Altek - Interim / Quarterly Report 2015

ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

REVIEW REPORT OF INDEPENDENT

ACCOUNTANTS

SEPTEMBER 30, 2015 AND 2014

For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

REVIEW REPORT OF INDEPENDENT ACCOUNTANTS TRANSLATED FROM CHINESE

PWCR15000095 (In Thousands of New Taiwan Dollars)

To Altek Corporation

We have reviewed the accompanying consolidated balance sheets of Altek Corporation and subsidiaries as of September 30, 2015 and 2014, and the related consolidated statements of comprehensive income for the three-month and nine-month periods then ended, as well as the consolidated statements of changes in equity and of cash flows for the nine-month periods then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to issue a conclusion on these financial statements based on our reviews.

Except as discussed in the following paragraph, we conducted our reviews in accordance with the Statement of Auditing Standards No. 36, “Engagements to Review Financial Statements” in the Republic of China. A review consists primarily of inquiries of company personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards in the Republic of China, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

As described in Note 4(3), except for the financial statements of major subsidiaries-Altek International Investment Co., Ltd. and its subsidiary-Altek (Kunshan) Co., Ltd., which were consolidated based on their reviewed financial statements, other insignificant subsidiaries were consolidated based on their unreviewed financial statements as of and for the nine-month periods ended September 30, 2015 and 2014. As of September 30, 2015 and 2014, total assets of these insignificant subsidiaries amounted to $2,637,543 and $2,335,761, representing 17% and 14% of the consolidated total assets, respectively, and total liabilities of these insignificant subsidiaries amounted to $559,102 and $366,308, respresenting 9% and 5% of the consolidated total liabilities, respectively, and their total comprehensive income (loss) amounted to ($18,723), ($21,356), $31,686 and ($122,274), constituting 13%, 17%, 29% and 25% of the consolidated total comprehensive income (loss) for the three-month and nine-month periods then ended, respectively. In addition, as described in Note 6(6) to the

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consolidated financial statements, the financial statements of investments accounted for under the equity method were not reviewed by independent accountants. Equity investments in these investee companies amounted to $166,269 and $262,834 as of September 30, 2015 and 2014, respectively, and their related investment loss amounted to $5,655, $42,867, $10,739 and $70,764 for the three-month and nine-month periods then ended, respectively. These amounts were based solely on their unreviewed financial statements.

Based on our reviews, except for the effect of such adjustments, if any, as might have been determined to be necessary had the financial statements of certain subsidiaries and investee companies been reviewed by independent accountants as described in the preceding paragraph, we are not aware of any material modifications that should be made to the consolidated financial statements referred to in the first paragraph in order for them to be in conformity with the “Rules Governing the Preparation of Financial Statements by Securities Issuers” and IAS 34, “Interim Financial Reporting”, as endorsed by the Financial Supervisory Commission.

PricewaterhouseCoopers, Taiwan Hsinchu, Taiwan Republic of China

November 13, 2015

The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and report of independent accountants are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of New Taiwan dollars)

(The consolidated balance sheets as of September 30, 2015 and 2014 are reviewed, not audited)

Assets	Notes	September 30, 2015 AMOUNT %	December 31, 2014 AMOUNT %	September 30, 2014	September 30, 2014
		AMOUNT	AMOUNT	AMOUNT	%
Current assets Cash and cash equivalents Current financial assets at fair value through profit or loss Notes receivable, net Accounts receivable, net Other receivables Current income tax assets Inventories Prepayments Other current assets Total current assets Non-current assets Non-current financial assets at cost Investments accounted for using equity method Property, plant and equipment Intangible assets Deferred income tax assets Other non-current assets Total non-current assets Total assets	6(1) 6(2) 6(4) 6(5) 6(3) 6(6) 6(7) 6(8) 6(9)

(Continued)

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ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of New Taiwan dollars)

(The consolidated balance sheets as of September 30, 2015 and 2014 are reviewed, not audited)

Liabilities and Equity	Notes	September 30, 2015 AMOUNT %	December 31, 2014 AMOUNT %	September 30, 2014	September 30, 2014
		AMOUNT	AMOUNT	AMOUNT	%
Current liabilities Short-term borrowings Accounts payable Other payables Current income tax liabilities Provisions for liabilities - current Other current liabilities Total current liabilities Non-current liabilities Provisions for liabilities - non-current Deferred income tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities Equity attributable to owners of parent Share capital Common stock Capital surplus Capital surplus Retained earnings Legal reserve Special reserve Unappropriated retained earnings Other equity interest Other equity interest Treasury stocks Equity attributable to owners of the parent Non-controlling interest Total equity Significant contingent liabilities and unrecognised contract commitments Significant events after the balance sheet date Total liabilities and equity	6(10) 12(2) 6(14) and 12(2) 6(13) 6(13) 6(11) 6(14) 6(15) 6(16) 6(17) 6(14) 9 11

The accompanying notes are an integral part of these consolidated financial statements. See review report of independent accountants dated November 13, 2015.

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ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIIVE INCOME

(Expressed in thousands of New Taiwan dollars, except earnings per share ) (UNAUDITED)

Items	Notes	Three months ended September 30	Three months ended September 30
		2015	2014
Sales revenue Operating costs Net operating margin Operating expenses Selling expenses General and administrative expenses Research and development expenses Total operating expenses Operating profit Non-operating income and expenses Other income Other gains and losses Finance costs Share of loss of associates and joint ventures accounted for under equity method Total non-operating income and expenses Profit before income tax Income tax expense Profit for the period

(Continued)

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ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIIVE INCOME

(Expressed in thousands of New Taiwan dollars, except earnings per share ) (UNAUDITED)

Items	Notes	Three months ended September 30	Three months ended September 30
		2015	2014
Other comprehensive income Components of other comprehensive income that will not be reclassified to profit or loss Actuarial gain on defined benefit plan Components of other comprehensive income that will be reclassified to profit or loss Currency translation differences of foreign operations Share of other comprehensive income (loss) of associates and joint ventures accounted for under equity method Income tax relating to the components of other comprehensive income Components of other comprehensive income that will be reclassified to profit or loss Total other comprehensive income for the period Total comprehensive income for the period Profit attributable to: Owners of the parent Non-controlling interest Profit for the period Comprehensive income attributable to: Owners of the parent Non-controlling interest Total comprehensive income for the period Earnings per share Basic earnings per share Diluted earnings per share

The accompanying notes are an integral part of these consolidated financial statements. See review report of independent accountants dated November 13, 2015.

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ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Expressed in thousands of New Taiwan dollars)

(UNAUDITED)

Equity attributable to owners of the parent Retained Earnings

Nine-month period ended September 30, 2014	Notes	Commonstock	Capitalsurplus	Legal reserve	Special reserve	Unappropriated retained earnings	Currency translation differences of foreign operations	Treasury stocks	Total	Non-controlling interest	Totalequity
	6(12)(15)( 16) 6(14)(15) 6(16) 6(17) 6(12)(15)( 16) 6(14) 6(16)	$ 3,902,653 - 88,930 ( 50,000 ) - ( 1,182,475 ) - - - $ 2,759,108 $ 2,701,358 - - 1,180 - - - $ 2,702,538	$ 2,028,690 - 114,056 ( 24,416 ) - ( 13,014 ) - - - $ 2,105,316 $ 2,063,551 - ( 135,127 ) 5,342 - - - $ 1,933,766	$1,319,477 - - - - - - - - $1,319,477 $1,319,477 27,533 - - - - - $1,347,010	$ 339,267 ( 196,811 ) - - - - - - - $ 142,456 $ 142,456 - - - - - - $ 142,456	$ 2,715,960 196,811 - ( 91,834 ) - ( 44,533 ) 244,958 7,322 - $ 3,028,684 $ 2,964,969 ( 27,533 ) ( 135,127 ) - - 239,880 - $ 3,042,189	$ 27,904 - - - - - - 117,572 - $ 145,476 $ 481,868 - - - - - 104,589 $ 586,457	($ 440,573 ) - - 166,250 - 82,297 - - - ($ 192,026) $ - - - - ( 33,255 ) - - ($ 33,255)	$9,893,378 - 202,986 - - ( 1,157,725 ) 244,958 124,894 - $9,308,491 $9,673,679 - ( 270,254 ) 6,522 ( 33,255 ) 239,880 104,589 $9,721,161	$ 6,530 - - - ( 713 ) - 631 - ( 208) $ 6,240 $ 6,449 - - - - 674 - $ 7,123	$9,899,908 - 202,986 - ( 713 ) ( 1,157,725 ) 245,589 124,894 ( 208) $9,314,731 $9,680,128 - ( 270,254 ) 6,522 ( 33,255 ) 240,554 104,589 $9,728,284
Balance at January 1, 2014 Special reserve offset against 2013 losses Share-based payment transactions Disposal of treasury shares Distribution of subsidiary cash dividends Cash capital reduction Profit for the period Other comprehensive income for the period Non-controlling interest Balance at September 30, 2014 Nine-month period ended September 30, 2015
Balance at January 1, 2015 Appropriations of 2014 earnings Legal reserve Cash dividends and capital surplus used to issue cash to shareholders Share-based payment transactions Purchase of treasury shares Profit for the period Other comprehensive income for the period Balance at September 30, 2015

The accompanying notes are an integral part of these consolidated financial statements. See review report of independent accountants dated November 13, 2015.

