III. CORPORATE GOVERNANCE · Corporate Governance Report51 Corporate Governance Report51 2.1...

Corporate Overivew5� Corporate Governance Report5�

III. CORPORATE GOVERNANCE REPORT

10 Corporate Organization

13 Directors’, Supervisors’ and Managers’ Information

30 Corporate Governance Practices

38 Auditing Notes

39 Changes in Shareholding of Directors, Supervisors,

Managers and Major Shareholders

41 Information Disclosing the Relationship between

any of the Company’s Top Ten Shareholders

42 Total Percentage of Ownership of Investees

Corporate Governance Report5�

Corporate Governance Report510 Corporate Governance Report511

CENTRAL R&D INSTITUTE

ENVIRONMENTAL SAFETY DIVISION

Technology Development DivisionProduct Development Division IProduct Development Division IIProduct Development Division IIIBioscience CenterR&D Planning Office

TECHNICAL GROUP

Technology Planning DivisionYungkang Main Plant 1Yungkang Main Plant 2Shinshih Main PlantTaichung Main PlantYangmei Main PlantJungli Main PlantOEM & ODM Service DivisionQuality Assurance DivisionEngineering Division

PROVISIONS GROUP

Flour DivisionEdible Oil DivisionAquatic Business DivisionAnimal Feed DivisionAquatic Technology DivisionAnimal Production Technical DivisionFoodstuff Division

LOGISTIC GROUP

Cha-Nan Sales DivisionKaohsiung Sales DivisionTaichung Sales DivisionTaipei Sales DivisionKey Account DivisionChannel Service DivisionNormal-Temp Logistic DivisionTransportation Service Division

INSTANT FOOD GROUP

Food Division

GENERAL FOODS GROUP

Frozen Prepared Foods DivisionMeat DivisionIce Cream DivisionInternational DivisionSauce & Seasoning Division

SUPERVISORS

SHAREHOLDERSMEETING

BOARD OFDIRECTORS

CHAIRMAN OFTHE BOARD

PRESIDENT

EXECUTIVEVICE-PRESIDENT

PRESIDENT'SOFFICE

Corporate Resources Integration GroupStrategic Marketing GroupCorporate Planning GroupInformation DivisionSecretariat Office

SECRETARIAT TO THEBOARD OF DIRECTORS AUDIT DIVISION

ACCOUNTING GROUP

TAICHUNG BRANCH

Accounting DivisionFinancial Planning Division

MANAGEMENT GROUP

Purchasing DivisionHuman Resources DivisionAdministrative Service DivisionGlobal Business Service DivisonLegal Affairs Office

DAIRY & BEVERAGE GROUP

Dairy Product DivisionTea Beverage DivisionBeverage Division

TAIPEI BRANCH

Taipei Management DivisionPublic Relation Division

HEALTH GROUP

Bread Division Health Food Division

FINANCE GROUP

Finance DivisionTreasury Division

1. Corporate Organization

1.1 Organization Chart AsofApr.30,2007

Corporate Governance Report510 Corporate Governance Report511

Division Function

Board of Directors

6�SecretariattotheBoardof

Directors

6�AuditDivision

6�Planandcoordinateboardmeetings(draftcontentsandprovideinformation);

performsecretarialservicestochairman

6�Ensuretheeffectivenessofinternalcontrolsystem,strengthencorporate

governance,andsetupcorporateriskassessmentandriskmanagement

mechanism

President’s Office

6�CorporateResourcesIntegration

Group

6�StrategicMarketingGroup

6�CorporatePlanningGroup

6�InformationDivision

6�SecretariatOffice

6�Undertakenationalandinternationalinvestments,merger&acquisition,joint

ventures(includinginternationallawaffairs)projects,andfollowupthenecessary

assetmanagement,businessintegrationandcapitalmarketoperation

6�Managementofmarketandproductinformation,operationalanalysis,market

survey,consumerbehavioranalysis,promotionandadvertisingplanning

project

6�Inchargeofstrategydevelopment,businessprocessreengineering,

employeetraining,andinternetbusinessdevelopment

6�Planning,promotion,andmanagementofinformationtechnology

6�Secretarialservicestothepresident;liaisontoaffiliates

Environmental Safety Division 6�Preservethesafetyandhealthoftheentirecompany

Central R&D Institute

6�TechnologyDevelopmentDivision

6�ProductDevelopmentDivisionI,II,III

6�BioscienceCenter

6�R&DPlanningOffice

6�Conductbasicresearchesonmicroorganism,materialapplication,nutritional

analysisandprocessingtechnology

6�R&Dofprocessingtechniquesandnewproducts

6�NewProductsdevelopmentandclinicalpromotionandapplication

6�Gatherinformation;evaluatenewbusinesspotentialsandtechnologyinvestments

Technical Group

6�TechnologyPlanningDivision

6�Yungkang,Shinshih,Taichung,

Yangmei,andJungliMainPlants

6�OEMAndODMServiceDivision

6�QualityAssuranceDivision

6�EngineeringDivision

6�Inchargeoftheproductiontechnologyateachproductionsiteincluding

thetasksofplanning,counseling,auditing,functionalmanagementand

e-applications

6�Arrangeproductionschedule,controlproductionengineering,improve

productionprocess,andmaintainsafetyandhealthduringproduction

6�ManagementofOEMmanufacturers

6�Qualitycontrolofrawmaterialsandfinishedgoods

6�Designtheproductionlinesandequipment;maintaintheelectrical,plumbing,

andmachineryoperation

Provisions Group

6�FlourDivision

6�EdibleOilDivision

6�AquaticFeedsDivision

6�AnimalFeedsDivision

6�AquaticFeedsR&DDivision

6�AnimalFeedsR&DDivision

6�FoodstuffDivision

6�Flourproductdevelopment,production,marketingandsales

6�Oilproductdevelopment,production,marketingandsales

6�Aquaticfeeddevelopment,production,marketingandsales

6�AnimalfeedDevelopment,production,marketingandsales

6�Developaquaticfeedformulaandtechnology

6�Developlivestockformulaandtechnology;providecounselingtomanagefarm

6�Foodstuffimport,processing,marketingandsales

1.2 Function of Each Division

Corporate Governance Report51� Corporate Governance Report51�

Division Function

Logistic Group

6�Cha-Nan,Kaohsiung,Taichung,

andTaipeiSalesDivision

6�KeyAccountDivision

6�ChannelServiceDivision

6�Normal-TempLogisticDivision

6�TransportationServiceDivision

6�Managementofordinarychannels,productpromotion,communication

coordinationandservice

6�Managekeyaccount,productpromotion,andcommunication/coordination

6�Manageandexpandretailchannels;providefullcoverageservicetoretailers

6�Distributionofallnormal-temperatureproducts

6�Storageandshipmentofrawmaterialsandfinishedgoods

Instant Food Group

6�InstantNoodleDivision 6�Instantnoodledevelopment,production,marketingandsales

General Foods Group

6�FrozenPreparedFoodsDivision

6�MeatDivision

6�IceCreamDivision

6�InternationalDivision

6�Sauce&SeasoningDivision

6�Frozenfooddevelopment,production,marketingandsales

6�Meatproductdevelopment,production,marketingandsales

6�Icecreamdevelopment,production,marketingandsales

6�Internationalmarketsdevelopmentandoperation

6�Soysauceandseasoningdevelopment,production,marketingandsales

Dairy & Beverage Group

6�DairyProductDivision

6�TeaBeverageDivision

6�BeverageDivision

6�Dairyproductdevelopment,production,marketingandsales

6�Teabeveragedevelopment,production,marketingandsales

6�Beveragedevelopment,production,marketingandsales

Health Group

6�BreadDivision

6�HealthFoodDivision

6�Bakingproductdevelopment,production,marketingandsales

6�Healthfooddevelopment,production,marketingandsales

Finance Group

6�FinanceDivision

6�TreasuryDivision

6�Fundplanninganddispatch

6�Undertakefinancingplanningforthecompanies,subsidiariesandaffiliates;

derivativesdevelopment;hedgingforinterestandforeignexchanges

Accounting Group

6�AccountingDivision

6�FinancialPlanningDivision

6�Accounting,taxes,propertymanagement,costcalculationandfinancialinformation

6�Investmentandbudgetplanning;investmentmanagementandcounseling,

andestablishmentofinvestorrelations

Management Group

6�PurchasingDivision

6�HumanResourcesDivision

6�AdministrativeServiceDivision

6�GlobalBusinessServiceDivision

6�LegalAffairsOffice

6�Purchasing,planning,costforecasting,inventorymanagementandcontrol

6�Recruiting,hiring,training,anddevelopmentofourhumanforces

6�Managementofdailyaffairsandentranceguard

6�Overseas’newmarketsandnewbusinessesdevelopment;backupsupports

foroverseasrepresentativeoffices

6�Dealingwiththeissuesoflitigationincidentsandlegalaffairs

Taipei Branch

6�TaipeiManagementDivision

6�PublicRelationDivision

6�Managementofhumanresources,administrativeaffairsandentryguardinTaipeioffice

6�Inchargeofpublicrelationsandinternetservicematters

Taichung Branch 6�Inchargeofinternalcommunication,resourceintegration,andtaskssupervisionin

Taichungoffice,andexternalconsumersatisfactionandpublicrelationshipinTaichungcity

1.2 Function of Each Division (Continued)


2.1 Directors and SupervisorsA. Information Regarding Directors and Supervisors (I) AsofDec.31,2006

Title NameDate

ElectedTerm(Yr.)

Date(FirstElected)

ShareholdingwhenElected

CurrentShareholdingSpouse&Minor

Shareholding EducationCurrentPositionwith

UPECandOtherCompany

Managers,DirectorsandSupervisorsareSpouseorwithin2Degreesof

ConsanguinityEachOtherShares % Shares % Shares % Title Name Relation

ChairmanKaoChyuanInv.Co.,Ltd.(Representative:Chin-YenKao)

2004.6.25 3

1987.4.25

49,921,359 1.48 143,944,359 4.29 0 -

HonoraryPh.D.(Law)ofLincolnUniv,U.S.A,HonoraryPh.D.(Mgmt)ofNat’lChengKungUniv.andNat’lSunYat-SenUniv.

(Note3)Executive

VicePresident

Chih-Hsien

Lo

Son-in-law

1967.7.1

ManagingDirector

Kao-HueiCheng 2004.6.25 3 1967.7.1 20,201,054 0.60 20,201,054 0.60 6,454,837 0.19TainanSeniorCommercialHighSchool

(Note3) - - -

ManagingDirector

Chang-ShengLin 2004.6.25 3 1980.6.1 29,703,931 0.88 29,703,931 0.89 2,068,319 0.06 Nat’lChengKungUniv. (Note3) - - -

DirectorGiantAttemptLtd.(Representative:Ping-ChihWu)

2004.6.25 31986.8.15

29,970,314 0.89 24,866,043 0.74 0 -M.D.,UniversityofSouthernCalifornia,U.S.A.

(Note3)- - -

1992.6.1

Director Hsiu-JenLiu 2004.6.25 3 1983.6.1 52,575,709 1.56 52,075,709 1.55 0 -HonoraryPh.D.ofLincolnUniv,U.S.A.

1.ChairmanofSoAnCo.,Ltd.

2.ChairmanofSanShiInv.Corp.

- - -

Director Po-MingHou 2004.6.25 3 1992.6.1 87,218,498 2.58 87,218,498 2.60 0 -ChineseCultureUniversity

(Note3) Director

Ching-ChienHouSu

Sister-in-law

Director Ying-JenWu 2004.6.25 3 1992.6.1 5,710,677 0.17 4,010,677 0.11 1,283,434 0.04 TunghaiUniversity

1.SupervisorofShinOceanEnterprisesCo.,Ltd.

