Far Eastern Department Store 2021 Annual General Shareholders’ Meeting

        In 2020, under the influence of the epidemic, Far Eastern Department store retail group overcame difficulties and delivered brilliant business achievements again. It actively adjusted its business model with innovative thinking and agility, integrated online and offline channels, enriched customers' consumption experience, and spared no effort to promote sustainable actions such as environment, society and corporate governance, creating excellent sustainable business performance. Driven by the strong private consumption power, the consolidated turnover of Far Eastern Department Store Retail Group continues to grow. The parent company Far Eastern Department store has won 34 awards at home and abroad, setting a new record over the years.

        In 2020, the consolidated turnover of Far Eastern Department store retail system was 114.8 billion yuan (including Far Eastern Department store and reinvested retail businesses such as Pacific SOGO Department store, A. Mart and city 'super). The consolidated net profit was 2.54 billion yuan, an increase of 18%, with a surplus of 1.38 yuan per share and a cash dividend of 1.1 yuan per share, which delivered brilliant business achievements again. Among them, the business performance of the parent company Far Eastern Department Store reached another peak, the turnover reached a new high in the past 54 years, and the net profit before tax also reached a new high in recent 5 years.

        The business performance of Pacific SOGO Department store, A. Mart and city 'super reinvested by Far Eastern Department Store is commendable. The pre tax net profit of Pacific SOGO Department store has increased significantly, while A. Mart continues to add its stores, Taichung Shuiyao store was officially put into operation on September 23 last year with the business model of hyper mall. City 'super also continued to expand diversified shopping channels, improve the number of visitors and increase business opportunities.

        In the face of the new era of digital competition, Far Eastern Department store has made flexible changes, accelerated the digital transformation, and gradually integrated physical retail with online shopping through the two directions of "offline experience and online service", so as to provide consumers with a wonderful life. With the trend of the change of consumer behavior, Far Eastern Department store will also strengthen the development of online shopping, and form an online triangle through app, online shopping and social media to provide real-time and intimate online services.

        In addition, in the past five years, the planned adjustment management mode of Far Eastern Department store has successfully achieved the four goals of "building a paperless office, integrating cross departmental systems, formulating management indicators KPI and establishing EIP", effectively controlling operating costs and driving productivity improvement. In the future, Far Eastern Department store will take "continuous increase of the number of the stores, strengthening experience, innovation management, digital technology and development of online shopping" as the five main growth drivers to enhance competitiveness, and continue to create the greatest interests for shareholders.

        Adhering to the diversified retail layout, Far Eastern Department Store continues to increase the number of the stores to meet the all-round retail needs of consumers. After the official opening of Far Eastern Department Store Xinyi A13 on January 19 last year, Far Eastern Department Store continued to move forward. The main building of Far Eastern Department Store North Hsinchu store has been completed. It is expected to become the first large shopping center in Hsinchu County after the opening, and its city 'super will also move forward together. In terms of cross-strait layout, in addition to continuously adjusting the operation strategy and mode to meet the needs of local consumer groups, it also successively evaluates suitable investment sites and M & A targets and continues to expand the retail territory and scale.

        In terms of corporate governance, Far Eastern Department store has always been the benchmark of listed department stores, ranking among the top 20% excellent enterprises in corporate governance evaluation. In 2020, it won 34 CSR awards at home and abroad, which was the year with the largest number of awards. It also set the first example in the retail industry and became the first in Taiwan. In terms of environmental sustainability, in the past six years, 164 energy-saving projects have been promoted, with power saving of 28.03 million kWh and excellent performance in energy conservation and carbon reduction. It has been awarded the "National Sustainability Development Award" by the Executive Yuan twice in three years, which also sets an example of enterprise sustainability development. In terms of social feedback, up to 600 public welfare activities were held for the types of activities such as assistance for the disadvantaged, maternal and childcare and environmental protection. The amount of public welfare activities ranked the first among the department store industry.

        In the future, Far Eastern Department store will continue to be engaged in the public welfare, give full play to its influence, expand the synergy of public welfare, and join hands with the public to welcome a sustainable and beautiful life.