PJ Asset Management Urges Shareholders of Taishin FHC (2887 TT) and SinoPac FHC (2890 TT) to Support its Proposal on Jun 14 AGM

TAIPEI,May 29,2019 -- Following the press release by PJ Asset Management (PJAM) published on April 29,PJAM would like to remind shareholders of Taishin Financial Holdings (Taishin FHC) and SinoPac Financial Holdings (Sinopac FHC) that both firms have posted their 2019 Shareholders' Annual Meeting Handbook on their respective websites. PJAM has submitted a proposal to both Taishin FHC and Sinopac FHC,to amend the Articles of Incorporation to increase the size of the board to a minimum of 9 directors and a maximum of 15,applicable at the next board re-election.

Details of PJAM's proposals can be found in the below-mentioned links.

Taishin FHC

2019 Shareholders' Annual General Meeting Manual

https://www.taishinholdings.com.tw/upload/F38060606/IR_20190524085803_file1.pdf

PJAM shareholder proposal is listed in Discussions: Agenda item #3 Amendment of the "Articles of Incorporation" B

Sinopac FHC

2019 Annual General Shareholders' Meeting Handbook

http://www.sinopac.com/upload/event/shareholder/2019_ShareholdersHandbook.pdf

PJAM shareholder proposal is listed in C. Discussion Items (Voting Items) Proposal 2. The shareholder's proposal in accordance with Article 172-1 of the Company Act:Amendment to the Articles of Incorporation

PJAM believes that the appropriate board size can provide an opportunity to improve board efficiency and the quality of oversight. The proposal of 9-15 director seats is consistent with the average number of directors on the boards of both international financial institutions as well as domestic financial holding companies in Taiwan (see table below). Unlike other industries in Taiwan,banks and financial holding companies are highly regulated with certified deposit taking privilege from the public and exclusive rights in dealing with the public's assets and liabilities.

PJAM have submittedtheir proposals in consideration of the future strategy of both financial holding companies,their market capitalization and complicated business scope,as well with the goal of strengthening corporate governance. PJAM believes that an effective board should be of a sufficient size to include diversified professionals that can provide better overall oversight and encourage more engaged discussions.

PJAM is committed to upholdtheir stewardship commitments and continue to urgethe investee companies to enhance their corporate governance standards. PJAM strongly urges fellow shareholders of both Taishin FHC and Sinopac FHC to support PJAM's shareholder proposals to encourage refreshment and a more diversified board.

Range of the numbers of directors specified by the Articles of Incorporation of

Domestic Financial Holding Companies

Stock Code

Name

Minimum # of

directors

Maximum # of

directors

Current # of

Directors on the

Board

2880

Hua Nan

15

21

19

2881

Fubon

9

15

15

2882

Cathay

9

21

12

2883

China

Development

9

15

9

2884

E.SUN

13

13

13

2885

Yuanta

9

15

13

2886

Mega

15

21

14

2887

Taishin

7

9

7

2888

Shin Kong

15

21

15

2889

Waterland

13

13

13

2890

SinoPac

7

11

9

2891

CTBC

7

11

7

2892

First

15

21

15

5820

Jih Sun

11

11

11

5880

Taiwan

Cooperative

15

21

15

Average

11.0

15.6

12.3

Median

12.0

15.0

13.0

Source: latest annual report of each financial holding company

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