I.A Brief Introduction to Company
II. Company Organization
(I)Organization Chart
(II)Profiles of Major Executive
(III)The organization chart of Jih Sun Financial Holding Company and its subsidiary companies

I. A Brief Introduction to Company

1. Date of Incorporation
　 February 5, 2002
2. History :
　 The incorporation of Jih Sun Financial Holdings Ltd is a decision aligned with the global trends, a response to the government's reform of the finance sector as well as for the purposes of achieving economies of scale, capitalizing on group synergies, and strengthening our market competitiveness. At the end of 2007, the company had a total of 3,942 employees (including Jih Sun Financial Holdings, Jih Sun Securities Co. Ltd, Jih Sun International Commercial Bank, and Jih Sun International Insurance Agency etc); the major historical events are listed below :

2001/08 Jih Sun Financial Holdings Ltd was established with the consultation of KPMG and Chien Yeh Law Offices.
2001/11/14 An application was submitted to the Ministry of Finance to operate as a financial holdings company, and was approved on 2001/12/31.
2001/11/29 Applied for a permission to integrate from Fair Trade Commission, Executive Yuan, and the permission was granted on 2001/12/31.
2001/12/14 Jih Sun Securities Co. Ltd and Jih Sun International Commercial Bank each convened its own shareholders' temporary meeting. (As well as Jih Sun Financial Holdings Ltd's conveners' meeting)
2002/01/14 Applied for the public listing of Jih Sun Financial Holdings Ltd.
2002/02/05 Jih Sun Financial Holdings Ltd was setup jointly by Jih Sun Securities Co. Ltd and Jih Sun International Commercial Bank through a share exchange; 2002/02/05 was the date of exchange. Business license was obtained from the Ministry of Finance, Certificate of Business Registration was obtained from the Taipei City Government, and the company was registered under the Ministry of Economic Affairs. Jih Sun Financial Holdings Ltd became officially listed for public trading.
2002/09/10 Jih Sun International Commercial Bank acquired Hsinyin Credit Cooperative. Number of branches increased from 27 to 34.
2002/10/04 Jih Sun Securities Co. Ltd acquired Toufen Securities; adding 3 more offices to a total of 37.
2002/10/11 Jih Sun Securities Co. Ltd acquired Yuanshin Securities by issuing additional shares; adding 5 more offices to a total of 42.
2002/10/30 Jih Sun Securities Co. Ltd acquired Homei Securities. Total number of offices reached 43.
2003/06/06 The annual shareholders' meeting of Jih Sun Financial Holdings was held. In compliance with Sections 29 and 30 of the Business Mergers and Acquisitions Act, Jih Sun Financial Holdings acquired all shares of Jih Sun Securities Co. Ltd held by parties other than Jih Sun Financial Holdings on the date of exchange; making Jih Sun Securities Co. Ltd a 100% owned subsidiary of Jih Sun Financial Holdings.
2004/1/1Starting in 2004, Jih Sun Financial Holdings reorganized its management structure into four business groups based on functionality: Individual Financial Services Group, Corporate Financial Services Group, Investment and Proprietary Trading Group and Wealth Management Group.
2004/8/12Established Jih Sun International Insurance Agency Co. Ltd.
2004/12/24Jih Sun Securities Co. Ltd opened 10 new offices in 2004. Total number of offices reached 52.
2005/1/27Jih Sun International Commercial Bank acquired the Trust Department of Taiwan Development Corporation; total number of branches increased from 34 to 46.
2005/1/28Obtained credit rating from Taiwan Ratings Company. The long-term and short-term debts were rated twBBB and twA-3, respectively. Prospect was rated stable.
2005/3/28Jih Sun Financial Holdings issued its first local unsecured convertible bond. The face value of this issue totaled NT$6 billion with a maturity of 5 years.
2005/5/23Jih Sun International Commercial Bank signed a "Business and property transfer agreement" with Taiwan Development Corporation.
2005/6/1Adjusted the segmentation of customers between Individual Financial Services Group and Wealth Management Group. Added Strategic Planning units within each of the four business groups to enhance planning capabilities and marketing strategies.
2005/8/6The settlement for Jih Sun International Commercial Bank's acquisition of the Trust Department of Taiwan Development Corporation was completed.
2005/11/2Obtained credit rating from Taiwan Ratings Company. The long-term and short-term debts were rated twBBB and twA-3, respectively. Long-term credit prospects were rated stable.
2006/1/12In order to increase market share and to generate higher overall revenues, the company released the management rights of its Internet Securities Co. Ltd as well as part of its business assets.
2006/1/15Jih Sun Securities Co. Ltd was ranked first among all security brokerages for best profitability in 2005 by the Taiwan Stock Exchange. Net profit totaled NT$1,444,970,000.