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ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of New Taiwan dollars) (UNAUDITED)

CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated profit before tax for the period
Adjustments to reconcile profit before tax to net cash used
in operating activities
Income and expenses having no effect on cash flows
Depreciation expense
Amortisation expense
Net (gain) loss on financial assets at fair value through
profit or loss
Interest expense
Interest income
Dividend income
Share-based payment compensation cost
Share of loss of associates and joint ventures accounted
for under equity method
Gain on disposal of property, plant and equipment
Changes in assets/liabilities relating to operating activities
Net changes in assets relating to operating activities
Financial assets at fair value through profit or loss -
current
Notes receivable
Accounts receivable
Other receivables
Inventories
Prepayments
Other current assets
Net changes in liabilities relating to operating activities
Accounts payable
Other payables
Provisions for liabilities
Other current liabilities
Other non-current liabilities
Cash used in operations
Interest received
Cash dividends received
Interest paid
Income tax paid
Net cash used in operating activities

For the nine-monthperiods ended September 30,
Notes
2015
2014
$ 246,634
$ 293,633
6(7)(21)
311,605
278,052
6(8)(21)
11,581
14,422
6(2)(19)
(
1,754 )
4,289
6(20)
14,802
13,332
6(18)
(
37,957 ) (
55,423 )
(
267 ) (
572 )
6(12)
2,451
5,614
10,739
70,764
6(19)
(
3,469 ) (
2,136 )
28,585
(
819,269 )
31,135
15,492
(
756,591 ) (
530,940 )
(
2,643 )
16,798
(
224,660 )
250,103
13,077
(
24,674 )
(
13,333 )
6,138
(
642,054 ) (
23,788 )
(
4,588 ) (
113,795 )
(
9,087 ) (
66,433 )
25,973
(
84,498 )
353
346
(
999,468 ) (
752,545 )
36,422
66,000
267
572
(
14,715 ) (
10,101 )
(
53,941) (
14,375)
(
1,031,435) (
710,449)

(Continued)

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ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of New Taiwan dollars) (UNAUDITED)

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at cost
Proceeds from capital reduction of financial assets at cost
Acquisition of property, plant and equipment
Proceeds from disposal of property, plant and equipment
Increase in intangible assets
Decrease in deposits received
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings
Decrease in deposits-in
Employee stock options exercised
Payments to acquire treasury shares
Changes in non-controlling interest
Net cash provided by financing activities
Effect of exchange rate
(Decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

For the nine-monthperiods ended September 30,
Notes
2015
2014
($ 20,374 )
$ -
5,806
-
6(27)
(
46,657 ) (
105,471 )
3,469
2,236
6(27)
(
8,839 ) (
5,533 )
1,293
3,367
(
65,302 ) (
105,401 )
6(10)
140,000
608,551
(
6,022 ) (
2,339 )
4,071
197,372
6(14)
(
33,255 )
-
-
(
921 )
104,794
802,663
106,377
98,012
(
885,566 )
84,825
6(1)
5,441,850
4,619,412
6(1)
$ 4,556,284
$ 4,704,237

The accompanying notes are an integral part of these consolidated financial statements. See review report of independent accountants dated November 13, 2015.

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ALTEK CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2015 AND 2014

(Expressed in thousands of New Taiwan dollars, unless stated otherwise) (Unaudited)

1. HISTORY AND ORGANIZATION

Altek Corporation (the “Company”) was incorporated as a company limited by shares under the provisions of the Company Law of the Republic of China (R.O.C.). The Company and its subsidiaries (collectively referred herein as the “Group”) are primarily engaged in the development, manufacturing and sale of digital image technology application, and related export and import trade.

The Company was listed in the Taiwan Stock Exchange on December 24, 2002, as approved by the Tai-Tz (91) Letter No. 024976 of the former Securities and Futures Commission, Ministry of Finance, R.O.C., dated September 27, 2002.

2. THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORIZATION

These consolidated financial statements were authorized for issuance by the Board of Directors on November 13, 2015.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRSs”) as endorsed by the Financial Supervisory Commission (“FSC”)
According to Financial-Supervisory-Securities-Auditing No. 1030010325 issued by FSC on April 3, 2014, commencing 2015, companies with shares listed on the TWSE or traded on the Taipei Exchange or Emerging Stock Market shall adopt the 2013 version of IFRS (not including IFRS 9, ‘Financial instruments’) as endorsed by the FSC and Regulations Governing the Preparation of Financial Reports by Securities Issuers effective January 1, 2015 (collectively referred herein as “the 2013 version of IFRS”) in preparing the consolidated financial statements. The impact of adopting the 2013 version of IFRS is listed below:
A. IAS 19 , ‘Employee benefits’
- The revised standard makes amendments that net interest amount, calculated by applying the discount rate to the net defined benefit asset or liability, replaces the finance charge and expected return on plan assets. The revised standard eliminates the accounting policy choice that the actuarial gains and losses could be recognised based on corridor approach or recognised in profit or loss. The revised standard requires that the actuarial gains and losses can only be recognised immediately in other comprehensive income when incurred. Past service cost will be recognised immediately in the period incurred and will no longer be amortised using

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straight-line basis over the average period until the benefits become vested. An entity is required to recognise termination benefits at the earlier of when the entity can no longer withdraw an offer of those benefits and when it recognises any related restructuring costs, rather than when the entity is demonstrably committed to a termination.

B. IAS 1, ‘Presentation of financial statements’

The amendment requires entities to separate items presented in OCI classified by nature into two groups on the basis of whether they are potentially reclassified to profit or loss subsequently when specific conditions are met. If the items are presented before tax then the tax related to each of the two groups of OCI items (those that might be reclassified and those that will not be reclassified) must be shown separately. Accordingly, the Group will adjust its presentation of the statement of comprehensive income.

C. IFRS 12, ‘Disclosure of interests in other entities’

The standard integrates the disclosure requirements for subsidiaries, joint arrangements, associates and unconsolidated structured entities. Also, the Group will disclose additional information about its interests in consolidated entities and unconsolidated entities accordingly.

D. IFRS 13, ‘Fair value measurement’

The standard defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard sets out a framework for measuring fair value using the assumptions that market participants would use when pricing the asset or liability; for non-financial assets, fair value is determined based on the highest and best use of the asset. Also, the standard requires disclosures about fair value measurements. Based on the Group’s assessment, the adoption of the standard has no significant impact on its consolidated financial statements, and the Group will disclose additional information about fair value measurements accordingly.

(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by

the Group

None.

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(3) IFRSs issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the 2013 version of IFRS as endorsed by the FSC:

version of IFRS as endorsed by the FSC:
New Standards,Interpretations and Amendments	Effective Date by International Accounting Standards Board
IFRS 9, ‘Financial instruments' Sale or contribution of assets between an investor and its associate or joint venture (amendments to IFRS 10 and IAS 28) Investment entities: applying the consolidation exception (amendments to IFRS 10, IFRS 12 and IAS 28) Accounting for acquisition of interests in joint operations (amendments to IFRS 11) IFRS 14, 'Regulatory deferral accounts' IFRS 15, ‘Revenue from contracts with customers' Disclosure initiative (amendments to IAS 1) Clarification of acceptable methods of depreciation and amortisation (amendments to IAS 16 and IAS 38) Agriculture: bearer plants (amendments to IAS 16 and IAS 41) Defined benefit plans: employee contributions (amendments to IAS 19R) Equity method in separate financial statements (amendments to IAS 27) Recoverable amount disclosures for non-financial assets (amendments to IAS 36) Novation of derivatives and continuation of hedge accounting (amendments to IAS 39) IFRIC 21, ‘Levies’ Improvements to IFRSs 2010-2012 Improvements to IFRSs 2011-2013 Improvements to IFRSs 2012-2014	January 1, 2018 January 1, 2016 January 1, 2016 January 1, 2016 January 1, 2016 January 1, 2018 January 1, 2016 January 1, 2016 January 1, 2016 July 1, 2014 January 1, 2016 January 1, 2014 January 1, 2014 January 1, 2014 July 1, 2014 July 1, 2014 January 1, 2016

version of IFRS as endorsed by the FSC:

New Standards,Interpretations and Amendments

Effective Date by
International Accounting
Standards Board

IFRS 9, ‘Financial instruments'
Sale or contribution of assets between an investor and its associate or
joint venture (amendments to IFRS 10 and IAS 28)
Investment entities: applying the consolidation exception (amendments
to IFRS 10, IFRS 12 and IAS 28)
Accounting for acquisition of interests in joint operations
(amendments to IFRS 11)
IFRS 14, 'Regulatory deferral accounts'
IFRS 15, ‘Revenue from contracts with customers'
Disclosure initiative (amendments to IAS 1)
Clarification of acceptable methods of depreciation and amortisation
(amendments to IAS 16 and IAS 38)
Agriculture: bearer plants (amendments to IAS 16 and IAS 41)
Defined benefit plans: employee contributions
(amendments to IAS 19R)
Equity method in separate financial statements (amendments to IAS 27)
Recoverable amount disclosures for non-financial assets
(amendments to IAS 36)
Novation of derivatives and continuation of hedge accounting
(amendments to IAS 39)
IFRIC 21, ‘Levies’
Improvements to IFRSs 2010-2012
Improvements to IFRSs 2011-2013
Improvements to IFRSs 2012-2014

January 1, 2018
January 1, 2016
January 1, 2016
January 1, 2016
January 1, 2016
January 1, 2018
January 1, 2016
January 1, 2016
January 1, 2016
July 1, 2014
January 1, 2016
January 1, 2014
January 1, 2014
January 1, 2014
July 1, 2014
July 1, 2014
January 1, 2016

The Group is assessing the potential impact of the new standards, interpretations and amendments above and has not yet been able to reliably estimate their impact on the consolidated financial statements.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

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(1) Compliance statement

A.The consolidated financial statements of the Group have been prepared in accordance with the “Rules Governing the Preparation of Financial Statements by Securities Issuers” and IAS 34, ‘Interim Financial Reporting’ as endorsed by the FSC.
B.The consolidated financial statements should be read with the consolidated financial statements for the year 2014.

(2) Basis of preparation

A.Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:
a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.
b) Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.
B.The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

A.Basis for preparation of consolidated financial statements:
Basis for preparation of consolidated financial statements is consistent with the consolidated financial statements for the year 2014.

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B. Subsidiaries included in the consolidated financial statements:

Name of Investor	Name ofSubsidiaries	Main BusinessActivities		Ownership (%)		Note
			September 30, 2015	December 31, 2014	September 30, 2014
Altek Corporation " " " " Altek International Investment Co., Ltd. " Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Altek Trading (Shanghai) Limited Note 1	Altek International Investment Co., Ltd. Altek Japan Corporation Altek Investment Co., Ltd. Altek Autotronics Corporation Altek Biotechnology Corporation Altek Lab Inc. Altek Optical (Cayman) Co., Ltd. Altek (Kunshan) Co., Ltd. Altek EMS (Kunshan) Co., Ltd. Altek Imaging Technology (Shanghai) Limited Altek Precision (Kunshan) Co., Ltd. Altek Trading (Shanghai) Limited Altek Semiconductor Corporation Beijing Altek Image Communication Technology Co., Ltd. Altek Optical Technology (Kunshan) Co., Ltd.	Investments and general business operations Sales and design of optical instruments Investments Research design, manufacture and sales of car electronic components Research and development, manufacture and sales of biotechnology Design service Investments and general business operations Manufacture and sales of digital still camera and its accessories Manufacture and sales of related engineering services Manufacture and sales of optical components Manufacture and sales of digital camera parts Wholesale, import and export of related electronic and their associated accessories Research design and sales of ASIC Sales of electronic and their related accessories Manufacture and sales of related electronic services and its accessories and optical components	100% 100% 100% 98.02% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%	100% 100% 100% 98.02% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%	100% 100% 100% 98.02% - 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%	Note 3 Note 3 Note 3 Note 2 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3

Note 1: Altek International Investment Co., Ltd.’s wholly- owned subsidiaries, Leading Tech. Co., Ltd., Toptek Investment Cayman Co., Ltd. 、 Altek Imaging Technology (Cayman) Co., Ltd. 、 Altek Trading (Cayman) Co.,

Ltd., Altek Semiconductor (Cayman) Co., Ltd., Altek Optical Technology (Cayman) Co., Ltd., which Altek International Investment Co., Ltd. invests other subsidiaries through.

