CAPITAL SECURITIES Business Summary

Capital Securities Corp (CSC) operates as a leading independent full-service brokerage and financial services provider in Taiwan, primarily generating revenue through transaction-based commissions, interest income from margin financing, and fee-based services in investment banking. The company’s business is structured into six core segments: Brokerage, which facilitates equity and bond trading for retail and institutional clients; Corporate Financing, providing IPO underwriting, M&A advisory, and private placement services; Proprietary Dealing, involving the firm’s own capital investment in securities; Derivative Instruments, focusing on warrant issuance and options trading; Futures Brokerage; and Wealth Management. As of early 2026, CSC maintains a robust physical presence with over 50 branches across Taiwan and has successfully transitioned toward a digital-first client asset-based model to enhance retention. Its primary direct competitors include President Securities, Yuanta Securities, and IBF Securities; CSC distinguishes itself as the largest independent securities firm in Taiwan not affiliated with a major financial holding company, consistently ranking among the top five in brokerage market share. Established in 1988, the company is currently led by Chairman Hsiu-Chen Chou (周秀真), who brings extensive experience from senior roles at Taichung Bank Securities and Polaris Securities. The executive management team is headed by President and CEO Wen-Chu Lee (李文柱), also known as Mark Lee, a seasoned veteran who previously served as the CEO of Capital Futures Corporation and holds a deep pedigree in futures and derivative markets. The leadership team is characterized by high stability, with an average management tenure exceeding 13 years. The Board of Directors includes key representatives from major institutional shareholders such as Yin Feng Enterprise and Hung Lung Enterprise, alongside distinguished independent directors like former Consumer Protection Committee member Shen-Yi Lee. This leadership structure emphasizes a conservative risk management approach that has allowed CSC to maintain a stable credit profile and consistent dividend payouts despite the inherent volatility of the Taiwanese capital markets.