵ܛᗝഴ͌Ă౯ֻᝋৈથݡ̝ഴຫഴ͌ܛᝊዚ̝ӀिĂᄮЕ ࠎ༊ഇຫৈĄ ഴຫڱᗝม̝मᗝĂଳϡӀिܛഇזᗝᄃܛ ࢍந γĂዶ࠰ଳϡϹ౷͟ົࢍநĄ Ӏ̙ЕࠎԸྤќৈĂ่ො۵ᇴᆧΐĄๅચથݡࣧؕᄮЕົ͟ٽৈጴᙋଳϹצᏉྤயॡĂੵ۵ைăܛᔉ෴ ٕٽᏉྤயੵЕॡĂЕˢ༊ഇຫৈĄֶၚּϹܛٺᝋৈአፋีϫĂ᎕̝Ӏৈٕ ຫεڌᜈෞᆊͽ̳πᆊࣃᏊ ณĂͷᆊࣃតજЕࠎ۵ޢјώćٽٕ൴Җ̝ϹפᏉྤய ֭ΐࢍܛᗝĄ࠹ᙯӀिќˢٕ͚ ᝋయ൴ϠૄᖂᄮЕĄ ౯ֻܛ̝פ၆͘၁ᅫٽॡĂШϹ ٽ෴а୧ІϹܢדๅ̈́דๅܼଂְைדๅ̈́ד෴аைܢ ćٽᗝĂෛࠎᏉྤϹܛ̝;၆͘၁ᅫ͚ٽॡĂШϹٽԸྤ ІϹדๅ̈́דைٽ୧І̝Ϲܢ ᏉๅٕјĂϺؠ ͽ̳πᆊࣃᏊณĄܛᏉྤயăܛࣧؕᄮЕॡؠ̳ πᆊࣃតજЕˢຫৈĄΩֶፂώҖࢲᐍგந߆ඉ̈́Ըྤඉ ரВТგந̝˘ٺᏉๅܛᏉྤயٕܛҤࢍ ̳πᆊࣃĄ ЪથݡĂͽ̈́ࠎঐੵٕࢦ̂ഴ͌ົࢍ̙˘ॡĂЧี ົࢍ̙˘̝ڱᏉથݡĂͽෞᆊ͞ܛᕢᕧ෴͕̚ྤயๅ ܑ̝͟ણ҂ᆊć߿ඛξಞ̝דˠ̚රϔ઼ᙋڱੑဥܼדৈጴᙋܼྤயๅܑ̝͟ஐྤயᆊ ࣃĂๅצܛݭૄٸᏉๅĄ ќሹᆊĂฟܛᏉྤ யć̳πᆊࣃࠎࣃॡĂЕࠎܛᏉๅĄ̳πᆊࣃࠎϒࣃॡĂЕࠎܛᏉྤயٕܛ̝ Delinquent Loans ̈́ڶېੑચ̝͗ܫќа̝ࢲᐍĂܼಶڱপؠๅᝋ ώिᐺ;ߏӎѣؼ႖ଐԛඈĂ֭ෞҤፉܲݡᆊࣃĂણĶ Overdue loans or other credit items including their accrued ഠ๊ќഠӑநᏱ interest receivables are reclassified to delinquent loans whenٸᅙҖྤயෞҤຫε౯೩Ё́࿈ഇ approved by the board of directors according to the Regulations of ķఢؠĂֶΞќа̶ّᙷĂֶ֭ఢؠͧத೩хĄ˯ੑڱ the Procedures for Banking Institutions to Evaluate Assets and Deal யĂБᗝ೩Еຫεćќаѣྤܫ߆ొఢؠĂќа୕̝ with Past-Due / Non-Performing Loans and Bad Debts. ˩˝ӧᙱ̝ొ̶ĂҌֶ͌ዶᗝ̝Ѻ̶̝̣˩೩ЕຫεĄҋ The delinquent loans which are reclassified from loans ຍăΞ୕ќаăќаӧᙱ̈́ќаڦαѐ˛࣒͡ϒࠎᑕ̟ are reported under loans, while others are reported as other ୕̝̙։ܫྤயĂ̶Ҿͽๅᝋዶᗝ̝Ѻ̶̝˟ăѺ̶ miscellaneous financial assets. ӑ̈́ܲᙋ Allowance for Loan Losses and Reserve for GuaranteesٯăѺ̶̝̣˩̈́ዶᗝБొ̝ЪࢍĂࠎ౯˩̝ Allowances for bad debts and losses on guarantees are إయЇ౯̝Ҳ೩ЕᇾĄଘѩี࣒ϒ၆ώҖੑચಡܑ ࢦ̂ᇆᜩĄ estimated based on the uncollectibility of specific loans, receivables, ഠෞҤ delinquent loans, other financial assets and guarantees as well as theٸώҖ၆ӑ̝՞ዚĂܼಶ๊ќഠี̈́࿈ഇ .ͽ՞ዚĄ uncollectibility of overall credit portfolio referred to above̟ޢќаΞਕّ̈́ፉܲݡᆊࣃĂགྷְົ८ࣞ Chang Hwa Bank assesses the collectibility of credit portfolio Ꮙྤயܛഇ͟זѣҌ based on the borrowers'/clients' delinquent status and financial јώᏊ condition in accordance with regulations issued by the Ministryޢᝊዚ̝ڱᏉྤயܼͽӀिܛഇ͟זѣҌ ,ٕ൴Җ̝Ϲ of Finance ("MOF"). These rules state that, if loans, receivablesפณĄࣧؕᄮЕॡĂͽ̳πᆊࣃᏊณ֭ΐࢍ ,ੵЕăᆊࣃഴຫٕᝊዚॡᄮЕຫৈĄֶၚּϹ delinquent loans, and other financial assets are deemed uncollectibleٺјώĂٽ full provisions should be made and recognized as current expense. If ົ͟ٽৈጴᙋଳϹצᏉྤயॡĂੵ۵ைăܛᔉ෴ٕٽ ࢍநγĂዶ࠰ଳϡϹ౷͟ົࢍநĄ the possibility of collection is deemed low, provisions of at least 50% ̚ ර ࡶѣഴຫ̝މ៍ᙋፂĂᄮЕഴຫຫεĄࡶᜈޢഇม of the credit should be made and the loss should be recognized as ϔ ൴Ϡְ̝ІѣᙯĂ an expense currently. The regulations were revised in July 2005 toޢពᄃᄮЕഴຫځᗝഴ͌Ăͷܛഴຫ ઼ ˝ reclassify deteriorating loans into "special mention," "substandard," ٺᗝ̂ܛͽਫ਼ᖼ֭ᄮЕࠎ༊ഇຫৈĂྍਫ਼ᖼֹ̙ϡࢬ̟ ˩ "doubtful," and "uncollectible" categories. Provisions should be made јώĄޢᝊዚ̝˭ڶϏᄮЕഴຫଐ ̣ ѐ at 2%, 10%, 50%, and 100%, respectively, for each loan category, as .۵ᝋԸྤ the minimum standard of the allowance for bad loans and guarantee̝ڱą ଳᝋৈ ѐ ಡ ώҖ၆జԸྤ̳Φѣܑՙᝋ۵Њ྿Ѻ̶̝˟˩ͽ˯ The effect of the revision to the financial report of Chang Hwa Bank is .۵ᝋٕࢵѨ immaterialפෞᆊĄڱѣࢦ̂ᇆᜩ˧۰Ăଳϡᝋৈٕ ॡĂԸྤјώᄃ۵ᝋஐࣃม̝मᗝẶѐπ Unrecoverable portions of delinquent loans are written off uponڱଳϡᝋৈ 118 ӮᝊዚĄଘҋ˝˩̣ѐ˘͡˘͟Ăֶາ࣒ࢎੑચົࢍ approval of board of directors. Recovery of written off delinquent loans is recognized as recovery of allowance for loan losses. நĂԸྤјژ̳ಡ̝ఢؠĂԼࠎАԸྤјώ̟ͽ̶ Held-to-Maturity Financial Assets ώ࿅ΞᏰᄮஐྤய̳πᆊࣃొ̶ЕࠎથĄથ̙̟ᝊ Held-to-maturity financial assets are carried at their amortized ዚĂҭՏѐؠഇซҖഴຫീྏĂͷ൴ϠপؠְีٕᒖဩԼ cost. Held-to-maturity financial assets are initially recorded at cost តពϯથΞਕ൴ϠഴຫॡĂϺซҖഴຫീྏĄ plus any other costs necessary for the transaction. Gains or losses are ,Ꮙྤய recognized when held-to-maturity financial assets are derecognizedܛ (˘)ͽјώᏊณ̝ܛᏉྤய impaired or amortized. A regular way purchase or sale of held-to- ΞያᏊณ̳πᆊࣃ maturity financial assets is recognized and derecognized usingڱᏉྤயܼܛͽјώᏊณ̝ settlement date accounting. The same method applies for purchases ᝋৈથݡԸྤĂΒ߁Ϗ˯ξĞᕢğ۵ை̈́Ꮈᕢ۵ை̝ and sales of stocks and beneficial certificates; settlement date ᙋፂĂ៍މඈĂͽࣧؕᄮЕ̝јώᏊณĄࡶѣഴຫ̝ accounting is used for all other financial assets. ᄮЕഴຫຫεĂѩഴຫܛᗝ̙̟ਫ਼ᖼĄ If there is an objective evidence of impairment, impairment loss, Ըྤד߿ඛξಞ̝ๅ(˟) the difference between carrying amount and estimated recoverable Ըྤܼ߿ඛξಞ̝̳ฟಡ amount, is recorded. If the recovery of impairment loss of debtד߿ඛξಞ̝ๅ ԸྤĂͽᝊዚ instrument is objectively related to an event occurring after theדᗝ̝ๅܛפᆊĂͷؠٕΞՙؠќ Ꮙྤய࠹ impairment loss was recognized, the impairment loss can be reversedܛഇ͟זјώᏊณĂົࢍநᄃѣҌޢ Ą and the amount of the reversal is included in net income or loss forטࢨצҬĂଘ̶ॡᕇ̙ the period. However, the reversal should not result in a carrying ٽϹ̝̼דᏉྤயᙋܛ amount that exceeds what amortized cost would have been, had the ܫ୧ּĂଳҖপঅϫ۞̼דᏉྤயᙋܛώҖֶܼ impairment not been recognized, at the date of reversal. ொᖼܫഠๅᝋ̈́࠹ᙯᝋӀཌྷચޏёĂώҖొ̶ٗ͞ Investments under Equity Method Ă֭๒ะٙ Investments in companies in which ownership interest withדৈᙋצ፟ၹፂͽ൴Җצ፟ၹĂϤצ̟ ഠ voting rights is 20% or more or in which Chang Hwa Banks hasٸߛၹ˭ĂώҖ̏ٙொᖼٽϹ;ώҖĄдѩϹܛྤ ᝋĂੵࠎ significant influence over the investee are valued under the equityטഠЪࡗᝋӀ̝ଠٸৈᝋ̟෴֭͞ಉεྍצ̝ ّኳЕ౯ֻ method. At the date of acquiring equity investment or at initialֶדৈᙋצϡᆧૻ̝҃ܲѨึҜܫ ഠ̚ੵЕĂ֭ТॡᄮЕຫৈĄ adoption of equity method, the difference between cost and fairٸγĂዶӮҋ ANNUAL REPORT 2006 119 s s y nt pt pt ds on on of of om om for- ent. ent. test test and and heir -line -line rate rate such such s are t, the t, ssets ssets w on uired uired ate ate of edited edited except except urpose ver ver the against lities of osses. der such d. Investments Investments in bonds which are not actively traded in Financial Financial assets carried at cost are investments in equity Property and equipment are recorded at depreciated cost. Except Except the retained subordinated beneficiary securities referred Because there is no market price for the sold asset and the According According to the Statue for Financial Asset Securitization, are are similar to those for held-to-maturity financial exce assets, is there no restriction on the t disposal of these bonds before maturity. market but with fixed or determinable payments are recorded at this kind for of bon treatments accounting The amortized cost. instruments, including instruments, unlisted stocks and TIGER whose stocks, fair value cannot be reliably measured and are recognized at If cost initially. there is an objective evidence of impairmen impairment loss is recorded and cannot be reversed thereafter. be reversed and cannot impairment loss is recorded (b) with no active market Bond investments (a) carried assets cost at Financial to above, to other above, subordinated beneficiary securities invested by Property and Equipment Improvements which can extend the useful lives of assets are capitalized; otherwise they are expensed When currently. asset retired or their sold, costs and related accumulated depreciati future cash flows. future Chang Hwa Bank are classed as Bond Investments with no Active Market. Interest income is recognized when interest received fr trustee The instructions. value of the subordinated beneficiary securities is evaluated at the present valued of future cash flo loss will be recognized evaluation The sheet date. the balance will not be recognize if any, gain, Evaluation income. interest are removed from the accounts. Any resulting gain (loss) is cr (charged) to other gains and losses other than interest income (expense). resulting gains or losses are recognized in the net income or l in the net income recognized gains or losses are resulting and discount rate of related risks to project the present value sale financial issued assets, for the purpose of credit enhancem transferred Therefore, financial assets are derecognized and an retained fair right, value is assessed by making the best estim loss rate on the creditor’s advanced right, principal repayment for for subordinated beneficiary recorded securities, as available- owned owned by original institution can be to a transferred specific p trust for issuing beneficiary certificates and funds raised from issuance should Un be to transferred the original institution. controls structure, over contractual rights of such financial a are transferred to the buyers of the beneficiary certificates, Financial Asset Securitization Asset Financial mortgage credit loans, cards receivable and their related right periodically and when specific occasions or changes in environme occurred. have impairment of goodwill might that reveal Assets Other Financial value value of investment is amortized in five years by using straight according method. to However, the amended 25 No. SFAS "Busines the investee at the date of investment is recorded as goodwill should not be amortized. Goodwill is subject to an impairment Combinations Combinations - Accounting Treatment for Merger under Purchase Method," from January the 2006, costs 1, of investments are req and to be any excess of analyzed, the cost of the acquisition o interest in the fair value of the identifiable assets and liabi Ζ̮Ą Ζ̮Ą 62,831 1,196,248 צགྷࡔຽચ೩Е̝ຫε౯Ă͡ಶד୧ּķҋ˝˩α ܼᏱநᙋܛĶ౻̍ੜЃ̝ڱ ᛳቁؠ೩ᇥੜЃᏱܼڱķఢؠ̝ቁؠග;ੜЃᏱڱᄮЕćᛳ ώҖֶĶ౻જૄڍჟზඕܼܛੜЃ̝ڱᆊॾˢĂഇϐ֭ෞҤ̳πᆊ ܼྖ྅ཉă˧̈́ྖቢྮඈẶֶѐଳπӮ ᛳቁؠග;ੜЃᏱצፉܲݡֶܼٚצᗝᏊณࢬᆊ ؠྤய̈́১ྤய̝ԶᖞܼјώĂણ੩Җ߆ੰ ٚܛјώˢĄྤώ͚̈́ќ ؠྤய̈́১ྤயͽ࠹ᙯΞаќפৈጴᙋγĂዶώҖԸྤ̝Ѩึ ؠྤய̈́১ྤயצྤய̈́ܲᝋӀ֭ξಞಡᆊઇࠎ̳πᆊ ੵ˯ฟώҖ̝ܲٺϤ ᗝ੩̟ᆧഴĄܛ͘ᜈќˢ೩ЕѺ̶̝˟Ăഇϐ֭ ຫε၁ᅫ൴Ϡ̝דјώࠎ ෴ѣᆊᙋܛੜЃ̝ڱᄮЕቁؠ೩ᇥੜЃᏱޘ͗ĄώҖ˝˩̣ ѐܛ೩ᘳ̍ྤ̶৺ܑ̝ ͡೩ᘳ̍ྤ೩ᇥѺ̶̝̱Ҍ࣎ˠੜЃ͡ܛ୧ּ̝ࣶ̍ ҋ˝˩αѐ˛͡˘ֶ͟౻̍ੜЃܛዋ ϡྍ୧ּ݈̝̍үѐྤĄᏴፄዋϡ౻̍ੜЃ֭ܲޘטܛఢؠĂٕዋϡྍ୧ּ̝ੜЃܛķ ѣᙯ̝ੜЃڱ͗ዶᗝࠎ ѐ˛͡˘͟߉ҖĂ౻̍ᏴፄᚶᜈዋϡĶ౻જૄܛԊܲგྻϡϠिĄ˝˩̣ѐ ˩˟͡ˬ˩˘͟ੜЃ౯ܫδ̚ٸႾ༛؎ࣶົЩཌྷх ܛĂ֭ͽ౻̍ੜЃ౯ܛᇴᗝᄮЕࠎ༊ഇϡĄ Տ͡ᓟྤᓁᗝ೩ᇥ౻̍ੜЃ౯ܛચ̝ഇมĂ ᑕ೩ᇥ̝ੜЃૄڇࣶ̍೩ֻٺĂܼܛੜЃ̝ڱቁؠ೩ᇥੜЃᏱ ܛᝊĄ ੜЃ̶ڱ ஐ̳πᆊࣃ̝मᗝĂЕࠎഴຫຫεĄ ᅍؼϡٺፉܲݡ ࣃĂјώצࢍზ೩ЕĄ ٚڱࢬ ᆊࣃĄ ο̝Ķؠྤயϡѐᇴܑķఢؠ̝ѐࢨٕ১ྨྤய১ ྨഇมĂଳπӮ̝ޢĂഴੵᑕ೩ЕԶᖞ˭ڶࢬᆊࣃĂ̙࿅ྍีྤ யдϏᄮЕഴຫຫε̝ଐ̝ޢഴຫຫεਫ਼ᖼٺᗝᆧΐॡĂഴຫຫε̝ਫ਼ᖼᄮЕࠎӀৈĂଘ ؠྤயܛࡶؠྤ யΞаќޢӀिஐຫৈĄ ࣃѣࢦ̂ഴຫॡĂಶഴຫొ̶ᄮЕຫεĄܧய̝ϡѐᇴࠎĄಡᆿٕ ̶ॡ՞ᖼѣᙯЕјώ̈́ࢍԶᖞࡊϫĂ֭࠹ᙯຫৈ Еࠎ༊ഇྤܜ߹ณԶனࣃ̟ͽෞᆊĂٙயϠ ̝ෞᆊຫεአፋഴ͌ӀिќˢĂӀৈ̙̟ᄮЕĄ ؠྤய̈́১ྤய ৈ͚̝ထ̶ĂͽਕӎؼܛӀिॡĂᄮЕࠎӀिќˢĂྤயๅ ֶܑ͟ፂࢍ̝Ϗֽனפ፟ၹќצԸ ྤĂҋדৈጴᙋĂЯ̳ฟξಞĂ߇Е߿ඛξಞ̝ๅצ߹ณ̝ԶனࣃĂઇࠎҤࢍ̳πᆊࣃ̝ૄ ᖂĄ Ҝܛϡຫεதăࢍ೩݈ᔘ ഠத̈́ѣᙯࢲᐍ࠹༊̝Զனதඈࢋనָ̝ҤࢍĂෞ ҤϏֽࢍனܫྍֱๅᝋٺࣃĂ߇ώҖॲፂ၆ ຍγຫε౯ ࿁ࡗຫε౯ An impairment loss is recognized when future recoverable .෴ѣᆊᙋ values of property and equipment are less than their carrying valuesצથგநఢ̝ఢؠĂ͡ಶדᙋֶܼ ᗝ೩Е༱̶̝ᕇ˟ˣĂࡶ᎕̏྿˟ᆆ̮۰Ă The loss is reversed and a gain is recognized when future recoverableܛјϹד ٙ൴Ϡ̝ຫ values of these property and equipment recover afterward. Theד෴ѣᆊᙋצҺᚶᜈ೩Еćϡੵᑓྃ ഇఱԊ८ࣞγĂ̙ reversed book value should be less than the book value if noדᏉႾ༛გந؎ࣶົᙋܛεٕགྷҖ߆ੰ .ֹϡ̝Ą impairment has happened Depreciation is calculated using the straight-line method over ෴ຫε౯ useful lives based on guidelines prescribed by the government, and .Ӏ leasehold improvements are amortized over the lease termsדથგநఢ̝ఢؠĂҋҖ෴ѣᆊᙋדᙋֶܼ ৈᗝ࿅ຫεᗝॡĂ͡ಶ࿅ొ̶೩ЕѺ̶̝˩Ăઇࠎ Collateral and Residuals Taken Over ஐຫε͡ Collateral and residuals taken over are recorded at cost, andד၁ᅫ൴ϠҋҖ෴ѣᆊᙋٺ෴ຫε౯Ă֭ Њ̟ͽ՞аćଘࡶ᎕೩Е̏྿າέ။˟ᆆ̮۰ĂҺᚶ stated at the lower of cost or fair market value on the balance sheet ᜈ೩ЕĄ date. Deferred Charges ีְٽγ။Ϲ Deferred charges represent the installation costs of telephone ๗͟ٽĂϹٽᏉથݡ̝γ။ࠎૄᖂ̝ϹܛࢉϠّܧ and electricity, etc. and are amortized on a straight-line basis over a ᗝˢĂඕॡٙயϠ̝ҸೱमᗝЕࠎ༊ܛதԶზາέ။ period of five years. ഇຫৈĄഇϐγ။ྤய̈́ๅྤயๅܑ͟๗த̟ͽአ Pensions ፋĂЯአፋ҃யϠ̝ҸೱमᗝϺЕࠎ༊ഇຫৈĄ Chang Hwa Bank has two types of pension plans: defined benefit Ӏिќˢ̈́͘ᜈќˢ̝ᄮЕ and defined contribution. Under the defined benefit plan, pension Ϗᔇ cost is recognized on the basis of actuarial calculations. Under theإˢĂ̙ࢍˢܛഠ߹఼дγ̝ώٸ෭ன̈́ ̚ ර defined contribution plan, pension cost is recognized on the basis of ϔ ̝ќৈĂӀिќˢᝋయ൴ϠૄᖂᄮЕĄ࿈ഇๅᝋགྷෞҤ ’ᑕќӀिӈ Chang Hwa Bank’s required monthly contributions to the employees̈́ܛࡗᐺٕ͚;۰ĂࣄഠώֶڱΞਕޝ ઼ ˝ individual pension accounts during the employees’ service periods. ќனॡᄮЕٺᖼЕ๊ќഠีĂ၆̰֭ઃͤࢍ೩ᑕќӀिĂ ˩ Under Taiwan’s Labor Standards Law, Chang Hwa Bank monthly ഠ̝ӀिќˢᑕࢍૄᖂҤЕćଘᖼЕ๊ٸࠎӀिќˢĄ ̣ ѐ contributed to a fund administered by an Administration Committee ą ќഠี۰ĂҋᖼЕ̝͟၆̰ઃͤࢍिĂܶќனॡ̟ؕᄮ and deposited in the committee’s name in Central Trust of China. As ᛉणഇ҃Тຍ̝ӀिĂҋฟؕםѐ ЕќˢĄЯ῁ӧ̈́ ಡ of December 31, 2006, the fund balance was $1,196,248 thousand. ͟ЕࠎᅍؼќৈĂܶќனॡ̟ؕᄮЕќˢĄ The Labor Pension Act (the “Act”), which took effect on July 1, ќனͷᒔӀ࿅̂ొ̶ԆјॡᄮЕĄٺ͘ᜈќˢܼ 2005, allowed Chang Hwa Bank employees covered by the Labor ٙඁඁඁ Standards Law before the enforcement of the Act to choose to 120 ώҖٙඁ̝ҤࢍͽົࢍٙࠎૄᖂĂྤய̈́ๅ̝ continue to be subject to the defined benefit pension plan based ዋϡඁத on the earlier promulgated Labor Standards Law or to be subject̝ޘࢬᆊࣃᄃኝඁૄᖂ̝मளĂֶࢍаᖼѐ ,ࢍზᄮЕࠎᅍؼٙඁĄᑕኝඁᇶॡّमளٙயϠ̝ٙ instead to the new defined contribution pension plan under the Act ඁᇆᜩᇴᄮЕࠎᅍؼٙඁๅĂΞഴੵᇶॡّमளăᓪ with the service years accumulated before the adoption of this Act ഴٙயϠ̝ٙඁᇆᜩᇴᄮЕࠎᅍؼٙ to be retained. Based on the Act, the rate of the Chang Hwa Bank’sٯٙඁ̈́ٯຫљ ඁྤயĂГෞҤᅍؼٙඁྤய̝Ξ၁னّĂᄮЕ monthly contributions to its employees’ individual pension accounts ᗝĄ since July 1, 2005 is at 6% of monthly salaries and wages. Chang Hwaܛෞᆊٯ౯ ඁ Bank recognized pension expense $62,831 based on defined benefitֶޘĂώҖ༊ѐޢ၁߉ޘט˘ඁЪޘҋˣ˩˛ѐ pension plan. Ϗү̶੨۰ĂྍϏົڌ۵ޘѨѐٺ࠳ዶޢఢؠአፋ̝ඁڱ Reserve for Accidental Losses ՙᛉѐົڌ੨࠳ዶᑕΐᇈ10%ᒉӀְຽٙඁĂЕࠎ۵̶ Reserve for accidental losses is provided based on 2% of monthly ޘٙඁ̝አፋĂЕࠎ༊ѐޘٙඁϡĄͽ݈ѐ̝ޘ brokerage income to cover the possible losses arising from mistakes ٙඁĄ of securities processing. The provision for the accidental loss will be ˩ഴ̝ົࢍநֶੑચົࢍ̳ಡௐٯώҖٙඁ adjusted based on actual incurred losses. ഴ̝ົࢍநķ̝ఢؠĂЯᔉཉన౯ٯĶٙඁཱི˟ Reserve for Default Losses ԫఙăࡁտ൴णăˠ̖ૈ̈́۵ᝋԸྤඈٙயϠ̝ٕٙ According to the “Rules Governing the Administration of நĄڱഴଳ༊ഇᄮЕٯඁ Securities Firms,” 0.0028% of monthly brokerage income must be ѣຫε provided as a reserve for defaults until the balance of the provisionٕ ຫٕๅ̏གྷ equals $200,000 thousand. Such reserve can only be used to offsetצѣΞਕྤய̏གྷޝдྤயๅܑ͟ .ᗝͽЪநҤࢍ̝ٕѣຫεĂᄮЕࠎ༊ default losses or other purposes as approved by the SFBܛ൴ϠĂͷຫε ЪநҤࢍٕຫεѣΞਕ̏གྷ൴Ϡ Reserve for Losses on Trading SecuritiesڱᗝܛഇຫεĂࡶຫε ො೬ᜨ̝Ą According to the “Rules Governing the Administration ofܢੑચಡܑٺ۰Ă Securities Firms,” 10% of the excess of monthly gains on trading ࡊϫࢦ̶ᙷ securities over monthly losses should be set aside as a reserve until ࠎ੨Ъ˝˩̣ѐޘੑચಡܑܑ̝྿Ăຽ˝˩αѐޘ the balance of the provision equals $200,000 thousand. Such reserve ੑચಡܑొ̶ົࢍࡊϫࢦ̶ᙷĄ can only be used to offset actual losses. ANNUAL REPORT 2006 121 e e o d g st st ld ld en en he of of An An 31, 31, cted. cted. ed in loan yable yable could could effect sset or unting unting arned. arned. come. restated restated emporary Loans Loans are recorded at outstanding principal amounts. The Fee income is recognized when income is realized or realizable The inter-period and intra-period tax allocations are adopted t Under the ROC Income Law Tax amended in an 1998, additional Non-derivative Non-derivative transactions negotiated in foreign currencies Chang Chang Hwa Bank adopted Statement of Financial Accounting If losses on commitments and contingencies are considered Certain accounts of the financial statements for the years ended balance sheet date, foreign-currency assets and liabilities are sheet balance date, at the exchange rates prevailing on the balance sheet and date, Recognition Income and Fee Income Interest interest income on loans is recognized on an accrual basis. Wh the loans become past due and are considered the uncollectible, principal and interest receivable are transferred to delinquent and accounts, the accrual of interest income is ceased. Intere income will be recognized when the delinquent interest is colle According to the regulations issued if by the MOF, repayment of loan is extended under an the agreement, related interest shoul be recognized as deferred revenue and recognized as income when collected. the contracts. to according Tax Income for Income Under Tax.” 22, an No. SFAS entity’s deferred tax a liability is estimated for future tax effects attributable to t prior loss differences, years’ carryforwards and tax credits. allowance is provided under the assessment of the realizability deferred tax assets. Adjustments of prior income years’ tax pa expense. tax income included in current are 10% income tax is levied on distributable earnings earned in th payables payables are settled are credited or charged to income. On the in current to or charged credited gains or losses are resulting “Acco 22, No. of SFAS tax under the provisions income calculate current year that remain undistributed after the shareholders’ meeting held in the following The year. levied income tax shou Foreign Currency Transactions Currency Foreign are recorded in dollars New Taiwan at the rates of exchange in when the transactions occur. Gains or losses caused by applyin prevailing exchange rates when foreign currency receivables and be recorded as current period income tax expense in the year th 2006. shareholders’ meeting is held. shareholders’ for Standard “Accounting 12 Income No. Tax Credit.” The entire ended December the year for of financial statements presentation income income tax credit from the purchase of technology, equipment, research and human development, resource development and e and used fully in the year is recognized in shares investment and Contingencies Commitments the losses are record probable and can be reasonably estimated, the statement of income for the current period. If the amount the facts should be disclosed. reasonably, not be evaluated Reclassifications December 31, 2005 have been reclassified to be consistent with t - $661,519 ᝋৈڌЕࠎ۵ አፋีϫĞඁޢğ - 661,519 12,523 $292,638 $280,115 $ - Еࠎົࢍࣧតજ ᎕ᇆᜩᇴĞඁޢğ ࢵѨޘѐ̣˩˝ٺఢؠĂ̝בཱི̱˘ ࢵѨޘѐ̣˩˝ٺఢؠĂ̝בཱི̱˘Œ ഇѣజԸྤ̳Φѣܑՙᝋ۵ЊϏ྿Ѻ̶̝ܜ ̳ฟξಞăᐌॡΞͽតדᙋ̈́ד෴ˢை ̣˩˝Ă˝˩αᄃڱᏉથݡ̝ෞᆊ͞ܛٺώҖ၆ ੑચಡܑ̝ᇆޘѐ̣˩˝ٺෞᆊ̝γ။ᝋৈથݡԸྤజ̶ ຉᓁ˯ົࢍតજ၆ڱࢵѨዋϡ݈າ̳ಡ̈́࠹ᙯ̳ಡ࣒ࢎ୧͛ॡĂ ѩγĂࣧଳјώ ˝Ğົܛˠ̚රϔ઼ົࢍࡁտ൴णૄڱੑဥֶ ࣧ ؕјώჯࣧؕјώĄٺᝋৈี˭Ăࡶڌ۵ٺᗝ үࠎೱზአፋᇴĂ֭ЕܛࣧؕјώĂमளٺᗝҲܛ̝ޢயๅܑ͟ͽӈഇ๗ தೱზĂࡶೱზྤٺഇԸྤ̝јώܼͽ Ըྤ̝͟ӈഇ๗தࢍზĂܜᝋৈ̝ഴีĄγ။ڌϐ˘̝࣎͡πӮќሹᆊࠎξᆊ̝ૄᖂĄ ˟˩ͷ̙ࢦ̂ᇆᜩ˧۰ĂтజԸྤ̳Φࠎ˯ξĞ ᕢğ̳ΦĂјώᄃξᆊҲෞᆊĂϏ၁னԸྤຫ εЕࠎ۵ޘͽົࢍ ѐܼדෞᆊĂᆊ ຫεЕˢ༊ഇຫৈĄԸྤ˯ξĞᕢğᙋڱĂଳјώᄃξᆊҲדϲ̷ຽચᙯ ܼࠎϫ۞̝ᙋޙజԸྤ̳ΦٕᄃטனĂͷ̙ͽଠ ഇԸྤܜ דᙋ̈́ד෴ˢைדᙋ̈́ד෴ˢை ώҖҋ˝˩̣ѐ˘͡˘͟Ăଳϡາ൴ο̝ੑચົࢍ .т˭Ĉ 1. 2ځଳϡ̙Т̝ົࢍ߆ඉ۰Ăᄲޘѐ फ़Ąྤטᑢ̝ޘĄ၁ચ˯ࡶѣ ӧᙱĂҺЕϯͽ݈ѐځොୃܢٺΞਕѣ̙ٙТĂᑕڱֹٙϡ ̝ົࢍࡊϫซҖࢦ̶ᙷĂҭืࢦበćଘТᙷࡊϫ̝ ෞᆊ͞ޘੑચಡܑᑕֶ˝˩̣ѐޘዋϡੑચົࢍ̳ಡௐˬ˩αཱིٙበᄦ̝ͧྵੑચ ಡܑ̚Ă˝˩αѐ ᗝĂᖼЕҌຽᝋৈአ ፋีϫĄ ᜩᇴт˭Ĉܛ߹ณᔖᐍ ̝ຫৈᅍؼࠎྤயٕๅ̝ܛᏉྤய̢ᖼĄࣧ̏னܛೱზአፋᇴٕٯ ᝋৈഴี̝᎕ೱზአፋᇴᄃ౯ڌ።Ϋ๗தࢦາᏊณĂ ֭ࣧ̏ᄮЕࠎ۵̝͟ٽᝋৈአፋีϫĄ ᙷࠎͽјώᏊณ۰ĂϹڌ߹ณᔖᐍᄃ઼γᒉྻ፟ၹஐԸྤᔖ ᐍᙯܼ̝̚ࢉϠّથݡ۰ĂЕࠎ۵ܛᏉથݡͽ̳π ᆊࣃᏊณĂٕனܛјώᏊณă౯ֻޢᏉથݡٕ̳πᆊࣃᔖᐍ ᙯܼ̝̚ࢉϠّથݡ۰ĂЕࠎົࢍࣧតજ᎕ᇆᜩ ᇴćᛳͽᝊዚܛᗝ̝አፋĂᛳͽ̳πᆊࣃᏊณͷ ̳πᆊࣃតજᄮЕࠎຫৈ̝ܛᏉๅĞӣࢉϠّથݡğ̟ͽዋ ༊̶ᙷĂࣧؕЕܛᏉྤய̈́ܛώҖ ࢵѨޘѐ̣˩˝ٺఢؠĂ̝בཱི̱˘αğૄ৪фௐŒ ዋϡາ൴ο࣒̈́ࢎੑચົࢍ̳ಡ̝ᇆᜩᇴ ዋϡາ൴ο࣒̈́ࢎੑચົࢍ̳ಡ̝ࡊϫࢦ̶ᙷ ) ) Ꮙྤய Ꮙๅ ˘ ˟ ) Ꮙથݡܑ̝྿ᄃ೬ᜨķĂͽ̈́Чཱི̳ಡ੨Ъາ ࣒ࢎ̝୧͛ĄܛᏉથݡ̝ົࢍநķ̈́ௐˬ ˩ཱི̱Ķܛ̳ಡௐˬ˩αཱིĶ ( ̳πᆊࣃតજЕˢຫৈ̝ܛ ܛᏉྤய ̳πᆊࣃតજЕˢຫৈ̝ܛ౯ֻ ăົࢍតજ̝நϤ̈́ᇆᜩˬ 3.ᅈഇγ๗Ъࡗ 3. REASONS AND EFFECTS OF CHANGES IN ACCOUNTING ᔖᐍّኳ̝ᅈഇγ๗෴ЪࡗĂࡶࠎఢᔖγ PRINCIPLES Chang Hwa Bank adopted on January 1, 2006 SFAS No. 34 ࢎࡗ͟ͽྍ̝͟ӈഇ๗தᏊณˢٺ။ๅᝋๅચ۰Ă “Accounting for Financial Instruments” and No. 36 “Financial ЪٺĄࢎࡗ͟ӈഇ๗தᄃࡗؠᅈഇ๗தม̝मᗝ Instruments: Presentation and Disclosure,” and related amendments ࡗഇมᝊዚᄮЕࠎ༊ഇຫৈĂྤயๅܑ͟ྍ͟ to other SFASs. ӈഇ๗தአፋٙயϠ̝ҸೱमᗝĂͽ̈́Ъࡗඕ͟ Effects of First-Time Application of Newly Published or Amended யϠ̝ҸೱमᗝĂϺЕࠎ༊ഇຫৈĄ SFAS. ఢᔖΞᏰᄮγ။ٚᏚ๗தតજࢲᐍ̝ᅈഇγ๗ According to the newly published or amended SFAS, Chang ൴Ϡॡአ Hwa Bank reclassified its financial assets and liabilities (includingٽ෴ЪࡗĂҸೱमᗝӮᅍؼҌ၁ᅫϹ derivatives). Any adjustment related to financial instruments at fair ᆊॾĄଘҸೱຫε̝ᅍؼĂͽٽፋྍγ။ٚᏚ̝Ϲ value through profit or loss was recorded as cumulative effects of யјώ̙࿅ξᆊࠎࢨĄྤ̝ޢአፋ changes in accounting principles. Adjustment related to available- ࢎࡗ͟ͽٺᔖᐍّኳ̝ᅈഇγ๗෴ЪࡗĂܧ for-sale financial instruments was recorded as adjustment of .ࡗؠ̝ᅈഇ๗தˢĄྤயๅܑ͟ͽ౺ዶഇม̝ shareholders’ equity ᅈഇ๗தአፋĂҸೱमᗝЕࠎ༊ഇຫৈĄЪࡗඕ The summary of changes in accounting principles on financial ͟யϠ̝ҸೱमᗝĂϺЕࠎ༊ഇຫৈĄ statements for the year ended December 31, 2006 is as follows: Cumulative ᅈഇγ๗෴ЪࡗٙயϠ̝ᑕќ̈́ᑕ;ഠีዶ Adjustments of Effects of Changes Shareholders’ ഴĂमᗝЕࠎྤயٕๅĄ in Accountingٯᗝ̢ࠎ Equity Principles ੨ЪώҖҋ˝˩̣ѐ˘͡˘͟ଳϡາ൴ο࣒̈́ࢎ (After Tax) (After Tax ) ̝ੑચົࢍ̳ಡĂ˝˩αѐޘੑચಡܑ̟ͽࢦ̶ Financial assets at fair value through profit or ̚ $ 280,115 $ - loss ර ᙷт˭Ĉ ϔ Available-for-sale financial assets - 661,519 ˝˩αѐ˩˟͡ ˝˩αѐ˩˟͡ ઼ Financial liabilities at fair value through profit ˬ˩˘͟ ˬ˩˘͟ ˝ Ğࢦ̶ᙷ݈ğ Ğࢦ̶ᙷޢğ or loss 12,523 - ˩ $ 292,638 $ 661,519 ྤயๅܑ ̣ -$ 246,681,790 $ דๅ̈́דѐ ෴ˢை ą ܜഇԸྤ 10,736,029 - Reclassifications Due to Newly Published or Amended Financial ѐ ෴ˢ๗ഠ 81,770 - Accounting Standards ಡ ᑕќഠี $ 35,524,654 $ 22,137,487 According to the letter No. (94) GI-MI 016 issued by Accounting ;ഠี 210,240 - Research and Development Foundation, an entity which applied ԛྤய - 65,920 5,355,508 8,278,273 SFAS No. 34 in 2006 for the first time should reclassify its financial ᒉຽྤயܧ 122 ̦ีྤய 1,253,187 - statements of 2005 to be consistent with 2006 presentation, but ᑕ;ഠี 52,230,059 38,747,089 does not need to restate such 2005 financial statements. Valuation ќഠี 568,341 - methods in 2005 that were changed in 2006 should be disclosed. ˿гᆧࣃඁ౯ 5,750,705 - Because of practical difficulty, pro forma data of prior years was not ᒉຽ̈́ๅ౯ 373,179 - provided. ๅ 1,946,187 8,243,499 ̳πᆊࣃតજЕˢຫৈ̝ܛ Valuation methods used by Chang Hwa Bank in 2005 that were - 28,447,641 Ꮙྤய changed in 2006 are summarized as follows: Ըྤ - 6,580,178דаๅைܢ a. Bills and Securities Purchased Ꮙྤய - 45,373,552ܛ౯ֻ Ꮙྤய - 183,300,157 Bills and securities purchased include various kinds ofܛഇ͟זѣҌ ۵ᝋԸྤ - 52,666 securities purchased. These are recorded at acquisition cost and̝ڱଳᝋৈ Ꮙྤய 1,566,121 7,173,425 stated at the lower of cost or market value on the balance sheetܛ ̳πᆊࣃតજЕˢຫৈ̝ܛ - 13,523,833 date. Allowance for decline in market value is recognized when Ꮙๅ Ꮙๅ - 354,050 market value is lower than cost. The decline in market value isܛ $ 362,277,770 $ 362,277,770 reversed within the recorded loss when market value recovers. The moving average method is used to determine the cost of ˝˩αѐޘޘ ˝˩αѐޘޘ investments sold. The basis for fair value of quoted securities is Ğࢦ̶ᙷ݈ğ Ğࢦ̶ᙷޢğ the average closing price of the last month in the year. ຫৈܑ b. Long-term Equity Investment -$ Ӏৈஐᗝ $ 47,836דᙋ Long-term investments are recorded at acquisition cost. - Ӏৈஐᗝ 121,794ד෴ை ̳πᆊࣃតજЕˢຫৈ̝ܛᏉ Investments in companies in which Chang Hwa Bank’s ownership - (18,470) ྤய̈́ๅຫৈ interest with voting rights is 20% or more or in which Chang Ꮙྤய̝̏၁னܛ౯ֻ - 188,100 ຫৈ Hwa Bank has significant influence over the investee are valued $ 169,630 $169,630 using the equity method, otherwise, cost-method is adopted. Under the cost method, investments in shares with quoted ώҖҋ˝˩αѐ˘͡˘͟ଳϡੑચົࢍௐ market prices are stated at the lower of cost or market value, and ˬ˩ཱི̣̳ಡĶྤயഴຫ̝ົࢍநķĂߏีតજ၆ any unrealized loss is recognized as a reduction of shareholders’ .ੑચಡܑ֭ࢦ̂ᇆᜩĄ equityޘαѐ˩˝̣̈́˩˝ ANNUAL REPORT 2006 123 n in or en the 354,050 188,100 - (18,470) -- 28,447,641 6,580,178 - 13,523,833 $ 169,630 $ 362,277,770 - - December 31, 2005 31, December Year Ended December 31, 2005 Ended December 31, Year $ 169,630 $ 362,277,770 Pre-reclassification After-reclassification Pre-reclassification After-reclassification resell resell under resell liabilities 373,179 - and liabilities purchased under purchased resell equity method - 52,666 available-for-sale financial available-for-sale under equity method operation and liabilities securities purchased under resell Forward Forward exchange contracts for trading purposes are For For contracts outstanding as of the balance sheet a date, The receivables and payables related to these contracts are In conformity with the newly published and amended SFAS gains on available-for-sale financial sale of securities fair financial assets and liabilities at $ 47,836 $ - liabilities 1,946,187 8,243,499 Chang Chang Hwa Bank for adopted “Accounting 35 Asset No. SFAS recorded recorded as assets or liabilities in New Taiwan dollar at the future rate (“forward specified rate”) on the Wh contract date. a contract the matures, difference between the spot rate on maturity and the forward rate is recognized as a gain or loss i period. the settlement gain or loss is computed according to the difference between the various forward exchange rates available for the remaining ga the related contract periods and the specified forward rates; period. in the current or loss is recognized and the resulting amount as is an recognized asset netted out, liability. adopted by Chang Hwa Bank, the financial statements as of and for the year ended December 31, 2005 were reclassified as follows: value through profit or loss profit through value assets agreements loss or loss ills and securities purchased $ 246,681,790 $ - c. Instruments Financial Derivative Impairment” since Impairment” January 1, 2005. The effect of the change to financial report of Chang Hwa Bank for the years ended December 2006 and 2005 is immaterial. 31, Gain on financial assets and liabilities at fair gainsRealized on available-for-sale financial Income Statement Income Gain on sale of securities Gain bills purchased on trading 121,794 - Financial assets at fair value through profit or profit through fair value assets at Financial Bonds securities and purchased under resell financial assetsAvailable-for-sale Held-to-maturity financial assetsInvestments under equity method - - 45,373,552 183,300,157 Other assets non-operating Other assets miscellaneous PayablesUnearned receipts taxes increment Reserve land revaluation for Reserve operation for and liabilities Other liabilities 5,750,705 5,355,508 1,253,187 8,278,273 Other assets financial - profit through fair value liabilities at Financial 568,341 - 52,230,059 38,747,089 - 1,566,121 7,173,425 Other financial liabilities Balance Sheet Balance Bills and securities purchased investmentsLong-term Bills negotiatedReceivablesPrepayments assetsIntangible 10,736,029 81,770 35,524,654 - 210,240 22,137,487 - - - 65,920 - - 161,264 811,282 1,969,767 28,447,641 $ 13,523,833 $ 28,447,641 $ 58,079,091 ˝˩αѐ 986 - $ 117,014,169 ˝˩αѐ 5,3613,649 40,863 - ˝˩αѐ ˝˩αѐ 67,564 - ˩˟͡ˬ˩˘͟ 103,001 13,387,167 ˩˟͡ˬ˩˘͟ ˩˟͡ˬ˩˘͟ ˩˟͡ˬ˩˘͟ 2,944,7931,118,5753,499,757 2,585,026 2,400,000 7,655,301 $ 731,005 $ 409,517 3,649 40,863 $ 286 $ 13,482,970 21,42519,236 - - ˝˩αѐ˩˟͡ˬ˩˘͟ 541,804 9,016,495 2,129,546 3,921 $ 11,146,041 Ъࡗܛᗝ $ 48,517 ˝˩̣ѐ 128,354 759,204 120,369 104,149 $ 44,126,907 6,127,975 10,224,115 ˩˟͡ˬ˩˘͟ $ 116,366,938 ˝˩̣ѐ 26,830,197 26,107,990 23,065,87812,763,552 19,970,420 29,839,406 2,454,1324,838,725 4,284,223 35,325 $ 7,538,273 $ 7,457,983 ˝˩̣ѐ ˝˩̣ѐ 15,985,887 25,259,088 $ 83,160,043 $ 80,416,651 ˩˟͡ˬ˩˘͟ $ 29 ,120,950 $ 34,289,213 ˩˟͡ˬ˩˘͟ ˩˟͡ˬ˩˘͟ ˝˩̣ѐ˩˟͡ˬ˩˘͟ ᏉๅயϠ̝ஐຫεࠎܛϫ۞̝ٽΖ̮ćϹ Ζ̮Ą Ꮙྤய ᏉྤயயϠ̝ஐӀৈܛϫ۞̝ٽĂϹޘѐ̣˩˝ٺ ഇזϏإѐ̈́˝˩αѐ˩˟͡ˬ˩˘͟ĂώҖ̣˩˝ ̝ٽᏉથݡϹܛଂְࢉϠّޘώҖ˝˩̣̈́˝˩αѐ Ꮙๅ āāӀதЪёથݡ āāγ๗ೱ๗Ъࡗܛāāঔγ̳Φๅ̈́ Ꮙๅ āāᅈഇγ๗Ъࡗܛϫ۞̝ٽᏉๅ Ϲܛ ܛؠͽ̳πᆊࣃតજЕˢຫৈ̝ ܛāāྤயϹೱ āāഇāāఱ āāӀதϹೱ āā๗தᏴፄᝋᝋӀ ܛๅ āāᅈഇγ๗Ъࡗ āā෴ˢ๗தᏴፄᝋᝋӀ̳عৈጴᙋ āā߆צܛāāૄ ԸྤדᏉྤய āāைܛϫ۞̝ٽᏉྤய Ϲܛ āā઼̰˯ξĞᕢğ۵ை āāӀதϹೱ āāྤயϹೱ ̳πᆊࣃតજЕˢຫৈ̝ܛᏉๅ ̳πᆊࣃតજЕˢຫৈ̝ܛᏉྤய ࣄᅙҖТຽٵδҖ̈́ٸх னܛ̈́ࡗ༊னܛ ) ) ) ) 2,864,246 ˟ ˘ ˟ ˘ ࠎ 2,908,755 ğт˭ĈܛᗝĞЩϫώܛ߹ ณࢲᐍࠎϫ۞Ą ̝ࢉϠّથݡЪࡗܛજٙயϠ̝ࢲᐍĄώ Җ̝ੑચᔖᐍඉரܼͽ྿јఢᔖ̂ొ̶ξಞᆊॾٕனگϫ۞ĂࢋܼࠎఢᔖЯ๗த̈́Ӏத ( ( ( ( ᅙҖТຽٸٵ ᅙҖТຽ ऱхγ။ٸϹೱைፂ хޞ ܛऱхன хഠ౯ܛϥ͗ хഠ౯ܛ˙͗ γ။хഠ౯ܛ āā Ꮙથݡܛă̳πᆊࣃតજЕˢຫৈ̝̣ δҖ̈́ᅙҖТຽٸăхܛࡗ༊ன̈́ܛαăன ๗தᏴፄᝋЪࡗ γ๗ೱ๗Ъࡗ ᅈഇγ๗Ъࡗ ӀதϹೱ̈́ྤயϹೱЪࡗ ̱ăᑕќഠีᑕќഠี 4. CASH AND CASH EQUIVALENTS / DUE FROM CENTRAL ˝˩̣ѐ˩˟͡ˬ˩˘͟ ˝˩αѐ˩˟͡ˬ˩˘͟ BANK AND CALL LOANS TO BANKS ᑕќഠ $ 3,835,803 $ 10,183,361 (a) Cash and cash equivalents ᑕќੜඁഠ 751,070 671,782 December 31 ᑕќќৈ 77,853 41,438 2006 2005 ᑕќӀि 5,267,750 4,395,637 Cash in vault $ 7,538,273 $ 7,457,983 ᑕќٚҸைഠ 6,921,788 6,612,125 Checks for clearing 23,065,878 19,970,420 ᑕќഠ 1,370,253 821,958 Due from other banks 12,763,552 29,839,406 ӑ (556,326) (588,814) Foreign currencies on hand 759,204 811,282ٯഴĈ౯ $ 17,668,191 $ 22,137,487 $ 44,126,907 $ 58,079,091 (b) Due from central bank and call loans to banks ഠ December 31ٸഠ෭ன̈́ٸă෭ன̈́˛ т˭Ĉ 2006 2005ځഠٸ෭ன̈́(˘) ˝˩̣ѐ˩˟͡ˬ˩˘͟ ˝˩αѐ˩˟͡ˬ˩˘͟ ซ˾٪๗̈́෭ன $ 7,575,462 $ 8,323,044 Call loans to banks $ 83,160,043 $ 80,416,651 Reserve for checking account 6,127,975 10,224,115 āā͚ 1,323,191 1,791,423 Reserve for demand account 26,830,197 26,107,990 ഠ 259,995,882 267,630,028 Reserve for foreign deposit 120,369 104,149ٸൺഇ Ꮙྤഠ 489,659 455,055 Others 128,354 161,264דᑕќᙋ ഠ 257,879,387 249,320,427ٸഇ̚ ഠ 332,930,754 306,529,589 $ 116,366,938 $ 117,014,169ٸഇܜ ഠᖼЕ๊̝ќഠ 14,951,117 14,129,844ٸ 875,145,452 848,179,410 5. FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE ӑ (11,687,317) (13,748,252) THROUGH PROFIT OR LOSSٯഴĈ౯ ̚ $ 863,458,135 $ 834,431,158 December 31 ර 2006 2005 ( ) ӑ Financial assets at fair value through profit or lossٯϔ ˟ ౯ ઼ ˝˩̣ѐޘ পؠๅᝋ Бវๅᝋ Trading-purpose financial assets ˝ ќа̝ Ъ̝ሕд Investment in bill $ 731,005 $ 409,517ڱ ˩ ̣ ᑕќഠี ࢲᐍ ࢲᐍ Ъࢍ Listed stock 2,944,793 2,585,026 ѐ ഇܐዶᗝ $ 588,814 $ 1,627,629 $ 12,120,623 $ 14,337,066 Beneficiary certificate 1,118,575 2,400,000 ą ώഇ೩Еӑϡ 132,447 4,393,377 - 4,525,824 Government bond 3,499,757 7,655,301 Forward contract 103,001 13,387,167 ѐ ࢦ̶ᙷ (26,848) 4,172,065 (4,145,217) - Interest rate swap 5,361 - ഠ๊ќഠٸܧಡ ᖼЕ - (68,314) - (68,314) Currency call option premium 3,649 40,863 ี˭ Asset swap 986 - ഠ̈́ါഠٸ՞ዚ (138,032) (6,350,994) - (6,489,026) ܛᗝ Futures 67,564 - Other ECB and financial bonds 541,804 1,969,767 (āā (55) (53,321) (8,531) (61,907 124 $ 556,326 $ 3,720,442 $7,966,875 $ 12,243,643 9,016,495 28,447,641 ˝˩αѐޘ Designated financial assets at fair value through ќ БវๅᝋЪ̝ profit or lossڱপؠๅᝋ а̝ࢲᐍ ሕдࢲᐍ Ъࢍ Interest rate-linked-linked structured product 2,129,546 - ഇܐዶᗝ $10,023,797 $1,132,717 $11,156,514 $ 11,146,041 $ 28,447,641 ώഇ೩Еӑϡ 51,148,560 11,568,188 62,716,748 ഠ̈́ါഠٸ՞ዚ (59,550,872) - (59,550,872) Financial liabilities at fair value through profit or loss ܛᗝ ෞᆊůᑕќੜٯ౯ 8,533 - 8,533 Trading-purpose financial liabilities ඁഠ Forward contract $ 286 $ 13,482,970 - āā 6,143 - 6,143 Cross-currency swap 21,425 $1,636,161 $12,700,905 $14,337,066 Interest rate swap 19,236 - Currency put option premium 3,649 40,863 - ഠ̝౯ Asset swap 3,921ٸӑតજܑܼᑕќഠၱ෭ன̈́ٯ౯̝ޘොĈ˝˩αѐ ྿Ą $ 48,517 $ 13,523,833ܑ׀ӑЪٯ ˝˩̣ѐ̈́˝˩αѐ˩˟͡ˬ˩˘̏͟ઃͤ၆̰ Chang Hwa Bank engages in various derivative instruments to ഠี̶Ҿࠎ15,019,431Ζ̮̈́ܫഠ̈́ٸࢍि̝ fulfill customers’ needs, as well as to manage Chang Hwa Bank’s asset 14,129,844Ζ̮Ą˝˩̣̈́˝˩αѐޘ၆̰Ϗࢍ೩Е and liability positions and credit risk for the years ended December Ӏिќˢ̝ܛᗝ̶Ҿࠎ566,662Ζ̮̈́548,238Ζ̮Ą 31, 2006 and 2005. Ϗགྷ෦Ԕӈ֭ޘαѐ˩˝̣̈́˩˝ٺώҖ Җᖼዚ̝ܫๅᝋĄ The nominal principal amounts of outstanding derivative contracts as of December 31, 2006 and 2005 are as follows: Ꮙྤய December 31ܛˣă౯ֻ 2006 2005 ˝˩̣ѐ˩˟͡ˬ˩˘͟ ˝˩αѐ˩˟͡ˬ˩˘͟ Cross-currency swap $ 29,120,950 $ 34,289,213 ξĞᕢğ۵ை $ 1,792,634 $ 1,699,551 Currency option 2,454,132 4,284,223˯઼̰ Forward contract 15,985,887 25,259,088 43,674,001 67,482,732 דৈᙋצ̈́דைๅ Interest rate swap and asset swap agreement 4,838,725 35,325 $ 69,275,366 $ 45,373,552 The net income of trading-purpose financial assets for the year ๅ ended December 31, 2006 was $2,864,246 thousand; and the net loss̳عѐ̈́˝˩αѐ˩˟͡ˬ˩˘͟ͽ߆̣˩˝ ઇࠎљ٪ፉܲ۰Ă̶Ҿࠎ900,600Ζ̮̈́ of trading-purpose financial liabilities for the year ended Decemberੰڱ೩ֻ 1,319,022Ζ̮Ą 31, 2006 was $2,908,755 thousand. ANNUAL REPORT 2006 125 Total 4,337,066 31 31 238 Total crual 6,143 (61,907) (588,814) , 2006 , 14,129,844 $ 12,243,643 $14,337,066 $22,137,487 (13,748,252) - Portfolio $ 834,431,158 (8,531) Overall Loan Loan Overall For Losses on Losses For $ 7,966,875 December 31,December 2006 December 31 December December 31 December Portfolio Overall Loan Loan Overall $12,700,905 (556,326) For Losses on Losses For 14,951,117 $17,668,191 (11,687,317) 2006 2005 2006 2005 Loans (53,321) Ended December 31, 2006 Particular Particular 875,145,452 848,179,410 For Losses on Losses For $ 3,720,442 $ 863,458,135 Year Ended December 31, 2006 8,533 - 8,533 6,143 Year Ended December 31, 2005 Ended December 31, Year (55) $1,636,161 For Losses on Losses For $ 556,326 Particular Loans Particular Receivables - tax refund - tax refund for margin loans margin for 489,659 455,055 , 2005 , valuation - tax refund combined combined into the rollforward of the losses on overall loan portfolio in 2005. are as follows: are , 2006 , Chang Chang Hwa Bank did not write off any loans without legal claim The The delinquent loans of which the accrual of interest income is loan losses 132,447 4,393,377 - 4,525,824 amountamount for for margin margin loans loans (a) as follows: are granted Loans (b) Rollforward schedules of allowance for receivables and loans thousand and $14,129,844 thousand, respectively. The ceased ac ceased The respectively. thousand and $14,129,844 thousand, in 2006 and 2005 is income $566,662 thousand and $548, interest respectively. thousand, in 2006 and 2005. process ceased ceased internally as of December 31, 2006 and 2005 is $15,019,4 Note: The rollforward schedule of the receivable allowance was for loanfor losses December 31,December 2005 7. 