Shin Kong Financial : 2023 Annual Report

2023

ANNUAL REPORT

CONTENTS

		P.
01
	Operating Highlights
P.			P.
02	08
Words from the Chairman		SKFH Overview
P.			P.
13	14
Honors and Achievements		Business Plan
P.			P.
23	24

Milestones

Financial Highlights

Operating

Highlights

Dow Jones

Sustainability Index

Second Globally

SKFH was selected in the DJSI World Index for 3 consecutive years, ranked second globally in the Insurance Industry Group and first in Asia

6.21mn NT$4.95tn

Customers		Assets
SKFH Customers: 6.21mn	SKFH's assets reached NT$4.95tn,
		ranking 5th in Taiwan

3mn	#1	AAA
#1
Digital Customers	Best Product	AAA Accessible Website Mark
SKFH Digital Customers : over 3mn	SKL won first place in the 20th	MasterLink Securities became the
	National Brand Yushan Award for	first securities firm to earn the
	"Best Product Award"	highest level "AAA Accessible Website Mark"

Gold Winner	#1
	London Design Awards		Financial Fast Identity Online
	SKB's OMNI-U app was the			SKL was first in the industry to
	2023 Gold Winner in the	adopt the Financial Fast Identity
	London Design Awards		Online (FIDO) mechanism

#2

Government Bonds Secondary Market

MasterLink Securities ranked 2nd in

trading volume of government bonds in the secondary market

Silver

#4

9 Awards

Winner

NY Product Design Awards

Total Premium

Fund Awards

SKB's OMNI-U won the

SKL's total premium reached

SKIT won 9 top awards in

2023 Silver Winner in the

NT$167.5bn, ranking 4th in industry

TFF-Bloomberg Best Fund Awards and

NY Product Design Awards

Refinitiv Lipper Fund Awards

Words from the Chairman

Impact of External Competition,

Regulation, and Overall Business

Environment

In 2023, the ongoing Russia-Ukraine and Israeli-Pal- estinian conflicts continued to elevate geopolitical con- cerns, fueling global inflation and increasing volatility in financial markets. Many nations tightened monetary policy to gradually rein in inflation, but softening trade growth, declining consumption confidence, and other issues persisted. In January 2024, the World Bank forecasted that the global economy would grow by 2.6% in 2023, slowing from the previous year's 3% gain. In Taiwan, domestic demand surged in 2023 as the country lifted COVID-19 restrictions. Economic growth momentum nevertheless slowed as weak global end-demand and industry chain inventory destocking, and conservative corporate investment posed headwinds for exports and investment. In February 2024, the Directorate General of Budget, Accounting and Statistics announced that Taiwan's economy grew by 1.31% in 2023, lower than previous year's 2.59%.

Looking ahead in 2024, global economic is projected to grow moderately. Central banks around the world are expected to follow divergent monetary tracks and markets are pricing in a start to US interest rate cuts. All eyes will be on whether the economy will land softly. In China, the recovery of domestic demand remains unclear as that the country struggles with structural problems in the real estate sector, youth unemploy- ment, and other challenges to an economic turnaround. Overall, the outlook for financial markets will remain uncertain. Unresolved geopolitical risks may lead to supply chain disruptions and international trade sanctions that in turn could potentially impact prices and GDP, more so than other policy or economic risks. In

addition, the increasing frequency of extreme weather events has put the global spotlight on climate change and prompted numerous countries to plan paths to net zero emissions. Both policy and industries will feel the impact of the continuous drive to enhance sustainable competitiveness. In Taiwan, the financial industry faces a changing business environment and competitive landscape in conjunction with the government's promotion of the Green Finance Action Plan 3.0, digital and green transformation, as well as harmonizing operations with IFRS17 and ICS2.0. Corporate governance, information security, and protection of consumer rights are other issues that demand the industry's continued attention and response.

2023 Business Results

In 2023, the global economy continued to struggle in the post-pandemic era as inflation and exchange rate volatility challenged growth and contributed to profit volatility in the financial sector. Shin Kong Financial Holding (SKFH) posted a consolidated after-tax loss of NT$7.324 billion, or NT$-0.48 per share, short of the company's target. This owed mainly to a loss at Shin Kong Life Insurance (SKL) resulting from sharply higher foreign exchange hedging cost as the Taiwan-US interest spread widened. Other SKFH subsidiaries performed steadily, with banking and securities subsidiaries posting second highest profits ever. SKFH ended the year with a consolidated shareholders' equity of NT$246.08 billion (NT$15.56 per share), 16.0% higher year-on-year (YoY). Consolidated total assets rose 2.1% YoY to

Our light and heart are always with you

A 26.8% surge in Taiwan's stock market index powered MasterLink Securities to its second-highest consolidated after-tax profit of NT$2.499 billion, soaring 589.8% from the year before. Growth momentum came mainly from brokerage services, with proprietary and bond operations also performing well. The company captured 3.43% of the brokerage spot market share, climbing one place up to the sixth position in the indus- try. In the margin loan sector, it ranked seventh with a 5.11% market share. The company also actively developed multiple profit sources. It commanded a 3.43% sub-brokerage market share, boosting its ranking from the 12th to the sixth place. In the wealth management sector, the company increased its average trust asset scale to NT$14.128 billion, up 14.5% YoY.

