¡@


Established in 1988, KGI Securities prides itself on its core operating principles of integrity and honesty.  The Company started out with a focus on stock brokerage, proprietary share trading and underwriting, and has since grown into a brokerage that offers a multitude of services. KGI Securities has expanded into the Asia-Pacific, Hong Kong and Thailand markets.  In terms of products, KGI Securities has added to its long-standing stock brokerage business the trading of bonds and various derivatives products, including interest rate derivatives, credit derivatives and equity derivatives.  It also offers services in other kinds of structured products.  Starting out with initial market capitalization of NT$1bn and just one branch in Taiwan, KGI Securities has since grown into an industry giant with market capitalization of NT$25.38bn and 55 branches across Asia.  It is now the second largest brokerage in Taiwan.  As it celebrates its 20th anniversary this year, KGI Securities will continue to work toward becoming the best investment bank in the Asia-Pacific region.

Investment Banking

KGI Securities has kept pace with organic corporate growth and changes in the marketplace by continually winning over new clients. It has been able to do this as a result of its dedicated professionalism and innovative services. The Company's clients range from small start-up companies and mid-cap firms seeking aggressive growth, to large and mature corporations that are steadily expanding. KGI Securities is able to offer a wide array of customized financial packages that raise funds through structured instruments or guide enterprises through mergers or spin-offs, depending on the phase of development of the client. Today, KGI Securities is an established brand recognized for reliability and a broad product offering. The Company stands out among peers as a fully-integrated, innovative and dynamic investment bank.

Diversified Product Offering

Since its inception, KGI Securities has established a firm footing in Taiwan's financial markets by developing a platform that caters to the varying financial needs of investors at home and abroad. KGI Securities has developed a favourable trading environment for investors and implemented a highly-efficient Customer Relationship Management (CRM) program. In addition, it has penetrated the financial markets of such global strongholds as the United States, Hong Kong, Japan, Korea, Singapore, Thailand, Luxemburg and the United Kingdom, to bring global investment opportunities to its local clients. It has also developed a wide range of derivative products. The Company's Euro Convertible Bond (ECB) asset swap transactions and warrant issues were respectively ranked first and second in terms of market share in 2005. A broad range of customized products are also available, from structured products and bond options to NT dollar interest rate swaps and interest rate options. These additions have made KGI Securities' product portfolio even more diversified.

In order to boost income further and to provide customers with more value-added services, KGI Securities has applied for permission to run wealth management operations which securities firms in Taiwan are now eligible to do so. The Company is already internally re-organising in preparation for this new undertaking and plans to have this new service up and running in 2006. Using the regional financial product trading platform that it developed, KGI Securities has been able to integrate, for high net worth customers, financial products in Taiwan and abroad with more flexible and individual banking services.


Individual Accounts Corporate Accounts
TAIEX brokerage

Sub-brokerage of stocks in US, HK, Japan, Korea, Thailand, Singapore, UK and Luxemburg
-- Financial products listed in overseas exchanges (stock, ETF, call/put warrants)
-- Overseas bonds (credit rating BBB or higher)
-- Structured notes/bills
-- Overseas mutual funds

Primary market securities subscription (IPO shares, follow-on offering shares, newly issued CBs/EBs, WBs, TDRs)

Bond brokerage (government bonds, convertible bonds, corporate bonds, financial bonds)

Mutual funds (bund funds, stock funds, balanced funds)

Warrants (listed, contract-based)

Equity options, equity swap, bond options

Asset swap - options and credit portion

Bonds under repurchase (RP) reverse repurchase (RS) agreements

Structured products

Insurance brokerage

Borrowing or lending money in connection with securities business

Stock borrowing and lending

Wealth management

Same as individual accounts, plus:

Interest rates derivatives

Credit derivatives

Financial Advisory (M&A, spin-off,  bankruptcy protection, listing/de-listing planning, equity     restructuring for corporate reinvestment)

IPO consulting and underwriting service (Service for domestic and overseas issuer)

Emerging Market (EM) stock listing and trading

Corporate fundraising underwriting (rights issuance, follow-on offering, corporate fund raising via CBs, ECBs, EBs, EEBs, WBs, GDRs, TDRs, straight bonds or bank debentures)

Deployment in Asia

Recognizing the importance of reaching out globally, KGI Securities has, since 1996, expanded deeper into the Asia region by way of reinvestment in overseas subsidiaries. This expansion has enabled the Company to participate in global financial markets and thereby broaden its market coverage. As of 2008, KGI Securities had set up 25 operations in the Asia-Pacific region outside Taiwan, covering Hong Kong, and Thailand, with over 1,000 financial and investment professionals in place. KGI Securities' regional expansion, which is well ahead of its peers, has opened a huge window of opportunity for Taiwanese clients seeking broader exposure to international investment opportunities. International expansion has also facilitated investments by international institutional investors in the Taiwan market. In terms of globalization, KGI Securities is clearly ahead of the curve.

Subsidiaries

KGI Securities has an extensive network of subsidiaries that provide a wide range of investment products. Among these subsidiaries, KGI Securities Investment Advisory and KGI Securities Investment Trust specialize in advisory and discretionary trading services for the cash equity market and mutual funds sales. KGI Futures provides brokerage and discretionary trading services on the thriving futures and options markets. The products offered by these affiliates are very popular among clients and are recognized as the best structured and best-executed products in the industry. KGI Insurance Brokers enhances KGI Securities' product offering further, providing services that cater to investors with insurance and tax planning needs.

¡@

¡@