First Financial, Hua Nan Financial Open to Mergers, Outline Key Principles

Following the state-owned capital's investment in Grand Investment Trust, the prospect of mergers among state-owned financial holding companies has become a significant market focus. Both First Financial and Hua Nan Financial have publicly stated their openness to such strategic alliances, each articulating a set of three core principles to guide their evaluation of potential merger targets.

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We will adopt an 'open, pragmatic, and comprehensive' strategy in the face of financial market consolidation trends.

Hua Nan Financial's President, Hsiao Yu-mei, detailed a strategy of being "open, pragmatic, and comprehensive." While the company's immediate priority remains internal growth, focusing on strengthening core businesses like corporate banking, foreign exchange, retail banking, and wealth management, it is actively assessing external consolidation opportunities. These opportunities will be evaluated based on respecting market mechanisms, achieving consensus among stakeholders, and prioritizing performance. Crucially, any merger must demonstrate complementary business benefits, ensure robust communication and employee rights protection with labor unions, and maintain capital stability while ensuring fair transactions and shareholder interests.

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Merger evaluations will be based on respecting market mechanisms, achieving consensus among stakeholders, and prioritizing performance.

Similarly, First Financial's President, Fang Ying-chi, affirmed an open stance towards both "state-owned-state-owned" and "state-owned-private" mergers. First Financial's evaluation criteria include adherence to regulatory requirements, alignment with the company's long-term strategy to achieve operational synergies, and enhancement of profit stability. The company also aims to improve the rights and interests of shareholders, customers, and employees through any potential merger.

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Whether it's a state-owned-state-owned merger or a state-owned-private merger, First Financial maintains an open attitude.

Market attention is also directed towards the "four-in-one" consolidation of state-owned asset management firms. Minister of Finance, Chuang Tsui-yun, indicated progress towards completing this merger by the end of the year. Hua Nan Financial Chairman, Chen Fen-lan, previously shared that the process is in the phase of negotiating employee resettlement plans, emphasizing transparency and thorough communication with labor unions to address employee concerns.

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We will proceed according to three principles: complying with regulations, achieving operational synergies, and enhancing profit stability.