2.SupervisorofShinHoShingInv.Co.,Ltd.

- - -

DirectorYoungYunInv.Co.,Ltd.(Representative:Chung-HoWu)

2004.6.25 32004.6.25

4,353,287 0.13 4,353,287 0.13 0 -FuJenCatholicUniversity

ViceChairman&PresidentofSanHsinSpinningCo.Ltd.

- - -

1999.6.1

Director Ching-ChienHouSu 2004.6.25 3 1992.6.1 41,532 0.00 41,532 0.00 107,355,730 3.20KaohsiungMedicalUniversity

SupervisorofTainanSpinningCo.,Ltd.

DirectorPo-

MingHou

Brother-in-law

Supervisor Kao-KengChen 2004.6.25 3 1967.7.1 28,464,576 0.84 28,464,576 0.85 0 -NationalTaipeiUniversityofTechnology

SupervisorofTainanSpinningCo.,Ltd.

ManagerJing-XingChen

Son

SupervisorChauChihInv.Co.,Ltd.(Representative:Peng-ChihKuo)

2004.6.25 31998.6.1

8,819,997 0.26 8,819,997 0.26 0 -NationalTaiwanUniversity

ChairmanofWisdomFlowerCorp.

- - -

1999.5.1

Supervisor JoeJ.T.Teng 2004.6.25 3 2001.6.1 3,277,058 0.10 3,277,058 0.10 0 -MBA,U.C.Berkley,U.S.A.

RepresentativeofMainlandChinaAreaofPresidentCapitalManagementCo.

- - -

Note1:Shareholdingbynomineearrangement:None.Note2:Directors,supervisorswhohaveeverholdpositionsintheauditor’sagencyoritsaffiliatedcompanies:None.

2. Directors’, Supervisors’ and Managers’ Information


Note3:Currentpositionwithothercompany

Name Current Position with Other Company

Chin-YenKao

Chairmanof：�PresidentChainStoreCorp.,TonYi IndustrialCorp.,TTETUnionCorp.,Guang

DanCommodityCorp.PresidentFairDevelopmentCorp.,President International

DevelopmentCorp.,ScinoPharmTaiwanLtd.,ScinoPhamBiochemicalTechnology

Co.,Ltd.,KaoChyuan Inv.Co.,Ltd.,Uni-PresidentAssetsManagementCo.,Ltd.,

Uni-PresidentDevelopmentCorp.SouthernTaiwanUniversityofTech.

Directorof：�PrinceHousingDevelopmentCorp.,TaChenConstruction&EngineeringCorp.,

TainanSpinningCo., Ltd., Han Tech VentureCapital Corp., CDIB&Partners

InvestmentHoldingCorp.,ToppolyOptoelectronicsCorp.,PKVentureCapitalCorp.,

PCS(BVI)HoldingsLtd.,PCSC(China)Ltd.,PCS(Labuan)HoldingsLtd.,PCSC(China)

DrugstoreLtd.,PCSC(China)SupermarketLtd.,CaymanPresidentHoldingsLtd.,Kai

Yu (BVI) InvestmentCo.,Ltd.,PresidentEnergyDevelopment (Cayman Islands)Ltd.,

GlobalStrategicInvestmentInc.,Uni-HomeTech.

Supervisorof：NanFanHousingDevelopmentCo.,Ltd.

Kao-HueiCheng

Chairmanof：TainanSpinningCo.,Ltd.,NanFanHousingDevelopmentCo.,Ltd.

Directorof：�ScinoPharmTaiwanLtd.,President InternationalDevelopmentCorp.,Southern

TaiwanUniversityofTech.,KengTingEnterprisesCo.,Ltd.,UniversalVentureCapital

InvestmentCorp.,ScinoPhamBiochemicalTechnologyCo.,Ltd.,MingDaEnterprises

Co.,Ltd.,Joyful InvestmentCo.,Ltd.,Uni-PresidentAssetsManagementCo.,Ltd.,

PresidentFairDevelopmentCorp.,TaiwanTexileResearchInstitute

Chang-ShengLin

Chairmanof：�President Baseball TeamCorp., PresidentNatural Industrial Corp.,Mospec

SemiconductorCorp.,PresidentPharmaceuticalCorp.,TonYiPharmaceutical

Corp.,PresidentCoffeeCorp.,QwareSystem&ServicesCorp.,PresidentTransnet

Corp.,Uni-PresidentDepartmentStoreCorp.,PresidentLifeSciencesCo.,Ltd.,

TungLiDevelopmentCorp.,PresidentCollectServiceCo.,Ltd.,KainanPlywood&

WoodMfg.Co.,Ltd.,Uni-PresidentBiotechnologiesCo.,Ltd.,KaiYuInvestmentCo.,

Ltd.,KaiNanInvestmentCo.,Ltd.,TongYuInvestmentCorp.,TongShouInvestment

Corp.,TongChengInvestmentCorp.,TongRenCorp.Limited,PresidentEnterprises

(China)InvestmentCo.,Ltd.,XinjiangPresidentEnterprisesFoodCo.,Ltd.,Tianjiang

PresidentEnterprisesFoodCo.,Ltd.,MeishanPresidentFeed&OilCo.,Ltd.,

ZhongshanPresidentEnterprisesCo.,Ltd.,GuangzhouPresidentEnterprisesCo.,

Ltd.,ZhengzhouPresidentEnterprisesCo.,Ltd.,ChangjiagangPresidentNisshin

FoodCo.,Ltd.,BeijingPresidentEnterprisesDrinks&FoodCo.,Ltd.,Nanchang

PresidentEnterprisesCo.,Ltd.,BeijingPresidentFoodCo.,Ltd.ChengduPresident

EnterprisesFoodCo.,Ltd.,KunshanPresidentEnterprisesFoodCo.,Ltd.,Wuhan

PresidentEnterprisesFoodCo.,Ltd.,HarbinPresidentEnterprisesCo.,Ltd.,Hefei

PresidentEnterprisesCo.,Ltd.,ShenyangPresidentEnterprisesCo.,Ltd.,Shanghai

President InternationalFoodCo.,Ltd.,FuzhouPresidentEnterprisesCo.,Ltd.,

ShanghaiSongjiangPresidentEnterprisesCo.,Ltd.,WuhanUni-PresidentBread

BakeryCo.,Ltd.,KunshanPresidentKikkomanBiotechnologyCo.,Ltd.,Guangzhou

PresidentHeathlyFoodTech.Co.,Ltd.,President (Shanghai)TradingCo.,Ltd.,

ShanghaiPresidentCoffeeCo.,Ltd.,PresidentGlobalCorp.,PresidentCoffee

(Cayman)HoldingsLtd.,PresiclercLtd.,Uni-President(Vietnam)Co.,Ltd.



Chang-ShengLin

(continued)

ViceChairmanof：�PresidentNisshinCorp.,PresidentKikkoman Inc.,ToppolyOptoelectronics

Corp.,T&TSupermarketInc.

Directorof：�PresidentChainStoreCorp.,Nanlien InternationalCorp.,PresidentEntertainment

Corp.,ToneSangConstructionCorp.,ZtongYee IndustrialCo.,Ltd.,Presicarre

Corp.,TonYi IndustrialCorp.,TTETUnionCorp.,Mech-PresidentCorp.,TaChen

Construction&EngineeringCorp.,PrinceHousingDevelopmentCorp.,Uni-President

DevelopmentCorp.,Tung-HoDevelopmentCorp.,Uni-ResortCorp.,PresidentFair

DevelopmentCorp.,President InternationaldevelopmentCorp.,ScinoPharmTaiwan

Ltd.,PresidentTokyoCorp.,PresidentTokyoAutoLeasingCorp.,PKVentureCapital

Corp.,PresitexCo.,Ltd.,ScinoPhamBiochemicalTechnologyCo.,Ltd.,TongTing

GasCorp.,TaiwanGenomeScienceInc.,KuanTangIndustrialHarborCorp.,KanhNa

HsiungEnterpriseCo.,Ltd.,Uni-SplendorCorp.,CenturyQuickServiceRestaurant

Corp.,HontungVentureCapitalCo.,Ltd.,UnionChineseCorp.,PresidentDirect

MarketingCorp.,DayehTakashimayaDepartmentStore Inc.,Uni-PresidentAssets

ManagementCo.,Ltd.,ChonggingCarrefourCommercialCo,,Ltd.,Jiafu (Tianjing)

InternationalTradingCo.,Ltd.,XiangLu IndustrialLtd.,XiangLuPetrochemicals

(Xiamen)Co.,Ltd.,GuangzhouJiaguangSupermarketCo.,Ltd.,ZtongYee (Tianjin)

IndustrialCo.,PCS (BVI)HoldingsLtd.,PCSC (China)Ltd.,PCS (Labuan)Holdings

Ltd.,PCSC (China)DrugstoreLtd.,PCSC (China)SupermarketLtd.,Uni-President

AsiaHoldingLtd.,KaiNan (BVI) InvestmentCo.,Ltd.,Outlook InvestmentPte.Ltd.,

eASPNetInc.,eASPNetTaiwanInc.,PresidentEnergyDevelopment(CaymanIslands)

Ltd.,President InternationalTrade&Investment(BVI)Corp.,Uni-PresidentSoutheast

AsiaHoldingsLtd.,Uni-PresidentOvenBakery(BVI)InvestmentCo.,Ltd.

C.E.O.of：Uni-PresidentGroup

Presidentof：KaiYuInvestmentCo.,Ltd.,KaiNanInvestmentCo.,Ltd.

Ping-ChihWu

Directorof：�Uni-PresidentAssetsManagementCo.,Ltd.,PresidentPharmaceuticalCorp.,TonYi

PharmaceuticalCorp.

Presidentof：PresidentGlobalCorp.

Po-MingHou

ViceChairmanof：TainanSpinningCo.,Ltd.

ManagingDirector：NantexIndustryCo.,Ltd.

Directorof：�PrinceHousingDevelopmentCorp.,Nan FanHousingDevelopmentCo., Ltd.,

PresidentEntertainmentCorp.,QwareSystem&ServicesCorp.

Presidentof：TainanSpinningCo.,Ltd.


B. List of Major Shareholders of UPEC’s Institutional Shareholders AsofDec.31,2006UPEC’s Institutional Shareholders Major Shareholders of UPEC’s Institutional Shareholders (Holding Percentage)

GiantAttemptLtd.

Shiu-ChiWu(2.47%),Chao-MeiWuTseng(8.24%),Ping-ChihWu(20.60%),Ping-Yuan

Wu(20.60%),Chien-TeWu(18.71%),Wei-TeWu(18.71%),Su-MeiHuang(8.88%),

ChangTaInv.Co.,Ltd.(1.41%),Hsin-HsiungChang(0.06%),Ching-MeiWu(0.06%)

KaoChyuanInv.Co.,Ltd.

Chin-YenKao(1.48%),HuanKuoLai(15.86%),Hsiu-LingKao(59.87%),Chih-Hsien

Lo(20.09%),Han-DiLin(0.98%),Tze-YiKao(0.58%),Cheng-HsienKao(0.37%),

Cheng-JungKao(0.19%),Chi-ChengKao(0.19%),Chun-ChenKao(0.01%)

YoungYunInv.Co.,Ltd.

Thun-ChihWu(0.70%),ChinWuWang(0.70%),Chung-ChengWu(23.80%),Chung-

ChienWu(23.80%),Man-HuiWu(8.50%),Pao-HuiWu(8.5%),Chung-HoWu

(26.35%),Mei-HsiangChen(3.40%),Ai-KueiHuang(3.40%),WuChunChiehCharity

Fundation(0.85%)

ChauChihInv.Co.Ltd.