Other subsidiaries also continued to grow steadily: Shin Kong Investment Trust (SKIT) grew its average asset management scale and net income by 13.1% and 60.4% YoY, respectively. Shin Kong Property Insurance Agency increased premium income and net income by 3.9% and 2.3% YoY, respectively. Shin Kong Venture Capital outperformed on both financial income and investment performance, boosting net income by 51.1% YoY.

SKFH's strategy of "Driving Transformation through Digital Development" continued to reap results as the group grew its online customer base past three million (up 10% YoY). The adoption rate for key digital products and services rose to 80% (up 8% YoY), while process automation accounted for 93% of transactions (up 9% YoY). SKL processed 96.7% of all policy applications dig- itally, while SKB and MasterLink Securities digitally processed 89.4% and 83.3% of their transactions, respec- tively. Digital operations at SKFH and its subsidiaries earned more than 20 domestic and international awards, including: the sole financial institution in Asia to win the Globe Trotter Award of the Global Financial Innovation Network (GFIN) Greenwashing TechSprint,

with guidance from the Financial Supervisory Commis- sion. The group's AI legal compliance platform, which was established to strengthen internal supervision and management efficiency, earned the Special Award for Digital Innovation in the IDC 2023 Future Enterprise Awards. SKFH and its subsidiaries made other considerable gains in digital development: (1) Establishment of a joint risk defense mechanism assisted by data sharing to track group-wide risk in real-time; (2) Integration of ecosystem partner resources to further tap synergies in technology research and development and establishment of a group digital talent development system, nurturing over 120 SPARK Hero digital seeds for SKFH and its subsidiaries; (3) First-time participation in the Administration for Digital Industries, Ministry of Digital Affairs' Digital Youth T Ambassador Program, sharing new trends and R&D experience through the "Shin Kong Digital Day: Digital Recycling, Ushering in a New AI Game" annual digital meeting; (4) Jointly hosting with subsidiaries the "Digital Star" annual innovation competition to showcase best practices in digital innovation at Shin Kong and continuously empower employees to accelerate transformation.

SKFH deployed integrated marketing mechanisms to optimize resource synergies across its subsidiaries, promoting focal cross-selling operations to deliver diversi- fied and convenient financial services meeting customer needs. In a changing global economic environment, SKFH increased benefits from cross-selling and resource integration to NT$3.2 billion in 2023, up 20% YoY, taking full advantage of co-marketing synergies. Sales of insurance policies with a premium payment period of more than six years by SKB and sales of investment-linked trust discretionary policies by SKL and group sales of investment trust funds all grew at a double-digit pace. The share of premium from new life insurance policies sold through SKB rose from 35% to 58% of the total for all bancassurance channels. To continue cultivating customer value and focusing on cus-

tomer segmentation, SKFH utilized big data meta analysis to understand the potential financial needs and preferences of value-focused customers for more effi- cient customer segmentation.

SKFH continued to advocate "low carbon, innova- tion, and the common good" as its three major environ- mental, social and governance (ESG) sustainable values. The company strove to align with international corporate sustainable governance and continuously improve its sustainability performance. SKFH was selected in the DJSI World Index for 3 consecutive years, ranked second globally in the Insurance Industry Group and first in Asia. The company was also initiated as a constituent stock in the DJSI Emerging Markets Index. In addition, the international sustainability rating agency S&P Global recognized SKFH among the top 5% of insurance companies worldwide for sustainability performance in its Sustainability Yearbook 2024. These honors attest to SKFH's emergence as a leader in international sustainable development.

SKFH and its subsidiary proactively adopted the United Nations Principles for Responsible Investment (PRI), Principles for Sustainable Insurance (PSI), Principles for Responsible Banking (PRB), and Equator Princi- ples. The company promoted responsible investment, financing, and lending, as well as ESG financial prod- ucts. Amid rising global attention to climate issues, SKFH signed a carbon reduction commitment and aligned carbon reduction targets with the Science Based Targets initiative (SBTi). In February 2024, the company officially passed the initiative's carbon reduction target review, affirming its determination to fight climate change. Furthermore, SKFH and its main subsidiaries published Task Force on Climate-Related Financial Disclosures (TCFD) reports aiming to effectively manage risks and seize opportunities related to climate change.

Apart from the climate issue, SKFH is deeply engaged in social and human rights issues. The company adheres to international human rights conventions and strictly abides Taiwan's labor laws. It is also committed to creating a diverse, equal, and inclusive work- place, as well as developing volunteerism, investing in inclusive finance, and promoting health and aging-friendly initiatives. As a result of these efforts, SKFH was selected for the Bloomberg Gender-Equality Index (GEI) and won numerous awards, including the Age-Friendly Leadership Award and Social Inclusion Leadership Award in the Taiwan Corporate Sustainability Awards (TCSA).