7. LOANS, NET 6. 6. RECEIVABLES, NET receivables Others Balance, January 1, 2005 January 1, Balance, loan losses for Provision off written Loans valuation for Allowance - tax refund $10,023,797 51,148,560 $1,132,717 11,568,188 $11,156,514 (59,550,872) 62,716,748 - (59,550,872) ccounts receivableccounts $3,835,803 $10,183,361 December 31,December 2006 NegotiatedOverdraftShort-term loansReceivable amount for margin loans $ 259,995,882 7,575,462 $ 1,323,191 267,630,028 8,323,044 1,791,423 Accounts receivable receivable refund Tax receivableRevenue receivableInterest receivableAcceptance Other receivables receivables for allowance Less 751,070 6,921,788 77,853 5,267,750 671,782 1,370,253 6,612,125 4,395,637 41,438 821,958 Medium-term loans loansLong-term Delinquent loans 257,879,387 332,930,754 249,320,427 306,529,589 Balance, January 1, 2006 January 1, Balance, forProvision loan losses $ 588,814 $ 1,627,629 $ 12,120,623 $ 1 ReclassificationReclassified as other financial assets off written Loans Others - (68,314) (26,848) (138,032) 4,172,065 (6,350,994) (4,145,217) - (68,314) - - (6,489,026) Less allowance for loan losses for allowance Less Balance, December Balance, 31, 2005 ѐѐ ̈́ ̈́̈́̈́̈́ ̈́ ̈́ ̈́ Balance, DecemberBalance, 31, 2006 צ৺ צ৺ צ৺ צ৺צ৺צ৺ צ৺צ৺צ৺צ৺צ৺ צ৺ צ৺ צ৺ 3.416 ѐѐ B B B BB A2 A2 A2 A2A2A2A2 0.02% 0.02%0.02%0.02% 0.02% 0.02% 0.02% ྍӀिഇ ྍӀिഇྍӀिഇ ྍӀिഇ ྍӀिഇ ྍӀिഇ ྍӀिഇ ྍӀिഇ ྍӀिഇྍӀिഇྍӀिഇ 3.416 ) )) ) ) ) ) ) )) ˝˩αѐ ৺ΐቅĂࠎ৺ΐቅĂࠎ৺ΐቅĂࠎ৺ΐቅĂࠎ৺ΐቅĂࠎ৺ΐቅĂࠎ৺ΐቅĂࠎ৺ΐቅĂࠎ ˝˩αѐޘ ˟ ˟˟ ˟ ˟ ˟ ˟ ˟ ˟ ( (( ( ( ( ( ( )C)C)C)C)C)C)C ൴דৈᙋצ൴৺דৈᙋצ൴৺דৈᙋצ൴৺דৈᙋצ൴৺דৈᙋצ৺ ᇴ̝ᓁĄᇴ̝ᓁĄᇴ̝ᓁĄᇴ̝ᓁĄ ᇴ̝ᓁĄᇴ̝ᓁĄ ᇴ̝ᓁĄᇴ̝ᓁĄ ˩˟͡ˬ˩˘͟ Ζ̮ፋĂ Ζ̮ፋĂ Ζ̮ፋĂ Ζ̮ፋĂ CCCC ̈́ ̈́̈́ ̈́ ̈́ ̈́ ̈́ ˘˘˘˘˘˘ ((((( ѐѐ 2% 2% ARMs ARMsARMs ARMsARMs ARMsARMs ഠๅᝋޏٗ ӀதࠎĈדৈᙋצӀதࠎĈ৺דৈᙋצӀதࠎĈ৺דৈᙋצӀதࠎĈ৺דৈᙋצ৺ ӀதࠎĈדৈᙋצ৺ ഠๅᝋޏٗ Ζ̮̝ഠܫ̟ᇇ Ζ̮̝ഠܫ̟ᇇ Ζ̮̝ഠܫ̟ᇇ ৺ΐቅĂࠎ৺ΐቅĂࠎ ৺ΐቅĂࠎ ৺ΐቅĂࠎ ৺ΐቅĂࠎ ৺ΐቅĂࠎ Е౯ֻדৈᙋצЕ౯ֻ৺דৈᙋצ৺ Е౯ֻדৈᙋצЕ౯ֻ৺דৈᙋצЕ౯ֻ৺דৈᙋצ৺ ᇴ̝ᓁĄ ᇴ̝ᓁĄ ᇴ̝ᓁĄ ᇴ̝ᓁĄᇴ̝ᓁĄᇴ̝ᓁĄ 47.5% 45% BBB B 2.17 0.37% 0.37%0.37% 0.37% 0.37% 0.37% (19,000) (18,854) (19,679) (10,767) (21,374) (12,179) ᗝࠎܛ൴Җדৈᙋצᗝࠎ ৺ܛ൴Җדৈᙋצᗝࠎ ৺ܛ൴Җדৈᙋצᗝࠎ ৺ܛ൴Җדৈᙋצ৺ ᗝࠎܛ൴Җדৈᙋצ৺ DD DD (12,111) (31,356) 381,521 376,554 ѐѐ Ζ̮ፋĂ Ζ̮ፋĂΖ̮ፋĂ DDD D 2% 2% 4,730,000 4,730,000 4,730,000 )A1 )A1 )A1 )A1 )A1 ˝˩̣ѐ 3.2% 3.2% ྍӀिഇมӀिࢎؠ̝͟ ྍӀिഇมӀिࢎؠ̝͟ ྍӀिഇมӀिࢎؠ̝͟ ྍӀिഇมӀिࢎؠ̝͟ ྍӀिഇมӀिࢎؠ̝͟ ྍӀिഇมӀिࢎؠ̝͟ྍӀिഇมӀिࢎؠ̝͟ྍӀिഇมӀिࢎؠ̝͟ ྍӀिഇมӀिࢎؠ̝͟ ྍӀिഇมӀिࢎؠ̝͟ 47.5% 45% ) ) ) ) ) )) ) ) ˘ ˘ ˘ ˘ 2.17 ARMs ARMs ARMs ARMsARMs ˝˩̣ѐޘ ( ( ( ˩˟͡ˬ˩˘͟ ܛ൴Җ˘ૺைࢬ่דৈᙋצ৺ ܛ൴Җ˘ૺைࢬ่דৈᙋצ৺ ܛ൴Җ˘ૺைࢬ่דৈᙋצ৺ ܛ൴Җ˘ૺைࢬ่דৈᙋצ৺ ܛ൴Җ˘ૺைࢬ่דৈᙋצ৺ ˟ ˟ ˟ ˟ ˟ ˟ ˟ ˟ Ζ̮̝Ζ̮̝ Ζ̮̝ ( ( ( ( ( ( ( DD D D 5,375,056 5,375,056 135,000 135,000 ᗝЧࠎາέ။ܛ൴ҖדৈᙋצᗝЧࠎາέ။ ৺ܛ൴ҖדৈᙋצᗝЧࠎາέ။ ৺ܛ൴Җדৈᙋצ৺ ᗝЧࠎາέ။ܛ൴Җדৈᙋצ৺ ᗝЧࠎາέ။ܛ൴Җדৈᙋצ৺ ̈́ ̈́ ̈́ ̈́ ̈́ ̈́ Ζ̮ፋĂΖ̮ፋĂ Ζ̮ፋĂ ৺ΐቅĂࠎ ৺ΐቅĂࠎ ৺ΐቅĂࠎ ৺ΐቅĂࠎ ৺ΐቅĂࠎ ᇴ̝ᓁĄᇴ̝ᓁĄ ᇴ̝ᓁĄ A2A2 A2 A2 ӀதࠎĈדৈᙋצӀதࠎĈ৺דৈᙋצӀதࠎĈ৺דৈᙋצӀதࠎĈ৺דৈᙋצ৺ )A2 )A2 )A2 )A2 Տૺࢬᗝາέ။דৈᙋצՏૺࢬᗝາέ။ Ζ̮γĂዶדৈᙋצՏૺࢬᗝາέ။ Ζ̮γĂዶדৈᙋצΖ̮γĂዶ CCC 375,056375,056 0.55% 0.55% 0.55% 0.55% 0.55% ˘ ˘ ˘ ( ( ARMs ARMs 135,000 135,000 Ă౺ዶனܛ߹ณ̳πᆊࣃ̝ୂຏޘт˭ĈĂ౺ዶனܛ߹ณ̳πᆊࣃ̝ୂຏޘт˭ĈĂ౺ዶனܛ߹ณ̳πᆊࣃ̝ୂຏޘт˭ĈĂ౺ዶனܛ߹ณ̳πᆊࣃ̝ୂຏޘт˭Ĉ Ζ̮ፋĄੵ Ζ̮ፋĄੵ Ζ̮ፋĄੵ ྍӀिഇมӀिࢎؠ̝͟ྍӀिഇมӀिࢎؠ̝͟ ྍӀिഇมӀिࢎؠ̝͟ྍӀिഇมӀिࢎؠ̝͟ ྍӀिഇมӀिࢎؠ̝͟ྍӀिഇมӀिࢎؠ̝͟ ) )) )) 375,056375,056 20%20%20% Ζ̮ፋĂЪࢍࠎາέ။ Ζ̮ፋĂЪࢍࠎາέ။ Ζ̮ĄΖ̮ĄΖ̮Ą ˟˟ ˟˟ ൴Ϡ̙Ӏតજڍࢋ̝གྷᑻనͽ̈́ྍඈనт ༊͟ᏊณܲᝋӀ̼דĂᙋޘԆјѐ̼דдᙋ ( (( ҌҌ ၆̳πᆊࣃ̝ᇆᜩ ၆̳πᆊࣃ̝ᇆᜩ ၆̳πᆊࣃ̝ᇆᜩ ၆̳πᆊࣃ̝ᇆᜩ ӀதࠎĈדৈᙋצ৺ ӀதࠎĈדৈᙋצ৺ ̈́דৈᙋצ৺ ̈́דৈᙋצ৺ ̈́דৈᙋצ৺ 375,056 375,056 ̈́̈́ ৺ΐቅĂࠎ ৺ΐቅĂࠎ ৺ΐቅĂࠎ ৺ΐቅĂࠎ ᇴ̝ᓁĄᇴ̝ᓁĄ A1 A1 ޏёٗ͞ٽϹ̼דѐ˩˟͡ͽᙋˬ˩˝ٺώҖ A1 ੫၆ঔγๅચݭથݡԸྤĂᄮЕഴຫޘώҖ˝˩̣ѐ ώҖܲࢬᗝ 20% 20% 10% 10% 2,163 2,163 ϡຫεதĄܫࢍٺཏຫεதඈ 10% ֹٙϡ̝ࢋనт˭Ĉ ྍӀिഇมӀिࢎؠ̝͟ ྍӀिഇมӀिࢎؠ̝͟ ྍӀिഇมӀिࢎؠ̝͟ ྍӀिഇมӀिࢎؠ̝͟ ϡຫεĂ߇ഇᐖၗܫഠ֭Ϗѣ၁ᅫޏ̝̼ٗדϡຫεĂ߇ഇᐖၗЯᙋܫഠ֭Ϗѣ၁ᅫޏ̝̼ٗדЯᙋ ϡຫεĂ߇ഇᐖၗܫഠ֭Ϗѣ၁ᅫޏ̝̼ٗדЯᙋ Ĉژ̶ޘĈୂຏژ̶ޘĈୂຏژ̶ޘຏୂ ᏊณܲᝋӀֹٙϡ̝ࢋనĈ )B )B )B ) ) ) )) ) ))) ) ைࢬӀதĄדৈᙋצைࢬӀதĄ৺דৈᙋצ৺ ˘ ˘ ˟ ˟ ˬ ˬ ˟˟ ˘ ( ӀதࠎĈדৈᙋ 2,365,000 ഠๅᝋĂࢬܛᗝЪࢍ Ă൴Җ ഇมࠎ˝˩ˬѐ˩˟͡˟˩͟Ҍ˘˘αѐˣ͡˟˩ͤ͟Ą ̚דৈᙋצથᇇຍԠᅙҖ۵Њѣࢨ̳ΦέΔ̶Җ൴Җ ( ᗝࠎາέ။ Ёֿ༱̮ፋĂֶࢬᗝ˩֖൴ҖĄ ຫε มӀिࢎؠ̝͟ ( ( ᗝࠎາέ။ܛ൴Җדৈᙋ າέ။ Җܛᗝࠎາέ။ D ) ϡࢲᐍă೩݈ᔘഠ̈́Ӏதࢲ ᐍᇆᜩĄܫொᖼๅᝋ̝צĂͷᆊࣃޢ ᐺึҜдԸྤˠᝋӀ̝צܛώҖ̝ྤ ய֭৶ᝋĄܲᝋӀ̝ώٺഇഠีॡĂԸྤˠ̈́ ᇇથᇇຍԠᅙҖ۵Њѣࢨ̳ΦέΔ̶Җ၆ז;͚ڱ౺ዶ ӀिܲѣᝋӀĂ༊ๅચˠ̝ޢᏉྤயĂ၆݈ˬึҜԸྤˠ͚;ࡗؠӀिܛ ARMs 0.65% ࢍ೩݈ᔘഠதĞՏѐͧதğ ࢍΐᝋπӮѐࢨ ࢍܫϡຫεதĞՏѐͧதğ ౺ዶனܛ߹ณ̝Զனத ̙Ӏតજ ̙Ӏតજ ࢍܫϡຫεதĞՏѐͧதğ ̙Ӏតજ ܲᝋӀ̝̳πᆊࣃ ࢍΐᝋπӮѐࢨ ࢍ೩݈ᔘഠத ̙Ӏតજ (α)னܛ߹ณ 8. AVAILABLE-FOR-SALE FINANCIAL ASSETS ߹ December 31ܛ̝னܫ̼ד͚;̟ᙋ̈́זќܫ̼דҋᙋ ณຉᓁт˭Ĉ 2006 2005 ഠๅᝋޏٗ Listed stockss $ 1,792,634 $ 1,699,551 ˝˩̣ѐޘ ˝˩αѐޘ Bills, bonds and beneficiary certificates 67,482,732 43,674,001 ߹ณ $ 19,137 $ 30,788ܛᝋӀ̝னܲזќ ચӀৈ 10,670 17,556 $ 69,275,366 $ 45,373,552ڇזќ Government bonds placed as deposits in courts of law as of Ꮙྤய December 31, 2006 and 2005 were $900,660 thousand and $1,319,022ܛഇ͟זᏉྤயѣҌܛഇ͟זăѣҌ˝ ˝˩̣ѐ˩˟͡ˬ˩˘͟ ˝˩αѐ˩˟͡ˬ˩˘͟ thousand, respectively. δҖؠഇхಏ $ 158,315,000 $ 173,000,000 Chang Hwa Bank recognized impairment loss $2,163 thousand 6,859,208 6,167,540 דๅع߆ for the oversea bond securities in 2006. 2,611,116 2,129,604 דᏉๅܛ In December 2004, the carrying value of $5,375,056 thousand 829,833 936,319 דΦๅ̳ $ 167,548,463 $ 183,300,157 of the land and buildings mortgage loan was entrusted by Chang Hwa Bank to the Deutsche Bank AG, Taipei Branch for issuance ๅ೩ֻ̳عѐ̈́˝˩αѐ˩˟͡ˬ˩˘͟ͽ߆̣˩˝ of beneficiary certificates. The period of issuing of beneficiary ઇࠎљ٪ፉܲ۰Ă̶Ҿࠎ591,500Ζ̮̈́169,671Ζੰڱ certificates was from December 20, 2004 to August 20, 2025. The ̮Ą үࠎᒉຽፉܲĂ˝˩̣ѐ̈́˝˩ following table sets forth (or describes) the designation, interest rateדΩঔγ̶Җ೩ֻๅ αѐ˩˟͡ˬ˩˘̶͟Ҿࠎ489,667Ζ̮̈́490,900Ζ̮Ą and initial principal amount for each class of certificates comprising :෴ˢؠхಏ̚೩ֻδҖүӈॡზրፉܲ҃నؠኳ the beneficial interests in the Trust Class Initial Principal ᝋ̝δҖؠഇхಏ˝˩̣ѐ̈́˝˩αѐ˩˟͡ˬ˩˘͟ዶ Designation Interest Rate Amount ̚ ᗝ12,000,000Ζ̮̈́18,000,000Ζ̮Ą ර Class A1 0.02% + ARM Index $ 2,365,000 ϔ Class A2 0.37% + ARM Index $2,365,000 ,000 Class B 0.55% + ARM Index $ 135,000 ۵ᝋԸྤ̝ڱ۵ᝋԸྤଳᝋৈ̝ڱăଳᝋৈ˩ ઼ Class C 0.65% + ARM Index $ 135,000 ˝˩̣ѐ ˝˩αѐ ˝ Class D None $ 375,056 ˩ ˩˟͡ˬ˩˘͟ ˩˟͡ˬ˩˘͟ ᗝ ۵Ʀ Chang Hwa Bank hold the subordinated seller certificates Classܛᗝ ۵Ʀ ࢬܛజԸྤ̳ΦЩჍ ࢬ ̣ Ĉ D of $375,056 thousand as available-for-sale financial assets with theڱѐ ᝋৈ ၓᅙˠ֗ܲᐍநˠ۵Њ ą $ 45,400 100.00 $ 40,148 100.00 ѐ ѣࢨ̳Φ right to claim residual interests after paying fixed interest of Class A1, ၓᅙܲᐍགྷࡔˠ۵Њѣࢨ ಡ 16,244 100.00 12,518 100.00 A2, B and C securities. If the borrowers are not able to repay the loans ̳Φ $ 61,644 $ 52,666 on maturity, investors and Deutsche Bank - Taipei Branch does not have recourse to Chang Hwa Bank’s other assets. The right to claim 126 loan principal follows the investors’ right, and its value depends on ˩˘ăͽјώᏊณ̝ܛᏉྤயͽјώᏊณ̝ܛᏉྤய the credit risks, advanced principal payments, and interest risk on the ˝˩̣ѐ˩˟͡ˬ˩˘͟ ˝˩αѐ˩˟͡ˬ˩˘͟ principal transferred. ξĞᕢğ఼۵ $ 4,834,177 $ 5,326,364˯ܧ઼̰ ξĞᕢğ఼۵ - 279,418 (a) Key assumptions used in measuring retained interests˯ܧγ઼ $ 4,834,177 $ 5,605,782 Key economic assumptions used in measuring the retained interests on the securitization date resulting from the completion ώҖٙѣ̝˯۵ைԸྤĂЯ߿ඛξಞ̳ฟಡᆊ of securitization during the year were as follows: ΞያᏊณĂ߇ͽјώᏊณĂࡶѣഴຫ̝ڱͷ̳πᆊࣃ Rights of Residential Mortgages މ៍ᙋፂĂᄮЕഴຫຫεĂ˝˩̣̈́˝˩αѐޘ̶Ҿᄮ December 31 Еഴຫຫε270,000Ζ̮̈́209,253Ζ̮Ą 2006 2005 Projected principal repayment rate (% per 47.5% 45% (Ըྤ annumדԸྤ߿ඛξಞ̝ๅדă߿ඛξಞ̝ๅ˟˩ ˝˩̣ѐ˩˟͡ˬ˩˘͟ ˝˩αѐ˩˟͡ˬ˩˘͟ Estimated weightedeightedaverage number of years 2.17 3.416 ᎸᕢপҾ۵ůέ៉ᜠ $ 1,300,000 $ 1,300,000 Estimated loss rate of credit (% per annum) 2% 2%઼̰ Discount rate for residual cash flows (% per 3.2% 3.2% 185,871 1,294,134 דயૄᖂᙋྤ̈́דৈᙋצ annum) $ 2,594,134 $ 1,485,871 (b) Sensitivity analysis As of December 31, 2006 and 2005, key economic ăؠྤயؠྤய assumptions and the sensitivity of the current fair valueˬ˩ ˝˩αѐ˩˟͡ ˝˩̣ѐ˩˟͡ˬ˩˘͟ of residual cash flows under 10% to 20% adverse changes ˬ˩˘͟ јώ ࢍԶᖞ ࢬᆊࣃ ࢬᆊࣃ assumptions were as follows: ˿āāг $ 17,092,967 $ - $ 17,092,967 $ 17,096,509 Rights of Residential Mortgages December 31 7,721,258 (2,435,007) 5,286,251 4,701,518ޙ̈́ޏٗ 2006 2005 ፟ୠన౯ 3,961,080 (1,933,140) 2,027,940 2,018,543 Ϲ఼̈́ྻᏮన౯ 641,959 (499,227) 142,732 109,693 Carrying amount of retained interest $ 381,521 $ 376,554 ̦ีన౯ 1,438,483 (1,219,676) 218,807 138,192 Weighted-average life (in years) 2.17 3.416 ১ྨᝋৈԼ։ 557,186 (483,359) 73,827 65,764 Prepayment rate (monthly rate) 47.5% 45% Impact on fair value of 10% adverse change $ (21,374) $ (12,179) ϏԆ̍̈́ࢎᔉ 228,690 - 228,690 848,931 ፟І Impact on fair value of 20% adverse change $ (12,111) $ (31,356) Expected credit losses (annual rate) 2% 2% - - - 45,825 (;ٗгഠ Impact on fair value of 10% adverse change $ (19,679) $ (10,767 $ 31,641,623 ($ 6,570,409) $ 25,071,214 $ 25,024,975 Impact on fair value of 20% adverse change $ (19,000) $ (18,854) ANNUAL REPORT 2006 127 ral ral sured sured due to Ownership Interest (%) Interest 279,418 185,871 829,833 2005 $ 1,485,871 $183,300,157 $ 5,605,782 12,518 100.00 40,148 100.00 Value $ 52,666 - 40,148 Carrying December 31 December December 31 December December 31 December December 31 December 936,319 1,294,134 2006 2005 2006 2005 Years Ended December 31 Years 2006 2005 2006 2005 $ 2,594,134 Rights Mortgages of Residential $167,548,463 $ 4,834,177 2006 Ownership Interest (%) Interest 61,64461,644 16,244 100.00 $ 61,644 Co. $ 1,300,000 $ 1,300,000 45,400 100.00 $ 40,148 securities Value 45,400 Carrying Co., Ltd. Co., Co., Ltd.Co., $ 45,400 High Speed Rail Co. held common stocksheldheld common common stocks $ 4,834,177 $ 5,326,364 -- held held common common stocks stocks The The cash flows received from and paid to securitization held common stocks heldheld common common stocks Taiwan High Speed Rail Co. - held common stocks loan thus, loan the thus, expected static pool credit losses were equal to losses. the expected credit Chang Chang Hwa Bank classes the investments as financial assets Government Government bonds placed as deposits in courts of law as of The overseas branches placed bonds as collateral for operations Certificate deposits placed as reserves for clearing at the Cent trusts are summarized as follows: as summarized trusts are surance Broker Co.,surance Ltd. surance Agent Co., Agent surance Ltd. MARKET nsurance Broker Co., Ltd. nsurance Agent Co., Ltd. (c) There was no actual credit loss for the securitized mortgage (d) flows Cash the objective evidences of impairment. of impairment. the objective evidences impairment loss $270,000 thousand and $209,253 thousand for the financial assets carried at cost in 2006 and 2005 respectively, carried at cost because their fair value cannot be reliably mea and are recognized at cost Chang initially. Hwa Bank recognized December 31, December 2006 31, and 2005 were $591,500 thousand and $169,671 respectively. thousand, of $489,667 thousand and $490,900 respectively thousand, as of 2005. 2006 and December 31, Bank as of December 2006 31, and 2005 were $12,000,000 thousand respectively. and $18,000,000 thousand, bonds 2,129,604 2,611,116 privately - privately held common stocks 10. 10. INVESTMENT UNDER EQUITY METHOD 11. FINANCIAL ASSETS CARRIED AT COST 12. BOND INVESTMENT NOT ACTIVELY TRADED IN 9. 9. HELD-TO-MATURITY FINANCIAL ASSETS Other cash flows received on retained interests on retained Other received cash flows Service revenue $ 19,137 $ 30,788 10,670 17,556 Certificates of deposits in Central BankCertificates of deposits in Central bondsGovernment Financial bonds bonds Corporate $158,315,000 $173,000,000 6,167,540 6,859,208 Domestic privately - held common stocks Foreign privately - held common stocks Beneficiary certificate and asset backed securities Preferred stock of Taiwan of stock Preferred High Speed Rail Co. Chang-Yin InsuranceChang-Yin Broker Co., Ltd. Chang-Yin InsuranceChang-Yin Agent Co., Ltd. Non-listed company Non-listed 477 10,808 646,075 751,546 $ 94,582 Ζ̮Ą 49,673,612 $ 8,278,273 $ 38,747,089 ޙ̈́ޏٗ $ 184,164,623 $ 999,365,926 Ζ̮ĂЕΖ̮ĂЕΖ̮ĂЕ Ζ̮ĂЕ Ζ̮ĂЕ Ζ̮Ą 5,750,705 ˿г 4,612,151 ˝˩αѐ˩˟͡ˬ˩˘͟ ˝˩αѐ˩˟͡ˬ˩˘͟ ˝˩αѐ˩˟͡ˬ˩˘͟ ˝˩αѐ˩˟͡ˬ˩˘͟ ˝˩αѐ˩˟͡ˬ˩˘͟ $ 17,203,527 8,102,1008,102,100 8,102,100 8,102,100 108,475 402 Ζ̮̈́ 600,410 71,36927,038 720,081 102,661 898,924 710,955122,756 643,279 320,266 10,712 (71,369) (85,695) 38,546,878 $ 94,487 1,466,1803,823,7997,270,245 2,003,253 3,207,429 6,912,003 $ 7,162,459 1,969,345 1,506,194 $ 160,424 $ 156,374 1,697,9895,236,632 1,776,361 5,252,847 $ 200,398 $ 511,541 $ 40,772,769 Ζ̮̈́ Ζ̮̈́ Ζ̮̈́ Ζ̮̈́ 39,719,73081,689,105 49,852,082 82,976,361 $ 162,085,482 $ 26,778,424 $ 25,014,784 ޙ̈́ޏٗ 176,591,530227,894,645581,728,770 169,913,282 215,811,087 571,163,302 $ 35,734,532 $ 41,726,709 $ 1,022,848,401 5,701,075 ˝˩̣ѐ˩˟͡ˬ˩˘͟ ˝˩̣ѐ˩˟͡ˬ˩˘͟ ˝˩̣ѐ˩˟͡ˬ˩˘͟ ˝˩̣ѐ˩˟͡ˬ˩˘͟ ˿г 4,536,947 6,435,400 6,435,400 17,600,470 ˝˩̣ѐ˩˟͡ˬ˩˘͟ $ 17,128,322 $ 12,591,375 $ 83,775 $ 12,591,376 $ 83,774 ᇈќعྍࢦҤᆧࣃᓁᗝٕЯྤயăಡᆿ̈́߆ ˝˩̣ѐ̈́˝˩αѐ˩˟͡ˬ˩˘͟Ă˿гࢦҤ Ζ̮ĂЕྤயഴຫຫεี˭Ă֭ͽஐᗝܑ྿Ą Ζ̮ĂЕྤயഴຫຫεี˭Ă֭ͽஐᗝܑ྿Ą ˝˩̣ѐ̈́˝˩αѐ˩˟͡ˬ˩˘͟ώҖ൴Җ̝Ξᖼ ፉܲݡயϠਫ਼ᖼӀৈצЯ̶ٚޘώҖ˝˩̣ѐ т˭ĈځᒉຽྤயĂ ܧؠྤய̈́ٺࢦҤᆧ ࣃᓁᗝ̶Ҿࠎ ඈЯ৵҃ѣഴ͌Ă˝˩̣ѐ̈́˝˩αѐ˩˟͡ˬ˩˘ ͟ࢦҤᆧࣃዶᗝ̶ҾЕޙ̈́ޏࢦҤĂགྷგ፟ᙯ८ؠ̝˿гၱٗ ޙ̈́ޏѐᏱந̱ٗ˩̱ٺѐă̱˩ѐă̱˩αѐă̱˩˝ѐă˛˩̱ѐă ˣ˩ѐăˣ˩˘ѐăˣ˩̱ѐ̈́˝˩ѐֶፂπӮгᝋ ୧ּᏱநᇴѨ˿гࢦҤĂ֭˝˩ ̝ᆧࣃඁ౯̶Ҿࠎ ีϫ α˩̣ѐặ˩ѐặ˩˘ѐặ˩˛ѐặٺα˩̣ѐặ˩ѐặ˩˘ѐặ˩˛ѐặ ώҖഅٺώҖഅ α˩̣ѐặ˩ѐặ˩˘ѐặ˩˛ѐặٺώҖഅ )) ) хഠ̈́๗ഠ ᑕ;ഠี δҖ̈́ᅙҖТຽхഠ ᒉຽྤயܧ ˘ ˘ ؠഇхഠĄ 14,326 ( ឰؠഇхಏ̶Ҿࠎ ᒉຽྤயܧ ؠྤய ˩˛ăхഠ̈́๗ഠ ˩̱ăᑕ;ഠี ˩̣ăδҖ̈́ᅙҖТຽхഠ ᒉຽྤயܧαă˩ ͚ைхഠ ߿ഇхഠ ؠഇхഠ ᐼᄊхഠ ๗āāഠ δҖхഠ ፉܲݡ ഴĈࢍഴຫ ;ഠี ࣄ১ྤய ยཉྤய āāצٚ ܛхܲᙋ ᑕ;ќഠ ᑕ;ഠ ᑕ;ϡ ᑕ;Ӏि ٚҸைഠ ᑕ;۵िࡓӀ āā රฎ߆ᖼхഠ̚ ٸٵᅙҖТຽхഠ ͚ᅙҖТຽ ᅙҖТຽ PROPERTY AND EQUIPMENT .13 דᏉๅܛדᏉๅܛˣă˩ ഇᒉྻٙᅮྤ December 31ܜҋѣྤώͧதၱᚯନ̚چώҖࠎ೩ 2006 2005 ѐˬ͡˩̣͟ࢬᗝ൴Җາέ။෮ֿᆆ̮ௐ˘˩˝ٺĂܛ Accumulated Carrying Carrying Cost т˭Ĉ Depreciation Value ValueځĂ൴Җഇࢨ̣Ҍ˩ѐĂדᏉๅܛഇѨึҜ˘ ˝˩̣ѐ ˝˩αѐ ˩˟͡ˬ˩˘͟ ˩˟͡ˬ˩˘͟ Land $ 17,092,967 $ - $ 17,092,967 $ 17,096,509 ̣ѐഇĂՏѐ;ि˘ѨĂѐӀத3.30%Ă Buildings 7,721,258 (2,435,007) 5,286,251 4,701,518 1,000,000 $ 1,000,000 $ דϥ ഇ͟Ĉ96.03.15 Machinery equipment 3,961,080 (1,933,140) 2,027,940 2,018,543ז ˛ѐഇĂՏѐ;ि˘ѨĂѐӀத3.85%Ă Transportation equipment 641,959 (499,227) 142,732 109,693 4,000,000 4,000,000 ד˙ ഇ͟Ĉ98.03.15 Miscellaneous equipment 1,438,483 (1,219,676) 218,807 138,192ז ѐഇĂֶώҖ˘ѐഇؠᐼ፟જӀதΐ Leasehold improvements 557,186 (483,359) 73,827 65,764˛ ഇ͟Ĉ 14,000,000 14,000,000 Construction in progress and orderedז1.00%ֶ͡၁ᅫ͇ᇴࢍिĂ דʹ 228,690 - 228,690 848,931 98.03.15 machines ˩ѐഇĂՏѐ;ि˘ѨĂ݈̣ѐѐӀத Prepayments for building - - - 45,825 ഇ͟Ĉ 1,000,000 1,000,000זѐѐӀத4.60%Ặޢ3.90%Ă ד˚ 101.03.15 $ 31,641,623 $ (6,570,409) $ 25,071,214 $ 25,024,975 $ 20,000,000 $ 20,000,000 Chang Hwa Bank revalued its land in years 1956, 1961, 1962, 1968, 1970, 1971, 1975, 1980, 1987, 1991, 1992, 1997, and 2001 and ˩˝ăᑕࢍੜЃܛๅᑕࢍੜЃܛๅ revalued its buildings in year 1977. The total amount of revaluation ᄮڱϡֶܼჟზܛੜЃ̝ڱώҖቁؠග;ੜЃᏱ increments recognized for land and buildings was $17,600,470 ЕĂ࠹ᙯྤੈ೬ᜨт˭Ĉ thousand and $108,475 thousand, respectively. ๅ̝አ༼т˭ĈܛᄃᑕࢍੜЃڶې೩ᇥܛੜЃૄ(˘) ˝˩̣ѐ ˝˩αѐ Total revaluation increment decreases as properties were sold, ˩˟͡ˬ˩˘͟ ˩˟͡ˬ˩˘͟ disposed and called-in by local government. The balances of total ̚ ග;ཌྷચ ර āāߊග;ཌྷચ ($ 2,055,546) ($ 1,233,763) revaluation increments as of December 31, 2006 and 2005 were as ϔ āāܧߊග;ཌྷચ (1,366,803) (2,534,358) follows: ઼ āā᎕ග;ཌྷચ (3,422,349) (3,768,121) December 31 (āāϏֽᓟྤᆧΐ̝ᇆᜩᇴ (1,046,324) (887,269 ˝ 2006 2005 ˩ āāࢍග;ཌྷચ (4,468,673) (4,655,390) ̣ Land Buildings Land Buildings ੜЃૄܛྤய̳πᆊࣃ 1,196,248 1,406,568 ѐ Property and equipment $ 12,591,375 $ 83,775 $ 12,591,376 $ 83,774 (3,248,822) (3,272,425) ڶېą ೩ᇥ ѐ ϏᄮЕ࿅ഭّஐྤய (2,380) (2,624) Non-operating assets 4,536,947 10,712 4,612,151 10,808 ಡ ϏᄮЕੜЃܛຫৈ 951,580 867,177 $ 17,128,322 $ 94,487 $ 17,203,527 $ 94,582 (āā (8,260) (7,342 ᑕࢍੜЃܛๅ ($ 2,331,485) ($ 2,391,611) Reserve for land revaluation increment tax amounted to 128 $5,701,075 thousand and $5,750,705 thousand as of December 31, ( ˟ ) ၟҌ˝˩̣ѐ̈́˝˩αѐ ˝˩̣ѐ ˝˩αѐ 2006 and 2005, respectively. ˩˟͡ˬ˩˘͟ ˩˟͡ˬ˩˘͟ ˩˟͡ˬ˩˘ͤ͟ĂώҖ (ߊග; ($ 2,349,658) ($ 1,286,140̝ڱᖚ̍ੜЃᏱ 14. OTHER MISCELLANEOUS ASSETS (ˬ)ੜЃܛග;ཌྷચ̝నĈ December 31 2006 2005 ˝˩̣ѐޘ ˝˩αѐޘ Զனத 2.50% 2.50% Refundable deposits $ 200,398 $ 511,541 Ϗֽᓟྤͪᆧΐத 2.50% 2.00% Collateral and residuals taken over 71,369 720,081 ੜЃૄܛྤயഇԸྤಡ࿌த 2.50% 2.50% Accumulated impairment (71,369) (85,695) Prepayments 1,697,989 1,776,361 Leased assets 5,236,632 5,252,847 (α)ஐੜЃܛјώĈ Idle assets 27,038 102,661 ˝˩̣ѐޘ ˝˩αѐޘ Others 402 477 ચјώ $ 557,449 $ 568,781ڇ Ӏिјώ 109,447 109,518 $ 7,162,459 $ 8,278,273 ੜЃૄܛྤயഇಡ࿌ (32,289) (40,801) Chang Hwa Bank recognized a gain from reversing impairment ࿅ഭّྤயᝊዚᇴ 24,503 10,542 loss when related collateral and residuals taken over were sold in $ 659,110 $ 648,040 2006. The gain is $14,326 thousand and recorded under loss on asset .ᝋৈ impairmentڌᝋৈ۵ڌă۵˩˟ ώҖ˝˩̣ѐ˩˟͡ˬ˩˘͟ᗝؠྤώᗝࠎາέ။ 65,000,000Ζ̮Ăᗝؠ۵ᇴ6,500,000Ζ۵Ă၁ќྤώᗝࠎ 15. DUE TO BANKS AND CENTRAL BANK າέ။62,094,756Ζ̮Ă̶ࠎ఼۵4,809,476Ζ۵̈́˙ December 31 পҾ۵1,400,000Ζ۵ĂՏ۵ࢬᗝӮࠎ10̮Ą 2006 2005 ˣ˩˝ѐ˝͡มͽՏ۵40̮໕ᆊ൴ҖϥপٺώҖ Due to Central Bank $ 160,424 $ 156,374 ણΐ̙ΞᖼೱপҾ۵Ă൴Җ Dueue to other banks 39,719,730 49,852,082ܧҾ۵150,000Ζ۵Ăࠎ᎕ ѐ˝͡ˣ͟൴Җഇ႕Ă၁ᅫ൴ Bank overdraft 1,969,345 1,506,194̣˩˝ٺഇࢨࠎ̱ѐĂ̏ Call loans from other banks 81,689,105 82,976,361 ˝ٺҖᆊॾՏ۵າέ။40̮ќаͤϥপҾ۵˯ξĂ֭ Deposits transferred from the Postal Bureau 38,546,878 49,673,612 ѐ˩͡˟͟ᏱநតՀ൳ĄϥপҾ۵۵िதࠎѐӀ̣˩ 184,164,623 $ 162,085,482 $ ۵ޘத6.1%Ăֶ၁ᅫ൴ҖᆊॾࢍზĂ˝˩αѐ̈́˝˩̣ѐ ANNUAL REPORT 2006 129 ,000 ,000 ,000 ing ing ,000 ,000 ance ance related related 1,000,000 751,546 646,075 1,000,000 31 20,000,000 1,000,000 20,000,000 $ 20,000,000 $ 999,365,926 $ 38,747,089 ,000 ,000 ,000 $ 1,000,000 ,000 4,000,000 ,000 14,000,000 December 31 December 31 December December 31 December 1,000,000 20,000,000 1,000,000 4,000,000 898,924 600,410 14,000,000 20,000,000 $ 20,000,000 2006 2005 1,000,000 2006 2005 $ 1,000,000 $ 40,772,769 $ 1,022,848,401 held December , maturity date:: maturity date:: , , maturity date:: maturity date:: , as of December March 15, 2012 March 15, thousandthousand held held March 15, 2009 March 15, %, maturity date: %, maturity date: : March: 15, 2012 for the last 5 the for : March: 15, 2009 % for the last 5 ,000 thousand held , interest payable month- payable interest , s 1,466,180 2,003,253 %, interest payable month- subsidiaries as of December ) , and 4.60%, for the last 5 s %, and 4.60% for the last 5 s 7,270,245 6,912,003 s , 2006) , annual interest 3.30%,annual interest maturity date: March 15, 2007 March 15, annual interest 3.85%,annual interest maturity date: maturity date:years, March 15, 2012 March 15, 2009 March 15, ’s variable one year regular savings’ savings’ regular one year variable ’s +1.00%,rate interest payable month- actual to number of ly according maturity date:days, March 15, 2009 (including $200,000 thousand held other subsidiariesby as of December 31, 2006) the first 5 years for rate nual interest is 3.90%, and 4.60% for the last 5 Under Defined Benefit Pension Chang Plan, Hwa Bank Chang Chang Hwa Bank issued $20,000 million subordinated bank At At December 31, 2006 and 2005, Chang Hwa Bank issued Bank 5-year term, interest payable yearly, yearly, payable interest term, 5-year 7-year term, interest payable yearly, yearly, payable interest term, 7-year 7-year term, based on Chang Hwa Bank Hwa based on Chang term, 7-year 10-year term, interest payable yearly, an- yearly, payable interest term, 10-year ccounts payableccounts $ 26,778,424 $ 25,014,784 funds, the funds, outstanding balance and details of subordinated bank The based on an actuarial pension costs valuation. recognizes is as follows: information notes with terms from five to ten years on March 15, 2002 to enh notes with on to terms ten years from five March 15, its capital adequacy ratio and raise medium to long-term operat as follows: are notes convertible convertible time deposits of $6,435,400 thousand and $8,102,100 thousand, respectively, recorded as time deposits. as time deposits. recorded respectively, thousand, Accounts payable customersCollections for expenses Accrued payableInterest Acceptances Dividends payableOther payables 710,955 643,279 3,823,799Checking deposit 122,756Demand deposit 3,207,429 Time deposit depositSavings Remittances 320,266 $ 35,734,532 176,591,530 $ 41,726,709 227,894,645 581,728,770 169,913,282 215,811,087 571,163,302 19. 19. PENSION EXPENSE 17. 17. DEPOSITS 18. BONDS PAYABLE 16. 16. PAYABLES B C A D Note Rate and Maturity Interest Date 2006 2005 (288,360) $ 2,574,937 ˝˩αѐޘ Ζ̮ĄΖ̮ĄΖ̮ĄΖ̮Ą Ζ̮Ą Ζ̮̈́˿гࢦҤ Ζ̮̈́˿гࢦҤΖ̮̈́˿гࢦҤΖ̮̈́˿гࢦҤ ໕ᆊ൴ҖĂ۵ ̮໕ᆊ൴ҖĂ۵ ̮໕ᆊ൴ҖĂ۵ ̮໕ᆊ൴ҖĂ۵ ̮໕ᆊ൴ҖĂ۵̮ ؠ̳᎕ڱؠ̳᎕Ζ̮ăڱؠ̳᎕Ζ̮ăڱΖ̮ă (296,298) $ 2,680,387 26.1226.1226.1226.12 ˝˩̣ѐޘ 36,515,754 36,515,754 36,515,754 36,515,754 $ 2,976,685 $ 2,863,297 34,756,183 34,756,18334,756,183 332,849 332,849 Ζ۵ĂͽՏ۵ Ζ۵ĂͽՏ۵ Ζ۵ĂͽՏ۵ Ζ̮ᑓྃᓪຫ Ζ̮ᑓྃᓪຫ Ζ̮ᑓྃᓪຫ ڌ۵ޘĂ၁ᅫ൴ҖᆊॾࢍზĂࡶ༊ѐ ڌ۵ޘĂ၁ᅫ൴ҖᆊॾࢍზĂࡶ༊ѐ ڌ۵ޘĂ၁ᅫ൴ҖᆊॾࢍზĂࡶ༊ѐ Ζ̮ăྤώ̳᎕ Ζ̮ăྤώ̳᎕ 1.8%1.8% 168,000 168,000 1,400,0001,400,000 ώҖ˝˩̣ѐޘ࠳ዶ̶੨ᛉ९ĂၟҌົࢍरߤ८ ᓪຫᇥྃᛉ९Ăགྷְົᄃޘ۵Ӏࠎ ώҖ˝˩αѐܛனٸ۵िࡓӀͽ൴ڌᗝ൴ ώҖౢఢؠĂ۵ܛఢؠĂͽ࿅ைࢬ΄ڱ࠹ᙯ̈́ڱؠ࠳ዶ̳᎕Ϗ྿ྤώᓁᗝٕҋѣྤώᄃࢲᐍّ ֶᙋϹڱ ഇఱԊ̝ఢؠĂ˯ξă˯ᕢ̳Φ̶ࠁΞ̶דᙋֶ ՙᛉ̶ࠁົ૱ڌ۵िăࡓӀĂϤְົ೩ኛ۵ڌ۵ ྍٺְăႾ၅ˠ࿌౻Ѻ̶̝˘ҌѺ̶̝˘ą̣Ă֭ ࣶ̍ࡓӀѺ̶̝˘ҌѺ̶̝ˣĂ֭ᝋְົ ̝Ą ྍ˯˭ࢨ̝ቑಛ̰ѐՙؠĄ ˯˭ࢨ̝ቑಛ̰ѐՙؠĄٺᝋְົ ͘ᜈஐќৈ ࠳ዶ̶੨̈́۵Ӏ߆ඉ 1. .ᆧྤռ๒͞ё൴Җ 2. 3ܛαѐ˩͡ͽ઼̰ன˩˝ٺΩώҖ ̝ٙ Ķ̳ฟྤੈ៍ീ৭ķߤྙĄٽϹדϏགྷְົ఼࿅Ăѣᙯְົ఼ ࿅ᑢᛉ̈́ՙᛉ࠳ዶ̶ࠁଐԛĂኛҌᄂ៉ᙋإಡӘ३ͤ͟Ă 1,258,722 ՙᛉͽ᎕࠳ዶົڌ۵Ӏ̙࿅Ѻ̶̝ˬ ˩Ăዶࠎ۵ை۵ӀĄ ۵ܛგ፟ᙯఢؠͧதΐ˘࣎Ѻ̶ ᕇॡĂ݈ࣧᑕአፋࠎனٺĂؕྍѨᖼˢ̝ྤώ̳᎕ ᇥ·ྤώĄ Ă۵ை۵Ӏͽ̙࿅ΗᇴࠎࣧĄҭώҖҋѣྤώ ᄃࢲᐍّྤயͧதҲޘѨ˘ѐ̝ޢᗝ൴Җ۵ை̝ٙ໕ ᗝᇥ·ྤώॡĂᑕܶѩྤώ̳᎕གྷ̳Φ൳გ፟ᙯ ८ࣞ൳ܛᗝĂ̙࿅၁ќྤ ώᗝѺ̶̝˩Ą҃ͽ࿅ைࢬܛᅳᙑᄃ̝ٙٙயϠ̝ྤώ̳ ᎕ᇥ·ྤώĂՏѐᇥ·̝Ъࢍצδგ፟ᙯ̝ఢؠᏱநĄ Җ۵ை̝ٙ໕ᗝ̈́̈́̚ڱ۵Ӏ̶̝੨Ă ֶᅙҖܛఢؠ݈Ăனڱᝋৈഴีᇴᗝѣਫ਼ᖼॡĂ ಶਫ਼ᖼొ̶̶ࠁ࠳ዶĄ ྤயͧதϏ྿ᅙҖڌ۵ޢᗝĂҋ݈ഇϏ̶੨࠳ዶ೩Е࠹Тᇴᗝ̝পҾ࠳ ዶ̳᎕̶̙ࠁĄܛี ᝋৈഴڌ࠳ዶᄃ݈ഇϏ̶੨࠳ዶ೩Е ࠹Тᇴᗝ̝পҾ࠳ዶ̳᎕Ăᛳ݈ഇ᎕̝۵ޢඁޘᏉથݡϏ၁னຫεă᎕ೱზ አፋᇴඈğҋ༊ѐܛᗝĞтܛᝋৈഴีڌ ൴Ϡ̝Е۵ޘௐα˩˘୧ௐ˘ีఢؠĂಶ༊ѐڱٽ Ϲדؠ࠳ዶ̳᎕γĂᑕֶᙋڱ೩ڱ੨࠳ዶॡĂੵֶ ĂᑕᐹА̶ࠁϥপҾ۵̈́˙পҾ۵̝۵िĂѨ ಶዶᗝ˭Еఢؠ̶ࠁ̝Ĉޢ ೩ЕপҾ࠳ዶ̳᎕΄ڱؠ࠳ዶ̳᎕ֶ̈́ڱ೩ЕѺ̶̝ ˬ˩ࠎڱᓪຫĂГֶᅙҖޘѐـٙඁ̈́ᑓྃͽ ᆧࣃ౯ ᘳৼڱՙზѣ࠳ዶॡĂᑕֶޘᘳৼ ώҖ̳ΦౢఢؠĂѐڱՙზѣ࠳ዶॡĂᑕֶޘᘳৼ ώҖ̳ΦౢఢؠĂѐڱՙზѣ࠳ዶॡĂᑕֶޘώҖ̳ΦౢఢؠĂѐ ۵Ӏ߆ඉ۵Ӏ߆ඉ۵Ӏ߆ඉ ))) ))) ˘ ˘ ˟˟ िதࠎѐӀத ( ) পҾ۵˙ Ҍ൴Җ႕ˬѐ ̝ഇม̰Ăᖼೱࠎ఼۵Ă൴Җ႕ˬѐॡĂϏᖼೱ̝˙ পҾ۵ืБᇴᖼೱࠎ఼۵Ąޢ఼۵۵ӀĂͽ˙পҾ۵Տ۵۵िᄃ ఼۵Տ۵۵Ӏ۰ࠎ̶ࠁૄᖂĂ۵ि̙᎕Ăѣܑ ՙᝋăᏴᓝᝋ̈́జᏴᓝᝋĄҋ൴Җ႕˘ѐٸ۵िĄ ૱ົՙᛉѣ൴̝ٸĂΩࢎૄ͚͟;ᑕ൴ޢٚᄮՙზ३ܑ ົڌՙზтѣ࠳ዶĂགྷ˝˩̱ѐ۵ޘώҖ˝˩̣ѐٺिĂ ˟˩˟ă͘ᜈஐќৈ ă࠳ዶ̶੨̈́۵Ӏ߆ඉ˘˩˟ ͘ᜈќˢ ͘ᜈϡ ˟˩ˬăώഇ൴Ϡ̝ϡˠăԶᖞ̈́ᝊዚϡώഇ൴Ϡ̝ϡˠăԶᖞ̈́ᝊዚϡ (a) The status of the employee pension plan as of December 31, :ώഇ൴Ϡ̝ϡˠăԶᖞ̈́ᝊዚϡֶΑਕҾຉᓁт 2006 and 2005 is summarized below ˭Ĉ 2006 2005 ˝˩̣ѐޘ ˝˩αѐޘ Actuarial present value of benefit obligations ϡˠϡ Vested benefits $ (2,055,546) $ (1,233,763) $ 6,020,793 $ 5,974,558 āāᓟྤϡ Non-vested benefits (1,366,803) (2,534,358) āā౻ઉܲϡ 232,680 254,757 āāੜЃܛϡ 776,499 1,632,480 Accumulated benefit obligations (3,422,349) (3,768,121) Additional benefits estimated for future (āāϡˠϡ 69,777 183,740 (1,046,324) (887,269 compensation increase Զᖞϡ 703,436 636,243 ᝊዚϡ 47,215 44,905 Projected benefit obligations (4,468,673) (4,655,390) Pension funds at fair value 1,196,248 1,406,568 (αăٙඁ̈́ඁЪ˘࠹ᙯྤੈٙඁ̈́ඁЪ˘࠹ᙯྤੈ Projected benefit obligation in excess of plan assets (3,272,425) (3,248,822˩˟ (ᒉӀְຽٙඁҤზт˭Ĉ Unrecognized net transition obligations (2,380) (2,624(˘) ˝˩̣ѐޘ ˝˩αѐޘ Unrecognized gains or losses 951,580 867,177 ඁ݈ஐӀĞຫğ $ 14,324,496 ( $ 47,942,564) Othersthershers (8,260) (7,342) ϖ˳ّमளĈ āāҺඁ̝Ըྤќৈ (42,765) (68,525) Accrued pension cost $ (2,331,485) $ (2,391,611) āā̶ᗓኝඁӀिќˢ (157,691) (102,706) (b) The vested benefits of pension plan as of December 31, 2006 ٙ (87,100) (211,393) and 2005 amounted to $2,349,658 thousand and $1,286,140ٽϹדāāઃᇈ̝ᙋ (Ꮙຽચ̶ҖٙҺඁ (787,208) (740,210ܛāā઼ᅫ .Ӏৈ (235,891) (109,065) thousand, respectivelyٽāāҺඁ̝˿гϹ āāāā (110,149) 560,656 (c) The assumptions used in the actuarial computations are :ᇶॡّमளĈ summarized as follows āāᖚ̍Ӏ (18,000) (18,000) 20066 2005 āāϏ၁ᅫ೩ᇥੜЃܛਫ਼ᖼᇴ (60,012) - ̚ āāЧี೩хࢨᇴ 1,212,197 3,910,940 Discountiscount rate 2.50% 2.50% (ර āāāā 156,951 (180,125 Rate of increase in future compensation levels 2.50% 2.00% - (14,194,828) ٯϔ ᓪຫљ Expected rates of return on plan assets 2.50% 2.50% (ኝඁٙᗝ - (44,900,992 ઼ ˝ ඁāāத 25% 25% (d) Net periodic pension costs in 2006 and 2005 were as follows: Ҥࢍᑕৼٙඁ -- 2006 2005 ˩ - ΐĈҲඁٙඁϡ 87,231 ̣ ѐ āā̶ᗓኝඁඁᗝ 27,239 16,475 Service cost $ 557,449 $ 568,781 ᇴ 262,574 156,108 Interest cost 109,447 109,518ٯą āāঔγ̶Җ̙љ (ѐ āāᅍؼٙඁϡĞӀৈğ 2,882,671 (11,618,326) Expected return on pension funds (32,289) (40,801 ಡ āāϏ̶੨࠳ዶΐᇈ10% - 65,368 Amortization of net transition assets 24,503 10,542 (āāāā (19,636) (46,435 $ 3,240,079 ($ 11,426,810) $ 659,110 $ 648,040 ᅍؼٙඁྤய̈́ๅ̝̰टт˭Ĉ 20. CAPITAL STOCK(˟) 130 ˝˩̣ѐ ˝˩αѐ As of December 31, 2006, Chang Hwa Bank’s authorized and ˩˟͡ˬ˩˘͟ ˩˟͡ˬ˩˘͟ ᅍؼٙඁྤய registered capital is $65,000,000 thousand, divided into 6,500,000 thousand shares at $10.00 dollars par value. Chang Hwa Bank’s 19,574,066 $ 16,047,698 $ ٯāāᓪຫљ āāЧี౯೩х̝Ϗ၁னຫৈ 10,018 9,389 total outstanding 6,209,476 thousand shares was constituted by ӑࢨᇴ 1,788,522 1,616,883 4,809,476 thousand common shares and 1,400,000 thousand sharesٯāā౯ āāϏ೩ᇥੜЃܛๅ 497,967 - of preferred stock. āāᖚ̍Ӏ 9,000 13,500 Chang Hwa Bank issued 150,000,000 shares of preferred stocks ഴ 24,568 24,568 - Type A in September 2000, at the price of $40.00 per share withٯāāԸྤ ᄮЕԸྤຫε -956 the par value of $10.00. The total increase in capital of preferredڱāāᝋৈ 303,363 303,980 āāϏ၁னԸྤຫε stocks was $1,500,000 thousand, and additional paid in capital was (ෞᆊ (1,065,047) (1,065,047ٯāā౯ $4,500,000 thousand. The preferred stock issued is cumulative, 17,616,089 20,478,295 nonparticipating and unconvertible. The issuance period was 6 years. ᅍؼٙඁๅ The preferred stocks - Type A was due on September 8, 2006. Chang āāϏ၁னҸೱӀৈ 47,378 41,953 ᏉથݡϏ၁னӀৈ 15,040 - Hwa Bank has redeemed all preferred stocks - Type A at the priceܛāāࢉϠّ 62,418 41,953 $40.00 per share and updated the registered capital on October 2, ஐāāᗝ $ 17,553,671 $ 20,436,342 2006. The dividend rate of preferred stocks - Type A was 6.1%, and the dividend was calculated based on the actual issuance price and ώҖᒉӀְຽٙඁඕზϦಡ̏؇ඁॕ፟ᙯ८ؠҌ˝˩ paid in cash. The distribution of the 2006 and 2005 earnings will(ˬ) ˟ѐޘĄ be approved when the Board of Directors recognized the 2006 net α)ඁЪ˘࠹ᙯྤੈ income in 2007. The distribution date of dividends will be decided) ˝˩̣ѐ ˝˩αѐ later. ͟˘˩ˬ͡˟˩ ͟˘˩ˬ͡˟˩ ඁᗝ͗ዶᗝٯΞљڌ۵ $ 257,565 $ 52,981 In order to improve Chang Hwa Bank’s financial structure and strengthen its self-owned capital, the Board of Directors decided to increase the cash capital privately by issuing 1,400,000 thousand ˝˩̣ѐޘ (ࢍ) ˝˩αѐޘαѐޘѐޘ (၁ᅫᅫ) ࢍĞ၁ᅫğ࠳ዶ̶੨̝ඁᗝ preferred stock - Type B shares, at the price of $26.12 with the $10.00 - த 2.26%ͧٯљ par value and 1.8% as annual dividend rate on June 24, 2005. It (̣)Ϗ̶੨࠳ዶ࠹ᙯྤੈ is non-accumulated and the amount of distribution is based on ˝˩̣ѐ ˝˩αѐ the higher of Type B preferred stocks dividend or common stock ˩˟͡ˬ˩˘͟ ˩˟͡ˬ˩˘͟ dividend, should a common stock dividend distribution be decided ˣ˩˛ѐͽޢѐޘ $ 11,377,055 ($ 36,182,905) ANNUAL REPORT 2006 131 e n d es es ve he ter ter ter ter lso, lso, t in the red ang ation ation convert convert the right the right ype B can deficit, pay income taxes, reserve pay 30% income deficit, taxes, as and legal reserve, Chang Chang Hwa Bank’s major part of dividends and bonus are The Board of Directors and shareholders to resolved remove distribution of the 2006 earningsThe has not been approved The maximum cash dividend distribution is regulated by the by maximum cash dividend distribution is regulated The According to the Securities Exchange Law and other laws, According According to the regulations of the SFB, earnings of listed and resolved in the general shareholders’ meeting. meeting. shareholders’ in the general and resolved are authorized to exercise their discretion to determine the level of within compensation, the range of 1% to 1.5%, on a basis. yearly to exercise their discretion to determine the level of within compensation, the range of 1% to 8%, on a yearly basis. appropriated appropriated in the form of cash, and stock dividends shall not dividends. will be stock others dividends, total the $36,515,754 thousand of deficit as of December 31, 2005 by transferring to $332,849 thousand of retained earnings, $1,258,722 thousand of legal $34,756,183 reserve, thousand of capital reserve and $168,000 thousand of land revaluation reserve. by the Board of Directors the as date of 2007, of February 16, be more than half of total dividends. When the total amount of capital or the risk-based capital ratio is lower than the regul ratio plus the 1%, cash dividends shall not be more than 30% of accompanying independent report. auditors’ Information of earnings distribution can be accessed online through the Market Observation Post System (MOPS) on the Web site of the Taiwan Exchange. Stock the transfer is approved by the authorities concerned. by is approved the transfer capital can be used to increase the capital in the next year af according according to Securities Exchange section Law, 41 reserve No.1, the amount equal to any valuation or contra-account in the equity stockholders’ in the fiscal year (such as unrealized loss on valuation of financial cumulative instruments, translation from the net etc.) income and prior unappropriated adjustments, earnings as special reserve. If the valuation or contra-accoun equity shareholders’ belongs to prior the periods, same amount from prior period earnings should be reserved as special reserv be distributed. could Banking Law and authority if the legal reserve has not reached the total amount of capital or the risk-based capital ratios ha of the Banking the regulation not reached Law. the total of capital surplus (from donated assets received and additional paid-in capital) transferred to capital cannot excee 10 percent of issued capital every The year. additional paid-i corporations corporations shall not only be set aside as legal reserve but a and cannot be distributed. If the valuation or contra-account of equity shareholders’ is the reversed, special reserve amount appropriate appropriate special reserve as required by T other regulations. remaining earnings are first distributed as dividends for prefer as dividends for first distributed earnings are remaining stocks-Type A and B and then distributed as follows: as follows: A and B and then distributed stocks-Type (1) as bonus, Shareholders’ proposed by the Board of Directors (2) Director & supervisor the compensation, board of directors (3) Employee bonus the board of directors are authorized Hwa Hwa Bank’s net earnings are to be used to offset the prior year’s (b) Dividend policy (a) Chang Hwa Bank’s articles of incorporation stipulate that Ch by the general shareholders’ meeting in that year. It also has year. in that meeting shareholders’ the general by T stock - Preferred and being voted. voting, of participating, B are to required Type stock - preferred Unconverted issuing. of issuing. years after three stock common into be converted into common stocks from one year to three years af 21. 21. DISTRIBUTION OF EARNINGS AND DIVIDEND POLICY ࢍ Ζ ΖΖΖ Ζ Ζ 13% 8,000 ӀதડมƦ ӀதડมƦ 11,377,055 11,377,055 11,377,055 11,377,055 ő Ζ̮ăඁޢ৷ຫ Ζ̮ăඁޢ৷ຫ Ζ̮ăඁޢ৷ຫ ഠƦٸҫ ҫхഠƦ ᄃώ̳Φ̝ᙯܼ ഠٸࢍზγĂዶ۰ܼᄃ˘ਠ ഇϐዶᗝ ഇϐዶᗝ Ζ̮ͽ˭ĂܼͽѐӀத Ζ̮ăඁޢ৷ৈ Ζ̮ăඁޢ৷ৈ Ζ̮ăඁޢ৷ৈ 47,942,564 47,942,564 38,300,864 4.64 1.44~10.00 ˠְܑˠ ੨ઊٕ˟ඈᏐͽ̰ᙯܼ̝Ꮠᛳٕ̳Φڱ೬ᜨķͽ̈́ώҖְă ̝ٽˠႾ၅ˠĞҋ˝˩αѐ˩˟ ͡ˬ˩͟ྋЇğ ֶੑચົࢍௐཱི̱ĶᙯܼˠϹڱˠְĞҋ˝˩αѐ˩˘͡ ˟˩̣͟ྋЇğ ܼώҖ̝ڱෞᆊ̝జԸྤ̳Φ ܼώҖ̝ڱෞᆊ̝జԸྤ̳Φ ܼώҖଳᝋৈڱܑˠ ܼώҖଳᝋৈ ٕܜˠႾְְ̝ڱࠎώҖܜώҖְăႾ၅ˠᄃགྷநˠ̈́˟Ꮠ ඈᏐᛳ ְܼ 2,577,844 0.26 0~13 $ 12,497,674 1.48 0.55~7.63 2.3% 480 $ 1,404,424 0.14 0~13 ) 14,324,496 14,324,496 ˬ͡˟˩Ζ̮ͽ˭۰Ă˝˩̣ѐ̈́˝˩αѐ Ăੵͽ߹఼дγΐᝋޢĂੵͽ߹఼дγΐᝋ Ζ̮ĂഴੵপҾ۵۵ӀޢΖ̮ĂഴੵপҾ۵۵Ӏ ᙯܼˠЩჍ ᙯܼˠЩჍ ٸώҖ၆˯ฟҋˠְăႾ၅ˠ̈́གྷநˠ̝ ώҖ၆˯ฟᙯܼˠְăႾ၅ˠ̈́གྷநˠ̝Җ 800 ͗୧І࠹ТĄ ̮̈́ ᗝ̶Ҿдܛഠ̈́ঐّഠͷޏზĂ࿅ొ̶߿ഇᐼᄊхഠӀதࢍზγĂዶ۰ ܼᄃ˘ਠхഠ͗࠹ТĄ ഠࡶᛳᔉ ࣶᐼᄊхഠܛᗝд ˩˘͟ӮѐӀத āāഠٸ хāāഠ ᙯܼˠЩჍ ٽᙯܼˠϹ Տ۵࠳ዶ ˩˝ώҖຫৈܑٙЕϯ̝ૄώՏ۵࠳ዶĂ̶ܼҾͽ 2. 