Chao-HsingKuo(1.67%),Hsien-NuKuoHsu(1.67%),Peng-ChihKuo(25.16%),Chi-

FenChang(2.5%),Ying-ChungLin(2.5%),Jing-ChungKuo(32.22%),Hung-JiKuo

(29.28%),Cheng-YiKuo(2.27%),Cheng-ChunKuo(2.27%),Yu-YingKuo(0.2%)

C. List of Institutional Shareholders of The Major Shareholders

Institutional Shareholders Major Shareholders of the Institutional Shareholders (Holding Percentage)

ChangTaInv.Co.,Ltd.

Shiu-ChiWu(1.01%),Chao-MeiWuTseng(1.01%),Ping-ChihWu(22.73%),Ping-Yuan

Wu(22.73%),Wei-TeWu(22.73%),Chien-TeWu(22.73%),Su-MeiHuang(1.01%),

Shu-NuWu(1.01%),Chonz-HweiHonz(1.01%),Ching-MeiWu(0.5%)

WuChunChiehCharity

Fundation

Chin-YenKao(0%),Tsung-LunWu(0%),Man-HuiWu(0%),Chung-ChienWu(0%),Pao-

HuiWu(0%),Chung-HoWu(0%),Lung-HunSun(0%),Tien-MaoLin(0%),Feng-Shan

Wu(0%),Ping-HuangYan(0%)


D. Information Regarding Directors and Supervisors (II)

Terms

Name

Five or More Years Experience or

Professional QualificationCriteria (Note)

Number of

Companies

Also

Serves as

Independent

Director

for

Lecturer

or above in

Business,

Law,

Finance,

Accounting

or Corporate

Business

Related

Fields

Qualification

of Justice,

Procurator,

Attorney,

CPA,

Specialist or

technician

of National

Examination

in Corporate

Business

Related

Fields

Experience

in Business,

Law,

Finance,

Accounting,

or Corporate

Business

Related

Fields

1 2 3 4 5 6 7 8 9 10

KaoChyuan

Inv.Co.,Ltd.

(Representative:

Chin-YenKao)

- - - - 0

Kao-HueiCheng - - - - - - - - 0

Chang-ShengLin - - - - - - - 0

Giant

AttemptLtd.

(Representative:

Ping-ChihWu)

- - - - - - - 0

Hsiu-JenLiu - - - - - - - 0

Po-MingHou - - - - - 0

Ying-JenWu - - - - - - - - - - 0

YoungYun

Inv.Co.,Ltd.

(Representative:

Chung-HoWu)

- - - - - - - 0

Ching-ChienHou

Su- - - - - 0

Kao-KengChen - - - - - - - - - - 0

ChauChih

Inv.Co.,Ltd.

(Representative:

Peng-ChihKuo)

- - - - - - - - - 0

JoeJ.T.Teng - - - - - - - - - - 0

Note：

Directorsorsupervisors,duringthetwoyearsbeforebeingelectedorduringthetermofoffice,havebeenorbeany


ofthefollowing,pleaseticktheappropriatecorrespondingboxes：

1.Notanemployeeofthecompanyoranyofitsaffiliates；

2.Notadirectororsupervisorof thecompanyoranyof itsaffiliates.Thesamedoesnotapply,however, incases

wheretheperson isan independentdirectorof thecompany, itsparentcompanyoranysubsidiary inwhichthe

companyholds,directlyorindirectly,morethan50%ofthevotingshares；

3.Notanatural-personshareholderwhoholdsshares,togetherwiththoseheldbytheperson’sspouse,minorchildren,

orheldbythepersonunderothers’names, inanaggregateamountof1%ormoreof thetotalnumber if issued

sharesofthecompanyorrankinginthetop10inholdings；

4.Notaspouse,relativewithintheseconddegreeofkinship,orlinealrelativewithinthefifthdegreeofkinship,ofany

ofthepersonsintheprecedingthreesubparagraphs；

5.Notadirector,supervisor,oremployeeofacorporateshareholder thatdirectlyholds5%ormoreof the total

numberifissuedsharesofthecompanyorthatholdssharesrankinginthetopfiveinholdings；

6.Notadirector,supervisor,officer,orshareholderholding5%ormoreof theshares,ofaspecifiedcompanyor

institutionthathasafinancialorbusinessrelationshipwiththecompany

7.Notaprofessional individualwho,oranowner,partner,director,supervisor,orofficerofasoleproprietorship,

partnership,company,orinstitutionthat,providescommercial, legal,financial,accountingservicesorconsultation

tothecompanyortoanyaffiliatedofthecompany,oraspousethereof；

8.Nothavingamarital relationship,ora relativewithin theseconddegreeofkinship toanyotherdirectorof the

company；

9.NotbeenapersonofanyconditionsdefinedinArticle30oftheCompanyLaw；and

10.Notagovernmental,juridicalpersonoritsrepresentativeasdefinedinArticle27oftheCompanyLaw.


2.2 Information of Management TeamAsofDec.31,2006

Title NameDate

Effective

ShareholdingSpouse & Minor

ShareholdingEducation &Experience

(Note2)

Current Position

with Other

Company

Managers are Spouse or within 2 Degrees of

Consanguinity Each Other

Shares % Shares % Title Name Relation

President Lung-YiLin 2003.07.01 1,034,223 0.03 877,035 0.03NationalChengKungUniversity

(Note3) - - -

ExecutiveVicePresident

Chih-HsienLo 2003.07.01 2,523,598 0.07 54,989,946 1.64 MBA,UCLA,U.S.A. (Note3) ChairmanChin-YenKao

Father-in-law

VicePresident Hua-YangLee 2002.03.01 0 - 61,141 0.00 TohokuUniv.,Japan (Note3) - - -

VicePresident Po-RongYen 2002.03.01 422,713 0.01 0 - AletheiaUniversity (Note3) - - -

VicePresident Chin-TsonChung 2002.03.01 7,849 0.00 23,864 0.00 SoochowUniversity (Note3) - - -

VicePresident Wen-LungYang 2005.01.01 0 - 0 -NationalChungHsingUniversity

(Note3) - - -

VicePresident Chih-PengHsieh 2005.01.01 0 - 0 -NationalChungHsingUniversity

(Note3) - - -

AssistantVicePresident

Chien-ChangChen

2000.02.01 0 - 50,359 0.00ChineseCultureUniversity

(Note3) - - -


Fu-ShangYang 2002.03.01 199,493 0.00 131,507 0.01NationalChungHsingUniversity

(Note3) - - -


Hong-BinLee 2002.03.01 0 - 0 -FuJenCatholicUniversity

(Note3) - - -


Chung-SungWu 1997.04.08 0 - 0 -MBA,OklahomaStateUniversity,U.S.A.

(Note3) - - -


Tsung-MingSu 2000.08.01 0 - 0 -MBA,IowaStateUniversity,U.S.A.

(Note3) - - -


Chien-LiYin 2001.12.01 134,189 0.00 21,236 0.00NationalChungHsingUniversity

(Note3) - - -


Long-HongLu 2003.05.01 0 - 1,384 0.00NationalChengKungUniversity

(Note3) - - -


IkeuchiChihiro 2004.10.18 0 - 0 -NipponVeterinaryandanimalScienceUniv.,Japan

NA - - -


Ying-ThungYu 2005.01.01 0 - 34,810 0.00EMBA,NationalChengKungUniversity

(Note3) - - -


Jui-ShengWang 2005.01.01 0 - 11,302 0.00EMBA,NationalChengKungUniversity

(Note3) - - -


Jui-TienHuang 2005.01.01 28,000 0.00 0 -Master,NationalKaohsiungFirstUniv.ofScienceandTech.

(Note3) - - -

Note1:Shareholdingbynomineearrangement：None.

Note2:Managerswhohaveeverholdpositionsintheauditor’sagencyoritsaffiliatedcompanies：None.

Note3:Currentpositionwithothercompany

Corporate Governance Report5�0 Corporate Governance Report5�1


Lung-YiLin

Chairmanof：�Uni-PresidentGlassIndustrialCo.,Ltd.,Uni-PresidentOrganicsCorp.,QingdaoPresi-

dentFeed&LivestockCo.,Ltd.

ViceChairmanof：�Uni-President(Vietnam)Co.,Ltd.,PresidentEnterprises(China)InvestmentCo.,Ltd.

Directorof：�PresidentChainStoreCorp.,Nanlien InternationalCorp.,PresidentEntertainment

Corp.,PresidentBaseballTeamCorp.,ToneSangConstructionCorp,RetailSupport

InternationalCorp.,PresidentNisshinCorp.,Mech-PresidentCorp.,PrinceHousing

DevelopmentCorp.,TaChenConstruction&EngineeringCorp.,MospecSemicon-

ductorCorp.,TungHoDevelopmentCorp.,Uni-ResortCorp.,PresidentTokyoCorp.,

PresidentTokyoAutoLeasingCorp.,PresidentKikkomanInc.,KaiYuInvestmentCo.,

Ltd.,PresidentFairDevelopmentCorp.,President InternationalDevelopmentCorp.,

KaiNan InvestmentCo.,Ltd.,PresidentTransnetCorp.,Uni-PresidentDevelopment

Corp.,Uni-PresidentOvenBakeryCorp.,TongYuInvestmentCorp.,TongShouInvest-

mentCorp.,TongChengInvestmentCorp.,PresitexCo.,Ltd.,Uni-HomeTech.Corp.,

CenturyQuickServiceRestaurantCorp.,PresidentDrugstoreBusinessCorp.,Uni-

PresidentAssetsManagementCo.,Ltd.,KainanPlywood&WoodMfg.Co.,Ltd.,Xin-

jiangPresidentEnterprisesFoodCo.,Ltd.,BeijingPresidentFoodCo.,Ltd.,Tianjiang

PresidentEnterprisesFoodCo.,Ltd.,MeishanPresidentFeed&OilCo.,Ltd.,Zhong-

shanPresidentEnterprisesCo.,Ltd.,GuangzhouPresidentEnterprisesCo.,Ltd.,

ZhengzhouPresidentEnterprisesCo.,Ltd.,ChangjiagangPresidentNisshinFoodCo.,

Ltd.,BeijingPresidentEnterprisesDrinks&FoodCo.,Ltd.,NanchangPresidentEn-

terprisesCo.,Ltd.,ChengduPresidentEnterprisesFoodCo.,Ltd.,KunshanPresident

EnterprisesFoodCo.,Ltd.,WuhanPresidentEnterprisesFoodCo.,Ltd.,HarbinPresi-

dentEnterprisesCo.,Ltd,HefeiPresidentEnterprisesCo.,Ltd.,ShenyangPresident

EnterprisesCo.,Ltd.,FuzhouPresidentEnterprisesCo.,Ltd.,ShanghaiSongjiang

PresidentEnterprisesCo.,Ltd.,Jiafu(Tianjing)InternationalTradingCo.,Ltd.,Guang-

zhouPresidentHealthyFoodTechnologyCo.,Ltd.,PresidentCosmedChainStore

(ShenZhen)Co,Ltd.,XiangLuPetrochemicals(Xiamen)Co.,Ltd.,PresidentEnergy

Develop.(Cayman)Ltd.,NingboMaltingCo.,Ltd.,ProspectTopDevelopmentsLtd.

Supervisorof：�PresicarreCorp.,CharngYangDevelopmentCo.,Ltd.,CarrefourStores (Taiwan)

Co.,Ltd.,TonYi IndustrialCorp.,GrandBillsFinanceCorp.,ScinoPharmTaiwan

Inc.,ScinoPharmBiochemicalTechnologyCo.,Ltd.,PresidentCollectServiceCo.

Ltd.,TungLiDevelopmentCorp.,ZtongYeeIndustrialCo.,Ltd.,ZtongYee(Tianjin)

IndustrialCo.,Ltd.



