Yuanta Financial Holding Co., Ltd

December 07, 2007

Yuanta Securities Asia Financial Services Limited increase existing shares on The First Securities Joint Stock Company in Vietnam.

Name and nature of the subject matter (if preferred shares, the terms and conditions of issuance shall also be indicated, e.g. dividend yield): Common stock of First Securities Joint Stock Company in Vietnam.
Date of occurrence of the event: 2007/09/28~2007/12/15
Volume, unit price, and total monetary amount of the transaction:
1. Since 09/28/2007, Yuanta Securities Asia Financial Services Limited (the ”Yuanta Asia Financial”) has increased existing shares on The First Securities Joint Stock Company (the ”First Securities”); total investment amount accounts for USD 4.85 million (about NTD 158 million). Yuanta Asia Financial's stake on First Securities will increase from 28.1% to 43.84%. The said increase has been approved by the relevant authority.
2. Pursuant to the regulation of the Vietnamese government, First Securities intends to issue 15,000,000 new ordinary shares of VND 10,000 (par value) each to increase paid-up capital from VND 150 billion (about NTD 300 million) to VND 300 billion (about NTD 600 million). Yuanta Asia Financial will subscribe to an additional 6,576,300 new issued shares of First Securities at par value for a total consideration of VND 65,763,000,000 (about NTD 131 million). Yuanta Asia Financial's holding number of shares of First Securities will therefore increase to 13,152,600 shares after completion of this subscription, but stake in First Securities will remain unchanged at 43.84%. The said subscription is expected to complete before 12/15/2007 and will be reported to the relevant authority within 5 days after completion.
Counterpart to the trade and its relationship to the Company (if the trading counterpart is a natural person and furthermore is not an actual related party of the Company, the name of the trading counterpart is not required to be disclosed):First Securities is a joint venture partner of Yuanta Asia Financial.
Where the counterpart to the trade is an actual related party, a public announcement shall also be made of the reason for choosing the related party as trading counterpart and the identity of the previous owner (including its relationship with the company and the trading counterpart), price of transfer, and date of acquisition: N/A
Where a person who owned the property within the past five years has been an actual related person of the company, a public announcement shall also include the dates and prices of acquisition and disposal by the related person and the person's relationship to the company at those times: N/A
Matters related to the creditor's rights currently being disposed of (including types of collateral of the disposed creditor's rights; if the creditor's rights are creditor's rights toward a related person, the name of the related person and the book amount of the creditor's rights toward such related person currently being disposed of must also be announced): N/A
Anticipated profit or loss from the disposal (not applicable in cases of acquisition of securities) (where originally deferred, the status or recognition shall be stated and explained):N/A
Terms of delivery or payment (including payment period and monetary amount), restrictive covenants in the contract, and other important stipulations: Yuanta Asia Financial will subscribe to an additional 6,576,300 new issued sharesb, which accounts for VND 65,763,000,000(about NTD 131 million), and the payment has to be made before 12/15/2007.
The manner in which the current transaction was decided, the reference basis for the decision on price, and the decision-making department:
1. Due to the growing Vietnamese market, Yuanta Asia Financial's Board of Directors has approved to increase existing shareholding on First Securities before 9/28/2007; total investment amount accounts for USD 4.85 million (about NTD 158 million). Yuanta Asia Financial's stake on First Securities will increase from 28.1% to 43.84%.
2. Pursuant to the regulation of the Vietnamese government, First Securities intends to issue 15,000,000 new ordinary shares of VND 10,000 (par value) each to increase paid-up capital from VND 150 billion (about NTD 300 million) to VND 300 billion (about NTD 600 million). Yuanta Asia Financial will subscribe to an additional 6,576,300 new issued shares of First Securities at par value for a total consideration of VND 65,763,000,000 (about NTD 131 million).
Current cumulative volume, amount, and shareholding percentage of holdings of the security being traded (including the current trade) and status of any restriction of rights (e.g. pledges):Yuanta Asia Financial's shareholding of First Securities will increase to 13,152,600 shares after completion of this subscription, but stake in First Securities will remain unchanged at 43.84%.
Current ratio of long or short term securities investment (including the current trade) to the total assets and shareholder's equity as shown in the most recent financial statement and the operating capital as shown in the most recent financial statement: Current investment on First Securities accounts for 0.06% of the total Asset, 0.34% of the shareholder's equity.
Broker and broker's fee: N/A
Concrete purpose or use of the acquisition or disposition: Yuanta Asia Financial has increase its stake on First Securities because of the growing market of Vietnam, and the regulation of the Vietnamese government.
Net worth per share of company underlying securities acquired or disposed of: VND 16,337 (about NTD 33)
Do the directors have any objection to the present transaction?: No.
Has the CPA issued an opinion on the unreasonableness of the price of the current transaction?: No.
Any other matters that need to be specified: None.