1. ีְٽᄃᙯܼˠม̝ࢦ̂Ϲีְٽᄃᙯܼˠม̝ࢦ̂Ϲีְٽᄃᙯܼˠม̝ࢦ̂Ϲ ᙯܼˠ̝ЩჍ̈́ᙯܼᙯܼˠ̝ЩჍ̈́ᙯܼᙯܼˠ̝ЩჍ̈́ᙯܼ ))) ))) ğ ğ ğ ğ ˟˟ ˘˘ ӈ̏ᖼೱࢍზĄܐĂؠ˙ পҾ۵д˝˩̣ѐѐڱᖼೱڍඁ݈ຫε 36,515,754 πӮ۵ᇴ҃ĄංᛖՏ۵࠳ዶܼͽтޘαѐ˩˝̮̈́ ̣ѐޘඁ݈Ӏৈ ( ( ഠᓁᗝ 10%ٸĞЧ͗Ϗ྿хഠᓁᗝ 10% ˩˘͟ĞЧ͗Ϗ྿͟˘˩ ഠᓁᗝ 10%ٸĞЧ͗Ϗ྿хഠᓁᗝ 10% ˩˘͟ĞЧ͗Ϗ྿͟˘˩ ˝˩̣ѐ˘͡˘͟Ҍ˩˟͡ˬ ˝˩̣ѐ˘͡˘͟Ҍ˩˟͡ˬ ˝˩αѐ˘͡˘͟Ҍ˩˟͡ˬ ˝˩αѐ˘͡˘͟Ҍ˩˟͡ˬ ٽăᙯܼˠϹ̱˩˟ ăՏ۵࠳ዶ̣˩˟ ࣧέΔ઼ᅫથຽᅙҖ۵Њѣࢨ̳Φ έ៉̈̚ЋຽᅙҖ۵Њѣࢨ̳Φ āā ő ő ő ő ő ő ő ő ܜˠႾְְ̝ڱˠႾְܑ̝ˠ ő ő ְࠎώҖڱགྷந۵Њѣࢨ̳Φέາܲᐍநˠ۵Њѣࢨ̳Φ ő ͳϣͨৱ۵Њѣࢨ̳Φ ő ௐ˘થຽᅙҖ۵Њѣࢨ̳Φ ְࠎώҖޙ۵Њѣࢨ̳Φέ៉າЍ၁ຽ۵Њѣࢨ̳Φ̂έΔડϞ۵Њѣࢨ̳ΦέາדᏉ۵Њѣࢨ̳ΦέტЪᙋܛדฟ൴۵Њѣࢨ̳Φέ៉າЍથຽᅙҖ۵Њѣࢨ̳ΦέາைپˠႾְ έາ১ྨ۵Њѣࢨ̳ΦޮڱˠႾְ ( ᙯܼЋຽࠎώҖ̝ڱώҖ̝ܼ ܜࠎώҖְܜϖᖳથຽᅙҖ۵Њѣࢨ̳Φ ְ ܜࠎώҖְܜέາ઼ᅫԸྤฟ൴۵Њѣࢨ̳Φ ְ ܜࠎώҖְܜᐍ۵Њѣࢨ̳Φ ְܲۏˠႾְ າЍˠုܲᐍ۵Њѣࢨ̳ΦາЍৱᖐ۵Њѣࢨ̳ΦາЍயڱᏉଠ۵۵Њѣࢨ̳ΦາЍЪјញჯ۵Њѣࢨ̳Φ ܼώҖ̝ܛˠέ̚ξռϲૺЍྈૅຎචົέາڱࡿѣࢨ̳Φੑဥ܅ܑˠٙࠎႾ ְ̝Ћຽ ၓᅙˠ֗ܲᐍநˠ۵Њѣࢨ̳ΦĞͽ ˭ᖎჍၓᅙˠ̳֗ܲΦğ ၓᅙܲᐍགྷࡔˠ۵Њѣࢨ̳Φ Ğͽ˭ᖎჍၓᅙܲགྷ̳Φğ ϖˬЋຽ۵Њѣࢨ̳Φ̚১ྨ۵Њѣࢨ̳Φ͛ර઼ᅫٕܜˠႾְְ̝ڱ ְăႾ၅ˠᄃགྷநˠ̈́˟ᏐඈᏐᛳ ٸٵТຽ̈́Тຽٸٵ.3 т˭ĈځٽഠĂϹٵώҖШᙯܼˠ((1(1) ӀதƦ Ӏिϡ ޘഠᗝٵ ᙯܼˠ ಏҜ ዶᗝ ഇϐዶᗝ ޘѐ ၆෪ҋࢎ 4.57 8Ζ࡚̮ٽέາ઼ᅫથຽᅙҖ ࠃՉᒧ̶Җ 3,000Ζ࡚̮ $-ܼϹ ޘѐ̣˩˝ ௐ˘થຽᅙҖ ၆෪ҋࢎ 1.19～1.45 4,852ٽᓁāāҖ $ 2,000,000 - ܼϹ ޘαѐ˩˝ ۵Њѣࢨ̳Φ ၆෪ҋࢎ 0.035～5.45 277Ζ࡚̮ٽᏉຽચ̶Җ 37,000Ζ࡚̮ - ܼϹܛᅫ઼ ၆෪ҋࢎ 1.85～4.465 58Ζ࡚̮ٽҖ 10,000Ζ࡚̮ 10,000Ζ࡚̮ ܼϹ̶າΐ ၆෪ҋࢎ 2.51～3.75 605Ζ࡚̮ٽ৸ࡗ̶Җ 70,000Ζ࡚̮ 70,000Ζ࡚̮ ܼϹ ၆෪ҋࢎ 2.53～2.635 444Ζ࡚̮ٽࠃՉᒧ̶Җ 30,000Ζ࡚̮ 30,000Ζ࡚̮ ܼϹ ၆෪ҋࢎ 3.65～4.01 5Ζ࡚̮ٽ̶ࣖҖ 15,000Ζ࡚̮ - ܼϹ ၆෪ҋࢎ 2.26 23Ζለ̮ٽ3,000Ζለ̮ 3,000Ζለ̮ ܼϹ έ៉̈̚ЋຽᅙҖ ၆෪ҋࢎ 1.21～1.45 8,941ٽᓁāāҖ 3,000,000 - ܼϹ ۵Њѣࢨ̳Φ ၆෪ҋࢎ 1.90～5.60 1,324Ζ࡚̮ٽᏉຽચ̶Җ 126,375Ζ࡚̮ 35,000Ζ࡚̮ ܼϹܛᅫ઼ - ၆෪ҋࢎ 0.045～0.05ٽҖ 853Ζ࡚̮ - ܼϹ̶າΐ ၆෪ҋࢎ 2.61～3.785 272Ζ࡚̮ٽ৸ࡗ̶Җ 40,000Ζ࡚̮ - ܼϹ ၆෪ҋࢎ 2.74～4.09 363Ζ࡚̮ٽࠃՉᒧ̶Җ 25,000Ζ࡚̮ 25,000Ζ࡚̮ ܼϹ ၆෪ҋࢎ 3.17～3.247 391Ζ࡚̮ٽ̶ࣖҖ 28,000Ζ࡚̮ 7,700Ζ࡚̮ ܼϹ ̚ ර 800 - 2.05 1 ၆෪ҋࢎ Ζለ̮ٽϔ Ζለ̮ ܼϹ ઼ ˝ έາ઼ᅫથຽᅙҖ ၆෪ҋࢎ 1.39 152ٽᓁāāҖ 1,000,000 - ܼϹ ۵Њѣࢨ̳Φ ˩ ̣ ၆෪ҋࢎ 3.76 2Ζ࡚̮ٽᏉຽચ̶Җ 15,000Ζ࡚̮ - ܼϹܛѐ ઼ᅫ ၆෪ҋࢎ 2.17～3.67 70Ζ࡚̮ٽą ࠃՉᒧ̶Җ 14,000Ζ࡚̮ - ܼϹ ѐ ၆෪ҋࢎ 3.505 2Ζ࡚̮ٽಡ ̶ࣖҖ 16,000Ζ࡚̮ - ܼϹ т˭Ĉځٽഠ̟ᙯܼˠĂϹٵώҖ(2) ӀதƦ Ӏिќˢ ޘഠᗝٵ ᙯܼˠ ಏҜ ዶᗝ ഇϐዶᗝ ޘѐ 132 ௐ˘થຽᅙҖ 5,467 3.29～1.21 טᓁāāҖ $ 5,000,000 - ࢨ ޘαѐ˩˝ ۵Њѣࢨ̳Φ Ч80,000Ζ࡚̮ 0.04～4.89 1,974Ζ࡚̮ޘᏉຽચ̶Җ 86,876Ζ࡚̮ 71,696Ζ࡚̮ ؆̈́180͇ᗝܛᅫ઼ 20,000Ζ࡚̮ 2.36～4.34 220Ζ࡚̮ޘ40,000Ζ࡚̮̈́180͇ᗝޘҖ 20,000Ζ࡚̮ 20,000Ζ࡚̮ ؆ᗝ̶າΐ 50,000Ζ࡚̮ 2.27～3.53 208Ζ࡚̮ޘ40,000Ζ࡚̮̈́180͇ᗝޘ৸ࡗ̶Җ 35,000Ζ࡚̮ 35,000Ζ࡚̮ ؆ᗝ 20,000Ζ࡚̮ 2.36 149Ζ࡚̮ޘ40,000Ζ࡚̮̈́180͇ᗝޘࠃՉᒧ̶Җ 20,000Ζ࡚̮ 20,000Ζ࡚̮ ؆ᗝ 20,000Ζ࡚̮ 2.24 11Ζ࡚̮ޘ40,000Ζ࡚̮̈́180͇ᗝޘ̶ࣖҖ 10,000Ζ࡚̮ - ؆ᗝ έ៉̈̚ЋຽᅙҖ 10,311 1.49～1.15 טᓁāāҖ 4,000,000 2,000,000 ࢨ ۵Њѣࢨ̳Φ 40,000Ζ࡚̮ 0.03～7.25 1,849Ζ࡚̮ޘ80,000Ζ࡚̮̈́180͇ᗝޘᏉຽચ̶Җ 119,832Ζ࡚̮ 35,000Ζ࡚̮ ؆ᗝܛᅫ઼ 20,000Ζ࡚̮ 2.33～4.135 395Ζ࡚̮ޘ40,000Ζ࡚̮̈́180͇ᗝޘҖ 15,000Ζ࡚̮ - ؆ᗝ̶າΐ Ч40,000Ζ࡚̮ 2.55～4.00 335Ζ࡚̮ޘ৸ࡗ̶Җ 20,000Ζ࡚̮ 9,000Ζ࡚̮ ؆̈́180͇ᗝ 20,000Ζ࡚̮ 4.24 164Ζ࡚̮ޘ40,000Ζ࡚̮̈́180͇ᗝޘࠃՉᒧ̶Җ 34,000Ζ࡚̮ 34,000Ζ࡚̮ ؆ᗝ - 20,000Ζ࡚̮ 3.15ޘ40,000Ζ࡚̮̈́180͇ᗝޘ̶ࣖҖ 500Ζ࡚̮ - ؆ᗝ 20,000Ζ࡚̮ 2.17 1Ζለ̮ޘ40,000Ζ࡚̮̈́180͇ᗝޘ2,200Ζለ̮ - ؆ᗝ Ꮙܛדέາை ᓁāāҖ 1,500,000 - 1,500,000 1.39～1.45 1,999 ۵Њѣࢨ̳Φ έາ઼ᅫથຽ ᓁāāҖ 2,000,000 - 2,000,000 1.39～1.44 1,186 ᅙҖ۵Њѣࢨ̳Φ Ч20,000Ζ࡚̮ 3.82～4.16 11Ζ࡚̮ޘᏉຽચ̶Җ 20,000Ζ࡚̮ - ؆̈́180͇ᗝܛᅫ઼ Ч10,000Ζ࡚̮ 3.69 18Ζ࡚̮ޘҖ 5,000Ζ࡚̮ - ؆̈́180͇ᗝ̶າΐ ୧Іᄃ˘ਠТຽ̙֭ТĄٽགྷᓁགྷந८ࣞࠎ̝ĂͷϹืܼޘࣄᗝٵώҖ၆˯ฟᙯܼˠ̝ ANNUAL REPORT 2006 133 ) - 25% 560,656 (46,435) (671,243) (288,360) 3,712,815 $(11,426,810) $(47,942,564 $ 2,574,937 - (44,900,992) - 65,368 25% (19,636) (110,149) 2006 2005 (296,298) 2006 2005 2006 2005 Years Ended December 31 Years Years Ended December 31 Years (1,420,804) (60,012) - (787,208) (740,210) (14,194,828) (12,903,692) 1,212,197 3,910,940 $ 3,240,079 $ 14,324,496 $ 2,680,387 tax (157,691) (102,706) (benefit) 2,882,671 (11,618,326) investment (42,765) (68,525) pension on on investment expense 87,231 - before income tax income before separate tax - separate tax marketable securities (87,100) (211,393) expenseexpense (benefit) (benefit) (benefit) income on investment rovision for guarantee guarantee for rovision unrealized pension income taxincome on tax of overseas branches tax of overseas 262,574 156,108 ble tax of overseas branches ible tax of overseas branches Income (loss)Income before income tax banking unit expenses loss in excess of tax limit loss in excess tax 27,239 16,475 AMORTIZATION EXPENSES (a) as follows: 2006 and 2005 are for tax expenses Income Tax-exempt incomeTax-exempt on investment incomeInterest - separate tax Gain on sale of marketable securities Gain on non-taxable offshore on sale of land profit Tax-exempt Others (235,891) (109,065) carryforward temporary differences Expenditures on employee benefits on employee Expenditures of unrealizedReversal pension of provisionReversal for guarantee (18,000) (18,000) Others 156,951 (180,125) deductible tax of overseas branches undistributed earningsundistributed SalaryLabor/health insurancePensionOthers 232,680 $ 6,020,793 254,757 $ 776,499 5,974,558 69,777 1,632,480 183,740 23. PERSONNEL,23. DEPRECIATION, DEPLETION AND 24. INCOME TAX 22. 22. FEE INCOME, NET expense Permanent differences Permanent Taxable income after permanent and income Taxable Tax rate Tax Temporary differences Temporary Loss carryforwardLoss Income tax expenseIncome (benefit) Income tax payableIncome minimum tax expense Alternative Separate tax Non-deductible tax of overseas branches - - Deferred income tax income Deferred expense (benefit) 10% incomeAdditional tax on Others Fee incomeFee expense Fee $ 2,976,685 $ 2,863,297 Personnel expenses Personnel DepreciationDepletion and amortization 47,215 703,436 44,905 636,243 Fee income, net income, Fee Ζ 872 74,455 ܛᗝ 232,728 169,698 108,108 $ 408,439 ˝˩αѐ ˝˩αѐ ˩˟͡ˬ˩˘͟ Ζ̮̈́ ˩˟͡ˬ˩˘͟ 1,136 ˝˩̣ѐ 1,309,051 1,192,884 Ζ̮Ă˝˩αѐޘ̶Ҿ 35,434,05328,094,213 37,703,878 29,763,418 Ζ̮Ą ˩˟͡ˬ˩˘͟ 200,398 511,541 $ 607,985,512 $ 572,217,899 ˝˩̣ѐ Ζ̮ĄΩώҖᄃၓᅙˠ֗ܲ $13,981,767 $19,979,593 1,000 34,885 ˩˟͡ˬ˩˘͟ 30,342 Ζ̮̈́ Ζ̮̈́ 130,431 ώҖ೩ֻၓᅙˠ̳֗ܲΦ̈́ၓᅙܲགྷ̳Φˠ ၓᅙˠ̳֗ܲΦ̈́ၓᅙܲགྷ̳ΦШώҖ১ϡ ̰ट ώҖٚ১̶̝ҖᒉຽಞٙඈĂ১ྨЪࡗ̝ࢋܼ 158,355 āāྨ ᒉຽޏѐ˩˟͡ˬ˩˘̏͟ᘪࢎ̝̣ٗ˩˝ٺ͚;ࢋࠎ˘ѐග ώҖܛ১ྨഇม˘Ҍ˩̣ѐ̙ඈĄ১ ᓁᗝт ˭ĈܛѨĄ ১ྨЪࡗĂдϏֽ̣ѐҤࢍՏѐᑕ;১˘; Ӏि̶͚Ҿࠎ̝ޘĂ˝˩ ̣̈́˝˩αٽ෴аϹܢ̳Φ̈́ၓᅙܲགྷ̳Φٚү̳ๅ ̮Ą ࠎ Ҿࠎ̶ ޘ఼ྮඈྤ҃ᄮЕ̝͘ᜈќˢĂ˝˩̣ѐְ̈́ ќˢӮࠎܛ၆ၓᅙˠ̳֗ܲΦ̈́ၓᅙܲ གྷ̳Φ̝১ޘĂώҖ ˝˩̣̈́˝˩αѐܛ১פĂ১ྨഇมӮࠎˬѐĂ͡ќވᏱ̳ ১ āā ய ࢦ̂ٚᏚְีٕ̈́ѣְีྤ٪ٯኳ 1. 2. ѐ̈́˝˩αѐ˩˟͡ˬ˩˘̏͟೩ֻፉٕܲኳ̣˩˝ Ζ̣Ѻ༱̮̝ĶኛՐ˘ܛώҖᄃϿ६઼֨ొมѣᙯ࡚ ˭ѣإᏉથݡี˭ٙ۰γĂώҖܛො̣ࢉϠّܢѣ˭ ੵإᏉથݡี˭ٙ۰γĂώҖܛො̣ࢉϠّܢѣ˭ ੵإᏉથݡี˭ٙ۰γĂώҖܛො̣ࢉϠّܢੵ ୧ഠт˭Ĉ 5. 4. ᆶந̚Ą ੰڱĂϫ݈ϒϤέ៉ඈੰڱѐ ˩̱͟͡˯෦έ៉ඈˬ˩˝ٺҿՙĂڇѐ˝ ͡˩͟ҿՙώҖ౼෦ĂଘϿ̙͞ˬ˩˝ٺੰڱᔘ๗ഠķ෦ຽགྷέ៉έΔг͞ܔ ᔘ๗ഠķ෦ĂྍĶҜኛՐܔˣ˩̱ѐม၆ώ Җٙ೩̝ĶҜኛՐٺĂϿ͞ೇ˫ᜈҖޢҿՙ౼෦ቁؠ ੰڱѐˣ͡˘͟གྷ˘˩˝ٺග;๗ഠķְІĂ Еࢦ̂ٚᏚٕ̈́ѣๅĈ ᒉຽ১ྨůٚ১ˠᒉຽ১ྨůٚ১ˠᒉຽ১ྨůٚ১ˠ ) ))) ))) ˬ ˘˘ ˟˟ ( ( ( ፉܲྤய ࢦࢋྤயт˭Ĉ̝٪ ˝˩̱ѐޘ ˝˩˛ѐޘ ˝˩ˣѐޘ ˝˩˝ѐޘ ˘Ѻѐޘ ዶᗝې ዶᗝדᙋ ϡܫϏֹϡ̝إώҖฟ൴ҭ؎͗މ ᗝܛഠ ܲᙋຽચٙٚү̝Чีܲᙋٸצ ৈጴᙋඈѣᆊצܲგ̝ᔘഠώைăצ ˣăࢦ̂ٚᏚְีٕ̈́ѣְี˩˟ யྤ٪ٯăኳ˛˩˟ ܛனāāܛăؠхಏ хܲᙋדхܲᙋݡ̳ๅăๅ 二十九、金融商品資訊之揭露 (b) The details of deferred income tax assets and liabilities as of (一)公平價值之資訊 December 31, 2006 and 2005 are as follows: 九十五年十二月三十一日 2006 2005 帳面價值 公平價值 金融資產 Assets 公平價值與帳面價值相等之金融資產 $ 186,721,767 $ 186,721,767 Loss carryforwards $ 16,047,698 $ 19,574,066 Unrealized loss on reserves 10,018 9,389 公平價值變動列入損益之金融資產 11,146,041 11,146,041 Allowance for bad debts in excess of 1,788,522 1,616,883 備供出售金融資產 69,275,366 69,275,366 tax limit 貼現及放款 863,458,135 863,458,135 Pension reserves 497,967 - 持有至到期日金融資產 167,548,463 167,548,463 Employee benefit 9,000 13,500 Deduct on investment 24,568 24,568 採權益法之股權投資 61,644 61,644 Investment loss recognized under the - 956 其他金融資產 7,492,708 7,492,708 equity method 金融負債 Unrealized investment loss 303,363 303,980 公平價值與帳面價值相等之金融負債 1,242,743,624 1,242,743,624 Less allowance (1,065,047) (1,065,047) 公平價值變動列入損益之金融負債 48,517 48,517 17,616,089 20,478,295 應付金融債券 20,000,000 20,530,820 Liabilities 本行於九十五年一月一日採用財務會計準則公報 Unrealized exchange gain 47,378 41,953 Unrealized gain on valuation of 15,040 - 第三十四號「金融商品之會計處理準則」，因是，衍 derivative instruments 生性金融商品並未認列於九十四年度之財務報表，因 62,418 41,953 適用新公報所產生會計變動累積影響數及股東權益調 整項目之相關說明請參見附註三。 Deferred income tax assets, net $ 17,553,671 $ 20,436,342 (二)本行估計金融商品公平價值所使用之方法及假設如下： (c) The income tax returns of 2003 had been examined and cleared 1.短期金融商品以其在資產負債表上之帳面價值估計 中 by the tax authorities. 其公平價值，因為此類商品到期日甚近，其帳面價 華 (d) Based on the amended Income Tax Act, information on the 民 值應屬估計公平價值之合理基礎。此方法應用於現 國 金及約當現金、存放央行及拆借銀行同業、附賣回 imputation credit accounts (ICA) is as follows: 九 票 券 及 債 券 投 資 、 應 收 款 項 、 央 行 及 銀 行 同 業 存 December 31 十 2006 2005 五 款、應付款項、匯款、附買回票券及債券負債、央 年 行及同業融資等。 Balance of ICA $ 257,565 $ 52,981 ． 2.公平價值變動列入損益之金融商品、備供出售金融 年 Imputed tax credit rate 2.26% - 報 資產及持有至到期日金融資產及避險之衍生性金融 商品，如有活絡市場公開報價時，則以此市場價格 為公平價值。若無市場價格可供參考時，則採用評 December 31 2006 2005 價方法估計。本行採用評價方法所使用之估計及假 134 設，與市場參與者於金融商品訂價時用以作為估計 Accumulated retained earnings (deficit) from 1998 $ 11,377,055 $ (36,182,905) 及假設之資訊一致，該資訊為本行可取得者。 若無市場報價可供參考之債票券，則以模型估 計公平價值。本行之評價模型之假設與估計方式與 25. EARNINGS (LOSS) PER SHARE 其他市場參與者適用之假設與估計方式一致，並假 Basic earnings (loss) per share is derived from income before tax 設金融市場不存在套利空間，而以各時間點之指標 and net income of $14,324,496 thousand and $11,377,055 thousand, 利率推導出各幣別之零息利率曲線，作為計算遠期 利率與折現率之依據。若標的物為長期債券，則另 respectively, for 2006, and loss before tax and net loss of $47,942,564 視發行公司之信用評等訂定適當之信用碼差，以反 thousand and $36,515,754 thousand, respectively, for 2005, minus 映該發行公司之信用狀況。 preferred dividends divided by the current weighted average number 3.貼現及放款、存款因皆為附息之金融資產，故其帳 面價值與目前之公平價值相近。催收款之帳面價值 of outstanding common shares. Diluted earnings (loss) per share is 係減除備抵呆帳後之預計收回金額，故均以帳面價 calculated based on the assumption that the preferred stocks - Type 值為公平價值。 B are converted to common stocks on January 1, 2006. 4.以成本衡量之金融商品係持有未於證券交易所上市 或未於櫃買中心櫃檯買賣之股票，依公開發行銀行 財務報告編制準則及會計準則第三十四號公報之規 26. RELATED-PARTY TRANSACTIONS 定，應以成本衡量。 5.衍生性金融商品如無活絡市場價格可供參考時，本 Names and relationships of related parties are as follows: 行係採用金融同業間廣泛運用之衍生性金融商品評 Related Party Relationship with Chang Hwa Bank 價模型，並將公開市場上可觀察之參數代入，以計 Directors, supervisors, managers and their Various individuals 算持有部位之公平價值。 Relatives The enterprise’s director and supervisor are The enterprise whose director and superior 6.本行係以路透社報價系統所顯示之外匯匯率，就個 the Director or representative of Chang are the director or representative of Hwa Bank’s corporate director and 別遠期外匯合約到期日之遠期匯率分別計算個別合 corporate director and supervisor. supervisor 約之公平價值。利率交換及換匯換利合約之公平價 Chang-Yin Insurance Agent Co., Ltd. Equity-method investee 值除部分係以交易對象提供之報價資料，餘係以彭 Chang-Yin Insurance Broker Co., Ltd. Equity-method investee The company’s chairman is the managing 博（Bloomberg）資訊系統顯示之報價資料，就個 Yun San Corporation Director of Chang Hwa Bank 別合約分別計算評估公平價值。 Robina Finance & Leasing Corp. Same as above Mandarin Florist Co., Ltd. Same as above (ˬ)ώҖܛᏉྤய̈́ܛᏉๅ̝̳πᆊࣃĂͽ߿ඛξಞ̝ Related Party Relationshipwith Chang Hwa Bank Ҥࢍ۰̶ҾࠎĈڱฟಡᆊۡତՙؠ۰Ă̈́ͽෞᆊ̳͞ Charity Foundation ofChangofChang Kuan Yu Tang ˝˩̣ѐ˩˟͡ˬ˩˘͟ The supervisor of Chang Hwa Bank in Taichung City Taishin Financial Holding Chang Hwa Bank’s corporate director and ڱฟಡᆊ ෞᆊ̳͞ ᗝ supervisorܛᗝ Ҥࢍ̝ܛՙؠ̝ ܛᏉྤய The company’s related enterprise is a னܛ̈́ࡗ༊னܛ $ 44,126,907 $ - Shin Kong Synthetic Fibers Corp. corporate director and supervisor of ࣄᅙҖТຽ 116,366,938 - Chang Hwa BankٵδҖ̈́ٸх Shin Kong Life Insurance Co., Ltd. Same as above ̳πᆊࣃតજЕˢຫৈ̝ܛᏉྤய 8,903,498 2,242,543 Shin Kong Spinning Co., Ltd. Same as above Ըྤ - 8,559,731 Shin Kong Fire & Marine Insurance Co., Ltd. Same as aboveדๅ̈́דаைܢ ᑕќഠี - 17,668,191 Taishin International finance Co., Ltd. Same as above ഠ - 863,458,135 International Bank ofTaipei Same as aboveٸ෭ன̈́ Ꮙྤய 69,275,366 - Taishin Leasing and Financing Same as aboveܛ౯ֻ Heng-Cang development Co., Ltd. Same as above Ꮙྤய - 167,548,463ܛഇ͟זѣҌ Taiwan Shin Kong Commercial Bank Ltd. Same as above ۵ᝋԸྤ - 61,644 Taishin Bills Finance Co., Ltd. Same as above̝ڱଳᝋৈ Ꮙྤய - 7,492,708 The company’s chairman is a representativeܛ ܛᏉๅ Taiwan Securities Co., Ltd. ofChang Hwa Bank’s corporate direc- δҖ̈́ᅙҖТຽхഠ 162,085,482 - tor and supervisor The company’s director is the president of Shin Kong Co., Ltd. δҖ̈́ТຽᏉྤ 384,585 - Chang Hwa Bank ̳πᆊࣃតજЕˢຫৈ̝ܛᏉๅ - 48,517 Great Taipei Gas Co. Same as above ๅ - 16,301,987 Taishin Real- Estate Management Co. Same as aboveדๅ̈́ד෴аைܢ ᑕ;ഠี - 40,772,769 Taishin Insurance Agency Co., Ltd. Same as above Wang Tien Woollen Textile Co., Ltd. Same as above хഠ̈́๗ഠ - 1,022,848,401 Chang Hwa Bank’s corporate director First Commercial Bank,, Ltd. (discharge in November 25, 2005) 20,530,820 - דᏉๅܛ;ᑕ Chang Hwa Bank’s corporate supervisor Ꮙๅ - 350,400 TaiwanBusiness Bankܛ (discharge in December 30, 2005) 2006 REPORT ANNUAL Яͽ̳ฟಡᆊՙؠ̝̳πᆊࣃតજ As per SFAS No. 6“Disclosure6 “Disclosure for relatedޘѐ̣˩˝ٺα)ώҖ) ҃ᄮЕࠎ༊ഇຫε̝ܛᗝࠎ205,290Ζ̮ĂЯͽෞᆊ party transactions,”and the directors of ᗝࠎ Others the company are the spouse or withinܛҤࢍ̝̳πᆊࣃតજ҃ᄮЕࠎ༊ഇӀৈ̝ڱ͞ the second immediate family of other 344,588Ζ̮Ą companies. (̣)ώҖ˝˩̣ѐޘܧͽ̳πᆊࣃᏊณͷ̳πᆊࣃតજᄮ :ᏉๅĂӀिќˢᓁᗝࠎ Significant transactions with related parties are as followsܛᏉྤயٕܛЕຫৈ̝ 38,420,716Ζ̮ĂӀिϡᓁᗝࠎ20,270,475Ζ̮Ą Deposits Accepted Ꮙྤய༊ഇۡତᄮЕࠎܛҋ౯ֻޘώҖ˝˩̣ѐ Percentage of Interest Rate Name ofRelated Parties Balance (%) ᗝࠎ326,149Ζ̮Ą Deposits Rangeܛᝋৈአፋีϫ̝ڌ۵ (̱)ੑચࢲᐍྤੈ 1.ξಞࢲᐍ The balance on December 31, 20066(each eachach ώҖͽξಞࢲᐍୂຏޘĞmarket risk factor related party is not over 10% oftotal $ 1,404,424 0.14 0~13.00 sensitivityğүࠎξಞࢲᐍଠგ̝̍Ąξಞࢲᐍୂ deposits accepted) 135 The balance on December 31, 20055 (eacheachach ҜొҜЯপؠξಞࢲᐍЯ̄តજ˘ಏҜٙ related party is not over 10% oftotal 2,577,844 0.26 0~13.00ొޘຏ (ౄјᆊࣃ̝តજĄξಞࢲᐍЯ̄ડ̶ࠎӀதă๗ deposits accepted ’ᆊॾ̈́થݡᆊॾඈĄώҖͽξಞࢲᐍ The interest rate for directors’, supervisors’ and managersדதăᝋৈᙋ ᘨѣЧᙷࢲᐍొҜ҃யϠ̝ٽҜ೬ᜨϹొޘຏୂ ξಞࢲᐍĄ deposits amounted to $480 thousand per person was 13% per ๗தࢲᐍୂຏޘొҜĞforeign exchange rate annum. The part ofdeposit exceeding $480 thousand will earn யๅܑྤٺfactor sensitivities, FX Deltağܼ ͟ĂЧ။Ҿ̝ࢲᐍొҜஐᗝĂϺӈЧ။Ҿ๗தតજ interest calculated at the demand savings rate. 100%҃யϠ̝னࣃតજᇆᜩᇴĄ˯ܑ̝๗தࢲᐍ The interest rates and others terms provided to the other related ޘੵۡତயϠҋγ๗ࢉϠّથݡ̝ࢲᐍୂຏޘຏୂ .Ҝ̝ parties are the same as those offered to general publicొٽγĂϺፋЪࠎᔖᐍϫ۞ٚү̝ӈഇγ๗Ϲ ࢲᐍୂຏޘĂ̈́Чγ။̝னఱొҜĄ ӀதࢲᐍୂຏޘొҜĞinterest rate factor Loans sensitivitiesğܼЧෞᆊതӀதѡቢ̝Ӏதഇࢨඕ Percentage of Interest Rate Name ofRelated Parties Balance (%) Deposits Range ٽӀதனఱϹٺၹπҖ˯ொ0.01%Ğ1ૄώᕇğĂ၆ ҜϏֽొٽӀதࢉϠّથݡϹ̈́ܛݭૄדҜăๅొ ߹ณ̝னࣃតજᇆᜩᇴĞDV01ٕPVBPğĄ The balance on December 31, 20066 (eacheachachܛன related party is not over 10% oftotal னఱ̈́ࢉϠ loans) $ 12,497,674 1.48 0.55~7.63דᝋৈᙋܼޘࢲᐍୂຏדᝋৈᙋ ᆊॾតજ100%Ă၆ྍࢉϠّથݡొҜ The balance on December 31, 20055 (each eachachۏથݡᇾ۞ّ யݡΒ related party is not over 10% oftotal totalדᆊࣃតજᇆᜩᇴĄώҖٙٚү̝ᝋৈᙋ̝ ۵ᆊᇴᏴፄᝋඈĄ loans) 38,300,864 4.64 1.44~10.00̈́ܛӣ۵ைனఱă۵ைݭૄ ಏҜĈາέ။Ζ̮ Loans to directors, supervisors and managers for mortgage ˝˩̣ѐ ξಞࢲᐍᙷݭ ࢋ။Ҿ amounted to $8,000 thousand and credit loan amounted to $800 ˩˟͡ˬ˩˘͟ ๗தࢲᐍୂຏޘ EUR $ 18,037 thousand per person both bear interest at 2.30% in 2006 and 2005. JPY 16,858 USD 899,175 For loans to directors, supervisors and managers that exceeded the Ğොğ 45,994 above amount, the interest rate is the same as the terms offered to ӀதࢲᐍୂຏޘDV01 .Ӏதѡቢ TWD (5,701) the publicדāāๅ TWD 1,643 āāӀதϹೱᄃೱ๗ೱӀӀதѡቢ The interest rates and other terms provided to the other related TWD 2,134,833 ޘࢲᐍୂຏדᝋৈᙋ parties are the same as those offered to the public. ොĈЕܛᗝܼͽγ။ೱზјາέ။ᇴĄ Loans, Deposits and Guaranteed Loans (a) Chang Hwa Bank’s due to related parties were as follows: Highest Balance Ending Balance Interest Expense Year Name of Related Parties Department Maximum Limit Interest Rate % (Thousand)Thousand)) (Thousand)Thousand)) (Thousand)Thousand)) 2006 TaishinInternational Bank Co., Ltd. Los Angeles Branch US$ 3,000,000 - According to counterparts 4.57 US$ 8 2005 First Commercial Bank, Ltd. Head office NT$ 2,000,000- According to counterparts 1.19~1.45 NT$ 4,852 OBU US$ 37,000 -- According to counterparts 0.035~5.45 US$ 277 SingaporeBranch US$ 10,000 US$ 10,000 According to counterparts 1.85~4.465 US$ 5588 New York Branch US$ 70,000 US$ 70,000 According to counterparts 2.51~3.75 US$ 605 Los Angeles Branch US$ 30,000 US$ 30,000 According to counterparts 2.53~2.635 US$ 444 LondonBranch US$ 15,000 - According to counterparts 3.65~4.01 US$ 5 EUR¼ 3,000 EUR¼ 3,000 According to counterparts 2.26 EUR¼ 23 Taiwan Business Bank Head office NT$ 3,000,000 - According to counterparts 1.21~1.45 NT$ 8,941 OBU US$ 126,375 US$ 35,000 According to counterparts 1.90~5.60 US$ 1,324 Singapore Branch US$ 853- According to counterparts 0.045~0.05 - New York Branch US$ 40,000- According to counterparts 2.61~3.785 US$ 272 Los Angeles Branch US$ 25,000 US$ 25,000 According to counterparts 2.74~4.09 US$363 London Branch US$ 28,000 US$ 7,700 According to counterparts 3.17~3.247 US$391 EUR¼ 800 - According to counterparts 2.05 EUR¼ 1 2005 Taishin International Bank Co., Ltd. Head office NT$ 1,000,000- According to counterparts 1.39 NT$ 152 ̚ OBU US$ 15,000- According to counterparts 3.76 US$2 ර Los Angeles Branch US$ 14,000- According to counterparts 2.17~3.67 US$ 70 ϔ London Branch US$ 16,000 - According to counterparts 3.505 US$2 ઼ ˝ ˩ (b) Chang Hwa Bank’s due from related parties were as follows: ̣ Highest Balance Ending Balance Interest Income ѐ Year Name of Related Parties Department Maximum Limit Interest Rate % (Thousand)Thousand)) (Thousand)Thousand)) (Thousand)Thousand)) ą ѐ ಡ 2005 First Commercial Bank, Ltd. Head office NT$ 5,000,000 - None 1.21~3.29 NT$ 5,467 OBU US$ 86,876 US$ 71,696 US$80,000 overver night and 180 days 0.04~4.89 US$ 1,974 Singapore Branch US$ 20,000 US$ 20,000 US$40,000 overver night and US$20,000 180 days 2.36~4.34 US$ 220 136 New York Branch US$ 35,000 US$ 35,000 US$40,000over ver night and US$50,000US$50,000 180 days 2.27~3.53 US$ 208 Los Angeles Branch US$ 20,000 US$ 20,000 US$40,000 overver night and US$20,US$20,000000 180 days 2.36 US$ 149 London Branch US$ 10,000- US$40,000over ver night and US$20,000 180 days 2.24 US$ 11 Taiwan Business Bank Head office NT$ 4,000,000 NT$ 2,000,000 None 1.15~1.49 NT$ 10,311 OBU US$ 119,832 US$ 35,000 US$80,000 overver night and US$40,000 180 days 0.03~7.25 US$ 1,849 Singapore Branch US$ 15,000- US$40,000over ver night and US$20,000 180 days 2.33~4.135 US$ 395 New York Branch US$ 20,000 US$ 9,000 US$40,000over ver night and 180 days 2.55~4.00 US$ 335 Los AngelesBranch US$ 34,000 US$ 34,000 US$40,000 overver night and US$20,000 180 days 4.24 US$ 164 LondonBranch US$ 500- US$40,000over ver night and US$20,000 180 days 3.15 - EUR¼ 2,200 - US$40,000over ver night and US$20,000 180 days 2.17 EUR¼ 1 Taishin Bills Finance Co., Ltd Head office NT$ 1,500,000 - NT$1,500,000 1.39~1.45 NT$ 1,999 Taishin International Bank Co., Ltd. Head office NT$ 2,000,000- NT$2,000,000 1.39~1.44 NT$ 1,186 OBU US$ 20,000 - US$20,000over ver night and 180 days 3.82~4.16 US$11 Singapore Branch US$ 5,000 - US$10,000over ver night and 180 days 3.69 US$ 18 The above transactions were approved by Chang Hwa Bank’s chief executive officer.Terms are the same as those of the non-related parties. (c) Operating leases Both Chang-Yin Insurance Agent Co., Ltd. and Chang-Yin Insurance Broker Co., Ltd. rented an office from Chang Hwa Bank for three years and paid rental monthly. The rent revenues received were both $1,000 thousand for 2006 and 2005. (d) Others Chang Hwa Bank received transaction fee income from Chang-Yin Insurance Agent Co., Ltd. and Chang-Yin Insurance Broker Co., Ltd. for providing personnel and channel services. The income for 2006 was $130,431 thousand and $34,885 thousand respectively, and for 2005 was $158,355 thousand and $30,342 thousand respectively. Chang Hwa Bank and Chang-Yin Insurance Agent Co. had contract for repurchase of government bonds. The interest expenses for 2006 and 2005 were $1,136 thousand and $872 thousand, respectively. ANNUAL REPORT 2006 137 t d 408,439 31 408,439 35,434,053 37,703,878 December 31 $ 607,985,512 $ 572,217,899 December 31, 2006 31, December 2006 2005 Carrying ValueCarrying Value Fair $ 13,981,767 $ 19,979,593 equals fair value fair value equals certifi- in which fair value in which fair value equals carrying value 1,242,743,624 1,242,743,624 bonds and certifi- deposits cate custody custody Government bonds, bonds, Government carrying value $ 186,721,767 $ 186,721,767 epartment of National Defense of Iran as the recipient to carryingto value or loss carryingequals to value or lossprofit 11,146,041 11,146,041 48,517 48,517 held for custody ness 2008200920102011 232,728 169,698 108,108 74,455 2007 $ 408,439 payments are made annually. are payments as follows: are under the lease contracts payments The The summary of Chang Hwa Bank’s pledged assets as of Financial assetsFinancial in which fair value equals Financial assets at fair value through profit profit through fair value assets at Financial financial assetsAvailable-for-sale LoansHeld-to-maturity financial assets under equity methodInvestments Other financial assets liabilitiesFinancial in which 69,275,366 fair value through fair value liabilities at Financial 167,548,463Bonds payable 69,275,366 61,644 167,548,463 7,492,708 61,644 863,458,135 7,492,708 863,458,135 20,000,000 20,530,820 follows: (1) The lease period ranges from one to fifteen years. Rental (2) As of December 31, 2006, the estimated future lease Unused issued letters of creditUnused issued letters branch Significant premises. provisions of the contracts are as 28,094,213 29,763,418 requested Chang Hwa Bank to release US$15,000 thousand. On August 1, 2002, the Supreme Court decided in favor of Chang Hwa Bank. The Department of National defense of Iran filed another legal suit against Chang Hwa Bank in the Taipei Distric had the following contingent liabilities and commitments as of 2006 and 2005: December 31, deposit and time note repayment The loans liabilities on joint The busi- guarantee arising from Guarantees 1,309,051 1,192,884 Court. On September 10, 2004, the Taipei District Court decide in favor of Chang Hwa the Bank. DepartmentHowever, of National Defense of Iran filed another legal suit against Chang Hwa Bank in the Taiwan High Court on October 6, 2004. The under the High Court. is still in a legal progress lawsuit INFORMATION (c) The D (a) is as follows: of fair value Information (a) In addition to those mentioned in Note 5, Chang Hwa Bank (b) Chang Hwa Bank enters into operating leases for its domestic Financial assets Financial Financial liabilities Financial December 31, 2006 and 2005 are as follows: 2006 and 2005 are December 31, 29. DISCLOSURES29. OF FINANCIAL INSTRUMENTS 28. 28. CONTINGENT LIABILITIES AND COMMITMENTS 27. 27. PLEDGED ASSETS als Pledged AssetsPledged Description 2006 2005 Refundable collater- Refundable deposits Cash 200,398 511,541 28,094,213 28,127,014 124,858,170 ĄώҖЯ $ 875,145,452 $ 875,145,452 $ 1,190,420,692 ಏҜĈາέ။Ζ̮ ಏҜĈາέ။Ζ̮ ̂ܫϡᇷᐍܛᗝ ̂ܫϡᇷᐍܛᗝ ̂ܫϡᇷᐍܛᗝ 20% Ζ̮Ą 18,257 18,257 ˝˩̣ѐ˩˟͡ˬ˩˘͟ 28,094,213 ࢬᆊࣃ 8,559,731 8,559,731 ˝˩̣ѐ˩˟͡ˬ˩˘͟ ˝˩̣ѐ˩˟͡ˬ˩˘͟ 35,434,053 35,434,053 68,955,297 67,935,670 28,127,014 $ 8,824,768 $ 8,626,539 124,858,170 167,548,463 166,606,777 ࢬᆊࣃ ࢬᆊࣃ $ 1,192,580,234 97,540,61626,786,63919,704,912 97,540,616 26,786,639 19,704,912 $ 875,145,452 13,007,25360,345,055 13,007,253 60,345,055 $ 875,145,452 283,032,099 283,032,099 269,487,336 269,487,336 $ 53,735,680 $ 53,735,680 $ 773,666,130 $ 773,666,130 มĂπӮࡗࠎ ) 875,145,452 875,145,452 50% 1,190,420,692 Ҍ ѣ̝ፉܲېϡܫĄᏉྤܲᙋથຽ 0% ӑٯӣ౯̙ 60% ( ϡᇷᐍܫᏉથݡĂ̂ܛώҖٙѣ̝Ч ၆ٽᏉથݡĂΞਕЯϹܛώҖٙѣٕ൴Җ̝ ώҖܫϡࢲᐍពะ̝̚Ъࡗܛᗝт˭Ĉ ˯ܑЕϯ̝ܫϡࢲᐍܛᗝܼͽྤயๅܑ͟ т˭Ĉژᗝ̶ܛ ᗝ˝˩̣ѐ˩˟ ͡ˬ˩˘͟ࡗࠎܛϡᇷᐍܫᗝॡĂ̙҂ณፉܲݡ ̝̳πᆊࣃĄώҖ̂ܛϡᇷᐍܫ೬ᜨ̂ٺϡࢲ ᐍĂଘܫҖፉ ܲݡٕፉ̝ܲᝋӀĂਕѣड़ࢫҲώҖ̝ેט၆ٕ͞͞࿁ࡗॡĂώҖѣૻٽੑயඈĄ ༊Ϲٕדăхఱăѣ߹఼ّ̝ѣᆊᙋܛ ഠăഠٚᏚٕܲᙋٙࢋՐ೩ֻ̝ፉܲݡ఼૱ࠎன ٺᗝ ͧதࡗࠎ ݡͧத̬ܛϡෞҤĄѣፉܲݡ۞ഠΚഠᓁܫ͞ϏਕᆹҖЪࡗཌྷચ҃ጱώҖ൴ϠຫεĄ ώҖд೩ֻഠăഠٚᏚ̈́ܲᙋඈຽચॡĂӮү ᖰຕ̝ٕ͞ ĂҭѣᙷҬ̝၆෪ăயຽݭၗг͞ડાĄٽ ࠹၆ˠซҖϹٽಏ˘Ϲٕ͗މ˘ϡࢲᐍពะ ̝̚পᇈĂΒӣๅચˠٙଂְᒉຽ߿જّ̝ኳĄώ ҖϏពะ̚ᄃಏܫĄயϠڶϡࢲᐍពะ̝̚ଐܫᇆᜩϺ࠹ᙷҬॡĂ൴ Ϡ̝ڶېགྷᑻٕזצ˧࠹၆ˠᔵѣࡶ̒Ăҭ̂кଂְᙷҬ̝થ ຽ߿જĂͷѣᙷҬ̝གྷᑻপኳĂֹᆹҖЪࡗ̝ ਕٽᏉથݡϹ ܛˠĂٕ˘ٺ࠹၆ˠពะ̚ٽᏉથݡϹܛπᆊࣃࠎϒᇴܑ̈́γٚᏚ̈́ܲᙋ̝ЪࡗࠎෞҤ၆ ෪Ą༊̳ г͞ડા ၆෪Ɵயຽݭၗ Ꮙથݡีϫܛ ܫϡࢲᐍ 2. ለāā߷ ࡚āā߷ āā āā߷ֲ ᄦౄຽ ચຽ ռāāˠ āāڇ Ꮙຽ̈́ܲᐍຽ Բ൴̈́ຽ ̙જய̈́১ྨຽܛ ዶᗝېϡܫഠ ܑγٚᏚ̈́ܲᙋ āāܲᙋయЇഠี āāฟ൴ٸ෭னă͚̈́ Ըྤדаைๅܢ Ꮙྤயܛഇ͟זᏉྤய ѣҌܛᏉๅஐᗝ ౯ֻܛᏉྤய̈́ܛᏉྤய ࢉϠّܛϫ۞ٽϹ ߹જّࢲᐍ.3 ͽᆹҖЪࡗཌྷચܛᚯନྤڱͽ͚ᑕᆹҖٙѣЪࡗཌྷચĂ߇ϏѣЯ֖ܛώҖ߹જّ౯ͧதࠎ21.50%Ăྤώ̈́ᒉྻྤ ξಞ˯ͽЪநᆊॾ̝ΞਕٺڱӀதϹೱЪࡗγĂ̝ڍᏉથݡੵѣၸࢺᇴड़ܛ߹જّࢲᐍĄώҖٙѣ̝ࢉϠّ̝ ໂ̈Ă߇តன߹જࢲᐍࠤҲĄّ ୧І̝̙ቁؠ̈́ٽϹٺഇ̈́͟Ӏத̝੨ЪĂ֭ଠგϏ੨Ъ̝˾ĂܼࠎώҖ̝གྷᒉგநૄώ߆ඉĂϤזಶྤய̈́ๅү ԆБ੨ЪĂѩ˾ΞਕயϠሕд̝ӀৈĂٕϺΞਕயϠຫεĄώҖֶڱഇ̈́͟Ӏத఼૱זᙷ̝̙ТĂ߇ྤய̈́ๅ̝ Ĉژഇ̶זͽෞҤώҖ̝߹જਕ˧ĂਬЕϯژഇ̶זய̈́ๅّ̝ኳଳϡዋ༊̶̝͞ёүྤ ಏҜĈາέ။Ζ̮ ˝˩̣ѐ˩˟͡ˬ˩˘͟ Ϗ࿅˘࣎ ࿅˘࣎͡ ࿅ˬ࣎͡ ࿅̱࣎͡ ࿅˘ѐ ࿅˛ѐഇࢨ۰ Ъࢍ ഇࢨ۰ Ҍˬ࣎͡ഇࢨ۰ Ҍ̱࣎͡ഇࢨ۰ Ҍ˘ѐഇࢨ۰ Ҍ˛ѐഇࢨ۰͡ ྤāāய ᅙҖТຽğ $ 39,066,157 $ 5,060,750 $ - $ - $ - $ - $ 44,126,907ٸĞӣхܛࡗ༊ன̈́ܛன ᅙҖТຽ 46,160,899 31,204,192 11,852,035 27,149,812 - - 116,366,938ٸٵδҖ̈́ٸх Ըྤ 5,995,281 2,564,450 - - - - 8,559,731דаๅĞைğܢ ̳πᆊࣃតજЕˢຫৈ̝ܛᏉྤய - - 171,916 658,404 1,299,227 - 2,129,547 Ꮙྤய 9,016,494 - - - - - 9,016,494ܛϫ۞ٽϹ Ꮙྤய 1,877,412 402,245 1,066,112 4,829,059 47,922,939 13,177,599 69,275,366ܛ౯ֻ ߿ඛξಞ̝ๅચથݡԸྤ - - - - 283,980 2,310,154 2,594,134 ഠĞӣซă˾٪๗ğ 86,606,854 102,900,001 65,964,027 71,268,237 230,717,183 302,738,033 860,194,335ٸ෭ன̈́ ഠᖼЕ๊̝ќഠี 46,122 235 - - 212,100 14,692,660 14,951,117ٸ Ꮙྤய 69,536,200 32,554,976 30,587,978 27,756,455 7,112,854 - 167,548,463ܛഇ͟זѣҌ ۵ᝋԸྤјώĞӣෞᆊአፋğ - - - - - 61,644 61,644̝ڱଳᝋৈ ͽјώᏊณ̝ܛᏉྤய - - - - 4,834,177 - 4,834,177 ̚ ᑕќӀि̈́ќৈ 3,550,478 304,090 470,025 210,062 801,422 9,526 5,345,603 ර āāྤயЪࢍ 261,855,897 174,990,939 110,112,093 131,872,029 293,183,882 332,989,616 1,305,004,456 ϔ ઼ āāๅ ğ $ 107,756,069 $ 38,149,229 $ 15,429,234 $ 750,950 $ - $ - $ 162,085,482ٸٵδҖ̈́ᅙҖТຽхഠĞӣᅙҖТຽ ˝ ˩ ̚රฎ߆ᖼхഠ 3,922,219 6,015,657 6,621,039 21,987,963 - - 38,546,878 ̣ ๅ 11,392,813 4,337,585 571,589---16,301,987ד෴аๅĞைğܢ ѐ ą хāāഠ 173,753,575 144,492,712 107,529,473 187,756,838 408,416,879 - 1,021,949,477 ᏉๅĞӣෞᆊğ 48,517 - - - - - 48,517ܛϫ۞ٽѐ Ϲ 20,000,000 - 18,000,000 - - 2,000,000 - דᏉๅܛ;ಡ ᑕ ᑕ;Ӏि 1,121,731 1,007,786 692,363 920,999 80,920 - 3,823,799 āāๅЪࢍ 297,994,924 196,002,969 130,843,698 211,416,750 426,497,799 - 1,262,756,140 ($ 36,139,027) ($ 21,012,030) ($ 20,731,605) ($ 79,544,721) ($ 133,313,917) $ 332,989,616 $ 42,248,316 138 ஐ߹જ˾ 4.Ӏதតજ̝னܛ߹ณࢲᐍ̈́Ӏதតજ̝̳πᆊࣃࢲᐍ જĂگ߹ณயϠܛώҖٙѣ̝ঙજӀதྤய̈́ٙٚፉ̝ঙજӀதๅચĂΞਕЯξಞӀதតજֹྍྤய̈́ๅ̝Ϗֽன ጱࢲᐍĂώҖෞҤྍࢲᐍΞਕࢦ̂Ă߇ΩᘪࢎӀதϹೱЪࡗĂ̏ซҖᔖᐍĄ֭ ഇ͟זഇࢦࢎᆊٕ͟ഇ(1) Ъࡗ͟ഇ̝ᇆᜩĄ˭ܑពϯώҖ̝ӀதࢲᐍĂצഇ͟࠰̙זѐ˩˟͡ˬ˩˘͟Ăഇࢦࢎᆊ͟ഇ̣˩˝ٺώҖ ഇٕ͟ࢦࢎᆊ͟˟۰̚ྵѝ̝͟ഇ̟ͽ̶ᙷĂώҖٙѣٕזᏉๅ̝ࢬᆊࣃܑϯĂֶ֭ܛᏉྤய̈́ܛͽώҖٙѣ ഇ͟Ğ˟۰̚ྵѝ̝͟ഇğડ̶̝ࢬᆊࣃт˭ĈזᏉથݡ̙Тࢦࢎᆊٕ͟ܛ൴Җ̝ ಏҜĈາέ။Ζ̮ ˝˩̣ѐ˩˟͡ˬ˩˘͟ Ϗ࿅˘࣎ ࿅˘࣎͡ ࿅ˬ࣎͡ ࿅̱࣎͡ ࿅˘ѐ ࿅˛ѐഇࢨ۰ Ъࢍ ഇࢨ۰ Ҍˬ࣎͡ഇࢨ۰ Ҍ̱࣎͡ഇࢨ۰ Ҍ˘ѐഇࢨ۰ Ҍ˛ѐഇࢨ۰͡ ྤāāய ᅙҖТຽ $ 45,946,268 $ 62,672,920 $ 978,033 $ 11,684,106 $ - $ - $ 121,281,327ٸٵх Ꮙྤய 549,460 465,367 - 328,450 786,270 - 2,129,547ܛؠ̳πᆊࣃតજЕˢຫৈ̝ Ꮙྤய 4,772,566-----4,772,566ܛϫ۞ٽϹ Ꮙྤய 6,752,981 13,737,478 3,413,676 37,934,615 4,040,366 - 65,879,116ܛ౯ֻ ߿ඛξಞ̝ๅચથݡԸྤ 2,310,154283,980----2,594,134 ഠĞӣซă˾٪๗ğ 121,173,839 494,714,624 147,673,466 45,550,664 48,327,506 3,984,713 861,424,812ٸ෭ன̈́ Ꮙྤய 69,780,850 33,356,649 30,751,171 32,817,656 842,137 - 167,548,463ܛഇ͟זѣҌ Ըྤ 6,736,566 1,823,165 - - - - 8,559,731דаๅĞைğܢ āāྤயЪࢍ 258,022,684 607,054,183 182,816,346 128,315,491 53,996,279 3,984,713 1,234,189,696 āāๅ Ꮙๅ $ 48,517 $ - $ - $ - $ - $ - $ 48,517ܛϫ۞ٽϹ 20,000,000 - 4,000,000 - - 16,000,000 - דᏉๅܛ;ᑕ ๅ 11,547,125 4,183,273 571,589 - - - 16,301,987ד෴аๅĞைğܢ хāāഠ 137,958,876 273,735,549 481,790,770 83,217,647 7,635,254 - 984,338,096 ࣄˢഠ 113,722,439 38,049,230 12,551,009 5,874,649 97,950 - 170,295,277 ̚රฎ߆ᖼхഠ 3,922,218 34,624,660 - - - - 38,546,878 āāๅЪࢍ 267,199,175 366,592,712 494,913,368 89,092,296 11,733,204 - 1,229,530,755 Ӏதୂຏّ˾ ( $9,176,491) $ 240,461,471 ( $312,097,022) $ 39,223,195 $ 42,263,075 $ 3,984,713 $ 4,658,941 ANNUAL REPORT 2006 139 ar f the 3 for re re not The The fair value of debt not investments actively traded in determined determined at their carrying values on the balance sheet dates because of the short maturities of these instruments. The method applies to cash and cash due equivalents, from Central Bank and call loans to bonds banks, and securities purchased under resell due receivables, agreements, to banks and Central bonds Bank, payables, and securities sold and under call loans repurchase agreements, from banks and Bank. Central instruments at fair value through profit or available- loss, for-sale financial and assets, held-to-maturity financial assets is measured at quoted active market prices for these instruments. If market price is not the available, fair value is determined in accordance with valuation technique. The estimates and assumptions used by Chang Hwa Bank for fair market value are consistent with those used by market participants that formulate the pricing for financial instruments. market is determined by valuation model, which is identical to those used by market participants to determine the fair values of debt investment. Chang Hwa Bank assumes that no arbitrage opportunities exist in and the calculates market, the forward rate and discount rate by deriving zero-coupon yield curve of each currency based on benchmark rate of each time period. The fair value of the long-term bond is determined by borrower’s credit worthiness, which is valued rating. credit by and liabilities and their carrying values approach to their fair values. The carrying amount of delinquent loans is the estimated collectable amount which is the book value less the fair value of allowance Therefore, for loans bad and debt. their carrying at is determined value. receivables TIGER stocks. According to the Regulations Governing the Preparation of Financial Reports of Public Banks and the fair 34, value Financial Accounting of Standards No. these their carrying at is determined instruments values. Chang Chang Hwa for Bank “Accounting Financial 34 adopted No. SFAS to to determine the fair values of financial instruments for the ye 2006: ended December 31, (1) The fair value of the short-term financial instruments is (2) If market price is the available, fair value of financial (3) Loans and deposits are interest-bearing financial assets (4) Financial assets carried at cost are non-public stocks and (b) methods and assumptions Bank adopts the following Hwa Chang recognized recognized in 2005 financial statements. Please refer to Note the cumulative effects of changes in accounting principles and adjustments of equity shareholders’ as result of the adoption o new SFASs. Instruments” since Instruments” January 1, 2006. As a derivatives result, a 31% 26% 10% ఢؠ೬בཱི ఢؠ೬בཱི ఢؠ೬בཱི ഠ̝ͧத ٸഠΚٸ Чᙷ࿈ഇ ˝˩αѐ ࡚ܛ ˝˩αѐ ˩˟͡ˬ˩˘͟ ܛᗝ ચຽ ˩˟͡ˬ˩˘͟ 09510001270 09510001270 09510001270 ᄦౄຽ Բ൴ᐠຽ ڇથۤົ࣎ˠ̍ ಏҜĈາέ။Ζ̮ĂƦ ಏҜĈາέ။Ζ̮ĂƦ - 4.90% фௐ фௐ фௐ ) ) ) έ။ 27% 10% 32% ˝˩̣ѐ˩˟͡ˬ˩˘͟ ˘ ˘ ఢؠЕĄ̝בཱི ఢؠЕĄ̝בཱི ఢؠЕĄ̝בཱི ( 2.17%2.01%1.99% 5.14% 1.77% 5.49% 2.38% 5.44% 1.82%2.48% - - 5.66% 3.16%2.99% 5.68% 3.36% 6.55% 5.97% - ഠ̝ͧத ٸഠΚٸ Чᙷ࿈ഇ 24,127,9772.63%1.30% 49,028,369 5.58% 1.32% ˝˩̣ѐ ˝˩̣ѐ 3,943 - 44,562 - ચຽ ˩˟͡ˬ˩˘͟ 0941000251 0941000251 0941000251 ܛᗝ ˩˟͡ˬ˩˘͟ 1,395,261 0.16%6,350,994 1,314,009 0.16% - 59,550,872 - 12,904,30214,299,563 1.47%11,687,317 12,813,018 1.63% 14,127,027 1.51% - 1.67% 13,748,252 - ᄦౄຽ Բ൴ᐠຽ த ҖຽҾ ͧதͧ ڇҖຽҾ̍થۤົ࣎ˠ фௐ фௐ фௐ ) ) ) ˘ ˘ ( ѐā͡ ѐ˩˟͡ˬ˩˘ٙ͟ѣٕ൴̣˩˝ٺώҖ გᅙܛ̣͟˩˟გົ˝ ˩̣ѐα͡ܛથͷ ֶࡗᆹҖ̝ҺЕಡ࿈ഇᑕќഠᓁዶᗝֶܼҖ߆ੰםᓁዶᗝ̈́གྷๅચٸથͷֶࡗᆹҖ̝ҺЕಡ࿈םགྷๅચ ഠᓁᗝĄٸഠűٸதŶ࿈ഇͧٸ࿈ ᜨĄ ഠ̝ؠཌྷᑕֶ˝˩αѐα͡˩˝ ͟ᅙԊٸഠ̈́˙ᙷ࿈ഇٸϥᙷ࿈ഇ ᗝĄܛഠٸķఢؠ̝Еಡ࿈ഇڱӑநᏱ ഠ๊ќഠٸഠֶܼĶᅙҖྤயෞҤຫε౯೩Ё́࿈ഇٸ࿈ഇ ᏉથݡЧࢋ။Ҿડ̶̝πӮѣड़Ӏத т˭ĈܛҖ̝ γğĈ ѣड़ӀதĞੵ̳πᆊࣃតજЕˢຫৈ̝ܛᏉྤய 1. 4. 3. 2. चᙯܼ۰Ą ᗝĄ Ꮙથݡีϫܛ (2) ᑕќٚᔉഠĄ̝ܛ͚ᆊ ഠă෭னăᑕќٚҸைഠăᑕќܲᙋഠี̈́̏ٸᓁᗝΒ߁ܫ ௐˬ˩ˬ୧̝˘ఢؠ̝ѣӀڱώܑٙჍӀचᙯܼˠĂܼᅙҖ ᓁܫᗝűܛܫதŶٚүͽ۵ைࠎፉܲݡ̝ͧܫ۵ைኳ٪ ӀचᙯܼˠܫͧதŶ၆ӀचᙯܼˠܫܛᗝűܫᓁᗝĄ 1. 4. 2. 3. ොĈ ܫࢲᐍะ̚ଐԛܫࢲᐍะ̚ଐԛܫࢲᐍะ̚ଐԛ ഠྤயݡኳٸഠྤயݡኳٸഠྤயݡኳٸ થͷֶࡗᆹ Җ̝ҺЕಡ࿈ഇᑕќ ഠᓁዶᗝםഠ ᓁዶᗝ གྷๅચٸથͷֶࡗᆹ Җ̝ҺЕಡ࿈ഇםഠᓁᗝ གྷๅચٸ࿈ഇ ᗝܛഠຫε౯ ӑᖼዚٸഠ Еٸᙷ࿈ഇ˙ ഠٸāϫ ϥᙷ࿈ഇี ))) ))) Ꮙ፟ၹ೬ᜨְีܛ ᗝͧத̝݈ ˬ۰ğܛܫᗝΚ ᓁܛܫĞ ྍඈҖຽޘะ̚ܫத পؠҖຽͧܫத ۵ைኳ٪ͧܫᗝ Ӏचᙯܼˠܛܫ၆Ӏचᙯܼˠ ˟˟ ˘˘ ොĈ ( ( דᏉๅܛ;ഇๅ āāᑕܜ ഠٸഇّܜഠĞӣ٪๗ğ āā̚ٸഠ āāൺഇّٸ෭ன̈́ דāā̳Φๅ ߿ඛξಞ̝ๅચથݡԸྤ āāྤயૄᖂᙋ דᏉๅܛๅ āā̳عᏉྤய āāδҖхಏ āā߆ܛഇ͟זāā̳Φๅ ѣҌ דᏉๅܛๅ āā̳عᏉྤய āā߆ܛ౯ֻ Ꮙ፟ၹ೬ᜨְีܛă˩ˬ (ˬ)ಮिྤயᄃ;िๅ̝πӮࣃ̈́༊ഇπӮӀத (5) If market price is not available for derivative financial ಏҜĈາέ။Ζ̮ĂƦ instruments, Chang Hwa Bank adopts the valuation model ˝˩̣ѐ˩˟͡ˬ˩˘͟ that is identical to the market to determine the fair values πӮࣃ πӮӀதƦ ྤāāய of derivative financial instruments, and determines the fair Тຽ $ 114,291,947 4.48 value of holding position by substituting the observationٸٵٸůхܛன δҖ 39,793,824 1.00ٸх parameter in public market. 2.20 233,463,939 דை̈́דᏉྤயůๅܛ ഠ 830,989,230 3.42 (6) The fair value of Forward Exchange Contract is determinedٸ෭ன̈́ āāๅ by forward rate which is offered by “Reuters” pricing system ഠ 137,798,330 4.34ٵТຽхഠ̈́ ߿ഇхഠ 498,993,243 0.68 on maturity date of each contract. Except for those offered ؠഇхഠ 478,741,687 2.26 by counter party, the fair value of interest rate swap and 6,597,892 1.16 Ξᖼឰؠഇхಏ cross currency swap is evaluated by “Bloomberg” information ฎ๗Ԋᖼхഠ 44,869,187 2.16 ТຽᏉྤ 3,052,149 5.11 system of each contract. c) Chang Hwa Bank adopted the quoted active market price and) 3.26 20,000,000 דᏉๅܛ ˝˩αѐ˩˟͡ˬ˩˘͟ valuation technique to determine the fair value of financial assets πӮࣃ πӮӀதƦ and liabilities as follows: ྤāāய December 31, 2006 Тຽ $ 105,708,333 2.51ٸٵٸůхܛன Use of Quoted Price Use of Valuation δҖ 38,811,873 1.01 in Active Market Techniqueٸх 1.72 206,980,088 דை̈́דᏉྤயůๅܛ ഠ 834,239,572 3.01 Financial assetsٸ෭ன̈́ Cash and cash equivalents $ 44,126,907 $ - āāๅ ̚ Due from Central Bank and call loans 116,366,938 - ഠ 160,411,155 2.28 to banksٵර Тຽхഠ̈́ ϔ 488,134,590 0.58 Financial assets at fair value through ߿ഇхഠ 8,903,498 2,242,543 ؠഇхഠ 476,948,429 1.64 profit or loss ઼ ˝ Bonds and securities purchased 8,399,650 0.94 - 8,559,731 Ξᖼឰؠഇхಏ under resell agreements ˩ ̣ ฎ๗Ԋᖼхഠ 52,305,600 1.85 Receivables - 17,668,191 ѐ ТຽᏉྤ 4,318,745 2.54 Loans - 863,458,135 - Available-for-sale financial assets 69,275,366 3.03 20,000,000 דᏉๅܛ ą ѐ Held-to-maturity financial assets - 167,548,463 ಡ (α)Ӏதୂຏّྤੈ Investments under equity method - 61,644 Ğາέ။ğ Other financial assets - 7,492,708ܑژӀதୂຏّྤயๅ̶ Financial liabilities ಏҜĈາέ။Ζ̮ĂƦ Due to banks and Central Bank 162,085,482 - 1Ҍ90͇ 91Ҍ180͇ 181͇Ҍ1ѐ Call loans from banks and Central 140 ีϫ 1ѐͽ˯ Ъࢍ 384,585 - Ğӣğ Ğӣğ Ğӣğ Bank Financial liabilitiesat fair value Ӏதୂຏّྤய 701,271,875 136,658,210 71,968,184 75,466,249 985,364,518 - 48,517 Ӏதୂຏّๅ 371,137,472 472,853,197 71,501,341 11,525,356 927,017,366 through profit or loss Bonds and securities sold under - 16,301,987 Ӏதୂຏّ˾ 330,134,403 (336,194,987) 466,843 63,940,893 58,347,152 repurchase agreements ஐāāࣃ 83,219,294 Payables - 40,772,769 Ӏதୂຏّྤயᄃๅͧத 106.29% Deposits and remittances - 1,022,848,401 Ӏதୂຏّ˾ᄃஐࣃͧத 70.11% Bonds payable- 20,530,820 Other financial liabilities - 350,400 ොĈ1.