Financial Summary for FY 2008 1H

Daishin Securities Co.,Ltd.

Non-Consolidated Balance Sheets

September 30, 2008 and March 31, 2008

(in thousands of Korean won)

2008. 9. 30

2008. 3. 31

Assets

Cash and bank deposits

494,711,212 

361,222,311 

Deposits segregated under regulation

739,717,463 

648,848,349 

Trading securities

2,321,029,036 

1,976,064,478 

Available-for-sale securities

215,920,952 

244,113,001 

Equity-method investments

67,763,925 

64,197,769 

Structured securities

616,628,389 

755,122,814 

Derivative assets

270,973,322 

491,492,701 

Loans receivable, net

614,788,559 

730,602,182 

Property and equipment, net

545,290,771 

538,849,820 

Intangible assets, net

14,030,272 

12,352,905 

Accounts receivable, net

22,691,685 

14,279,772 

Accrued revenue, net

36,671,316 

28,636,667 

Advanced payments

6,776,217 

7,594,625 

Guarantee deposits

63,370,931 

65,287,449 

Collective fund for default loss

5,853,178 

6,565,910 

Others

41,969,276 

33,546,774 

Total Assets

6,078,186,504 

5,978,777,527 

Liabilities

Deposits from customers

896,874,273 

811,393,326 

Borrowings

382,839,987 

613,498,183 

Securities sold under repurchase agreement

1,560,578,736 

1,223,720,658 

Securities sold

41,560,906 

13,007,866 

Structured securities sold

1,363,911,687 

1,382,751,472 

Derivative liabilities

92,941,811 

2,636,760 

Accrued severance benefits, net

2,181,979 

1,334,621 

Income taxes payable

15,664,349 

46,266,903 

Other accounts payable

16,201,568 

15,157,455 

Accrued expenses

17,313,124 

19,933,068 

Guarantee deposits received

66,565,333 

71,040,053 

Deferred income tax liabilities

25,623,296 

33,011,641 

Withholdings

3,023,515 

9,257,646 

Others

1,973,192 

5,478,811 

Total Liabilities

4,487,253,756 

4,248,488,463 

Shareholders' equity

Capital Stock

434,867,000 

434,867,000 

Capital Surplus

717,846,169 

717,846,169 

Capital Adjustments

(134,042,580)

(78,044,740)

Accumulated Other Comprehensive Income

57,001,749 

62,538,914 

Retained Earnings or Accumulated Deficit

515,260,410 

593,081,721 

Total shareholders' equity

1,590,932,748 

1,730,289,064 

Total Liabilities and Stockholders' Equity

6,078,186,504 

5,978,777,527 

Daishin Securities Co.,Ltd.

Non-Consolidated Statements of Income

Three-Month & Six-Month Periods ended September 30, 2008 and 2007

(in thousands of Korean won, except per share amounts)

