Taiwan
Thailand
¡@

BALANCE SHEETS (Unaudited)

KGI SECURITIES CO., LTD.
March 31, 2010 and 2009
(Expressed in New Taiwan Thousand Dollars)


ASSETS
03/31/10

03/31/09

CURRENT ASSETS
 
¡@Cash and cash equivalents
$4,043,030
$6,960,088
¡@Financial assets measured at fair value through profit or loss-current
36,595,437
33,919,214
¡@Bonds purchased under resale agreements 
9,556,797
2,043,751
¡@Margin loans receivable-net
28,445,310

6,493,331

   Refinancing Margin 46,745 -
    Refinancing deposits receivable 40,604 -
¡@Stock borrowing collateral price
157,620
17,967
¡@Stock borrowing margin
3,551,325
66,567
¡@Notes receivable-net
391
120
¡@Accounts receivable-net
3,579,057
370,056
   Prepayments

111,906

21,126

¡@Pledged assets-current
615,000
383,700
¡@Deferred income tax assets-current
-
54,848
   Available-for-sale financial assets-current

3,558,535

2,083,151

¡@Other current assets
1,252,176
341,551
¡@¡@Total Current Assets
91,553,933
52,755,470
¡@ ¡@
FUNDS AND INVESTMENTS
¡@Long-term equity investments using the equity method
11,675,639
10,932,461
¡@Available-for-sale financial assets-non-current
2,746,544
2,326,873
   Bonds investments for which no active market exist-non-current 19,197 23,608
¡@¡@Total Funds and Investments
14,441,380
13,282,942
¡@ ¡@
PROPERTY AND EQUIPMENT-NET
¡@Land
2,539,935
2,305,982
¡@Buildings
1,016,538
923,340
¡@Equipment
1,841,473
1,697,727
¡@Prepayments for property and equipment
19,149
6,028
¡@Leasehold improvements
125,266
110,823
¡@Less: Accumulated depreciation
(1,568,240)
(1,423,877)
¡@¡@Property and Equipment- Net
3,974,121
3,620,023
¡@ ¡@
INTANGIBLE ASSETS
   Goodwill 5,204,217 -
   Deferred pension costs 6,439 10,657
   Other intangible assets 3,233,591 43,236
¡@    Total Intangible Assets
8,444,247
53,893
¡@ ¡@
OTHER ASSETS
¡@Operation bond
1,670,000
695,000
¡@Settlement/clearance fund
582,901
353,081
¡@Guarantee deposits-out
322,219
542,154
¡@Deferred charges
83,523
39,879
   Pledged assets-non-current

23,882

-

¡@Leased assets-net
334,656
216,936
¡@Accounts receivable overdue-net
97,346
22,364
   Cash and cash equivalents-collected for settlement of warrants

6

3

    Cash and cash equivalents-collected for underwriting payment of shares
294,600
48
   Others

38,439

-

¡@¡@Total Other Assets
3,447,572
1,869,465
¡@ ¡@
TOTAL ASSETS
$121,861,253
$71,581,793
(continue on next page)

BALANCE SHEETS
(Unaudited)
KGI SECURITIES CO., LTD.
March 31, 2010 and 2009
(Expressed in New Taiwan Thousand Dollars)

LIABILITIES AND SHAREHOLDERS' EQUITY
03/31/10

03/31/09

CURRENT LIABILITIES    
¡@Short-term borrowings
$2,940,000
-
   Commercial papers payable-net

8,527,385

-

¡@Bonds sold under repurchase agreements
35,220,470
26,548,583
¡@Financial liabilities measured at fair value through profit or loss-current
4,646,188
4,824,877
¡@Deposits for short sales 2,416,948
726,804
¡@Short sales proceeds payable 2,780,021
817,389
   Securities lending refundable deposits 5,507,918

-

   Notes payable 27,596

14,969

¡@Accounts payable 4,943,569
660,923
¡@Amounts received in advance 2,630
130
¡@Amounts collected for other parties 222,979
271,730
¡@Other payable 1,142,268
404,100
¡@Income tax payable 3,494,506
2,497,388
   Deferred income tax liabilities-current 16,531

-

    Current portion of long-term borrowings 2,080,000

-

¡@Other financial liabilities-current 2,024,181
418,727
¡@¡@Total Current Liabilities 75,993,190
37,185,620
¡@ ¡@
LONG-TERM LIABILITIES
¡@ Corporate bonds payable
-
2,080,000
¡@ ¡@ ¡@
OTHER LIABILITIES
¡@
¡@
¡@Reserve for default losses 200,000
200,000
¡@Reserve for trading losses 102,362

79,332

¡@Deposits received 20,910
20,587
   Accrued pension liabilities-non-current 453,063