Chih-HsienLo

Chairmanof：�PrescoNetmarketing Inc.,Uni-PresidentColdChainCorp.,ParabolaCreative

Inc., PresidentPackagingCorp., PresidentMusashinoCorp.,Uni-OAOTravel

ServiceCorp.,Xin-YaEnterprisesCorp.,Tung-HsiangEnterprisesCorp.,Tung-

ShunEnterprisesCorp.,Uni-PresidentInternational(HK)Co.,Ltd.,Sanshuijianlibao

CommerceCo.,Ltd.Uni-President (Thailand)Ltd.,Uni-PresidentFoodsCorp.,Uni-

President(Philippines)Corp.

ViceChairmanof：�PresidentEnterprises(China)InvestmentCo.,Ltd.

Directorof：�PresidentChainStoreCorp.,PresidentBaseballTeamCorp.,Nanlien International

Corp.,PresidentEntertainmentCorp.,TungHoDevelopmentCorp.,Uni-President

OrganicsCorp.,PresidentFairDevelopmentCorp.,TheTaitGroupofCompanies,

President InternationalDevelopmentCorp.,Uni-PresidentGlass IndustrialCo.,Ltd.,

RetailSupport InternationalCorp.,PresidentNisshinCorp.,PresidentKikkoman

Inc.,KaiYu InvestmentCo.,Ltd.,KaiNanInvestmentCo.,Ltd.,TongYuInvestment

Corp.,TongShouInvestmentCorp.,TongChengInvestmentCorp.,Muji(Taiwan)Co.,

Ltd.,PresidnetCoffeeCorp.,Uni-PresidentVendorCorp.,KuangChuanDairyCo.,

Ltd.,KuangChuanFoodsCo.,Ltd.,President InvestmentTrustCorp.,Uni-President

AssetsManagementCo.,Ltd.,CenturyQuickServiceRestaurantCorp.,Guangzhou

PresidentHealthyFoodTechnologyCo.,Ltd.,XinjiangPresidentEnterprisesFood

Co.,Ltd.,BeijingPresidentFoodCo.,Ltd.,WuhanPresidentEnterprisesFoodCo.,

Ltd.,KunshanPresidentEnterprisesFoodCo.,Ltd.,ChengduPresidentEnterprises

FoodCo.,Ltd.,MeishanPresidentFeed&OilCo.,Ltd.,GuangzhouPresidentEnter-

prisesCo.,Ltd.,ShenyangPresidentEnterprisesCo.,Ltd.,ChangjiagangPresident

Nisshin FoodCo., Ltd.,QingdaoPresident Feed&LivestockCo., Ltd.,Harbin

PresidentEnterprisesCo.,Ltd,HefeiPresidentEnterprisesCo.,Ltd.,Shanghai

President InternationalFoodCo.,Ltd.,KunshanPresidentKikkomanBiotechnology

Co.,Ltd.,BeijingPresidentEnterprisesDrinks&FoodCo.,Ltd.,FuzhouPresident

EnterprisesCo.,Ltd.,NanchangPresidentEnterprisesCo.,Ltd.,Cargill-President

(Dongguan)FeedProteinTechnologyCo.,Ltd.,BeijingPresidentKirinBevergeCo.,

Ltd.,President (Shanghai)TradingCo.,Ltd.,ZhengzhouPresidentEnterprisesCo.,

Ltd., JinmailangBeverage(Beijing)Co.,Ltd.,ChancshuPresidentPackagingCo.,

Ltd.,YantaiNorthAndreJuiceCo.,Ltd.,NingboMaltingCo.,Ltd.,ProspectTop

DevelopmentsLtd.,Uni-President (Vietnam)Co.,Ltd.,PTABCPresidentEnterprises

Indonesia,CargillPresidentHoldingsPte.Ltd.

Supervisorof：KaoChyuanInv.Corp.

Hua-YangLee

Directorof：�President Natural Industrial Corp., President Pharmaceutical Corp., Ton Yi

PharmaceuticalCorp.,President InternationalDevelopmentCorp.,Uni-President

OrganicsCorp.,Uni-PresidentOvenBakeryCorp.,Uni-PresidentBiotechnologiesCo.,

Ltd.,PresidentScinoPharmTechnologyCo.,Ltd.,XinjiangPresident-Scinopharm

TechnologyCo.,Ltd.,ScinoPharmBiochemicalTechnologyCo.,Ltd.,WuhanUni-

PresidentBreadBakeryCo.,Ltd.

Corporate Governance Report5�� Corporate Governance Report5��


Po-RongYen

Chairmanof：TungHsiangCorp.,TungChuEnterprisesCorp.

Directorof：�Wine-Well InternationalCorp.,Huei-TungEnterpriseCorp.,Kun-FuCorp.,Chao-Tung

EnterprisesCorp.,Huairen InternationalCo.,Ltd.,Nanlien InternationalCorp.,Tung

YuanCorp.,Uni-PresidentVendorCorp.,TungAngEnterprisesCorp.,UnionChinese

Corp.

Chin-TsonChung

Chairmanof：PresidentFutureCorp.

Directorof：�PresidentInternationalDevelopmentCorp.,AllianzPresidentLifeInsuranceCo.,Ltd.,

GrandBillsFinanceCorp.President InvestmentTrustCorp.,SYNnersyScienTech

Corp.

Wen-LungYang

Chairmanof：Uni-PresidentVendorCorp.,TungAngEnterprisesCorp.

Directorof：�PresidentChainStoreCorp.,ParabolaCreative Inc.,TheTaitGroupofCompanies,

TonYi IndustrialCorp.,Tung-LiEnterprisesCorp.,Mao-TungCorp.,Tung-Huang

EnterprisesCorp.,PresidentEnterprises (China) InvestmentCo.,Ltd.,Uni-President

(Thailand)Ltd.,Uni-PresidentMarketingCo.,Ltd.,PTABCPresidentEnterprisesIndo-

nesia,Uni-President(Philippines)Corp.,Uni-President(Vietnam)Co.,Ltd.

Supervisorof：Chi-ChiangCorp.,Yuan-TaiEnterprisesCorp.,Tung-YiEnterprisesCorp.

Chih-PengHsieh

Chairmanof：�TungGuanEnterprisesCo.,Ltd.,TungJunInternationalCorp,PresidnetFuche(Qin-

gdo)Co.,Ltd.

Directorof：�President Securities Corp., President Nisshin Corp., President International

DevelopmentCorp.,PresidentPackagingCorp.,Cargill-President (Dongguan)Feed

ProteinTechnologyCo.,Ltd.,SanTongWanfu (Qingdao)FoodCo.,Ltd.,Dalian

BeiliangLogisticsServicesCo.,Ltd.,HuangYiEnterprisesCorp.,TianjiangPresident

EnterprisesFoodCo.,Ltd.,MeishanPresidentFeed&OilCo.,Ltd.,ZhongshanPresi-

dentEnterprisesCo.,Ltd.,ChangjiagangPresidentNisshinFoodCo.,Ltd.,President

Enterprises (China) InvestmentCo.,Ltd.,QingdaoPresidentFeed&LivestockCo.,

Ltd.,ShanghaiSongjiangPresidentEnterprisesCo.,Ltd.,SuzhouPresidentPackag-

ingCo.,Ltd.,PCSC(Vietnam)SupermarketLtd.,Uni-President(Vietnam)Co.,Ltd.,PT

ABCPresidentEnterprisesIndonesia,CargillPresidentHoldingsPte.Ltd.

Supervisorof：TTETUnionCorp.

Chien-ChangChenChairmanof：TungShenCorp.,MaoTungCorp.

Directorof：TungGuanEnterprisesCo.,Ltd.,TungYuanCorp.,FaTungEnterprisesCorp.

Fu-ShangYangDirectorof：�Uni-PresidentOrganicsCorp.,PresidentMusashinoCorp.,CenturyQuickServiceRes-

taurantCorp.,Uni-President(Vietnam)Co.,Ltd.

Hong-BinLee

Directorof：�ParabolaCreative Inc.,Tung-HongMediaCorp.,PresidentBaseballTeamCorp.,

Uni-PresidentDreamParksCorp.,Uni-OAOTravelServiceCorp.,Uni-President

International(HK)Co.,Ltd.

Presidentof:Uni-PresidentDreamParksCorp.

Chung-SungWuChairmanof：Xin-TungCorp.

Directorof：TungChuEnterprisesCorp.,HanLinPublishingCo.,Ltd.



Tsung-MingSu

Directorof：PresidentInternationalDevelopmentCorp.

Supervisorof：�GrandBillsFinanceCorp.,Nanlien InternationalCorp.,PrescoNetmarketing Inc.,

PresidentTokyoCorp.,PresidentTokyoAutoLeasingCorp.

Chien-LiYin

Directorof：GrandBillsFinanceCorp.

Supervisorof：�President Chain Store Corp., President Entertainment Corp., Tone Sang

ConstructionCorp.,ParabolaCreative Inc.,PresidentNatural IndustrialCorp.,

MospecSemiconductorCorp.,PresidentPackagingCorp.,PresidentMusashino

Corp.,President InvestmentTrustCorp.,KaiYu InvestmentCo.,Ltd.,TungHo

DevelopmentCorp.,Uni-ResortCorp.,PresidentFairDevelopmentCorp.,President

InternationalDevelopmentCorp.,Uni-PresidentOrganicsCorp.,Uni-President

DreamParksCorp.,PresidentLifeSciencesCo.,Ltd.,TheTaitGroupofCompa-

nies,KaiNan InvestmentCo.,Ltd.,PresidentNisshinCorp.,PresidentKikkoman

Inc.,Uni-PresidentGlass IndustrialCo.,Ltd.,Uni-PresidentBiotechnologiesCo.,

Ltd.Uni-PresidentVendorCorp.,CenturyQuickServiceRestaurantCorp.,Uni-OAO

TravelServiceCorp.,KainanPlywood&WoodMfg.Co.,Ltd.,Uni-PresidentAssets

ManagementCo.,Ltd.,PresidentInvestmentCorp.,PresidentLeasingCorp.,Tung-

HongMediaCorp.

Long-HongLu

Directorof：�MospecSemiconductorCorp.,Uni-PresidentGlass IndustrialCo.,Ltd.,President

PackagingCorp.,PresidentMusashinoCorp.,Uni-President(Thailand)Ltd.,Uni-Presi-

dent(Vietnam)Co.,Ltd.,PresidentEnergyDevelop.(Cayman)Ltd.

Ying-ThungYu

Chairmanof：Tung-LienEnterprisesCorp.,TungYuanCorp.

Directorof：Chuang-ShengEnterprisesCorp.,Dong-JinEnterprisesCorp.

Presidentof：TungYuanCorp.

Jui-ShengWang

Chairmanof：Tung-HuangEnterprisesCorp.,TungMinTeaCorp.

ViceChairmanof：KunshanPresidentKikkomanBiotechnologyCo.,Ltd.

Directorof：PresidentKikkomanInc.,TungHsiangCorp.

Supervisorof：Hui-ShengEnterpriseCorp.,TungCheEnterprisesCorp.

Jui-TienHuang

Chairmanof：Cheng-WangCorp.

Directorof：�Uni-PresidentColdChainCorp.,Uni-OAOTravelServiceCorp.,ParabolaCreativeInc.,

TungAngEnterprisesCorp.,TungHsiangCorp.,Uni-President(Thailand)Ltd.

Supervisorof：Kun-FuCorp.,Chen-YangFoodCorp.,Chang-YuanEnterprisesCorp.