2008

2007

3 Months

6 Months

3 Months

6 Months

Operating Revenues

Commission Income

63,666,448 

141,844,122 

119,720,651 

237,305,319 

Gains on Sales of 

Trading Securities

21,847,473 

32,889,048 

24,755,499 

60,773,314 

Gains on Valuation of

Trading Securities

5,449,911 

3,058,347 

4,785,217 

10,947,317 

Gains on Disposal of

Available-for-sale 

Securities

751,712 

1,422,865 

405,319 

6,107,907 

Gains on Valuation of

Securities Sold

697,396 

676,722 

633,383 

746,151 

Gain on Structured

Securities Transactions

12,813,676 

32,944,406 

19,754,556 

60,779,587 

Gain on Structured

Securities Sold

Transactions

401,971,063 

923,935,389 

93,526,825 

184,182,656 

Gains on Derivative

Transactions

144,854,786 

241,552,347 

337,362,182 

658,215,029 

Interest Income

53,838,078 

105,464,501 

40,960,505 

75,954,046 

Dividend Income

79,611 

1,091,657 

70,540 

1,164,939 

Others

12,421,954 

23,169,089 

18,668,641 

25,707,870 

718,392,108 

1,508,048,493 

660,643,318 

1,321,884,135 

Operating Expense

Commissions Expenses

5,392,619 

11,525,015 

7,952,363 

15,265,104 

Loss on Sales of Trading

Securities

40,635,162 

52,403,426 

20,626,361 

30,144,111 

Loss on Valuation of

Trading Securities

945,284 

14,489,280 

2,823,659 

8,911,606 

Loss on Disposal of

Available-for-sale

Securities

0 

0 

0 

0 

Loss on Impairment of

Available-for-sale

Securities

792,262 

792,264 

17 

617 

Loss on Valuation of

Securities Sold

162,000 

162,000 

87,270 

133,074 

Loss on Structured

Securities Transactions

67,060,218 

72,034,143 

21,220,425 

25,660,461 

Loss on Structured

Securities Sold

Transactions

55,168,497 

134,205,738 

355,751,910 

725,825,156 

Loss on Derivative

Transactions

426,680,917 

968,259,023 

77,769,913 

169,883,210 

Interest Expense

37,365,921 

69,130,737 

23,803,852 

42,653,106 

General and

Administrative Expenses

69,987,459 

140,286,568 

75,557,471 

144,406,387 

Others

8,161,646 

8,399,228 

701,408 

2,450,613 

712,351,985 

1,471,687,422 

586,294,649 

1,165,333,445 

Operating Income

6,040,123 

36,361,071 

74,348,669 

156,550,690 

Non-Operating Income

Office Rental Income

3,398,154 

6,784,482 

3,353,211 

6,543,438 

Gains on Disposal of

Property and Equipment

0 

5,421 

211,943 

10,379,638 

Gains on Valuation of

Equity-method

Investments

173,324 

401,964 

114,146 

539,312 

Others

3,208,082 

3,619,499 

262,984 

2,139,846 

6,779,560 

10,811,366 

3,942,284 

19,602,234 

Non-Operating Expenses

Loss on Disposal of

Property and Equipment

0 

91,290 

205,440 

209,827 

Donation

65,709 

143,309 

86,626 

229,626 

Loss on Valuation of

Equity-method

Investments

199,271 

394,826 

0 

0 

Others

2,530 

5,523 

3,261,016 

3,399,665 

267,510 

634,948 

3,553,082 

3,839,118 

Net Income Before

Income Taxes

12,552,173 

46,537,488 

74,737,870 

172,313,805 

Income Tax Expense

3,641,118 

12,966,963 

20,705,503 

54,989,774 

Net Income

8,911,055 

33,570,525 

54,032,367 

117,324,031 

Earnings Per Share

(in Korean won)

Basic Earnings or Net Loss

Per Share

-₩ 61

₩ 222

₩ 707

₩ 1,529

Diluted Earnings or Losses

Per Share

-₩ 61

₩ 222

₩ 707

₩ 1,529

Daishin Securities Co.,Ltd.

Non-Consolidated Statements of Cash Flows 

Six-Month Periods ended September 30, 2008 and 2007

(in thousands of Korean won)

2008

2007

Cash Flows from Operating Activities

Net Income

33,570,525 

117,324,031 

Adjustments to Reconcile Net Income to Net Cash Provided by (used in) Operating Activities

4,156,654 

(41,081,793)

Changes in Operating Assets and Liabilities

523,260,810 

(12,482,801)

560,987,989 

63,759,437 

Cash Flows from Investing Activities

Increase in Bank Deposits, net

(11,150,000)

0 

Decrease(Increase) in Guarantee Deposits, net

1,916,519 

(3,338,253)

Disposal of Intangible Assets

12,000 

29,742,722 

Acquisition of Intangible Assets

(17,983,580)

(30,103,435)

Decrease in Collective Fund for Default Loss, net

412,732 

228,638 

Others

(9,348,869)

(2,323,198)

(36,141,198)

(5,793,526)

Cash Flows from Financing Activities

Increase in Borrowings, net

132,563,821 

Acquisition of Treasury Shares

(61,227,818)

(30,016,330)

Decrease in Guarantee Deposits Received, net

(4,474,720)

(425,045)

Payments of Dividends

(106,147,158)

(77,430,296)

Others

(230,658,194)

(38,599,999)

(402,507,890)

(13,907,849)

Net Increase in Cash and Cash Equivalents

122,338,901 

44,058,062 

Cash and Cash Equivalents

Cash and Cash Equivalents at Beginning

360,183,811 

85,889,343 

Cash and Cash Equivalents at End

482,522,712 

129,947,405 

Daishin Securities Co.,Ltd.

Non-Consolidated Statements of Changes in Shareholders' Equity

Six-Month Periods ended September 30, 2008

(in thousands of Korean won)

Capital Stock

Capital Surplus

Capital Adjustments

Accumulated Other Comprehen- sive Income

Retained Earnings

Total Equity

Balance as of April 1, 2008

434,867,000 

717,846,169 

(72,814,762)

62,538,914 

587,851,743 

1,730,289,064 

Cumulative Effect of Restatement

Restated Beginning Balance

434,867,000 

717,846,169 

(72,814,762)

62,538,914 

587,851,743 

1,730,289,064 

Cash Dividends

(106,161,859)

(106,161,859)

Retained Earnings After Appropriations

481,689,885 

481,689,885 

Issuance of Shares

Net Income

33,570,525 

33,570,525 

Acquisition of  Treasury Shares

(61,227,818)

(61,227,818)

Loss on Sale of Treasury Stock

Gain on Valuation of Available-for-sale Securities

(8,334,953)

(8,334,953)

Changes in Equity Method Investments

2,797,788 

2,797,788 

Others

0 

Balance as of September 30, 2008

434,867,000 

717,846,169 

(134,042,580)

57,001,749 

515,260,410 

1,590,932,748