2006/1/19 The grand opening of Jih Sun International Commercial Bank Renai Branch. Total branches reached 37.
2006/07/12 Securities & Futures Institute announced Jih Sun Financial Holdings as the only publicly listed company rated "A+" following the third review on the information disclosure of public listed companies (from a total of 630 companies listed on the Taiwan Stock Exchange and 402 companies listed on the GreTai Securities Market).
2006/07/21 To conform with international and local financial standards while improving the quality of financial statements of Jih Sun International Commercial Bank, the NT $9.87 billion losses from the sale of non-performing assets were written off at once instead of amortizing over 5 years as permitted by Financial Institutions Merger Act.
2006/07/21 Jih Sun Financial Holdings completed its first private placement of capital in 2006. Shinsei Bank Ltd from Japan purchased 1,080 million ordinary shares of the company (31.8% shareholding) and 630 million non-cumulative preference shares convertible into ordinary shares after 5 years. Total capital contributed amounted to NT$11,340,000,000.
2006/08/23 To improve its financial structure, Jih Sun International Commercial Bank reduced its capital totaling NT$17,067,013,000 to offset accumulated losses.
2006/08/25To strengthen its financial structure while raising its capital adequacy ratio, Jih Sun International Commercial Bank conducted a cash issue of NT$12,000,000,000.
2006/08/29New president Ray-Hung Dai of Jih Sun Financial Holdings came onboard.
2006/09/29Obtained credit rating from Fitch Ratings. Long-term and short-term debts were rated A-(twn) and F2(twn), respectively. Long-term credit prospects were rated stable.
2006/11/17 Jih Sun International Commercial Bank established its "Trade Finance Division" consisting of a team of trade experts providing better services to local import/exporters across Taipei, Taichung, and Kaohsiung.
2006/12/18 Under the request by the Financial Supervisory Commission, Taiwan Academy of Banking and Finance conducted a review on banks' protection towards consumers; Jih Sun International Commercial Bank was recognized as one of the top thirteen banks.
2007/03/28
To increase the working capital of Jih Sun International Commercial Bank, strengthen its financial structure and raise the capital adequacy ratio, Jih Sun Financial Holdings invested an additional NT$1 billion into Jih Sun International Commercial Bank.
2007/06/26
To offset previous losses and to strengthen its financial structure, Jih Sun Financial Holdings reduced its capital by NT $13,711,490,000.
2007/07/27
Following the fourth review on the information disclosure of public listed companies by the Securities & Futures Institute, Jih Sun Financial Holdings was rated A+, meaning that the company is absolutely transparent in the disclosure of material information and withholds nothing from investors.
2007/10/15 New General Manager Yu-Chun Liu of Jih Sun International Commercial Bank came onboard.
2007/10/17 Obtained credit rating from Fitch Ratings. Long-term and short-term debts were rated A-(twn) and F2(twn), respectively. Long-term credit prospects were rated stable.
2008/06/04 Following the fifth review on the information disclosure of public listed companies by the Securities & Futures Institute, Jih Sun Financial Holdings was rated "A", meaning that the company is transparent in the disclosure of material information and withholds nothing from investors.
2008/11/14 Obtained credit rating from Fitch Ratings. Long-term and short-term debts were rated BBB+(twn) and F2(twn), respectively. Long-term credit prospects were rated Negative.
2009/03/04 New General Manager Ms. Shu-Chao Yang of Jih Sun International Commercial Bank was on board.
2009/03/21 Jih Sun Securities Co. Ltd. (in introducing broker team) and Jih Sun Futures Co. Ltd. (in futures brokerage merchant team) received "2008 Futures Brokerage Business Trading Volume Award" from Taiwan Futures Exchange.
2009/05/21
Jih Sun International Commercial Bank Co., Ltd., the subsidiary of Jih Sun Financial Holding Co., Ltd. will reduce its capital by 12.537 billion (the rate of capital-reducing is 82.58%) in order to make up losses. In addition, Jih Sun International Commercial Bank Co., Ltd. will increase paid-in capital by a cash increment NT$9.401 billion. This is estimated to be done before the end of June. After Jih Sun International Commercial Bank’s capital-reducing and cash increment, the paid-in capital of Jih Sun International Commercial Bank will become 12.046 billion and the Book Value Per Share will raise to around NT$10.
2009/06/19 Jih Sun FHC held a shareholder ordinary meeting on June 19, 2009, and elected directors for the 4th board which includes 11 directors ( including 3 independent directors). To strengthen our corporate governance connecting international development, we also set up an audit committee to replace supervisor from now on.