SKFH and its subsidiaries were also recognized for their business achievements: SKFH won top awards in the Taiwan Top 100 Sustainable Enterprise Award and Global Corporate Sustainability Awards. SKL won the international Asia Responsible Entrepreneurship Awards and seven awards in the National Brand Yushan Award, as well as brought home seven top awards and recognition as an "Outstanding Financial Institution" for fair customer treatment in the Taiwan Corporate Sustainability Awards. SKB was re-selected as one of the "Best Companies to Work for in Asia." The bank also won 4 grand awards, including two awards in the product category of the National Brand Yushan Award, Taiwan Corporate Sustainability Awards and Taiwan Sustainability Action Awards. MasterLink Securities won Business Today's "Best Wealth Appreciation Award," Taiwan Sustainability Action Awards, and Taiwan Sustainable Investment Award. MasterLink Securities Investment Advisory earned a third-consecutive top award for Best Research Report-Accurate Earnings Forecast Award in the Golden Glory Awards. SKIT earned six grand awards in the TFF-Bloomberg Best Fund Awards and three top awards in the Refinitiv Lipper Fund Awards Taiwan. These honors internationally recognize the outstanding performance of SKFH and its subsidiaries.

Our light and heart are always with you		2023 ANNUAL REPORT Words from the Chairman	04 / 05

Overview of 2024 Business Plan

SKFH's strategic focus in 2024 is rooted in "Driving Transformation, Ushering in a New Era Together." The company will adhere to prudent business principles, improve group-wide operating performance, strengthen capital utilization efficiency and risk management mechanisms, and pursue a management policy based on the following business plan:

• . Enhancing High-Value and New Profit Sourc- es to Increase Earnings and Strengthen Capital Adequacy
• 1. SKFH's core business is to effectively manage subsidiaries and guide their strategic develop- ment to improve operating performance, maxi- mize capital efficiency, and thereby increase overall profitability and strengthen capital ade- quacy. SKFH will also help subsidiaries to enhance high-value and new business profit sources, expand the asset scale of its banking and securities subsidiaries, and supervise SKL's harmonization with the IFRS17 and ICS2.0 inter- national standards to expand its business scope and depth and optimize subsidiaries' asset struc- tures.
  2. SKL will continue to emphasize value-focused products, promote the sales of protection prod- ucts and foreign currency policies, build policy value, and reduce cost of liabilities. It will also focus on selling investment-linked policies, strengthening controls on risk and hedging cost, optimizing portfolio allocation, increasing quali- fied capital, and reducing risk-based capital to strengthen its RBC ratio and further align with international standards.
  3. SKB will steadily grow its main core businesses while improving capital efficiency. It also aims to increase lending scale to stabilize interest income, as well as optimize its deposit structure to reduce funding costs and maintain good liquidity. The bank will strengthen non-interest income businesses and expand revenue sources, including fee income from wealth management business and income from financial market investments.
  4. MasterLink Securities will strengthen customer service capacity and create a warm service brand; expand and diversify revenue sources and increase the level of service revenue; optimize

digital promotion models and build customer brand recognition; adjust portfolio strategy to generate stable returns; enhance benefits of investment enterprises and expand profits in advantageous areas; and advance fair customer treatment and explore business opportunities for sustainable development.

• . Deepening Synergies from Joint Marketing with Strategic Products
• 1. Continue to develop value-focused products to build insurance momentum
     SKL provides coverage tailored to the life insur- ance needs of its customers at different stages of life. The company is focusing on inheritance poli- cies offering high levels of inheritance and asset allocation protection. It is also using big data analysis to identify potential customers and pro- vide comprehensive coverage for insurance needs. In addition, the company is driving sales momentum for high-value policies to accelerate the growth of SKFH's value-focused products.
  2. Deepening banking and securities partner- ships to enhance co-marketing benefits
     The "OU Hao Fu Tou" service provides a conve- nient platform integrating the customer applica- tion process for online banking and securities account opening, while enabling cross-company customer management to deepen product pene- tration and improve operating results. The ser- vice not only meets personal financial needs, but also integrates banking and securities resources in corporate finance channels to further under- stand the overall financial needs of corporate clients, plan customized solutions, and enhance co-marketing benefits in corporate banking across the group.
  3. Continuously improving product penetration to increase customer management benefits SKFH is committed to providing comprehensive cross-selling products and services and optimiz- ing processes with a data-driven approach to enhance the convenience and quality of the cus- tomer experience. The company also provides a full range of financial products to meet demand throughout the customer life cycle, enhance cus- tomer product penetration and transaction stickiness across the group, develop channel value, and build cross-selling synergy.

3 . Increasing Digital Revenue and Enhancing Digital Performance

(1) Customer-centric digital transformation strategy SKFH will retain the core concept of customer -centricity and integrate digital channel resources across the group. The company will further develop collaboration across online and offline channels through an OMO (Online Merge Offline / Offline Merge Online) strategy to strengthen cross-company customer segmentation and diversion synergies, establish innovative business models, and become customers' most trusted digital finance brand.

(2) Accelerating business innovation models with digital technology

In response to market trends and government policy, SKFH is deploying an AI development strategy and refining management mechanisms to further build synergies from digital technology advancement across the group. The company is expanding the resources of technology ecosystem partners and implementing these capabilities in real-world appli- cations. This includes accelerating the integration of AI in operational processes, enhancing the benefits of data governance and utiliza- tion, and continuing to build the group's strengths in e-banking innovation.

(3) Integrating Ecosystem Resources to Transform Digital Talent

SKFH is bringing together resources across industry, government and academic ecosystems to accelerate staff transformation and continue enhancing its digital talent development system. Through the Spark Hero project, internships, and the Digital Youth T Ambassador Program, the company is building employ- ees' technology skill, AI mindset, and digital literacy to establish overall digital resilience at Shin Kong.