Note 2: Altek Biotechnology Corporation was established on December 11, 2014.

Note 3: As the subsidiaries do not meet the definition of significant subsidiaries, their financial statements as of September 30, 2015 and 2014 were not reviewed by independent accountants.

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C.Subsidiaries not included in the consolidated financial statements: None.
D.Adjustments for subsidiaries with different balance sheet dates: None.
E.Material restrictions: None.
F.Subsidiaries that have non-controlling interests that are material to the Group: None.

(4) Employee benefits

Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. Also, the related information is disclosed accordingly.

(5) Income tax

The interim period income tax expense is recognised based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.

5. CRITICALACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF

ASSUMPTION UNCERTAINTY

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below:

(1) Critical judgements in applying the Group’s accounting policies: None.

(2) Critical accounting estimates and assumptions:

A.Impairment assessment of investments accounted for using equity method
The Group assesses the impairment of an investment accounted for using equity method as soon as there is any indication that it might have been impaired and its carrying amount may not be recoverable. The Group assesses the recoverable amounts of an investment accounted for under the equity method based on the present value of expected cash dividends receivable from the investee and expected future cash flows from the disposal of the investee, and analyses the reasonableness of related assumptions.
As of September 30, 2015, the Group’s investments accounted for under the equity method, net of impairment loss, amounted to $166,269.
B.Evaluation of inventories

As inventories are stated at the lower of cost and net realisable value, the Group must determine the net realisable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Group evaluates the amounts of normal inventory

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consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realisable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes to the evaluation.

As of September 30, 2015, the carrying amount of inventories was $1,407,172.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash

Cash
Cash on hand Checking accounts and demand deposits Time deposits	September 30,2015 1,308 $ 199,138 4,355,838 4,556,284 $	December 31,2014 1,194 $ 126,864 5,313,792 5,441,850 $	September 30,2014
			987 $ 123,625 4,579,625
			4,704,237 $

A.The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

B.The Group has no cash and cash equivalents pledged to others.

(2) Financial assets at fair value through profit or loss

Items Current items: Financial assets held for trading Valuation adjustment	September 30,2015 332,432 $ 2,258 334,690 $	December 31,2014 September 30,2014 361,658 $ 1,255,036 $ 497 2,111 362,155 $ 1,257,147 $

The Group recognized net gain of $417 and $230 for the three-month periods ended September 30, 2015 and 2014, respectively, and net loss of ($11,578) and ($4,289) for the nine-month periods ended September 30, 2015 and 2014, respectively.

(3) Financial assets measured at cost

Financial assets measured at cost
Items	September	30,2015	December	31,2014	September	30,2014
Non-current items:
Unlisted stocks	$	256,258	$	241,402	$	245,327
Less: Accumulated impairment	(	90,033)	(	90,033)	(	89,152)
	$	166,225	$	151,369	$	156,175

A.As the Group’s investment in unlisted stocks are not traded in an active market, and no sufficient industry information of companies similar to these stocks financial information can be obtained, the fair value of the investment in unlisted stocks cannot be measured reliably. Accordingly, the Group classified those stocks as ‘financial assets measured at cost’.

B. No impairment loss was recognised for the financial assets measured at cost for the three-month

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or nine-month periods ended September 30, 2015 and 2014.

C.As of September 30, 2015, December 31, 2014 and September 30, 2014, no financial assets measured at cost held by the Group were pledged to others.

(4) Accounts receivable

Accounts receivable
		September30,2015			December31,2014	September30,2014
Accounts receivable		$	3,128,629	2,367,831 $		$	2,850,160
Less: allowance for bad debts	(		37)	(	37)		-
		$	3,128,592		2,367,794 $	$	2,850,160
A.The credit quality of accounts receivable that were				neither past due nor		impaired	was in the
following categories based on the			Group’s Credit Quality Control Policy:
		September30,2015			December31,2014	September30,2014
Group 1		$	3,101,452		2,357,895 $	$	2,837,896
Group 2			22,508		8,784		8,430
		$	3,123,960		2,366,679 $	$	2,846,326

Note:

Group 1: Including domestic and foreign listed companies and their affiliated companies. Group 2: Others.

B.The ageing analysis of accounts receivable that were past due but not impaired is as follows:

Up to 30 days 31 to 90 days 91 to 180 days Over 180 days	September30,2015 1,648 $ 2,984 - - 4,632 $	December31,2014 1,077 $ 38 - - 1,115 $	September30,2014
			- $ 2,267 1,513 54
			3,834 $

The above ageing analysis was based on past due date.

C.Movements on the Group’s provision for impairment of accounts receivable are as follows:

	2015
Individualprovision 37 $	Group provision - $ 2014	Total
		37 $

	Group provision Total - $ 652,675 $ - 652,675) ( - $ - $	Total
		- $

Note: The impaired financial assets refer to receivables from Kodak US which has filed for bankruptcy protection. The full amount of the unrecovered receivables was recorded as

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impaired. The possibility of recovery of receivables was assessed to be low during the second quarter of 2014, thus, the receivables were written off.

D.The Group does not hold any collateral as security.

(5) Inventories

nventories
Raw materials Work-in-process Finished goods Total Raw materials Work-in-process Finished goods Total Raw materials Work-in-process Finished goods Total		September30,2015
	Cost 830,339 $ 227,050 539,639 1,597,028 $	Allowance for valuation loss 116,122) ($ 20,229) ( 53,505) ( 189,856) ($ December31,2014	Bookvalue
			714,217 $ 206,821 486,134
			1,407,172 $

	Cost 497,182 $ 236,833 555,805 1,289,820 $		Bookvalue
			426,474 $ 213,676 536,211
			1,176,361 $

	Cost 608,963 $ 234,874 355,832 1,199,669 $		Bookvalue
			543,007 $ 210,880 338,639
			1,092,526 $

The cost of inventories recognised as expense for the three-month periods ended September 30, 2015 and 2014 was $3,271,941 and $3,143,784, respectively, and for the nine-month periods ended September 30, 2015 and 2014 was $8,226,897 and $10,986,936, respectively, including the amount of $16,239, $2,832, $20,238 and ($2,144), respectively, that the Group wrote down from cost to net realizable value accounted for as ‘cost of goods sold’ or that the Group reversed from a previous inventory write-down and accounted for as reduction of ‘cost of goods sold’.

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(6) Investments accounted for under the equity method

	September	30,2015	December	31,2014	September	30,2014
JinJing Optical Technology Co., Ltd.	$	48,358	$	61,214	$	60,144
Phoenix Optical (Shanghai) Co., Ltd.		154,712		155,107		226,277
		203,070		216,321		286,421
Less: accumulated impairment loss	(	36,801)	(	36,801)	(	23,587)
	$	166,269	$	179,520	$	262,834

The carrying amount of the Group’s interests in all individually immaterial associates and the Group’s share of the operating results are summarized below:

As of September 30, 2015, December 31, 2014 and September 30, 2014, the carrying amount of the Group’s individually immaterial associates amounted to $166,269, $179,520 and $262,834, respectively.

Loss for the period from continuing operations Other comprehensive income- net of tax Total comprehensive loss	Nine months ended September 30,2015	Nine months ended September 30,2014
	62,734) ($ 11,329) ( 74,063) ($	172,972) ($ - 172,972) ($

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(7) Property, plant and equipment

At January 1, 2015 Cost Accumulated depreciation Nine-month period ended September 30, 2015 Opening net book amount Additions Disposals Reclassifications Depreciation charge Net exchange differences Closing net book amount At September 30, 2015 Cost Accumulated depreciation	Land Buildings 1,042,216 $ 3,774,021 $ - 496,859) ( 1,042,216 $ 3,277,162 $ 1,042,216 $ 3,277,162 $ - - - - - - - 71,668) ( - 2,771) ( 1,042,216 $ 3,202,723 $ 1,042,216 $ 3,771,506 $ - 568,783) ( 1,042,216 $ 3,202,723 $	Machinery	Test equipment
		1,914,467 $ 920,394) ( 994,073 $ 994,073 $ 128 - 240 131,013) ( 444 863,872 $ 1,896,311 $ 1,032,439) ( 863,872 $	221,421 $ 178,466) ( 42,955 $ 42,955 $ 2,112 - - 17,238) ( 122) ( 27,707 $ 219,062 $ 191,355) ( 27,707 $

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At January 1, 2014 Cost Accumulated depreciation Nine-month period ended September 30, 2014 Opening net book amount Additions Disposals Reclassifications Depreciation charge Net exchange differences Closing net book amount At September 30, 2014 Cost Accumulated depreciation	Land Buildings 1,042,216 $ 3,637,511 $ - 384,930) ( 1,042,216 $ 3,252,581 $ 1,042,216 $ 3,252,581 $ - - - - - - - 70,172) ( - 23,483 1,042,216 $ 3,205,892 $ 1,042,216 $ 3,664,367 $ - 458,475) ( 1,042,216 $ 3,205,892 $	Machinery	Test equipment
		2,297,655 $ 1,223,233) ( 1,074,422 $ 1,074,422 $ 8,614 53 3,658 113,876) ( 11,427 984,298 $ 2,336,177 $ 1,351,879) ( 984,298 $	211,774 $ 144,247) ( 67,527 $ 67,527 $ 1,391 26 - 21,833) ( 467 47,578 $ 214,166 $ 166,588) ( 47,578 $

For the nine-month periods ended September 30, 2015 and 2014, there was no capitalisation of borrowing interests attributable to the property, plant and equipment and the Group did not pledge any fixed asset as collateral.