II. Company Organization

(I) Organization Chart



The principal functions of each division
1.Jih Sun Financial Holdings was incorporated in compliance with the Financial Holding
　Company Act, the Company Act and other relevant regulations.
(1) The Shareholders' Meeting is the highest authority of the company, followed by the Board of Directors, Chairman, President, etc.
(2) The Audit and Risk Management Divisions are established under the Board of Directors, and are responsible for the audit and risk management of the company and its subsidiaries. They report to the Board of Directors and Supervisors on a regular basis.
2. The company has one President handling various departments. The President is responsible
　 for the running of the company in line with the resolution of the Board of Directors, and
　 representsthe company within the authority granted to the President.
　The following divisions have been established under the control and supervision of the
　Chief Executive Officer:
Division
Responsibility
General Manager's
Office
(1)Formulate mid-term and long-term business strategies and operational guidelines.
(2)Communicate and promote business strategy, operational goal, business culture and vision.
(3) In charge of the evaluation and implementation of investment and M&A plans.
(4)Supervise subsidiaries in reaching the business and financial goals.
(5) Management of each division's business performance.
(6) In charge of corporate governance best practice.
(7) Conduct peer analysis among financial holding companies.
(8) Maintain good relationships with media, investors and the government bodies, and perform crisis management when necessary.
(9) Participate in charity activities. Maintain and promote the superior public image of Jih Sun Financial Holdings.
(10)Review, maintenance, and update of the group website. Public press release management.
(11)Prepare Chinese and English annual reports.
E-Commerce
Division
(1)Planning of the electronic banking business.
(2)Promotion and management of the electronic banking business.
(3) Design and maintenance of the transaction platforms and websites.
(4) Management of network resources.
(5) Provide trouble shooting and customer service for electronic transactions.
Financial Planning Division
(1) Ensure that financial statements and regulatory reporting are completed promptly and accurately in compliance with regulations.
(2)Establish short-term, mid-term and long-term target capital structures for the financial holdings company and its subsidiaries; advise on strategic asset allocations.
(3)Increase returns to shareholders; establish performance review systems and monitor results.
(4)Meetings with the Assets and Liabilities Management Committee on a regular basis to present financial performances and to discuss all related matters.
(5) Operations and management relating to the external credit ratings of the financial holdings company (including subsidiaries).
(6)Responsible for the appointment of external auditors and the negotiation of audit fees .
(7) Conducts financial evaluations prior to mergers, acquisitions, or launching of new business units.
(8) Allocation of earnings among the financial holdings company and its subsidiaries.
(9) Execution of budgeted operations and the budgeting of the financial holding company and its subsidiaries. Monitor performance results and amend budgets.
(10) Evaluate the performance of each business unit on a regular basis.
(11) Short-term, mid-term and long-term planning, funding, and fund raising for the financial holding company and its subsidiaries.
(12) Evaluate and analyze long term investments of the financial holding company and its subsidiaries prior to execution. Monitor and manage performance results.
(13) Assist and supervise the accounting operations of the financial holding company and its subsidiaries.
(14) Ensure that securities settlements and bookkeeping operations are prompt and accurate.
(15) In charge of NTD & foreign currency interbank call loan business, commercial paper trading and management for bank subsidiary.
(16) In charge of the pricing, structure analysis, adjustment recommendations and risk control management for bank subsidiary's balance sheet.
(17) Provide consultation while bank subsidiary identifying and adjusting interest rates of savings and loans.
(18) Other matters regarding to the strategies and analysis for bank subsidiary's asset and liability management.
Administration Division
(1)Human resource planning, deployment, and staff training for the group.
(2) Manage renovation, procurement, general affairs etc, search for suitable leases or acquisitions of office locations.
(3)Compliance research, review group contracts and handle litigation cases.
(4)Manage group marketing campaigns and related matters.
(5) Processes the delivery and receipt of official documents. Manages authorized signatures and seals.
(6) Establishes and enforces regulatory compliance.
IT Division
(1) Responsible for providing technological services required for business development; analyzing changes in the external IT environment, internal campaigns and financial targets in order to determine the most suitable IT structure and search for the best solutions.
(2) Responsible for the management of the information system, evaluation between outsourcing and self-develop, development, implementation, and upgrade of the operating systems and the management of other specialized projects.
(3) Responsible for managing the daily uses of corporate information, network, mainframe server, system, security, storage media and other resources; controls system on/off, task scheduling, service monitoring and other daily operations.
(4)Provides technical supports to users of corporate information, customer services, resolves issues, manages events, trouble shooting and other maintenance procedures.