2.3 Remuneration Paid to Directors, Supervisors and ManagersA. Remuneration Paid to Directors

Title Name

Remuneration Paid to Directors Directors’ Salary, Compensation, and

Allowance (A+B+C) as % 2006 Net Income

Compensation Earned as Employee of UPEC or of UPEC Subsidiary Affiliates Total Compensation Paid to Directors

(A+B+C+D+E) as% 2006 Net Income Other

Compensationfrom Non-SubsidiaryAffiliates

Salary (A)Compensation (B)

(Note 1)Allowance (C)

(Note 2)Salary, Bonus..etc.(D)

(Note 3)Employee Profit Sharing (E) ESOP (F)

UPECConsolidatedSubsidiaries

of UPECUPEC

ConsolidatedSubsidiaries

of UPECUPEC


of UPECUPEC


of UPECUPEC


of UPEC


of UPECUPEC


of UPECUPEC


of UPECCash Stock Cash Stock

ChairmanKao Chyuan Inv. Co., Ltd. (Representative: Chin-Yen Kao)

4,692 24,571 69,632 72,818 12,540 14,160 2.41% 1.79% 6,001 12,687 0 0 0 0 0 0 2.57% 1.99% 16,736

ManagingDirector

Kao-Huei Cheng

ManagingDirector & C.E.O.

Chang-Sheng Lin

DirectorGiant Attempt Ltd. (Representative: Ping-Chih Wu)

Director Hsiu-Jen Liu

Director Po-Ming Hou

Director Ying-Jen Wu

DirectorYoung Yun Inv. Co., Ltd. (Representative: Chung-Ho Wu)

Director Ching-Chien Hou Su

Level of Amounts of CompensationTotal Compensation Paid to Directors as %

2006 Net Income (A+B+C)Total Compensation Paid to Directors as %

2006 Net Income (A+B+C+D+E)

UPEC All investees UPEC All investees

UnderNT$2,000,000

NT$2,000,000～NT$5,000,000

NT$5,000,000～NT$10,000,000

GiantAttemptLtd.(Representative:Ping-ChihWu),Hsiu-JenLiu,Po-MingHou,Ying-JenWu,YoungYunInv.Co.,Ltd.(Representative:Chung-HoWu),Ching-ChienHouSu



Hsiu-JenLiu,Po-MingHou,Ying-JenWu,YoungYunInv.Co.,Ltd.(Representative:Chung-HoWu),Ching-ChienHouSu

NT$10,000,000～NT$15,000,000 Kao-HueiCheng,Chang-ShengLin Kao-HueiCheng Kao-HueiCheng Kao-HueiCheng

NT$15,000,000～NT$30,000,000KaoChyuanInv.Co.,Ltd.(Representative:Chin-YenKao)

Chang-ShengLinKaoChyuanInv.Co.,Ltd.(Representative:Chin-YenKao),Chang-ShengLin

Chang-ShengLin,GiantAttemptLtd.(Representative:Ping-ChihWu)

NT$30,000,000～NT$50,000,000

NT$50,000,000～NT$100,000,000KaoChyuanInv.Co.,Ltd.(Representative:Chin-YenKao)

KaoChyuanInv.Co.,Ltd.(Representative:Chin-YenKao)

OverNT$100,000,000


Title Name

Remuneration Paid to Directors Directors’ Salary, Compensation, and

Allowance (A+B+C) as % 2006 Net Income

Compensation Earned as Employee of UPEC or of UPEC Subsidiary Affiliates Total Compensation Paid to Directors

(A+B+C+D+E) as% 2006 Net Income Other

Compensationfrom Non-SubsidiaryAffiliates

Salary (A)Compensation (B)


(Note 2)Salary, Bonus..etc.(D)

(Note 3)Employee Profit Sharing (E) ESOP (F)


of UPECUPEC


of UPECUPEC


of UPECUPEC


of UPECUPEC


of UPEC


of UPECUPEC


of UPECUPEC



ChairmanKao Chyuan Inv. Co., Ltd. (Representative: Chin-Yen Kao)

4,692 24,571 69,632 72,818 12,540 14,160 2.41% 1.79% 6,001 12,687 0 0 0 0 0 0 2.57% 1.99% 16,736

ManagingDirector

Kao-Huei Cheng

ManagingDirector & C.E.O.

Chang-Sheng Lin

DirectorGiant Attempt Ltd. (Representative: Ping-Chih Wu)

Director Hsiu-Jen Liu

Director Po-Ming Hou

Director Ying-Jen Wu

DirectorYoung Yun Inv. Co., Ltd. (Representative: Chung-Ho Wu)

Director Ching-Chien Hou Su

Unit:NT$thousands

Note1：�TheBoardadoptedaproposalfor2006compensationtoUPEC'sdirectorsandsupervisorsintheamountof

NT$89,527thousandatitsmeetingonApr.26,2007.Theproposalcompensationwillbeeffecteduponthe

approvalofshareholdersattheAnnualShareholderMeetinginJune,2007.

Note2：�Includesallowancesforcompanycars.TheCompanypaysPresidentTokyoCorp.NTD1,860thousanddollars

torent1sedanfor theuseofchairman.CompensationpaidtocompanydriverstotaledNT$707thousand

dollars.

Note3：�TheCompanypaysPresidentTokyoCorp.NTD2,173thousanddollarstorent1sedanfortheuseofC.E.O.

CompensationpaidtocompanydriverstotaledNT$1,038thousanddollars.


B. Remuneration Paid to Supervisors Unit:NT$thousands

Title Name

Remuneration Paid to Supervisors Directors’ Salary,

Compensation, and

Allowance (A+B+C) as

% 2006 Net Income

Other

Compensation

from Non-

Subsidiary

Affiliates

Salary (A) Compensation (B)


UPEC

Consolidated

Subsidiaries of

UPEC

UPEC

Consolidated

Subsidiaries of

UPEC

UPEC

Consolidated

Subsidiaries of

UPEC

UPEC

Consolidated

Subsidiaries

of UPEC

Supervisor Kao-KengChen

0 0 19,895 19,895 720 720 0.57% 0.33% 360Supervisor

C h a u C h i h

I nv. Co. , L td .

(Representative:

Peng-ChihKuo)

Supervisor JoeJ.T.Teng

Level of Amounts of CompensationTotal Compensation Paid to Directors as % 2006 Net Income (A+B+C)

UPEC All investees

UnderNT$2,000,000

NT$2,000,000～NT$5,000,000

NT$5,000,000～NT$10,000,000

Kao-KengChen,ChauChih Inv.Co.,

Ltd. (Representative:Peng-ChihKuo),

JoeJ.T.Teng

Kao-KengChen,ChauChih Inv.Co.,

Ltd. (Representative:Peng-ChihKuo),

JoeJ.T.Teng

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

OverNT$100,000,000

Note1：�TheBoardadoptedaproposalfor2006compensationtoUPEC'sdirectorsandsupervisorsintheamountof

NT$89,527thousandatitsmeetingonApr.26,2007.Theproposalcompensationwillbeeffecteduponthe

approvalofshareholdersattheAnnualShareholderMeetinginJune,2007.


C. Compensation Paid to President and Vice Presidents Unit:NT$thousands

Title Name

Salary Bonus (Note1) Employee Profit Sharing Total CompensationTotal Compensation as % of 2006 Net

Income Other Compensation

from Non-Subsidiary Affiliates

UPECConsolidated Subsidiaries

of UPECUPEC

Consolidated Subsidiaries

of UPEC

UPECConsolidated

Subsidiaries of UPEC UPEC


of UPECUPEC



President Lung-YiLin

15,410 15,808 5,979 5,979 1,127 0 1,127 0 0.62% 0.37% 0 0 1,205

ExecutiveVicePresident

Chih-HsienLo

VicePresident Hua-YangLee

VicePresident Po-RongYen

VicePresident Chin-TsonChung

VicePresident Wen-LungYang

VicePresident Chih-PengHsieh

Level of Amounts of CompensationTotal Compensation Paid to Directors as % 2006 Net Income (A+B+C)

UPEC All investees

UnderNT$2,000,000 　　

NT$2,000,000～NT$5,000,000

Chih-HsienLo,Hua-YangLee,Po-Rong

Yen,Chin-TsonChung,Wen-LungYang,

Chih-PengHsieh

Chih-HsienLo,Hua-YangLee,Po-Rong

Yen,Chin-TsonChung,Wen-LungYang,

Chih-PengHsieh

NT$5,000,000～NT$10,000,000 Lung-YiLin Lung-YiLin

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 　　

OverNT$100,000,000

Note1：�TheCompanypaysPresidentTokyoCorp.NTD4,467thousanddollarstorentsedansfortheuseofPresident

andVicePresidents.CompensationpaidtocompanydriverstotaledNT$1,589thousanddollars.


D. Employee Profit Sharing Granted to Management Team in 2006

Title NameProfit Sharing

Stock

Profit Sharing

Cash (NT$

thousands)

Total Profit

Sharing

Value (NT$

thousands)

Total Profit

Sharing

Value to

Management

Team as %

of 2006 Net

Income

President Lung-YiLin

0 3,355 3,355 0.09%

ExecutiveVicePresident Chih-HsienLo

VicePresident Hua-YangLee

VicePresident Po-RongYen

VicePresident Chin-TsonChung

VicePresident Wen-LungYang

VicePresident Chih-PengHsieh

AssistantVicePresident Chien-ChangChen

AssistantVicePresident Fu-ShangYang

AssistantVicePresident Hong-BinLee

AssistantVicePresident Chung-SungWu

AssistantVicePresident Tsung-MingSu

AssistantVicePresident Chien-LiYin

AssistantVicePresident Long-HongLu

AssistantVicePresident IkeuchiChihiro

AssistantVicePresident Ying-ThungYu

AssistantVicePresident Jui-ShengWang

AssistantVicePresident Jui-TienHuang


2.4 Comparison of Compensation for Directors, Supervisors and Managers in the Past Two Years and Compensation Policy for Directors, Supervisors and Managers

A. Comparison of Compensation for Directors, Supervisors and Managers in the Past Two Years Unit:NT$thousands

Title

2005 2006

Total

Compensation

(consolidated)

Net Income

(consolidated)

Total Compensation

as % of Net Income

Total

Compensation

(consolidated)

Net Income

(consolidated)

Total Compensation

as % of Net Income

Directors 69,719 3,866,019 1.80% 124,236 6,234,548 1.99%

Supervisors 11,890 3,866,019 0.31% 20,615 6,234,548 0.33%

President

&Vice

Presidents

22,907 3,866,019 0.59% 22,914 6,234,548 0.37%

Total 104,516 3,866,019 2.70% 167,765 6,234,548 2.69%

B. Compensation Policy for Directors, Supervisors and Managers(1)Directorsandsupervisorsmustbepaidremuneration for thecorporatebusinessactivities theyperformed.The

remuneration ismeasuredaccording to the levelof importanceandvalueofcontribution fromdirectorsand

supervisorstothecompany,usuallywithanaveragelevel.Also,ifthecompanyhasearnings,accordingtotherules

outlinedinArticle35,remunerationwillbedistributed.

(2)Presidentandvicepresidenttaketheorderfromtheboardofdirectorstomanagebusinessoperation,andtheir

appointment,dispatchandremunerationaregovernedbytheboardofdirectorsaccordingtotherulesinArticle31.

Therewardwhichcompanyofferstotheemployeesfortheservicesrenderedismeasuredbasedontheemployee's

personalachievements,contributionmadetothebusinessoperation,andthemarketaverages.

(3)Therewardwhichcompanyofferstotheemployeesfortheservicesrendered ismeasuredbasedonthe levelof

employees’contributionandvaluetothecompany,andthemarketaverages.Ithasapositivecorrelationwiththe

performanceof thecompany'sbusiness. Itmainly includesbasicsalary,bonusandfringebenefits.Basicsalary

isassessedbytakingintoaccountofthemarketaveragesandissuedtotheemployees;thebonusisconsidered

witheachindividualanddivisionalachievementorentirecompany’sperformance;thefringebenefits isplannedin

accordancewiththelawtomeettheneedsofemployees.