4 . Implementing Corporate Governance and Aligning with International Sustainability Trends

(1) SKFH will continue to improve its corporate governance structure and raise its ranking by this metric. In addition to strengthening management in the areas of compliance and internal controls and audits, the company will focus on internalizing and implementing the principles and spirit of fair customer

treatment through policy formulation and execution to increase customer trust in the Shin Kong brand and support the compa- ny's sound operations.

1. Sustainable corporate development is a key ele- ment in modern enterprise management. In 2024, SKFH aims to retain its place among the constituent stocks of the Dow Jones Sustainabili- ty World Index (DJSI World). The company will actively improve ESG performance, as well as align with the Financial Supervisory Commis- sion's "Green Finance Action Plan 3.0," "Sustain- able Development Action Plan for Publicly Listed Companies," and other policies. It will also con- tinue to implement carbon inventory and climate risk management, develop ESG investment and financing, strengthen information disclosure and training of sustainability talent, and incorporate DEI and human rights protection to enhance the company's sustainable competitiveness and bring value to the social environment.

Future Development Strategy

Looking to the future, SKFH will continue to pursue stable profits, foster business synergies, and develop innovative products. It will also actively promote digital finance and expand its sustainable impact to implement the concept of sustainable operations. SKFH's medium to long-term development strategy will remain focused on progress in the following six directions. At the same time, it will develop specific operational plans to build up a foundation for sustainable operations:

Enhance high-value and new business profit sources Expand business scale and optimize subsidiary asset structure

Increase profits and strengthen capital adequacy

Deepen synergies from joint marketing Increase digital revenue and enhance digital performance

Implement corporate governance and promote sustainable operation

Chairman

Shin Kong Financial Holding Co., Ltd.

Our light and heart are always with you		2023 ANNUAL REPORT Words from the Chairman	06 / 07

SKFH Overview

Business Locations	The Total Number of Employees
	Information as of 2023/12/31

Corporate Overview

Company	Number of branches
Shin Kong Financial Holding	1
		372

Company	Number of employees
Shin Kong Financial Holding	113
Shin Kong Life Insurance		10,612

Shin Kong Financial Holding (SKFH) was established on February 19, 2002. It is headquartered at the Shin Kong Life Tower, a financial landmark building in Taipei. SKFH is committed to sustainable operations, corporate social responsibility, and corporate gover- nance. The company has extensive operations serving over six million customers through its subsidiaries Shin Kong Life Insurance, Taiwan Shin Kong Commercial Bank, MasterLink Securities, Shin Kong Investment Trust, Shin Kong Property Insurance Agency, and Shin

increase overseas earnings, and expand operations related to OIU, OBU and OSU. The company also actively draws on group resources to develop in the ASEAN market, as well as strengthens local relationship management and bilateral economic and trade cooperation to seize business opportunities.

For more than six decades, the Shin Kong group has been cultivating the Taiwan market, accumulating experience, building trust, and winning customer affir-

Shin Kong Life Insurance	104
Shin Kong Bank
MasterLink Securities Corporation	43
Shin Kong Investment Trust	3
Shin Kong Property Insurance Agency	1
Shin Kong Venture Capital	1

Shin Kong Bank	3,883
MasterLink Securities Corporation	1,708
Shin Kong Investment Trust	99
Shin Kong Property Insurance Agency	13
Shin Kong Venture Capital	4
Total	16,432

Kong Venture Capital International.

SKFH also supports its development in overseas markets through ongoing exchanges with financial groups in China, Japan, and Southeast Asia to collect market information, follow international trends,

mation. In the future, it will continue to embrace a business approach rooted in integrity, innovation, ser- vice, and giving back to society. With a core development strategy based on the three main engines of insurance, banking, and securities, SKFH is committed to growing as an outstanding financial institution for customers, shareholders, and employees alike.

Credit Ratings

The list below shows credit ratings of SKFH and its major subsidiaries

Shin Kong Financial Holding	National Long-term	Information as of 2024/05/29
Agency	Global Long-term	Global Short-term	National Short-term	Outlook
Taiwan Ratings	--	--	twA	twA-1	Negative
Shin Kong Life Insurance	National Long-term	National Short-term	Outlook
Agency	Global Long-term	Global Short-term
Taiwan Ratings	--	--	twA+	--	Negative
Standard & Poor's	BBB-	--	--	--	Negative
Agency			National Long-term		Outlook
Fitch (1)			A(twn)		Stable
(1) The release date for Fitch's credit rating is August 15, 2023.
Shin Kong Bank	Global Short-term	National Long-term	National Short-term	Outlook
Agency	Global Long-term
Taiwan Ratings	--	--	twA+	twA-1	Negative
Standard & Poor's	BBB-	A-3	--	--	Negative
MasterLink Securities Corporation	National Short-term	Outlook
Agency	Global Long-term	Global Short-term	National Long-term
Taiwan Ratings	--	--	twA	twA-1	Negative

Our light and heart are always with you

2023 ANNUAL REPORT SKFH Overview 08 / 09

10 / 11

SKFH Highlights		2023	Unit: NT$ Thousands
Year		2022
Capital	157,846,290	157,846,182
Consolidated total assets	4,953,494,191	4,850,699,248
Consolidated shareholders' equity	246,080,306	212,129,702
Consolidated net income	( 7,324,305 )	2,168,688
EPS (NT$) (1)	(	0.48 )	0.10
Return on equity (%)	(	3.20% )	0.91%
Return on assets (%)	( 0.15% )	0.05%

1. :The after-tax earnings per share (EPS) for 2023 and 2022 would be NT$-1.21 and NT$1.41, respectively, if the foreign exchange volatility reserve mechanism were not adopted.