ώܑܼᆷᓁҖ઼̰̈́γ̶͚፟ၹາέ။ొ̶Ğ̙ӣγ။ğ̝ (d) For the year ended December 31, 2006, the net income (loss) ܛᗝĄ recognized under the quoted market price determined and Ӏதតજᇆᜩ̝ϠצӀதୂຏّྤய̈́ๅܼќৈٕјώ.2 Ӏྤய̈́;िๅĄ valuation technique estimated was loss of $205,290 thousand .Ӏதୂຏّ˾ŶӀதୂຏّྤயůӀதୂຏّๅĄ and income was $344,588 thousand, respectively.3 ӀதୂຏّྤயᄃๅͧதŶӀதୂຏّྤயűӀதୂຏّ (e) For those financial assets and financial liabilities not measured.4 ๅĞາέ။ӀதୂຏّྤயᄃӀதୂຏّๅğĄ by fair market value through profits and loss for the year ended ğܛĞܑ࡚ژӀதୂຏّྤயๅ̶ ಏҜĈ࡚ܛΖ̮ĂƦ December 31, 2006 of Chang Hwa Bank, the related interest 1Ҍ90͇ 91Ҍ180͇ 181͇Ҍ1ѐ ีϫ 1ѐͽ˯ Ъࢍ income or expense was income $38,420,716 thousand and Ğӣğ Ğӣğ Ğӣğ .Ӏதୂຏّྤய 5,425,494 968,490 417,965 410,002 7,221,951 $20,270,475 thousand, respectively Ӏதୂຏّๅ 5,600,283 1,428,204 471,762 3,127 7,503,376 Unrealized gains from available-for-sale financial asset (Ӏதୂຏّ˾ (174,789) (459,714) (53,797) 406,875 (281,425 amounted to $326,149 thousand as of December 31, 2006, is ஐāāࣃ 22,264 .Ӏதୂຏّྤயᄃๅͧத 96.25% classified as the adjustments to shareholders’ equity :Ӏதୂຏّ˾ᄃஐࣃͧத (1,264.04%) (f) Information of financial risk is as follows ොĈ1.ώܑܼಡᓁҖ̶઼̰͚̈́፟ၹă઼ᅫܛᏉຽચ̶Җ̈́ঔγ̶ (1) Market price risk ᗝĂ̙Β߁ٕѣྤயٕ̈́ѣๅีϫĄ Chang Hwa Bank uses the market risk factor sensitivity asܛ̝ܛ͚፟ၹЪࢍ࡚ Ӏதតજᇆᜩ̝ϠצӀதୂຏّྤய̈́ๅܼќৈٕјώ.2 the instrument for market risk controls. The market risk Ӏྤய̈́;िๅĄ Ӏதୂຏّ˾ŶӀதୂຏّྤயůӀதୂຏّๅĄ factor sensitivity refers to the change in value resulting from.3 ӀதୂຏّྤயᄃๅͧதŶӀதୂຏّྤயűӀதୂຏّ a unit change in a specific market risk factor. Market risk.4 ӀதୂຏّྤயᄃӀதୂຏّๅğĄܛๅĞ࡚ factors include interest rate, exchange rate, price of equity ANNUAL REPORT 2006 141 ) 18,037 s, s, 18,037 2006 December 31, 31, December JPY 16,858 USD 899,175 Others (Note) 45,994 (In thousands of original currencies) 652 ѐ ѐ 5,991 Market Risk TypeMarket Risk Currency 1 1 original currencies. 238,661 Interest curve of IRS and CCSInterest TWD 1,643 Interest curve of bondsInterest TWD (5,701 Note:Presented in New Taiwan dollars translated from Note:Presented Equity securities risk value TWD 2,134,833 Exchange rate risk value rate Exchange sensitivity DV01 rate Interest EUR $ 18,037 the effect of the change in present value due to 100% change due to value the effect of the change in present in foreign exchange for The each foreign currency. exchange rate factor sensitivity not only includes those of foreign- currency but derivatives, also integrates the risk sensitivity of spot foreign rate positions for hedging purpose and spot currencies position of different Interest rate factor sensitivity refers to the effect (DV01 or PVBP) of change in present value of future cash flows generated from spot rate positions and interest-rate derivative positions incurred by moving upwards the yield curves under evaluation by 0.01% (one b.p.) on the interest structure rate Risk sensitivity of equity instruments refers to the effect of price change in the value of positions derivative due to 100% price change in equity instruments and in underlying assets of derivative instruments. Chang Hwa Bank engages in the trading of equity instruments including exchange stock, options. and stock-index funds, traded instruments instruments and commodity The prices. market risk factor sensitivity of Chang Hwa Bank discloses the market risks book. risk positions on the trading different from derived Foreign exchange rate FX factor, Delta, refers to the net risk i that sheet date, on balance currencies positions of different Credit Credit risks refer to the losses from financial instruments incurred by non-performance of the contracted obligations by Chang Hwa Bank’s counterparties or others. Chang Hwa Bank provides loan loans, commitments and guarantees based on prudent credit The evaluations. collaterals that Chang Hwa Bank demands to be pledged on loan loans, commitments or guarantees are normally cash, inventory, secured The average marketable securities or other property. loans are weighted 60% approximately of overall loans. The average percentage of secured financial guarantees and letters of credit is 20%, between 0% and 50%. When the counterparties or others Chang default, Hwa Bank has rights to enforce the collaterals or other guarantees and effectively reduce credit risks. In disclosures on the maximum amounts for credit risk the exposures, market values of the collaterals are not considered. Chang Hwa Bank’s maximum credit risk exposure amount at December 31, 2006 is $1,190,420,692 thousand. (2) risk Credit ѐ࿅ ѐ࿅ 1 1 ͇Ҍ ͇Ҍ 181 181 ͇ ͇ Ă८ 180 180 1 ఢؠĂֶ ͇Ҍ ͇Ҍ 1 ୧̝ ಏҜĈƦ 91 91 45 ĂͽώҖϏޙ ୧̝ ൴ϠҖࣶŒŒŒ ٺΖ̮ĂώҖ̏ 45 ͇ ͇ ᗝܛഇ͟౺ዶഇมז ᗝܛഇ͟౺ዶഇมז ಏҜĈ࡚ܛΖ̮ ഠఢؠ८າέ။ 90 90 7 ಏҜĈາέ။Ζ̮ ٺ༱̮ჳᔫĂώҖ̏ 95.11.13 ၆Œࣶ೩Ә෦Ą 63,814 94.12.23 ͇Ҍ ͇Ҍ ୧ௐ 1,000 ώҖŒŒ̶Җ൴Ϡዚࣶ 31 31 ώҖŒŒ̶Җ൴ϠዚࣶŒ ၆Œࣶ೩Ә෦Ą ၆Œࣶ೩Ә෦Ą ώҖŒŒ̶Җ൴ϠዚࣶŒ 129 1.080.84 (3.59) (2.74) 18.4314.35 (63.40) (48.29) 38.31 (137.06) 95.11.29 ༱̮ᄅၑ९ĂҖ߆ੰܛᏉႾ༛ ༱̮ჳᔫĄ ९Ϥ̈́ܛᗝ ͇ ͇ າέ။ ٺ̏ ९ĂώҖܛૄܫŒŒŒ͗މ൸ ٺŒŒ̶Җ ९Ăώ ९ຫεВࢍܛૄܫ͗މௐ 200 94.12.23 ŒŒŒ൸ڱௐ Тڱቁ၁ે ҖĂ࿁ͅᅙҖ֭ޘטטϲዋ༊ѣड़̰ొଠ ٺ྿າέ။ 800 გந؎ࣶົܛΚҋજᕢࣶ፟னܬௐ 95.11.29 95.7.19 ŒŒڱቁ၁ ેҖĂ࿁ͅᅙҖ֭ޘטטϲዋ༊ѣड़̰ొଠޙ ᏉႾ༛გந؎ࣶົ၆ώҖЯϏਕܛ ९ĂҖ߆ੰܛૄܫ͗މŒŒ൸ 94.12.23 95.11.29 30 30 Ҍ Ҍ 1 1 Ъࢍ Ъࢍ ඁ݈ ඁޢ ඁ݈ ඁޢ (494,213) (854,122) 328,270 459,914 (328,530) (99,745) 4,847,1395,341,352 1,952,757 2,806,879 1,142,010 813,740 848,856 388,942 85,860 414,390 817,656 917,401 (107,461,377) 41,725,551 (36,953,164) (32,476,846) (103,995,579) 24, 1,109,735,594 214,747,344 111,119,819 75,058,203 98,665,576 610,144, 1,217,196,971 173,021,793 148,072,983 107,535,049 202,661,155 585,90 ྤயಡ࿌தŶඁ݈ĞޢğຫৈűπӮྤய ᗝܛğຫৈܼ༊ѐ˘͡ࢍҌྍ؞ຫৈޢຫৈűஐќৈ ඁ݈ĞޢğຫৈűπӮஐࣃ ৷ৈதŶඁޢஐࣃಡ࿌தŶඁ݈Ğ ܑژഇ͟ഇࢨඕၹ̶זາέ။ ܑژഇ͟ഇࢨඕၹ̶זܛ࡚ ̝ܛᗝĄ 1. 2. 3. 4. ีϫྤயಡ࿌த ஐࣃಡ࿌த ˝˩̣ѐ˩˟͡ˬ˩˘͟ ˝˩αѐ˩˟͡ˬ˩˘͟ ৷ৈத ොĈώܑܼಡᓁҖă̶઼̰͚፟ၹ઼̈́ᅫܛᏉຽચ̶ҖЪࢍ࡚ܛ ොĈώܑ่ӣᓁҖ̶઼̰͚̈́፟ၹາέ။ొ̶Ğ̙ӣγ။ğ̝ܛᗝĄ ොĈ পঅྶְีপঅྶְีপঅྶְี ژഇ̶זய̈́ๅ̝ྤ ژഇ̶זய̈́ๅ̝ྤ ژഇ̶זய̈́ๅ̝ྤ ژഇ̶זய̈́ๅ̝ྤ ᒔӀਕ˧ ᒔӀਕ˧ ᒔӀਕ˧ ))) ))) ))) ෦۰ءགྷᑭ၅΄ڱ࿁ͅ ࣎ҾٕЪࢍ၁ᅫ ຫε࿈̣Ζ༱̮۰ޘຍࢋᕇķ̝ఢؠ൴Ϡщ Бְ߇ĂѐڦᏉ፟ၹщБ ჯ᜕ܛͽჳᔫ۰ ϒ۰ ९ІٕϏ̷၁ֶĶ ˛˛ ̱̱ ̣̣ ( ( ( ˯యˠٕᖚࣶЯຽચޘѐ˘ܕ Яˠࣶᄅၑăࢦ̂ઊ൴ޘѐ˘ܕεགྷგ፟ᙯᚑ̟۬ ޘѐ˘ܕགྷგ፟ᙯ ΄ڱ࿁ͅޘѐ˘ܕ ଯზ˘ѐĄ݈ـغҋ೬ᜨ༊ѐѐܼޘѐ˘ܕොĈ ˾߹ ഇܛഇྤז߹ˢ ࢋܛഇྤזࢋ ߹ˢܛഇྤזࢋ ˾߹ ഇܛഇྤזࢋ ˣ)ྤώዋّ֖ The maximum credit risk exposures of various financial) ಏҜĈາέ။Ζ̮ĂƦ instruments held by Chang Hwa Bank are as follows: ˝˩̣ѐ ˝˩αѐ December 31, 2006 ˩˟͡ˬ˩˘͟ ˩˟͡ˬ˩˘͟ ώዋ֖த 11.17% 11.03% Maximum Creditྤ ௐ˘ᙷྤώΚࢲᐍΐᝋࢲᐍّྤய̝ Financial Instrument Type Carrying Value Risk Exposure 8.42% 7.40% ͧத Amount ௐ˟ᙷྤώΚࢲᐍΐᝋࢲᐍّྤய̝ 3.58% 4.59% ͧத Trading-purpose financial assets $ 8,824,768 $ 8,626,539 ௐˬᙷྤώΚࢲᐍΐᝋࢲᐍّྤய̝ -- Derivative financial assets and ͧத 18,257 18,257 liabilities,, net ҋѣྤώஐᗝ 93,235,570 84,474,781 ࢲᐍّྤயᓁᗝ 834,373,555 766,117,323 Available-for-sale financial assets 68,955,297 67,935,670 ఼۵ᝋৈΚᓁྤயͧத 5.03% 4.16% Held-to-maturity financial assets 167,548,463 166,606,777 Bonds and securities purchased 8,559,731 8,559,731 ڱො1ĈҋѣྤώͧதŶҋѣྤώűࢲᐍّྤயĂྍีͧதֶܼᅙҖ under resell agreements ̈́בௐα˩α୧ăੑ߆ొ90.10.16έੑᏉ(˘)ௐ0090345106ཱི Loansoansans and overdraft (excluding ఢؠĶᅙҖྤώዋ֖ 875,145,452 875,145,452בੑ߆ొ92.12.09έੑᏉௐ0928011668ཱི ((ķٙࢍზ̝ͧதĄ allowance for receivablesڱგநᏱّ 2Ĉᓁྤயܼྤயๅܑ̝ྤயᓁࢍܛᗝĄ Off-balance-sheet commitments and guarantees ( ) ˝ ࢋγ။ஐొҜĞξಞࢲᐍğ Guarantees 35,434,053 35,434,053 ಏҜĈາέ။Ζ̮ Letters of credit 28,094,213 28,094,213 ˝˩̣ѐ˩˟͡ˬ˩˘͟ ˝˩αѐ˩˟͡ˬ˩˘͟ ࣧ။ ԶЪາέ။ ࣧ။ ԶЪາέ။ 1 USD 27,413 895,034 1 USD 65,295 2,145,594 $ 1,192,580,234 $ 1,190,420,692 ࢋγ။ 2 EUR 2,712 116,377 2 EUR 17,074 664,561 ஐొҜ The value for credit risks is based on the evaluations on the 3 JPY 347,107 95,177 3 GBP 8,966 507,621 Ğξಞࢲᐍğ 4 HKD 5,583 23,450 4 SGD 15,487 305,631 positive fair market value on balance sheet date, off-balance- ̚ 5 SGD 793 16,858 5 JPY 121,249 33,780 ර sheet commitments and guarantees in contracts. ϔ ොĈ˯ྤफ़่Βӣ઼̰γ။ஐొҜĂ̙Βӣ઼ᅫຽચ̶Җ̈́ঔγ Prominent concentration of credit risks occurs when ઼ ̶ҖྤੈĄ ᗝ transaction parties for financial instruments prominentlyܛຽચ̝̰ट̈́ܫఢؠᏱநڱຽܫֶ(˩) ˝ ˩ ຽચĂਬ˝ concentrate on one party, or on a few that are in similarܫௐˬ୧ώҖࣘᒉڱຽܫֶ ̣ ѐ ˩̣ѐ̈́˝˩αѐ˩˟͡ˬ˩˘̝͟ܫຽચ̰ट̈́ ą business lines or exhibit similar economic characteristics. ܛᗝЕϯт˭Ĉ ѐ The characteristics for concentration of credit risks include ಡ ˝˩̣ѐ ˝˩αѐ ˩˟͡ˬ˩˘͟ ˩˟͡ˬ˩˘͟ the nature of business activities engaged by debtors. Chang 25,780,896 $ 33,030,829 $ ܛؠϡԸྤ઼̰ૄ Hwa Bank has not engaged in transactions that involved a 14,844,803 19,716,694 ܛؠϡԸྤ઼γૄ 142 ܲᐍܛܫ 858 900 щዳᇬֈܫ 4,386 4,611 prominent concentration of one client or one transaction 270,800 211,307 party, but have transaction parties of similar industry type orܫϠ݈ݵࡗᖜҕ 294,200 351,200ܫᝋۏๅᝋፉܲܛ ޏܫ - 115,916 from similar region. 132,660 110,717ܫדѣᆊᙋ ̙જயܫ 553,760 504,824 Chang Hwa Bank’s information with prominent aggregate $ 54,004,187 $ 41,925,174 attributes of credit risk are as follows: December 31, 2006ܫො೬ᜨܢ߉Җௐ˩˛୧ఢؠڱຽܫֶ(˘˩) Maximum Credit ̝ྤயๅ̈́ܫੑயϫᐂт˭Ĉ Industry TypeCarrying RiskValue Exposure ܫྤயๅܑ Amount ˝˩̣ѐ˩˟͡ˬ˩˘͟ Financial and insurance and insurance$ 53,735,680 $ 53,735,680 Manufacturing 283,032,099 283,032,099 ಏҜĈາέ။Ζ̮ Wholesale and insurance 97,540,616 97,540,616 ܫྤயܫๅ Real estate and leasing 26,786,639 26,786,639 ᅙҖхഠ $ 120,869 ܫྤώ Service 19,704,912 19,704,912 ܲᐍܛኛՐᝋ 294,200 āāܛܫ $ 67,886,789 Individuals 269,487,336 269,487,336 Others 124,858,170 124,858,170 ܛᏉྤய āāܲᐍܛኛՐᝋ 294,200 122,237 $ 875,145,452 $ 875,145,452ܫדāā఼۵ 122,237 āāѣᆊᙋ āāૄāāܛ 67,821,945 āā̙જயܫ 572,218 āā̳πአፋᇴ 15,816 ᑕ;გந 2 ᑕќӀि 284 ᑕ;ٙඁ 28 December 31, 2006 ˿āāг 412,459 ώഇຫৈů Maximum Credit Geographic Location Carrying Value Risk Exposure 669 2,130 ā̏၁னྤώຫৈ Amountޙ̈́ޏٗ дޙ̍ 107,475 āќ͚Ըྤќৈ 17,872 Ϗ၁னྤώӀů Asia $ 773,666,130 $ 773,666,130 ā఼۵ 10,422 Ϗ၁னྤώӀů Europe13,007,253 13,007,253 āૄāāܛ 5,633 North America 60,345,055 60,345,055 Ϗ၁னྤώຫεů Others 28,127,014 28,127,014 āૄāāܛ (239) ᎕࠳ᓪ (15,338) $ 875,145,452 $ 875,145,452 ܫྤயᓁᗝ $ 68,895,954 ܫๅᓁᗝ $ 68,895,954 ,878 ,134 ,277 ,134 44,126,907 4,338,096 162,085,482 44,126,907 ANNUAL REPORT 2006 143 - 1,021,949,477 - 162,085,482 -- $ 44,126,907 in in 5,345,603 3,823,799 42,248,316 8,559,731 Total Total Total Total -- --$ - 38,546,878 4 - 167,548,463 1,305,004,456 1,262,756,140 1,234,189,696 1,229,530,755 42,248,316 al assets and al assets and $ 4,658,941 ion date and $ 42,248,316 - - - - - cient cient to perform st rate of financial does the maturity ssets with floating 9,526 tes. Seven rest rest rate swaps with Seven s in trading of interest 3,984,713 Years Years ery low liquidity risks. ery liquidity low risks. 332,989,616 332,989,616 Over Seven Over Seven -$ - - ty is as follows: analysis $ 3,984,713 332,989,616 $ 332,989,616 - - 8,404 1,299,227 - 2,129,547 9,059 47,922,939 13,177,599 69,275,366 750,950 - Years 2,817,656 842,137 - 167,548,463 7,934,615 4,040,366 - 65,879,116 80,920 Years 801,422 11,733,204 53,996,279 426,497,799 293,183,882 One Year to to Year One Seven Years (133,313,917)(133,313,917) $ 42,263,075 One Year to to Year One Seven Years $ (133,313,917) - - -$ - - 27 71,268,237 230,717,183 302,738,033 860,194,335 ,466 45,550,664 48,327,506 3,984,713 861,424,812 ,035 27,149,812 - - 116,366,938 Year 920,999 210,062 89,092,296 Year 128,315,491 (79,544,721) 15,429,234 750,950 211,416,750 131,872,029 $ 39,223,195 Six Months to A Six Months to (79,544,721) December 31, 2006 31, December - - $ (79,544,721) Six Months to A Six Months to December 31, 2006 31, December 367 - 328,450 786,270 - 2,129,547 ,920 $ 978,033 $ 11,684,106 $ - $ - $ 121,281,327 692,363 470,025 494,913,368 182,816,346 (20,731,605) 130,843,698 110,112,093 to Six Months to $(312,097,022) Three Months Three 5,060,750 $ - Six Months (20,731,605) 38,149,229 15,429,234 settlement date are not affected by settlement date designated $ (20,731,605) Three Months to Months to Three 5,060,750 l instruments are to match maturity and interest rate of financi rate maturity and interest match to are l instruments - - - - - 61,644 61,644 mounts mounts of financial assets and liabilities according to revaluat 1,823,165 34,624,660 304,090 366,592,712 607,054,183 st rates refer to cash flow fluctuations in the future from its a 1,007,786 ember 31, 2006. ember 2006. 31, Since the capital and working capital are suffi y of transaction terms and maturity different kinds, and intere s to reduce cash flow risks as a result of change in interest ra of change in interest risks as a result cash flow reduce s to (21,012,030) Three Months Three One Month to One Month to $ 240,461,471 196,002,969 174,990,939 ates interest rates risks and rates in engage rate trends interest of ates interest 48,517 - - - - - 48,517 kind of gap may cause potential gain or Chang loss. Hwa Bank in this regard. Chang Hwa except Bank’s derivatives, for inte 11,547,125 4,183,273 571,589 - - - 16,301,987 (21,012,030) Three Months Three One Month to One Month to characteristic in order to analyze their liquidity. The maturi The their liquidity. analyze to characteristic in order $ (21,012,030) 5,995,281 2,564,450 - - - - 8,559,731 11,392,813 4,337,585 571,589 - - - 16,301,987 39,066,157 $ 5,060,750 o be sold with reasonable prices in the market, and thus have v and thus have in the market, prices reasonable o be sold with 107,756,069 38,149,229 39,066,157 3,922,218 6,736,566 107,756,069 $ 39,066,157 Month 267,199,175 258,022,684 1,121,731 3,550,478 $ (9,176,491) Less Than One Than Less (36,139,027) Month 297,994,924 261,855,897 agree- (36,139,027) agree- Less Than One One Than Less $ (36,139,027) other agree- agree- from other (including (including valuation (including valuation loans 46,122 235 - - 212,100 14,692,660 14,951,117 receivable receivable from loans (including due from other sold under repurchase agree- sold under repurchase purchased under resell agree- under resell purchased the Postal Bureau the Postal 3,922,219 6,015,657 6,621,039 21,987,963 - - 38,546 revenue receivable financial assets 4,772,566 - - - - - 4,772,566 financial liabilities 48,517 - - - - - 48,517 sold under repurchase agree- sold under repurchase purchased under resell agree- under resell purchased nstrument from thePostal Bureau Instrument equity method (including valuation and revenue receivable Post Office Post financial assets 69,536,200 32,554,976 30,587,978 27,756,455 7,112,85 financial liabilities (including financial assets 9,016,494 - - - - - 9,016,494 securities sold under repurchase agree- securities purchased under resell agree- nstrument Instrument from Post Office under equity method (including valuation securities sold under repurchase agree- securities purchased under resell agree- Financial Instrument Financial Central Bank and call loans to banks Bank and call loans to Central 46,160,899 31,204,192 11,852 receivable and revenue receivable ments ments Financial Instrument Financial from Central Bank and call loans to banks As As of December 31, 2006, expected revaluation date and expected table. in the following date settlement the contract. the contract. Interest risks are presented with the carrying a Deposits 137,958,876 273,735,549 481,790,770 83,217,647 7,635,254 - 98 BorrowingDeposit from Post Office 113,722,439 38,049,230 12,551,009 5,874,649 97,950 - 170,295 Trading-purpose financialTrading-purpose assets financial assetsAvailable-for-sale 6,752,981 13,737,478 3,413,676 3 Financial assets at fair value through profit or loss profit through fair value assets at Financial Debt with no active market instruments loans) (including negotiated Loans Held-to-maturity financial assets 549,460 465, 2,310,154Liabilities financial Trading-purpose liabilities 121,173,839Bonds payable- 283,980Bonds and securities sold 494,714,624 under repurchase 69,780,850 agree- 16,000,000 147,673 33,356,649 30,751,171 - - 3 - - 4,000,000 - - - 20,000,000 2,594 Assets banks Bank and call loans to Central Due from $ 45,946,268 $ 62,672 Bonds and securities purchased under resell agree- ments adjustment) valuation banks) banks) ments adjustment) (i) and expected date settlement date Expectedrevaluation rates swaps in accordance with risk levels and operational need and operational with risk levels in accordance swaps rates Chang Chang Hwa cash Bank’s flow risks as a result of change in intere Chang Chang Hwa Bank’s ratio of liquidity reserve is 21.50% as of Dec analysis of financial assets and liabilities according to their to liabilities according of financial assets and analysis Chang Hwa Bank evalu and liabilities rates with floating rates. assets and liabilities always can not and match this perfectly, all the contracted there obligations, will be no liquidity risk very of failing t probabilities little have effects, leveraging financia for Bank Hwa Chang by policies adopted Basic management liabilities and to Because control of unmatched gap. uncertaint Trading-purpose financialTrading-purpose liabilities (including Deposits 173,753,575 144,492,712 107,529,473 187,756,838 408,416,879 Bondspayable- payable Interest 2,000,000 - - 18,000,000 - 20,000,000 Bonds securities and sold under repurchase agree- Liabilities Bank (including call loans to banks and Central Due to fromDeposit transferred the Postal Bureau Assets and cash equivalentsCash (including due from other Due from Central Bank and call loans to banks Bonds and securities purchased under resell agree- financialTrading-purpose assets financial assetsAvailable-for-sale Debt no active with market instruments loans) (including negotiated Loans fromDelinquent loans reclassified loans 1,877,412 86,606,854 - 102,900,001 402,245 65,964,0 1,066,112 - 4,82 - - 283,980 2,310,154 2,594 Financial assets at fair value through profit or loss profit through fair value assets at Financial - - 171,916 65 Held-to-maturity financial assets Investments under equity method (including valuation Financial assets carried cost at Financial receivableInterest and revenue receivable - - - - 4,834,177 - 4,834,177 (4) rates change in interest from risk and fair value flow Cash (3) Liquidity risk liabilities Interest sensitivity gap Interest Total liabilities Total liabilities Total assets Total Net current gap Net current Total assets Total liabilities Total ܫੑயϫᐂ (ii) Effective interest rate (excluding financial assets at fair value through profit or loss) ˝˩̣ѐ˩˟͡ˬ˩˘͟ As of December 31, 2006, the effective interest rate ಏҜĈາέ။Ζ̮ grouping based on main currency, which are financial instruments that Chang Hwa Bank held or issued, are as ԸྤีϫЕܛᗝ follows: ᅙҖхഠ $ 120,869 December 31, 2006 ܲᐍܛኛՐᝋ 294,200 NTD USD ܛᏉྤய Available-for-sale financial as- sets 111,815 āā఼۵ Government bonds 2.17% 5.14% āāૄāāܛ 67,848,183 Financial bonds 2.01% 5.49% Corporate bonds 1.99% 5.44% ˿āāг 412,459 Held-to-maturity financial assets Certificate deposits in 669 1.77% - Central Bankޙ̈́ޏٗ дޙ̍ 107,475 Government bonds 2.38% - Financial bonds - 4.90% āā 284 Corporate bonds 1.82% 5.66% Bond investment with no active ܫྤயᓁᗝ $ 68,895,954 market Asset-backed securities 2.48% 5.68% Loans Short-term loan (including 3.16% 6.55% (ăӀचᙯܼˠࠎࣄഠˠăܲᙋˠăፉܲݡ೩ֻ̝ϹӀचᙯܼˠࠎࣄഠˠăܲᙋˠăፉܲݡ೩ֻ̝Ϲ negotiated loans˘˩ˬ Medium to long-term loans 2.99% 5.97% ੈྤٽ Long-term liabilities - Bonds payable3.36% ٽӀचᙯܼˠࠎࣄഠˠăܲᙋˠăፉܲݡ೩ֻˠ̝Ϲ(˘) ྤੈ ̚ 30. OTHER DISCLOSURES OF FINANCIAL INSTITUTION (a) Asset quality ර ಏҜĈາέ။Ζ̮ (In Thousands of New Taiwan dollars) ϔ ෞҤѣΞ ᙷҾ ͗ᇴ ഇϐᓁܛᗝ December 31, 2006 December 31, 2005 ຫε Itemצਕዎ ઼ ˝ Amount NPL Ratio Amount NPL Ratio Series A nonperformingonperforming ঐ۰ഠĞො1ğ 1,497 576,782 - 12,904,302 1.47% 12,813,018 1.51% ˩ loans ̣ Җࣶᔉޏഠ 1,490 3,969,198 - Series B nonperformingonperforming loans 1,395,261 0.16% 1,314,009 0.16% ѐ Total nonperformingonperforming loans 14,299,563 1.63% 14,127,027 1.67% ٽϹܫӀचᙯܼˠࠎࣄഠˠ̝ ą 785 19,581,997 - Allowance for loans loss 11,687,317 - 13,748,252 - ѐ Ğො2ğ Loans write-offs 6,350,994 - 59,550,872 - ಡ Nonperforming loans that are exempted from being - 4,197,384 1,288 ٽϹܫӀचᙯܼˠࠎܲᙋˠ̝ 3,943 - reported as past-due - 9,879,687 1,500 ٽϹܫӀचᙯܼˠࠎፉܲݡ೩ֻˠ̝ items after negotiations ௐˬ˩˟୧ఢቑ̝ঐ۰ഠĄ Accounts receivable that areڱොĈ1.ܼᅙҖ 144 ഠͽγ̝Ӏिᙯܼˠࠎࣄ exempted from beingޏੵঐ۰ഠ̈́Җࣶᔉܼ.2 44,562 - Ą reported as past-dueٽϹܫഠˠ̝ ௐˬ˩ˬ୧̝˘ఢؠѣӀच items after negotiationsڱώܑٙჍӀचᙯܼˠĂܼᅙҖ.3 ᙯܼ۰Ą Note a: Nonperforming loans are in accordance with the Regulations of the Procedures for Banking Institutions to ڶᖼԸྤְຽໄ(˟) Evaluate Assets and Deal with Past-Due/ Non-performing ಏҜĈາέ။Ζ̮ĂƦ Loans and Bad Debts issued by the MOF. ᖼ Ը ྤ ְ ຽ Щ Ⴭ Ըྤјώ ۵ּͧ Note b: Series A and Series B nonperforming loans are defined in .ၓᅙˠ֗ܲᐍநˠ۵Њѣࢨ̳ΦĞො2ğ 45,400 100.00 the Letter issued by Banking Bureau on April 19, 2005 (Ref No. IN-GI (1) 0941000251). ၓᅙܲᐍགྷࡔˠ۵Њѣࢨ̳ΦĞො2ğ 16,244 100.00 Note c: NPL ratio = NPLs ÷ Loans έ៉ෛ۵Њѣࢨ̳Φ 96,506 7.25 Note d: Non-performing loan balance excluded from regulatory reporting and account receivable balance excluded from έΔξঈѣࢨ̳Φ 444 9.00 regulatory reporting as a result of debt negotiations ચ۵Њѣࢨ̳Φ 1,250 5.00 and related performance are disclosed to comply withڇᓑщ ,۵Њѣࢨ̳Φ 40,812 9.14 the Letter issued by Financial Supervisory CommissionܫԸྤדщᙋ Executive Yuan on April 25, 2006 (ref. No. Tai-Tsai-Yin .(གྷந۵Њѣࢨ̳Φ ො36.89 09510001270ޙᆆ˛ ᓑྤயგந۵Њѣࢨ̳Φ 2,000,000 11.35ܛέ៉ (b) Concentration of credit risk 19,285 5.13 (ੑԈࡊԫ۵Њѣࢨ̳Φ (In Thousands of New Taiwan dollars 1 December 31 ො ĈᖼԸྤְຽܼ۵ּͧ྿Ѻ̶̝̣ͽ˯۰Ą Item ᗝĄ 2006 2005ܛࢬ̝ޢᄮЕຫৈڱᗝΐࢍֶᝋৈܛො2ĈܼࣧؕԸྤ གྷந۵Њѣࢨ̳Φ382,500۵Ăຽ̏Бᇴ೩ Loans to parties with com- 24,127,977 49,028,369ޙො3ĈώҖԸྤ˛ᆆ ЕຫεĄ mon interests Percentage of loans to (ˬ)ࢦ̂ՙඉ parties with common 2.63% 5.58% interests Percentage of loans secured ܠώҖࠎᒉྻᒻड़҂ณĂགྷְົՙᛉၣώҖ by stocks 1.30% 1.32% % Ꮙ Industry % Industryܛѐ˩͡˩ˣ͟གྷҖ߆ੰˬ˩˝ٺপ̶̜ҖĂؒ αѐˬ͡ၣԆலĄ Approved credit concentra- Social service 32% Social service 31%˩˝ٺႾ༛გந؎ࣶົ८ࣞĂ֭ tion Manufacturing 27% Manufacturing 26% α)ֶੑચົࢍ̳ಡௐ˟˩ˣཱིఢؠᑕ೬ᜨְี (Top 3) Wholesale and Wholesale and) retail 10% retail 10% ො˛Ąܢӑតજܑኛྎٯ౯ Note a: Loans include bills purchased, loans and bills discounted, acceptances, delinquent loans, guarantees, and prepaid accounts receivable. ANNUAL REPORT 2006 145 Total % % Rate % Rate Rate % Rate 1 Year 1 More Than Than More Average InterestAverage Average InterestAverage 2005 2006 52,305,600 1.85 44,869,187 2.16 206,980,088 1.72 1 Year 1 181 Days~ Average Value Average Average Value Average December 31, 2006 31, December (%) 106.29% (%) 70.11% (In Thousands of New Taiwan Dollars; %) Dollars; Taiwan of New Thousands (In Interest-sensitive liabilities Interest-sensitive the Postal the Postal the Postal the Postal Interest-sensitive assets Interest-sensitive from thePostal from thePostal other banks 3,052,149 5.11 other banks 4,318,745 2.54 701,271,875 136,658,210 71,968,184 75,466,249 985,364,518 371,137,472 472,853,197 71,501,341 11,525,356 927,017,366 330,134,403 (336,194,987) 466,843 63,940,893 58,347,152 from other banks from other banks assets - bonds and bills 233,463,939 2.20 assets - bonds and bills (NT dollars only) Banking Law. Loans to parties with common interest ÷ Total loans Total parties ÷ to interest Loans with common loans Total ÷ stocks by Interest-sensitive liabilities Interest-sensitive liabilities = only (i.e., excluding foreign currency) for both head office currency) both head office for foreign excluding only (i.e., and domestic branches. earning assets and interest-bearing liabilities with fluctuations. rate interest by affected or cost income eposits 478,741,687 2.26 eposits 476,948,429 1.64 Bureau Bureau The The average interest-earning interest-bearing assets, liabilities and average interest rates for the years ended as follows: 2006 and 2005 are December 31, Call loans fromCall other banks Bondspayable20,000,000 3.26 Assets banksDue from Bank Central Due from Financial assets - bonds andLoans bills Liabilities banks banks and call loans from Due to Demand depositsTime deposits Negotiable certificates of deposits fromDeposits transferred 137,798,330 the $ 114,291,947 Postal 39,793,824 6,597,892 4.34 4.48 1.00 830,989,230 498,993,243Assets 1.16 3.42 0.68 Liabilities banks banks and call loans from Due to Demand depositsTime deposits Negotiable certificates of deposits 160,411,155 fromDeposits transferred the Postal 8,399,650 2.28 488,134,590 0.94 0.58 Due from banksDue from Bank Central Due from Financial assets - bonds and bills $ 105,708,333 38,811,873 2.51 1.01 Call loans fromCall other banks Loans 834,239,572 3.01 Bondspayable20,000,000 3.03 Note d:Note to parties Loans is with defined the common interests by Note b:Note Percentage of loans to parties with common interests = c: Note Percentage of loans secured by stocks = Loans secured Note c: Note Interest sensitivity gap = Interest-sensitive assets - d: Note Ratio of interest-sensitive assets to interest-sensitive Note a:Note The amounts listed above include accounts in NT dollars b: Note Interest-sensitive assets and liabilities are interest- (c) liabilities assets and interest-bearing Interest-earning (d) sensitivity rate Interest Item 1~90 Days 91~180 Days assets liabilities ity gap Interest-sensitive Interest-sensitive Interest-sensitive Interest-sensitive Interest sensitiv- Interest Net worth liabilities (%) assets to Ratio of interest-sensitive sensitivity net assetsRatio gap to of interest (%) 83,219,294 ܢොˣ ܢܑ˘ ͽ ͽ ͽ ͽ 10% 10% 10% 10% ͽ˯Ą ͽ˯Ą 10% 10% ඈ࠹ᙯྤੈĄ ܢܑ˟ ... ͽ˯Ą 10% ͽ˯Ą 10% થݡᙷݭ̈́࠹ᙯྤੈĄ̼דᙋ̝ ˯Ą ˯Ą ќྤώᗝ ˯Ą ˯Ą ၁ќྤώᗝٕ̮ Ą ีְٽ֖ͽᇆᜩੑચಡֹܑϡՙඉ̝ࢦ̂Ϲ ͘ᜈԶឰഠี྿າέ။̣Ѻ༱̮ͽ˯Ą ᑕќᙯܼˠഠี྿າέ။ˬᆆ̮ٕ၁ќྤώᗝ̝ٽᄃᙯܼˠϹ ୧ּϦኛ८ࣞᏱந ̼ד୧ּٕ̙જயᙋ̼דᏉྤயᙋܛ̙։ๅᝋ྿າέ။̣˩ᆆ̮ͽ˯۰Ąֶ Ą ีְٽ͘ᜈԶឰഠี྿າέ။̣Ѻ༱̮ͽ˯Ą ̳̄Φ̙։ๅᝋ྿າέ။̣˩ᆆ̮ͽ˯۰Ą֖ͽᇆᜩੑચಡֹܑϡՙඉ̝ࢦ̂Ϲ̝ٽĄᄃᙯܼˠϹٽଂְࢉϠّથݡϹ ᗝ྿າέ။ˬᆆ̮ٕ၁ќྤώᗝ ᑕќᙯܼˠഠี྿າέ။ˬᆆ̮ٕ၁ќྤώᗝܛᗝ྿າέ။ˬᆆ̮ٕ၁ќྤώᗝ ̶̙જய̝ܛ̙જய̝פ ᗝ྿າέ။ˬᆆ̮ٕ၁ќྤώᗝܛᗝ྿າέ။ˬᆆ̮ٕ၁ќྤώᗝ ̶̙જய̝ܛ̙જய̝פ ᗝ྿າέ။ˬᆆ̮ٕ၁ ܛ̝דଐԛĄ᎕෴ซٕТ˘ѣᆊᙋדᄃˠĄࠎˠࡦ३ܲᙋĄഇϐѣѣᆊᙋܛྤ జԸྤ̳ΦЩჍăٙдгડ ᗝ྿າέ။ˬᆆܛ᎕෴ซٕТ˘ᖼԸྤְຽ۵ை̝ Ą͗މ̝˯ᗝ̝Ѻ̶̝˩ͽܛγዚᒉຽќ ώҖϏѣҫќˢ̝͗މ၆ЋຽͽγܝќˢϏ྿ώҖຫৈܑ˯ќˢ ώҖ઼̰ᒉྻొ̝ܝགྷᒉய ώҖ઼γᒉྻొإௐˬ୧ຽચĂڱώҖܼགྷᒉᅙҖ ̱˩ώҖֶ̳ฟ൴ҖᅙҖੑચಡӘበᄦௐ 8 4 5 6 7 9 2 3 6 7 8 1 2 3 4 5 1 10 11 12 ځ በཱི ี ϫ ᄲ ځበཱི ี ϫ ᄲ ొܝҾੑચྤੈ ො೬ᜨְีܢ ᗝ̝Ѻ̶̝˩Ąܛᗝ̝Ѻ̶̝˩ͽ˯ćΩΞᏱᄮྤயϺϏ྿ώҖྤ யๅܑ˯ྤயᓁᗝ̝Ѻ̶̝˩ͽ˯Ă߇ᅮ೬ᜨг ડҾੑચྤੈĄ ˢϏ྿ώҖຫৈܑ˯ќˢܛ ຽĂЯߏᅮ೬ᜨயຽҾੑચྤੈĄ ୧ఢؠ೬ᜨ࠹ᙯྤੈт˭Ĉ гડҾੑચྤੈгડҾੑચྤੈгડҾੑચྤੈ γዚੑચྤੈγዚੑચྤੈγዚੑચྤੈ ࢦࢋމ͗ྤੈࢦࢋމ͗ྤੈࢦࢋމ͗ྤੈ ొܝҾੑચྤੈ ᖼԸྤְຽ࠹ᙯྤੈĈ ࠹ᙯྤੈĈีְٽࢦ̂Ϲ ))) ))) ))) ) ) ) ˟˟ ˬˬ αα ˘ ˟ ˘ ( ( ( ( ( ( ˬ˩ˬăొܝҾੑચྤੈ ො೬ᜨְีܢă˟˩ˬ ˯ᗝ྿າέ။ˬᆆ̮ٕ၁ќྤώᗝ10%ͽܛā̶̙જய̝˘ܑܢ ಏҜĈາέ။Ζ̮ ၆෪ࠎᙯܼˠ۰Ă݈Ѩொᖼྤफ़ٽϹ ͟ٽϹ ϫ۞̈́ ࡗؠפ ᆊഠ͚ ᆊॾՙؠ̝ ၆෪ ᙯܼ ᄃ൴Җٽᗝ Ϲܛٽ̝̳Φ ੑயЩჍ ְٕ၁ Ϲפ ีְ ᗝ ણ҂ֶፂ ֹϡଐԛܛ ଐԛ ٙѣˠ ொᖼ͟ഇ; ൴Ϡ͟ ˠ̝ᙯܼ གྷந۵Њ ரޙ઼̚ ᙯܼˠܧ ˠέڱၓ̼થຽᅙҖ έ̚ξᐅՅ߱380ཱིг 95.01.13 304,500 ̏ќഠ ੑဥ ᗝܛඈ15ඊ˿г̈́г ̚ռϲາϔ ѣࢨ̳ΦҤᆊཱི ৺̚ጯ ̈́Ķតੑચ̈́ᒉ ۏޙϏܲх൳̝˯ ᖑ̍ᆶᛉ̈ķ ᆊĄغӘᇾ̳ ̚ ර ϔ ઼ ˝ ˩ ̣ āᖼԸྤజԸྤ̳ΦЩჍăٙдгડ...ඈ࠹ᙯྤੈĈ˟ܑܢ ѐ ą ѐ ಏҜĈາέ။Ζ̮ ಡ ᗝ ഇϐѣ జԸྤ̳Φ ώഇᄮЕ̝ܛࣧؕԸྤ Ըྤ̳ΦЩჍ జԸྤ̳ΦЩჍ ٙдгડ ࢋᒉຽีϫ ౯ො ᗝ ώഇຫৈ Ըྤຫৈܛώഇഇϐ ˯ഇഇϐ ۵ᇴ ͧதƦ ࢬ 146 ၓ̼થຽᅙҖ۵ ၓᅙˠ֗ܲᐍநˠ έΔξ̋̚Δྮ˟߱57ཱི6ሁ ˠ֗ܲᐍநˠ $ 2,008 $ 2,008 500,000 100.00 $ 45,400 $ 33,062 $ 32,784 Њѣࢨ̳Φ ۵Њѣࢨ̳Φ ĞజԸྤ̳Φώഇຫ ৈ33,062ůࣶ̍ࡓӀ 278ğ ő ၓᅙܲᐍགྷࡔˠ έΔξ̋̚Δྮ˟߱57ཱི6ሁ ੑயܲᐍགྷࡔˠ 2,000 2,000 500,000 100.00 16,244 10,044 9,981 ۵Њѣࢨ̳Φ ĞజԸྤ̳Φώഇຫ ৈ10,044ůࣶ̍ࡓӀ 63ğ sued NTD $8 s ’s Chang Chang violated violated sued the ANNUAL REPORT 2006 147 Chang Hwa Hwa Chang Amount Chang Hwa Hwa Chang Equivalent NTD Equivalent caused loss of amounted toamounted $8 Chang Hwa Bank Hwa Chang employee of Chang of Chang employee employee of Chang of Chang employee Chang Hwa Bank Hwa Chang sued t. an employee of Chang an employee of Chang . Chang. Hwa Bank sued None his casecausedloss of Chang Hwa Bank Hwa Chang sued the Chang Hwa Bank Hwa Chang violated employee of Chang Hwa Hwa of Chang employee 13, 2006 according to Article to 2006 according 13, . Chang. Hwa Bank violated . This . casecausedloss of 2005, an2005,2005, employee an of employee of Chang Chang 2005, an2005,2005, an employee of employee of Chang Chang ATM machine. Chang machine. ATM Hwa an employee of Chang Hwa 504,824 , an, employee of Chang Hwa stole and sold customer’s stole 6, an employee of Chang Hwa 23, 2005, an employee of Chang an employee 2005, 23, thousand. Chang Hwa Bank sued 31 from ATM machine. Chang Hwa $ 41,925,174 2006,2006, an an employee employee of of Chang Chang Hwa Hwa violated Bank Law Article Bank Law violated 45-1 when , 2006, an employee of Chang Hwa embezzled cash amounted to $8 was fined $2 million by the Financial the Financial by fined $2 million was Original Currency November 13, 2006 according to Article 19, 2006, an employee of Chang Hwa Hwa BankHwa stoleand sold customer’s trustee funds. Chang funds. trustee Hwa Bank sued the this case. for employee and sold customer’s Bank stole Hwa funds.trustee Chang Hwa Bank ArticleBank Law not 45-1 when it did violated controls internal establish effective Changand implementation. Hwa Bank the Financial by fined $10 million was Yuan. Supervisory Executive Commission the employee for this case. for the employee Bank embezzled cash amounted to $8 million from ATM machine. Chang Hwa Bank violated Bank Law Article internal it did not establish effective 45-1 when Chang and implementation. control Hwa Bank was fined $2 Yuan Supervisory Executive million Commission by the Financial on November 13, 2006 according129-7 under the same law. to Article and sold customer’s Bank stole Hwa funds.trustee This case caused$63,814 loss thousand. of Chang Hwa Bank sued December 23, 2005, an employee of Chang December 31 On December 23, 2005, an employee of Chang On December 23,On December 2005, an employee of Chang On July 19, 2006, an employee of Chang Hwa On December 23,On December 2005, an employee of Chang 553,760 2006 2005 Amount 2006 2005 $ 54,004,187 Equivalent Equivalent NTD Amount foreign 19,716,694 14,844,803 December 31, 2006 31, December 2005 31, December trust 132,660 110,717 12 USD3 27,413 EUR4 JPY5 2,712 347,107 HKD SGD 5,583 895,034 793 1 116,377 95,177 USD65,295 2 3 23,450 EUR 17,074 GBP 4 16,858 8,966 SGD15,487 5 2,145,594 JPY121,249 664,561 507,621 305,631 33,780 Original Currency Item and amount Cases Item and breeds trust and breeds 4,386 4,611 This This ratio is calculated in accordance with Article 44 of currency for head office and domestic branches only (i.e., only (i.e., and domestic branches currency head office for and OBU). branches oversea excluding weighted assets weighted the Banking Law and the letters issued by the Ministry of Finance on October Tai-Tsai-Ron 16, 2001 No. (Ref. 0090345106) and Tai-Tsai- on December No. 2003 9, (Ref. Ron 0928011668). proceeding from December 31, 2006. 