3.1 Information of Board Meeting Operation

Board meeting were hold 8 times in 2006, attendances of directors and supervisors are as follows:

Title NameAttendance

in Person

Proxy

Attendance

Attendance

Rate (%)Remarks

Chairman

KaoChyuanInv.Co.,

Ltd.(Representative:

Chin-YenKao)

8 0 100

ManagingDirector Kao-HueiCheng 8 0 100

ManagingDirector Chang-ShengLin 8 0 100

Director

GiantAttemptLtd.

(Representative:

Ping-ChihWu)

0 8 0

Director Hsiu-JenLiu 1 7 12.5

Director Po-MingHou 7 1 87.5

Director Ying-JenWu 5 3 62.5

Director

YoungYunInv.Co.,


Chung-HoWu)

8 0 100

Director Ching-ChienHouSu 8 0 100

Supervisor Kao-KengChen 8 0 100

Supervisor

ChauChihInv.Co.,


Peng-ChihKuo)

8 0 100

Supervisor JoeJ.T.Teng 0 8 0

OtherDisclosures:TheCompany’sdirectorsrescuethemselvesfromvotingonmattersinwhichtheirinterestconflict

withtheCompany’sinterest.

3.2 Information Regarding Audit Committee Operation:�Not Applicable.

3. Corporate Governance Practices


Item Executions

Reasons for the discrepancy of corporate governance between the

company and best-practice principles in TSEC/GTSM Listed Companies

1.ShareholdingStructureandShareholders’Rights

(1)Waysofhandingshareholders’suggestionsordisputes

Inadditiontothestockaffairattorneys,theCompanyalsoassignedspokesman,publicaffairdivision,investorrelationdepartmentandstockrepresentativetohandletheissues.

ConsistentwiththeCorporateGovernanceBest-PracticePrinciplesforTSEC/GTSMListedCompany

(2)TheCompany’spossessionofmajorshareholder’slistandthelistofultimateownersofthesemajorshareholders

TheCompanykeepstrackofthemajorshareholdersandultimateownersthatlistedbythestockaffairattorneyandperiodicallyreportsthechangesofshareholdingsindirectors,supervisorsandmanagers.


(3)RiskmanagementmechanismandfirewallbetweentheCompanyanditsaffiliates

Rulesaremadetostrictlyregulatetheactivitiesoftrading,endorsementandloansbetweentheCompanyanditsaffiliates.Alsowefollowthe“CriteriaofInternalControlMechanismforPublicCompany”outlinedbyFinancialSupervisoryCommissiontodrafttheguidelinesforthe“Supervisionandgovernanceofthesubsidiaries”inordertomaketotalriskcontrolofthesubsidiaries.


2.BoardStructureandResponsibilities

(1)IndependentDirectors Noindependentdirectorsareavailable.

Althoughtheindependentdirectorshavenotbeensetup,theappropriateseatsofdirectorshavebeendecidedbasedonthebusinessscope,majorshareholdings,andoperation.Overthepastyears,theboardhasbeenoperatedandexercisedtheauthoritywiththelaw,thecorporaterules,andtheshareholdermeetingresolution.TheCompany’sdirectorsandlegalrepresentativesaregenerallyproficientandknowledgeable.Sinceoneseatoftheboardhasmetthecriteriaofindependence,itisconsiderednotmandatorytosetuptheindependentdirector.

(2)Regularevaluationofexternalauditors’independence

Ouraccountingdivisionconductstheevaluationofexternalauditor’sindependenceonceayearandreportstheresulttotheBoardofDirectors.AllauditorsmustnotbetheCompany’sdirectors,supervisors,stockholders,employeesandstakeholders.


3.3 Reasons for the Discrepancy of Corporate Governance between the Company and Best-Practice Principles in TSEC/GTSM Listed Companies


Item Executions



3.Thecompositionandresponsibilitiesofsupervisors

(1)IndependentSupervisor(s) Noindependentsupervisorsareavailable.

Thenumberofsupervisorsisdeterminedinaccordancewiththecorporatelaw,whichsupervisorscanexercisetheauthorityofsupervisionindependently.Henceifindependentsupervisorweresetup,itwillbehardtomakecleardifferentiationwiththeexistingfunctionofothersupervisors.Itisthereforeconsiderednotmandatorytosetupindependentsupervisors.

(2)Communicationbetweensupervisorsandemployees/shareholders

Thesupervisorscancommunicatewithemployeesandstockholdersthroughspokesperson,laborunion,andintheShareholdersMeeting.


4.Thecompany’scommunicationwithitsstakeholders

Relevantdepartments,includinglabourunion,customerservicecenter,purchasing,financingandothers,areavailabletokeepgoodcommunicationwiththeemployees,consumers,suppliersandcreditors.


5.InformationDisclosure

(1)Establishmentofcorporatewebsitetodiscloseinformationregardingthecompany’sfinancials,businessandcorporategovernancestatus

Theinformationaboutcompany’sfinancialandcorporategovernanceisavailableatwww.uni-president.com.tw


(2)Otherinformationdisclosurechannels(e.g.Englishwebsite,assignspecialisttocollectinformationandmakedisclosure,spokesperson,web-castinvestorconference)

1.SetupanEnglishwebsite:www.uni-president.com.

2.Assignedrelevantdepartmentstocollectanddisclosecompanyinformation.

3.Currentlywehaveonespokespersonandtwodeputyspokesmen.

4.Discloseinvestorconferences’informationoncorporatewebsite.


6.Theoperationof theauditingcom-mitteewithintheCompany

Neitherauditingcommitteenorotherrelevantdepartmentsisavailable.

TheauditingtasksarepresentlycarriedoutbytheCompany’ssupervisors,neitherauditcommitteeandotherrelevantdepartmenthasnotbeenestablished.HowevertheCompanyhasdetailedcompleteoperationalguidelineandmanagementforeachdivisiontofollow.Inthefuture,wewillplanthenecessarycommitteeinaccordancewiththelaws.

3.3 Reasons for the Discrepancy of Corporate Governance between the Company and Best-Practice Principles in TSEC/GTSM Listed Companies (Continued)


Item Executions



7.IftheCompanyhasestablishedcorporategovernancepoliciesbasedonTSECorporateGovernanceBest-PracticePrinciples,pleasedescribethediscrepancybetweenthepoliciesandtheirimplementationTheCompanyhasnotyetestablishedcorporategovernancepoliciesbasedonTSECorporateGovernanceBestPracticePrinciples.

8.Pleasedescribe the corporatepolicy andmeasuresof social commitment and implementationof socialresponsibilities:PleaserefertoPage90.

9.OtherimportantinformationthatenabletheunderstandingofCompany’scorporategovernancepractices:(1)In2006,allboardmemberswerearrangedtoattendtheadvancedcoursesaccordingtotherelevantlaws.(2)Anysignificantissuesthatrelatetocorporatepolicy,investment,endorsement,loanandfinancingare

evaluatedbythedesignatedpartiesandexercisedtheresolutionresultedfromboardmeetings.Moreover,yearlyauditingplanisdraftedbasedontheresultofriskassessedandexecutedinordertoeffectivelycarryoutthesupervisionaswellascontroltherisks.

(3)TheCompanyhasestablishedacustomerservicescentertodealwiththeconsumercomplaintsandprotectconsumerrights.

(4)Bytheresolutionof2006GeneralShareholders’Meeting,thechairmanwasgrantedfullpowertohandlethepurchaseofdirectorsandofficers liability insurance,which isnowunder theassessmentby the insurancecompany.

10.Theresult,materialdeficiency (orsuggestion)and improvementofcorporategovernanceassessedby internalauditorprofessionalinstitutions:None.

3.3 Reasons for the Discrepancy of Corporate Governance between the Company and Best-Practice Principles in TSEC/GTSM Listed Companies (Continued)


3.4 Internal Control System Execution StatusA. Statement of Internal Control

StatementofInternalControlSystemDate:Apr.26,2007

TheinternalcontrolsystemfromJanuary1toDecember31,2006,accordingtotheresultofself-assessmentisthusstatedasfollows:1.TheCompanyacknowledges that the implementationandmaintenanceof internalcontrol system is the

responsibilityofBoardofDirectorsandmanagement, and theCompanyhasestablishedsuchsystem.The internalcapitalsystem isaimedtoreasonablyassurethat thegoalssuchastheeffectivenessandtheefficiencyofoperations(includingprofitability,performanceandprotectionofassets),thereliabilityoffinancialreportingandthecomplianceofapplicablelawandregulationsareachieved.

2.The internalcontrolsystemhas its innate restriction.Aneffective internalcontrolsystemcanonlyensuretheforegoingthreegoalsareachieved;nevertheless,duetothechangeofenvironmentandconditions, theeffectivenessof internalcontrolsystemwillbechangedaccordingly.However, the internalcontrolsystemof theCompanyhasself-monitoringfunctionandtheCompanywill takecorrectiveactiononceanydefect isidentified.

3.According to theeffective judgment items for the internal control systemspecified in "Highlights forImplementationofEstablishing InternalcontrolSystembyListedCompanies" (hereinafter referred toas"Highlights")promulgatedbySecuritiesandFuturesCommission,MinistryofFinanceR.O.C., theCompanyhasmade judgmentwhetherornot thedesignandexecutionof internalcontrolsystem iseffective.Thejudgmentitemsforinternalcontroladoptedby“Highlights”are,basedontheprocessofmanagementcontrol,forclassifyingthe internalcontrol intofiveelements:1.Controlenvironment;2.Riskassessments;3.Controlactivities;4.Informationandcommunication;and5.Monitoring.Eachelementalsoincludesacertainnumberofitems.Fortheforegoingitems,referto"Highlights".

4.TheCompanyhasadoptedtheaforesaid judgment itemsfor internalcontrol toevaluatetheeffectivenessofdesignandexecutionofinternalcontrolsystem.

5.Basedontheabove-mentionedresultofevaluation, theCompanysuggeststhat the internalcontrolsystem,includingthedesignandexecutionofinternalcontrolrelatingtotheeffectivenessandefficiencyofoperation,thereliabilityoffinancial reporting, thecomplianceofapplicable lawandregulationshasbeeneffectiveandtheycanreasonablyassuretheaforesaidgoalshavebeenachieved.

6.Thisstatementwillbe themaincontent forannual reportandprospectusandwillbedisclosedpublicly. Iftheabovecontentshaveanyfalsehoodandconcealment, itwill involve inthe liabilityasmentioned inArticle20,32,171and174ofSecuritiesandExchangeLaw.

7.Thisstatementhasbeenapprovedby themeetingofBoardofDirectorsonApril26,2007,and those9directorsinpresenceallagreeatthecontentsofthisstatement.

Uni-PresidentEnterpriseCorporation

Chairman:Chin-YenKao

President:Lung-YiLin

B. The Securities & Futures Bureau did not request the Company to commission an independent auditor to audit its internal control system in 2006.


3.5 Regulatory Authorities’ Legal Penalties to the Company, and the Company’s Resulting Punishment on Its Employees: None.

3.6 Major Resolutions of Shareholders Meeting and Board of Directors Meeting

A. Major Resolutions of 2006 General Shareholders’ Meeting (June 23, 2006)(1)Acceptanceofyear2005financialstatements.

(2)Approvedthedistributionofretainedearningsforyear2005.

(3)ApprovedtheadditionalindirectinvestmentsinMainlandChina.

(4)Authorizethechairmanthefullpowertopurchasethedirectorsandofficersliabilityinsurance.

B. Executions of the Major Resolutions of 2006 General Shareholders’ Meeting(1)Theexecutionsoftheacceptanceofyear2005financialstatements,thedistributionofretainedearningsforyear

2005,andadditionalindirectinvestmentsinMainlandChinahavebeencompleted.

(2)Thepurchaseofdirectorsandofficersliabilityinsuranceisstillunderassessment.

