Page 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�
Page 2
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
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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
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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)
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Corporate Governance Report51� Corporate Governance Report51�
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
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Corporate Governance Report51� Corporate Governance Report51�
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.
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Corporate Governance Report51� Corporate Governance Report51�
Name Current Position with Other Company
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.
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Corporate Governance Report51� Corporate Governance Report51�
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%)
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Corporate Governance Report51� Corporate Governance Report51�
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
Page 10
Corporate Governance Report51� Corporate Governance Report51�
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.
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Corporate Governance Report51� Corporate Governance Report51�
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) - - -
AssistantVicePresident
Fu-ShangYang 2002.03.01 199,493 0.00 131,507 0.01NationalChungHsingUniversity
(Note3) - - -
AssistantVicePresident
Hong-BinLee 2002.03.01 0 - 0 -FuJenCatholicUniversity
(Note3) - - -
AssistantVicePresident
Chung-SungWu 1997.04.08 0 - 0 -MBA,OklahomaStateUniversity,U.S.A.
(Note3) - - -
AssistantVicePresident
Tsung-MingSu 2000.08.01 0 - 0 -MBA,IowaStateUniversity,U.S.A.
(Note3) - - -
AssistantVicePresident
Chien-LiYin 2001.12.01 134,189 0.00 21,236 0.00NationalChungHsingUniversity
(Note3) - - -
AssistantVicePresident
Long-HongLu 2003.05.01 0 - 1,384 0.00NationalChengKungUniversity
(Note3) - - -
AssistantVicePresident
IkeuchiChihiro 2004.10.18 0 - 0 -NipponVeterinaryandanimalScienceUniv.,Japan
NA - - -
AssistantVicePresident
Ying-ThungYu 2005.01.01 0 - 34,810 0.00EMBA,NationalChengKungUniversity
(Note3) - - -
AssistantVicePresident
Jui-ShengWang 2005.01.01 0 - 11,302 0.00EMBA,NationalChengKungUniversity
(Note3) - - -
AssistantVicePresident
Jui-TienHuang 2005.01.01 28,000 0.00 0 -Master,NationalKaohsiungFirstUniv.ofScienceandTech.
(Note3) - - -
Note1:Shareholdingbynomineearrangement:None.
Note2:Managerswhohaveeverholdpositionsintheauditor’sagencyoritsaffiliatedcompanies:None.
Note3:Currentpositionwithothercompany
Page 12
Corporate Governance Report5�0 Corporate Governance Report5�1
Name Current Position with Other Company
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.
Page 13
Corporate Governance Report5�0 Corporate Governance Report5�1
Name Current Position with Other Company
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.
Page 14
Corporate Governance Report5�� Corporate Governance Report5��
Name Current Position with Other Company
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.
Page 15
Corporate Governance Report5�� Corporate Governance Report5��
Name Current Position with Other Company
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.
Page 16
Corporate Governance Report5�� Corporate Governance Report5��
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
ConsolidatedSubsidiaries
of UPECUPEC
ConsolidatedSubsidiaries
of UPECUPEC
ConsolidatedSubsidiaries
of UPEC
UPECConsolidatedSubsidiaries
of UPECUPEC
ConsolidatedSubsidiaries
of UPECUPEC
ConsolidatedSubsidiaries
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
GiantAttemptLtd.(Representative:Ping-ChihWu),Hsiu-JenLiu,Po-MingHou,Ying-JenWu,YoungYunInv.Co.,Ltd.(Representative:Chung-HoWu),Ching-ChienHouSu
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$100,000,000
Page 17
Corporate Governance Report5�� Corporate Governance Report5��
Title Name
Remuneration Paid to Directors Directors’ Salary, Compensation, and
Allowance (A+B+C) as % 2006 Net Income
Compensation Earned as Employee of UPEC or of UPEC Subsidiary Affiliates Total Compensation Paid to Directors
(A+B+C+D+E) as% 2006 Net Income Other
Compensationfrom Non-SubsidiaryAffiliates
Salary (A)Compensation (B)
(Note 1)Allowance (C)
(Note 2)Salary, Bonus..etc.(D)
(Note 3)Employee Profit Sharing (E) ESOP (F)
UPECConsolidatedSubsidiaries
of UPECUPEC
ConsolidatedSubsidiaries
of UPECUPEC
ConsolidatedSubsidiaries
of UPECUPEC
ConsolidatedSubsidiaries
of UPECUPEC
ConsolidatedSubsidiaries
of UPEC
UPECConsolidatedSubsidiaries
of UPECUPEC
ConsolidatedSubsidiaries
of UPECUPEC
ConsolidatedSubsidiaries
of UPECCash Stock Cash Stock
ChairmanKao Chyuan Inv. Co., Ltd. (Representative: Chin-Yen Kao)
4,692 24,571 69,632 72,818 12,540 14,160 2.41% 1.79% 6,001 12,687 0 0 0 0 0 0 2.57% 1.99% 16,736
ManagingDirector
Kao-Huei Cheng
ManagingDirector & C.E.O.