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(8) Intangible assets

A. Details of amortisation on intangible assets are as follows: B.The Group has no intangible assets pledged to others. Long-term prepaid rents ( shown as‘Other non-current assets’) 2015 2014 At January 1 Cost 138,662 $ 141,213 $ Accumulated amortisation and impairment 35,215) ( 30,800) ( 103,447 $ 110,413 $ Nine-month period ended September 30 Opening net book amount 103,447 $ 110,413 $ Additions 2,676 3,663 Amortisation charge 10,808) ( 13,677) ( Net exchange differences 2,565 1,647 Closing net book amount 97,880 $ 102,046 $ At September 30 Cost 131,695 $ 132,679 $ Accumulated amortisation and impairment 33,815) ( 30,633) ( 97,880 $ 102,046 $ Three months ended September30,2015 Three months ended September30,2014 Operating costs 1,926 $ 1,840 $ Operating expense 1,764 2,820 3,690 $ 4,660 $ Nine months ended September30,2015 Nine months ended September30,2014 Operating costs 5,767 $ 5,563 $ Operating expense 5,041 8,114 10,808 $ 13,677 $ September 30,2015 December 31,2014 September 30,2014 Landuse right 40,131 $ 40,957 $ 39,402 $	A. Details of amortisation on intangible assets are as follows: B.The Group has no intangible assets pledged to others. Long-term prepaid rents ( shown as‘Other non-current assets’) 2015 2014 At January 1 Cost 138,662 $ 141,213 $ Accumulated amortisation and impairment 35,215) ( 30,800) ( 103,447 $ 110,413 $ Nine-month period ended September 30 Opening net book amount 103,447 $ 110,413 $ Additions 2,676 3,663 Amortisation charge 10,808) ( 13,677) ( Net exchange differences 2,565 1,647 Closing net book amount 97,880 $ 102,046 $ At September 30 Cost 131,695 $ 132,679 $ Accumulated amortisation and impairment 33,815) ( 30,633) ( 97,880 $ 102,046 $ Three months ended September30,2015 Three months ended September30,2014 Operating costs 1,926 $ 1,840 $ Operating expense 1,764 2,820 3,690 $ 4,660 $ Nine months ended September30,2015 Nine months ended September30,2014 Operating costs 5,767 $ 5,563 $ Operating expense 5,041 8,114 10,808 $ 13,677 $ September 30,2015 December 31,2014 September 30,2014 Landuse right 40,131 $ 40,957 $ 39,402 $	A. Details of amortisation on intangible assets are as follows: B.The Group has no intangible assets pledged to others. Long-term prepaid rents ( shown as‘Other non-current assets’) 2015 2014 At January 1 Cost 138,662 $ 141,213 $ Accumulated amortisation and impairment 35,215) ( 30,800) ( 103,447 $ 110,413 $ Nine-month period ended September 30 Opening net book amount 103,447 $ 110,413 $ Additions 2,676 3,663 Amortisation charge 10,808) ( 13,677) ( Net exchange differences 2,565 1,647 Closing net book amount 97,880 $ 102,046 $ At September 30 Cost 131,695 $ 132,679 $ Accumulated amortisation and impairment 33,815) ( 30,633) ( 97,880 $ 102,046 $ Three months ended September30,2015 Three months ended September30,2014 Operating costs 1,926 $ 1,840 $ Operating expense 1,764 2,820 3,690 $ 4,660 $ Nine months ended September30,2015 Nine months ended September30,2014 Operating costs 5,767 $ 5,563 $ Operating expense 5,041 8,114 10,808 $ 13,677 $ September 30,2015 December 31,2014 September 30,2014 Landuse right 40,131 $ 40,957 $ 39,402 $	A. Details of amortisation on intangible assets are as follows: B.The Group has no intangible assets pledged to others. Long-term prepaid rents ( shown as‘Other non-current assets’) 2015 2014 At January 1 Cost 138,662 $ 141,213 $ Accumulated amortisation and impairment 35,215) ( 30,800) ( 103,447 $ 110,413 $ Nine-month period ended September 30 Opening net book amount 103,447 $ 110,413 $ Additions 2,676 3,663 Amortisation charge 10,808) ( 13,677) ( Net exchange differences 2,565 1,647 Closing net book amount 97,880 $ 102,046 $ At September 30 Cost 131,695 $ 132,679 $ Accumulated amortisation and impairment 33,815) ( 30,633) ( 97,880 $ 102,046 $ Three months ended September30,2015 Three months ended September30,2014 Operating costs 1,926 $ 1,840 $ Operating expense 1,764 2,820 3,690 $ 4,660 $ Nine months ended September30,2015 Nine months ended September30,2014 Operating costs 5,767 $ 5,563 $ Operating expense 5,041 8,114 10,808 $ 13,677 $ September 30,2015 December 31,2014 September 30,2014 Landuse right 40,131 $ 40,957 $ 39,402 $	A. Details of amortisation on intangible assets are as follows: B.The Group has no intangible assets pledged to others. Long-term prepaid rents ( shown as‘Other non-current assets’) 2015 2014 At January 1 Cost 138,662 $ 141,213 $ Accumulated amortisation and impairment 35,215) ( 30,800) ( 103,447 $ 110,413 $ Nine-month period ended September 30 Opening net book amount 103,447 $ 110,413 $ Additions 2,676 3,663 Amortisation charge 10,808) ( 13,677) ( Net exchange differences 2,565 1,647 Closing net book amount 97,880 $ 102,046 $ At September 30 Cost 131,695 $ 132,679 $ Accumulated amortisation and impairment 33,815) ( 30,633) ( 97,880 $ 102,046 $ Three months ended September30,2015 Three months ended September30,2014 Operating costs 1,926 $ 1,840 $ Operating expense 1,764 2,820 3,690 $ 4,660 $ Nine months ended September30,2015 Nine months ended September30,2014 Operating costs 5,767 $ 5,563 $ Operating expense 5,041 8,114 10,808 $ 13,677 $ September 30,2015 December 31,2014 September 30,2014 Landuse right 40,131 $ 40,957 $ 39,402 $
			1,840 $ 2,820 4,660 $ Nine months ended September30,2014
			$ $	5,563 8,114 13,677 September 30,2014 39,402 $
Landuse right	September 30,2015 40,131 $
		40,957 $

The Group recognized amortisation expenses for the three-month periods ended September 30, 2015 and 2014 amounting to $259 and $247, respectively, and for the nine-month periods ended September 30, 2015 and 2014 amounting to $774 and $745, respectively.

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(10) Short-term borrowings

Short-term borrowings
Type ofborrowings Bank borrowings Unsecured borrowings Type of borrowings Bank borrowings Unsecured borrowings Type ofborrowings Bank borrowings Unsecured borrowings	September30,2015 1,550,000 $ December 31,2014 1,410,000 $ September30,2014 1,608,551 $	Interestraterange 1.21%~1.30% Interest rate range 1.21%~1.36% Interestraterange 1.19%~2.03%	Collateral
			None Collateral
			None Collateral
			None

(11) Pensions

A. a)The Company and its domestic subsidiaries have a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee.
b) For the aforementioned pension plan, the Group recognised pension costs of $356 and $3 for the three-month periods ended September 30, 2015 and 2014, respecitively, and $362 and $355 for the nine-month periods ended September 30, 2015 and 2014, respectively.
c) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2016 amounts to $12.
B. a) Effective July 1, 2005, the Company and its domestic subsidiaries have established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiaries contribute monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. For the three-month periods ended September 30, 2015 and 2014, the Group had recognized pension costs of $8,868 and $8,845, respectively, and for the nine-month periods ended September 30, 2015 and 2014, the Group had recognized pension costs of

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$26,537 and $26,533, respectively, under the above pension scheme.
b) The subsidiaries provided defined contribution plans for its employees. Pursuant to local regulations, such employees and the subsidiaries each make contributions based on a certain percentage of the salaries and wages to the pension funds. The subsidiaries had recognised pension costs of $13,291 and $10,058 for the three-month periods ended September 30, 2015 and 2014, respecitively, and $37,634 and $35,372 for the nine-month periods ended September 30, 2015 and 2014, respectively.

(12) Share-based payments

A.As of September 30, 2015 and 2014, the Company’s share-based payment arrangements were as follows:

			Quantity	Quantity	Contract	Contract	Vesting
Type of arrangement		Grant date	granted		period		conditions
Employee stock options		June 13, 2008		8,000	9.6 years		Note
"		October 31, 2008		1,000	9.2 years		Note
"		March 23, 2009		3,000	8.8 years		Note
"		October 28, 2011		3,000	9.2 years		Note
"		March 21, 2012		3,000	8.9 years		Note
Note: 2 years’ service vest	40%, 3 years’ service vest 70%, 4			years’	service vest	100%.
Details of the share-based payment arrangements are as			follows:
		Nine-month period ended			Nine-month period ended
		September 30,2015			September	30,2014
		Weighted-average				Weighted-average
		exercise price					exercise price
		No. of options (in dollars)(Note)		No.	of options	(in dollars)(Note)
Options outstanding at
beginning of the period		6,561 $	33.60		15,708	$	22.60
Options expired	(	1,288)	-	(	254)		-
Options exercised	(	118)	34.50	(	8,893)		22.19
Options outstanding at end of
the period		5,155	32.80		6,561		33.60
Options exercisable at end of
the period		3,637	32.60		3,201		32.60
Approved and not yet issued
options at the end of the
period		-			-

Note: 2 years’ service vest 40%, 3 years’ service vest 70%, 4 years’ service vest 100%. B.Details of the share-based payment arrangements are as follows:

Note: The exercise price of stock options was adjusted based on the cash dividends, stock dividends and cash capital reduction per share distributed.

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C.The weighted-average stock price of stock options at exercise dates for the nine-month periods ended September 30, 2015 and 2014 was $37.48 and $30.39 (in dollars), respectively. No stock options were exercised during the three-month periods ended September 30, 2015 and 2014.
D.The expiry date and exercise price of stock options outstanding at balance sheet date are as follows:

follows:
Issue date approved Expirydate June 13, 2008 December 31, 2017 October 31, 2008 December 31, 2017 March 23, 2009 December 31, 2017 October 28, 2011 December 31, 2020 March 21, 2012 December 31, 2020	September 30,2015		December 31,2014	September 30,2014
	No. of shares (inthousands) 1,400 30 - 2,320 1,405	Exercise price (Note)(indollars) 32.00 $ 26.08 - 33.20 33.00	No. of shares Exercise price (inthousands) (Note)(indollars) 1,555 33.40 $ 256 28.00 366 26.40 2,320 34.70 2,064 34.50	No. of shares Exercise price (inthousands) (Note)(indollars) 1,555 33.40 $ 256 28.00 366 26.40 2,320 34.70 2,064 34.50

Note: The exercise price of stock options was adjusted based on the cash dividends, stock dividends and cash capital reduction per share distributed.
E.The fair value of stock options granted is measured using the Black-Scholes option-pricing model. Relevant information is as follows:

Type of arrangement	Grant date	Stock price (in dollars)	Exercise price (Note 1) (in dollars)	Expected price volatility	Expected option life	Expected dividends 1.5% 1.5% 1.5% 1.4% 1.4%	Risk-free interest rate	Fair value per unit (in dollars)
Employee stock options " " " "	June 13, 2008 October 31, 2008 March 23, 2009 October 28, 2011 March 21, 2012	$ 45.50 32.60 30.90 30.65 27.85	$ 33.40 28.00 26.40 34.70 34.50	24.45% 22.11% 22.63% 30.27% 33.54%	6 years 6 years 6 years 5 years 4.9 years		2.40% 1.88% 0.96% 1.18% 1.08%	10.56 $ 6.54 5.73 7.42 7.35

Note 1: The exercise price of stock options was adjusted based on the cash dividends, stock dividends and cash capital reduction per share distributed.