C. Major Resolutions during the Board of Directors Meetings in 2006 and to the Publish Date of the Annual Report

Tenboardmeetingswereconvenedduring2006calendaryearand to thepublishdateof theannual report.The

resolutionsaresummarizedbelow.

2006.02.17 (11th Board Meeting)

(1)ApprovedadditionalinvestmentofNTD200millionintoUni-PresidentVendorCorp.

(2)ApproveddispositionofpartialstakesofScinoPharmTaiwanLtd.forNTD110.1million.

(3)ApprovedinvestmentofNTD22.5millioninUni-PresidentDepartmentStoreCorp.

(4)ApprovalofrestructuringAuditingDivisiontobeunderneaththeBoardofDirectors.

(5)ApprovedadditionalcashinvestmentofPESO250millionintoUni-President(Philippines)Ltd.throughUni-President

SoutheastAsiaHoldingsLtd.

(6)Approvedtheestablishmentofa jointventurecompany-JinmailangBeverage(Beijing)Co.,Ltd.betweenPresident

Enterprises(China)InvestmentCo.,Ltd.andNissinHualongFoodCo.,Ltd.withregisteredcapitalofRMB600million.

(7)Setthedateandvenueof2006generalshareholders’meeting.

(8)Approvedtheinternalauditingproposalofyear2006.

(9)Approvedtheamendmentsoftheinternalauditingtermsandcontrolmechanism.


(10)Acceptanceoftheconsolidatedandnon-consolidatedfinancialstatementsofyear2005.

(11)ApprovedadditionalinvestmentofNTD607.5millionintoPresidentFairDevelopmentCorp.

(12)Approvedthedistributionofretainedearningsforyear2005.

(13)Approvedfurthercash investmentofUSD3,970thousand intoPTABCPresidentEnterprises Indonesiathrough

Uni-PresidentSoutheastAsiaHoldingsLtd.

(14)Approvedthedeletionofnon-competitionagreementoncompany’smanagers.

(15)Approvedtheamendmentofcompany’sregulationgoverningtheprocedureforboardofdirectorsmeeting.


(16)Approvedtheacquisitionof28.57%shareholdingsofBeijingPresidentEnterprisesDrinks&FoodCo.,Ltd.and


100%shareholdingsofFuzhouPresidentEnterprisesCo.,Ltd.byPresidentEnterprises (China) InvestmentCo.,

Ltd.atexpectedtradingpricesofUSD5millionandUSD10millionrespectively.

(17)ApprovedadditionalinvestmentofUSD9millioninGuangzhouPresidentEnterprisesCo.,Ltd.

(18)Approvalofacquiring45%shareholdingsofBeijingPresidentFoodCo.,Ltd.atnomorethanUSD3,500thousand.

(19)ApprovedadditionalinvestmentofUSD10millioninGaoqi(Xian)JuiceHoldingsCo.,Ltd.

(20)ApprovedadditionalinvestmentofUSD10millioninChengdeChengluFoodsCo.,Ltd.

(21)Setcashdividendex-dividenddateforyear2006(Date:Aug.7,2006)

(22)Obtainmentoftheloanfromthebank.


(23)Acceptanceof2006semi-yearfinancialstatements.

(24)ApprovedtheterminationofstockownershipinChinaHuiYuanJuiceHoldingCo.,Ltd.

(25)ApprovedadditionalinvestmentofTHB200millionintoUni-President(Thailand)Ltd.

(26)Approveddispositionof53.74%shareholdingsofPresidentPharmaceuticalCorp.toPresidentChainStoreCorp.

(27)Approvalofobtainingloanfromthebankandprovidingguaranteeforothers.


(28)ApprovedcapitalincreaseofNTD2,913,013thousandinKaiNanInvestmentCo.,Ltd.withthesharesofTonpal

OptoelectronicsInc.andNewCenturyInfo-CommCo.,Ltd.

(29)Acceptanceofsemi-yearconsolidatedfinancialstatementsofyear2006.

(30)Increaseendorsementandguarantee limit fromNTD1billion toNTD3billionbyPresidentEnterprises (China)

InvestmentCo.,Ltd.forothers.

(31)SettheendorsementandguaranteelimitforKaiNan(BVI)InvestmentCo.,Ltd.at10%ofcompany’snetvalue.

(32)SettheendorsementandguaranteelimitforKaiNanInvestmentCo.,Ltd.at20%ofcompany’snetvalue.

(33)IncreaselendingfromNTD500milliontoNTD1,000millionbyKaiYu(BVI)InvestmentCo.,Ltd.toothers.

(34)ApprovedthetransferoftrademarkandpatenttoUni-PresidentAsiaHoldingsLtd.

(35)Approvedtheguaranteesforothers.


(36)Approvalofacquiring19.5%sharesofTaitMarketing&DistributionCorporationatNTD323million.


(37)Sign “LetterofSupport”withChinatrustCommercialBankonRichUniverse InternationalLimitedandGrand-

Prosper(HK)Ltd.syndicatedloan.

2006.12.21(18th Board Meeting)

(38)Approvalofacquiring40,000thousandcommonsharesofPresidentInternationalDevelopmentCorp.

(39)ApprovedadditionalinvestmentofNTD160millioninToneSangConstructionCorp.

(40)ApprovedfurtherinvestmentofNTD127.5millioninUni-PresidentDepartmentStoreCorp.

(41)ApprovedadditionalinvestmentofNTD607.5millioninPresidentFairDevelopmentCorp.

(42)Approvalofprovidingendorsementandguarantee forShanghaiSongjiangPresidentEnterprisesCo.,Ltd.,

QingdaoPresidentFeed&LivestockCo.,Ltd.,ShanghaiPresidentInternationalFoodCo.,Ltd.,TianjingPresident

EnterprisesFoodCo.,Ltd.andPresidentFuChe(Qingdao)FoodCo.,Ltd.

(43)Approvalofdeletionofnon-competitionpromiseon thecompany’sdirectorsandmanagers toserveas the

managersintheinvestedcompanies.

(44)Approvalofdeletionofnon-competitionpromiseonexecutivevicepresidentChih-HsienLoandvicepresidentWen-

LungYang.

(45)ApprovalofincreasingguaranteeandendorsementlimitfromNTD500milliontoNTD600millionforUni-President


(Thailand)Ltd.

(46)ApprovalofincreasingguaranteesfromNTD1billiontoNTD4.5billionbyZhongshanPresidentEnterprisesCo.,

Ltd.toothers.

(47)ApprovedtheguaranteesforPresident InternationalDevelopmentCorp. for the loanofNTD2.8billionandthe

syndicatedloan.

(48)ApprovedadditionalinvestmentofUSD5millionintoUni-President(Vietnam)Co.,Ltd.

(49)Approvedinternalauditingproposalofyear2007.

(50)Approvedtheguaranteesforothersandobtainmentoftheloanfromthebank.


(51)Approvalofacquiring1,447thousandcommonsharesofPresidentChainStoreCorp.,atNTD107,789,000.

(52)Approvalofacquiring20,000thousandcommonsharesofPresidentInternationalDevelopmentCorp.

(53)Approvalofdisposing100%sharesofAllianzPresidentLifeInsuranceCo.,Ltd.,forNTD362,502,000.

(54)Approvedindirectacquisitionof31.84%sharesofSaiGonBeveragesJoint-StockCompanyatNTD890,822,000

andobtainmentoftheoptiontoacquire17.91%shareholdings.

(55)ApprovalofdisposingtheobligationclaimagainstthereorganizationofWeiLihFoodCorp.withNTD628,985,000

throughU-FuAssetManagementCorp.

(56)Approvalofadditional investment inKunmigPresidentEnterprisesCo.,Ltd.withregisteredcapitalofUSD10

million.

(57)Approvalofacquiring2millionsharesofSaiGonBeveragesJoint-StockCompanythroughUni-President(Vietnam)

Co.,Ltd.atNTD140million.

(58)Approvalofobtainingtheloanfromthebank.


(59)Approvalofthedateandvenueof2007GeneralShareholders’Meeting.

(60)Approvalofthedateandvenueofthe14thelectionofdirectorsandsupervisors.

(61)Approvalofregulatingrelatedproceduresforhandlingshareholders’proposals.

(62)ApprovedtheapplicationofPresidentEnterprises(China)InvestmentCo.,Ltd.asourMainlandChina’sheadquarter.

(63)ApprovedthenegotiationwithNissinHualongFoodCo.,Ltd.andHebeiJinmailangPaperProductsCo.,Ltd.about

theacquisitionofshares.Uni-President(China)EnterpriseCorp.willsigntheinitialagreementwiththemandpay

RMB300millionaccordingtothetermsstatedintheagreement.

(64)Amendmentinpartofarticlesofincorporation.

(65)Approvalofthedeletionofnon-competitionpromiseoncompany’sdirectors.

(66)Amendthetitleofboardmeetingregulationto“regulationgoverningtheprocedureofboardofdirectorsmeeting”.

(67)Approvalofamendmentstotheregulationgoverningtheacquisitionordispositionofassets.

(68)Approvaloftheguaranteesforothers.

2007.04.26 (21st Board Meeting)

(69)Acceptanceofconsolidatedandnon-consolidatedfinancialstatementsofyear2006.

(70)Approvalofamendmentinpartofarticlesofincorporation.

(71)ApprovalofadditionalinvestmentUSD6millionintoBeijingPresidentFoodCo.,Ltd.

(72)Approveddistributionofretainedearningsfor2006.

(73)ApprovedestablishmentofasubsidiaryinIndiabyaquaticbusinessdivision.

(74)IncreaseguaranteeandendorsementlimittoNTD260millionforPresidentEntertainmentCorp.

(75)SettheguaranteesandendorsementlimitforUni-PresidentInternational(HK)Co.,Ltd.atUSD2million.

(76)Approvedtheobtainmentofthebankloanandtheguaranteeforothers.


3.7 Directors' or Supervisors' Objections on the Imporant Resolutions of Board Meetings：None.

3.8 Information of Resignation or Dismission of the Persons Related to Financial Reports

Hao-TangWang,assistantvicepresidentofauditdivision,wasretiredonJuly2,2006.

4. Auditing Notes4.1 Disclosure of Auditing FeeA.Theamountofnon-auditingrelevant feeschargedbytheappointed independentauditorsandtherelatedparties

reaches25%oftheCompany’sannualauditingexpenses：NotApplicable.

B.IfthereisanychangeintheappointedindependentauditorsandtheCompany’sannualauditingexpensesdecreased

simultaneously, informationregardingtheamount,percentageandreasonsfor thedecrease inauditingexpenses

shallbedisclosed：NotApplicable.

C.Auditingexpensesdecreasedby15% incomparison to thepreviousyear, information regarding theamount,

percentageandreasonforthedecreaseinauditingexpensesshallbedisclosed：NotApplicable.

4.2 Changes in Independent AuditorsTheCompanydidnotreplaceitsindependentauditorduring2005,2006andasofApril30,2007.

4.3 The Company’s chairman, president, CFO or Accounting division director have not worked in the accounting firm of the appointed independent auditors or the related parties within the past year.