31, December from proceeding purpose trust accounts - domestic purpose trust accounts - foreign purpose trust accounts $ 33,030,829 $ 25,780,896 Under Article 3 of the Chang Trust Law, Hwa Bank can offer 1 year trust services. The items and amounts of trust accounts as of as follows: 2006 and 2005 are December 31, Note a: Note The amounts listed above include accounts in foreign Special purpose trust accounts -Special domestic purpose trust accounts - foreign Insurance trustInsurance Retirement and breeds trust trustUmbilical-cord-blood trustMoney claim and guarantee Other monetary trustMarketable securities trust trust Real estate 294,200 270,800 351,200 858 211,307 - 900 115,916 Note a: Note Capital adequacy ratio = Capital requirement ÷ Risk- b:Note shee of balance assets amount the total assets are Total Note: “in one above year” means the one year period adequacyCapital ratio assets ratio riskTier weighted I capital to assets ratio riskTier weighted II capital to assets ratio riskTier weighted III capital to requirementCapital assetsRisk-weighted assets ratio equity total stock to Common 8.42% 3.58% - 5.03% 7.40% 11.17% 4.59% $ $ 834,373,555 93,235,570 4.16% $ 766,117,323 $ 11.03% - 84,474,781 lawsuit for any fault in business in one year any for lawsuit Law in one year Law for management or employee fraud or for or for fraud or employee management for security in one year any incident in one year More Than More (j) accounts Trust (g) items Special memorandum (i) currencies Primary foreign (h) adequacy Capital currencies held currencies (market risk) Management or any employee being involved in being involved employee Management or any The Bank being fined for disobeying the Banking disobeying Bank being fined for The The Bank incurred losses over $50,000 thousand $50,000 thousand losses over Bank incurred The The Bank being punished by MOF for any fault any MOF for Bank being punished by The Primary foreign Primary foreign 22,264 1 Year 1 96.25% 281,425) 181 Days~ Total 7,221,951 7,503,376 1,264.04%) %) %) %) s Than More More 1 year 1 to December 2.74%) Days 3,127 7,503,376 91~180 181 406,875 (281,425) 410,002 7,221,951 1 Year 1 Days~ 2005 1 Year 1 Net revenue Average assets Average Income after tax Income More Than Than More Average net worth net Average December 31, 2006 31, December 31 Income before (after) tax before Income Income before (after) tax before Income Days 91~180 53,797) 406,875 417,965 410,002 471,762 3,127 1 Year 1 36,953,164) (32,476,846) (103,995,579) 24,238,661 148,072,983 107,535,049 202,661,155 585,905,991 111,119,819 75,058,203 98,665,576 610,144,652 December 31 181 Days~ December 31, 2006 31, December (In Thousands of U.S. Dollars) of U.S. Thousands (In 38.31% (137.06%) Period Remaining until Due Date and Amount Due and Amount Due Date Remaining until Period Days 31~90 (In Thousands of U.S. Dollars; %) Dollars; of U.S. Thousands (In December 31, 2006 31, December 2006 (%) 96.25% (%) (1,264.04%) 968,490 417,965 459,714) (53,797) (In Thousands of New Taiwan Dollars) Taiwan of New Thousands (In 41,725,551 (36,953,164) 1,428,204 471,762 1~30 Days 31~90 Days 173,021,793 148,072,983 214,747,344 111,119,819 Interest-sensitive liabilities Interest-sensitive 1.08% 0.84% (3.59%) (2.74%) Days 1~30 18.43% 14.35% (63.40%) (48.29%) Period Remaining until Due Date and Amount Due and Amount Due Date Remaining until Period Interest-sensitive assets assets Interest-sensitive (494,213) (854,122) 328,270 459,914 (328,530) (99,745) 4,847,139 1,952,7575,341,352 1,142,010 2,806,879 848,856 813,740 85,860 388,942 817,656 414,390 917,401 Total Total 174,789) (459,714) 107,461,377) 41,725,551 (174,789) 5,425,494 968,490 5,600,283 1,428,204 1,217,196,971 173,021,793 1,109,735,594 214,747,344 31 of 2006 and 2005, respectively. 31 of 2006 and 2005, Gap (U.S. dollars only) (U.S. Interest-sensitive liabilities Interest-sensitive liabilities = for head office, domestic branches, and OBU. domestic branches, head office, for only (i.e., excluding foreign currency) for both head office currency) both head office for foreign excluding only (i.e., and domestic branches. only for domestic branches, OBU, and overseas branches, and branches, overseas OBU, only for domestic branches, liabilities. assets and contingent contingent excluding earning assets and interest-bearing liabilities with fluctuations. rate interest by affected or cost income inflow 5,425,494 5,600,283 outflow rity cash rity cash Item PretaxTax After PretaxTax After Major matu- Major matu- Note d: Note Ratio of interest-sensitive assets to interest-sensitive Note c: Note Interest sensitivity gap = Interest-sensitive assets - Note b: Return on net worth = b: Note Note c: Profit margin = margin Profit c: Note d:Note Profitability presented above is cumulative from January Note: dollars in U.S. include accounts above listed amounts The Note: The amounts listed above include accounts in NT dollars Note a: Return assets = on total a: Note Note a:Note dollar in U.S. include accounts above listed amounts The b: Note Interest-sensitive assets and liabilities are interest- cash outflow cash inflow (e) Profitability (f) Maturity liabilities of assets and analysis Item 1~90 Days 91~180 Days assets liabilities gap Gap (107,461,377) Major maturity Major maturity Return assets on total Return on net worth margin Profit Interest-sensitive Interest-sensitive Interest-sensitive Interest-sensitive sensitivity Interest liabilities (%) assets to Ratio interest-sensitive of Net worth sensitivity net assetsRatio gap to interest of (%) 22,264 (k) Disclosures on trust assets and liabilities and assets register as (c) Significant policy decision required by the ROC Trust Law were as follows: In consideration of operating performance, the Board of Balance Sheet of Trust Directors resolved to close down the Amsterdam branch, and As of December 31, 2006 approved by the Financial Supervisory Commission, Executive Trust Assets Trust Liabilities Yuan on October 18, 2004. The procedures were completed in Bank deposits $ 120,869 Trust capital March 2005. Insurance claims 294,200 Money trust $ 67,886,7897,886,789 Financial assets Insurance claims 294,200 Common stocks Marketable securi- (d) In accordance with ROC SFAS No. 28, further disclosures are as 122,237 ties trust 122,237 follows: Investments in funds 67,821,945 Real EstatetrustEstatestate trust 572,218 Allowance for doubtful accounts, please refer to Note 7. Adjustmentsdjustmentss 15,816 Administration payable 2 Interest receivable 284 Income taxes payable 28 Land 412,459 Profit and loss 32. DISCLOSURES UNDER STATUTORY REQUIREMENTS Buildings Realized capital Material Transactions 669 through Construction in progress 107,475 profit and loss 2,130 No. Item Explanation Investment profit Accumulated purchases and sales balance of specific investees’ and loss 17,872 1 marketable security over NT$30030000 million or 10%0% of outstand- None Unrealized capital gain ing capital as of December 31, 2006 6 Common stocks Acquisition of fixed assets over NT$30030000 million or 10% 0% of out- 10,422 2 None Unrealized capital gain standing capital as of December 31, 2006 6 Investment in funds 5,633 Disposal of fixed assets over NT$30030000 million or 10%0% of out- 3 Table 1 Unrealized capital loss standing capital as of December 31, 2006 6 Investment in funds (239) Discount on fees income from related parties over NT$5 5 4 None Unappropriated retained million earnings (15,338) Receivables from related parties over NT$300 30000 million or 10%0% 5 None of outstanding capital Total trust assets $ 68,895,954 Total trust liabilities $ 68,895,954 6 Sale of NPL over NT$55 billion None ̚ Trust Assets Register Securitized instruments and related assets which are in ර As at December 31, 2006 7 accordance with the Statute for Financial Assets Securitization Note 8 ϔ Investments Book value and the Statute for Real Estate Securitization Other significant transactions which may affect decisions of ઼ 8 None ˝ Bank deposits $ 120,869 the users of the financial statementss ˩ Insurance claims 294,200 Financial assets ̣ Common stocks 111,815 Information on Chang Hwa Bank’s Investees ѐ Investments in funds 67,848,183 No. Item Explanation ą Land 412,459 1 Investees’names,nvestees’ names, locations, etc Table 2 ѐ Buildings 669 2 Capital lending to another party None ಡ Construction in progress 107,475 3 Endorsement for another party None Others 284 4 Marketable securities held as of December 31, 2006 None 5 Derivative instrument None Total trust assets $ 68,895,954 Accumulated purchases and sales balance of specific market- 148 6 able security over NT$30030000 million or 10%0% of outstanding None 31. LOANS TO PARTIES WITH COMMON INTERESTS capital for the year ended December 31, 2006 (a) Related party credit transaction Acquisition of property, plant and equipment over NT$30030000 Number of Ending Amount of 7 million or 10%0% of outstanding capital for the year ended De- None Item Customers Balance Potential Loss cember 31, 2006 Consumers loans (Note a) 1,497 576,782 - Disposal of property, plant and equipment over NT$30030000 mil- 8 lion or 10%0% of outstanding capital for the year ended Decem- None Employees’ mortgage loans 1,490 3,969,198 - ber 31, 2006 Loansoans for other related parties (Note(Noteb) b) 785 19,581,997 - Discount on fees income from related parties over NT$55 9 None Loans guaranteed by related parties 1,288 4,197,384 - million Receivables from related parties over NT$300 30000 million or 10%0% Loans with collateral provided by 10 None 1,500 9,879,687 - of outstanding capital related parties 11 Sale of NPL over NT$55 billion by subsidiary None Note a: Consumers loans are defined by the Banking Law. Other significant transactions which may affect decisions of 12 None Note b: Consumers loans and employees’ mortgage loans are the users of the financial statementss not included. Note c: Related parties are defined by the Banking Law. 33. SEGMENT INFORMATION (a) Industry segments (b) Information of invested company Chang Hwa Bank only operates business in accordance with Percentage of NameCost ownership Article 3 of the Banking Act of the Republic of China. Therefore, Chang-Yinn InsuranceAgentInsurance Agent Co., Co., Ltd. Ltd. (Noteb)(Noteb)(Note b) ) $45,400 100.00 Chang Hwa Bank does not have industry segments for disclosure. Chang-Yinn InsuranceBrokerCo.,Insurance Broker Co., Ltd. Ltd. (Noteb) (Note(Noteb) b) ) 16,244 100.00 (b) Geographical segments Taiwan Television Enterprise 96,506 7.25 The operating income of Chang Hwa Bank’s overseas Taipei Coal Gas Corp. 444 9.00 Lieu-An Service Co., Ltd. 1,250 5.00 departments is not over 10% of consolidated operating income. ING Securities Investment & Trust Co. 40,812 9.14 In addition, their assets are not over 10% of total assets either. Chi-Yi Construction Management Company (Note c) 6.89 Thus, no financial information by geographical segments is Taiwan Assets Management Co., Ltd. 2,000,000 11.35 Financial Evolutionvolutionolution Co., Ltd. 19,285 5.13 disclosed. Note a: Invested company in which Chang Hwa Bank’s (c) Information of foreign sales ownership was more than 5% of the investees’ voting The revenue from foreign sales done by the domestic shares. departments of Chang Hwa Bank to individuals is not over 10% Note b: Include the original investment amount and profit and of total revenue on income statement. loss recognized under the equity-method. (d) Information of important customers Note c: Chang Hwa Bank had recognized the loss on investment in Chi-Yi Construction Management Company of 382,500 Chang Hwa Bank doesn’t have important customers shares. contributing revenue more than 10% of total revenue. None Note s net ANNUAL REPORT 2006 ’s net 149 s net ’s net AgreementAgreement income of current of current income period $33,062 - bonus $278) employee income of current of current income period $10,044 - bonus $63) employee Recognized Current Period Current Income (Loss) of (Loss) Income institution Appraised by professional professional by Appraised Pricing ReferencePricing Other Agreement Net Current Period Current Income (Loss) of (Loss) Income (In Thousands of New Taiwan Dollars) Taiwan of New Thousands (In Purpose Disposal Book Book Value (In Thousands, Except for Percentage and Shares) Percentage for Except Thousands, (In (%) ship NoneNone ,000 100.00 16,244 10,044 $9,981 (investee’s net ,000 100.00 $45,400 $33,062 $32,784 (investee’s net Owner- Interest Interest Ending Balance Party he Relationship he Relationship Shares TheRelationship to the Transaction Transaction the to ,000 500,000 Year Year 2005 End of ,000 2,000 School 2,000 $2,008 $2,008 500,000 Amount hin Min High Shin Min High Investment Investment Year 2006 End of gistered capital gistered nd for the year ended December 31, 2006 31, ended December the year nd for insurance insurance broker agent Line of Property Life insurance insurance Life Business Payment Party Transaction R.O.C. R.O.C. Taipei Taipei , R.O.C. , , R.O.C. , Amount Transaction Transaction Taiwan, R.O.C. Taiwan, R.O.C. Shan N. Rd., Taipei Rd., N. Shan Taiwan, R.O.C. City, City, Taiwan, R.O.C. City, Shan N. Rd., Taipei Rd., N. Shan Investees’ Location Investees’ 6F, No. 57, Sec. 2, Zhong 2, Sec. 57, No. 6F, 6F, No. 57, Sec. 2, Zhong 2, Sec. 57, No. 6F, Date Transaction Transaction Ltd. Insurance Insurance Broker Ltd. Insurance Insurance Ltd. Agent Names Name Investees’ Investees’ Land 2006.01.13 $304,500 Received Property Chang-Yin Chang-Yin Chang-Yin Chang-Yin Seller Bank Bank Investor Chang Hwa Hwa Chang Chang Hwa Hwa Chang Table 2 Information on investees’ names, locations, etc. as of a 2 etc. Table locations, names, on investees’ Information Table 1Table or 10% of re NT$300 million assets over of fixed Disposal ੑચಡܑ׀Ъ Consolidated Financial Statement āā३ځᓏāā ᒉຽಡӘ३ᙯܼЋ׀Ğҋ˝˩̣ѐ˘͡˘͟Ҍ˩˟͡ˬ˩˘ͤ͟ğֶĶᙯܼЋຽЪޘāāώҖϔ઼˝˩̣ѐ ੑચಡܑ̝̳Φᄃֶੑચົࢍ̳ಡௐ׀ੑચಡܑ̈́ᙯܼಡӘ३በᄦķᑕৼˢበᄦᙯܼЋຽЪ׀ຽЪ ೬ϓ݈ٺੑચಡܑٙᑕ೬ᜨ࠹ᙯྤੈ׀ੑચಡܑ̝̳ΦӮ࠹ТĂͷᙯܼЋຽЪ׀ᑕৼˢበᄦϓ̳̄ΦЪཱི˛ ੑચಡܑĄ׀ੑચಡܑ̚Ӯ̏೬ᜨĂ̙ࠖГΩҖበᄦᙯܼЋຽЪ׀ΦЪ̳̄ بАᑶ॑ ̚ ර ϔ ઼ ˝ ˩ ̣ ѐ ą ѐ ͍˚αЊࡏڜಡ ˚͍ϐၴîˣੌᄀн 150 نç࠸ʇîડçјç ̚රϔ઼˝˩̱ѐ˟͡˩̱͟ ANNUAL REPORT 2006 151 tandard (SFAS) f Affiliated Enterprises in closed inthe Consolidated ently, Chang Hwa Bank would idated financial statement in ntical to the entities within the liation Report, Consolidated Business Reports ¿ liated Enterprises separately. ¿ Representation nancial statement in accordance with Statement of Financial Accounting S ¿ The consolidated entities within the Consolidated Financial Statement o accordance with the Criteria Governing Preparation of Af consolidated and Consolidated Financial Statements of Affiliated Enterprises are ide Chang Hwa Commercial Bank Ltd. February 16, 2007 No. 7 "Consolidated Financial Statements".Financial All Statement information of should Affiliated be Enterprises dis accordance is with disclosed SFAS No. in 7 the "Consolidated Financial consol not Statements". prepare the Consequ Consolidated Financial Statement of Af ົࢍरߤ८ಡӘ ၓ̼થຽᅙҖ۵Њѣࢨ̳Φā̳ᝦĈ ̣˩˝யๅܑĂၱϔ઼ྤ׀āāၓ̼થຽᅙҖ۵Њѣࢨ̳Φ̳̈́̄Φϔ઼˝˩̣ѐ˩˟͡ˬ˩˘̝͟Ъ ߹ณܑĂຽགྷώົࢍरߤ८ඇܛன׀ᝋৈតજܑ̈́Ъڌ۵׀ຫৈܑăЪ׀ѐ˘͡˘͟Ҍ˩˟͡ˬ˩˘̝͟Ъ ಡӘĄၓ̼થڍੑચಡܑ̝በᄦܼ̳Φგநลᆸ̝యЇĂώົࢍर̝యЇࠎॲፂߤ८ඕ׀Ą˯ฟЪְ ˟ϔ઼˝˩̣ѐٺੑચಡܑܼϤົࢍरߤ८Ă֭׀Ъ̝ޘຽᅙҖ۵Њѣࢨ̳Φ̳̈́̄Φϔ઼˝˩αѐ ܲຍ֍ߤ८ಡӘĄ͟˝͡ Ꮙຽੑચಡܑఢķ̈́˘ਠ̳ᄮᆶࢍఢထ֭ેҖߤ८̍үĂͽܛāāώົࢍरֶܼĶົࢍरߤ८ᘪᙋ ᗝ̈́ٙ೬ܛੑચಡܑٙЕ׀Ъפੑચಡܑѣࢦ̙̂၁ܑ྿Ąѩีߤ८̍үΒ߁ͽ٩ߤ͞ёᒔ׀ЪܫЪநቁ ׀ੑચಡܑٙଳϡ̝ົࢍࣧ̈́ٙү̝ࢦ̂ົࢍҤࢍĂၱෞҤЪ׀ᜨְี̝ߤ८ᙋፂăෞҤგநลᆸበᄦЪ ̚ ර ѩีߤ८̍үΞ၆ܑٙϯ̝ຍ֍೩ֻЪநֶ̝ፂĄܫϔ ੑચಡܑፋវܑ̝྿Ąώົࢍर࠹ ઼ ੑચಡܑд׀Ъޘāāֶώົࢍर̝ຍ֍Ăௐ˘߱ٙၓ̼થຽᅙҖ۵Њѣࢨ̳Φ̳̈́̄Φϔ઼˝˩̣ѐ ˝ ˩ થຽົࢍந̚ᄃੑચົࢍ̈́ڱٙѣࢦ̂͞ࢬֶܼĶ̳ฟ൴ҖᅙҖੑચಡӘበᄦķăથຽົࢍ ̣ ѐ ą ࠹ᙯ̝ఢؠၱ˘ਠ̳ᄮົࢍࣧበᄦĂ֖ͽ̯༊ܑ྿ၓ̼થຽᅙҖ۵Њѣࢨ̳Φ̳̈́̄Φϔ઼˝˩̣ѐ ߹ܛன׀ᄃЪڍགྷᒉј׀Ăၱϔ઼˝˩̣ѐ˘͡˘͟Ҍ˩˟͡ˬ˩˘̝͟Ъڶېੑચ׀ѐ ˩˟͡ˬ˩˘̝͟Ъ ಡ ณĄ ොˬٙĂၓ̼થຽᅙҖ۵Њѣࢨ̳Φ̳̈́̄Φҋϔ઼˝˩̣ѐ˘͡˘͟Ăଳϡາ൴ܢāāтੑચಡܑ 152 Ꮙથݡܑ̝྿ᄃ೬ᜨķĂܛᏉથݡ̝ົࢍநķ̈́ௐˬ˩ཱི̱Ķܛο̝ੑચົࢍ̳ಡௐˬ˩αཱིĶ ͽ̈́࠹ᙯ̳ಡ੨Ъາ࣒ࢎ̝୧͛Ą ࢍरְચٙົܫ๔ຽி ົࢍरች Ԉ ே ົࢍरਃ ၷ ᐌ ၱഇఱგந؎ࣶົ८ཱིࣞ͛דၱഇఱგந؎ࣶົ८ཱིࣞ͛ ੑ߆ొᙋדੑ߆ొᙋ έੑᙋ̱фௐ0920123784ཱི έੑᙋ̱фௐ0920123784ཱི ̚රϔ઼˝˩̱ѐ˟͡˩̱͟ ANNUAL REPORT 2006 153 nancial ¿ Accounting and related ņ Ň he Preparation ommercial Bank, inancial Statements rs whose report dated rform the audit to obtain ting Law and Guidelines AS) No. 34 isclosures in the financial e results of its operations sed and significant estimates nancial position, results of operations ds, and accounting principles nancial statements are those generally ¿ ang Hwa Bank's management. ¿ standards generally accepted in consolidated financial statements have been epted in the Republic of China and not those of nancial statements. ed in the Republic of China. If there is any conflict ¿ ence in the interpretation of the two versions, the Chinese- t such consolidated nancial statement presentation. We believe that ¿ ows for the year thenended(all expressed inNew À nancial statements based on our audit. The nancial statements, effective on January 1, 2006, the ¿ ¿ Notice to Readers nancial statements are free of material misstatement. An audit ¿ ed opiniononthose nancial statements referred to above present fairly, in all material ¿ Financial Instruments: Disclosure and Presentation ¿ ņ ) as of December 31, 2006, and the related consolidated statements Ň nancial statements are intended only to present the ¿ No. 36 INDEPENDENT AUDITORS' REPORT Ň the Bank nancial statements shall prevail. ¿ ņ ows for the year then ended, in conformity with the Regulations Governing t À ows in accordance with accounting principles and practices generally acc À As mentioned in Note 3 to the consolidated For the convenience of readers, the auditors' report and the accompanying The accompanying consolidated We have audited the accompanying consolidated balance sheet of Chang Hwa C In our opinion, the consolidated We conducted our audit in accordance with the Rules Governing the Audit of F February 16, 2007 amendments to other SFASs. for Financial Instruments Bank adopted the amended Statement of Financial Accounting Standards (SF of Financial Reports ofGoverning Public Business Banks, Accounting requirements relevant ofgenerally to the accepted financial in Business accounting the Accoun Republic standar of China. and its cash respects, the financial position of the Bank as of December 31, 2006, and th accepted and applied in the Republic of China. The Board of Directors and Shareholders Chang Hwa Commercial Bank, Ltd. Ltd. and subsidiaries ( of income, changes in shareholders'Taiwan equity, dollars). and cash These financial statements are the responsibility of Ch Our responsibilityis to express anopiniononthese statements of the BankFebruary as 9, of 2006, expressed December anunquali 31, 2005, were audited by other audito of Financial Institutions bythe Certified Republic Public of Accountants, China. andreasonable auditing assurance Those about rules whether and the includes standards examining, require on that a westatements. test plan basis, and An evidence pe audit supportingmade also the by includes amounts management, assessing and as the well d our accounting as audit evaluating principles provides the a u overall reasonable basis for our opinion. translated into English from the original Chinese version prepared and us between the English version and the original Chinese version or any differ and cash any other jurisdictions. The standards, procedures and practices to audi language auditors' report and ၓ̼થຽᅙҖ۵Њѣࢨ̳Φ̳̈́̄Φ CHANG HWA COMMERCIAL BANK AND ITS SUBSIDIARIES யๅܑྤ׀Ъ CONSOLIDATED BALANCE SHEETS ϔ઼˝˩̣ѐ̈́˝˩αѐ˩˟͡ˬ˩˘͟ DECEMBER 31, 2006 AND 2005 (InThousandsof New TaiwanDollars) ಏҜĈາέ။Ζ̮ 95.12.31 94.12.31 Percentage Dec. 31, 2006 Dec. 31, 2005 of Variation ྤய ASSETS Amountܛᗝ Amountܛᗝ តજѺ̶ͧĞƦğ னܛ̈́ࡗ༊னܛ Cash and cash equivalents $ 44,126,917 $ 58,079,098 -2424 ࣄᅙҖТຽ Duefrom Central Bank and call loans to banksٵδҖ̈́ٸх ā 116,366,938 117,014,169-1 1 ̳πᆊࣃតજЕˢຫৈ̝ܛᏉྤயůஐᗝ Financial assets at fair value through profit or loss ā 11,146,041 28,447,641-61 61 Ըྤ Bonds and securities purchased under resell agreements 8,559,731 6,580,178 30דๅ̈́דаைܢ ̚ ර ᑕќഠีůஐᗝ Receivables, net 17,676,245 22,105,874-20 20 ϔ ઼ ഠůஐᗝ Loans, net 863,458,135 834,431,158 3ٸ෭ன̈́ ˝ ˩ Ꮙྤயůஐᗝ Available-for-sale financial assets 69,275,366 45,373,552 53ܛ౯ֻ ̣ ѐ Ꮙྤயůஐᗝā Held-to-maturity financial assetsܛഇ͟זą ѣҌ ѐ ā 167,548,463 183,300,157-9 9 ಡ Ꮙྤயůஐᗝ OTHER FINANCIAL ASSETS, NETܛ ͽјώᏊณ̝ܛᏉྤய Financial assets carried at cost 4,834,177 5,605,782 -1414 Ըྤ Bond investments with no active market 2,594,134 1,485,871 75ד߿ඛξಞ̝ๅ Ꮙྤய Other miscellaneous financial assets 64,397 81,772 -2121ܛ̦ี 154 ᏉྤயůஐᗝЪࢍ Other financial assets, net 7,492,708 7,173,425 4ܛ ؠྤய PROPERTY AND EQUIPMENT ؠྤயࣧؕјώ Cost ˿гĞӣࢦҤᆧࣃğ Land 17,092,967 17,096,509 - ĞӣࢦҤᆧࣃğ Buildings 7,721,258 7,008,664 10ޙ̈́ޏٗ ፟ୠన౯ Machinery equipment 3,961,080 3,673,803 8 Ϲ఼̈́ྻᏮన౯ Transportation equipment 641,959 616,958 4 ̦ีన౯ Miscellaneous equipment 1,441,824 1,349,262 7 ১ྨᝋৈԼ։ Leasehold improvements 557,186 532,783 5 јώ̈́ࢦҤᆧࣃЪࢍ 31,416,274 30,277,979 4 ഴĈࢍԶᖞ Accumulated depreciation (6,571,206) (6,146,687) 7 24,845,068 24,131,292 3 ϏԆ̍̈́ࢎᔉ፟І Construction in progress and ordered machines 228,690 848,931 -7373 ;ٗгഠ Prepayment for land and buildings - 45,825 -100100 - ؠྤயஐᗝ Property and equipment, net 25,073,758 25,026,048 ԛྤயůஐᗝ INTANGIBLE ASSETS 113,864 65,920 73 ྤய OTHER ASSETS ᒉຽྤய Other miscellaneous assets 7,162,621 8,279,536-13 13ܧ ᅍؼٙඁྤய Deferred tax assets 17,553,671 20,436,342 -1414 ྤāāயāāᓁāāࢍ TOTAL $ 1,355,554,458 $ 1,356,313,098 - 3 1 -3 -1 ANNUAL REPORT 2006 155 - 1 2 -1 -2 ,251 27 100 100 100 5 -100 -100 -100 -5 12 -12 100 -100 Percentage of Variation តજѺ̶ͧĞƦğ -- 33 -100 ܛᗝ 8,243,929 1 76,404,318 8 94.12.31 1,279,908,780 -1 Amount Dec. 31, 2005 $ 1,356,313,098 - - 1,500,000 -100 ܛᗝ 326,149 8,298,402 82,184,549 95.12.31 1,273,369,909 14,000,000 14,000,000 - 48,094,756 48,094,756 - Amount Dec. 31, 2006 $ 1,355,554,458 EQUITYEQUITYEQUITY ŅŅŅ S Other financial liabilitiesOther liabilities 350,400 354,050 -1 Bonds and securities sold under repurchase agreementsPayablesDepositsBands payable20,000,000Accrued pension liabilities 16,226,247 20,000,000 12,749 - 40,826,704 2,331,485 1,022,818,087 38,786,615 999,289,223 2,391,611 5 2 -3 LIABILITIES AND SHAREHOLDERS Total liabilities Preferred stock-type B, $10 par value; Non-cumulative, Participating, and Preferred stock-type A, $10 par value; Cumulative, Non-participating, and issued 150,000,000 shares in 2005. Maturity date: Sep. 8, 2006. Common stock, $10 par value; Issued 4,809,475,600 shares both on 2006 and 2005. Unrealized gains or losses on financial instruments Additional paid-in capital in excess of par - 39,256,183 -100 Unappropriated earnings (deficit) 11,377,055 (36,182,905) - Legal reserve - 1,258,722 -100 Revaluation increments 8,047,530 8,215,530 -2 Cumulativetranslation adjustments 339,059 262,032 29 Total shareholders' equity Capital surplus Capital stock Retained earnings Dueto banks and Bank Central $ 162,085,482 $ 184,164,623 -12 Funds borrowed from Central Bank and banksFinancial liabilities at fair value through profit or loss 384,585 48,517 13,523,8 405,645 -5 TOTAL SHAREHOLDERS' EQUITY ̮ć ̮ć 1,40 issued 1,400,000,000 shares in 2006 and 2005. ۵ćຽ 10 10 ۵ ̮ć˝˩ 10 གྷநˠĈౘஏҐ ົࢍგĈ഼ሗ ڟĈૺұܜְ ۵ğ 150,000,000 4,809,475,600 ۵ Ꮙๅ ๅܛ ๅד෴аைๅܢ ā ๅܛᑕࢍੜЃ דᏉๅܛ;ᝋৈ ᑕ;ഠี хഠ̈́๗ഠ ᑕڌๅ̈́۵ 6,500,000,000 0,000,000 ۵ώ໕ᆊ ᎕ણΐĂ˝˩̣ѐ̈́˝˩α āѐ˩˟͡ˬ˩˘͟൴ҖӮࠎ āܧ఼۵۵ώĂՏ۵ࢬᗝ ˙পҾ۵۵ώĂՏ۵ࢬᗝ ā ഇזѐ˝͡ˣ̣͟˩˝ٺણΐĂ˝˩αѐ˩˟͡ˬ ā˩˘͟൴Җࠎ ā̏ܧϥপҾ۵۵ώĂՏ۵ࢬᗝ ā᎕ ᎕࠳ዶĞᓪğ ؠ࠳ዶ̳᎕ڱ ạ̄ѐ̈́˝˩αѐ˩˟͡ˬ˩˘͟ āć൴ҖӮࠎ ࢦҤᆧࣃ ᏉྤயϏ၁னຫৈܛ᎕ೱზአፋᇴ ౯ֻ ᝋৈЪࢍڌ۵ ྤώ̳᎕ ܲ࠳ዶ ۵ώĞᗝؠ ᝋৈีϫڌ۵ āāๅЪࢍ ᝋৈڌ۵ ᝋৈᓁࢍڌๅ̈́۵ δҖ̈́ᅙҖТຽхഠ δҖ̈́ТຽᏉྤ ̳πᆊࣃតજЕˢຫৈ̝ܛᏉๅ ၓ̼થຽᅙҖ۵Њѣࢨ̳Φ̳̈́̄Φ CHANG HWA COMMERCIAL BANK AND ITS SUBSIDIARIES āຫāৈāܑ׀Ъā CONSOLIDATED STATEMENTS OF INCOME ϔ઼˝˩̣ѐ̈́˝˩αѐ˘͡˘͟Ҍ˩˟͡ˬ˩˘͟ YEARS ENDED DECEMBER 31, 2006 AND 2005 (In Thousands of New Taiwan Dollars, Except Earnings (Loss) Per Share) ಏҜĈາέ။Ζ̮Ăଘ Տ۵࠳ዶࠎ̮ Percentage 95ѐޘ 2006 94ѐޘ 2005 of Variation Amountܛᗝ Amountܛᗝ តજѺ̶ͧĞƦğ Ӏिќˢ INTEREST INCOME $ 38,784,294 $ 32,776,811 18 ഴĈӀिϡ INTEREST EXPENSES (20,563,981) (15,710,703) 31 Ӏिஐќৈ NET INTEREST INCOME 18,220,313 17,066,108 7 Ӏिͽγஐќৈ NET INCOME OTHER THAN INTEREST INCOME ͘ᜈஐќৈ Fee income, net 2,515,071 2,386,238 5 Gains on financial assets and liabilities at fair value ̳πᆊࣃតજЕˢຫৈ̝ܛᏉྤய̈́ๅຫৈ (44,509) (18,470) 141 ̚ through profit or loss Ꮙྤய̝̏၁னຫৈ Realized gains on available-for-sale financial assets 423,807 188,100 125ܛර ౯ֻ ϔ ઼ Ҹೱຫৈ Foreign exchange gains, net 731,346 1,133,113-35 35 ˝ ྤயഴຫຫε Loss on asset impairment (257,837) (209,253) 23 ˩ ќаӑ̈́࿅ഇ Gain on collection of nonperforming loans 7,374,907 4,531,898 63 ̣ Ӏिஐຫৈ Other miscellaneous net income 984,700 1,595,664-38 38ܧ ѐ ą Чี೩х Other miscellaneous reserves (100,000) (9,892) 911 ѐ ಡ ஐќৈ GROSS INCOME 29,847,798 26,663,506 12 ഠӑϡ PROVISION FOR LOAN LOSSES (4,525,824) (62,716,748)-93 93ٸ 156 ᒉຽϡ OPERATING EXPENSES ϡˠϡ Personnel (7,116,440) (8,048,154)-12 12 Զᖞ̈́ᝊዚϡ Depreciation (750,991) (681,407) 10 ຽચ̈́გநϡ Others (3,115,289) (3,146,826) -11 ᚶᜈᒉຽొܝඁ݈ஐӀĞຫğ INCOME (LOSS) BEFORE INCOME TAX 14,339,254 (47,929,629)- ٙඁĞϡğӀৈ INCOME TAX (EXPENSE) BENEFIT (3,254,837) 11,413,875- NET INCOME (LOSS) BEFORE CUMULATIVE EFFECTS OF ᚶᜈᒉຽొܝඁޢஐӀĞຫğ 11,084,417 (36,515,754) - CHANGES IN ACCOUNTING PRINCIPLES CUMULATIVE EFFECTS OF CHANGES IN ACCOUNTING -- ࢍࣧតજ̝᎕ᇆᜩᇴĞഴੵٙඁϡ̝ஐᗝğ 292,638ົ PRINCIPLES -(ώഇຫৈ NET INCOME (LOSS) $ 11,377,055 ($36,515,754׀Ъ : ᓁຫৈᕩᛳ Net Income belonging to׀Ъ -(Common shareholders of parent $ 11,377,055 ($36,515,754 ڌϓ̳Φ۵ - - - ᇴ۵ᝋ Minority shareholder͌ $ 11,377,055 ($36,515,754) - 95ѐޘ 2006 94ѐޘ 2005 Pretax ඁ݈ After-tax ඁޢ Pretax ඁ݈ After-tax ඁޢ ώՏ۵࠳ዶ BASIC EARNINGS (LOSS) PER SHAREૄ Net income (loss) before cumulative effects of changes in ΐࢍົࢍࣧតજ̝᎕ᇆᜩᇴ݈৷ৈ $ 2.79 $ 2.12 ($10.04) ($7.67) accounting principles ົࢍࣧតજ̝᎕ᇆᜩᇴ Net cumulative effects of changes in accounting principles 0.06 0.06 - - ώഇຫৈ Net income (loss) $2.85 $ 2.18 ($10.04) ($7.67) ංᛖՏ۵࠳ዶ DILUTED EARNINGS (LOSS) PER SHARE Net income (loss) before cumulative effects of changes in ΐࢍົࢍࣧតજ̝᎕ᇆᜩᇴ݈৷ৈ $ 2.26 $ 1.74 ($10.04) ($7.67) accounting principles ົࢍࣧតજ̝᎕ᇆᜩᇴ Net cumulative effects of changes in accounting principles 0.05 0.05 - - ώഇຫৈ Net income (loss) $2.31 $ 1.79 ($10.04) ($7.67) གྷநˠĈౘஏҐ ົࢍგĈ഼ሗ ڟĈૺұܜְ ANNUAL REPORT 2006 157 448,141 $ 74,824,333 Ъࢍ Total 11,377,055 (36,515,754) $ 82,184,549 - - 032 76,404,318 Translation Cumulative ಏҜĈາέ။Ζ̮ Adjustments $ 339,059 ᎕ೱზአፋᇴ - - Instruments Loss on Financial Unrealized Gain or ᝋৈአፋ $ 326,149 ᏉથݡϏ၁னຫৈܛ - - Equity Adjustment (1,442,843) - - - (1,442,843) Increments Revaluation - (5,114) - - - (5,114) Ϗ၁னࢦҤᆧࣃ $ 8,047,530 11,377,055 Unappropriated (36,515,754) ᎕࠳ዶĞᓪğ $ 11,377,055 Earnings (Deficit) -- - - ܲ࠳ዶ Retained Earnings Legal Reserve ؠ࠳ዶ̳᎕ڱ $- - - ྤώ̳᎕ Capital Surplus $- - - - 14,000,000 22,560,493 - - - - - 36,560,493 ------(35,796) - - - (35,796) ------376,020 (376,020) - (366,000) ------(366,000) - - - - - 3,571,108 - - 3,571,108 ------(186,109) (186,109) ᝋৈតજܑڌ۵׀Ъ পҾ۵ $ 14,000,000 Preferred Stock - - ۵ώ $ 48,094,756 $ 1,500,000 $ 16,695,690 $ 882,702 $ 2,558,622 $ 4,644,422 $ - $ (InThousandsof New TaiwanDollars) ၓ̼થຽᅙҖ۵Њѣࢨ̳Φ̳̈́̄Φ Capital Stock ఼۵ $ 48,094,756 YEARS ENDED DECEMBER 31, 2006 AND 2005 Common Stock ϔ઼˝˩̣ѐ̈́˝˩αѐ˘͡˘͟Ҍ˩˟͡ˬ˩˘͟ - (1,500,000) (4,500,000) - - - - - (6,000,000) ------326,149 - 326,149 - - (34,756,183) (1,258,722) 36,182,905 (168,000) ------77,027 77,027 CHANG HWA COMMERCIAL BANK AND ITS SUBSIDIARIES ,094,756 15,500,000 39,256,183 1,258,722 (36,182,905) 8,215,530 - 262, 48,094,756 CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY གྷநˠĈౘஏҐ ົࢍგĈ഼ሗ ڟĈૺұܜְ ࣶ̍ࡓӀ Employee bonusesٸႾְ࿌౻ Stock dividends ൴ٸ൴ ۵ि̈́ࡓӀ Cash dividendsܛனٸপҾ۵۵ि Dividends on preferred stock ൴ٸؠ࠳ዶ̳᎕ Legal reserve ൴ڱ೩Е to equity Appropriation of 2004 earnings Reserve for land revaluation increment tax transferred sunefpeerdtc -Issuanceof TypeB preferredstock for cash BALANCE, JANUARY 1, 2005 Adjustment of exchange rate fluctuation Netlossin2005 ˝˩ˬѐޘ࠳ዶ̶੨ ˿гᆧࣃඁඁதአࢫயϠ̝ྤώ̳᎕ ᆧྤ൴ҖপҾ۵ܛன ˝˩αѐ˘͡˘͟ዶᗝ ᎕ೱზአፋᇴ ˝˩αѐޘඁޢஐຫ assets BALANCE, DECEMBER 31, 2005 Unrealized gains or losses of available-for-sale financial Redemption of matured preferred stock - Type A Adjustment of exchange rate fluctuation Net income in 2006 Appropriation of 2005 loss ˝˩αѐ˩˟͡ˬ˩˘͟ዶᗝ ᏉྤயϏ၁னຫৈ̝តજܛ౯ֻ ഇќаזপҾ۵ ᎕ೱზአፋᇴ ˝˩̣ѐޘඁޢ৷ৈ ᑓྃᓪຫ BALANCE, DECEMBER 31, 2006 ˝˩̣ѐ˩˟͡ˬ˩˘͟ዶᗝ ၓ̼થຽᅙҖ۵Њѣࢨ̳Φ̳̈́̄Φ CHANG HWA COMMERCIAL BANK AND ITS SUBSIDIARIES ߹ณܑܛன׀Ъ CONSOLIDATED STATEMENTS OF CASH FLOWS ϔ઼˝˩̣ѐ̈́˝˩αѐ˘͡˘͟Ҍ˩˟͡ˬ˩˘͟ YEARS ENDED DECEMBER 31, 2006 AND 2005 (InThousandsof New TaiwanDollars) ಏҜĈາέ။Ζ̮ ˝˩̣ѐޘ ˝˩αѐޘ 2006 2005 ᒉຽ߿જ̝னܛ߹ณ CASH FLOWS FROM OPERATING ACTIVITIES ώഇஐӀĞຫğ Net income (loss) $ 11,377,055 ($36,515,754) አፋีϫ Adjustments to reconcile net cash provided by operating activities ߹ณ̝ຫৈีϫ̈́አፋีϫ Gains or losses with no effect on cash flows and other adjustmentsܛᇆᜩன̙ Զᖞ̈́ᝊዚ Depreciation and amortization 750,991 681,407 (̶ؠ̈́ยཉྤயӀৈ Gain on disposal of property and equipment (234,623) (97,970 ̚ ഴຫຫε Losses on asset impairment 257,837 209,253 ර ϔ ഠӑϡ Provisions for loan losses 4,525,824 62,716,748ٸ ઼ ˝ Чี೩х Provisions for other losses 100,000 9,892 ˩ ̣ (ԸྤԶ໕ᆊᝊዚ Amortization of premium or discount on investment in bonds (1,808,688) (1,301,621דѐ ๅ ą ѐ ̶ԸྤӀৈ Gains on saleof financial assets (530,293) (576,009) ಡ - Ꮙથݡෞᆊຫε Loss on financial instruments valuation 139,298ܛ 158 ᒉຽྤய̝Ğᆧΐğഴ͌ Net changes in operating assets ̳πᆊࣃតજЕˢຫৈ̝ܛᏉྤய Financial assets at fair value through profit or loss 17,459,871 4,895,595 ᑕќഠี Receivables 4,324,031 (3,107,703) (ᅍؼٙඁྤய Deferred income tax assets 2,882,671 (11,618,326 (ྤய Other assets 1,055,525 (295,708 ᒉຽๅ̝ᆧΐĞഴ͌ğ Net changes in operating liabilities ̳πᆊࣃតજЕˢຫৈ̝ܛᏉๅ Financial liabilities at fair value through profit or loss (13,772,885) (1,713,599) ᑕ;ഠี Payables 2,021,017 11,020,713 ᑕࢍੜЃܛๅ Accrued pension liabilities (60,125) 330,598 (Ꮙๅ Other financial liabilities (3,650) (54,195ܛ (ๅ Other liabilities 54,475 (137,640 ᒉຽ߿જ̝ஐனܛ߹ˢ Net cash provided by operating activities 28,538,331 24,445,681 ANNUAL REPORT 2006 159 8) 48) 54) 44 ,769,234 2,835,034 38,173 22,165,981) 238,718 $22,165,981) 2005 32,500,662 36,560,493 70,458,308 25,578,436 (69,177,617) ˝˩αѐޘ $ 58,079,098 $$ 15,270,739 253,911 $ 3,571,108 31 - - 996 2,081,867 647,231 ($22,165,981) 388,244 58,079,098 (1,094,344) 2006 (13,952,181) (41,473,195) ˝˩̣ѐޘ $ 44,126,917 $$ 19,921,100 727,231 $- $ 647,231 ments (1,979,552) 648,667 Net cash (used in) provided by financing activities Net cash used in investing activities Incometax Interest (Increase) decrease in bonds and securities purchased under resell agree Decrease (increase) in due from Central Bank and call loans to banksIncrease in loans (including delinquent loans) $ 647,2 (33,547,203) (17,926,42 Increase in available-for-sale financial assets (41,759,087) (24,220,3 Proceeds of the sale of available-for-sale financial assets 20,613,854 11 Increase in held-to-maturity financial assets (499,177,205) (829,897,7 Proceeds refunded from held-to-maturity financial assets 514,928,899 81 Increase in financial assets carried at costProceeds of the sale of financial assetsIncrease carried in at bond cost investments with no activeDecrease market in other financial assetsPurchase of property and equipmentProceeds of the sales of property and equipment 170,807 (1,146,750) (418) - - (905,479) 293,464 - (1,314,381) 855,622 Reserve for land revaluation increment tax transferred to equity Cash paid during theyear (Decrease) increase in due to Central BankIncrease and in banks deposits and remittancesDecrease in call loans from banks andRedemption Central of Bank matured preferred stock - ACash dividends distributedPayment of bonus to directors, supervisors andIssue employees of preferred stock - B (22,079,142) 7,738,5 (21,060) 23,528,862 (6,000,000) - (70,011) 25,997,168 (40,910) - - (1,808,843) Increase in bonds and securities sold under repurchase agreements 3,476, CASH FLOWS FROM INVESTING ACTIVITIES FINANCIAL ACTIVITIES WITH NO EFFECT ON CASH FLOWS SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION CASH FLOWS FROM FINANCING ACTIVITIES CASH AND CASH EQUIVALENTS, END OF YEAR EFFECT FROM EXCHANGE RATE FLUCTUATIONEFFECT OF FRIST TIME CONSOLIDATION OF SUBSIDIARIES CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 77,027 (186,109) NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS གྷநˠĈౘஏҐ ົࢍგĈ഼ሗ ڟĈૺұܜְ Ꮙྤ߿જ̝ஐனܛ߹Ğğˢ Ըྤ߿જ̝ஐனܛ߹ ԸྤĞᆧΐğഴ͌דаை̈́ๅܢ ഠĞӣ๊ќഠğᆧΐٸδҖ̈́ᅙҖТຽഴ͌Ğᆧΐğ ෭ன̈́ٸх Ꮙྤயܛ౯ֻפ Ꮙྤயᆊഠܛ̶౯ֻ Ꮙྤயܛഇ͟זѣҌפ ഇᔘώזᏉྤயܛഇ͟זѣҌ ᒉຽྤய̦̈́ีྤயᆊഠܧᏉྤயഴ͌ ᔉཉؠྤய̈́ԛྤய ̶ؠྤயăܛԸྤ ד߿ඛξಞ̝ๅפ ᏉྤயᆊഠܛᏉྤய ̶ͽјώᏊณ̝ܛͽјώᏊณ̝פ ώഇ͚;ٙඁ ˿гᆧࣃඁඁதአࢫயϠ̝ྤώ̳᎕ ώഇ͚;Ӏि Ⴞ࿌౻ࣶ̈́̍ࡓӀ ൴Җ˙পҾ۵ٸ۵Ӏ ൴ܛனٸഇќа ൴זδҖ̈́ᅙҖТຽхഠĞഴ͌ğᆧΐ хഠ̈́๗ഠᆧΐ δҖ̈́ТຽᏉྤഴ͌ ϥপҾ۵ ๅᆧΐד෴аๅĞைğܢ Ըྤ߿જ̝னܛ߹ณ ̙ᇆᜩனܛ߹ณ̝Ըྤ̈́Ꮙྤ߿જ னܛ߹ณྤੈ̝ྃ·೬ᜨ Ꮙྤ߿જ̝னܛ߹ณ ഇϐனܛ̈́ࡗ༊னܛዶᗝ ዶᗝܛࡗ༊ன̈́ܛனܐˢᇆᜩᇴ ഇ׀๗தᇆᜩᇴ ̳̄ΦࢵѨ ώഇனܛ̈́ࡗ༊னܛĞഴ͌ğᆧΐᇴ ᄃࢲᐍგநְีژᑭ̶̝ڍགྷᒉඕ̈́ڶېੑચ Financial Conditions and Operating Results ڶېăੑચ˘ A. Financial Status ಏҜĈາέ။˼̮ UnitĈNT$1,000 मள āѐޘ 95.12.31 94.12.31 Fluctuation ีϫ FY 2006.12.31 2005.12.31 ܛᗝ Items Ʀ Amount ྤயᓁᗝ 1,355,605,332 1,356,395,034 (789,702) -0.06 Total Assets ๅᓁᗝ 1,273,420,783 1,279,990,716 (6,569,933) -0.51 Total Liabilities ᝋৈᓁᗝڌ۵ 82,184,549 76,404,318 5,780,231 7.57 Total ShareholdersŅ Equity ොĈ1.ྤயᓁᗝ̈́ๅᓁᗝ֭ࢦ̝̂តજĄ ࠳ዶᆧΐٙĄޘഇᔘώ̈́ώĞ95ğѐזᆧΐĂࢋܼЯϥপҾ۵ޘᝋৈᓁᗝྵ˯Ğ94ğѐڌ2.۵ Note: 1. There is no material change in the total amounts of assets and liabilities. 2. The total shareholdersŅ equity was higher than the year before (2005) mainly because investment on Type A preferred stock was recouped uponmaturity and ̚ ර because earning for the current year (2006) was higher. ϔ ڍăགྷᒉඕ˟ ઼ ˝ ˩ B. Analysis of Operating Results ಏҜĈາέ။˼̮ UnitĈNT$1,000 ̣ (ᗝ តજּͧ(Ʀܛѐ 95.1.1~12.31 94.1.1~12.31 ᆧഴ ą 2006.1.1~12.31 2005.1.1~12.31 Increase (Decrease) Change in % ѐ ಡ Ӏिஐќৈ 18,219,176 17,065,166 1,154,010 6.76 Net interest income Ӏिͽγஐќৈ 160 11,476,326 9,577,139 1,899,187 19.83 Net non-interest income ஐќৈ 29,695,502 26,642,305 3,053,197 11.46 Net income ഠӑϡٸ 4,525,824 62,716,748 (58,190,924) -92.78 Bad debt Expense ᒉຽϡ 10,845,182 11,868,121 (1,022,939) -8.62 Operating expense ᚶᜈᒉຽొܝඁ݈ຫৈ 14,324,496 (47,942,564) 62,267,060 -129.88 Earning Before Tax from Continued Operations ᚶᜈᒉຽొܝඁޢຫৈ 11,084,417 (36,515,754) 47,600,171 -130.36 Gain(Loss) from Continued Operations ົࢍࣧតજ̝᎕ᇆᜩᇴĞඁޢஐᗝğ 292,638 - 292,638 - Cumulative Effect of Changes in Accounting Principles ώഇຫৈ 11,377,055 (36,515,754) 47,892,809 -131.16 Current pro¿t (loss) Ĉځᄲژᆧഴּͧតજ̶ ஐќৈᆧΐĂࢋஐӀिќৈ̈́ќаӑᆧΐٙĄ(˘) ᆧΐٙĄޘӑ೩хྵϔ઼95ѐٯதĂ೩ᖬᄏத౯ͧٸࠎࢫҲ࿈ޘഠӑϡഴ͌ĂࢋܼЯϔ઼94ѐٸ(˟) ᆧΐٙĄޘӑ೩хྵϔ઼95ѐٯதĂ೩ᖬᄏத౯ͧٸࠎࢫҲ࿈ޘຫৈ̈́ώഇຫৈᆧΐĂࢋܼЯϔ઼94ѐޢඁܝඁ݈ຫৈăᚶᜈᒉຽొܝᚶᜈᒉຽొ(ˬ) α)ົࢍࣧតજ̝᎕ᇆᜩᇴĂܼЯዋϡ34ཱི̳ಡٙĄ) Change Analysis: 1. Net income increased mainly because net interest income and bad debt recovery had both increased. 