2023 Asset Mix by Subsidiary (Subsidiary's Share in Percentage)			Unit: NT$ Thousands
Subsidiary			Total Assets	Share of Total (%)
Shin Kong Life Insurance		3,587,524,301			71.871%
Shin Kong Bank		1,265,754,607			25.357%
MasterLink Securities		135,139,774			2.707%
Shin Kong Investment Trust	919,946			0.018%
Shin Kong Property Insurance Agency	190,954			0.004%
Shin Kong Venture Capital		2,157,059			0.043%
Total			4,991,686,641		100.000%
						Unit: NT$ Thousands
	Year	Total Assets	Shareholders' Equity	Operating Revenue		Net Income
Shin Kong	2023	3,587,524,301	158,037,038	259,429,519		( 17,192,701 )
Life Insurance	2022	3,565,105,708	139,023,097	289,809,583		( 4,872,114 )
Shin Kong	2023	1,265,754,607	74,917,454	19,896,804	(1)	6,791,448
Bank	2022	1,211,903,059	63,607,968	18,860,839	(1)	6,861,657
MasterLink	2023	135,139,774	29,884,248	8,216,217	(2)	2,498,923
Securities	2022	94,670,943	26,002,793	4,547,232	(2)	362,274
Shin Kong	2023	919,946	752,878	363,699		69,278
Investment
2022	888,908	716,517	324,456		43,188
Trust
Shin Kong	2023	190,954	111,611	478,384		79,907
Property
Insurance	2022	185,570	109,704	448,894		78,140
Agency
Shin Kong	2023	2,157,059	1,849,678	132,761		111,692
Venture
2022	1,919,029	1,656,245	112,692		73,933
Capital

(1)：Net operating income is disclosed since there is no operating revenue category under the Regulations Governing the Preparation of Financial Reports by Public Banks.

(2)：Income is disclosed since there is no operating revenue category under the Regulations Governing the Preparation of Financial Reports by Securities Firms.

(3)：Stand-alone figures.

2023 ANNUAL REPORT SKFH Overview

Organization

Chart

Information as of:2023/12/31

Honors and

Achievements

Shin Kong Life

Real Estate

Service Company

72.01%

Lion Investment	Shin Kong Life	Shin Kong
Marketing
(Samoa) Co., Ltd.
and subsidiaries	Insurance Co.,	Consultant Co.,
(3)	Ltd.
100%	Ltd.	100%
Shin Kong		Taiwan Shin Kong
Venture Capital
International	100%	Commercial Bank
Co., Ltd.		Co., Ltd.

100%	Shin Kong	100%
Financial Holding
100%	Co., Ltd.	100%
Shin Kong	100%	MasterLink
Property Insurance		Securities
Agency Co., Ltd.		Corporation
(2)		(1)
	Shin Kong	100%
	Affiliated Companies
	Investment
	Trust Co., Ltd.	Subsidiaries and
	of MasterLink
		Securities
		Corporation
		(1)

1. See the MasterLink Securities organizational chart for the MasterLink Securities' direct and indirect shareholding ratios in subsidiaries and sub-subsidiaries.
2. According to the board resolution passed on October 8, 2013, Shin Kong Property Insurance Agency Co., Ltd. (SKPIA) changed its Chinese name and retained its English name.
3. Shin Kong Leasing Corp. (Suzhou) is a wholly owned subsidiary of Lion Investment (Samoa) Co., Ltd.

Our light and heart are always with you

Shin Kong Financial Holding

SKFH was selected for the third time as a constituent stock of the DJSI World Index, ranking second globally in Insurance Industry Group and first in Asia. The company was also included in the DJSI Emerging Markets Index for the first time SKFH was selected as a 2023 Bloomberg Gender-Equality Index constituent SKFH earned the "Taiwan Top 100 Sustainable Enterprise Award" and "Sustainability Report-Platinum Award" in the 2023 Taiwan Corporate Sustainability Awards (TCSA)

SKFH won the "Sustainability Report-Bronze Award" and "Best Practice Award" in the 2023 Global Corporate Sustainability Awards (GCSA)

SKFH earned the Green Label from the Taiwan Alliance for Net Zero Emission SKFH was selected as one of the "100 Most Sustainable Companies" in the CommonWealth Sustainable Citizen Award and "Talent Sustainability Top 50" in the CommonWealth Talent Sustainability Award

SKFH won the Special Award for Digital Innovation in the 2023 IDC Future Enterprise Awards

SKFH won the 2023 "The Globe Trotter Award" of the Global Financial Innovation Network (GFiN)

SKFH won the 2023 "Best in Future of Digital Innovation in Taiwan Award" from World Economic Magazine

SKFH ranked among the top 20% in the Ninth Corporate Governance Evaluation by the Taiwan Stock Exchange