Chang-Sheng Lin
DirectorGiant Attempt Ltd. (Representative: Ping-Chih Wu)
Director Hsiu-Jen Liu
Director Po-Ming Hou
Director Ying-Jen Wu
DirectorYoung Yun Inv. Co., Ltd. (Representative: Chung-Ho Wu)
Director Ching-Chien Hou Su
Unit:NT$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$1,038thousanddollars.
Page 18
Corporate Governance Report5�� Corporate Governance Report5��
B. Remuneration Paid to Supervisors Unit:NT$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)
(Note 1)Allowance (C)
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$89,527thousandatitsmeetingonApr.26,2007.Theproposalcompensationwillbeeffecteduponthe
approvalofshareholdersattheAnnualShareholderMeetinginJune,2007.
Page 19
Corporate Governance Report5�� Corporate Governance Report5��
C. Compensation Paid to President and Vice Presidents Unit:NT$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
Consolidated Subsidiaries
of UPECUPEC
Consolidated Subsidiaries
of UPECCash Stock Cash Stock
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$1,589thousanddollars.
Page 20
Corporate Governance Report5�� Corporate Governance Report5��
D. Employee Profit Sharing Granted to Management Team in 2006
Title NameProfit Sharing
Stock
Profit Sharing
Cash (NT$
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
Page 21
Corporate Governance Report5�� Corporate Governance Report5��
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.
Page 22
Corporate Governance Report5�0 Corporate Governance Report5�1
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.,
Ltd.(Representative:
Chung-HoWu)
8 0 100
Director Ching-ChienHouSu 8 0 100
Supervisor Kao-KengChen 8 0 100
Supervisor
ChauChihInv.Co.,
Ltd.(Representative:
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
Page 23
Corporate Governance Report5�0 Corporate Governance Report5�1
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.
ConsistentwiththeCorporateGovernanceBest-PracticePrinciplesforTSEC/GTSMListedCompany
(3)RiskmanagementmechanismandfirewallbetweentheCompanyanditsaffiliates
Rulesaremadetostrictlyregulatetheactivitiesoftrading,endorsementandloansbetweentheCompanyanditsaffiliates.Alsowefollowthe“CriteriaofInternalControlMechanismforPublicCompany”outlinedbyFinancialSupervisoryCommissiontodrafttheguidelinesforthe“Supervisionandgovernanceofthesubsidiaries”inordertomaketotalriskcontrolofthesubsidiaries.
ConsistentwiththeCorporateGovernanceBest-PracticePrinciplesforTSEC/GTSMListedCompany
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.
ConsistentwiththeCorporateGovernanceBest-PracticePrinciplesforTSEC/GTSMListedCompany
3.3 Reasons for the Discrepancy of Corporate Governance between the Company and Best-Practice Principles in TSEC/GTSM Listed Companies
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Corporate Governance Report5�� Corporate Governance Report5��
Item Executions
Reasons for the discrepancy of corporate governance between the
company and best-practice principles in TSEC/GTSM Listed Companies
3.Thecompositionandresponsibilitiesofsupervisors
(1)IndependentSupervisor(s) Noindependentsupervisorsareavailable.
Thenumberofsupervisorsisdeterminedinaccordancewiththecorporatelaw,whichsupervisorscanexercisetheauthorityofsupervisionindependently.Henceifindependentsupervisorweresetup,itwillbehardtomakecleardifferentiationwiththeexistingfunctionofothersupervisors.Itisthereforeconsiderednotmandatorytosetupindependentsupervisors.
(2)Communicationbetweensupervisorsandemployees/shareholders
Thesupervisorscancommunicatewithemployeesandstockholdersthroughspokesperson,laborunion,andintheShareholdersMeeting.