2. Bad debt expense decreased mainly because as compared with 2006, bad debt provisions were higher in 2005 for the purpose of reducing the NPL ratio and increasing the coverage ratio. 3. Growth in Earning before Tax from Continued Operations, Gain from Continued Operations and Current Pro¿t was mainly due to the fact that as compared with 2006, bad debt provisions were higher in 2005 for the purpose of reducing the NPL ratio and increasing the coverage ratio. 4. The Cumulative Effect of Changes in Accounting Principles was mainly derived from required compliance with Statement of Financial Accounting Standards 34. ѐѐ 97 2008 ѐѐ 96 2007 ANNUAL REPORT 2006 161 ѐѐ 95 2006 cit ¿ ѐѐ 94 NT$1,000 NT$1,000 2005 % Ĉ Ĉ ּͧ ּּּּͧͧͧͧ ow de ) ))) ϡଐԛྻܛ၁ᅫٕؠྤ À நੑࢍ൪ ഴ ഴഴ Unit Unit (N.A.) (N.A.) ( ( ̙ዋϡ ̙ዋϡ 54.83% ᆧ ѐѐ Change in % Actual and expected capital utilization Wealth Management 93 2004 ow in2006 is higher thanthat of 2001. À expected cash ᗝ̝ྃାନ߉֖̙ܛࢍன ѐѐ Remediationmeasures against Ըྤࢍ൪ Investment 92 2003 ing cash ಏҜĈາέ။˼̮ ಏҜĈາέ။˼̮ )))) (3) ƦƦ –(3) (3)(3)(3) (3) (3)(3) 12.31 ֖̙֖̙֖̙ surplus (( ůů ů ůů ~12.31 ᗝ (N.A.) (N.A.) (2) (2) (2)(2) penditure in the Last Few Years ̙ዋϡ ̙ዋϡ .1.1~12.31 Ů ŮŮ required 4.1.1~12.31 830,000 13,448 187,419 566,685 62,448 - - 94.1.1~12.31 ᓁܛٙᅮྤ Total capital 2005.1.1~12.31 (1) (1) cit) (1) + (2) – (3) ᆧΐٙĄޘѐ ¿ ᇴᗝ ѨѨѨ ѨѨѨ 90 ࢍனܛ౺ዶ (de 60,032 1,807 10 7,912 50,303 - - 36,047 1,545 260 - - - - Expected cash surplus 2424 242424 106,320 157 - 1,252 104,911 - - ب ببب to be made between liquid and non-liquid items. ow 212121 À Ą (3)(3) % 601.01 12.31 84% ~12.31 .84% (N.A.) (N.A.) 55.84% ̙ዋϡ ̙ዋϡ ߹ณ .1.1~12.31 655.84% 5.1.1~12.31 ࢍБѐனܛ 95.1.1~12.31 2006.1.1~12.31 sessionof the for the whole year (3) completiondates Expected cash out th རјֹϡརјֹϡ ၁ᅫٕഇԆ̍͟ഇ Actual and expected 95.6 95.08 ೩९ྋੵ̍ЪࡗĂགྷ೩९ྋੵ̍ЪࡗĂགྷ 2006.06 2006.08 ѐޘᒉຽ߿જஐனܛ߹ˢྵϔ઼ FY 95 Board of Managing Directors st ચְົᛉ९఼࿅ 2006.6.30 Bill of canceling thewas construction approved contract by the 24૱ 94.08 2005.08 (95.03.13 2006.03.13Open) 95.6.30 (2)(2) ѐāޘ ஐனܛ߹ณ Bank's 21 ࢍБѐֽҋᒉຽ߿જ ow for the whole year (2) À ֽܛྤ̝ ၁ᅫٕഇ ows to dividends and expenditures has increased mainly because net operat Expected net operating cash ow analysis À funding sources À Actual and expected ҋѣྤܛ Self-owned capital ҋѣྤܛ Self-owned capital )))) )))) ොොො (1)(1) (( ොොො (( ҋѣྤܛ Self-owned capital ҋѣྤܛ Self-owned capital ow ratio (Note) ows to dividends and expenditures (%) À À Plans 44,126,907 12,885,192 18,226,075 38,786,024 - - The ratio of cash ώഇனܛ߹ณ̯༊ͧதᆧΐĂࢋܼϔ઼ ࢍထีϫ ژ߹ณ̶ّܛϏֽ˘ѐன ژ߹જ̶ّޘѐ˟ܕ ֽܛࢦ̂ྤώ͚̝ྻϡଐԛ̈́ྤ ) ) ) ഇܐனܛዶᗝ Cash balance at the ˟ ˘ ˘ start of the period (1) ีāϫ Items னܛ߹ณͧத Cash னܛГԸྤͧத Cash reinvestment ratio (Note) னܛ߹ณ̯༊ͧத Cash αă ܕѐޘࢦ̂ྤώ͚၆ੑચຽચ̝ᇆᜩ D. The Material Effect on Financial Structure( from Substantial Capital Ex a. Major capital expenditures and funding sources ( b. Next-year cash ߹જีϫܧොĈֶੑચົࢍ̳ಡௐ˟˩ˣཱིఢؠĂืડ̶߹જٕ ( a. Liquidity analysis for the past two years ˬă னܛ߹ณ C. Cash Flow Note: According to Financial Accounting Rule No. 28, no distinction needs ྤੈ̂ሁ າޙ̍ Construction plan for new IT Building Construction plan for Hsinying Branch̍ ޙາ۽າᒉ̶ҖҖ Construction plan for Chaochou Branch̍ ޙາ۽ሗ߷̶ҖҖ Construction planfor Tounan Branch̍ ޙາ۽͜ݑ̶ҖҖ (˟)ࢍΞਕயϠड़ৈĈ b. Expected bene¿ts: 1. ྤੈ̂ሁາޙ̍ 1. Construction of the new IT Building ώҖఢထఢॾ۞ྤੈ͕̚Ăֽቁܲྤੈྻү۞ึӀᄃ We have planned for a high-caliber IT center to be built щБĂາྤੈ̂ሁϒёརјޢĂੵ˞Ξར၁ྤੈրளг౯ in order to ensure the smooth and secure operation of our information systems. This new IT Building will not only γĂՀࢦࢋ۞ߏଳϡᇾ۞֨ͫă֨ͪͽ̈́έ៉ࢵט೯፟ provide remote backup for information systems, but it is also ౹ଳϡ͟ώௐ˘ݡൕOILSዩඕၹᄃ˧౯೯ඈщБ᜕֨ନ equipped with advanced fire- and water-resistant facilities ચĄڇăᘦؠ̈́ԣి۞ܮՀ͗͞މώҖਕ೩ֻޢ߉Ăֹ̫ and backup power supplies for achieving maximum security. ̍ޙາ۽Җ .2 The first building in Taiwan to adopt Japan's'ss premier anti- ચݡኳ֭ᘦᒉຽፂᕇăᕖ̂ڇΞ೩̿ώҖЋຽԛ෪ă seismic technology: OILS, this new IT center will allow us to ১ͽᆧވ͚γĂ֭ΞкዶᏱ̳ܛચშĂੵΞ༼࠷১ڇ provide customers with better services that are convenient, ΐ১ܛќˢĄ reliable and fast. 2. Construction of the branches The branches' new office buildings will help enhance ̚ the Bank's corporate image and service quality, as well as ර ϔ support long-term business operation and expanded service ઼ ˝ coverage. The Bank can save on of¿ce rental expenditure, ˩ and when extra rooms are leased out, there will be ̣ ѐ additional rental income. ą ѐ ಡ E. The ReinvestmentPolicy for LastFiscal Year, the Major Reasons for its Profits or Losses, and Improvementand InvestmentPlan for NextYear 162 a.The reinvestment policy for last ¿scal year and the major reasons for its pro¿ts or losses: 1. Our bank recorded a gain of NT$ 2,110,324 in 2006 on dispositionof our investmentinthe shares of TaiwanDebt Instruments Depository & Clearing Co., Ltd. Background: Taiwan Debt Instruments Depository & Clearing Co., Ltd., whose shares our bank had invested in, was merged in accordance with government policy with TaiwanSecurities CentralDepository Co., Ltd. onMarch 27, 2006 andbecame TaiwanDepository & Clearing Corporation. Thishis matter was reported to the 16th Managing Directors Meeting of the 21st Board of Directors on April 28, 2006. After the merger, our bank owned a total of 229,760 shares of the stock of TaiwanDepository & Clearing Corporation and recognized a gain of NT$ 2,110,324 ondispositionofdisposition of equity equityy investment. investment. 2. Our bank disposed of all our shareholdings– 325,634 shares - of the stock of Core Paci¿c International (H.K.) in 2006 for a loss of NT$ 108,710,078. Background: According to Article 74.3.2 of the Banking Law: ņExcept for supporting government policies and with the approval of the competent authority, commercial banks are only allowed to invest in 1 (one) financial ANNUAL REPORT 2006 163 th on his This InviewInviewInview of of of 20,925,336 c Yamaichi. ¿ – 20,925,336 Extraordinary Guidelines on ŇŇ s Guidelines on th 's Guidelines on Board of Directors st Managing Directors th was adopted by the 40 Managing Directors Meeting of the decisionwas adopted by the 40 th Board of Directors onDecember 27, Board of Directors onOctober 6, 2005. st th cation. ¿ Board of Directors onMarch 9, 2007. st Aggressive adjustment of reinvestment portfolio, We will actively search for good investment targets with At the headquarters, our bank has 3 functional units his decisionwas adopted by the 25 onOctober 20, 2006. relating to our investmentTelecom. in Asia Pacific Broadband Background: For the purpose ofpicture of fairly our presenting long-term the equitythe investment opinion and given based by on Deloitterecognize & in Touche, full we in decided 2006from to our our investment equity losses investment arising inTelecom, in Asia accordance Pacific with Broadband our bank's Guidelines on Meeting of the 20 2006 and by the 59 business of the same industrial sector. 21 Managing Directors Meeting of the 21 Meeting of the 21 shares - of the stock offor a TangEngIronWorks Co. gainof in2006 NT$ 400,056,110. Background: In order tosuitable realize time, financial this gains decisionwas at adopted a by the 40 Determination of Fair Value of Financial Products. This decisionwas adopted by the 50 This decisionwas adopted by the 25 our existing equity investment inCorporation, Masterlink where Securities we alsocompliance served with as the a above-referenced supervisor, legaldictated that provision we sell the shares of Core Paci 3. Our bank disposed of all our shareholdings – 20,925,336 4. Our bank recognized a loss of NT$ 270,000,000 in 2006 and searching new investmentthe opportunities consideration under of security, profitability,diversi growth, and solid growth potentials and annual dividend payouts. dedicated to risk management, led byEVP, the including Risk Management the Risk ManagementManagement Division, Division, the and Credit the LoanDivision. Asset Management We haveCommittee, also chaired set by up our a President Risk who Management convenes b.Improvement plan c.The investment plan for next year F. Analysis & Evaluation of Risk Management a.Risk Management Network and Policy 1. Risk Management Organization Structure 21 ௐ ̮Ą ۵Ă֭ ̮Ą ѣࢨ̳Φ 95.12.27 229,760 ѣࢨ̳ΦķБᇴ ) 108,710,078 Ѩ૱ົՙᛉ఼࿅ Ѩᓜॡְົՙᛉ 400,056,110 ̮Ą 59 25 ࢶപ ( ௐب ̮Ą ௐب ߆ඉᄃĶέعࠎ੨Ъ߆͟ 21 20 27 ௐ ௐ 2,110,324 ͡ ̮Ą 3 ώҖޢ׀Ѩ૱ົ೩९ಡӘĄЪ Φķ۵ᝋ֭ፉЇྍ̳ΦႾ၅ˠᖚ̳ ѐ ) 16 2,110,324 ۵ 95 Ѩ૱ົՙᛉ఼࿅Ą ( ࣎య̝ࢲᐍგநొܝĂϤయࢲᐍგ ௐب 96.03.09 94.10.06 3 40 21 ۵Ă̶ຫεВࢍາέ။ ۵Ă̶ӀৈВࢍາέ။ 270,000,000 ௐب 21 ̶Ķ࣫ၷᜠ̍ᇄ۵Њѣࢨ̳ΦķБᇴ۵ޘѐ ะܲ̚გඕზ۵Њד̶Ķέ៉ைޘѐ ̶Ķִර̋˘઼ᅫޘѐ ᄮЕĶֲ͉შᆵᐛ۵Њѣࢨ̳ΦķԸྤຫޘѐ ώҖௐ ௐ 95 95 95 Ѩ૱ົ̈́ 325,634 95 ᗝᄮЕԸྤຫεĂ̶֭ҾགྷώҖ֖ޘѐ 50 ֶ֭ڶېഇ۵ᝋԸྤ̝ྤயܜࢋࣧЯĈࠎዋ༊ܑ྿ ࢋࣧЯĈࠎೠ೪ॡ፟ͽ၁னᒔӀĂ֭གྷώҖ ௐ˛˩α୧ௐˬีௐ˟ഠఢؠĈڱࢋࣧЯĈֶᅙҖ ะܲ̚გඕზדࢋࣧЯĈώҖࣧԸྤ̝Ķέ៉ை ЯăԼචࢍ൪̈́Ϗֽ˘ѐԸྤࢍ൪ ሕ˧֭ਕՏѐؠ੨൴۵ि̝ᇾܜ᎕ໂአፋᖼԸྤЪĂ֭дࣘᜪщБّăќৈّă߹જ ᎕ໂವԱѣᘦؠј 20,925,336 ᅙҖ̝ࢲᐍგநᖐߛၹ̈́߆ඉ Ϗֽ˘ѐԸྤࢍ൪Ĉ 95 ᓁҖనϲٺώҖ Լචࢍ൪Ĉ ᖼԸྤ߆ඉăᒔӀٕᓪຫ̝ࢋࣧЯĈޘѐܕ ) ) ) ) εĂࢍາέ။ ࢍ ٺώҖ ۵ࢍ ٺώҖ ٺώҖ ķ۵Ă̶Ӏৈࢍາέ။ Ą ௐب ٺ Ꮙથݡ̳πᆊ ࣃෞᆊࢋᕇķĶֲ͉შᆵᐛ۵Њѣࢨ̳Φķ۵ᝋԸྤܛࢍरְચٙຍ֍ĂᑢώҖĶົܫ๔ຽி ఼࿅Ą 95.10.20 דώ Җ̏ѣĶ̮ಱᙋٺ߆ඉĂགྷგ፟ᙯ८ࣞ۰γĂͽ˘छࠎࢨķĂᝥعᏉ࠹ᙯְຽĂᛳТ˘ຽҾ۰Ăੵ੨Ъ ߆ܛĶથຽᅙҖԸྤ ҜĂֶ݈ఢؠื̶Ķִර̋˘઼ᅫĞࢶപğѣࢨ̳Φ ķ۵Ă֭གྷώҖ 95.04.28 ٺхᜈ̳ΦՀ ЩࠎĶέ៉ะܲ̚გඕზٙ۵Њѣࢨ̳ΦķĂώ९̏ޢ׀ĂЪ׀ะܲ̚გ۵Њѣࢨ̳ΦķЪדᙋ៉ ٺ۵Њѣࢨ̳ΦķĂ ѣĶέ៉ะܲ̚გඕზٙ۵Њѣࢨ̳Φķ ᄮЕ̶Ӏৈࢍາέ။ ٺώҖ ࢲᐍგநᖐߛၹ ˘ ˟ ˬ ˘ 4. 3. .ෞҤ ( 1ژăࢲᐍგந̶̱ გந̈́ๅᝋܫந̝ઘᓁགྷநٙેೠĂࢍѣࢲᐍგநă ) ) ( 1. ᖼԸྤ߆ඉăᒔӀٕᓪຫ̝ࢋࣧޘѐܕặ 2. ّඈࣧ˭Ă൴ଧາԸྤ፟ົ̈́ᇾ۞Ą ۞Ą̶ّ̈́ܜăјّ გநĄώҖ֭నཉࢲᐍგந؎ࣶົĂՏ͡ؠഇϤᓁགྷநፉ the monthly meetings. The committee is responsible ЇЇ؎ࣶΡฟົᛉĂࢋᖚೠࠎෞҤᄃႾ༛ώҖࢲᐍٚ for evaluating and monitoring our bank's risk-taking ĂՙؠࢲᐍЯᑕඉர̈́ࢲᐍგந capacity and the actual risk exposure, determining our riskڶࢲᐍனצፉਕ˧̈́̏ٚ ԔᏲೈଐԛĂ֭Տ؞Шְົ೩ಡࢲᐍგநಡӘ३ĂͽፋЪ response strategies and compliance with risk management procedures, and submitting risk management reports to the ώҖࢲᐍچአྻүĂ೩םώҖࢲᐍგநְี̝ᆶᛉăႾ༛ᄃ Board of Directors ona quarterly basis inorder to enhance გநݡኳĄ our risk management quality by consolidating relevant review, monitoring and coordination actions. ᓁགྷந President ࢲᐍგந؎ࣶົ ྤயๅგந؎ࣶົ Risk Management Asset & Liability Committee Management Committee ̚ ර ϔ ࢲᐍგநઘᓁགྷந ઼ Risk Management ˝ EVP ˩ ̣ ѐ ࢲᐍგந ܫგந ๅᝋგந ੑચგந ą Risk Management Credit Management Loan Assets Management Financial Management ѐ Division Division Division Division ಡ Ћထ Ћܛგந ࣎ܛგந ܛᏉТຽგந Policy ྤயๅგந & ᐺ ந Asset טᖬᆶ გ ܫCorporate Consumer Financial ξಞࢲᐍ үຽࢲᐍ ᆶ८ ᇈ 164 Operational Risk Credit Support & Procedures Asset Portfolio Portfolio Institution Market Risk Risk Assessment Investigation LoanReview Control Workout & Special Recovery Liability Management Management Management Assets Management 2. ࢲᐍგந߆ඉ 2.Risk management policies (1)1)ܫϡࢲᐍ (1) Credit Risk A. To highlight credit risk management as anindependent გநܫᓁҖనϲٺϡࢲᐍგந̝ϲّĂܫA.ࠎૻ̼ function, we set up the CreditManagement DivisionDivisionat at ĂડᒉྻనϲЋĞ࣎ğࢲᐍგநĂయܫ९І̝ the headquarter and the Corporate (Consumer) Risk ഠᆶᛉ؎ࣶົĂᓁགྷநᝋࢨͽ˯̝९ٸᆶ८ĄᓁҖјϲ Management Section at the CRC to be responsible ᆶ for approving loan applications. Thehe LoanLoanReview Reviewܫഠᆶᛉ؎ࣶົᆶߤćડᒉྻјϲٸІĂӮืགྷ ᛉ؎ࣶົĂͽЪᛉ͞ёᆶᛉᛳડᒉྻᝋࢨ̝९ІĄ Committeeat the headquarter has to review all cases that ຽચ̝ጱĂ֭၆ fall within the purview of the Presidential mandate; andܫ߆ඉઇࠎᏱநܫB.ࢎؠ the Credit Review Committee at the CRC will approve ܫТ˘ᙯܼˠăТ˘ЋຽะဥăҖຽҾඈĂ̶Ҿࢎؠ by consensus those applications that are under the ࢲᐍࢨᗝĄ jurisdictionof the CRC. C.ޙϲ̰ొܫϡෞඈրĂ੫၆Ћຽܫމ̝͗ܫϡࢲᐍ B. We have established credit policies to serve as the ซҖෞඈᄃ̶ᙷĂүࠎܫᆶ८̈́ܫϡࢲᐍგந̝ણ҂ guiding principles for our loan business and have Ą imposed credit risk limits onsame affiliatedaffiliated person,person, .၆͘ࢲᐍ same enterprise group or same industryٽᏉϹܛ(2) Ăֶะဥᓁࢨᗝ̈́ᓁᇷ C. We have constructed an internal credit rating system toهؠ̝ໄםώҖ͔ซາ͐Ⴌྤώ undertake rating and classi cationof corporate clientsin ¿ ᏉϹܛཉࢨᗝߛၹĂࢎؠĶޙ˭҃˯Ăҋهᐍࣃ̝გநໄ terms of their credit risk, and the ratings will be referenced ᏉϹܛ၆͘ࢲᐍგநఢቑķĂͽᏰᙊăᏊณ̈́ႾଠώҖٽ during loan reviews and credit risk management Ӕಡგநᆸ৺ĂͽЪ઼ڍϡࢲᐍЪĂ֭ඕܫ၆͘ٽ operations. γႾந፟ᙯ̝ࢋՐĂഇਕѣड़ྻϡྤώֹ֭ώҖќৈ (2) Counterparty Risk̰ ̼̂Ą Our bank has adopted the concepts advocated by the ANNUAL REPORT 2006 165 ts. ¿ ble procedures and pertaining to the external suitable procedures and information pertaining to the external isks Risks control our exposure to country risks. isks principles in credit risk management Risks cation, measurement and monitoring of credit risk, ¿ ur bank uses information pertaining to the external credit ratings of eachfor region and the country identification as ofbeen the country set basis risks. up for A measuring country structurecountry risks has limits and determining against oureffectively risk control our appetite exposure in to country order risks. to Our bank has establishedManagement the Rules Operational in Risk accordanceand with government BASEL regulations. II construction This of is a to sound facilitatestructure, operational the strengthen risk risk management awarenessemployees, among and all bank develop suitablestrategies procedures in and order to assistconducting operational personnel risk at management every work. level in We have established market risk managementline polices with in our overall businessadjustments strategies will and be necessary madeinternal in and response external to environments changes astypes in well of as risks, different sooperational as strategies to and ensure goals. consistencerisk with management In our procedures addition, are market clearlydocumented, and covering precisely all marketour risks businesses relevant and to detailingmanagement our goals in in order market tocompliance risk ensure by understanding all employees. and BASEL II, and havemanaging set total up a limits Top-Down and structurehas risk for established exposure. the Guidelines Theof for Bank Counterparty the Risk. Management The Guidelinesassess will and help monitor identify, thethe counterparty entire risk bank portfolio and of management present in reports order to the tolocal high-level meet and the overseas requirements regulators of andutilizationof capital to andmaximizationof facilitate pro effective Our bank uses information pertaining to the external Kind of Risks and Quantify Exposure Information OperationalOperational Risks Risks CountryCountry Risks Risks To develop management systems andfor rules the required implementation ofvarious the system BASEL tools II. and reportsidenti in To build order to strengthen enhance the quality ofbank's risk sustainable management, operation, ensure and the complypracticing with principles in the credit best risk management ) Country Risks 5) Country Risks (4) Operational Risks (5) Country Risks (3)MarketRisk b. The Methods for Measuring and Controlling Each 1.Corporate Credit Risk (1)Strategies (2)Process A. To establish the Risk Management Committee for ᄃგ፟ᙯ̝ఢؠࢎؠĶүຽࢲᐍგநఢቑķ BASEL II አྻүĄםᄃ јϲࢲᐍგந؎ࣶົĂፋЪώҖࢲᐍგநְี̝ᆶᛉăႾ༛ ᇷᐍณ̼ྤੈ̈́ڱᏊณᄃଠგЧࢲᐍ̝͞ ) A. ඉர ߹ ξಞࢲᐍξಞࢲᐍ үຽࢲᐍүຽࢲᐍ ઼छࢲᐍ઼छࢲᐍ ϡࢲᐍგநࣧĄܫώҖࢲᐍგநݡኳĂቁܲᅙҖᘦઉགྷᒉĂͽ Ъָچϡࢲᐍ̝ᏰᙊăᏊณ̈́Ⴞ ଠგநΑਕĂ೩ܫϲĂૻ̼ޙؠఢٙᅮ̝გநր̈́ఢĂᖣϤ Чีր̍̈́ಡܑ̝ם൴णેҖາ͐Ⴌྤώ ξಞ ࢲᐍგநϫᇾĂ֭ቁܲώҖࣶ̍ᒢྋ̈́ᏲೈĄ ώҖֶځቁ۞ξಞࢲᐍ გநԔĂ̰टஉᄏᄃώҖຽચ࠹ᙯ̝ξಞࢲᐍĂͽᄲځؠט੨ЪώҖፋវགྷᒉඉரࢎؠξಞࢲᐍგந߆ඉĂ֭Яᑕ̰γొ གྷᒉᒖဩ̈́ࢬᓜࢲᐍ̝ត̼үዋ༊አፋĂͽቁܲᄃώҖགྷᒉඉ ர̈́ϫᇾ̝˘ّĄТॡͽ३ࢬ͛І Ăࢎؠ઼छࢲᐍࢨᗝߛၹүࠎ ઼छࢲᐍᏊณ̈́८੨ࢨᗝ̝ૄĂͽѣड़ଠგ઼छࢲᐍĄޘϡෞඈྤੈĂүࠎᏰᙊ઼छࢲ ᐍֶ̝ፂ֭ፋЪώҖࢲᐍઐрܫӄБҖЧ৺ˠࣶ ેҖүຽࢲᐍგநĄ ώҖܼͽЧડા઼ٕछ̝γొםϲઉБ̝үຽࢲᐍგநᖐߛၹăૻ̼БវТ̥ࢲᐍຍ ᙊ֭൴णዋ༊̝үຽࢲᐍგநԔᄃඉரĂޙĂͽ Ћܛܫϡࢲᐍ ˟ 3) 4) 5) 1. (1) (2) ( (3) (4) (5) B.Ԇјᇈܫᆶߤҋજ̼Чีր̝ޙཉĂΒӣᇈܫგந consolidating review, monitoring and coordination work .ϡෞඈր̈́Ћ pertaining to risk managementܫրăፉܲݡგநրăѣੑᘪЋຽ გநրĂͽԆፋฉؼ̝ҋજ̼ྤੈგநրૻ B. To complete the deployment ofvarious automatedܫܛ ̼ώҖܫ͗ܫϡࢲᐍ̝გந߹Ą systems forcredit investigation and approval, including credit investigation management system, collaterals ĂᖣϤĶፉܲݡᆊࣃෞޘטϲ̙જயፉܲݡؠഇෞᆊޙ.C management system, credit ratings system for enterprises ҤķᄃĶᇷᐍᗝᆧഴត̼ķĂЪநͅߍፉܲᆊࣃĂѣड़ with certi¿ed ¿nancial statements and corporate banking ĄڶېᏰᙊࢲᐍٚፉ credit management system, in order to strengthen our D.ᚶ94ѐԆјѣੑᘪЋຽ̝ܫϡෞඈրĂώѐޘᜈซ bank's process for managing the borrower's credit risk ᆶ८ăࢎܫཉĂ೩ֻઇࠎޙϡෞඈ̝ܫҖੑᘪЋຽ through such a comprehensive information management ϡࢲᐍᏰᙊܫچϡࢲᐍგநఢ̝̍Ă೩ܫᆊ̈́Чี system with a high degree of automation. ᄃგநड़ਕĄ C. To create a system for assessing the value of real estate யෞҤүຽఢĂྻϡ collaterals on a regular basis, where the fair value of theྤܫϲޙᘦઉགྷᒉࣧĂٺૄ.E collateral is determined by considering both Collateral ٯயݡኳ֭Ꮚณ౯ྤܫĂᏰᙊڱณ̼̈́ኳ̼̝ෞҤ͞ ӑ೩х̝ዋّ֖Ą Valuation and Risk Exposure Variation in order to identify ̚ F. the actual risk pro le. ර ᜈᏱநࢲᐍგநᓾ௫ăቚĂౄБҖࢲᐍგந̼͛ ¿ ϔ Ą D. With the completion of the credit ratings system for ઼ enterprises with certified financial statements in 2005, ˝ 2.࣎ܛܫϡࢲᐍ ˩ (1)ඉர the goal of this year was to do the same for enterprises ̣ without certi¿ed ¿nancial statements so as to provide a ѐ ࿅ࢲᐍᏰᙊăᏊณăႾଠăಡӘඈ߹ĂޙϲЪາ͐ useful tool for supportingcredit investigation, valuation Ă֭၁߉ϲ۞ࢲგߛၹĂטؠ̝ࢲᐍგந፟םą Ⴌྤώ ѐ and various risk management tasks, for the purpose of ϡࢲᐍგநࣧĄܫಡ ͽЪָ enhancing identi¿cation andmanagement of credit risks. E. To establish operation rules for evaluating loan assets 166 following the principles of sustainable business operation, where both quantitative and qualitative methods are employed to assess the quality of loan assets and to measure the adequacy of bad debt provisions. F. To create a corporateculture of risk management by consistently organizing lectures and trainings focusing on risk management. 2.Consumer Credit Risk (1) Strategies To build a BASEL II-compliant risk management mechanismby incorporating risk identification, measurement, monitoring and reporting into the process, and to implement an independent risk management structure so as to comply with the best practicing principles of riskmanagement. . (2) Process A. To incorporate the scorecard system into the loan application process, monitor the performance of businesses utilizing scorecard, and build a mechanism for approving the upgrading of special-case consumer applications. B. To compile the Consumer Banking Risk Management Manual, the Standard Operation Procedure for Consumer Banking Debt Negotiation, and other related credit management rules; to utilize the credit risk database and the automated credit risk system for the generation of ANNUAL REPORT2006 167 ce ¿ ce units ¿ ޢέಏҜ Back Of accounting activities Transaction approval, settlement documents, ăϹ౷͛ІăົࢍચٽᄮΞϹ Data maintenance and handling of آέჯ᜕ྤफ़̈́நზϹ౷ඈְޢ clearing and settlement at Back Of cation and rating of credit risk. ¿ the net worth of theof company its total is risk used limit, forfor or the the the calculation calculation consolidated of net its worth businessthe is group's used ceiling total risk of limit the as totalIn risk addition, exposure the to counterparty's this creditrisk counterparty. risk, and settlement pre-settlement risk areits included various in risk limits the and calculation quotas. of businesses in accordance with theas type well of as risk the involved operations. business needs of the front-desk counterparty risk by monitoringcounterparty's and risk. reporting each various risk information needed forrisk management. strengthening credit the organization of lecturesmanagement and and trainings also on throughcommunications. risk effective ongoing external ratings agencies asclassi the basis for our internal B. Based on the category and rating of each counterparty, C. Within the total limit, quotas are assigned to various D. To effectively manage our bank's exposure to C. To enhance the quality of loan assets through 3.Counterparty Risk (1) Strategies and Process A. To use the credit ratings of counterparties provided by Ꮾˢր֭ޘᗝ / management monitoring ᗝޘგநႾଠᇷᐍ ̚έྻϡࢲᐍგநሀ modules at middle Desk Limit ၆͘ࢨᗝ Utilization of risk management ซҖ̝̈́̚͟͟ࢲᐍႾଠ exposure data into the system Middle Desk-risk Management Division Analysis and approval of counterparties Entry of limit / ٽă८ؠϹژέࢲᐍგந̶̚ Intra-day and end – of – day risk ٽϹדๅ̈́ फ़ྤٽέᏮˢϹ݈ ᓝᏱࢲᐍგநᓾ௫ᄃቚĂᜈѣड़г఼Ăͽ೩̿ώ ၆͘ࢲᐍ̝ႾଠᄃಡӘԔͽѣड़გநώٽᏉϹܛᓁࢨᗝֶ̰Чีࢨᗝࠎፂ֭ણ੩݈έຽચᅮՐĂಶЧ ᖣϤٺ Ą ט९І̿৺८ࣞ፟ܛϲপঅ࣎ޙΙຽચ̝ड़ਕរᙋă̶ யݡኳĄྤܫࢲᐍგநĄ Җ̝ܫ ҋજ̼გநրĂயϠЧᙷࢲᐍྤੈĂͽΐૻώҖܫ ࢲᐍྤफ़ऱ̈́ܫგநఢቑăྻϡܫຽԔ̈́࠹ᙯ ϡࢲᐍ̶ᙷ̈́ෞඈֶ̝ፂĄܫϡෞඈĂүࠎώҖ̰ొܫ ၆̝͘ࢲᐍĄٽᏉϹܛĄ ҖޘĄ ีຽચ̶੨ᑢؠᗝޘࢲᐍăϹ౷݈ࢲᐍă̈́Ϲ౷ࢲᐍ ࢍზЧีࢲᐍࢨᗝ̈́ᗝܫ၆͘ٽᏉϹܛ၆͘ᓁᇷᐍࣃ˯ࢨĂ ГಶٽᏉϹܛ၆͘ᓁࢨᗝĂͽࠎٽᏉ Ϲܛஐࣃࢍზะဥ׀၆͘ᓁࢨᗝٕͽЪٽᏉϹܛࣃࢍზ Ϧኛ߹ăᖸֹϡෞܫϡෞ̶ΙրጱˢώҖܫ થᇾүםᏉๅચܛࢲᐍგந͘ΊăঐܛበᄦώҖ࣎ ၆̝͘ٽᏉϹܛෞඈᏴϡࣧĂଳҖγొෞඈ፟ၹ၆ֶ ၆̝͘ஐٽᏉϹܛ၆͘ᙷҾăඈҾડ̶ĂଳٽᏉϹܛ хࣄܛăྤٽέಏҜᄃᅙҖТຽม ̝γ๗Ϲ݈ A. B. C. A. B. C. D. ၆͘ࢲᐍგநր̝ᖐᄃߛၹٽᏉϹܛ ߹ ඉர̈́߹ Inter-bank foreign exchange ၆͘ࢲᐍٽᏉϹܛ Trading data entry at Front Desk carried out by Front Desk units lending, and bond transactions transactions, capital deposit and (2) (2)Financial counterparty risk management network structure (2) 3. (1) 4.ξಞࢲᐍ 4.Market Risk (1)ඉர̈́߹ (1)Strategies and Process ఢထăޙᛉᄃેҖξಞࢲᐍგநĂͽቁܲࢲᐍਕѣड़Ᏸᙊ To plan, recommend and implement market risk ,дĶࢲᐍटԡ management in order to ensure effective identificationטăᏊณăႾଠ̈́ಡӘĂֹώҖξಞࢲᐍଠ ķ̰Ăֹ֭ώҖਕჟቁᏊณ̈́ѣड़੨ཉྤώĂТॡЪ measurement, monitoring and reporting of relevantޘ Ⴌྤώࢍ೩̝ఢؠĄ risks, so that our bank's exposure to market risk can be͐ controlled within our risk tolerance, and so that we are able to carry out precise measurement and effective allocation of our capitals and comply with the capital charge rules of the BASEL II. (2)ξಞࢲᐍგநր̝ᖐᄃߛၹ (2)Structure of market risk management ξಞࢲᐍგந̍πέ ̚ ර Market risk management tools platform ϔ ᏰᙊξಞࢲᐍЯ̄(Ӏதăᆊॾă๗த) ొҜྤफ़πέ ઼ (ӣྤफ़ࣗᐼă ˝ γొྤफ़ Recognize the factors of market risks ચրඈ) ˩ Ğಡᆊրğ (interest rate, price and exchange rate) Exposure ̣ External information data platform ѐ ((Quotation(QuotationQuotation system) ą (including DW, ѐ quotation system, ξಞࢲᐍཝրăࢲᐍࣃᏊณ̈́Ⴞଠ ಡ and so on) Market risk ITsystem Risk value measure and supervision 168 ξಞࢲᐍಡӘ Market risk report (3)ࢲᐍಡӘᄃᏊณր̝ቑಛᄃপᕇ (3) The scope and characteristics of the risk reporting and ࢲᐍಡӘٙ೬ᜨࢲᐍĂਕֹลგೠଠፋ࣎ξಞࢲᐍଐ measurement system Ă֭үࠎዋॡአፋֶ̝ፂĄТॡӀϡࢲᐍგநրய Risks identified in the reports will allow high-levelڶ executives to be on top of the overall market risk Чࢲᐍณ̼ᇾ(тࢲᐍࣃăBetaࣃඈ)Ăͽ྿ࢲᐍଠგ situation and make timely adjustments. In addition, the ϫ۞Ą various quantitative indicators (such as Value at Risk and̝ ᔖᐍ߆ඉ̈́Ⴞീᔖᐍᜈѣड़ّ̝ඉரᄃ߹ Beta values) produced by the risk management system(4) .A.నؠࢲᐍგநϫᇾĈ will be conducive to achieving risk control purposes જٙౄјώ (4)The strategies and procedures for consistently effectiveگᏉથݡЯξಞᆊॾ̙ӀܛࢫҲώҖٙѣ ҖΞਕຫε̝ࢲᐍĄ hedging policies and hedging supervision :B.ࢎؠᔖᐍඉரĈ A.Establish risk management objectives ዚ۵ᆊ Reduce the risk of losses caused by unfavorable marketٯજࢲᐍăگዚ๗தٯજࢲᐍăگዚӀதٯΒ߁ price fluctuations in relation to financial products in the ϡೋ̼ࢲᐍĄܫዚٯજࢲᐍăگ Bank's possession. జఢᔖࢲᐍώኳ̝ᏰᄮĈ̈́ٽC.Ϲ B. Formulate hedging strategies: ĄٽഇϹܧٕٽώኳĈഇϹٽąϹ Including mitigation of interest rate fluctuation risk, ąజఢᔖࢲᐍώኳĈΒ߁Ӏதώኳă๗தώኳăܛᏉથ exchange rate Àuctuation risk, share price Àuctuation risk, ݡᆊॾώኳٕᇴώኳĄ and credit deterioration risk. ANNUAL REPORT2006 169 cation systems. ¿ ed by the BASEL II. For better ¿ ned approach in managing operational ¿ nancial product prices or indices. transactions. ¿ Totakeawellde risk, including the establishment ofwithin risk business control guidelines, methods as wellof as application the tools development byoperational functional risk units management dedicated in to employees order in to the assist identification, all monitoring evaluation, and control, reporting of operational risks. Our bank has an organizationaloperational structure risk for that managing is composedOn of the 3 first lines line, ofdaily all defense. business management units of are operationalguidelines responsible risk established for following by the the Headquarters.the Risk Secondly, Management Division willrelevant design management and structures promote andpolicies enforcement and will be supported bythe the Financial Secretariat Division, Management Division andFinally, the the Internal ITDivision. Auditing Divisionthird will line of serve defense as by the operational verifying risk the management effectiveness efforts. of our measurement system Our bank has begunevents to related compile to data operational on riskdifferent internal and types loss classify as them speci into controlling our exposure toalso operational developing risk, new we risk are systems control in and addition self assessment tointernal the auditing existing and self legal veri compliance, ows caused by the hedged risks; evaluation of the actual risks: • Nature of transactions: expected or unexpected • Nature of hedged risks: interest rate, exchange rate, term foreign currency government bondMoody's. ratings given by At the beginning ofassessment and is during made hedging of the operations, effectivenessin of mitigating hedging against tools fluctuations inÀ fair value or cash mitigation outcomes is carried out on an on-going basis. C. Identification of the nature of transactions and hedged D.Evaluation of the effectiveness of hedging tools: 5.Operational Risk (1) Strategies and Process (2)Structure of operational risk management (3) The scope and characteristics of the risk reporting and 6.Country Risk (1) Strategies and Process A. To establish country risk limits based on the latest long- ̝ Basel II Ąڍዚඕٯ߹ณតજĂ֭ᜈෞ Ҥᔖᐍ̝၁ᅫܛዚؠజ ఢᔖࢲᐍٙౄј̝̳πᆊࣃٕனٯѣड़ޘᔖᐍฟؕ̈́ഇม̚Ăഇᔖᐍਕٺ ෞҤᔖᐍ̝̍ѣड़ّĈ D. ඉர̈́߹ үຽࢲᐍგநր̝ᖐᄃߛၹ ࢲᐍಡӘᄃᏊณր̝ቑಛᄃপᕇ Ăௐ ˟֨ቢϤࢲᐍგநఢထ̈́ଯજүຽࢲᐍგநߛၹᄃ ેҖ߆ඉĂ৪३ăੑચგநᄃྤੈ೩ֻ࠹ᙯ͚೯Ă ௐˬ֨ቢϤቊ८యរᙋүຽࢲᐍგந̝ѣड़ّĄ ώҖϫ݈̏͘ᄓะ̰ొүຽࢲᐍຫεְІĂֶآؠăેҖგຽચ̝үຽࢲᐍგந࠹ᙯְטӄБវТ̥ซҖࢲᐍᏰᙊăෞҤăଠგăႾ ༛ᄃಡӘ̝үຽࢲᐍგநԔĄ ώҖүຽࢲᐍგநᖐߛၹĂܼͽˬ֨ቢјĂௐ˘ ֨ቢϤБҖЧಏҜయგந͟૱үຽࢲᐍĂᓁҖЧຽ გಏҜםĂ֭ϤүຽࢲᐍგநయಏҜ൴ण ᑕϡ̍ĂڱЧีຽચఢቑ̚ ࢎؠүຽࢲᐍଠგ͞ٺቁ̝ؠཌྷგநώҖүຽࢲᐍĂੵځ੫၆ ĂͽଠგώҖүຽࢲᐍĄޘטᄃҋҖ ߤ८ޘטă̰ొቊ८ޘטგ΄ڱĂ੨ЪᏲчޘטᄃҋԧ ෞҤטүຽࢲᐍຫεְІݭၗ̶ᙷĂϺుՎଯҖࢲᐍଠ үຽࢲᐍ 5. (1) (2) (3) 6.઼छࢲᐍ B. To use the net worth ¿gure disclosed in our latest annual (1)ඉர̈́߹ ¿nancial report for the calculation of the total country risk ෞඈĂࢎؠ઼छ limit that will serve as the ceiling of our bank's exposureדഇγ။ๅܜA.ֶMoody's າ̳ο઼̝छ ࢲᐍࢨᗝᇾĄ to country risk. C. Within the total country risk limit, the individual limits for B.ͽώҖܕѐޘੑચಡܑ̳ο̝ஐࣃࢺᇴࢍზ઼छࢲᐍᓁ various countries for the next year are determined based ࢨᗝĂүࠎώҖ઼छࢲᐍΞਕᇷᐍࣃ˯ࢨĄ on each country's political and economic situations, as छࢲᐍᓁࢨᗝ̰Ăტ៍Ч઼߆ăགྷଐ๕ֹ̈́ϡಏҜ઼̝ٺ.C well as the actual needs of relevant business units. ࣎Ҿ઼छࢲᐍࢨᗝĄ̝ޘຽચᅮՐᑢؠѨѐ D. Risk exposure is constantly measured and monitored. Пܫᘦؠٕ̏൴Ϡๅ̙ڶD.ᇷᐍࣃᏊณᄃႾଠĂ֭၆߆གྷଐ For countries that are experiencing political and economic ঐྍ઼छࢲᐍࢨᗝֹ̝פᐍ҃ዎአࢫෞඈ઼̝छĂᇶઃٕ instability, or whose ratings have been downgraded due ϡĄ to defaults, their country risk limits will be either frozen or .በᄦĶ઼छࢲ eliminatedޢژE.͡ຉᓁЧ઼छࢲᐍᇷᐍྤफ़Ă̟ͽ̶ ᐍგநಡӘ३ķĄ E. On a monthly basis, country risk exposure data will be ̚ gathered, analyzed and compiled into a Country Risk ර ϔ Management Report. ઼ ˝ ˩ ̣ 7.ܫϡࢲᐍĈ ѐ 7.Credit risk ą ϡࢲᐍࢲᐍّྤயᗝĄܫѐ (1) ܑ̰ีϫĈ ಡ (1) On-Balance Sheet Items: Credit risk and risk-weighted assets 95ѐ12͡31͟ಏҜ:າέ။˼̮ Dec. 31, 2006 Unit: NT$1,000 ϫ ዋϡ̝ࢲᐍᝋᇴ ࢲᐍّྤயᗝี 170 Items Risk Weight Risk-weighted Assets ഠٸഠඈᝋ઼छๅᝋ̈́хಏፉܲٸ෴ˢؠхಏ̳̈́ๅă Procurement of time deposit certi¿cate, treasury bonds, loans of the nature of 0% 0 independent countries, and loan secured time deposit ๅᝋعഠඈг͞߆ٸ 10% 693,821 Loanss to local governments ТຽඈᅙҖๅᝋٸٵх 20% 33,352,407 Deposits in and lending to peer banks ͽҝшࠎፉ̝ܲๅᝋ 50% 120,923,261 Obligations secured by houses ഠ̈́ྤயٸਠЋຽ˘ 100% 626,347,887 General corporate ¿nancing and other assets Ъࢍ 781,317,376 Total ϡࢲᐍࢲᐍّྤயᗝĄܫγีϫĈܑ (2) (2) Off-Balance Sheet Items: Credit risk and risk-weighted assets 95ѐ12͡31͟ಏҜ:າέ။˼̮ Dec. 31, 2006 Unit: NT$1,000 ϫ ࢲᐍّྤயᗝี Items Risk-weighted Assets General off balance sheets transaction 39,506,351 ٽਠܑγϹ˘ Ꮙથݡ Derivatives 383,209ܛࢉϠّ ෴аࡗؠๅĞRPğ 85,082ܢדைๅ ԸྤĞRSğ 863דаࡗؠைๅܢ ЪࢍTotal 39,975,505 din ANNUAL REPORT2006 171 652 5,991 ѐѐѐ 238,661 11 າέ။̮ : າέ။˼̮ າέ။˼̮ : : ࿅ to due date ͟ಏҜ More than 1 year ͟ಏҜ ͟ಏҜ 31 ͡ 31 31 ҋҖᔉаዶᗝ 3 ͡ ͡ ѐ ѐѐѐѐ March 31, 2007 Unit: NTD 12 12 111 96 Self-purchased Balance ࢲᐍّྤயᗝ ѐ ѐ Dec. 31, 2006 Unit: NT$1,000 Dec. 31, 2006 Unit: NT$1,000 95 95 ͇Ҍ͇Ҍ Risk-weighted Assets to due date 181 181 days to 1 year ce and domestic and overseas branches; assets and liabilities denominate ͇͇͇͇ ¿ 00 00 180180180 ethod ͇Ҍ͇Ҍ due date 450,711 5,633,887 492,661 6,158,263 103,082 1,288,525 ߹఼ዶᗝ 91 1,046,454 13,080,675 91~180 days to ld in head of ᗝܛഇ͟౺ዶഇมז Outstanding Balance ͇͇͇ ͇ 9090 90 date ͇Ҍ ͇Ҍ Volumes during the period prior to the due date ᑕࢍ೩ྤώ 31 Accrued Capital 31~90 days to due ) 5,375,055,917 1,039,764,930 375,055,917 ͇͇͇͇ ൴Җᓁᗝ 303030 date Issued Volume ҌҌ 1 ڱώҖଳϡᇾ ( 1~30 days to due Ъࢍ Total (107,461,377) 41,725,551 (36,953,164) (32,476,846) (103,995,579) 24, 1,217,196,971 173,021,793 148,072,983 107,535,049 202,661,155 585,90 1,109,735,594 214,747,344 111,119,819 75,058,203 98,665,576 610,144, ed method options ࢲᐍҾ ¿ B 135,000,000 135,000,000 0 CD 135,000,000 375,055,917 135,000,000 0 0 375,055,917 A1A2 2,365,000,000 2,365,000,000 769,764,930 0 0 0 Risk Category Ъࢍ Ҿד Type risk ows À ows À rate risk foreign currencies are excluded. ژഇ͟ഇࢨඕၹ̶זາᄂ။ ଐԛĄ̼דώҖଂְྤயᙋ ߹જّࢲᐍ ξಞࢲᐍྤώࢍ೩̈́ࢲᐍّྤயᗝ ഇ˾ Capital gap ߹ Major matured capital outܛഇྤזࢋ ߹ˢ Major matured capital inܛഇྤזࢋ ந Adoption of simpliڱٽࢲᐍ Equity security risk γ๗ࢲᐍ FX risk થݡࢲᐍ Commodity risk ᏴፄᝋଳᖎדӀதࢲᐍ Interest rate risk ᝋৈᙋ Ъࢍ Total ොĈώܑ่ӣᓁҖ઼̰̈́γ̶͚፟ၹາέ။ొ̶Ğ̙ӣγ။ğ̝ܛᗝĄ Note: The table includes only assets and liabilities denominated in NTD he 9. 9. Liquidity Risk (1) (1) Term Structure Analysis of NTD-denominated Assets & Liabilities 8. 8.Market Risk Capital Accrual and Amount of Risk Assets by Using Standard M (3) (3) Asset securitization ܑژഇ͟ഇࢨඕၹ̶זܛ࡚(2) (2)Term Structure Analysis of USD-denominated Assets & Liabilities 95ѐ12͡31͟ ಏҜĈ࡚ܛ˼̮ Dec. 31, 2006 Unit: US$1,000 ᗝܛഇ͟౺ዶഇมז Volumes during the period prior to the due date Ъࢍ Total 1Ҍ30͇ 31͇Ҍ90͇ 91͇Ҍ180͇ 181͇Ҍ1ѐ ࿅1ѐ 1~30 days to due 31~90 days to due 91~180 days to 181 days to 1 year More than 1 year date date due date to due date to due date ྤய 4,847,139 1,952,757 1,142,010 848,856 85,860 817,656 Assets ๅ 5,341,352 2,806,879 813,740 388,942 414,390 917,401 Liabilities ˾ (494,213) (854,122) 328,270 459,914 (328,530) (99,745) Gap ᎕˾ (494,213) (854,122) (525,852) (65,938) (394,468) (494,213) Gap accumulated ̚ ොĈώܑ่ӣᓁҖă̶઼̰͚፟ၹ઼̈́ᅫܛᏉຽચ̶ҖЪࢍ࡚ܛ̝ܛᗝĄ ර Note: The table includes only assets and liabilities denominated in USD held in head quarter, the domestic branches and OBU. ϔ ઼ តજ၆ᅙҖੑચຽચ̝ᇆᜩ̈́ c. The Influence of Domestic and Foreign Majorޠڱγࢦࢋ߆ඉ઼̰̈́ (ˬ) ˝ ˩ Policies and Law Amendment Exerting on the ̣ Яᑕନ߉ ϡෞඈሀݭ̝ჯ᜕ᄃ࣒ Bank's Financial Structure and Respondingܫ͗ܫѐ 1.. ᜈĶѣੑચᘪᙋķЋຽ ą Measures ޙϡෞඈሀݭܫ͗ܫѐ ؠĂ֭ԆјĶੑચᘪᙋķЋຽ ಡ 1. In addition to continuously maintaining and modifying the ϲĂࢍ96ѐΞ˯ቢ߉ҖĂޞր߉ҖޢĂώҖЋຽܫϡ credit ratings model designed for corporate borrowers ෞඈүຽӈԆፋ̝ߛၹĂഇΞயϠ˭Еड़ৈĈ with certified financial statements,, we have undertaken ϡࢲᐍඈܫ͗ܫቁؠཌྷځய࣎ҾෞඈĂ៍މăి֝ (1) 172 to build the same type of model for those corporate ৺Ą borrowers without certified financialstatements. .Once Once ၗĄ the new system is activated in 2007, our bank will haveېϡܫؠഇᑭෛྤயЪ̝ (2) (3) үࠎܫࢎᆊᄃܫᗝޘ̝ણ҂Ą a more synergistic infrastructure in place for dealing with :ഠĄ corporate credit ratings and the expected bene¿ts includeٸӈॡႾଠયᗟ (4) ϡࢲᐍྤώࢍ೩Ă (1) Fast production of objective ratings useful for clearܫ࿅ෞඈրயϠ۞࿁ࡗ፟தࢍზ (5) .