Shin Kong Life Insurance

SKL won the 2023 "Social Empowerment Award" in the 2023 Asia Responsible Entrepreneurship Awards

SKL won seven top awards, including "Most Popular Brand Award," and "Best Product Awards," as well as "Best Product" National First Prize in the 20th National Brand Yushan Award

SKL won the "SDG 3 Health and Well-Being - Gold Award" and "SDG 8 Employment and Economic Growth - Silver Award" in the 2023 Taiwan Sustainability Action Awards (TSAA)

SKL won the "Taiwan Top 100 Sustainable Enterprise Award," "Sustain- ability Reporting Award - Gold Award in the Finance and Insurance Industry," "Climate Leadership Award," "Social Inclusion Leadership Award," "Workplace Well-Being Leadership Award," "Age-Friendly Leadership Award," and "Talent Development Leadership Award" in the 2023 Taiwan Corporate Sustainability Awards (TCSA)

SKL won the "Special Award" in the Corporate Sustainability category of the Seventh PwC Sustainability Impact Awards

SKL was recognized for "Best Customer Service," "Best Integrated Market- ing," "Best Customer Service Digital Smart System Application," "Best Customer Service Team," and "Best Customer Service Training Star" in the 2023 Customer Service Excellence Awards (CSEA)

SKL won the "Fair Hospitality Principle Assessment Excellence Award," "Third Place ‒ Insurance Group" for micro-insurance, "Disability Care Award," "Business Excellence Award," and "Outstanding Performance Award in the Aging Insurance Competition" in the 2023 Insurance Competition SKL won four top awards in the 2023 International Innovation Awards, including one each in the "Organization and Culture" and "Product" groups and two in the "Service and Solution" group

SKL won Japan's 2023 Good Design Award

SKL won three top awards in the National Insurance Three Awards for Hero of the Decade

SKL won the "Public Welfare Excellence Award," "Personnel Training Excellence Award," and "IT Application Excellence Award" in the 10th Taiwan Insurance Excellence Award

SKL won the 2023 "Trusted Brand Award" in the 25th Reader's Digest Award SKL won the "Big Hearted Boss Award" in the Taipei City Department of Labor's Worker Safety Awards

SKL won the "Corporate Social Responsibility Award" in the insurance category of the 2023 Want Want China Times Financial Services Evaluation SKL won the "Excellence Award" and "Gold Award" for "Best Planning and Design" in the 2023 FIABCI-Taiwan Real Estate Excellence Award

SKL won the "Best Social Responsibility," "Best Product Creativity Award," "Best Insurance Professionalism Award," "Best Contribution in Insurance Education Award," and "Most Popular Insurance Company - First Place" in the 25th Insurance Faith, Hope, and Love Award

SKL won the "Best Insurance FinTech Innovation Application Award" in the 2023 Wealth Magazine Financial Awards

SKL won the "Digital Service Award" in the Third Digital Financial Awards by Commercial Times

SKL earned the "ISO 14067 Carbon Footprint Verification for Customer Service Counter Service Products"

SKL won the "Excellence Awards" for "Claims Service," "Digital Finance," and "Public Service" in Excellence Magazine's 2023 Taiwan Insurance Excellence Award

Shin Kong Bank

SKB won the 2023 "Best Wealth Manager Award" from The Asset

SKB won the "Best Customer Recommendation Award" and "Best Print Marketing Award" in Wealth Magazine's 2023 Wealth Management Award SKB won the "Best Social Inclusion Award" and "Best Customer Recommendation Award" in Excellence Magazine's 2023 Outstanding Bank Evaluation SKB won the "Age-Friendly Award" in the banking category of the 2023 Want Want China Times Financial Service Evaluation

SKB won top awards from Taiwan Clearing House, including the "Award of Excellence for DDA Authorization Business," "eACH Collection and Payment Service Promotion Award," "eDDAID Account Verification Business Promotion Award," and Enhanced Financial Collection Service (eFCS) awards for "Promotion of Specific Write-offs Processing" and "Agent Clearing Services"

SKB won the "SDG 4 Financial Education Diversity - Silver Award" and "SDG 8 Leading Green Finance Brand - Silver award" in the 2023 Taiwan Sustainability Action Awards (TSAA)

SKB won the "Silver Award for Sustainability Reporting - Insurance and Banking Industry" and the "Best Sustainability Practice in a Specific Category Award for Age-Friendly Leadership" in the 2023 Taiwan Corporate Sustainability Awards (TCSA)

SKB was re-selected by HR Asia as one of the "Best Companies to Work for in Asia" in 2023

SKB won the "Best AI Technology Implementation Award" in the 2023 Financial Technology Awards from the Asian Banker

SKB won two "Best Product Awards" in the 20th National Brand Yushan Award SKB won the "Special Award" in the Corporate Sustainability category of the Seventh PwC Sustainability Impact Awards

SKB won the "Best Online Customer Service Team Award" in the 2023 Customer Service Excellence Awards (CSEA)

SKB won the "Special Award for Social Co-Prosperity" and "Participation Award for Procurement" in the Ministry of Economic Affairs' 2023 Buying Power Award

SKB's OMNI-U won the 2023 Silver Winner in the NY Product Design Awards SKB's OMNI-U app won the 2023 Gold Winner in the London Design Awards