(II) Profilesof Major Executive

As of 2009/06/17

Title
Name
Chairman of Jih Sun Financial Holding Co. Donald Chen
Vice Chairman of Jih Sun Financial Holding Co. James C. Tang

Title
Name
Education and working experience
Current other jobs with the bank and other companies
President
of Jih Sun
Financial
Holding
Co. 		Chao,
Yung
Fei 		Chihlee Institute
of Technology,
major in
Accounting
1. Ensure Jih Sun Financial Holding Company's overall business continuity and performance enhancement.
2.Based on the Board of Director's decision on business strategy , each business unit's laws and regulations stipulated by the government offices, analysis of macroeconomic situation, overall financial market development trend, compliance of internal and external guidelines, to formulate business policy and plan Jih Sun Financial Holding Company's medium and long-term business strategy and managerial goals.
3.Superintend the reaching of business and financial goals.
4.Supervise the unit superintendent to reinforce staff allocation, recruitment, training and development.
5.Strengthen employee's professionalism and core competency to build up superior brand image.
President
of Jih Sun
Securities
Co. 		Tsai,
Yu Bin
MBA, National
Chungshing U.
1. Ensure Jih Sun Securities Company's overall business continuity and performance enhancement.
2.Based on the Board of Director's decision on business strategy , each business unit's laws and regulations stipulated by the government offices, analysis of macroeconomic situation, overall financial market development trend, compliance of internal and external guidelines, to formulate business policy and plan Jih Sun Securities Company's medium and long-term business strategy and managerial goals.
3.Superintend the reaching of business and financial goals.
4. Supervise the unit superintendent to reinforce staff allocation, recruitment, training and development.
5. Strengthen employee's professionalism and core competency to build up superior brand image.
President of
Jih Sun
International
Commercial
Bank 		Yang,
Shu
Jaw 		Ming Chuan
College of
Commerce
1. 1. Ensure Jih Sun International Commercial Bank's overall business continuity and performance enhancement.
2.Based on the Board of Director's decision on business strategy , each business unit's laws and regulations stipulated by the government offices, analysis of macroeconomic situation, overall financial market development trend, compliance of internal and external guidelines, to formulate business policy and plan Jih Sun International Commercial Bank's medium and long-term business strategy and managerial goals.
3.Superintend the reaching of business and financial goals.
4.Supervise the unit superintendent to reinforce staff allocation, recruitment, training and development.
5.Strengthen employee's professionalism and core competency to build up superior brand image.




(III) Ownership structure of the financial holding company and its subsidiaries


Invested businesses

Shares held by the company

Shares held by Directors, Supervisors, managers, and enterprises under direct or indirect control of the above parties

Consolidated shareholding position

Shares

Shareholding %

Shares

Shareholding %

Shares

Shareholding %

Jih Sun Securities Co. Ltd.
1,157,212,760
100%

-

-

1,157,212,760
100%
Jih Sun International Commercial Bank Co. Ltd.
1,518,058,708
100%

-

-

1,518,058,708
100%
Jih Sun International Insurance Agency Co. Ltd.
300,000
100%

-

-

300,000
100%