ؠ̝ఢቑĄ identi¿cation of the credit risk level of each borrowerםЪາ͐ᔈႬྤώ ᆶ८ಏҜ (2) Regularreview of the credit quality of our assetܫ೩ֻܮგநրĂͽܫᜈ࣒ؠE-LOAN ᇈ.2 ˘इՀਕ೬ᜨᜪމܫϡࢲᐍ̝ྤੈĄ portfolio. (3) To be used asthe the basis for determining loan pricing ĂώҖࠎፉЇဩޢķڱგநᏱܛҋ95ѐ8͡၁߉Ķဩγૄ.3 and line of credit. ፟ၹ؎Ї̝ᓁநˠᘪܛዚ፟ၹĂืᄃဩγૄ̝ܛγૄ (4) Real-time monitoring of problem loans. ๒ะ̈́ዚĄၟҌ95ѐ12͡31͟ĂؕޢࢎĶዚݵࡗķ (5) Calculation of credit risk capital charges based on ώҖ̏ᄃ20छᓁநˠᘪԁዚݵࡗĄ default probabilities generated by the ratings system, so as to ensure compliance with BASEL II. (α) ࡊԫԼត̈́யຽត̼၆ᅙҖੑચຽચ̝ᇆᜩ̈́Яᑕନ 2. To keep on improving the E-LOAN management system ߉ for credit investigation, in order to provide loan approval 1. ྻϡࡊԫր˘ѨፋЪܛᏉ፟ၹΞਕࢬᓜ̝ࢲᐍĂΒ߁ units with a set of information better able to reflect the ܫϡࢲᐍĞܫϡෞඈăܫϡෞ̶̈́Ћă࣎ܛܫϡࢲᐍ̶ customer's credit risk. ăྤயๅგநğ̈́ү 3.With the promulgation of the Regulations GoverningٽğăξಞࢲᐍĞᅙҖ̈́Ϲژ Ꮙ Offshore Funds in August 2006, our bank must sign theܛğඈĂ֭೩ֻЪژր̈́үຽࢲᐍ̶ٽຽࢲᐍĞϹ Sales Contract with the general agent of each offshore ؠםາ͐ႬྤώזႾநಏҜٙᅮ̝ԆፋಡܑĂ̙ҭਕ྿ fund before we can engage in fund raising and sales ӄࢲᐍଠგˠࣶĂઇՀѣड़۞ྻϡᄃՙඉĄםࢋՐϺਕ̝ activities. As of December 31, 2006, our bank has signed ϡܫ၆͘ٽϹٕ͗މត̼ྵ̂ĂᅙҖдႾଠܜѐயຽঐܕ .2 such sales contracts with 20 general agents. ࢦڦ੫Ă͞ܫࢲᐍ͞ࢬĂᐌॡֶፂயຽ̈́གྷᑻજၗአፋ ANNUAL REPORT2006 173 , his This cantly Wealth Wealth ¿ , ed customer. ¿ n addition, these In addition, these actively serve our Little Sentries of Wealth ow analysis with regard to À always actively serve our 2006 Taipei 101 Climbing Contest , ed a new CIS mark: Smile & Reach 2006 Expo on Wealth Management developed a new CIS mark: Smile & Reach , 2006 Concert of the Vienna Youth Choir. This the 2006 Concert of the Vienna Youth Choir. This Our bank developed a new CIS mark: Smile & Reach Industrial Evolution on the Financialof Businesses Banks, and the Proposed Response Measures Image and its Reaction: Mergence : None integrated management of all potentialbank, risks including faced credit by risk a (creditcorporate ratings, and credit private scores, banking risk(the analysis), banking market book, risk the trading book,management), assets and and operational liabilities risk (analysisassociated of with the the risks trading system andto its operation), prepare and complete records andthe reports regulators. demanded by The goalthe is New to Basel Capital, meet as the well requirementspersonnel as of assist in risk improving management the utilization andprocess. decision making in recent years. Forand effective counterparty monitoring risks, the of Bank customer mustcredit dynamically guidelines adjust based on industrialevolutions, and make active economic efforts incycles, forecasting and business strengthen cash loan applications in order to thoroughly evaluatetrack and of keep funding sources for debt payment. is a clear demonstration oftransformation our and aspirations image of enhancement. innovation, In addition, these events can also help promote the sales of various products. Out, which was designed toUS build and on present the an theme image ofthat of TOUCH CHB action and employees passion, will signifying customers always with actively great enthusiasm serve and our warmth.our medium Smile of will be communication and ourwill considerate help services put a smileBased on on the this face new of the CISorganize satis a mark, series we of events have such undertakenManagement as to Invest Weekly Lectures d. The Impact of Technological Advancement and e. The Influence of the Bank's Changing Corporate 1.Technological systems should be utilized to enable 2. The landscape of the industry has changed signi and the 2006 Concert of the Vienna Youth Choir. This f. Expected Efficiency and Possible Risk from ̝ჟৠ̝ჟৠ̝ჟৠ Бϔநੑ & Reach out 2006 e & Reach out ၓ̼ᅙҖ έΔ SmileSmile & & Reach Reach out out TOUCHTOUCH US US 2006 ၓ̼ᅙҖགྷ࡚ᓏᜬजǕჯ˵ৼ ԧߏநੑ̈ыһķăĶ - 2006 ώѐޘώҖ൴णາЋຽᙊҾԛ෪ᇾౢ ᔉ̝ഇड़ৈ̈́ΞਕࢲᐍĈ׀ซҖ ᅙҖԛ෪Լត၆ᅙҖ̝ᇆᜩ̈́Яᑕନ߉ ઼ᅫ൳ᔈķăĶ ) ) ѐЪભဥķඈրЕ߿જĂणϯώҖՐາེត۞Ћဦ͕Ă೩ Ăͽ ቁ၁ෞҤ֭ೠ೪ᔘഠֽĄژ߹ณ̶ܛன̝͗ܫயຽഀঈण୕ࡁҿĂ֭ΐૻ၆ ̱ ̣ ώҖЋຽԛ෪Ă֭ᖣЧ̙Т߿જ۞͞ёĂᏴፄዋ̷۞થ ݡĂ྿јܳዚϫ۞Ąچ ͌ 101 ώҖ ̝ፋវԛ෪Ă֭ͽѩາЋຽᙊҾԛ෪ᇾౢࠎ߿જคĂ᎕ໂ ఢထĶᝌሄᏐ̄ᓁજࣶ ౾ᜓົķ ăĶੑੈᔌ๕ኢጪķႊᓾăĶچ႕ຍ۞৯Ăͽ೩͗މચĂᛏڇĂ֭ͽ৯үࠎ ሇĂϡ෭͕۞͗މચڇՀ᎕ໂĂሤଐ̝ຍ෪Ăܑ྿ၓᅙˠ ͽજă᎕ໂ̈́ᝌ͕ಈॆ۞ሤྕމคĂՀซ˘Վග̟ᜪ ચ෭͕ğܼؼᜈࣧѣڇĞ৯ా͕ၓᅙ ( ( (˛) ᕖ·ᒉຽፂᕇ̝ഇड़ৈ̈́Ξਕࢲᐍ g. Expected Efficiency and Possible Risk from 1.ഇड़ৈĈ Expanding Business Operation Locations: 1.Expected pro¿t: (1)ాᗆ఼ྮăྃૻҖዚშĄ (1)Chain channel, supplementing marketing network. (2)੨ЪᒉྻඉரĂܳซགྷᒉᒻड़Ą (2)In compliance with business operation strategies, and Ћຽԛ෪ĄچĂ೩ޘ౹ౄۢЩ(3) promotion of operation ef¿ciency. Ш͕˧Ą (3)Creation of corporate fame, and enhancement ofމચ̂ிĂჯᘭᜪڇ(4) (5)݈ᖀҶԊĂܜഇӀкĄ corporate image. 2.ΞਕࢲᐍĈ (4)Service for the public and strengthening the customers' loyalty. (1)гડ՟རĂˠ˾ᅍഴĂயຽγொĄ (5)Long-term planning with vision and long term bene¿ts. ĄۋТຽะĂೋّᚮ(2) 2.PossiblePossible risk: ᒉྻณ̙֖Ăјώ࿅Ą(3) (1)Region deteriorating, population decrease, industry .Ą emigrationٽฟ٤̙މᒉຽཛгࢦᝑĂ(4) ̚ ර (5)ѣࢨྤĂϏ·̶ӀϡĄ (2)Concentration of competitors, vicious competition. ϔ (3)Insuf¿cient operation volume and high costs. ઼ ˝ (4)Overlapping of business operation territory and ˩ ̣ dif¿culty of developing customer base. ѐ (5)Limitation of resources, and insuf¿cient utilization. ą ѐ ಡ h. Risks Generated by Business Concentration Inthe past, our business was concentrated in corporate 174 banking. Due to an over-supply of banks, competition was ¿erce in the pricing of interest rates and various fees, resulting in gradual erosion of pro¿ts.In n response, we have been continuously developing new ¿nancial products such as credit, foreign exchange,, trust, insurance and derivatives, so that we can provide a wide variety of products to meet the diverse needs of our customers and gradually readjust our pro¿t structure by means of risk minimization anddiver- si¿cation.. Inn addition, we are very active in talent cultivation and recruitment and have been focusing on diversifying our businesses so as to increase revenues and reduce risks associated with over reliance on a single product. i. The Influence of the Change of Ownership ExertingontheBankanditsRisk In response to the government policy of launching a second round of financial reforms, we decided to seek recapitalization by means of private placement and have successfully found an investor that is now our biggest shareholder. Consequently, our ¿nancial structure has been strengthened, bad debts are being aggressively written off to bring down the NPL ratio and improve asset quality, and the overall health of the Bank is better than ever. For our employees and shareholders alike, real benefits will ANNUAL REPORT2006 175 ts to both our employees and ¿ ts in excess of NT$10 billion in ¿ led a lawsuit against the Bank for requesting ¿ There is a lawsuit concerning an incidence of "request "Demand of Returning the Remittance1997. by Subrogation" In in that "DemandSubrogation" of lawsuit, Returning Taipei the local Remittance districtthat court by the sentenced Bank won the lawsuitto on accept the Sept. sentence, 10, the 2004. Iranian partySuperior Rejecting appealed Court to on Taiwan Oct. 6,under 2004 review. and this lawsuit is currently for the payment of US$15between million the by Defense electronic Department, remittance" Iran1990. and After the the Bank Supreme in won Court the sentenced lawsuit that on theDepartment August Bank 1, 2002, Iranian Defense j. Lawsuit and Non-Lawsuit be reaped from having Taishinterms Holdings of as business our operation, partner. Chang-Hwapossessed In Bank competitive has advantages long in corporate(business banking breakdown: corporate banking 65%,banking consumer 35%), while Taishin isconsumer noted banking for (consumer its banking strength 70%,banking in corporate 30%). As regardsof the branches, geographic although distribution we havehowever, a the nation-wide number of coverage, ourfar branches less in that North that Taiwan ofcontrary, is Hwa Taishin Nan offices Bank are or concentratedregion, First in making Bank. the it northern a On perfect the Taishin complement Holdings for getting our on bank. board,banking With its can strength now in be combined retail network as with well our as global our leading business so position that in business corporate banking synergy canthe be needs quickly of created our substantial to customer service more base added and to value generate for ourMoreover, shareholders our business and health employees. asand a shareholdings century-old by company directors andbe supervisors enhanced. will also Asstocks Taishin's was purchase fully settled, of the ourand payment preferred significantly enabled write us off to badand rapidly debts, improve asset reduce quality. NPL ratio, directors Furthermore, and shareholdings supervisors by as a whole5%, was thereby increased solved to the over problemfragmentation. of excessive As shareholding a result,Bank the is expected century-old to Chang post pro Hwa 2006, delivering tangible bene ROE. ঐܛҫ ( ѐฟؕ 95 ҿੰڱགྷ͟ 1 ͡ 8 ѐ ѐมΩ၆ώҖٙ೩̝Ķ ͟ҿՙώҖ౼෦ĂଘϿ͞ 91 86 10 ͡ ĂέາጽܜঐܛᏉ ѐมѣᙯ࡚ܛ˘˼̣Ѻ༱̮̝ 9 80 ѐ Ăϫ݈ϒᆶநੰڱ෦έ៉ඈ˯͟ 6 35%) 93 ͡ Җ۞̶ҶĂώҖᔵ࿆̈́Б઼Ăҭ̶ٺĂҌ 10 ѐ Ĉঐܛҫ 93 30%) 65% ٺ̝યᗟĂֹѺѐၓᅙ̶ޘ۵Њ࿅̈́ ٺώҖᄃϿ६઼֨ొ யϠ۞ӀৈĂڌଠˢ۵ώҖĂ၆ώҖࣶ̍̈́۵ܛέາ ᆧܛᏉԼࢭ۞߆ඉĂώҖд઼̰ᏱநனܛѨ˟عĂ ੨Ъ߆˭ڶېᏉĂдᅙҖछᇴ࿅к̝ܛЋຽٺຽચઐࢦـͽ ĈЋܛҫ 5% ְІܧ෦ٕ ຽચะٙ̚ࢬᓜ̝ࢲᐍ གྷᒉᝋ̝Լត၆ᅙҖ̝ᇆᜩ̈́ࢲᐍ Ћܛҫ ) ) ) ( ˩ ˣ ˝ ٺĶኛՐග;๗ഠķ෦ְІĂ ) ᝋৈಡ࿌த࠰ᄋ ӀĄڌயϠѺᆆ̮ͽ˯۞ᒔӀĂώҖࣶ̍̈́۵ ٺੰڱᔘ๗ഠķ෦ຽ གྷέ៉έΔг͞ܔᔘ๗ഠķ෦ĂྍĶҜኛՐܔҜኛՐ ٺĂϿ͞ೇ˫ᜈҖޢՙ౼෦ቁؠ ٺதăԼචྤயݡኳγĂՀԼචώҖႾְ۵ͧத Ҳͧٸൺഇ಼̰̂ᖼዚӑă֝ిࢫҲᇃ ཌྷ࿈ٺĂੵֹώҖޢᄮᔉপҾ۵ ۵ഠϹ౷ܛΐᆊࣃćѩγĂಶѺѐ ၓᅙ۞གྷᒉវኳ̈́Ⴞְ۵ඕၹ҃֏Ăέາܢࣶ̍۞̈́ڌΑਕĂ֝ి൴೭ ტड़Ă˵ਕ೩̿ώҖ۵̝͗މચᇃ̂ڇĂд ຽચགྷᒉ٤ण˯Հਕ൴೭ܜܛᐹ๕ඕЪώҖᇃ̂۞ঔ̰γ఼ྮፂᕇ̈́ЋܛĂͽ ঐޢଠˢ۵ܛព۞ّ̢ྃĄέາځкĂ࠹ͅгĂέາࢋ̶Ҷ дΔొгડĂᗕ͞ѣޝΔొгડώҖͧරᅙ̈́˘ᅙ͌ 70% ٺҿՙĂڇ̙ ᐹ ๕ۋᏉ۞ᚮܛഇͽֽѣЋຽܜଂຽચགྷᒉᆸࢬ҃֏ĂώҖ தĂ೩̿ྤயݡኳĂ ֹώҖགྷᒉវኳՀΐઉБĄͧٸĂᖣͽૻ̼ੑચ ඕၹĂ᎕ໂχዚӑĂࢫҲᇃཌྷ࿈ڌ٢ឦЧีથݡˠ̖Ăᕖ·ຽચ̝кᇹ̼ĂͽᆧΐЧีຽચќ ˢĂࢫҲಏ˘થݡ̝ะ̚ࢲᐍĄ ( ྤĂͽռ๒۞͞ёĂјΑ͔ˢಏ˘̂۵ ચᅮՐĂ֭ు ՎአፋᒔӀඕၹĂѣड़ࢫҲ̶̈́ЧีࢲᐍĂͷ᎕ໂૈዳ̈́ڇБ͞Ҝ̝͗މᏉ થݡĂ೩ֻк̮̼થݡĂ႕֖ܛඈЧีາٽăܲᐍ̈́ࢉϠّϹܫăγ๗ăܫĂᒔӀ͟ৈഴ͌ĂώҖ˜̙ ᕝฟ൴ۋࢬᓜӀதă͘ᜈඈ̝ᆊॾᚮ ) ̚Ą G.Emergency Response Mechanisms טăП፟நᑕត፟˛ -உ߁Ķխ 1. The CHB Business Continuity Plan provides for emerטĶၓ̼ᅙҖຽચϖᜈྻүࢍထķ̝ᑕត፟ .1 gency response mechanisms that deal with disasters, चķăĶࢦ̂ࠪଐķăĶˠࣶቪ̍ķăĶྤੈր̚ᕝķ major epidemics, worker strikes, interrupted ITsystems, ၁ᔀ֏П̈́ώҖຽચඈְ߇Ăֶ֭ፂࢍ൪̙צͽ̈́ዎ and other accidents such as business impediment by un- ఢؠར၁ેҖᖸăീྏٕႊቚቁܲࢍ൪̝ѣड़ّĄ founded rumors. The effectiveness of this Plan is ensured̝ 2.. ༊፟րొЊർវ߇ᅪॡĂົҋજୁજट̙ઃ፟ by thorough monitoring, testing and regular practicing. ,If any part of the main system's hardware is out of order .2 ڱćт፟րϒёᒖဩ߇ᅪൺഇมٽĂᚶᜈેҖϹט ࣒ೇĂ҃ീྏᒖဩ̪Ξϒ૱ྻүॡĂଳϡĶϒёइീྏ the redundancy mechanism will be activated to execute transactions and prevent breaks in service. If the operat- ĄٽķᚶᜈซҖϹטइSWAP፟ ing environment of the main system breaks down and ϡĄֹטफ़ளг౯೯Ăֻೇࣧ፟ྤٽՏ͟ચϹ .3 cannot be quickly repaired whereas the testing environ- 4.. შྮ౯೯ొ̶ĈώҖྤੈᄃέ̚ăฯะቢ͕̚ቢЧ ment can still function normally, then the operating mod- ͽˬ୧E1ቢྮాඕĂέ̈́̚ฯะቢ͕̚มͽ˘୧E1ቢ ule will be swapped with the testing module in order to ̚ continue system operation. ර ྮాඕĂၹј˘ᒖԛშྮĂ֭ͽISDN PRAቢྮүᇥତ౯ ϔ 3. Remote backup of payment and transaction data is car- ೯ć̶Җშྮͽ512Kቢాତྤੈٕะቢ͕̚Ă֭ͽ ઼ ˝ ried out on a daily basis for disaster recovery purposes. ISDNүࠎ౯೯Ą ˩ 4. Network Backup: Our bank's ITDivision is connected ፂĶၓ̼ᅙҖຽચϖᜈྻүࢍ൪ķఢؠĂซҖщБ᜕ֶ֨ ..5 ̣ ѐ via 3 E1 lines with our hubs in Taichung and Kaohsiung ą న߉ᑭߤ̈́խचೇࣧႊቚĄ respectively, and there is an E1 connection between the ѐ ಡ 6.. ώҖ̏д̚૬гડາޙ˘ЪщБᇾ̝ன̼ྤੈ̂ Taichung and Kaohsiung hubs, thus forming a ring-type 95ѐ3͡ϒёརј4͡ϒёୁϡĂ֭ࣧྤੈ̂ሁ network with an ISDN PRA backup. Networks of variousٺሁĂ branches are linked up with either the ITDivision or one አፋјࠎᇶॡّ̝ளг౯೯͕̚Ą 176 of the hubs, and are supported by an ISDN backup. ࠎώҖϒёளг౯೯̚ޙĂέ̚ೇᎸ̂ሁፋغѐ 20062006..7 5. Inspection of security facilities and disaster recovery ex- րӈॡ౯೯፟ ercises are performed according to Chang Hwa Bank'sٽ2007ѐ3͡೩ֻБҖચϹٺĂ͕֭ .Ăͽܲᅪᇃ̂ԸྤˠᝋৈĄ Business Continuity Planט 6. We have built a modern ITBuilding that is compliant ˣăࢦࢋְีĈĄ with all safety standards in the Chunglun area and have opened it for business in March 2006. The old IT Building will temporarily serve as the remote backup center. 7. Our plan is to convert the Fuhsing Building in Taichung to be the of¿cial remote backup center for our bank by the end of 2006. It will be responsible for the operation of the real-time backup mechanism for data generated by all of our payment and transaction systems in March 2007 with a view to protecting the rights and interests of all inves- tors. H.Other Important Events: None. ANNUAL REPORT2006 ) 177 ̮ / ඁޢ ( Տ۵࠳ዶ (After Tax) EPS in NT$ % NT$1,000 Tax) (After ѣּͧ າέ။˼̮ Ĉ Income Feb. 14, 2007 : ώഇຫৈ Unit: NT$1,000 ͟ ಏҜ ࢋᒉຽีϫ 14 Major Operations ѣ۵Њ ͡ Shareholding ੑயܲᐍགྷࡔˠ Property Insurance Brokerage ˠ֗ܲᐍநˠ Life Insurance Agency 2 ts ͟ ಏҜĈາέ။˼̮ ¿ ѐ 31 Shares ᒉຽ Ӏৈ 500,000 100% 500,000 100% ѣ۵ᇴ 96 Pro ͡ Operating ̳Φ ) 12 Dec. 31, 2006 Unit ۵ ѐ ( 100% 95 5,000 5,000 ᒉຽ ќˢ ၁ќྤώᗝ Paid-in Capital Revenue ۵ּͧ Operating Shareholding 100% ank's Subsidiaries ၓᅙܲᐍགྷࡔˠ ஐࣃ ሁ ሁ Equity Chaur-Her Tang CHB Insurance Brokerage Company, Ltd. 6 6 ཱི ཱི 57 57 ഼ሗ Chi-Tai Huang ๅ ᓁᗝ Total гӬ Liability Address ؖЩܑٕˠ เ؈ ྤய ᓁᗝ Total Assets Company Name and Representative 6F, 57, Sec. 2, ChungRd., Shan Taipei, N. Taiwan έΔξ̋̚Δྮ˟߱ 6F, 57, Sec. 2, ChungRd., Shan Taipei, N. Taiwan έΔξ̋̚Δྮ˟߱ Frank Chen Chao-Nan Hsieh William Lin, Walter W.T. Yeh Frank Chen Ming-Wen Chang Tzer Lin Wang Alexander C.H. Lin, ၓ̼થຽᅙҖ۵Њѣࢨ̳Φ Chang Hwa Commercial Bank, Ltd. 5,000 33,926 17,682 16,244 88,772 13,620 10,044 20.09 5,000 123,726 78,326 45,400 272,484 43,164 33,062 66.12 ͳፄអ ౘษ ჯሇڒ ၓ̼થຽᅙҖ۵Њѣࢨ̳Φ Chang Hwa Bank, Ltd. ᔁߌշ ཧ༱˿ ౘษ ၿܦڒ ͛ځၓ̼થຽᅙҖ۵Њѣࢨ̳Φ Chang Hwa Bank, Ltd. ૺ ྤώᗝ Capital ̳Φ ) ۵ ( నϲ͟ഇ 100% 92.4.1 April 1, 2003 90.6.28 June 28, 2001 Establishment Date Chairman Supervisor President Chairman Supervisor President ᖚჍ Position Director Director ְ Ⴞ၅ˠ ᓁགྷந ܜְ ְ Ⴞ၅ˠ ᓁགྷந ܜְ ̳Φ ۵ּͧ ) ̳Φ ) Shareholding 100% ۵ ( ̳Φ ۵ ) ( ̳Φ ၓᅙˠ֗ܲᐍநˠ ) ۵ ( ЋຽЩჍ ۵ ( CHB Life Insurance Agency Company, Ltd. Enterprise Name ЋຽЩჍ Enterprise Name ЋຽЩჍ পҾྶְี Special Items ̳Φ ̳Φ ڶᙯܼЋຽᒉྻໄ ᙯܼЋຽְăႾ၅ˠ̈́ᓁགྷநྤफ़ ᙯܼЋຽૄώྤफ़ ᙯܼЋຽ ) ) Enterprise Name ) ) ) ) ۵ ۵ ၓᅙܲᐍགྷࡔˠ ( CHB Insurance Brokerage Company, Ltd. .ၓᅙˠ֗ܲᐍநˠ ( CHB Life Insurance Agency Company, Ltd CHB Insurance Brokerage Company, Ltd. ၓᅙܲᐍགྷࡔˠ .ၓᅙˠ֗ܲᐍநˠ CHB Life Insurance Agency Company, Ltd ˬ ˟ ˘ α ( d. Operation Overview of the Bank's Subsidiaries c. Information of Chairman, Directors, Supervisors and President of the B b. Basic Data of the Bank's Subsidiaries ( ( a. The Bank's Subsidiaries ˘ăᙯܼЋຽ࠹ᙯྤफ़ A. Information Regarding the Bank's Subsidiaries ( CHB Insurance Brokerage Company, Ltd. ၓᅙˠ֗ܲᐍநˠ CHB Life Insurance Agency Company, Ltd. ၓᅙܲᐍགྷࡔˠ ੈྤٽࣄ̈́ᙯܼˠϹܛᙯܼЋຽࡦ३ܲᙋăྤ (̣) e. Endorsement Guarantee by Related Enterprises, Capital Lending and Related Parties' Transaction Information 95ѐ12͡31͟ ಏҜĈາέ။̮ December 31, 2006 Unit: NT$ ีϫ̈́ܛᗝ Item & Volume ෴ˢѣᆊ Ӏि̝דᙋ ෴ˢѣᆊ ќˢ ߿ഇхഠ ࢉϠّ ܛώדᙋ ᙯܼˠЩჍ The Income ১ܛ͚ ٽથݡϹ ܛྤ ЋຽЩჍ ዶᗝ Ӏिќˢ ࡦ३ܲᙋ Name of Related from the Үܛ͚ Rental Enterprise Name Outstanding Interest Endorse- ࣄ Financial Parities Interest Commission Expenses Balance Income from ment Capital Derivative Payment Expenses (Housing of Security Demand Guarantee Lending Commodity from the Rental) Procure- Deposit Transaction Security ment Procure- ment ၓᅙˠ֗ܲᐍநˠ ၓ̼ᅙҖ۵Њѣࢨ̳Φ Φ̳(۵) ̚ ර Chang Hwa Commercial 55,593,039 929,188 32,825 130,430,946 999,996 CHB Life Insurance ϔ Bank Ltd. ઼ Agency Company, Ltd. ˝ ၓᅙܲᐍགྷࡔˠ ˩ ( ) Φ ၓ̼ᅙҖ۵Њѣࢨ̳Φ̳ ۵ ̣ ѐ CHB Insurance Chang Hwa Commercial 20,147,219 155,516 18,789 34,884,558 999,996 ą Brokerage Company, Bank Ltd. ѐ Ltd. ಡ ᏱநଐԛĈדăռ๒ѣᆊᙋ˟ 178 ͟ഇ 94ѐ10͡3͟ ีϫ ᙷ ˙পҾ۵דռ๒ѣᆊᙋ ְົ఼࿅ٕົڌ۵ ᓜॡົ఼࿅ռ๒൴Җ˙পҾ۵14ᆆ۵Ąڌ94ѐ6͡24͟ᓜॡְົĂ94ѐ9͡23͟۵ ͟ഇᄃᇴᗝ πӮќሹᆊ໕ᆊ2%ࢍ̝ĂؠࠎՏ۵າέ။17.98̝͟ٽٙ60࣎ϹٽϹדؠᆊ͟Ğӣğ̝݈έ៉ᙋٺፂώҖ఼۵ֶ ӈޢ൴ҖٺĂүࠎώѨռ๒˙পҾ۵̝Ҳ൴ҖᆊॾĄؠᆊ͟ࠎ94ѐ6͡23͟ĄΩ࠹ྵ˘ਠ̳ฟ๒ะ఼̝۵̮ ᆊॾࢎؠֶ̝ፂ̈́Ъ ռ๒̝ᑕ๒ˠྤॾϺѣᚑॾఢቑٺఢؠĂͷ၆טѣ3ѐഇม̝ᖼឰࢨדΞ၆̙পؠˠҋϤᖼឰĂЯώѨռ๒ѣᆊᙋ நّ ऱᅙҖăௐܛĂ߇ࠎᒔᑕ๒ˠᄮТĂώҖ˜ણ੩ؠᆊ̚͟δᅙҖ̳Ә̝̣̂ᅙҖĞොĈ̣̂ᅙҖࠎέ៉ᅙҖăЪү ᅙҖăරݑᅙҖ̈́ώҖğˬѐഇؠഇхഠؠӀதπӮӀதࢎؠ˙পҾ۵̝۵िதĂ۵िதࢎࠎѐӀத1.8%Ą˘ পؠˠ̝ᎡᏴ୧ІΒӣĈٺௐ43୧̝6ఢؠ̝ඉரԸྤˠĂώҖ၆ڱٽϹדώѨռ๒˙পҾ۵̝ᑕ๒ˠࠎЪᙋ ӄώҖ಼̂೩̿ξҫதĂዮயຽгҜĄםᒉྻఢሀ̝҂ณĈ.1 ಡ࿌தĄڌӄώҖᚶᜈ೩̿གྷᒉड़த̈́۵םᒉྻᒻड़̝҂ณĈืਕ.2 3.఼ྮტड़̝҂ณĈΞ൴೭ტड़ͽ౹ౄ఼ྮ̝ᆊࣃ̼̂Ą পؠˠᏴፄ̝͞ё ӄԼචώҖྤயݡኳĄםயݡኳ̝҂ณĈᖣϤ೩̿ࢲᐍგநਕ˧Ăྤ.4 ᆊĞՏ۵າέ။17.98̮ğͽ˯ͷ۰ࠎώѨᇾ۰Ąغଳ̳ฟᚮᇾ͞ёĂͽԸྤˠᆊ྿ѣड़Ըᇾ̝Ҳ֭ ᆊͽ˯ᆊغᏉଠ۵۵Њѣࢨ̳ΦࠎЪ݈পؠˠ୧ІĂͷࠎҲܛĂᑕ๒ˠέາڍགྷ94ѐ7͡22̳͟ฟᚮᇾඕ Ꮙଠ۵۵Њѣࢨ̳ΦᇾĄܛĞӈՏ۵າέ။26.12̮ğ۰Ă߇Ϥέາ ࠎԼචੑચඕၹĂ೩ҋѣྤώዋ֖தĂ͔̈́ซಏ˘ඉரّԸྤˠͽ೩̿ώҖགྷᒉᒻड़Ăᆧซགྷᒉਕ˧Ă֭Ꮚณᚯ Ᏹநռ๒̝υࢋநϤ ఢؠĂᏱநռ๒˙পҾ۵Ą΄ڱॡड़ّ̈́ΞҖّඈЯ৵Ăֶࠖ࠹ᙯ̝ܛะྤ dering rst 3 years, and the ¿ xed interest rate for 3-year g date plus a 2% premium ¿ ANNUAL REPORT2006 179 ciency and strengthen operating capabilities ¿ rating ef ned by Article 43.6 of the Securities Exchange Act. Our bank has estors, the Bank has used the average ¿ ia, but also tendered the highest price (26.12 NTper share) above the er 23, 2005 approved the issuance of 1.4 billion shares of Type-B preferred ciency and ROE. g date was June 23, 2005. Different from publicly offered common stock, ¿ Bank, First Bank, Hwa Nan Bank, and our bank) on the price-setting date as rice above the effective minimum price (17.98 NTper share) would win. The position for our bank. vately place Type-B preferred stock pursuant to relevant laws after consi gef nels. to be an annual interest rate of 1.8%. vestors as de ᄃᅙҖᙯܼ ly placed this time are prohibited from being transferred in the hanced risk management capabilities. October 3, 2005 Relations with Bank ۵ĂώҖࠎᅙҖ̳̄Φ According to the FinancialTaihsin Financial Holding Holding Company Co., Act, share Ltd. of has CHB a andFinancial controlling Holding CHB Co., is Ltd. a subsidiary of TaihsinّטᏉଠ۵۵Њѣࢨ̳Φ၆ ώҖѣଠܛఢؠĂέາڱᏉଠ۵̳Φܛֶ s common stock in the 60 trading days prior to and ending at the price-settin Ņ Type of private offering: Type-B Preferred Stock Date of payment: Oct. 3, 2005 Date of reporting to SFB: Oct. 13, 2005 Disposal of the Bank's Shares : None. Securities during the Most Recent Fiscalduring Year the or Current Fiscal Year upPrinting to of the the Annual Date Report. of ̮ Our bank published the Service Life Table of Fixed Assets E. Additional Disclosure C. The Bank has Carried Out a Private Placement of D. The Bank's Subsidiaries' Shareholding or a. The Estimated Duration of Fixed Assets on January 1, 1999 (in accordanceClassification with approved the by Standard Letter Property No. 03454Executive Yuan issued on by May the 14, 1998),assigned where a each specific asset service type life is measuredlarge in number of years. asset types, Due not to everyin the detail the has annual been report. included Thesummarized as major follows: depreciation categories are Price າέ။ 26.12 ᄮᔉᆊॾ NT$ 26.12 ᆆ۵ share 14 Volume nancial structure and enhance our capital adequacy, as well as to boost ope ᄮᔉᇴณ 1.4 billion ¿ ८ؠ̝Ķבཱི ͟ cations of the subscribers are also more stringent. In order to attract inv ୧ ͟ ¿ 03454 13 3 43 cation ͡ ͡ ¿ 10 10 ed the following criteria to be met by the investor: ྤॾ୧І ¿ ѐ ѐ Quali 94 94 ఢؠ 6 identi 1. Scale of operation:2. conducive Operation to performance: an capable3. increased of Channel market helping synergy: share our creating4. and bank Asset synergy a to quality: for leading enhance assisting value operatin our maximization bank of in sales improving chan asset quality through en Subscribers targeted for the said Type-B preferred stock are strategic in Competitive bidding was used where the investor with the highest offered p time deposits offeredthe by benchmark 5 for major setting banks the dividend (Bank yield of of Taiwan, the Taiwan Type-B Cooperative preferred stock tender was openedminimum on bid price; July therefore,In 22, it order was 2005. to announced improve the our Taishin winner. Holdings not only met our criter by teaming up with a single strategic investor, the decision was made to pri the timeliness and feasibility factors involved in raising capitals. decides the minimumwhich issuance can be pricerequired freely of quali transferred 17.98 to NTper any share. person, the said Theprice-settin securities private stock. The average closing share price of the Bank The board meeting on June 24, 2005 and the shareholders' meeting on Septemb ğົ˟фௐ .ௐ ̝ Article 43.6 Securities Exchange ActڱٽϹדᙋ 87 ؠ̝ĶؠྤயϡѐᇴܑķĞֶ͟ 1 ͡ ͟έĞ Date 1 14 ѐ ͡ 5 88 ѐ ռ๒၆෪ 87 ಡᙋഇԊ౯ߤ͟ഇĈϔ઼ ેҖଐԛ ᙷĈ઼̰˙পҾ۵ ᆊഠᘳৼԆј͟ഇĈϔ઼דռ๒ѣᆊᙋ ؠྤயԶᖞ̝ѐࢨؠྤயԶᖞ̝ѐࢨؠྤயԶᖞ̝ѐࢨ ؠྤயԶᖞ̝ѐࢨ ٺώҖ )) ) Name of Private Offering ˘ ˘ Ꮙଠ۵۵Њѣࢨ̳Φ Taishin Financial Holdingsܛέາ Җ߆ੰ ) ีְځαă̳̄Φѣ̶ٕώҖ۵ைଐԛĈ ̣ăυࢋྃ·ᄲ ̝דၟҌѐಡΏОͤ͟ռ๒ѣᆊᙋ̈́ޘѐܕăˬ B. Progress of Private Placement of Securities: ੑயᙷҾᓄкĂࢋ̝Զᖞѐࢨᖎт˭Ĉٺ ᇾ̶ᙷķበᄦ̝ğĂֶܼЧҾੑயؠֹϡѐࢨĂϤۏੑ Item Choosing the right investor Rationale and necessity ofprivate the placement said The basis andthe rationality price for setting Type of private offeringDate of approval byand the the GSM Board, andvolume the issuance Type-B Preferred Stock :న౯Ĉ Houses, Buildingsޙޏٗ R.C.ౄ 55ѐ R.C. 55 years ΐૻ᎑ౄ 30ѐ Strengthened Brick 30 years Чีన౯Ĉ Each Equipment: ̿ࢫ፟ 16ѐ Elevator 16 years ુ፟ 10ѐ Forklift 10 years ཝన౯ 5ѐ Computer equipment 5 years ዃన౯ 5ѐ Vehicle equipment 5 years֘ ፟న౯ 5ѐ Machinery equipment 5 years (˟)ྤயഴຫົࢍந b. Assets of Impairment Pursuant to SFAS No. 35, the Bank assess indicators for Տ˘ྤயๅܑ͟ෞҤٙѣዋϡੑચົࢍ̳ٺώҖ impairment of all its assets with the scope of SFAS No. 35 at each ಡௐˬ˩ཱི̣Ķྤயഴຫ̝ົࢍநķ̝ྤயߏӎѣഴ balance sheet date. If impairment indicators exist, the Bank ຫྫ෪Ăтѣഴຫྫ෪ĂซҖഴຫീྏĂֶྍ̳ಡఢؠͽ shall then compare the carrying amount with the recoverable ̚ amount of the assets or the cash-generation unit ( CGU ) யϠಏҜซҖീྏĄഴຫീྏඕ ņ Ňܛර ࣎Ҿྤயٕྤயٙᛳ̝ன ϔ and write down the carrying amount to the recoverable amount ΞаٺயϠಏҜğ̝ࢬᆊࣃ̂ܛтྤயĞٕྤயٙᛳனڍ ઼ ˝ where applicable. Recoverable amount is defined as the higher ˩ ќܛᗝĂืᄮЕഴຫຫεĂ҃Ξаќܛᗝࠎஐ̳πᆊࣃ of fair values less costs to sell or the values in use. ̣ For previously recognized losses, the Bank shall assess, at யๅܑ͟ѣᙋፂពϯྤٺѐ ֹ̈́ϡᆊࣃ̝ྵ۰ć̝ͅĂࡶ ą each balance sheet date, whether there is any indication that .ᄮЕ̝ഴຫຫεΞਕ̙̏хдٕഴ͌ॡĂᑕ the impairment loss may no longer exist or may have decreasedޘͽ݈ѐٺѐ ྤய ચሕਕ If there is any such indication, the Bank has to recalculate theڇᗝЯྤய̝ҤࢍܛᗝĂࡶΞаќܛಡ ࢦາෞҤΞаќ recoverable amount of the asset. If the recoverable amount តજ҃ᆧΐॡĂഴຫᑕ̟ਫ਼ᖼĂଘਫ਼ᖼޢࢬᆊࣃ̙Ξ࿅ increase as a result of the increase in the estimated service 180 potential of the assets, the Bank shall reverse the impairment ̝ޢĂഴੵᑕ೩ЕԶᖞٕᝊዚ˭ڶயдϏᄮЕഴຫຫεଐྤ ࢬᆊࣃĄ loss to the extent that the carrying amount after the reversal would not exceed the carrying amount that would have been ӀिஐຫৈĄܧഴຫຫε̈́ഴຫਫ਼ᖼӀৈЕࠎ determined (net of amortization or depreciation) had no impairment loss been recognized for the assets in prior years. ᝋৈ Impairment loss (reversal) is classified as other gains andڌௐ36୧ௐ2ีௐ2ഠٙؠ၆۵ڱٽϹדăᙋ̱ losses other than interest income (expense). ᆊॾѣࢦ̂ᇆᜩְ̝ีĈדᙋٕ 1. 95 5 29 ѐ ͡ ͟ώҖ૱ચְ̢ଯ૱ચְӓሏநҖֹ F. Pursuant to Item 2, Paragraph 2, Article 36 ᖚᝋĄ of Security and Exchange Act, the incidenceܜְ 'ௐ5Ѩᓜॡְົՙᛉ:ώҖந Exerting Material Influence on Shareholdersب95ѐ5͡30͟ώҖௐ21 .2 Rights or Security Prices: ᖚચĂϤ૱ચְ̢ଯ૱ચ 1. On May 29, 2006, the managing director Cheng Ching WuܜӓሏᙜЇநְܜְ ᖚᝋĄ was elected by other managing directors to serve as theܜநҖְֹإְԠ acting chairman of the board. ௐ5Ѩְົՙᛉ:ώҖᓁགྷநౘب95ѐ11͡24͟ώҖௐ21 .3 2. On May 30, 2006, the 5th extraordinary meeting of the 21st ߌҋ95ѐ12͡1͟ᙜЇᖚચĂདЇౘஏҐࠎώҖᓁགྷந Board of Directors resolved: acting chairman Cheng Ching֚ ĂϠड़͟ഇܶგ፟ᙯ८ࣞޢϠड़Ą Wu resigned, and managing director Henry C.S. Kao was elected by other managing directors to serve as the acting 95ѐ11͡26͟Ğּ͟ٺڟૺұܜ95ѐ11͡27͟ώҖְ .4 chairman of the board. Җ˯Ą 3. On November 24, 2006, the 5th meeting of the 21st Boardז95ѐ11͡27͟ٺğೇᖚĂ֭ of Directors resolved: President Chen-Jau Chen resigned from his post effective from December 1st, and Julius Chen was hired as the new President with the effective date to be approved by the competent authority. 4. Chairman of the Bank Po-Shin Chang resumed his post on November 26, 2006 (a holiday) and reported to work on November 27, 2006. ᓁҖ઼̰̈́γ̶͚፟ၹ̶Ҷဦ Head Of¿ce & Branches ̶ࣖҖ LONDON BR. Җ ࠃՉᒧ̶Җ ৸ࡗ̶Җ̶ִڌ ܑ̋ٿ KUNSHAN REP. TOKYO BR. LOS ANGELES BR. NEW YORK BR. ࢶപ̶Җ ᓁҖ HONG KONG BR. CHB TAIWAN, R. O. C. Җ̶າΐ SINGAPORE BR. NULREPORT2006 ANNUAL œ ૄษ œ ˬࢦं œ ̥ຑ ษૄڌ œ Δˬࢦं œ œ ୶ͪ ࢦ œ ᛀ߷ˬڌ œ œ ˬࢦξ œ ૄษ œ Ҙˬࢦ œ ݑາఄ Ŗ έΔ œ ѱͤ ˾ڒ œ œ ϖ œ ݑˬࢦ œ ۾ œ ༄ޥ œ ݑब œ œ າఄ œ ̚ œ ݑ๕֎ ˾ڒڌ œ œ Δ̚ᗾœ ྮ œ ᗕ œˬ ڕ œ Δॿ œ ѯჴ ظœ œ ̚ᗾ œ ˿ݱ œ າ œ ځາ ॿ œ œ Ѝೇ Δາ ڒœ ं͕ œ ፘ œ œ Рј œ ˣᇇ œ ˬद ᜋآ œ œ າѻࡊጯડ ڌœ ᘲ œ າѻ œ ᛂ፫ 181 œ Δາѻ ڌœ ѻ œ ѻݑ œ œ ྮڌԂم œ ࡺॷ ᓁҖ œ གྷࡔથᓁ̳Φ ̂щדᒉຽొ ᙋ œ ࡿ྆ ཌྷܫ έΔ̶̳Φ œڌགྷࡔથדགྷࡔથ ᙋדᙋ έ̶̳̚Φ үຽ œ ̥ œ ܆ གྷࡔથ œדᙋ Ř ̂ϥ ྤੈ œ έΔ͵͕̚ ࡵῤ œ ͪ œ ๕ œڌ ݑέ̶̳̚Φ ᖳࣧ œ Ř œ Ւ౩ ܅ቷ œ ݑᖳ œ ˾ۤ ڌᏉຽચ̶Җ ݱܛœ έ̶̚Җ œ ͉π ઼ᅫ Ř ̂ၓ œ ሔ̄ œ Δέ̚ œ œ Ŗ έ̚ έΔ ̚૬ œ œ ̂և ݑέ̚ œ ंៃ œ œ ̼ œ ೇᎸ œ Δ͏ ౩പ œ ᙳप Ř œ ၓ̼ œ œ ڌं ѯڗ œ œŘ ༱ර ̚പ Ř œŘ າͪ œ ਨ͏ œ ֧ं œ œ സ ڒ̀ ⏬ Ř χຆ œ ᗕ œͪ œ œ ݑԸ ڒœ œŘ ࣶ ݑ͏ Ř œ œ ̋ڗ ܝϖπ œ œ ͪ྆ӫ Ҙ œ Ҙ͏ Δ͜ œ œ ڗҘ ܝࡿ œ Ҙᓲ Δ۾ œ œ ԍ έΔڌ Ř ͳΑ œ ˿ऱ œ ̱͜ œ ѻ̋ œ ϖሄ œ œ ͜ݑ Ř œ ۡ̂ ј œޙ Δപ œ ˯ྮ ڒ̂ œ œ έݑ Ř ਨസ œ Δလཌྷ œ လཌྷ œ ̂Т œ ̰സڌ œ ؼπ œ လཌྷ œ Ҙέݑ œ ϔϠ œ Ҙ̰സ œ œ സڌ έݑ າᒉ œ ̋̚Δྮ œڌ œ ݑέݑ œ œ œ Δέݑ ᓁొ̶Җ ݑപ œ ϖ œ ̚රྮ œ œ œ щݑ œ έݑ Ѝ ϖߋ œ ͢ߝ ઼ޙ œ ڌœ έ œ ݱ̰ ڒœ Р œ ၮ̋ œ ฯ œ œ ϓ͇ ྮڌщܜ œ ྮѻ œ ˛ኰ œ œ œ ̋ت ݑപࡊጯડ ܝڌ œ ฯ œڌ ڌލ ฯ œ œ œ ̚ϒ œ ΔԸ ៃṽ œ ᆂ̋ œ œ ̂൴ ܩݑฯ œ ሗэ œ Ο പڌ œ Δฯ œ œ ᙝ œŘڒ œ ˬϔ ڒ̚ œ າᎸ Ř ڒœ ݈ᗉ Ř ѻ œ ˝тྮ Ř ᗉщ œ ࢁฮ Ř प œ ̂ึ ŘͪӀ œ ౾ຑ œ ֘ݱ œŘ œ ޙᎸ Ř հ̜ གྷࡔથ˛ኰ̶̳Φ ဦϯĈדᙋ Ŗ ᓁҖ œ ̶Җ Ř Ᏹְ ᓁҖ̶͚̈́፟ၹ˘ᜓܑ DirectoryofHeadOf¿ce & Branches ઼̰ᒉຽಏҜ гӬ ྖ/็ৌ SWIFT DOMESTIC OFFICES ADDRESS TEL/FAX TLX ᓁҖĞᄂ̚ğ 40045 ᄂ̚ξ̚ડҋϤྮ˟߱38ཱཱིིĞ04ğ22222001 Head Of¿ceĞTaichungğ 38, Sec. 2, Tsu Yu Rd., Taichung40045, 40045, Taiwan Taiwanaiwan Ğ04ğ22272848 ᓁҖĞᄂΔğ 10412 ᄂΔξ̋̚ડ̋̚Δྮ˟߱57ཱཱིིĞ02ğ25362951 Head Of¿ceĞTaipeiğ 57, Sec. 2, Chung Shan N. Rd., Taipei10412, , Taiwan œ ᒉຽొ 40045 ᄂ̚ξ̚ડҋϤྮ˟߱38ཱཱིིĞ04ğ22230001 CCBCTWTP220 Business Department 38, Sec. 2, Tsu Yu Rd., Taichung40045, 40045, Taiwan Taiwanaiwan Ğ04ğ22231170 Ř έ̶̚Җ 40245 ᄂ̚ξݑડೇᎸྮ˟߱78ཱཱིིĞ04ğ22650011 Taichung Branch 78, Sec. 2, Fu Hsing Rd., Taichung40245, 40245, Taiwanaiwan Ğ04ğ22650101 Ř Δᄂ̶̚Җ 40354 ᄂ̚ξҘડᄂ̚പྮ˘߱6ཱཱིིĞ04ğ22011122 ̚ Pei-Taichung Branch 6, Sec. 1, Taichung Kang Rd., Taichung 40354, Taiwan Ğ04ğ22018400 ර ϔ œ ݑᄂ̶̚Җ 40250 ᄂ̚ξݑડᄂ̚ྮ102ཱཱིིĞ04ğ22243181 CCBCTWTP401 ઼ ˝ Nan-Taichung Branch 102, Taichung Rd., Taichung40250, 40250, Taiwan Taiwanaiwan Ğ04ğ22209684 ˩ ̣ Ř Δ͏̶Җ 40459 ᄂ̚ξΔડΔ͏ྮ10ཱཱིིĞ04ğ22322922 ѐ ą Peitun Branch 10, Peitun Rd., Taichung40459, 40459, Taiwanaiwan Ğ04ğ22351018 ѐ ಡ Ř ̚പ̶Җ 40759 ᄂ̚ξҘ͏ડᄂ̚പྮ˟߱1-16ཱཱིིĞ04ğ23271717 Chung-Kang Branch 1-16, Sec. 2, Taichung Kang Rd., Taichung 40759, Taiwan Ğ04ğ23271700 40667 447 04 22969966 182 Ř ͪ⏬̶Җ ᄂ̚ξΔ͏ડ͕͛ྮˬ߱ ཱཱིིĞğ Shuinan Branch 447, Sec. 3, Wen Hsin Rd., Taichung40667, Taiwanaiwan Ğ04ğ22961995 Ř ݑ͏̶Җ 40866 ᄂ̚ξݑ͏ડ͕͛ྮ˘߱306ཱཱིིĞ04ğ23220011 Nantun Branch 306, Sec. 1, Wen Hsin Rd., Taichung40866, Taiwanaiwan Ğ04ğ23208260 œ Ҙ͏̶Җ 40767 ᄂ̚ξҘ͏ડᄂ̚പྮˬ߱121ཱཱིིĞ04ğ23593435 CCBCTWTP933 Hsitun Branch 121, Sec .3, Taichung Kang Rd., Taichung 40767, Taiwan Ğ04ğ23591264 œ ૄษ̶Җ 20048 ૄษξ̥ຑડϜϣ֧ຑαྮ60ཱཱིིĞ02ğ24233933 CCBCTWTP410 Keelung Branch 60, Ai 4th Rd., Keelung20048, Taiwanaiwan Ğ02ğ24261673 ̥ຑ̶Җ 20042 ૄษξ̥ຑડԂ˟ྮ100ཱཱིིĞ02ğ24233941 Jenai Branch 100, Hsiao 2nd Rd., Keelung20042, Taiwanaiwan Ğ02ğ24278642 57ཱི1ሁሁĞ02ğ24233861ྮ˘ܫཌྷડܫษ̶Җ 20145 ૄษξૄڌ Tung-Keelung Branch 57, Hsin 1st Rd., Keelung20145, Taiwanaiwan Ğ02ğ24239760 ᜋξЍೇྮ18ཱཱིིĞ03ğ9352511آ ᜋ̶Җ 26043آ Ř Ilan Branch 18, Kuang Fu Rd., Ilan City,Ilan Hsien26043, Taiwanaiwan Ğ03ğ9329224 ᗉ̚ϒྮ194ཱཱིིĞ03ğ9551171ڌᜋᎩᘲآ Җ 26547̶ڌŘ ᘲ 194, Chung Cheng Rd., Lotung Town, Ilan Hsien26547, 26547, Lotung Branch Ğ03ğ9552786 Taiwanaiwan ᜋᎩᛂ፫ᗉ̋̚ྮ˘߱121ཱཱིིĞ03ğ9961116آ Ř ᛂ፫̶Җ 27041 121, Sec.1,ChungChung Shan Rd., Suao Town, Ilan Hsien27041, 27041, Suao Branch Ğ03ğ9962371 Taiwanaiwan ො: œ γ๗ؠಏҜ Ř෴γ။னด̈́ॠҖ͚ைຽચಏҜ Note: œ Foreign exchange units ŘForeign exchange dealership units ANNUAL REPORT2006 183 TLX SWIFT CCBCTWTP (023)479900 CHBANKIBD U.S. TELEX No. 214873 ็ৌ็ৌ็ৌ / / 25621919256219192562191925621919 25410452254104522541045225410452 25714717257147172571471725714717 25628753256287532562875325628753 25514256255142562551425625514256 25362951253629512536295125362951 25215447252154472521544725215447 25217855252178552521785525217855 25362951253629512536295125362951 CCBCTWTP212 25374460253744602537446025374460 25214873252148732521487325214873 23617211 23617211 23617211 23617211 CCBCTWTP501 23816585238165852381658523816585 23113791 23113791 23113791 23113791 23112853 23112853 23112853 23112853 27849821278498212784982127849821 CCBCTWTP527 27061940270619402706194027061940 27029400270294002702940027029400 23060201230602012306020123060201 23083413230834132308341323083413 23042141230421412304214123042141 23025300230253002302530023025300 23719271237192712371927123719271 23121417231214172312141723121417 25586271255862712558627125586271 CCBCTWTP500 25553451255534512555345125553451 25585151255851512558515125585151 25568821255688212556882125568821 25555121255551212555512125555121 CCBCTWTP505 25567172255671722556717225567172 25919113 25919113 25919113 25919113 CCBCTWTP506 25926402259264022592640225926402 27121311 27121311 27121311 27121311 CCBCTWTP523 27182123271821232718212327182123 27120379271203792712037927120379 25711241 25711241 25711241 25711241 CCBCTWTP508 25212861252128612521286125212861 ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ TEL/FAX ྖ 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ aiwan aiwan , Taiwan wan 12, Taiwan aiwan 412, Taiwan aiwan aiwan 10412, 10412, aiwan 10412, Taiwan 10412, Taiwan aiwan aiwan ሁ ሁሁሁሁĞ ሁሁሁሁሁ ሁሁሁሁሁĞ ሁሁሁሁሁሁሁĞ 10448, Taiwan 10369, Taiwan 10510, Taiwan aiwan 2222 12 1111 121212 555555 ཱཱཱིིིĞ 10046, Taiwan ཱཱཱིིིĞ ཱཱཱིིིĞ aiwan ཱཱཱིིི ཱི ཱཱཱིིི ཱཱིི ཱཱཱཱཱིིིིི ཱཱཱིིིĞ ཱཱཱིིིĞ ཱཱཱིིིĞ ཱཱཱིིིĞ aiwan ཱཱཱིིིĞ 10341, Taiwan 10682, Taiwan 5757 57 5757 57 57575757 2727 7171 1818 199199 54-154-1 111111 ཱཱཱཱཱིིིིིĞ 55, Taiwan 120120 ཱཱཱིིིĞ ཱཱཱིིིĞ 355, Taiwan 10844, Taiwan ཱཱཱིིིĞ 169-2169-2 123123123123 10355, Taiwan Rd.,Rd., Taipei Taipei 10448, 10448, Taiwan Taiwan гӬ 6868 304304 312312 10045, Taiwan ADDRESS ᄂΔξ̋̚ડ̋̚Δྮ˟߱ ᄂΔξ̋̚ડ̋̚Δྮ˟߱ ᄂΔξ̋̚ડ̋̚Δྮ˟߱ ᄂΔξ̋̚ડ̋̚Δྮ˟߱ᄂΔξ̋̚ડ̋̚Δྮ˟߱ᄂΔξ̋̚ડ̋̚Δྮ˟߱ ᄂΔξ̚ϒડࢦᇉݑྮ˘߱ ᄂΔξ̚ϒડᏊวྮ ᄂΔξ̂щડ̼ݑྮ˟߱ ᄂΔξ༱රડؠྮ ᄂΔξ༱රડఃЍྮ ᄂΔξ༱රડҘှݑྮ ᄂΔξ̂ТડؼπΔྮ˘߱ ᄂΔξ̂Тડ࢚̼ූ˘߱ ᄂΔξ̂ТડݑִҘྮᄂΔξ̂ТડݑִҘྮᄂΔξ̂ТડݑִҘྮ ᄂΔξ̂ТડࢦᇉΔྮˬ߱ α߱ྮڌડϔϠ̋ڗᄂΔξ ᄂΔξ̋̚ડ̋̚Δྮ˟߱ 12 55 412 355 aiwan aiwan 10412 2nd Fl., 57, Sec .2, Chung Shan N. Rd., Taipei 10412, Taiwan 10412 10412 12th Fl., 57, Sec.2, ChungTaiwan Shan N. Rd., Taipei 10412, 10412 10046 10045 10682 10852 10860 10844 10341 10344 10355 10369 10510 10448 Branch 1st Fl., 57, Sec. 2, Chung Shan N. Rd., Taipei 10412, Taiwan ઼̰ᒉຽಏҜ DOMESTIC OFFICES International Banking Division ܫ Central Branch Trust Division ઼ᅫܛᏉຽચ̶Җ Offshore Banking Branch 5th Fl., 57, Sec.2, Chung Shan N. Rd., Taipei 10412 Taipei Branch 27, Sec. 1, Chung King S. Rd., Taipei 10046, Taiwan Chengnei Branch 68, Heng Yang Rd., Taipei 10045, Taiwan Tunhwa Branch༱ර̶Җ 71, Sec. 2,Tun Hwa S. Rd., Taipei 10682, Taiwan Wanhua Branch 304, Kang Ting Rd., Taipei 10852, Taiwan Shuangyuan Branch 312, Chu Kuang Rd., Taipei 10860, Taiwan Hsimen Branch 169-2, Hsi Ning S. Rd., Taipei 10844, Taiwan Peimen Branch 18, Sec. 1, Yen Ping N. Rd., Taipei 10341, Taiwan Yunglo Branch 120, Sec. 1, Di Hwa St., Taipei 10344, Taiwan Chiencheng Branch 123, Nanking W. Rd., Taipei 10355, Taiwan Tatung Branch 199, Sec. 3, Chung King N. Rd., Taipei 10369, Taiwan Min-Sheng Branch 54-1, Sec. 4, Min Sheng E. Rd., Taipei 10510, Taiwan Chungshan North Rd.Branch 111, Sec. 2, Chung Shan N. Rd., Taipei 10448, Tai œ ઼ᅫᒉྻ Ř ᓁొ̶Җ œ ᄂΔ̶Җ Ř ݱ̶̰Җ œ ̶̼Җ Ř ᗕ̶Җ Ř Ҙܝ̶Җ œ Δܝ̶Җ Ř ϖሄ̶Җ œ ޙј̶Җ œ ̂Т̶Җ œ ϔϠ̶Җ œ ̋̚Δྮ̶Җ ઼̰ᒉຽಏҜ гӬ ྖ/็ৌ SWIFT DOMESTIC OFFICES ADDRESS TEL/FAX TLX Δྮ609ཱཱིིĞ02ğ25950551ڒŘ Ѝ̶Җ 10460 ᄂΔξ̋̚ડ Ching-Kuang Branch 609,Lin Sen N. Rd., Taipei 10460, Taiwan Ğ02ğ25974734 œ ޙ̶઼Җ 10657 ᄂΔξ̂щડ̥ຑྮˬ߱136ཱི1F Ğ02ğ27033737 CCBCTWTP528 Chien-Kuo Branch 1F.,136,136, Sec. 3, Jen Ai Rd., Taipei10657, , Taiwan Ğ02ğ27081145 ߱98ཱཱིིĞ02ğ25626151 CCBCTWTP300˟ྮڌҖ 10457 ᄂΔξ̋̚ડݑ̶ִڒœ Р Chilin Branch 98, Sec. 2, Nanking E. Rd., Taipei10457, Taiwanaiwan Ğ02ğ25315616 ߱23-1ཱཱིིĞ02ğ25230739 CCBCTWTP971˘ྮڌщܜҖ 10441 ᄂΔξ̋̚ડ̶ྮڌщܜ œ Chang-An E.Rd.Branch 23-1, Sec. 1, Chang An E. Rd., Taipei10441, Taiwanaiwan Ğ02ğ25230172 ݑྮ˟߱33ཱིĞ02ğ23921241̋ܛҖ 10642 ᄂΔξ̂щડ̶ܝڌ Ř ̚ Tungmen Branch 33,, Sec. 2, King-Shan S. Rd., Taipei 10642, Taiwanaiwan Ğ02ğ23927678 ර ݑྮ˘߱47ཱཱིིĞ02ğ23560000̋ܛϔ Ř ̚ϒ̶Җ 10056 ᄂΔξ̚ϒડ ઼ ˝ Chung-Cheng Branch 47, Sec. 1, King-Shan S. Rd., Taipei10056, Taiwanaiwan Ğ02ğ23570780 ˩ ̣ Ř Οܩ̶Җ 10643 ᄂΔξ̂щડᘲྮ˟߱25ཱཱིིĞ02ğ23517211 ѐ ą Kuting Branch 25, Sec. 2, Roosevelt Rd., Taipei10643, Taiwanaiwan Ğ02ğ23928702 α߱164ཱཱིིĞ02ğ27713151 CCBCTWTP520ྮڌԂمҖ 10688 ᄂΔξ̂щડ̶ྮڌԂم ѐ œ ಡ Chung-Hsiao Tung Lu 164, Sec. 4,Chung Hsiao E. Rd., Taipei 10688, Taiwan Ğ02ğ27311249 Branch ߱1-2ཱཱིིĞ02ğ27682322̣ྮڌԂمཌྷડܫŘ ϖߋ̶Җ 11071 ᄂΔξ 184 Yung-Chun Branch 1-2, Sec. 5, Chung Hsiao E. Rd., Taipei 11071, Taiwan Ğ02ğ27654923 ߱177ཱཱིིĞ02ğ23213214 CCBCTWTP513˘ྮڌœ ̂щ̶Җ 10644 ᄂΔξ̂щડπ Taan Branch 177, Sec. 1, Ho Ping E. Rd., Taipei10644, 10644, Taiwan Taiwanaiwan Ğ02ğ23943842 œ ܫཌྷ̶Җ 10681 ᄂΔξ̂щડܫཌྷྮα߱155ཱཱིིĞ02ğ27039081 CCBCTWTP521 Hsin-Yi Branch 155, Sec. 4, Hsin Yi Rd., Taipei10681, Taiwanaiwan Ğ02ğ27021433 Ğ02ğ2703910139101 Ř ̶̥Җ 10685ᄂΔξ̂щડ̥ຑྮα߱31ཱཱིིĞ02ğ27514066 Jen-Ho Branch 31, Sec. 4, Jen Ai Rd., Taipei10685, 10685, Taiwanaiwan Ğ02ğ27763186 œ ᄂΔ͵̶͕̚Җ 11012 ᄂΔξܫཌྷડૄษྮ˘߱333ཱི3ሁሁĞ02ğ27203101 CCBCTWTP526 Taipei World Trade Center 3rd Fl.,333, Sec. 1, Keelung Rd., Taipei11012, 11012, Taiwanaiwan Ğ02ğ27576385 Branch ߱225ཱཱིིĞ02ğ27153535 CCBCTWTP514ˬྮڌҖ 10488 ᄂΔξ̋̚ડݑ̶ִڌœ ݱ Chengtung Branch 225, Sec. 3, Nanking E. Rd., Taipei10488, Taiwanaiwan Ğ02ğ27123175 Ğ02ğ27134607 œ ̚૬̶Җ 10492 ᄂΔξ̋̚ડˣᇇྮ˟߱201ཱིĞ02ğ27312211 CCBCTWTP515 Chunglun Branch 201,, Sec. 2, Bade Rd., Taipei10492, 10492, Taiwan Taiwanaiwan Ğ02ğ27529492 ડೇᎸΔྮ367ཱཱིིĞ02ğ27173222 CCBCTWTP525̋ڗœ ೇᎸ̶Җ 10543 ᄂΔξ Fu-Hsing Branch 367, Fu Hsing N. Rd., Taipei 10543, Taiwan Ğ02ğ27187905 ѯྮ261ཱཱིིĞ02ğ25024923 CCBCTWTP975ڗѯ̶Җ 10483 ᄂΔξ̋̚ડڗ œ Sung-Chiang Branch 261, Sung Chiang Rd., Taipei10483, Taiwanaiwan Ğ02ğ25024931 ANNUAL REPORT2006 185 TLX SWIFT ็ৌ็ৌ็ৌ / / 7904567 28822354288223542882235428822354 CCBCTWTP517 28829151288291512882915128829151 28333232283332322833323228333232 28333131283331312833313128333131 27625242276252422762524227625242 CCBCTWTP519 27692414276924142769241427692414 27639611 27639611 27639611 27639611 27697636276976362769763627697636 25704567257045672570456725704567 CCBCTWTP522 25702577257025772570257725702577 27978966279789662797896627978966 CCBCTWTP979 27971399279713992797139927971399 25337861253378612533786125337861 25334835253348352533483525334835 26590766265907662659076626590766 26590767265907672659076726590767 27904567279045672790456727904567 879260608792606087926060 27833456278334562783345627833456 CCBCTWTP980 27885313278853132788531327885313 26558683 26558169 86617377866173778661737786617377 86617399866173998661739986617399 28968585 28968282 26947878269478782694787826947878 26941292269412922694129226941292 26219998262199982621999826219998 26255235262552352625523526255235 24972860249728602497286024972860 24972848249728482497284824972848 29733450297334502973345029733450 29752527297525272975252729752527 ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğ ğ ğğğ ğğğ ğ ğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ TEL/FAX ྖ 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 02 02 0202 0202 02 02 0202 0202 0202 0202 0202 0202 0202 0202 Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ , 03, wan aiwan aiwan 22158, aiwan 11492, Taiwan 11490, Taiwan aiwan aiwan aiwan aiwan aiwan aiwan aiwan 11155, Taiwan 1F1F1F 1F1F ཱཱཱིིིĞ ཱཱཱིིིĞ ཱཱཱིིིĞ ሁĞ ཱཱཱིིིĞ 9 ཱཱཱིིིĞ 1 10569, Taiwan 10595, Taiwan ཱཱཱིིི ཱཱིི aiwan ཱཱཱིིིĞ ཱཱཱིིིĞ ཱཱཱིིིĞ ཱཱཱིིིĞ 213213 126126 6767 , Taipei Hsien 22158, 109109 ཱི 8888 262626 26 11475, Taiwan 6 11510, Taiwan 3838 8989 11664, Taiwan 4848 4848 10463, Taiwan ཱཱཱིིིĞ ཱཱཱིིིĞ ޒޒޒ ཱཱཱིིིĞ 11163, Taiwan City, Taipei Hsien 22158, ޒ ཱཱཱིིིĞ ཱཱཱིིིĞ гӬ 589589 9393 165165 513513 100100 2121 452 11063, Taiwan ADDRESS E. Rd.,, Neihu, Taipei 11490, Taiwan HsichihHsichih City, City, Taipei Taipei Hsien Hsien 22158, 22158, Min Chuan E. Rd.,, Neihu, Taipei 11490, Taiwan , Min Chuan E. Rd.,, Neihu, Taipei 11490, Taiwan 6, Min Chuan E. Rd.,, Neihu, Taipei 11490, Taiwan aiwan aiwan aiwan ̣߱ྮڌડݑִ̋ڗᄂΔξ α߱ྮڌડݑִ̋ڗᄂΔξ ᄂΔξ̋̚ડΔщྮ ᄂΔᎩѱͤξ̚Ꮈྮ ᄂΔᎩ୶ͪᗉ̋̚Δྮ˘߱ ፶ྮˬ߱ځᗉ۾ᄂΔᎩ༄ ᄂΔᎩˬࢦξࢦາྮ˘߱ ᄂΔξܫཌྷડϖРྮ ᄂΔξ̰സડ༄Ѝྮ ᄂΔξ̰സડ͛ᇇྮ ̱߱ྮڌᄂΔξ̰സડϔᝋ ᄂΔξݑപડݑപྮˬ߱ ᄂΔξݑപડડූˬཱི˟ሁ̝ˬཱི Ğ ᄂΔξ͛̋ડ͢າྮˬ߱ ડᇇྮڒᄂΔξ̀ ડ̋̚Δྮ̱߱ڒᄂΔξ̀ ᄂΔξΔԸડ̂ຽྮ , Sec.6, Min Chuan E. Rd.,, Neihu, Taipei 11490, Taiwan 26, Lane 513, Juikuang Rd., Neihu, Taipei 11492, Taiwan 09, Sec.6, Min Chuan E. Rd.,, Neihu, Taipei 11490, Taiwan aiwan 11163 11155 11063 10569 10595 11492 10463 11475 11490 11510 Taiwan 11503 2F.