Statement Of Shareholder’s Equity (In Millions of New Taiwan Dollars) Common Stock Preferred Stock Capital Surplus Retained Earnings Unrealized revaluation increment Unrealized Gains (Losses) On Financial Instrument Cumulative Translation Adjustment Total BALANCE, DECEMBER 31, 2007 33,209 3,000 47 17,142 5,572 1,026 0 59,996 Common stock issued for cash 8,624 0 7,681 0 0 0 0 16,305 Redemption of prefer stock 0 (3,000) 0 0 0 0 0 (3,000) Transfer property and equipment revaluation increment to other income 0 0 0 0 (1) 0 0 (1) Change of unrealized gains  on available-for-sale financial assets 0 0 0 0 0 (28,207) 0 (28,207) Effect of long-term equity investments,net 0 0 0 0 0 (119) 108 (11) Share-based payments 0 0 343 0 0 0 0 343 Appropriations and distributions for 2007 net income 0 0 0 (908) 0 0 0 (908) Net loss in year ended December 31, 2008 0 0 0 (19,738) 0 0 0 (19,738) BALANCE, DECEMBER 31, 2008 41,833 0 8,071 (3,504) 5,571 (27,300) 108 24,779 Common stock issued for cash 8,000 0 10,000 0 0 0 0 18,000 Transfer property and equipment revaluation increment to other income 0 0 0 0 (1,300) 0 0 (1,300) Change of unrealized gain on available-for-sale financial assets 0 0 0 0 0 15,166 0 15,166 Effect of long-term equity investments,net 0 0 0 0 0 78 (28) 50 Share-based payments 0 0 244 0 0 0 0 244 Offset of accumulated deficit 0 0 (3,968) 3,968 0 0 0 0 Net income in year ended December 31, 2009 0 0 0 106 0 0 0 106 BALANCE, DECEMBER 31, 2009 49,833 0 14,347 570 4,271 (12,056) 80 57,045 Common stock issued for cash 4,722 0 5,278 0 0 0 0 10,000 Transfer property and equipment revaluation increment to other incomeother income 0 0 0 0 (133) 0 0 (133) Change of unrealized gain on available-for-sale financial assets  0 0 0 0 0 (697) 0 (697) Effect of long-term equity investments,net 0 0 1 0 0 42 (52) (9) Share-based payments 0 0 174 0 0 0 0 174 Net income in year ended December 31, 2010 0 0 0 393 0 0 0 393 BALANCE, DECEMBER 31, 2010 54,555 0 19,800 963 4,138 (12,711) 28 66,773 Prior period adjustments (Note 1) 0 0 0 (227) 0 0  0 (227) Transfer property and equipment revaluation increment to other incomeother income 0 0 0 0 (14) 0 0 (14) Change in unrealized loss on available-for-sale financial assets 0 0 0 0 0 (24,824) 0 (24,824) Effect of long-term equity investments,net 0 0 0 0 0 (97) 59 (38) Appropriation of 2010 net income 0 0 0 (234) 0 0 0 (234) Legal reserve 0 0 0 24 0 0 0 24 Special reserve 0 0 0 210 0 0 0 210 Net loss in nine-month periods ended September 30, 2011 0 0 0 3,241 0 0 0 3,241 BALANCE, SEPTEMBER 30, 2011 54,555 0 19,800 3,977 4,124 (37,632) 87 44,911

Note 1: According to the SFAS Interpretation No. (100) 270 issued by the Accounting Research and Development Foundation of the ROC on July 21, 2011, the Company’s gain on sale of Zhong-Shang real estate trust fund to Shin Kong No. 1 trust fund should be deferred to the extent of the Company’s percentage of ownership in Shin Kong No. 1 trust fund multiplied by the Company’s percentage of ownership in Zhong-Shang real estate trust fund. As a result, prior period adjustment was made on the accumulated deficit as of June 30, 2010; it increased by $227 million, as adjusted.