In 2022, due to the impact of the Russia-Ukraine war, international energy and commodity prices surged. In an effort to curb inflation, the U.S. Federal Reserve (FED) raised interest rates seven times throughout the year, with a cumulative increase of 4.25%. Central banks around the world initiated interest rate hikes subsequently, leading to a significant global economic slowdown. Affected by weakened global demand, Taiwan’s economy has seen a gradual slowdown in export growth, and the shift towards more conservative corporate investments led to a 2.35% decline in Taiwan’s annual economic growth. As for stocks, in response to tightening policies of the major countries, the Central Bank of the Republic of China (Taiwan) raised interest rates four times, with a total increase of 0.625 %. Moreover, faced with challenges such as difficulties in destocking for businesses and tensions in cross-strait relations, the Taiwan Weighted Index fell by 22.4% for the year. The average daily trading volume in the stock market recorded a 36.1% decrease from NT$ 477.8 billion to NT$ 305.2 billion.

President Securities Corporation (PSC) places a strong emphasis on sustainable development. In response to the evolving trends and changes in the financial sector and market environment, the Company upholds the sustainable business philosophy of "You care, we act!" as we continuously enhance our operational strategies through ongoing communication with stakeholders. With our development strategy and vision encapsulated in the acronym "CORE," which stands for "Comfortableness" in providing thoughtful services, "Opportunity" for career development, "Responsibility" in delivering social commitments, and "Equality" for shared prosperity, we strive towards sustainable development.

In terms of corporate governance, to ensure the rights and interests of both customers and shareholders, the Board of Directors has established a "Conflicts of Interest Prevention Policy." Employees are bound to work with integrity in compliance with the law and their job duties. The Company employs various measures such as education and advocacy, information control, firewall design, and division of authority and responsibility to prevent conflicts of interest from arising. Furthermore, to ensure the effectiveness of the Board of Directors, the Company has legally amended its rules of procedure for board meetings, which explicitly state matters prohibited from being discussed through ad hoc motions and that the appointment or dismissal of the Chairman of the Board should be a subject for discussion within the board.

In terms of customer service, we are committed to quality improvement in our services and products. After extensive research in alignment with the development trends in domestic industries of exceptional performance, we introduced the "President Asia Semiconductor ETN" and "President IC Design Taiwan ETN," which received the "Best Product Award" at the 19th National Brand Yushan Awards in 2022. In service delivery, we collaborate with the government through methods such as seminars and web-based interactive games to promote awareness and prevention of investment fraud online and offline. In addition, we maintain ongoing communication with our customers through sustainable and innovative means. In 2022, we were recognized with three awards from Wealth magazine, including "Best Customer Recommendation," "Best Video Marketing," and "Best Philanthropic Services." Furthermore, we received the first prize for "Best Marketing Innovation" and the third prize for "Best Sustainable Development" in the 16th Financial Management of Banks and Securities by CommonWealth Magazine. These awards demonstrate PSC’s efforts to align with current trends and technological developments while serving our customers innovatively

In terms of our environmental endeavors, in 2022, we achieved ISO 14001 certification for environmental management system based on a unified effort throughout the Company. In addressing significant environmental issues, monitoring indicators and action plans are in place in alignment with the government's goal of achieving net-zero carbon emissions by 2050. The Board of Directors has also set short, medium, and long-term objectives to continuously promote environmental sustainability. Since our 2021 sustainability report, the Company has adopted the Task Force on Climate-related Financial Disclosures (TCFD) framework and the Sustainability Accounting Standards Board (SASB) standards in an effort to enhance the disclosure of corporate sustainability information. In 2022, we received the honor of Taiwan’s Top 100 Sustainability Exemplary Awards in the Taiwan Corporate Sustainability Awards (TCSA).

PSC adheres to the business mindset of giving what we have taken from society back to society. The Company founded the “PSC Scholarships and Grants for Elementary School Students from Economically Disadvantaged Families” in 2018 and has been collaborating with Taiwan Fund for Children and Families since to assist underprivileged students from economically disadvantaged families in their pursuit of education. As of 2022, this initiative has supported 10,776 economically disadvantaged students at the high school, junior high school, and elementary school levels by covering expenses such as registration fees, textbooks, miscellaneous fees, and teaching materials. The Company also actively promotes financial education. In 2022, PSC partnered with National Chung Cheng University to launch a Campus Ambassador Program. It recruited 50 campus ambassadors from universities across Taiwan to help promote financial literacy education in colleges and universities. The goal is to bridge the gap between students and finance by enhancing financial literacy among students and cultivate future professionals in the field of finance on campus.

Going forward, albeit the uncertain economic outlook, PSC will remain committed to pursuing steady and robust performance. We will continue to provide customers with high-quality products and services, strengthen corporate governance, and safeguard the interests of our stakeholders. Furthermore, we will remain committed to environmental protection and caring for the underprivileged as we fulfil our corporate social responsibility and strive to achieve sustainability goals.

Chairman