SKB's new website won the Asia Design Prize

MasterLink Securities

MasterLink Securities won the "Best Wealth Appreciation Award-First Place" in Business Today's 2023 Wealth Management of Banks and Securities

MasterLink Securities won the "SDG4 Financial Education-Gold Award" in the 2023 Taiwan Sustainbility Action Awards (TSAA)

MasterLink Securities won the "Best Social Empowerment Award,""Best Customer Recommendation Award," and "Best Video Marketing Award" in securities industry group in Wealth Magazine's 2023 Wealth Management Award

MasterLink Securities won the "Digital Service Award-Gold Award" in Commercial Time's 2023 Digital Financial Award

MasterLink Securities won the "Best Securities Firm for Wealth Management Trust Award" in the Trust Award

MasterLink Securities was the Top 2 Brokers of the Year for the 2023 OTC Warrants Awards

MasterLink Securities and MasterLink Investment Advisory won the "Case Impact Award" in the 2023 Taiwan Sustainable Investment Awards(TWSIA) MasterLink Securities won the "Best Public Service Award" and "Best Smart Financial Management Award" in Excellence Magazine's 2023 Excellence Securities Rating

MasterLink Securities won fifth place in Taiwan Stock Exchange's 2023 Warrants Competition

Shin Kong Investment Trust

SKIT won six awards in the 26th TFF-Bloomberg Best Fund Awards SKIT won three awards in the 2023 Refinitiv Lipper Fund Awards

2023 ANNUAL REPORT Honors and Achievements 12 / 13

Business Plan

Shin Kong

Life Insurance

2024 Business Plan

Looking into 2024, SKL will continue to focus on strategic products to grow contractual service margin (CSM) and facilitate alignment with the IFRS 17 and ICS. In addition, the company will promote organizational transformation, leverage digital marketing tools, and establish a digital culture to reach target customers and

Organizational Transformation to Enhance Channel Productivity

In 2024, SKL is rolling out a marketing-based business system to expand the organizational development of business channels. Organizational promotion will be based on a strategic policy of "advancing organizational reshaping and jointly creating efficient teams" and promotion strategies in the following four areas:

1.Systems: Reallocating resources for high productivity

2.and returns.

Management: Enhancing business functions and

2023 Operations Overview

In 2023, Shin Kong Life Insurance (SKL) remained dedicated to a prudent business strategy aimed at building product value. The company's consolidated total assets amounted to NT$3.6 trillion and consolidated shareholders' equity rose 13.7% year-over-year (YoY) to NT$158.47 billion. SKL earned NT$38.86 billion in first year premium (FYP) and NT$167.51 billion in total pre- mium, securing the company a market share of 7.7% and fourth-place industry ranking.

Developing Key Products and Building Policy Value SKL is committed to deepening roots in Taiwan's insurance market. The company continues to promote value-focused products and foreign currency policies, accumulate contractual service margin (CSM), and strengthen alignment with International Financial Reporting Standard (IFRS) 17 and Insurance Capital

Standard (ICS) 2.0.

SKL's best-selling policy in 2023 was the "SKL Go-Ping-An Whole Life Accident Insurance," with 45,000 policies sold. This policy covers various accident-related disabilities, with add-on medical riders for basic injury and medical protection. SKL also released the limited time "Shin Kong Go Pu Hui Term Insurance" in commemoration of its 60th anniversary. The industry's first universal insurance policy, this low-threshold policy provides coverage for the general public, including individuals aged 0-65 and persons in Taiwan's occupational categories 1 to 6.

SKL continued to promote US-dollar denominated protection-type interest sensitive life policies with six-plus year coverage terms. The "SKL Mei-Tian-Ch-uan-Chia Foreign Currency Interest Sensitive Whole Life Insurance" covers both protection and asset inheri- tance. SKL sold 25,000 such policies, mainly through in-house sales agents, generating NT$6.3 billion in premium income. The company also continued to develop investment-linked products to meet policyholders' protection and investment needs. In 2023, such policies generated FYP of NT$12.38 billion for SKL, up 54.3% YoY.

Solidifying Digital Services and Activating Customer Development

In 2023, SKL optimized proposal systems and incorporated responsive web design (RWD) to enable agents to produce customized policy proposals in real time from mobile phones. The company also enhanced mobile claims processing with digital identity verifica- tion functionality to provide policyholders with the convenience of one-click authorization of completed claims applications, as well as claims alliance authorization forwarding, reducing paper use. In 2023, SKL also led the industry in releasing FIDO identity verification. Offering both financial convenience and security, the system replaces password entry with biometric recognition for account log-in and transaction functions.

SKL continued to upgrade its official LINE, app, and member area service platforms. The company increased its online user base by 10.4% YoY to 1.06 million in 2023. It also had 4.59 million LINE followers, solidifying its top position on the platform in the insurance industry.

SKL deployed digital technology and developed digital tools to enhance service efficiency. These tools provide agents with access to customer dashboards, OCR smart policy health diagnostic tools, and PBI management platforms to select customers lists, enhance business efficiency and benefits, and further reinforce digital capabilities.