Unit:Share

Title Name

2006 As of Apr. 30, 2007

HoldingIncrease

(Decrease)

PledgedHoldingIncrease

(Decrease)

HoldingIncrease

(Decrease)


(Decrease)

ChairmanKaoChyuanInv.Co.,Ltd.(Representative:Chin-YenKao)

48,723,000 30,623,000 0 0

ManagingDirector Kao-HueiCheng 0 0 0 0

ManagingDirector Chang-ShengLin0 0 0 0

DirectorGiantAttemptLtd.(Representative:Ping-ChihWu)

(5,104,271) (11,823,000) 0 0

Director Po-MingHou 0 0 0 0

Director Hsiu-JenLiu (500,000) 0 0 0

Director Ying-JenWu (680,000) 0 0 0

DirectorYoungYunInv.Co.,Ltd.(Representative:Chung-HoWu)

0 0 0 0

Director Ching-ChienHouSu 0 0 0 0

Supervisor Kao-KengChen 0 0 0 0

SupervisorChauChihInv.Co.,Ltd.(Representative:Peng-ChihKuo)

0 0 0 0

Supervisor JoeJ.T.Teng 0 0 0 0

President Lung-YiLin 0 0 0 0

ExecutiveVicePresident Chih-HsienLo 0 0 0 0

VicePresident Hua-YangLee 0 0 0 0

VicePresident Po-RongYen (1,101,000) 0 0 0

VicePresident Chin-TsonChung 0 0 0 0

VicePresident Chih-PengHsieh 0 0 0 0

VicePresident Wen-LungYang 0 0 0 0

AssistantVicePresidentHao-TangWang(retiredonJuly02,2006)

(15,000) 0 0 0

AssistantVicePresident Qian-ChangChen 0 0 0 0

AssistantVicePresident Fu-ShangYang 0 0 0 0

5. Changes in Shareholding of Directors, Supervisors, Managers and Major Shareholders


Title Name

2006 As of Apr. 30, 2007

HoldingIncrease

(Decrease)


(Decrease)

HoldingIncrease

(Decrease)


(Decrease)

AssistantVicePresident Hong-BinLee 0 0 0 0

AssistantVicePresident Chung-SungWu 0 0 0 0

AssistantVicePresident Tsung-MingSu 0 0 0 0

AssistantVicePresident Chien-LiYin 0 0 0 0

AssistantVicePresident Long-HongLu 0 0 0 0

AssistantVicePresident IkeuchiChihiro 0 0 0 0

AssistantVicePresident Jui-ShengWang 0 0 0 0

AssistantVicePresident Jui-TienHuang 0 0 0 0

AssistantVicePresident Ying-ThungYu 0 0 0 0

5.1 Shares Trade with Related Party

Name

Rea-

son of

Transfer

Date of

TransactionTransferee

Relationship between Transfer-

ee and Directors, Supervisors,

Managers & Major Shareholders

Shares

Price of

Transaction

(NTD)

Ying-JenWu Grant 2006.11.07Yen-ChiouWu

ChieuWife 400,000 30.10

5.2 Shares Pledge with Related Party: None.


AsofDec.31,2006

NameShareholding Spouse & Minor

Shareholding

by Nominee

Arrangement

The relationship

between any of the

Company’s Top Ten

Share holdersRemarks

Shares % Shares % Shares % Name Relation

KaoChyuanInv.Co.,

Ltd.143,944,359 4.29 - - - - Hsiu-LingKao Director

KaoChyuanInv.Co.,


Chin-YenKao)

100,460 - 204,765 0.006 - - Hsiu-LingKao Daughter

Po-YiHou 107,595,730 3.21 41,532 0.001 - -Po-MingHou Brother

Po-YuHou Brother

Commissionon

NationalFinancial

StabilityFund,the

ExecutireYuan

91,806,513 2.74 - - - -

Po-MingHou 87,218,498 2.60 - - - -Po-YiHou Brother

Po-YuHou Brother

Po-YuHou 76,100,474 2.27 - - - -Po-YiHou Brother

Po-MingHou Brother

ArisaigGreater

ChinaFundLimited64,941,000 1.94 - - - -

Hsiu-LingKao 54,820,946 1.63 - - - -

KaoChyuan

Inv.Co.,Ltd.

(Representative:

Chin-YenKao)

Father

Hsiu-JenLiu 52,075,709 1.55 - - - -

MitsubishiCorpora-

tion51,721,882 1.54 - - - -

ManagementBoard

PublicSerrice

PensionFundMinisty

ofCivilService

RepublicofChina

46,474,482 1.39 - - - -

6. Information Disclosing the Relationship between any of the Company’s Top Ten Shareholders


AsofDec.31,2006

InvesteesInvestments by the

Company

Investments from Directors, Supervisors, Managers, and Directly or Indirectly Controlled

Businesses

Total Investments

Shares % Shares % Shares %

PresidentGlobalCorp. 500,000 100.00 0 0.00 500,000 100.00

PresidentInternationalTrade&

InvestmentCorp.45,012,200 100.00 0 0.00 45,012,200 100.00

PresidentBaseballTeamCorp. 30,000 100.00 0 0.00 30,000 100.00

ToneSangConstructionCorp. 27,000,000 100.00 0 0.00 27,000,000 100.00

KaiYuInvestmentCo.,Ltd. 432,205,428 100.00 0 0.00 432,205,428 100.00

CaymanPresidentHoldingsLtd. 156,060,000 100.00 0 0.00 156,060,000 100.00

TungYuanCorp. 19,800,000 100.00 0 0.00 19,800,000 100.00

PrescoNetmarketingInc. 6,500,000 100.00 0 0.00 6,500,000 100.00

Uni-PresidentDreamParksCorp. 6,000,000 100.00 0 0.00 6,000,000 100.00

KaiNanInvestmentCo.,Ltd. 351,301,362 100.00 0 0.00 351,301,362 100.00

Uni-PresidentGlassIndustrial

Co.,Ltd.36,000,000 100.00 0 0.00 36,000,000 100.00

Uni-PresidentVendorCorp. 25,000,000 100.00 0 0.00 25,000,000 100.00

PresidentEntertainmentCorp. 98,885,256 61.80 61,114,744 38.20 160,000,000 100.00

Uni-PresidentOrganicsCorp. 2,833,333 56.67 2,166,667 43.33 5,000,000 100.00

PresidentFairDevelopmentCorp. 364,500,000 40.50 535,500,000 59.50 900,000,000 100.00

Uni-PresidentOvenBakeryCorp. 11,600,000 40.00 17,400,000 60.00 29,000,000 100.00

Uni-PresidentDepartment

StoreCorp.15,000,000 30.00 35,000,000 70.00 50,000,000 100.00

Uni-PresidentColdChainCorp. 6,521,090 20.00 26,084,362 80.00 32,605,452 100.00

NanlienInternationalCorp. 99,999,380 99.99 0 0.00 99,999,380 99.99

TungHoDevelopmentCo.,Ltd. 70,244,952 70.24 28,381,155 28.39 98,626,107 98.63

PresidentMusashinoCorp. 26,145,000 50.00 20,916,000 40.00 47,061,000 90.00

PresidentTransnetCorp. 20,000,000 20.00 70,000,000 70.00 90,000,000 90.00

PresidentInformationCorp. 8,049,323 30.00 15,025,405 56.00 23,074,728 86.00

Mech-PresidentCorp. 12,360,873 20.10 38,712,620 62.96 51,073,493 83.06

PresidentNaturalIndustrialCorp. 8,981,998 74.85 0 0.00 8,981,998 74.85

PresidentInternational

DevelopmentCorp.937,500,000 62.50 160,500,000 10.70 1,098,000,000 73.20

Uni-PresidentDevelopmentCorp. 30,000,000 30.00 40,000,000 40.00 70,000,000 70.00

RetailSupportInternationalCorp. 4,000,000 20.00 9,000,000 45.00 13,000,000 65.00

TonYiPharmaceuticalCorp. 510,000 51.00 100,000 10.00 610,000 61.00

ParabolaCreativeInc. 900,000 60.00 0 0.00 900,000 60.00

BankProE-ServiceTechnologyCor 675,000 5.00 7,200,000 53.33 7,875,000 58.33

QwareSystem&ServicesCorp. 23,474,560 27.79 19,842,957 23.50 43,317,517 51.29

PresidentNisshinCorp. 6,120,000 51.00 0 0.00 6,120,000 51.00

PresidentTokyoCorp. 10,200,000 51.00 0 0.00 10,200,000 51.00

Muji(Taiwan)Co.,Ltd 1,000,000 10.00 4,100,000 41.00 5,100,000 51.00

PresidentPackagingCorp. 15,317,531 50.59 0 0.00 15,317,531 50.59

7. Total Percentage of Ownership of Investees


InvesteesInvestments by the

Company

Investments from Directors, Supervisors, Managers, and Directly or Indirectly Controlled

Businesses

Total Investments

Shares % Shares % Shares %

PresidentAsianEnterprises

Inc.(Preferred)540 49.95 1 0.10 541 50.05

PresidentAsianEnterprises

Inc.(Common)3,180 49.99 1 0.02 3,181 50.01

PresidentKikkomanInc. 6,000,000 50.00 0 0.00 6,000,000 50.00

Uni-PresidentBiotechnologies

Co.,Ltd.1,750,000 50.00 0 0.00 1,750,000 50.00

PresidentCoffeeCorp. 6,209,280 20.00 9,313,920 30.00 15,523,200 50.00

TonYiIndustrialCorp. 685,102,310 45.55 58,315,712 3.88 743,418,022 49.43

PresidentChainStoreCorp. 414,042,816 45.24 3,946,753 0.43 417,989,569 45.67

PresicarreCorp. 74,227,904 20.50 70,605,016 19.50 144,832,920 40.00

TTETUnionCorp. 47,991,477 30.00 12,245,092 7.65 60,236,569 37.65

EagleColdStorageEnterprise

Co.,Ltd.40,886,710 37.36 0 0.00 40,886,710 37.36

PresidentSecuritiesCorp. 302,014,364 26.56 89,129,166 7.84 391,143,530 34.40

AllianzPresidentLifeInsurance

Co.,Ltd.24,166,854 10.10 54,073,540 22.61 78,240,394 32.71

KuangChuanDairyCo.,Ltd. 30,037,710 31.25 0 0.00 30,037,710 31.25

MospecSemiconductorCorp. 25,372,777 30.70 48,254 0.05 25,421,031 30.75

ScinoPharmTaiwanLtd. 69,793,595 12.67 54,695,418 9.92 124,489,013 22.59

PrinceHousingDevelopmentCorp. 90,393,404 10.45 98,006,133 11.33 188,399,537 21.78

ZtongYeeIndustrialCo.,Ltd. 18,042,400 20.00 0 0.00 18,042,400 20.00

TheTaitGroupofCompanies 32,248,000 19.50 155,000 0.09 32,403,000 19.59

GrandBillsCorp. 78,219,035 14.46 17,861,725 3.31 96,080,760 17.77

Sino-AerospaceInvestmentCorp. 21,000,000 8.19 21,000,000 8.18 42,000,000 16.37

TheChinesePro.BaseballCorp. 6,000 14.29 0 0.00 6,000 14.29

PresidentInvestmentTrustCorp. 480,000 1.60 3,750,000 12.50 4,230,000 14.10

PKVentureCapitalCorp. 10,000,000 6.67 10,000,000 6.66 20,000,000 13.33

GuangDanCommodityCorp. 1,156,944 11.57 0 0.00 1,156,944 11.57

Hi-LifeInternationalCo.,Ltd. 13,750,831 7.41 0 0.00 13,750,831 7.41

KaohsiungRapidTransitCorp. 20,000,000 2.00 40,000,000 4.00 60,000,000 6.00

CDIB&PartnersInvestment

HoldingCorp.27,000,000 2.48 27,000,000 2.47 54,000,000 4.95

KuangChuanFoodsCo.,Ltd. 22,440 3.96 0 0.00 22,440 3.96

UniversalVentureCapital

InvestmentCorp.3,800,000 3.16 0 0.00 3,800,000 3.16

HantechVentureCapitalCorp. 5,013,136 2.84 131,927 0.07 5,145,063 2.91

OverseasInvestment&Devel-

opmentCorp.1,000,000 1.11 0 0.00 1,000,000 1.11

III. CORPORATE GOVERNANCE · Corporate Governance Report51 Corporate Governance Report51 2.1...

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