Dear Shareholders,

Here at President Chain Store Corporation (PCSC), we celebrate the end of each year with joyous events such as the i-Sharing Christmas festival, the balloon parade, and the OPEN!RUN road race. These occasions mark a year of happiness and prosperity for millions of families. As a provider of round-the-clock lifestyle services, President Chain Store Corp. has continued to demonstrate resilience and flexibility in achieving our core mission as a lifestyle platform. We have continued to build our lifestyle services platform offering convenient products and services that meet customer needs. Thanks to the joint efforts between 7-ELEVEN Taiwan and our various subsidiaries in 2024, we achieved record-breaking total consolidated revenue and net profit after taxes, at NT$337.9 billion and NT$13.7 billion respectively.

Operating Performance
In terms of our store operations, 7-ELEVEN Taiwan continued to explore diverse ways to integrate multiple facets of retail in our stores. In 2024, we reached the milestones of 7,000 and then 7,110 store locations in Taiwan. We also opened four new lifestyle experience spaces in Tainan and Kaohsiung, incorporating diverse new offerings such as made-to-order dishes, supermarket-fresh produce (including meats, seafood, and imported ingredients), !+? Reserve Café and Tea Bar, and local products. In addition, we are continuing our smart retail expansion efforts year after year. The X-Store 8 introduced AI product shelves, featuring the use of LiDAR image recognition technology. All products sold in this store are “grab-and-go,” with a shopping trip taking as little as 30 seconds, thanks to AI and mobile phone payment technologies.

In terms of our products and services, we are continuing to pursue innovation in our fresh foods and other products. We offer differentiated product lines such as Veggie Selection, Star Rated Cuisine, and Ohlala pasta, and meet customer needs through cross-brand collaborations, seasonal ingredients, and innovative product structures. This has allowed us to serve customers with higher-value and healthy vegetarian food. 2024 also marked the 20th anniversary of CITY CAFE. We will continue to dedicate our efforts to improving the quality and taste of the various coffee, tea, and bubble drinks under the CITY CAFE brand, diversifying our product offerings and driving steady performance growth. For our Slurpee and soft-serve ice cream product lines, we will continue to develop new products and leverage the opportunities created through social media engagement. For our services, 7-ELEVEN has established Taiwan’s most versatile and convenient delivery and pickup platform, with over 100,000 e-commerce businesses in Taiwan and abroad connected through more than 7,000 store locations.

In terms of digital development and membership services, we have continued to expand the OPENPOINT ecosystem, delivering values to our customers. With various channels such as i-Preorders, i-group buying, iOPEN Mall(C2C marketplace), smart vending machines, and food delivery services, we are creating a lifestyle services platform beyond customer expectations. Our membership grew beyond 18 million in 2024, and member contributions and the number of active members continue to reach historic highs. This is the realization of our omni-channel strategy combining online and offline experiences.

As of the end of 2024, 7-ELEVEN and its subsidiaries have a total of 13,125 store locations. 7-ELEVEN Philippines celebrated its 40th anniversary in 2024 with the opening of its 4,000th store. This is an exciting market with a population of over 100 million rich in growth opportunities. Meanwhile in China, our more than 500 7-ELEVEN stores in Shanghai and Zhejiang are seeing brighter signs for the future after a decade of dedication. Cosmed is accelerating its expansion and improving the quality of its store locations, taking advantage of new trends in healthcare, skincare, and cosmetics to improve operations and product structure. Starbucks is focusing on the brand’s core values to offer unique food and beverages, strengthen its membership services, and improve the customer experience. Transnet is continuing to serve its customers in cross-border e-commerce and online store platforms, while expanding its businesses in medical logistics and warehouses to improve business performance. The development of major logistics parks in Taiwan has been underway as planned, further strengthening the competitiveness of our supply chain. With the rapid development of technology, we will continue to look into investing in related industries to meet the needs of the digital and AI economy, in order to continue building our omni-channel lifestyle platform that provides our customers with faster, more convenient, and more valuable shopping experiences.

Sustainable Development
In addition to pursuing business growth and profits, PCSC remains committed to providing sustainable products and services. Guided by integrity, we have proactively worked toward corporate sustainability. Our hard work has paid off: with our top 5% ranking in the Taiwan Stock Exchange’s corporate governance evaluation for ten consecutive years, listing on the Dow Jones Sustainability Index World Index for six consecutive years, an A-rating from the Carbon Disclosure Project, and listing on the MSCI Index series and FTSE4Good Index series, our sustainability and governance have achieved international recognition.

In terms of corporate governance, we have established a risk and cybersecurity management committee. We have also linked ESG performance with executive compensation, ensuring ESG integration throughout our corporate culture and operational strategies. In the future, we will work to broaden the scope of our ESG commitments to our supply chain and subsidiaries so that our sustainable operation and management goals can be achieved.

In terms of environmental impact, PCSC will continue to focus on plastic reduction, carbon reduction, food waste management, and sustainable procurement as our four major pillars for which we set medium- and long-term sustainability goals. In 2024 we expanded our OPEN iECO reusable cup renting program to more than 2,500 stores, and more than 20% of our customers now bring their own cups. In terms of carbon reduction, we have set net-zero carbon emissions targets for 2050, and we continue to promote low-carbon diets and provide electric vehicle charging services. We are also broadening our efforts in supporting sustainable farms and the circular economy, introducing FSC-certified paper cups, and becoming the first convenience store chain to establish a sustainable supply chain procurement program.

In terms of giving back to society, PCSC has stayed true to our spirit of offering service anywhere, anytime. With more than 7,000 7-ELEVEN stores in Taiwan, we are building a network of diversity-and charity-friendly stores. Our OPEN! Mobile Shopping Trucks help us deliver products and services deep into rural Taiwan. We have also established Good Neighbor meal delivery teams, serving the elderly with good meals, delivered by our colleagues. Our charity fundraising platform also connects online and offline giving to help promote the ideals of sustainability across all of society.

Business Prospects
Running a business is a marathon that has no finish line. We will continue to display organizational resilience to establish a solid foundation for stable long-term growth. PCSC will continue to strive for our mission of becoming the best retail business, providing the most convenient lifestyle services, and fulfilling our responsibilities as a good corporate citizen. Guided by our three core focuses—happy company, prosperous society, and sustainable planet—we will devote every effort to provide greater customer convenience, maintain stable franchisee profits, establish a fair and friendly work environment for employees, and create more value for shareholders. In doing so, we can ensure satisfaction for our franchisees, our employees, our shareholders, and the public.