Note 2: Given that the exercise was close to the grant date, the fair value per unit was estimated using the intrinsic value method.

F.Expenses incurred on share-based payment transactions are shown below:

Equity-settled Equity-settled	For the three-month period ended September 30,2015 712 $ For the nine-month period ended September 30,2015 2,451 $	For the three-month period ended September 30,2014
		1,662 $
		For the nine-month period ended September 30,2014
		5,614 $

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(13) Provisions

At January 1, 2015 Additional provisions Exchange differences At September 30, 2015 Current Non-current	September30,2015 48,419 $ 127,058 $	$ ( ( $ December31,2014 64,373 $ 120,235 $	184,608 9,087) 44) 175,477 September30,2014 119,793 $ 89,205 $

The Group provides warranties on digital image technology application products sold. Provision for warranty is estimated based on historical warranty data of digital image technology application products.

(14) Share capital

A.As of September 30, 2015, the Company’s authorized capital was $5,000,000, consisting of 500 million shares of ordinary stock, and the paid-in capital was $2,702,538 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

Movements in the number of the Company’s ordinary shares outstanding are as follows:

(Expressed in thousands of shares)

		2015		2014
At January 1		270,136		377,015
Employee stock options exercised		118		8,893
Cash capital reduction		-	(	115,772)
Purchase of treasury shares	(	981)		-
At September 30		269,273		270,136

B.Treasury shares

a) Reason for share reacquisition and movements in the number of the Company’s treasury shares are as follows:

Shares held by	Reason for reacquisition		September 30, 2015 (in thousands of shares)	September 30, 2015 (in thousands of shares)
			Number of shares 981 $	Book value 33,255 $
Altek Corporation	Repurchase shares under the R.O.C Company Law section 187 and the Enterprises Mergers and Acquisitions Act section 12

December 31, 2014 ： None.

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September 30, 2014

		September 30, 2014	September 30, 2014
Shares held by	Reason for reacquisition	(in thousands of shares)
		Number of shares 5,775	Bookvalue 192,026 $
Altek Corporation	To be reissued to employees

b) Pursuant to the R.O.C. Securities and Exchange Law, the number of shares bought back as treasury share should not exceed 10% of the number of the Company’s issued and outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realised capital surplus.
c) Pursuant to the R.O.C. Securities and Exchange Law, treasury shares should not be pledged as collateral and is not entitled to dividends before it is reissued.
d) Pursuant to the R.O.C. Securities and Exchange Law, treasury shares should be reissued to the employees within three years from the reacquisition date and shares not reissued within the three-year period are to be retired. Treasury shares to enhance the Company’s credit rating and the stockholders’ equity should be retired within six months of acquisition.
e) The cancellation of treasury shares was approved by the Board of Directors as resolved on November 4, 2013, amounting to $166,250 consisting of 5 million shares. The capital reduction date was on February 11, 2014, and the registration for cancellation of treasury shares had been completed.
f) The cancellation of treasury shares was approved by the Board of Directors as resolved on September 22, 2014, amounting to $192,026 consisting of 5,775 thousand shares. The capital reduction date was on October 7, 2014, and the registration for cancellation of treasury shares had been completed.
C. On June 19, 2014, the stockholders have resolved to reduce capital by $1,182,475, by eliminating 118,247,496 shares (including elimination of 2,475,000 treasury shares as a result of the cash capital reduction) and 300 shares out of every thousand shares. The capital reduction ratio was approximately 30% and $3 (in dollars) refund for each share. After the capital reduction, the amount of the Company's issued shares was 275,910,825 shares with a par value of $10 (in dollars), and the paid-in capital was $2,759,108. The capital reduction date was set on September 4, 2014, and the registration for the capital reduction had been completed. The amount of share capital that was refunded amounted to $1,157,725 (shown as ‘other payables’). On September 22, 2014, the Board of Directors has resolved the distribution date of return of share capital as October 24, 2014.
D. For the nine-month period ended September 30, 2015, the Company issued 118 thousand shares for employee stock options exercised and the registration for issuance had been completed.

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E. Under the Enterprise Merger and Acquisition Act, in consideration of business strategies and division of services to increase competitiveness and operational performance, the Company decided to spin-off its medical electronics segment amounting to $400,000 to swap for common shares of Altek Biotechnology Corporation at $10 per share and obtained 40 million shares. The split was resolved by the shareholders on June 2, 2015. On September 8, 2015, the Board of Directors has proposed to set the spin-off date as January 4, 2016.
(15) Capital surplus
Pursuant to the R.O.C. Company Law, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Law requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

the legal reserve is insufficient.
Sharepremium At January 1, 2015 2,012,075 $ Employee stock options expenses - Employee stock options exercised 3,758 Cash dividends from capital surplus 135,127) ( At September 30, 2015 1,880,706 $ Sharepremium At January 1, 2014 1,903,779 $ Employee stock options expenses - Employee stock options exercised 188,687 Cancellation of treasury shares 37,377) ( At September 30, 2014 2,055,089 $	Employee stock options	Difference between proceeds from disposal of subsidiaryand book value Total 958 $ 2,063,551 $ - 2,451 - 2,891 - 135,127) ( 958 $ 1,933,766 $ Difference between proceeds from disposal of subsidiaryand book value Total 958 $ 2,028,690 $ - 5,614 - 108,442 - 37,430) ( 958 $ 2,105,316 $
	50,518 $ 2,451 867) ( - 52,102 $ Employee stock options
	123,953 $ 5,614 80,245) ( 53) ( 49,269 $

(16) Retained earnings

A.According to the Company’s Articles of Incorporation, the annual earnings, if any, shall first be used to pay all taxes and offset prior years’ operating losses and then 10% of the remaining amount shall be set aside as legal reserve. Special reserve shall be set aside in accordance with the rules set forth in the Securities and Exchange Law, and remaining amount shall be distributed in the following order:
(a) allocating 10% to 20% as employees’ bonus;

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(b)allocating 2% as directors’ and supervisors’ remuneration;
(c)dividends

Distributing the remaining amount as common stockholders’ dividends in accordance with the resolution adopted by the Board of Directors and approved at the stockholders’ meeting. Employees who are entitled to stock bonus include employees of subsidiaries of companies which the Company holds more than 50% of shares.

B. The amount of dividends appropriated is based on the Company’s current year’s net income and prior years’ retained earnings, taking into account the Company’s financial structure and future operating plans. The distribution ratio of cash dividends to stock dividends is based on the Company’s funding status, diluted earnings per share and other factors. According to the dividend policy adopted by the Board of Directors, cash dividends shall account for at least 20% of the total dividends distributed. Dividends appropriation shall be resolved by the stockholders at the stockholders’ meeting.
C. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the balance of the reserve exceeds 25% of the Company’s paid-in capital.
D. a) In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.
b) The amounts previously set aside by the Company as special reserve on initial application of IFRSs in accordance with Jin-Guan-Zheng-Fa-Zi Letter No. 1010012865, dated April 6, 2012, shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently. Such amounts are reversed upon disposal or reclassified if the assets are investment property of land, and reversed over the use period if the assets are investment property other than land.
E. The appropriation of 2014 earnings had been resolved at the stockholders’ meeting on June 2, 2015. The appropriation of 2013 losses had been resolved at the stockholders’ meeting on June 19, 2014. Details are summarized below:

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Legal reserve Special reserve Cash dividends	Dividends per share Dividends per share Amount (in NT dollars) Amount (in NT dollars) 27,533 $ - - $ - - - 196,811) ( - 135,127 0.5 - - 162,660 $ 196,811) ($ 2014 2013		2013
	Amount 27,533 $ - 135,127 162,660 $

The appropriation of 2014 earnings was the same as that approved by the Board of Directors on April 20, 2015. The deficit compensation for 2013 was the same at that approved by the Board of Directors on March 21, 2014. The additional paid-in capital was returned to stockholders as resolved at the stockholders’ meeting on June 2, 2015. Furthermore, on June 2, 2015, the shareholders resolved to return capital surplus of $135,127 (approximately $0.5 per share) to shareholders on the nature of capital contribution.

F. The information relating to employees’ remuneration (bonuses) and directors’ and supervisors’ remuneration, please refer to note 6(22).

(17) Other equity items

remuneration, please refer to note 6(22). Other equity items
Other income 2015 At January 1 481,868 $ Currency translation differences: Group 105,867 Associates 1,278) ( At September 30 586,457 $ For the three-month period endedSeptember30,2015 Rental revenue $ - Dividend income 267 Interest income: Interest income from bank deposits 12,429 Others 17 Other income - others 8,345 21,058 $	2014
	27,904 $ 113,967 3,605
	145,476 $
	For the three-month period endedSeptember30,2014 $ 3,929 572 13,012 19 16,676 34,208 $

(18) Other income

~30~

Rental revenue Dividend income Interest income: Interest income from bank deposits Others Other income - others (Note)	For the nine-month period endedSeptember30,2015 $ 5,822 267 37,907 50 32,858 76,904 $	For the nine-month period endedSeptember30,2014
		$ 12,766 572 55,364 59 69,835
		138,596 $

Note: The Company was allotted shares and warrants of Kodak US, due to the property distribution plan of Kodak US. The Company recognized this transaction as other income for the nine-month periods ended September 30, 2015 and 2014.