51,941

¡@Deferred income tax liabilities-non-current 25,119
27,251
    Collected for underwriting payment of shares 274,140

-

¡@Others 6,063
4,917
¡@¡@Total Other Liabilities 1,081,657
384,028
¡@ ¡@ ¡@
CREDIT ITEMS FOR TRADE BROKERAGE-NET 176,140

386,704

¡@ ¡@ ¡@
¡@¡@Total Liabilities 77,250,987
40,036,352
¡@ ¡@ ¡@
SHAREHOLDERS' EQUITY ¡@
¡@
¡@Common stock 32,072,362
25,380,862
¡@Capital reserve ¡@ ¡@
       Capital reserve-additional paid-in capital common stock 2,602,528 -
       Capital reserve-treasury stock transactions 2,517 -
     Capital reserve-surplus from business combination 46,273 46,273
       Capital reserve-employee stock option 87,000 87,000
    Retained earnings ¡@ ¡@
¡@    Legal reserve 2,084,701
1,898,058
¡@    Special reserve 6,748,649
3,776,769
¡@    Unappropriated earnings 2,849,236
3,804,797
    Other items in shareholders' equity ¡@ ¡@
¡@    Translation adjustments (86,689)
395,253
      Net loss not recognized as pension costs (112,222)

(26,808)

¡@    Treasury stock (844,811)
(850,797)
¡@    Unrealized losses on financial instruments (839,278)

(2,965,966)

         Total Shareholders' Equity 44,610,266
31,545,441
¡@ ¡@ ¡@
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ¡@¡@ $121,861,253
$71,581,793

¡@


INCOME STATEMENTS (Unaudited)

KGI SECURITIES CO., LTD.
For the Three-Month Periods Ended March 31, 2010 and 2009
(Expressed In New Taiwan Thousand Dollars except for Earnings Per Share )

2010

2009

REVENUES
¡@Brokerage handling fee revenue
$1,272,378
$381,028
¡@Revenue from underwriting business
63,090
6,507
¡@Gains on disposal of trading securities-dealing-net
110,337
-
   Gains on disposal of trading securities-underwriting-net

34,416

-

   Gains on disposal of trading securities-hedging-net

-

43,803

¡@Revenue from providing agency service for stock affairs
1,819
1,347
¡@Interest income
562,312
295,376
    Dividend income 5 -
¡@Gains on valuation of trading securities-dealing-net
-
287,680
   Gains on valuation of trading securities-underwriting-net - 889
    Gains on valuation of trading securities-hedging-net - 45,449
¡@Gains on warrants issued
247,107
-
¡@Futures consulting fees
63,426
31,211
¡@Gains on derivative financial product-futures
31,141

2,493

   Gains on derivative financial product-GTSM 159,062 -
¡@Other operating income
86,068
29,721
¡@Non-operating revenues and profits
286,294
117,882
¡@    Total Revenues
2,917,455
1,243,386
¡@ ¡@
COSTS AND EXPENSES
¡@Brokerage handling fee expense
78,507
22,308
¡@Dealing handling fee expense
5,942
5,017
¡@Refinancing handling fee expense
219
14
¡@Losses on disposal of trading securities-dealing-net
-
4,331
    Losses on disposal of trading securities-hedging-net - 459
   Losses on disposal of trading securities-hedging-net 76,772 -
¡@Interest expenses
40,462
58,267
    Losses on valuation of trading securities-dealing-net 287,666 -
    Losses on valuation of trading securities-underwriting-net 52,617 -
    Losses on valuation of trading securities-hedging-net

78,711

-

   Losses on valuation of liability for purchase of government bonds

362

-

¡@Losses on covering of borrowed securities and bonds
    with resale agreements
6,622
31,704
   Losses on valuation of borrowed securities and bonds
    with resale agreements
8,403 9,088
¡@Warrants issuing expenses
10,293
5,224
   Losses on warrants issued - 42,643
¡@Settlement and clearing service expenditure
1,593
2,831
    Loss on derivative financial product-GTSM - 85,475
¡@Operating expenses
1,521,803
666,194
¡@Other operating costs
251
1,245
¡@Non-operating expenses and losses
97,920
12,024
¡@    Total Costs and Expenses
2,268,143
946,824
¡@ ¡@
INCOME BEFORE INCOME TAX EXPENSES FROM CONTINUING UNITS
649,312
296,562
INCOME TAX EXPENSES
(122,535)
(32,781)
NET INCOME
$526,777
$263,781
¡@ ¡@
EARNINGS PER SHARE
¡@
¡@Income before income tax expenses from continuing operations
$0.21
$0.12
¡@Income tax expenses
(0.04)
(0.01)
¡@    Net income
$0.17
$0.11





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