FAR EASTERN DEPARTMENT STORES Business Summary

Far Eastern Department Stores Ltd (FEDS) operates as a premier multi-format retail conglomerate in Taiwan, primarily generating revenue through direct merchandise sales, concessionaire commissions (typically 15–25% of tenant turnover), and rental income from integrated shopping malls. The company’s business architecture is segmented into its flagship "FEDS" department stores, the premium "Far Eastern SOGO" chain, "A.Mart" hypermarkets, and high-end "CitySuper" supermarkets. As of early 2026, FEDS has solidified its transition toward a "New Retail" model, integrating omnichannel digital platforms with high-experience physical footprints like the "Mega City" and "Top City" formats to counter e-commerce headwinds. Its primary direct competitors include Shin Kong Mitsukoshi, Breeze Center, and Hanshin Department Store. Within this landscape, FEDS maintains a dominant market position as one of Taiwan’s two largest department store operators, distinguished by its extensive geographical footprint and its synergy with the broader Far Eastern Group ecosystem. The company is a core pillar of the Far Eastern Group, founded in 1967 by the late Yu-Ziang Hsu, and is currently led by Chairman Douglas Hsu (Hsu Hsu-tung), a prominent figure in Asian industry with an MBA from the University of Notre Dame and post-graduate studies at Columbia University. Under his stewardship, the executive team is anchored by President Nancy Hsu (Hsu Hsueh-fang), who has been instrumental in modernizing the brand’s aesthetic and expanding the high-growth "City" mall series since 2006. The leadership team, supported by COO Chang Feng Lin and CFO Chih Kuo Tseng, leverages deep institutional expertise from the parent conglomerate’s diverse interests in telecommunications and textiles. Notable institutional backing includes significant shareholdings by Far Eastern New Century Corporation and Asia Cement Corporation, alongside major positions held by global entities such as The Vanguard Group and BlackRock.