Commitment to Climate Governance and Implementation of Sustainability Management

SKL's actions for sustainability have helped SKFH secure a place as a constituent of the Dow Jones Sustainability Indices (DJSI) for three years running. These achievements were further recognized in 2023 as SKFH ranked second globally in the insurance industry group and first in Asia.

SKL is committed to climate governance. In 2023, the company published a Task Force on Climate-Related Financial Disclosures (TCFD) report on its corporate sustainability website in 2023. It also helped SKFH set a course to achieve carbon reduction targets in its investment and financing portfolio aligned with the Science Based Targets initiative (SBTi) and pass the verification process. In the area of carbon reduction, SKL has been phasing out outdated equipment, stepping up energy -saving and carbon reduction advocacy, and using self-purchased green energy in a steady advance towards its 2050 net-zero emission goal.

SKL is reinforcing corporate governance by "en- hancing board functions," "promoting ethical manage- ment," "strengthening anti-money laundering mecha- nisms," "improving internal control systems," and "im- plementing information disclosure." In the area of sustainable finance, the company supports financial products and green energy industries that contribute to sustainable development. It is also expanding negotiations in this area and in 2023 achieved a 100% completion rate in negotiations involving high-carbon investment targets.

Channel Mix Unit: NT$ Millions	9.65%
19.79%	3,749
Direct marketing, brokers,
7,692	and other
Bancassurance
38,859（Unit: NT$ Millions）
First Year Premium
70.56%
27,419	Note: Due to rounding, figures
Agents
	may not add up to the total.

build business momentum. In the area of corporate sus- tainability, SKL will follow SKFH's sustainable strategic values of "low carbon, innovation, and common good" in its pursuit of sustainable growth.

Focusing on Strategic Products and Accumulating Policy Value

In 2024, SKL will continue to promote the sales of high-CSM New Taiwan dollar (NTD) and foreign currency protection, health, and accident policies and riders, as well as develop insurance products and services meeting customer demand and the needs of specific target groups. The company will optimize product structures, enhance policy coverage components, build CSM to align with international regulatory norms, and continue to grow steadily and sustainably.

SKL will grow premium scale through sales of NTD and foreign currency interest-sensitive life policies. It will also deeply cultivate existing product lines to provide customers with superior personal protection, comprehensive retirement planning, and support for reaching their asset inheritance goals.

In 2024, SKL will launch a project to fast-forwardinvestment-linked policies and services. It will comprehensively upgrade services, systems, products, and training and develop investment-linked products meeting customers' needs. SKL will also seek out reliable partners to scale up existing investment accounts, as well as continue to research new investment targets to provide policyholders with more options for their investment allocation.

Last 5 Years－Total Assets Unit: NT$ Millions
2023	3,587,524
2022	3,565,106
2021	3,417,399
2020	3,262,228
2019	3,028,953		Note: Stand-alone total
			assets of SKL
Business Mix Unit: NT$ Millions		4.10
				%
20.16%			6,864
	Individual accident insurance
33,763			6.27
Individual health insurance		%
	10,508
		167,512（Unit: NT$ Millions）	Annuity insurance
		Group insurance
		2023 Total Premium		1.76%
				2,941
67.72%
113,437				Note: Due to rounding, figures
Individual life insurance
				may not add up to the total.

3.recruiting talent.

Products: Focusing on value-added products and

4.aligning with international norms.

Organization: Driving business productivity and organizational growth.

SKL will integrate its successful experience in promoting the "Elite Project," "Campus Intern Recruitment Project," and "Super Mentorship Pearl Project" with recruitment training resources and diversified recruitment to grow organizational scale.

As part of its organizational transformation, SKL will deploy digital technology while maintaining existing operating models to continuously improve business process efficiency. In 2024, the company will enhance support for digital sales tools. It is also planning a new version of its traditional proposal forms, as well as upgrades to the mobile e-policy application 2.0 app and other digital tools. The company will also enhance data utilization and develop new data models to help agents identify customer group patterns, generate client lists, strengthen customer management and marketing, and convert customer capacity into channel capacity.

Aligning with International Trends to Seize Sustainable Opportunities

SKL will integrate environmental, social, and governance (ESG) concepts in operational strategies and continue to follow the United Nations Sustainable Development Goals (SDGs), Principles for Sustainable Insurance (PSI), Principles for Responsible Investment (PRI), and sustainability policy in Taiwan to seize sustainable opportuni- ties. In 2024, SKL plans to focus on the following areas:

1.Environmental (E): SKL will deploy a net zero carbon emission plan, progressively update high energy-consuming equipment and optimize energy management modules. It is also planning self-use renewable energy sites and aims to obtain green certifications for all of its buildings. Attention will be given to climate governance and enhancing the quality of

2.TCFD information disclosure.

Social (S): SKL will develop ESG products, optimize friendly financial services, and implement inclusive finance. Sustainability development will be incorporated into all employee education and training and assistance to employees in achieving work-life bal- ance. The company will also plan ongoing strategies for public service activities and encourage employees

3.to engage in corporate volunteer service. Governance (G): SKL will strengthen board functions and disclose information on external evaluations of board performance. It will optimize mechanisms for sustainable investment, support sustainable financial instruments and green energy industries, and complete carbon reduction plans for investment and financing portfolios according to SBTi methods.

Our light and heart are always with you		2023 ANNUAL REPORT Business Plan	14 / 15