(19) Other gains and losses

Other gains and losses
	For the three-month period			For the three-month period
		endedSeptember30,2015			endedSeptember30,2014
Net gain on financial assets at
fair value through profit or loss	$		417	$		230
Net currency exchange gains (loss)			5,081	(		5,161)
Gain on disposal of property, plant
and equipment			3,469			57
Other expenses	(		404)			4
		$	8,563	($		4,870)
		For the nine-month period			For the nine-month period
		endedSeptember30,2015			endedSeptember30,2014
Net loss on financial assets at
fair value through profit or loss	($		11,578)	($		4,289)
Net currency exchange gain			8,312			8,826
Gain on disposal of property, plant
and equipment			3,469			2,136
Other expenses	(		485)	(		1,621)
	($		282)		$	5,052

(20) Finance costs

Interest expense:

Bank borrowings

For the three-month period For the three-month period ended September 30, 2015 ended September 30, 2014 $ 5,217 $ 6,217

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(21) (22)	Expenses by nature Employee benefit expenses Interest expense: Bank borrowings Employee benefit expenses Depreciation charges on property, plant and equipment Amortisation charges on intangible assets Employee benefit expenses Depreciation charges on property, plant and equipment Amortisation charges on intangible assets Wages and salaries Employee stock options Labor and health insurance fees Pension costs Other personnel expenses	For the nine-month period ended September30,2015 14,802 $ For the three-month period ended September 30,2015 442,129 $ 112,219 3,690 558,038 $ For the nine-month period ended September 30,2015 1,229,871 $ 311,605 10,808 1,552,284 $ For the three-month period ended September30,2015 384,044 $ 712 20,266 22,515 14,592 442,129 $	For the nine-month period ended September30,2014 13,332 $ For the three-month period ended September 30,2014 407,325 $ 93,227 4,660 505,212 $ For the nine-month period ended September 30,2014 1,265,225 $ 278,052 13,677 1,556,954 $ For the three-month period ended September30,2014 352,636 $ 1,662 19,102 18,906 15,019 407,325 $	For the nine-month period ended September30,2014 13,332 $ For the three-month period ended September 30,2014 407,325 $ 93,227 4,660 505,212 $ For the nine-month period ended September 30,2014 1,265,225 $ 278,052 13,677 1,556,954 $ For the three-month period ended September30,2014 352,636 $ 1,662 19,102 18,906 15,019 407,325 $

				352,636 $ 1,662 19,102 18,906 15,019
				407,325 $

~32~

Wages and salaries Employee stock options Labor and health insurance fees Pension costs Other personnel expenses	For the nine-month period ended September30,2015 1,060,307 $ 2,451 59,855 64,533 42,725 1,229,871 $	For the nine-month period ended September30,2014
		1,087,505 $ 5,614 60,962 62,260 48,884
		1,265,225 $

A.According to the Articles of Incorporation of the Company, when distributing earnings, the Company shall distribute bonus to the employees and pay remuneration to the directors and supervisors that account for 10%~20% and 2%, respectively, of the total distributed amount. However, in accordance with the Company Act amended on May 20, 2015, a company shall distribute employee remuneration, based on the current year's profit condition, in a fixed amount or a proportion of profits. If a company has accumulated deficit, earnings should be channeled to cover losses. Aforementioned employee remuneration could be paid by cash or stocks. Specifics of the compensation are to be determined in a board meeting that registers two-thirds of directors in attendance, and the resolution must receive support from half of participating members. The resolution should be reported to the shareholders' meeting. Qualification requirements of employees, including the employees of subsidiaries of the company meeting certain specific requirements, entitled to receive aforementioned stock or cash may be specified in the Articles of Incorporation.
B.For the three-month and nine-month periods ended September 30, 2015 and 2014, employees’ remuneration (bonus) was accrued at $33,834, $4,093, $39,673 and $33,069, respectively; while directors’ and supervisors’ remuneration was accrued at $4,511, $545, $5,290 and $4,409, respectively. The aforementioned amounts were recognized in salary expenses. The expenses recognised for the year 2015 were accrued based on the earnings of current year; the expenses recognised for the year 2014 were accrued based on the net income for 2014 and the percentage specified in the Articles of Incorporation of the Company, taking into account other factors such as legal reserve.
C.The 2013 directors’ and supervisors’ remuneration and employees’ cash bonus as appropriated during the stockholders’ meeting on June 2, 2015 were $4,956 and $37,170, respectively. Employees’ bonus and directors’ and supervisor’ remuneration for 2014 as resolved by the stockholders were in agreement with those amounts recognised in the 2014 financial statements.
Information about the appropriation of employees’ bonus and directors’ and supervisors’ remuneration by the Company as proposed by the Board of Directors and resolved by the

~33~

stockholders will be posted in the “ Market Observation Post System ” at the website of the Taiwan Stock Exchange.

(23) Income tax

A.Income tax expense

a) Components of income tax expense:

b) The income tax charged to equity
Current tax:
Current tax on profits for the
period
Adjustments in respect of prior
years
Total current tax
Deferred tax:
Origination and reversal of
temporary differences
Total deferred tax
Income tax (benefit) expense
Current tax:
Current tax on profits for the
period
Adjustments in respect of prior
years
Total current tax
Deferred tax:
Origination and reversal of
temporary differences
Total deferred tax
Income tax expense
Translation differences of
foreign operations

during the period is as follows:
For the three-month period For the three-month period
endedSeptember30,2015
endedSeptember30,2014
46,724
$ 22,156
$ -
1
46,724
22,157
50,343)
(
13,440)
(
50,343)
(
13,440)
(
3,619)
($ 8,717
$ For the nine-month period
For the nine-month period
endedSeptember30,2015
endedSeptember30,2014
70,318
$ 49,750
$ 7,344)
(
1,266)
(
62,974
48,484
56,894)
(
440)
(
56,894)
(
440)
(
6,080
$ 48,044
$ For the three-month period
For the three-month period
endedSeptember30,2015
endedSeptember30,2014
61,332
$ 28,874
$

~34~

	For the nine-month period For the nine-month period
	endedSeptember30,2015 endedSeptember30,2014
	Translation differences of
	foreign operations 21,422 $ 24,081 $
A.	As of September 30, 2015, the Company’s income tax returns through 2013 have been
	assessed and approved by the Tax Authority.
B.	Unappropriated retained earnings:
	September30,2015 December31,2014 September30,2014
	Earnings generated in and
	after 1998 3,042,189 $ 2,964,969 $ 3,028,684 $
	As of September 30, 2015, December 31, 2014 and September 30, 2014, the balance of the
	imputation tax credit account was $258,843, $240,479 and $237,250, respectively. The
	creditable tax rate was 9.24% for 2014 and the estimated creditable tax rate is 8.51% for 2015.

(24) Earnings per share

For the three-monthperiod ended September 30,2015	For the three-monthperiod ended September 30,2015	For the three-monthperiod ended September 30,2015
Amount after tax 196,782 $ 196,782 $ - 196,782 $	Weighted average number of ordinary shares outstanding (shares in thousands) 269,870 1,267 271,137	Earnings per share (in dollars)
		0.73 $
		0.73 $

~35~

For the three-month period ended September 30, 2014

	For the three-monthperiod ended September 30,2014	For the three-monthperiod ended September 30,2014	r 30,2014
Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees’ bonus Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees stock options Employees’ bonus Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Weighted average number of ordinary shares outstanding Earnings per share Amount after tax (shares in thousands) (in dollars) 30,318 $ 351,932 0.09 $ 30,318 $ - 1,284 30,318 $ 353,216 0.09 $ For the nine-monthperiod ended September 30,2015		Earnings per share (in dollars)
			0.09 $
			0.09 $
	Amount after tax 239,880 $ 239,880 $ - - 239,880 $	Weighted average number of ordinary shares outstanding (shares in thousands) 270,087 4 1,267 271,358	Earnings per share (in dollars)
			0.89 $
			0.88 $

~36~

For the nine-month period ended September 30, 2014

Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employee stock options Employees’ bonus Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Amount after tax 244,958 $ 244,958 $ - - 244,958 $	Weighted average number of ordinary shares outstanding (shares in thousands) 371,537 22 1,284 372,843	Earnings per share (in dollars)
			0.66 $
			0.66 $

(25) Transactions with non-controlling interest

For the nine-month period ended September 30, 2014, the Group acquired an additional 0.06% shares of its subsidiary—Altek Autotronics Corporation for a total cash consideration of $208. This transaction resulted in a decrease in the non-controlling interest by $208. The effect of the change in ownership interests in Altek Autotronics Corporation on the equity attributable to owners of the parent for the nine-month period ended September 30, 2014 is shown below:

Carrying amount of non-controlling interest acquired Consideration paid to non-controlling interest Capital surplus - difference between proceeds on acquisition of or disposal of equity interest in a subsidiary and its carrying amount	September30,2014
	208 $ 208) ( - $

(26) Operating leases

The Group acquired a Taipei building for operating use. However, this building is still under a certain unexpired lease agreement. Contingent rents of $6,752, $11,471 and $21,242 were recognized for these leases in profit or loss for the three-month periods ended September 30, 2014 and nine-month periods ended September 30, 2015 and 2014, respectively. The future aggregate minimum lease payments receivable under non-cancellable operating leases are as follows:

~37~

September 30, 2015: None

September 30, 2015: None
December 31,2014	September 30,2014
Not more than 1 year 12,045 $	18,067 $
The Group leases office buildings for operational needs under non-cancellable operating lease
agreements. These lease terms are between 2015 and 2027. Most of the	lease agreements are
renewable at the market price at the end of the lease period. The future aggregate minimum lease
payments receivable under non-cancellable operating leases are as follows:

Not more than 1 year More than 1 year but not more than 5 years Over 5 years	September30,2015 18,566 $ 16,664 26,798 62,028 $	December31,2014 20,573 $ 27,083 29,570 77,226 $	September30,2014
			21,460 $ 31,635 30,494
			83,589 $

(27) Supplemental cash flow information

A.Investing activities with partial cash payments

Acquisitions of property, plant, and equipment Add: property and equipment and construction billings payable at beginning of period Less: property and equipment and construction billings payable at end of period Cash paid Acquisitions of intangible assets Add: intangible billings payable at beginning of period Less: intangible billings payable at end of period Cash paid	For the nine-month period endedSeptember30,2015	For the nine-month period endedSeptember30,2015	For the nine-month period endedSeptember30,2014
	104,535 $ 8,332 66,210) ( 46,657 $ For the nine-month period ended September30,2015		132,064 $ 8,848 35,441) ( 105,471 $ For the nine-month period ended September30,2014
		2,676 $ 6,163 - 8,839 $	3,663 $ 6,738 4,868) ( 5,533 $

B.Financing activities with no cash flow effects

~38~

Proceeds from capital reduction Cash dividends declared Additional paid-in capital returned to stockholders	For the nine-month period endedSeptember30,2015 $ - 135,127 135,127 270,254 $	For the nine-month period endedSeptember30,2014
		$ 1,157,725 - - 1,157,725 $

7. RELATED PARTY TRANSACTIONS

(1)Significant transactions and balances with related parties

No significant related party transactions.

(2)Key management compensation

management compensation
Salaries and other short-term employee benifits Post-employment benefits Share-based payments Salaries and other short-term employee benefits Post-employment benefits Share-based payments	For the three-month period ended September 30,2015 8,322 $ 216 256 8,794 $ For the nine-month period ended September 30,2015	For the three-month period ended September 30,2014
		4,629 $ 108 362 5,099 $ For the nine-month period ended September 30,2014
	25,721 $ 648 802 27,171 $	14,620 $ 324 1,088 16,032 $

8. PLEDGED ASSETS

None.

