About NSC

In 1988, the Taiwan government revised the Securities & Exchange Law to deregulate the securities brokerage industry and develop Taiwan's securities markets. In line with government policy, National Affiliates Corporation joined hands with other major Taiwan companies to form a full service securities firm in October 1988, listed at the OTC market as the first one among competitors in 1994, and proved with ISO9002 in 1996. Our major shareholders were largely, and remain, National Affiliates, Formosa Rubber, Acer Investment, United Microelectronics Corporation, Shanghai Commercial & Savings Bank, Sampo, Continental Engineering, Taiwan Synthetic Rubber, Tai Lung Machinery, and New Japan Securities Co., Ltd.

By adhering to our management philosophy of integrity and quality, loyalty, practicality, expertise, and comprehensive service, we have grown our business at a steady pace since 1988. Our capital base reached NT$11.3 billion by the end of 2000, compared with initial paid-in capital of NT$1 billion. Our total assets also reached NT$16.5 billion by the end of 2000. We added our branches to a number of 40 this year, and still increasing.

In addition, our affiliated corporations include National Investment Trust Co., Ltd. National Capital Management Corporation, National Futures Corporation in Taiwan, NSC Securities (Asia) Limited in Hong Kong, and NSC Securities (Europe) Limited in London. Together with these firms, National Securities Corporation offers our clients a wide range of financial services, both in Taiwan and abroad.

In term of human resources, we continue to recruit the most talented people in the industry and provide them with intensive training. Of our 1,758 employees, 65% are college graduates. The solid work experience of and the expertise accumulated by our employees enable us to provide clients with superior service.

We have steadily grown our securities brokerage, proprietary trading and bond trading businesses and they continue to be industry leaders. Our operating efficiency is exceptional. We ranked first in government bond trading, following a formal assessment by the Central Bank of China (Taiwan) in 1994. With the approval of Taiwan's Securities and Futures Commission, we were the first securities firm to trade on Taiwan's Over-the-Counter Exchange in October 1994. We also were certified to ISO 9002 quality management system standard with a scope to underwriting and brokerage (certificate number FS 36252) at the end of 1996. These achievements have helped us to secure a solid foothold in Taiwan's highly competitive securities markets.

Based on our corporate philosophy of "Give back to society whatever one takes from society, "National Securities Corporation is widely involved in charity activities. On September 21, 1999 when Taiwan's most disastrous earthquake of the century hit, National Securities & Finance Group made monetary contributions to the Nantou, Central Taiwan government and Buddhist Tzu Chi Foundation to aid the reconstruction effort. In 1996, National Securities & Finance Group set up an educational foundation to promote research on finance, economics, art and culture. We set up the Y.D. Sheu Scholarship Fund in 1998, in memory of the late Y.D., Sheu former Governor of Central Bank of China (Taiwan), who passed away that year and who contributed greatly to Taiwan's finance industry as well as academia. In addition, we held a memorial seminar within the Political Science Department at Governor Sheu's alma mater, National Taiwan University, and joined in the establishment of Mr. and Mrs. Sheu's Cultural and Educational Foundation.

In 1999, we held several seminars, including a discussion of the impact of democracy on economic development, securities and direct investment across the Taiwan Strait, and risks in the securities brokerage industry. In addition, we provided funds to The Taipei Philharmonic Orchestra, Cloud Gate Dancing Group, the Edinburgh Art Festival in the United Kingdom, other large charities, and the sculptor Mr. Chu Ming for an outdoor exhibition held under the auspices of the French Ministry of Culture at Place Vendome in Paris. These efforts helped us to receive in March 1998 the first silver Wen-Xing Prize from Taiwan's Council for Cultural Affairs, Executive Yuan. In December 1999, the chairman of National Securities & Finance Group was awarded the National Charity Prize by the Republic of China (R.O.C) Charity Association. In 2000, our chairman was awarded an award for his "Special Contribution" by the SFC. These contributions affirm the importance National Securities & Finance Group places on the development of feedback from society and positive response to the organization.