ConsistentwiththeCorporateGovernanceBest-PracticePrinciplesforTSEC/GTSMListedCompany
4.Thecompany’scommunicationwithitsstakeholders
Relevantdepartments,includinglabourunion,customerservicecenter,purchasing,financingandothers,areavailabletokeepgoodcommunicationwiththeemployees,consumers,suppliersandcreditors.
ConsistentwiththeCorporateGovernanceBest-PracticePrinciplesforTSEC/GTSMListedCompany
5.InformationDisclosure
(1)Establishmentofcorporatewebsitetodiscloseinformationregardingthecompany’sfinancials,businessandcorporategovernancestatus
Theinformationaboutcompany’sfinancialandcorporategovernanceisavailableatwww.uni-president.com.tw
ConsistentwiththeCorporateGovernanceBest-PracticePrinciplesforTSEC/GTSMListedCompany
(2)Otherinformationdisclosurechannels(e.g.Englishwebsite,assignspecialisttocollectinformationandmakedisclosure,spokesperson,web-castinvestorconference)
1.SetupanEnglishwebsite:www.uni-president.com.
2.Assignedrelevantdepartmentstocollectanddisclosecompanyinformation.
3.Currentlywehaveonespokespersonandtwodeputyspokesmen.
4.Discloseinvestorconferences’informationoncorporatewebsite.
ConsistentwiththeCorporateGovernanceBest-PracticePrinciplesforTSEC/GTSMListedCompany
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)
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Corporate Governance Report5�� Corporate Governance Report5��
Item Executions
Reasons for the discrepancy of corporate governance between the
company and best-practice principles in TSEC/GTSM Listed Companies
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)
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Corporate Governance Report5�� Corporate Governance Report5��
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.
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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.
2006.04.21 (12th Board Meeting)
(10)Acceptanceoftheconsolidatedandnon-consolidatedfinancialstatementsofyear2005.
(11)ApprovedadditionalinvestmentofNTD607.5millionintoPresidentFairDevelopmentCorp.
(12)Approvedthedistributionofretainedearningsforyear2005.
(13)Approvedfurthercash investmentofUSD3,970thousand intoPTABCPresidentEnterprises Indonesiathrough
Uni-PresidentSoutheastAsiaHoldingsLtd.
(14)Approvedthedeletionofnon-competitionagreementoncompany’smanagers.
(15)Approvedtheamendmentofcompany’sregulationgoverningtheprocedureforboardofdirectorsmeeting.
2006.06.23 (13th Board Meeting)
(16)Approvedtheacquisitionof28.57%shareholdingsofBeijingPresidentEnterprisesDrinks&FoodCo.,Ltd.and
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Corporate Governance Report5�� Corporate Governance Report5��
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.
2006.08.23 (14th Board Meeting)
(23)Acceptanceof2006semi-yearfinancialstatements.
(24)ApprovedtheterminationofstockownershipinChinaHuiYuanJuiceHoldingCo.,Ltd.
(25)ApprovedadditionalinvestmentofTHB200millionintoUni-President(Thailand)Ltd.
(26)Approveddispositionof53.74%shareholdingsofPresidentPharmaceuticalCorp.toPresidentChainStoreCorp.
(27)Approvalofobtainingloanfromthebankandprovidingguaranteeforothers.
2006.09.28 (15th Board Meeting)
(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.
2006.11.07 (16th Board Meeting)
(36)Approvalofacquiring19.5%sharesofTaitMarketing&DistributionCorporationatNTD323million.
2006.12.04 (17th Board Meeting)
(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
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(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.
2007.02.07 (19th Board Meeting)
(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.
2007.03.09 (20th Board Meeting)
(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.
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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.
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Corporate Governance Report5�� Corporate Governance Report5��
Unit:Share
Title Name
2006 As of Apr. 30, 2007
HoldingIncrease
(Decrease)
PledgedHoldingIncrease
(Decrease)
HoldingIncrease
(Decrease)
PledgedHoldingIncrease
(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
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Corporate Governance Report5�0 Corporate Governance Report5�1
Title Name
2006 As of Apr. 30, 2007
HoldingIncrease
(Decrease)
PledgedHoldingIncrease
(Decrease)
HoldingIncrease
(Decrease)
PledgedHoldingIncrease
(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.
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Corporate Governance Report5�0 Corporate Governance Report5�1
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.,
Ltd.(Representative:
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
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Corporate Governance Report5�� Corporate Governance Report5��
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
Page 35
Corporate Governance Report5�� Corporate Governance Report5��
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