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

(1) Contingencies

The GUC (General Unsecured Creditor Trustee) of Eastman Kodak Company (hereunder ‘Kodak’) filed a lawsuit against the Company in the United States Bankruptcy Court for the Southern District of New York, asserting certain payments in 49.2 million transactions prior to Kodak’s bankruptcy were out of ordinary course of business. The Company vigorously disputed GUC’s claim, and insists that the transactions had always been made in the ordinary course of business with Kodak.

~39~

According to the press release, GUC has sued over 700 of Kodak’s suppliers, trying to require marginal settlement fees from the suppliers, as it is a regular ploy of US bankruptcy lawyers in bankruptcy cases. For the protection of shareholders’ interests, the Company did not accept GUC’s settlement proposal. The GUC’s assertion has now been heard by the court, and this case does not have a significant impact on the Company’s business and financial performance.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

On November 13, 2015, the Board of Directors of the Company has resolved to issue employee restricted stock of 2.5 million shares for no consideration with a par value of NT$10 per share, amounting to NT$25 million.

12. OTHERS

(1) Capital risk management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends, return capital or issue new shares to achieve the optimal capital structure.

(2) Financial instruments

A. Fair value information of financial instruments

The carrying amounts of financial instruments (including cash and cash equivalents, notes receivable, accounts receivable, other receivables, refundable deposits (shown as non-current assets), short-term borrowings, notes payable, accounts payable, other payables, and guarantee deposits received (shown as non-current liabilities)) are approximate to their fair value. The fair value information of financial instruments measured at fair value is provided in Note 12(3).

B.Financial risk management policies
a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial position and financial performance.
b) Risk management is carried out by a central treasury department (Group treasury) under policies approved by the Board of Directors. Group treasury identifies, evaluates and hedges financial risks in close cooperation with the Group’s operating units, as well as provides written principles for overall risk management and policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative

~40~

financial instruments and non-derivative financial instruments, and investment of excess liquidity.

C.Significant financial risks and degrees of financial risks
a) Market risk
- Foreign exchange risk
- i.The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the USD. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and net investments in foreign operations.
- ii.Management has set up a policy to require that group companies hedge their entire foreign exchange risk exposure with Group treasury. Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated in a currency that is not the entity’s functional currency.
- iii.The Group has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk. Currency exposure arising from the net assets of the Group’s foreign operations is managed primarily through transactions denominated in the relevant foreign currencies.
- iv.The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

	September30,2015	September30,2015	September30,2015	September30,2015	September30,2015
Foreign Currency Amount (In thousands)	Exchange Rate	Book Value (NTD)	SensitivityAnalysis
			Extent of Variation	Effect on Profit or (Loss)	Effect on Other Comprehensive Income(Loss)
USD 117,752 USD 70,808 USD 5,058 USD 109,928 USD 67,474	32.870 6.3613 32.870 32.870 6.3613	3,870,511 $ 450,428 166,269 $ 3,613,350 $ 429,222	1% 1% 1% 1% 1%	38,705 $ 4,504 - $ 36,133) ($ 4,292) (	- $ - 1,663 $ - $ -

~41~

December 31, 2014

Foreign Currency Amount (In thousands)	Exchange Rate	Book Value (NTD)	SensitivityAnalysis	SensitivityAnalysis	SensitivityAnalysis
			Extent of Variation	Effect on Profit or (Loss)	Effect on Other Comprehensive Income(Loss)
USD 116,490 USD 108,490 USD 5,672 USD 119,272 USD 96,893				36,869 $ 34,337 - $ 37,750) ($ 30,667) (	- $ - 1,795 $ - $ -
Foreign Currency Amount (In thousands)	Exchange Rate	Book Value (NTD)	SensitivityAnalysis
			Extent of Variation	Effect on Profit or (Loss)	Effect on Other Comprehensive Income(Loss)
USD 126,317 USD 117,393 USD 8,640 USD 140,314 USD 105,071	30.420 6.1525 30.420 30.420 6.1525	3,842,576 $ 722,260 262,834 $ 4,268,364 $ 646,449	1% 1% 1% 1% 1%	38,426 $ 7,223 - $ 42,684) ($ 6,464) (	- $ - 2,628 $ - $ -

v.Total exchange gain (loss), including realised and unrealised arising from significant foreign exchange variation on the monetary items held by the Group for the three-month and nine-month periods ended September 30, 2015 and 2014 amounted to $5,081, ($5,161), $8,312 and $8,826, respectively.

~42~

Interest rate risk

Interest risk arises from the changes of market interest rate causing fluctuation in financial instruments’ fair value or cash received and paid in the future.

The Group obtained short-term borrowings at fixed rates during the nine-month period ended September 30, 2015, and thus had no significant cash flow interest rate risk.

Price risk

The Group is exposed to price risk because of investments held by the Group. The Group sets limits to control the transaction volume and stop-loss amount to reduce market risk.

b) Credit risk
i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings, the utilization of credit limits is regularly monitored. Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions, as well as credit exposures to customers, including outstanding receivables and committed transactions.
ii No credit limits were exceeded during the reporting periods, and management does not expect any significant losses from non-performance by these counterparties for the nine-month periods ended September 30, 2015 and 2014.
iii.The individual analysis of financial assets that had been impaired is provided in the statement for each type of financial assets in Note 6.
iv.The credit quality information of financial assets that are neither past due nor impaired is provided in the statement in Note 6(4).
c) Liquidity risk
i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities. Such forecasting takes into consideration the Group’s debt financing plans, and compliance with internal balance sheet ratio targets.
ii. Surplus cash held by the operating entities over and above the balance required for working capital management are transferred to the Group treasury. Group treasury

~43~

invests surplus cash in interest bearing current accounts, time deposits and marketable securities, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the abovementioned forecasts.

iii. The table below analyses the Group’s non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities:

Non-derivative financial liabilities:
September 30, 2015 Short-term borrowings Accounts payable Other payables December 31, 2014 Short-term borrowings Accounts payable Other payables Guarantee deposits received September 30, 2014 Short-term borrowings Accounts payable Other payables Guarantee deposits received	Less than 1year 1,550,000 $ 2,278,308 847,057 Less than 1year 1,410,000 $ 2,933,033 530,190 6,023 Less than 1year 1,608,551 $ 2,487,318 1,709,555 6,023	Over 1year
		- $ - - Over 1year
		- $ - - - Over 1year
		- $ - - -

(3) Fair value estimation

A.The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:
Level 1:Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed beneficiary certificates, on-the-run derivative instruments with quoted market prices is included in Level 1.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

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Level 3:Unobservable inputs for the asset or liability. The fair value of the Group’s investment in equity investment without active market is included in Level 3.
B. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities at September 30, 2015, December 31, 2014 and September 30, 2014 is as follows:

September 30, 2015 Assets Recurring fair value measurements Beneficiary certificate December 31, 2014 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Beneficiary certificate September 30, 2014 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Beneficiary certificate	Level 1 334,690 $ Level 1 362,155 $ Level 1 1,257,147 $	Level 2 - $ Level 2 - $ Level 2 - $	Level3 - $ Level3 - $ Level3 - $	Total
				334,690 $
				Total
				362,155 $
				Total
				1,257,147 $

C. The methods and assumptions the Group used to measure fair value are as follows:
(a)The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

Open-end fund

Net asset Market quoted price value

~45~

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

A. Loans to others: None.
B. Provision of endorsements and guarantees to others: None.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) : Please refer to table 1.
D. Aggregate purchases or sales of the same securities reaching NT$300 million or 20% of paid-in capital or more: None.
E. Acquisition of real estate reaching NT$300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching NT$300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more: Please refer to table 2.
H. Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more: Please refer to table 3.
I. Derivative financial instruments undertaken for the nine-month period ended September 30, 2015: None.
J. Significant inter-company transactions for the nine-month period ended September 30, 2015: Please refer to table 4.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China ): Please refer to table 5.

(3) Information on investments in Mainland China

A. The related information of investments in Mainland China: Please refer to table 6.
B. Significant transactions, either directly or indirectly throught a third area, with investee companies in the Mainland Area:
For the significant purchases, sales, accounts payable and accounts receivable transactions between the Company and the investee companies in Mainland China through its subsidiaries, please refer to Note 13(1) G,H and J.

14. SEGMENT INFORMATION

(1) General information

The Group mainly operates in one segment. The chief operating decision-maker reviews the Group’s reporting to assess performance and allocate resources. The Group mainly has a single reportable segment.

(2) Segment information

The Group has a single reportable segment. The revenue from external customers, the related gain or loss, and the assets correspond with the consolidated revenue, consolidated operating income,

~46~

and consolidated assets.

(3) Reconciliation for segment income (loss), assets and liabilities

None.

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Altek Corporation and subsidiaries

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

September 30, 2015

			September 30, 2015
Table 1 Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As ofSeptember30,2015 Expressed in thousands of NTD (Except as otherwise indicated)
				Number of shares	Bookvalue	Ownership (%)	Fairvalue
Altek Corporation " " " " Altek (Kunshan) Co., Ltd. " Altek Investment Co., Ltd. Altek Autotronics Corporation Altek Biotechnology Corporation Altek Semiconductor Corporation	Gianta Co., Ltd. - Common stock Pac-line Opportunity Fund - Common stock Yung Li Investments Inc. - Common stock Hua-chuang Automobile Information Technical Center Co., Ltd. - Common stock Money Market Fund Guangdong Kingding Optical Machine Co., Ltd. CPEC Huachuang Private Equity (Kunshan) Enterprise (Limited Partnership) Money Market Fund Money Market Fund Money Market Fund Money Market Fund	Director Supervisor None None None None None None None None None	Financial assets carried at cost - non-current " " " Financial assets at fair value through profit or loss-current Financial assets carried at cost - non-current " Financial assets at fair value through profit or loss-current " " "	762,876 9,908,257 1,999,355 10,000,000 62,538 N/A N/A 434,074 22,433,158 56,051 1,156,002	10,312 $ 21,646 13,947 93,450 11,002 6,201 20,669 6,909 296,460 902 19,417	14.98% 7.06% 4.84% 2.00% N/A (Note 1) (Note 2) N/A N/A N/A N/A	10,312 $ 21,646 13,947 93,450 11,002 6,201 20,669 6,909 296,460 902 19,417

Note 1: 8% of Guangdong Kingding Optical Machine Co., Ltd.’s capital contribution. Note 2: 1% of Guangdong Kingding Optical Machine Co., Ltd.’s capital contribution.

Table 1, Page 1

Altek Corporation and subsidiaries

Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more

For the nine-month period ended September 30, 2015

Table 2 Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts receivable(payable) Expressed in thousands of NTD (Except as otherwise indicated)	Notes/accounts receivable(payable) Expressed in thousands of NTD (Except as otherwise indicated)
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
Altek Corporation Altek International Investment Co., Ltd.	Altek International Investment Co., Ltd. Altek (Kunshan) Co., Ltd.	Parent company "	Purchases Purchases	6,135,648 $ 6,394,051	99% 100%	Net 120 days Net 75 days	Approximately the same price with third parties "	Note "	3,799,640) ($ 958,493) (	100% 92%

Note: The payment term with third parties was net 60~120 days.