-3, No.3, Yuanqu St., Nangang District, Taipei City 11503, 11664 No.6, Lane 452, Daye Rd;Taiwan,R.O.C. Bei Tou District, Taipei City 11268, 11268 22158 93, Chung Hsing Rd., HsichihTaiwan City, Taipei Hsien 22158, 25174 67, Sec. 1 Chung Shan25174, N. Taiwan Rd., Tanshui Town, Taipei22441 Hsien 38, Sec .3, Ming Deng22441, Rd., Taiwan Juifang Town, Taipei Hsien 24148 89, Sec. 1, Chunghsin Rd.,24148, Sanchung Taiwan City, Taipei Hsien ઼̰ᒉຽಏҜ -Hu Branch 109, Sec.6, Min Chuan E. Rd.,, Neihu, Taipei 11490, Taiwan DOMESTIC OFFICES Shihlin Branch 21, Fu Teh Rd., Shihlin, Taipei 11163, Taiwan Tienmu Branch 88, Sec. 6, Chung Shan N. Rd., Taipei 11155, Taiwan Sungshan Branch 165, Yung Chi Rd., Taipei 11063, Taiwan Hsi-Sung Branch 213, Sec. 5, Nanking E. Rd., Taipei 10569, Taiwan Tung-Taipei Branch 126, Sec. 4, Nanking E. Rd., Taipei 10595, Taiwan Hsi-Neihu Branch 1F.,26, Lane 513, Juikuang Rd., Neihu, Taipei 11492, Tai Tachih Branch 589, Pei An Rd., Tachih, Taipei 10463, Taiwan Nei-Hu Branch 100, Wen Teh Rd., Neihu, Taipei 11475, Taiwan Tung-Hu Branch Nankang Branch 48, Sec. 3, Nankang Rd., Taipei 11510, Taiwan Nankang Science Industrial Park Branch Mucha Branch 48, Sec. 3, Mu Hsin Rd., Taipei 11664, Taiwan Bei Tou Branch Hsi-Chih Branch Җ̶۾Tanshui Branch ༄ Juifang Branch Sanchungpu Branch Җ̶ڒ̀ œ Ř ͇ϓ̶Җ Җ̶̋ڗ œ Җ̶ڗŘ Ҙ ᄂΔ̶Җڌ œ œ Ҙ̰സ̶Җ Ř ̶̂ۡҖ Ř ̰സ̶Җ സ̶Җڌ Ř œ ݑപ̶Җ Ř ݑപࡊጯડ̶Җ Ř ͢ߝ̶Җ Ř ΔԸ̶Җ Ř ѱ̶ͤҖ Ř ୶̶ͪҖ Ř ˬࢦं̶Җ ઼̰ᒉຽಏҜ гӬ ྖ/็ৌ SWIFT DOMESTIC OFFICES ADDRESS TEL/FAX TLX Ř Δˬࢦं̶Җ 24147 ᄂΔᎩˬࢦξϒཌྷΔྮ65ཱཱིིĞ02ğ29823110 65, Cheng Yi N. Rd., Sanchung City, Taipei Hsien24147, Pei-Sanchungpu Branch Ğ02ğ29848411 Taiwanaiwan ࢦ̶Җ 24146 ᄂΔᎩˬࢦξϒཌྷΔྮ303ཱཱིིĞ02ğ29821100 CCBCTWTP561ˬڌ œ 303, Cheng Yi N. Rd., Sanchung City, Taipei Hsien24146, Tung-Sanchung Branch Ğ02ğ29883597 Taiwanaiwan Ř Ҙˬࢦ̶Җ 24161 ᄂΔᎩˬࢦξࢦวྮ˟߱22ཱཱིིĞ02ğ29820221 22, Sec. 2, Chung Yang Rd., Sanchung City, Taipei Hsien Hsi-Sanchung Branch Ğ02ğ29820358 24161, Taiwanaiwan Ř ݑˬࢦ̶Җ 24143 ᄂΔᎩˬࢦξ̚ϒݑྮ82ཱཱིིĞ02ğ29771234 82, Chung Cheng S. Rd., Sanchung City, Taipei Hsien Nan-Sanchung Branch Ğ02ğ29769550 24143, Taiwanaiwan ̚ ර Ř ˬྮ̶Җ 24154 ᄂΔᎩˬࢦξˬྮα߱368ཱཱིིĞ02ğ22871441 ϔ 368, Sec. 4, San Ho Rd., Sanchung City, Taipei Hsien24154, 24154, ઼ San Ho Rd. Branch Ğ02ğ22865817 ˝ Taiwanaiwan ˩ Ř ᛀ߷̶Җ 24760 ᄂΔᎩᛀ߷ξˬϔྮ23ཱཱིིĞ02ğ22851000 ̣ ѐ Luchou Branch 23, San Min Rd., LuchouCity, , Taipei Hsien24760, 24760, Taiwan Taiwanaiwan Ğ02ğ22850518 ą ξΔາྮ˘߱135ཱཱིིĞ02ğ29141650ظҖ 23147ᄂΔᎩາ̶ظѐ Ř າ ಡ 135, Sec. 1, Pei Hsin Rd., Hsintien City, Taipei Hsien23147, Hsintien Branch Ğ02ğ29141656 Taiwanaiwan ξΔາྮ˟߱47ཱཱིིĞ02ğ29131071 CCBCTWTP562ظœ Δາ̶Җ 23143 ᄂΔᎩາ 186 47, Sec. 2, Pei Hsin Rd., Hsintien City, Taipei Hsien23143, 23143, Pei Hsin Branch 02 29110251 Taiwanaiwan Ğ ğ ξϔᝋྮ98ཱཱིིĞ02ğ22189001ظŘ Рј̶Җ 23141 ᄂΔᎩາ 98, Min Chuan Rd., Hsintien City, Taipei Hsien23141, Chicheng Branch 02 22180542 Taiwanaiwan Ğ ğ Ř ϖ̶Җ 23444 ᄂΔᎩϖξϖྮ˟߱69ཱཱིིĞ02ğ29243334 69, Sec. 2, Yung Ho Rd., Yungho City, Taipei Hsien23444, Yungho Branch 02 29235245 Taiwanaiwan Ğ ğ Ř ̶Җ 23449 ᄂΔᎩϖξྮ139ཱཱིིĞ02ğ29221171 Fuho Branch 139, Fu Ho Rd., Yungho City, Taipei Hsien23449, Taiwanaiwan Ğ02ğ29254971 œ ̶̚Җ 23575 ᄂΔᎩ̚ξ̚ྮ182ཱཱིིĞ02ğ22492711 CCBCTWTP564 182, Chung Ho Rd., Chungho City, Taipei Hsien23575, Chungho Branch 02 22452337 Taiwanaiwan Ğ ğ Ř ᗕ̶Җ 23552 ᄂΔᎩ̚ξ̚ϒྮ801ཱཱིིĞ02ğ22259988 801, Chung Cheng Rd., Chungho City, Taipei Hsien23552, 23552, Shuangho Branch 02 22252821 Taiwanaiwan Ğ ğ Ř ݑ๕֎̶Җ 23569 ᄂΔᎩ̚ξഀາූ338ཱཱིིĞ02ğ29492345 Nanshih Chiao Branch 338, Jing Hsin St., Chungho City, Taipei Hsien23569, Taiwanaiwan Ğ02ğ29491177 œ າఄ̶Җ 24242 ᄂΔᎩາఄξາྮ119ཱཱིིĞ02ğ29937100 CCBCTWTP555 119, Hsin Tai Rd., Hsinchuang City, Taipei Hsien24242, 24242, Hsinchuang Branch 02 29969440 Taiwanaiwan Ğ ğ ݑາఄ̶Җ 24257 ᄂΔᎩາఄξ̚ϒྮ657̝1ཱིĞ02ğ290665999066599 657-1,Chung1,ChungChung Cheng Rd., Hsinchuang City, Taipei Hsien Nan-Hsinchuang Branch 02 290852529085252 24257, Taiwanaiwan Ğ ğ ANNUAL REPORT2006 187 TLX SWIFT ็ৌ็ৌ็ৌ / / 29967137299671372996713729967137 29978513299785132997851329978513 26010711 26010711 26010711 26010711 CCBCTWTP968 26010716260107162601071626010716 26813621268136212681362126813621 26821787268217872682178726821787 29628161296281612962816129628161 CCBCTWTP557 29546254295462542954625429546254 29619181296191812961918129619181 29530154295301542953015429530154 22591001225910012259100122591001 22526591225265912252659122526591 22691155 22691155 22691155 22691155 CCBCTWTP928 22691153 22691153 22691153 22691153 26711261 26711261 26711261 26711261 26732421267324212673242126732421 3346130334613033461303346130 CCBCTWTP570 3346136334613633461363346136 3711222 3711777 3320743332074333207433320743 3213666321366632136663213666 3213377321337732133773213377 3384238338423833842383384238 3975555397555539755553975555 3181150 4252101425210142521014252101 CCBCTWTP571 4253601425360142536014253601 4636688463668846366884636688 4352476435247643524764352476 4941571494157149415714941571 4942100494210049421004942100 ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğ ğ ğğğ ğğğ ğğğ ğğğ ğğğ ğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ TEL/FAX ྖ 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0202 0303 0303 03 03 0303 0303 0303 0303 0303 03 0303 0303 0303 0303 0303 0303 Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ 22047, 33041, 32065, 32041, , Taiwan 32447, 24250, 33054, 23741, 24444, Taiwan , Taipei Hsien City, Taipei Hsien ཱཱཱིིིĞ ཱིĞ ཱཱཱིིིĞ ཱཱཱིིིĞ ཱཱཱིིིĞ ཱིĞ ཱཱཱིིིĞ ཱཱཱིིིĞ 135135 2222 99 4545 77 6262 135 ཱཱཱིིིĞ ཱཱཱིིིĞ ཱཱཱིིིĞ ཱཱཱིིིĞ ཱཱཱིིིĞ ཱཱཱིིིĞ ཱཱཱིིིĞ 235 ཱཱཱིིིĞ гӬ 245245 4646 8989 7373 189189 9595 155155 22 ADDRESS aiwan aiwan aiwan aiwan aiwan aiwan ᄂΔᎩາఄξޥྮ ྮ˾ڒฏ˾ڒᄂΔᎩ ξ̋̚ྮ˘߱ڒᄂΔᎩፘ ξ̋̚ྮ˘߱ڕᄂΔᎩ ξ̼͛ྮ˟߱ڕᄂΔᎩ ᄂΔᎩ˿ݱξ̚δྮˬ߱ ᄂΔᎩˬदᗉ̼͛ྮ ॿᎩॿξ̚ϒྮ ॿᎩॿξϖщྮ ॿᎩᛀѻฏݑबྮ˟߱ ॿᎩᐸ̋ฏೇᎸ˘ྮ ॿᎩ̚ᗾξ̚ϒྮ ԂྮمॿᎩ̚ᗾξ ԂྮمॿᎩπᗉξ ξ̋̚ྮ˟߱ڕᄂΔᎩ ॿᎩˣᇇξ̬ုྮ˟߱ Fu Hsing 1st Rd, Kueishan Hsiang, Taoyuan Hsien aiwan aiwan aiwan aiwan aiwan aiwan aiwan aiwan 24250 Taiwan 245, Sy Yuan Rd., Hsinchuang City, Taipei Hsien 24250, 24444 23844 135, Sec. 1, Chung Shan Rd., Shulin City, Taipei Hsien 23844, Taiwan 22063 22, Sec. 1, Chung22063, Shan Taiwan Rd., Panchiao City, Taipei Hsien 22067 62, Sec. 2, Chung22067, Shan Taiwan Rd., Panchiao City, Taipei Hsien 22047 9, Sec. 2, WenTaiwan Hua Rd., Panchiao City, Taipei Hsien 22047, 23671 45, Sec. 3, Chung23671, Yang Taiwan Rd., Tucheng City, Taipei Hsien 23741 89, Wen Hwa Rd.,Taiwan Sanhsia Town, Taipei Hsien 23741, 33041 73, Chung Cheng Rd., Taoyuan City, Taoyuan Hsien 33041, Taiwan 33445 No.135, Sec.2, Jieshou Rd; Bade33445, City, Taoyuan Taiwan, County R.O.C 33054 189, Yung An Rd., Taoyuan City, Taoyuan Hsien 33054, 7, Sec. 2, Nan Kan33855, Rd., Taiwan Luchu Hsiang, Taoyuan Hsien Taiwan 33855 33375 235, Fu Hsing 1st Rd,33375, Kueishan Taiwan Hsiang, Taoyuan Hsien 32041 Taiwan 95, Chung Cheng Rd., Chungli City, Taoyuan Hsien 32041, 32065 Taiwan 155, Chung Hsiao Rd., Chungli City, Taoyuan Hsien 32065, 32447 2, Chung Hsiao Rd., Pingchen City, Taoyuan Hsien 32447, Taiwan ઼̰ᒉຽಏҜ DOMESTIC OFFICES Sy Yuan Branch Linkou Branch 46, Lin Kou Rd., Linkou Hsiang, Taipei Hsien 24444, Taiwan Shulin Branch Panchiao Branch Kuang-Fu Branch Chiang Tsui Branch Tucheng Branch Sanhsia Branch Taoyuan Branch ˣᇇ̶Җ Ba De Branch Pei-Taoyuan Branch Nankan Branch ݑब̶Җ Tung-Linkou Branch Chungli Branch Pei-Chungli Branch Hsin-Ming Branch Ř ޥ̶Җ Җ̶˾ڒ œ Җ̶ڒŘ ፘ ̶Җڕ œ Ř Ѝೇ̶Җ Ř ѯჴ̶Җ œ ˿ݱ̶Җ Ř ˬद̶Җ œ ॿ̶Җ Ř Δॿ̶Җ Җ̶˾ڒڌ Ř œ ̚ᗾ̶Җ Ř Δ̚ᗾ̶Җ Җ̶ځŘ າ ઼̰ᒉຽಏҜ гӬ ྖ/็ৌ SWIFT DOMESTIC OFFICES ADDRESS TEL/FAX TLX Ř ̶Җ 32643 ॿᎩᗉ̂јྮ158ཱཱིིĞ03ğ4783391 158, Ta Cheng Rd., Yangmei Town, Taoyuan Hsien32643, 32643, Yangmei Branch Ğ03ğ4754930 Taiwanaiwan ं̶͕Җ 32654 ॿᎩᗉ̚Ꮈྮ82ཱཱིིĞ03ğ4824935 82, Chung Hsin Rd., Yangmei Town, Taoyuan Hsien32654, 32654, Puhsin Branch Ğ03ğ4828924 Taiwanaiwan Ř າѻ̶Җ 30051 າѻξ̚ϒྮ63ཱཱིིĞ03ğ5253151 Hsinchu Branch 63, Chung Cheng Rd., Hsinchu 30051, Taiwanaiwan Ğ03ğ5263840 ߱110ཱཱིིĞ03ğ5339651˟ྮ̂ڌŘ Δາѻ̶Җ 30054 າѻξ Pei-Hsinchu Branch 110, Sec. 2, Tung Ta Rd., Hsinchu30054, 30054, Taiwan Taiwanaiwan Ğ03ğ5339460 5ཱི2ሁሁĞ03ğ5770780 CCBCTWTP575ྮ̱ڌœ າѻࡊጯડ̶Җ 30077 າѻξࡊጯ̍ຽડ̍ຽ ̚ ර Hsinchu Science-based 2nd Fl., 5, Industry E. Rd. VI., Science-based Industrial Park, ϔ Ğ03ğ5770996 ઼ IndustrialPark Branch Hsinchu30077, 77,, Taiwan ˝ ˩ ߋྮ˟߱43ཱིĞ03ğ5962280ܜᗉڌҖ 31047 າѻᎩѻ̶ڌŘ ѻ ̣ ѐ 43,3,, Sec. 2, Chang Chun Rd., Chutung Town, Hsinchu Hsien ą Chutung Branch Ğ03ğ5958365 ѐ 31047, Taiwanaiwan ಡ Ř ࡺॷ̶Җ 36049 ࡺॷᎩࡺॷξ̚ϒྮ636ཱཱིིĞ037ğ326455 636, Chung Cheng Rd., Miaoli City, Miaoli Hsien36049, Miaoli Branch Ğ037ğ334590 Taiwanaiwan 188 Ř ࡿ̶྆Җ 35843 ࡺॷᎩࡿ྆ᗉࠎ̳ྮ35ཱཱིིĞ037ğ861501 Yuanliuanli Branch 35,Wei Kong Rd., Yuanli Town, Miaoli Hsien 35843, Taiwan Ğ037ğ869242 Ř ѻݑ̶Җ 35047 ࡺॷᎩѻݑᗉᒖξྮ˟߱110ཱི1ă2ሁĞ037ğ551751 1st & 2nd Fl., No.110, Sec. 2, Huanshi Rd., Zhunan Town, Zhunan Branch Miaoli œ ̂ϥ̶Җ 43741 ᄂ̚Ꭹ̂ϥᗉึ͇ྮ405ཱཱིིĞ04ğ26878711 CCBCTWTP581 405, Shun Tien Rd., Tachia Town, Taichung Hsien43741, 43741, Tachia Branch Ğ04ğ26878754 Taiwanaiwan Ř ̶ͪҖ 43654 ᄂ̚Ꭹͪᗉ̋̚ྮ196ཱཱིིĞ04ğ26225151 196, Chung Shan Rd., Chingshui Town, Taichung Hsien Chingshui Branch Ğ04ğ26227461 43654, Taiwanaiwan Ř Ւ౩̶Җ 43353 ᄂ̚ᎩՒ౩ᗉՒϣྮ52ཱིĞ04ğ26358599 52,, Sha Tien Rd., Shalu Town, Taichung Hsien43353, 43353, Shalu Branch Ğ04ğ26358577 Taiwanaiwan Ř ̂և̶Җ 43242 ᄂ̚Ꭹ̂ևฏՒϣྮ˟߱780ཱི1ă2ሁĞ04ğ26983711 1st & 2nd Fl.No.780, 780,, Sec. 2 Sha Tien Rd.,Tatu Hsiang Tatu Branch Ğ04ğ26983719 Taichung Hsien43242, Taiwanaiwan œ ᖳ̶ࣧҖ 42056 ᄂ̚Ꭹᖳࣧξ̚ϒྮ220ཱཱིིĞ04ğ25269191 CCBCTWTP583 220, Chung Cheng Rd., Fengyuan City, Taichung Hsien Fengyuan Branch Ğ04ğ25246694 42056, Taiwanaiwan ݑᖳ̶Җ 42050 ᄂ̚Ꭹᖳࣧξ̋̚ྮ176ཱཱིིĞ04ğ25261172 176, Chung Shan Rd., Fengyuan City, Taichung Hsien Nan-Feng Branch Ğ04ğ25253775 42050, Taiwanaiwan ANNUAL REPORT2006 189 TLX SWIFT ็ৌ็ৌ็ৌ / / 2338101233810123381012338101 2353116 2353116 2353116 2353116 2983989298398929839892983989 2772121277212127721212772121 2770375277037527703752770375 252433925243392524339 2226171222617122261712226171 2235855223585522358552235855 2983983298398329839832983983 2643175264317526431752643175 2643179264317926431792643179 2520288252028825202882520288 252026625202662520266 2523103252310325231032523103 252905025290502529050 2522960252296025229602522960 25322234253222342532223425322234 25322035253220352532203525322035 25877160258771602587716025877160 25884371258843712588437125884371 23393567233935672339356723393567 23325941233259412332594123325941 22736789227367892273678922736789 22737890227378902273789022737890 7242101724210172421017242101 CCBCTWTP600 7256294725629472562947256294 8590220859022085902208590220 859078485907848590784 7773311 7773311 7773311 7773311 7777447777744777774477777447 ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ TEL/FAX ྖ 0404 0404 0404 0404 0404 0404 0404 0404 049049 049049 049049 049049 049049 049049 049049 049049 049049 049049 049049 0404 0404 049049 049049 049049 049049 049049 0404 0404 0404 0404 Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ aiwan 42343, aiwan 55747, 50046, 55343, 41143, 54242, Taiwan 54555, Taiwan ཱིĞ ཱིĞ ཱིĞ ཱིĞ 72 337 147 282 ཱིĞ ཱཱཱིིིĞ ཱཱཱིིིĞ 199 7272 ཱཱཱིིིĞ ཱཱཱིིིĞ ཱཱཱིིིĞ ཱཱཱིིིĞ ཱཱཱིིིĞ ཱཱཱིིིĞ ཱཱཱིིིĞ ཱཱཱིིིĞ гӬ 456456 900900 2323 144144 169-1169-1 7373 5757 8989 137137 aiwan aiwan aiwan ADDRESS ,Taiwan 50241, Taiwan 50241, Taiwan 50245, Taiwan 50243 ,Taiwan aiwan aiwan aiwan aiwan ᄂ̚Ꭹሔ̄ฏ̋̚ྮ˟߱ ๕ᗉᖳ๕ྮڌᄂ̚Ꭹ ᄂ̚Ꭹᙳपฏ̚ϒྮ ݑԸᎩਨ͏ᗉπූ ݑԸᎩݑԸξၓݑྮ˟߱ ݑԸᎩ֧ͪฏϔᝋྮ ݑԸᎩѻ̋ᗉѻ̋ྮ ၓ̼Ꭹ܆ฏ̚૬Յ̂ၓྮ˟߱ ݑԸᎩं֧ᗉҘྮ ၓ̼Ꭹၓ̼ξπྮ Յၓݑྮα߱ڒฏѻ܆ၓ̼Ꭹ ਨྮ˟߱܆ฏۤ˾Յ܆ਨྮ˘߱ ၓ̼Ꭹ܆ฏလᎸՅ܆ၓ̼Ꭹ ᄂ̚Ꭹ͉πξϖᖳྮ 42745, Taiwan ၓ̼Ꭹ౩പᗉ̋̚ྮ , Sec. 2, Chung Shan Rd., Tantzu Hsiang, Taichung aiwan aiwan aiwan aiwan aiwan 42745 199, Sec. 2, Chung ShanHsien Rd., 42745, Tantzu Taiwan Hsiang, Taichung 42343 456, Feng Shih Rd., TungshihTaiwan Town, Taichung Hsien 42343, 41341 900, Chung Cheng Rd., Wufeng41341, Hsiang, Taiwan Taichung Hsien 41143 89, Yung Feng Rd., Taipin City, Taichung Hsien 41143, Taiwan 54242 54063 55343 144, Min Chyuan Rd., Shuili Hsiang, Nantou Hsien 55343, Taiwan 55747 282, Sec. 2, Fen TsaoChanghwa Rd, Hsien Shehkou 50241, Tsun, Taiwan Fenyuan Hsiang, 50243 54555 72, Sec. 2, Chang Nan54063, Rd., Taiwan Nantou City, Nantou Hsien 169-1, Chushan Rd., Chushan Town, Nantou Hsien 55747, Taiwan 50046 57, Ho Ping Rd., Changhwa City, Changhwa Hsien 50046, Taiwan 50241 337, Sec. 4, Chang NanChanghwa Rd, Hsien Chulin 50241, Tsun, Taiwan Fenyuan Hsiang, 50245 50241 147, Sec. 1, Fen TsaoChanghwa Rd, Hsien Chiahsing 50245, Tsun, Taiwan Fenyuan Hsiang, 72, Sec. 2, Ta ChangChanghwa Rd, Hsien Chunglun 50243 Tsun, ,Taiwan Fenyuan Hsiang, 50570 137, Chung Shan Rd., Lukang50570, Town, Taiwan Changhwa Hsien ၓᏱְ̂ ࡵῤᏱְ ۤ˾Ᏹְ Branch - - - ou Sub-Branch of lao Sub-Branch of ઼̰ᒉຽಏҜ uan Branch hlao Sub-Branch of hkou Sub-Branch of yuan Branch DOMESTIC OFFICES Tantzu Branch Tungshih Branch Wufeng Branch Taipin Branch Tsaotun Branch 23, Ho Ping St., Tsaotun Town, Nantou Hsien 54242, Taiwan ͪ྆ӫ̶Җ Shuilikeng Branch Fenyuan Branch ܆̶Җ Nantou Branch Puli Branch 73, Hsi Kang Rd., Puli Town, Nantou Hsien 54555, Taiwan Chushan Branch Changhwa Branch ܆̶Җ Fenyuan Branch ܆̶Җ Chiahlao Sub-Branch of Fenyuan Branch ܆̶Җ Shehkou Sub-Branch of Tachang Sub-Branch of Fenyuan Branch Lukang Branch Ř ሔ̶̄Җ ๕̶Җڌ Ř Ř ᙳप̶Җ Ř ͉π̶Җ Ř ਨ͏̶Җ Ř ݑԸ̶Җ Ř ѻ̶̋Җ Ř ं̶֧Җ œ ၓ̶̼Җ Ř ౩പ̶Җ ઼̰ᒉຽಏҜ гӬ ྖ/็ৌ SWIFT DOMESTIC OFFICES ADDRESS TEL/FAX TLX ᗉ̚ϒྮ495ཱཱིིĞ04ğ8322101 CCBCTWTP602ڒҖ 51041 ၓ̼Ꭹ̶ࣶڒœ ࣶ 495, Chung Cheng Rd., Yuanlin Town, Changhwa Hsien Yuanlin Branch Ğ04ğ8320045 51041, Taiwanaiwan Ř സ̶Җ 51441 ၓ̼Ꭹസᗉၓͪྮˬ߱158ཱཱིིĞ04ğ8853471 158, Sec. 3, Chang Shui Rd., Hsihu Town, Changhwa Hsien Hsihu Branch Ğ04ğ8853476 51441, Taiwanaiwan ंៃ̶Җ 51647 ၓ̼Ꭹंៃฏр࣒Յࣶ౩ྮ˟߱72ཱིĞ04ğ8659901 72, Sec.. 2,Yuan Lu Rd, Haohsiuohsiusiu Tsun, Puyenyenen Hsiang, Hsiang, Puyen Branch Ğ04ğ8659912 ChanghwaHsien 51647, Taiwanaiwan 5ཱིĞ04ğ8652343ޒᏱְ 51647 ၓ̼ᎩंៃฏंៃՅ̚ϒྮ27ڌं-ៃ̶Җं ̚ Putung Sub-Branch of 5, Lane 27, Chung Cheng Rd, Puyen Tsun, Puyen Hsiang, Ğ04ğ8653020 ර ϔ Puyen Branch Changhwa Hsien51647, , Taiwan ઼ 2̝8ཱཱིིĞ04ğ8651049ޒ˘ៃ̶Җ-າͪᏱְ 51646 ၓ̼ᎩंៃฏາͪՅ̂າྮं ˝ ˩ Hsinshui Sub-Branch of 2-8, Lane 1, Ta Hsin Rd, Hsinshui Tsun, Puyen Hsiang, ̣ Ğ04ğ8653023 ѐ Puyen Branch Changhwa Hsien51646, Taiwanaiwan ą ѐ ंៃ̶Җ-χຆᏱְ 51643 ၓ̼ᎩंៃฏχຆՅंχྮ4̝8ཱཱིིĞ04ğ8850499 ಡ Talien Sub-Branch of 4-8, Pu Ta Rd, Talien Tsun, Puyen Hsiang, Changhwa Hsien Ğ04ğ8858184 PuyenBranch 51643, Taiwanaiwan ៃ̶Җ-ϖπᏱְ 51644 ၓ̼ᎩंៃฏາᎸՅࣶ౩ྮˬ߱187ཱིĞ04ğ8656410ं 190 Yungpin Sub-Branch of 187, Sec. 3, Yuan Lu Rd, Hsinhsing Tsun, Puyen Hsiang, Ğ04ğ8656462 Puyen Branch Changhwa Hsien51644, Taiwanaiwan Ř Δ̶͜Җ 52146 ၓ̼ᎩΔ͜ᗉ͜ࡿྮ˘߱172ཱཱིིĞ04ğ8882811 172, Sec. 1, Tou Yuan Rd., Peitou Town, Changhwa Hsien Peitou Branch Ğ04ğ8882816 52146, Taiwanaiwan ࡿ߱195ཱིĞ04ğ8985301۾ࡿฏ̥ຑՅ͜ࡿྮ۾ࡿ̶Җ 52864 ၓ̼Ꭹ۾ 195, Fang Yuan Sec., Tou Yuan Rd, Jenai Tsun, Fangyuan Fangyuan Branch Ğ04ğ8984341 Hsiang, Changhwa Hsien52864, Taiwanaiwan ࡿฏາϠՅΑസྮ1ཱིĞ04ğ8932718۾ࡿ̶Җ-ਨസᏱְ 52864 ၓ̼Ꭹ۾ Tsaohu Sub-Branch of 1, Kung Hu Rd, Hsinsheng Tsun, Fangyuan Hsiang, Ğ04ğ8933021 Fangyuan Branch Changhwa Hsien52864, , Taiwan ߱374ཱིĞ04ğ8983320˯ྮྮڒ˯ࡿฏྮπՅ۾ࡿ̶Җ-ྮ˯Ᏹְ 52851 ၓ̼Ꭹ۾ Lusang Sub-Branch of 374, Lu Sang Sec., Sang Lin Rd, Lupin Tsun , Fangyuan Ğ04ğ8981150 Fangyuan Branch Hsiang, Changhwa Hsien 52851 ,Taiwan ႔ྮͳΑ߱312̝1ཱིĂ312̝2ཱི Ğ04ğ8932231۾ࡿฏϔϠՅ۾ࡿ̶Җ-ͳΑᏱְ 52860 ၓ̼Ꭹ۾ Wangkung Sub-Branch of 312-1& 312-2, Wang Kung Sec., Fang Han Rd, Minsheng Ğ04ğ8932621 Fangyuan Branch Tsun , FangyuanHsiang, Changhwa Hsien 52860, Taiwanaiwan ᎩҘᓲᗉ̋̚ྮ225ཱཱིིĞ05ğ5863611ڒŘ Ҙᓲ̶Җ 64848 ำ 225, Chung Shan Rd., Hsiluo Town, Yunlin Hsien64848, Hsiluo Branch Ğ05ğ5868035 Taiwanaiwan Ꭹ̱͜ξ̋̚ྮ70ཱཱིིĞ05ğ5324116ڒŘ ̶̱͜Җ 64051 ำ Touliu Branch 70, Chung Shan Rd., Touliu City, Yunlin Hsien64051, 64051, Taiwan Taiwanaiwan Ğ05ğ5321542 ANNUAL REPORT2006 191 TLX SWIFT ็ৌ็ৌ็ৌ / / 5974191597419159741915974191 5961601596160159616015961601 6322561632256163225616322561 6321655632165563216556321655 6621116 6621116 6621116 6621116 6622811 6622811 6622811 6622811 7836121783612178361217836121 ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ TEL/FAX ྖ 0505 0505 0505 0505 0505 0505 0505 Ğ Ğ Ğ 6323810632381063238106323810 7835460783546078354607835460 2545386254538625453862545386 2544750254475025447502544750 2653221265322126532212653221 3125318312531831253183125318 3138790313879031387903138790 22212812221281222128122212812223317222331722233172223317 CCBCTWTP640 2650121265012126501212650121 2254161225416122541612254161 22781412278141227814122781412225870222587022258702225870 CCBCTWTP621 2267813226781322678132267813 2276032227603222760322276032 2223601222360122236012223601 2342166234216623421662342166 2815459281545928154592815459 2235141223514122351412235141 CCBCTWTP642 2205441220544122054412205441 6323871632387163238716323871 2267141226714122671412267141 2204874220487422048742204874 2263181226318122631812263181 2204810220481022048102204810 2523450252345025234502523450 2512839251283925128392512839 ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ 0606 0505 0606 0606 0505 0606 0606 0606 0606 0505 0606 0505 0505 0606 0505 0505 0505 0505 0606 0606 0606 0606 0606 0606 0606 0606 0606 aiwan aiwan Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ 63341, 63242, 63041, 73043, Taiwan 65142, Taiwan 71069, , Taiwan 41, Taiwan ཱཱཱིིིĞ aiwan ཱཱཱིིིĞ ཱཱཱིིིĞ ཱཱཱིིིĞ , Taiwan гӬ 1111 , Taiwan 4949 3535 96-296-2 5151 3333 42, Taiwan 41, Taiwan ADDRESS ཱཱཱིིིĞ ཱཱཱིིིĞ ཱཱཱིིིĞ ཱཱཱིིིĞ ཱཱཱིིིĞ ཱཱཱིིི̝̝̝ ཱཱཱིིིĞ ཱཱཱིིི̝̝̝ ཱཱཱིིིĞ 70048, Taiwan 6 839839 151151 9494 9595 655655 367367 ཱིĞ 246246 473473 146 88 ཱཱཱིིིĞ ཱཱཱིིིĞ ཱཱཱིིིĞ 386386 350350 290290 ng Rd., Hsinying City, Tainan Hsien 73043, Taiwan Ꭹ͜ݑᗉາᎸූڒำ Ꭹԍᗉ̚ϒྮڒำ Ꭹ˿ऱᗉ̚ϒྮڒำ ᎩΔപᗉ̼͛ྮڒำ Fu Hsing Rd., Hsinying City, Tainan Hsien 73043, Taiwan aiwan aiwan aiwan 6, Fu Hsing Rd., Hsinying City, Tainan Hsien 73043, Taiwan 63041 Taiwan 49, Hsin Hsing St., Tounan Town, Yunlin Hsien 63041, 63242 Taiwan 35, Chung Cheng Rd., Huwei Town, Yunlin Hsien 63242, 63341 96-2, Chung Cheng Rd., TukooTaiwan Town, Yunlin Hsien 63341, 65142 ᄂݑᎩϖξ̚ϒݑྮ ྮڌᄂݑᎩϖξ̈ ᗉேྮڒလཌྷᎩ̂ ᄂݑξ̚ડ̚ϒྮ ᄂݑξ̚ડϔᝋྮ˟߱ လཌྷξ̋̚ྮ လཌྷξ̚ϒྮ လཌྷξ̓ຑྮ ᄂݑξҘડϔྮˬ߱ ᄂݑᎩາᒉξೇᎸྮ ߱˘ྮܝᄂݑξ̚ડΔ ߱˘ྮܝᄂݑξݑડҘ α߱ྮܝᄂݑξΔડҘ , Taiwan 146, Fu Hsing Rd., Hsinying City, Tainan Hsien 73043, Taiwan 51, Wen Hwa Rd., Peikang Town, Yunlin Hsien 65142, Taiwan , Chung Cheng Rd., Tainan 70048, Taiwan aiwan 71045 839, Chung Cheng S. Rd.,71045, Yungkang City, Taiwan Tainan Hsien 71069 62241 Taiwan 473-3, Shiaw Tung Rd., Yungkang City, Tainan Hsien 71069, 70048 70042 60041 60042 60088 70353 73043 70044 70245 70465 ઼̰ᒉຽಏҜ DOMESTIC OFFICES Tounan Branch Huwei Branch ˿ऱ̶Җ Tukoo Branch Peikang Branch Ř ͜ݑ̶Җ Ř ԍ̶Җ Ř Δപ̶Җ Yungkang Branch ̚රྮ̶Җ Talin Branch 246, Hsiang Ho Rd., Talin Town, Chiayi Hsien 62241, Taiwan Chung-Hua Road Branch Tainan Branch 88, Chung Cheng Rd., Tainan 70048, Taiwan Yenping Branch 151, Sec. 2, Min Chyuan Rd., Tainan 70042, Taiwan လཌྷ̶Җ 386, Chung Shan Rd., Chiayi 60041, TaiwanڌChiayi Branch Tung-Chiayi Branch 350, Chung Cheng Rd., Chiayi 60042, Taiwan Δလཌྷ̶Җ Pei-Chiayi Branch 290, Yu Ai Rd.,Chiayi 60088, Taiwan Hsi-Tainan Branch 94, Sec. 3, Min Chu Rd., Tainan 70353, Taiwan Hsinying Branch Tung-Tainan Branch 95-1, Sec.1, Pei Men Rd., Tainan 70044, Taiwan Nan-Tainan Branch 655, Sec. 1, Hsi Men Rd., Tainan 70245, Taiwan Pei-Tainan Branch 367, Sec. 4, Hsi Men Rd., Tainan 70465, Taiwan Ř ϖ̶Җ Җ̶ڒ̂ Ř œ ᄂݑ̶Җ Ř ؼπ̶Җ œ လཌྷ̶Җ œ Ҙᄂݑ̶Җ Ř າᒉ̶Җ ᄂݑ̶Җڌ Ř Ř ݑᄂݑ̶Җ Ř Δᄂݑ̶Җ ઼̰ᒉຽಏҜ гӬ ྖ/็ৌ SWIFT DOMESTIC OFFICES ADDRESS TEL/FAX TLX Ř щݑ̶Җ 70969έݑξщݑડщྮα߱330ཱི˘ă˟ሁ Ğ06ğ3556111 1,2F., No.330, Sec. 4, Anhe Rd., Annan District, Tainan City An-Nan Branch Ğ06ğ3557222 70969, Taiwan Ř ၮ̶̋Җ 84257 ฯᎩၮ̋ᗉ̋̚ྮ102ཱཱིིĞ07ğ6615481 102, Chung Shan Rd., Chishan Town, Kaohsiung Hsien Chishan Branch Ğ07ğ6615490 84257, Taiwanaiwan 293ཱཱིིĞ07ğ6216111ྮ̋تᗉ̋تҖ 82041 ฯᎩ̶̋ت Ř 293, Kang Shan Rd., Kangshan Town, Kaohsiung Hsien Kangshan Branch Ğ07ğ6214801 82041, Taiwanaiwan Ř ᆂ̶̋Җ 83058 ฯᎩᆂ̋ξˬϔྮ264ཱཱིིĞ07ğ7470101 ̚ 264, San Min Rd., Fengshan City, Kaohsiung Hsien83058, ර Fengshan Branch Ğ07ğ7426262 ϔ Taiwanaiwan ઼ ˝ Ř ྮѻ̶Җ 82152 ฯᎩྮѻฏ̋̚ྮ835ཱིĞ07ğ6972151 ˩ 835,, Chung Shan Rd., Luchu Hsiang, Kaohsiung Hsien ̣ Luchu Branch Ğ07ğ6974491 ѐ 82152, Taiwanaiwan ą 539ཱཱིིĞ07ğ7824356ྮˬڒѐ Ř ̂൴̶Җ 83152 ฯᎩ̂ᆴฏᆂ ಡ 539, Feng Ling 3rd Rd., Taliaw Hsiang, Kaohsiung Hsien Ta-Fa branch Ğ07ğ7826225 83152, Taiwanaiwan 192 œ ฯ̶Җ 80251 ฯξࢁฮડϔᝋ˘ྮ59ཱཱིིĞ07ğ3361620 CCBCTWTP811 Kaohsiung Branch 59, Min Chyuan 1st Rd., Kaohsiung80251, Taiwanaiwan Ğ07ğ3358484 Ğ07ğ333309633096 Ԃ˘ྮ456ཱཱིིĞ07ğ2361191مŘ ˛ኰ̶Җ 80055 ฯξາᎸડ Chi-Hsien Branch 456, Chung Hsiao 1st Rd., Kaohsiung 80055, Taiwanaiwan Ğ07ğ2369229 Ř ៃṽ̶Җ 80343 ฯξៃṽડ̂ྮ85ཱཱིིĞ07ğ5313181 Yencheng Branch 85, Ta Yeong Rd., Kaohsiung80343, Taiwanaiwan Ğ07ğ5514151 ડ̚ϒαྮ109ཱཱིིĞ07ğ2217741 CCBCTWTP814ܛฯ̶Җ 80147 ฯξ݈ڌ œ Tung-Kaohsiung Branch 109, Chung Cheng 4th Rd., Kaohsiung80147, Taiwanaiwan Ğ07ğ2824862 ݑฯ̶Җ 80643 ฯξ݈ᗉડϖᖳྮ13ཱཱིིĞ07ğ7158000 Nan-Kaohsiung Branch 13, Yung Feng Rd., Kaohsiung 80643, Taiwanaiwan Ğ07ğ7173514 720ཱཱིིĞ07ğ3662566ྮپޢŘ Δฯ̶Җ 81142 ฯξເડ Pei-Kaohsiung Branch 720, Hou Chang Rd., Kaohsiung 81142, Taiwanaiwan Ğ07ğ3663710 Δ˟ྮ157ཱཱིིĞ07ğ2918131ګŘ ˬϔ̶Җ 80749 ฯξˬϔડ Sanmin Branch 157, Her Pei 2nd Rd., Kaohsiung 80749, Taiwan Ğ07ğ2918137 Ř າᎸ̶Җ 80274 ฯξࢁฮડ̚ϒ˟ྮ139ཱཱིིĞ07ğ2222200 Hsinhsing Branch 139, Chung Cheng 2nd Rd., Kaohsiung 80274, Taiwanaiwan Ğ07ğ2222208 ݈ᗉ̶Җ 80655 ฯξ݈ᗉડˬкˬྮ155ཱཱིིĞ07ğ3344121 Chanchen Branch 155, San Do 3rd Rd., Kaohsiung 80655, Taiwanaiwan Ğ07ğ3328241 ANNUAL REPORT2006 193 TLX SWIFT 2045 ็ৌ็ৌ็ৌ / / 3123101312310131231013123101 3120191312019131201913120191 2358527235852723585272358527 2368171236817123681712368171 5545151554515155451515545151 5553202555320255532025553202 3353171335317133531713353171 3353393335339333533933353393 7715101771510177151017715101 7133512713351271335127133512 7342705734270573427057342705 7338190733819073381907338190 7883911 7883911 7883911 7883911 7880144788014478801447880144 875048287504828750482 8752045875204587520458752045 875509287550928755092 8752149875214987521498752149 8758006875800687580068758006 8752149875214987521498752149 8752244875224487522448752244 875786587578658757865 875247587524758752475 875247587524758752475 8754773875477387547738754773 875477387547738754773 8351521835152183515218351521 8351528835152883515288351528 ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ ğğğ TEL/FAX ྖ 0707 0707 0707 0707 0707 0707 0707 0707 0707 0707 0808 0808 0808 0808 0808 0808 0808 0808 0808 0808 0808 0808 0808 0808 0808 0808 0808 0808 Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ Ğ tung gtung tung gtung PingtungPingtung aiwan aiwan Hsiang, Pingtung Hsiang, Pingtung aiwan aiwan ཱིĞ ཱིĞ 80753, Taiwan ཱིĞ ཱིĞ ཱིĞ 80284, Taiwan Linpien Hsiang, Pingtung ཱིĞ ཱཱཱིིིĞ 195 3 303 20 77 25 ཱཱཱིིིĞ ཱཱཱིིིĞ ཱཱཱིིིĞ ཱཱཱཱཱིིིིིĞ Linpien Hsiang, Pingtung 80247, Taiwan 80759, Taiwan ཱཱཱིིིĞ ཱཱཱིིིĞ ཱཱཱིིིĞ 77 123123 517517 22 109109 Tsun, Linpien Hsiang, Pingtung гӬ 117-2 117-2 117-2 117-2 115-117 115-117 7474 ADDRESS ifeng Tsun, Linpien Hsiang, Pingtung in Tsun, Linpien Hsiang, Pingtung lin Tsun, Linpien Hsiang, Pingtung ChifengChifeng Tsun, Tsun, Linpien Linpien Hsiang, Hsiang, Pingtung Pingtung ChulinChulin Tsun, Tsun, Linpien Linpien Hsiang, Hsiang, Pingtung Pingtung Rd, Chifeng Tsun, Linpien Hsiang, Pingtung aiwan Taiwan en Rd, Chifeng Tsun, Linpien Hsiang, Pingtung , Taiwan , Taiwan. Chen Rd, Chifeng Tsun, Linpien Hsiang, Pingtung 46, Taiwan aiwan aiwan aiwan ฯξˬϔડ˝т˟ྮ ฯξˬϔડޙ઼˟ྮ ฯξခ̋ડ౾ຑ˘ྮ ฯξࢁฮડαჯαྮ ฯξࢁฮડޙ઼˘ྮ ξ̚ϒྮڌލᎩڌލξ̚ϒྮڌލᎩڌލξ̚ϒྮڌލᎩڌލ Յ̚ᎸྮڒᙝฏѻڒᎩڌލ ྮڒՅ̚ڒᙝฏ̚ڒᎩڌލ Ꭹሗэᗉؼπྮڌލ ᙝฏ̥Յ̋̚ྮڒᎩڌލ ᙝฏᗉщՅ̚ϒྮڒᎩڌލ ᙝฏͪӀՅᖳүྮڒᎩڌލ ᙝฏपՅЍ݈ྮڒᎩڌލ പᗉ̚ϒྮڌᎩڌލ 92744, Taiwan 92746, Taiwan 92745, Taiwan. Kuang Chen Rd, Chifeng Tsun, Linpien Hsiang, Pingtung , Kuang Chen Rd, Chifeng Tsun, Linpien Hsiang, Pingtung 80759 80753 80466 80247 80284 90074 117-2, Chung Cheng Rd., Pingtung City,90074, Pingtung Taiwan Hsien 92050 92741 92749 115-117, Yen Ping Rd., Chaochou Town,92050, Pingtung Taiwan Hsien 92744 195, Shan Lin Rd, ChunglinHsien Tsun, 92741, Linpien Taiwan Hsiang, Pingtung 303, Chung Shan Rd, JenhoHsien Tsun, 92744, Linpien Taiwan Hsiang, Pintung 3, Chung Hsin Rd, Chulin Tsun, Linpien Hsiang, Pingtung Hsien 92746, Taiwan Hsien 92749, Taiwan 92748 20, Chung Cheng Rd, Chen-AnPingtung Tsun, Hsien Linpien 92748, Hsiang, Taiwan 92746 92745 25, Feng Tso Rd, ShuiliHsien Tsun, 92745, Linpien Taiwan. Hsiang, Pingtung 77, Kuang Chen Rd, Chifeng Tsun, Linpien Hsiang, Pingtung 92849 74, Chung Cheng Rd., Tungkang92849, Town, Pingtung Taiwan Hsien ᏱְڒᏱְ ѻڒ̚ ᗉщᏱְ पᏱְ ͪӀᏱְ - - - - - Sub-Branch of BranchBranch Branch Branch n Sub-Branch of ̰ᒉຽಏҜ -An Sub-Branch of ઼ ifeng Sub-Branch of hifeng Sub-Branch of DOMESTIC OFFICES Chiu-Ju Lu Branch 7, Chiu Ju 2nd Rd., Kaohsiung 80759, Taiwan ޙᎸ̶Җ Chienhsing Branch 123, Chien Kuo 2nd Rd., Kaohsiung 80753, Taiwan Po-Ai Branch 517, Po Ai 1st. Rd., Kaohsiung 80466, Taiwan ࢁฮ̶Җ Lingya Branch 2, Syh Wei 4th Rd., Kaohsiung 80247, Taiwan Ta-Shun Branch 109, Chien Kuo 1st Rd., Kaohsiung 80284, Taiwan Pingtung Branch ᙝ̶Җ Chulin Sub-Branch of Linpien Branchڒ ᙝ̶Җ Chunglin Sub-Branch of Linpien Branchڒ ᙝ̶Җڒ Chaochou Branch Linpien Branch ᙝ̶Җ Chen-An Sub-Branch of Linpien Branchڒ Linpien Branch ᙝ̶Җ Shuili Sub-Branch of Linpien Branchڒ ᙝ̶Җ Chifeng Sub-Branch ofڒ Tungkang Branch Ř ˝тྮ̶Җ Ř ౾ຑ̶Җ Ř ̂ึ̶Җ Җ̶ڌލ Ř Ř ሗэ̶Җ പ̶Җڌ Ř ઼̰ᒉຽಏҜ гӬ ྖ/็ৌ SWIFT DOMESTIC OFFICES ADDRESS TEL/FAX TLX Ꭹ֘ݱฏᎸՅ̋̚ྮ15ཱིĞ08ğ8822655ڌލ ݱ̶Җ 94441֘ 15,Chung Shan Rd, Fuhsinghsingsing Tsun, Chechengchengheng Hsiang, Hsiang, Checheng Branch Ğ08ğ8822607 Pingtung Hsien 94441,, Taiwan 6ཱིĞ08ğ8831634ྮܝՅϮܝᎩհ̜ฏϮڌލݱ̶Җ-հ̜Ᏹְ 94541֘ Mudan Sub-Branch of 6, Shih Men Rd, Shihmenmenen Tsun,Mudan Hsiang, Pingtunggtungtung Ğ08ğ883167676 Checheng Branch Hsien 94541,, Taiwan Ř ܅ቷ̶Җ 97047 ܅ቷᎩ܅ቷξ̋̚ྮ191ཱཱིིĞ03ğ8323961 191, Chung Shan Rd., Hualien City, Hualien Hsien 97047, Hualien Branch Ğ03ğ8337215 Taiwanaiwan ξϒঈྮ226ཱཱིིĞ089ğ324311ڌᎩᄂڌҖ 95044 ᄂ̶ڌᄂ ̚ 226, Jeng Chih Rd., Taitung City, Taitung Hsien95044, 95044,, ර Taitung Branch Ğ089ğ318806 ϔ Taiwan ઼ ݑྮ˘߱47ཱི2ሁሁĞ02ğ23973801973801̋ܛௐ˘ડᒉྻ 10056 ᄂΔξ̚ϒડ ˝ ˩ Commercial Regional Center ̣ 2nd Fl.,47, Sec. 1, King-Shan S. Rd., Taipei10056, 10056, Taiwan Taiwanaiwan Ğ02ğ2351968319683 ѐ One ą ѐ ௐ˟ડᒉྻ 1035535555 ᄂΔξ̂ТડݑִҘྮ123ཱི2ሁሁĞ02ğ2552101021010 ಡ Commercial Regional Center 2nd Fl.,123,123,23, Nanking W. Rd., Taipei10355, 10355,355,55, Taiwan Taiwanaiwan Ğ02ğ2550300303003 Two ௐˬડᒉྻ 23575 ᄂΔᎩ̚ξ̚ྮ182ཱི3ሁሁĞ02ğ2240122301223 194 Commercial Regional Center 3ndnd Fl.,182, Chung Ho Rd., Chungho City, Taipei Hsien Ğ02ğ224551165116 Three 23575, Taiwanaiwan ௐαડᒉྻ 40245 ᄂ̚ξݑડೇᎸྮ˟߱78ཱི12ሁሁĞ04ğ2260158801588 Commercial Regional Center 12nd2nd Fl.,78, Sec. 2, Fu Hsing Rd., Taichung40245, 40245, Taiwan Taiwanaiwan Ğ04ğ2260610106101 Four ߱655ཱི5ሁሁĞ06ğ221866618666˘ྮܝௐ̣ડᒉྻ 70245 ᄂݑξݑડҘ Commercial Regional Center 5ndnd Fl.,655,655, Sec. 1, Hsi Men Rd., Tainan 70245, Taiwan Ğ06ğ221363613636 Five ௐ̱ડᒉྻ 80343 ฯξៃṽડ̂ྮ85ཱི3ሁሁĞ07ğ5219123219123 Commercial Regional Center 3ndnd Fl.,85, Ta Yeong Rd., Kaohsiung80343, 80343, Taiwan Taiwanaiwan Ğ07ğ5219636219636 Six གྷࡔથέΔ̶̳Φ 10045 ᄂΔξ̚ϒડᏊวྮ68ཱི3ሁሁĞ02ğ23619654דᙋ Taipei Securities Broker 3rd Fl., 68, Heng Yang Rd., Taipei10045, 10045, Taiwan Taiwanaiwan Ğ02ğ23113726 α߱126ཱིB1 Ğ02ğ257099515709951ྮڌડݑִ̋ڗᄂΔ̶̳Φ 10595 ᄂΔξڌགྷࡔથדᙋ Tung-Taipei Securities B1,26,1,26,,26,26, Sec. 4, Nanking E. Rd., Taipei10595, 10595, Taiwanaiwan Ğ02ğ257099535709953 Broker གྷࡔથᄂ̶̳̚Φ 40245 ᄂ̚ξݑડೇᎸྮ˟߱78ཱི3ሁሁĞ04ğ22660011דᙋ Taichung Securities Broker 3rd FL. 78, Sec. 2, Fu Hsing Rd., Taichung40245, 40245, Taiwanaiwan Ğ04ğ22660060 ઼̰ᒉຽಏҜ гӬ ྖ/็ৌ SWIFT DOMESTIC OFFICES ADDRESS TEL/FAX TLX གྷࡔથݑᄂ̶̳̚Φ 40045 ᄂ̚ξ̚ડҋϤྮ˟߱38ཱཱིིĞ04ğ22255161דᙋ Nan-Taichung Securities 38, Sec. 2, Tsu Yu Rd., Taichung40045, 40045, Taiwan Taiwanaiwan Ğ04ğ22250361 Broker Ԃ˘ྮ456ཱི3ሁሁĞ07ğ2355658مགྷࡔથ˛ኰ̶̳Φ 80055 ฯξາᎸડדᙋ Chi-Hsien Securities Broker 3rd Fl., 456, Chung Hsiao 1st Rd., Kaohsiung80055, 80055, Taiwanaiwan Ğ07ğ2355785 NULREPORT2006 ANNUAL ઼γᒉຽಏҜ гӬ ྖ/็ৌ SWIFT Overseas Units ADDRESS TEL/FAX TLX Tel : 1-212-6519770 ৸ࡗ̶Җ 685 Third Avenue, 29th Floor, New York, NY 10017, U. S. A. Fax :1-212-6519785 CCBCUS33US33 NEW YORK BRANCH e-mailĈ[email protected] 1-212-6519786 Tel : 1-213-6207200 195 ࠃՉᒧ̶Җ 333 South Grand Avenue, Suite 600, Los Angeles, CA 90071, U. S. A Fax :1-213-6207227 CCBCUS6LUS6L LOS ANGELES BRANCH e-mailĈ[email protected] 1-213-6262262 പડ֔˿ͅ2-17-22,֔˿ͅᗕ̂ሁώᐡ15ሁౌִڌώ઼͟ Җ Akasaka Twin Tower, Main Tower 15th Floor, 17-22, Akasaka 2-Chome, Tel : 81-3-35837011̶ִڌ CCBCJPJTJPJT TOKYO BRANCH Minato-ku, Tokyo 107-0052 Japan Fax :81-3-35862959 e-mailĈ[email protected] Tel : 44-20-76006600 ̶ࣖҖ Level 6, City Tower, 40 Basinghall Street, London EC2V 5DE, United Kingdom Fax : 44-20-76003227 CCBCGB2LGB2L LONDON BRANCH e-mailĈ[email protected] 44-20-72566541 Tel : 852-29561212 ވງௐ˟ळ1401̂ރ25ཱིപڌࢶപ˝ᐷыՒᇃ ࢶപ̶Җ 1401, Tower II, The Gateway 25, Canton Rd., Tsimshatsui, Kowloon, Hong Fax :852-29561898 CCBCHKHHHKHH HONG KONG BRANCH Kong 852-29563652 e-mailĈ[email protected] 852-29562588 ᖃᅊं1ཱི8ሁ Tel : 65-65320820܆າΐ Җ̶າΐ No.1 Finlayson Green #08-00Singapore 049246 Fax :65-65320370 CCBCSGSGSGSG SINGAPORE BRANCH e-mailĈ[email protected] 65-65320374 ξโᐷѯΔྮ88ཱིAळ2F̋ٿѯᛂ࠷઼̚ ܑ 2F, Tower A, No.88 Hei Long Jiang North Road, Kunshan City, Jiangsu Tel : 86-512-57367576̋ٿ KUNSHAN REPRESENTATIVE OFFICE Province, P.R.C. Fax :86-512-57325778 e-mailĈ[email protected] ၓ̼થຽᅙҖ۵Њѣࢨ̳Φ Chang Hwa Commercial Bank, Ltd. ܜְ Chairman