Table 2, Page 1

Altek Corporation and subsidiaries

Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more

September 30, 2015

Table 3 Creditor	Counterparty	Relationship with the counterparty	Balance as at September 30, 2015	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date Allowance for doubtful accounts Expressed in thousands of NTD (Except as otherwise indicated)	Amount collected subsequent to the balance sheet date Allowance for doubtful accounts Expressed in thousands of NTD (Except as otherwise indicated)
					Amount	Action taken
Altek International Investment Co., Ltd. Altek (Kunshan) Co., Ltd.	Altek Corporation Altek International Investment Co., Ltd.	Parent company Parent company	3,799,640 $ 958,493	2.36 8.97	- $ -	N/A N/A	669,430 $ 676,790	- $ -

Table 3, Page 1

Altek Corporation and subsidiaries

Table 4

Significant inter-company transactions during the reporting period

For the nine-month period ended September 30, 2015

Expressed in thousands of NTD

(Except as otherwise indicated)

Transaction

					Transaction
Companyname	Counterparty	Relationship (Note 1)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets(Note 2)
Altek Corporation " Altek International Investment Co., Ltd. "	Altek International Investment Co., Ltd. " Altek (Kunshan) Co., Ltd. "	(1) (1) (3) (3)	Purchases Accounts payable Purchases Accounts payable	6,135,648 $ 3,799,640 6,394,051 958,493	Net 120 days " Net 75 days "	65% 24% 68% 6%

Note 1: Relationship between transaction and counterparty is classified into the following categories:

(1) Parent company to subsidiary.
(2) Subsidiary to parent company.
(3) Subsidiary to subsidiary.

Note 2: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Note 3: The Company may decide to disclose or not to disclose transaction details in this table based on the Materiality Principle.

Table 4, Page 1

Altek Corporation and subsidiaries

Information on investees

Expressed in thousands of NTD (Except as otherwise indicated)

For the nine-month period ended September 30, 2015

Table 5

Investor	Investee	Location	Main business activities	Initial invest	ment amount	Shares he	ld as at September	30,2015	Net profit (loss) of the investee for the nine-month period ended September 30,2015	Investment income (loss) recognised by the Company for the nine-month period ended September 30,2015	Footnote
				Balance as at September 30,2015	Balance as at December 31,2014	Number of shares	Ownership (%)	Book value
Altek Corporation " " " " Altek International Investment Co., Ltd. " Altek Semiconductor (Cayman) Co., Ltd.	Altek International Investment Co., Ltd. Altek Japan Corporation Altek Investment Co., Ltd. Altek Autotronics Corporation Altek Biotechnology Corporation Altek Lab Inc. JinJing Optical Technology Co., Ltd. Altek Semiconductor Corporation	British Virgin Islands Japan Republic of China Republic of China Republic of China U.S.A. Samoa Republic of China	Investment and general business operations Sale and design of optical instruments Investment Research design, manufacture and sales of car electronic components Research and development, manufacture and sales of biotechnology Design service Investment and general business operations Research design and sales of ASIC	3,086,363 $ 2,869 50,000 177,500 1,000 120,953 115,045 200,000	3,086,363 $ 2,869 50,000 177,500 1,000 120,953 115,045 200,000	94,333,839 1,000 5,000,000 21,300,000 100,000 11,311,875 3,500,000 20,000,000	100% 100% 100% 98.02% 100% 100% 23.33% 100%	9,935,235 $ 11,840 26,292 333,254 955 61,467 24,771 240,557	76,168 $ 126) ( 48) ( 34,060 45) ( 1,650 49,208) ( 123,156	76,168 $ 126) ( 48) ( 33,386 45) ( 1,650 10,739) ( 123,156	Note 1 Note 2

Note 1: Ownership (%) on Altek Autotronics Corporation held by Altek Corporation and Altek Investment Co., Ltd. are 88.75% and 9.27%, respectively. Note 2: Common stock of 9,311,875 shares and preferred stock of 2,000,000 shares.

Table 5, Page 1

Altek Corporation and subsidiaries

Information on investments in Mainland China

Table 6

For the nine-month period ended September 30, 2015

Expressed in thousands of NTD

(Except as otherwise indicated)

Investee in Mainland China	Main business activities	Paid-incapital	Investment method `（`Note1`）`	Accumulated amount of remittance from Taiwan to Mainland China as of January1,2015	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30, 2015	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30, 2015	Accumulated amount of remittance from Taiwan to Mainland China as of September30,2015	Net profit (loss) of investee for the ninie-month period ended September 30,2015	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the nine-month period ended September 30,2015	Book value of investments in Mainland China as of September 30,2015	Accumulated amount of investment income remitted back to Taiwan as of September 30, 2015
					Remitted to Mainland China	Remitted back to Taiwan
Altek (Kunshan) Co., Ltd. (Note 2) Altek EMS (Kunshan) Co., Ltd. (Note 3) Altek Imaging Technology (Shanghai) Limited Altek Trading (Shanghai) Limited Kinko Optical (Suzhou) Co., Ltd. Phoenix Optical (Shanghai) Co., Ltd. Beijing Altek Image Communication Technology Co., Ltd.	Manufacture and sale of digital still cameras and its accessories Manufacture and sale of related engineering services Manufacture and sale of optical components Wholesale, import and export of digital cameras, digital video cameras and their associated accessories Manufacture and sale of optical components Manufacturing and marketing of digital cameras and its key components, photo sensor and optoelectronic equipment Sales of digital camera, cell phone and related accessories and supporting products	1,630,352 $ 164,350 95,323 279,395 493,050 520,102 33,692	2 2 2 2 2 2 2	1,479,150 $ 298,558 95,323 279,395 115,045 291,374 -	- $ - - - - - -	- $ - - - - - -	1,479,150 $ 298,558 95,323 279,395 115,045 291,374 -	27,020 $ 18,795 1,773 7,955 ( 46,547) ( 13,526) -	100% 100% 100% 100% 23.33% 40% 100%	27,020 $ 18,795 1,773 7,955 ( 10,859) - -	4,352,455 $ 831,922 52,874 332,404 43,199 141,498 7	- $ - - - - - -

Table 6, Page 1

Information on investments in Mainland China

Altek Corporation and subsidiaries

For the nine-month period ended September 30, 2015

Table 6

Expressed in thousands of NTD

(Except as otherwise indicated)

Investee in Mainland China	Investment method `（`Note1`）`	Accumulated amount of remittance from Taiwan to Mainland China as of January1,2015	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30, 2015	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30, 2015	Accumulated amount of remittance from Taiwan to Mainland China as of September30,2015	Net profit (loss) of investee for the ninie-month period ended September 30,2015	Ownership held by the Company (direct or indirect)	Book value of investments in Mainland China as of September 30,2015	Accumulated amount of investment income remitted back to Taiwan as of September 30, 2015
			Remitted to Mainland China	Remitted back to Taiwan
Altek Precision (Kunshan) Co., Ltd. Design, manufacture and sales of digital camera parts 453,606 $ 2 Altek Optical Technology (Kunshan) Co., Ltd. Manufacture and sales of digital camera and its accessories and optical components 493,050 2 Note 1: Investment methods are classified into the following three categories: (1)Directly invest in a company in Mainland China. (2)Through investing in an existing company in the third area,which then investee (3)Others. Note 2: Including retained earnings capitalized of US$4,600 (In thousand of US dollars). Note 3: Including retained earnings capitalized of US$3,600 (In thousand of US dollars). Companyname Accumulat Mainla		453,606 $ - $ 493,050 - d in the investee in Mainland China. ed amount of remittance from Taiwan to nd China as ofSeptember30,2015		- $ - Investme Commissiono	453,606 $ 493,050 nt amount approved by the In ftheMinistry of EconomicA	1,702) ($ ( 61,173) vestment ffairs (MOEA)	100% 1,702) ($ 100% ( 61,173) Ceiling on investments i by theInvestment C	$ 174,130 163,201 n Mainland China ommissionof MO	$ - - imposed EA
Altek Corporation	$	3,505,501		$		4,698,898	$		-

Note:According to “REGULATIONS GOVERNING THE APPROVAL OF INVESTMENT OR TECHNICAL IN MAINLAND CHINA” on August 29, 2008, Altek Corporation obtained the approval

from the Industrial Development Bureau of Ministry of Economics Affairs issued to Headquarters, so there is no need to compute the ceiling amount of the Company.

Table 6, Page 2

AI assistant

Altek — Interim / Quarterly Report 2015

52290_rns_2015-11-16_2ea1a811-fb0a-499b-b8c3-f653c75f65f4.pdf

ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

REVIEW REPORT OF INDEPENDENT

REVIEW REPORT OF INDEPENDENT ACCOUNTANTS TRANSLATED FROM CHINESE

To Altek Corporation

ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIIVE INCOME

ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIIVE INCOME

ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

ALTEK CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2015 AND 2014

1. HISTORY AND ORGANIZATION

2. THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORIZATION

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(3) IFRSs issued by IASB but not yet endorsed by the FSC

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Compliance statement

(2) Basis of preparation

(3) Basis of consolidation

B. Subsidiaries included in the consolidated financial statements:

(4) Employee benefits

(5) Income tax

5. CRITICALACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF

ASSUMPTION UNCERTAINTY

(2) Critical accounting estimates and assumptions:

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash

(2) Financial assets at fair value through profit or loss

(3) Financial assets measured at cost

(4) Accounts receivable

(6) Investments accounted for under the equity method

(7) Property, plant and equipment

(8) Intangible assets

(10) Short-term borrowings

(11) Pensions

(12) Share-based payments

(13) Provisions

(14) Share capital

B.Treasury shares

September 30, 2014

(16) Retained earnings

(17) Other equity items

(18) Other income

(19) Other gains and losses

(20) Finance costs

(23) Income tax

A.Income tax expense

(25) Transactions with non-controlling interest

(26) Operating leases

September 30, 2015: None

(27) Supplemental cash flow information

7. RELATED PARTY TRANSACTIONS

(1)Significant transactions and balances with related parties

(2)Key management compensation

8. PLEDGED ASSETS

None.

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

(1) Contingencies

10. SIGNIFICANT DISASTER LOSS

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

12. OTHERS

(1) Capital risk management

(2) Financial instruments

Interest rate risk

Price risk

(3) Fair value estimation

Open-end fund

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

(2) Information on investees

Altek Interim / Quarterly Report 2015