China Steel Corporation and Subsidiaries

Consolidated Financial Statements for the Six Months Ended June 30, 2015 and 2014 and Independent Auditors' Review Report


June 30, 2015	June 30, 2014	June 30, 2014

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

			For the Three Months Ended June 30				For the Six Months Ended June 30
	2015		2014 (Restated)		2015		2014 (Restated)
	Amount	%	Amount	%	Amount	%	Amount	%
OPERATING REVENUES (Notes 10, 23, 26 and 32)	\$ 73,562,673	100	\$ 92,161,647	100	\$ 154,366,375	100	\$ 184,577,177	100
OPERATING COSTS (Notes 3, 10, 13 and 32)	66,305,252	90	81,736,277	89	137,243,952	89	166,041,739	90
GROSS PROFIT	7,257,421	10	10,425,370	11	17,122,423	11	18,535,438	10
UNREALIZED GAIN ON TRANSACTIONS WITH ASSOCIATES	(89)	-	-	-	(89)	-	-	-
REALIZED GROSS PROFIT	7,257,332	10	10,425,370	11	17,122,334	11	18,535,438	10
OPERATING EXPENSES (Note 3) Selling and marketing expenses	1,154,797	2	1,202,582	1	2,392,811	1	2,476,805	1
General and administrative expenses	1,692,996	2	1,762,309	2	3,396,502	2	3,440,382	2
Research and development expenses	481,471	1	513,828	1	993,174	1	953,976	1
Total operating expenses	3,329,264	5	3,478,719	4	6,782,487	4	6,871,163	4
PROFIT FROM OPERATIONS	3,928,068	5	6,946,651	7	10,339,847	7	11,664,275	6
NON-OPERATING INCOME AND EXPENSES Other income (Notes 27 and 32) Other gains and losses (Notes 10, 27and 32) Finance costs (Note 27) Share of the profit of associates (Note 15)	621,881 930,385 (911,313) (1,757)	1 1 (1) -	715,788 (125,179) (989,940) 65,956	1 - (1) -	983,879 927,367 (1,819,770) 175,260	1 - (1) -	1,327,916 272,712 (1,908,501) 321,958	1 - (1) -
Total non-operating income and expenses	639,196	1	(333,375)	-	266,736	-	14,085	-
PROFIT BEFORE INCOME TAX	4,567,264	6	6,613,276	7	10,606,583	7	11,678,360	6
INCOME TAX (Notes 3, 4 and 28)	1,251,303	1	923,766	1	2,495,993	2	1,717,848	1
NET PROFIT FOR THE PERIOD	3,315,961	5	5,689,510	6	8,110,590	5	9,960,512	5

(Continued)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

			For the Three Months Ended June 30				For the Six Months Ended June 30
	2015		2014 (Restated)		2015		2014 (Restated)
	Amount	%	Amount	%	Amount	%	Amount	%
OTHER COMPREHENSIVE INCOME (Notes 10, 15, 16, 25 and 28) Exchange differences on
translating foreign operations Unrealized gain (loss) on available-for-sale	\$ (564,097)	(1)	\$ (619,121)	-	\$ (2,053,399)	(1)	\$ 253,621	-
financial assets The effective portion of gains and losses on hedging instruments in a	(1,281,837)	(2)	916,978	1	(1,018,020)	(1)	933,409	1
cash flow hedge Share of the other comprehensive income of	(24,077)	-	(93,719)	-	(213,802)	-	6,626	-
associates Income tax benefit (expense) relating to items that may be reclassified subsequently	(120,944)	-	176,559	-	478,420	-	49,803	-
to profit or loss Other comprehensive income for the	12,595	-	29,367	-	47,017	-	(3,096)	-
period, net of income tax	(1,978,360)	(3)	410,064	1	(2,759,784)	(2)	1,240,363	1
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	\$ 1,337,601	2	\$ 6,099,574	7	\$ 5,350,806	3	\$ 11,200,875	6
NET PROFIT ATTRIBUTABLE TO: Owners of the Corporation	\$ 2,849,395	4	\$ 5,145,595	5	\$ 8,375,666	5	\$ 8,766,648	5
Non-controlling interests	466,566 \$ 3,315,961	1 5	543,915 \$ 5,689,510	1 6	(265,076) \$ 8,110,590	- 5	1,193,864 \$ 9,960,512	- 5
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the Corporation Non-controlling interests	\$ 1,339,583 (1,982)	2 -	\$ 5,544,250 555,324	6 1	\$ 6,464,436 (1,113,630)	4 (1)	\$ 9,771,460 1,429,415	5 1
	\$ 1,337,601	2	\$ 6,099,574	7	\$ 5,350,806	3	\$ 11,200,875	6
EARNINGS PER SHARE (Note 29) Basic Diluted	\$ 0.18 \$ 0.18		\$ 0.33 \$ 0.33		\$ 0.54 \$ 0.54		\$ 0.57 \$ 0.56

The accompanying notes are an integral part of the consolidated financial statements. (Concluded)

(With Deloitte & Touche review report dated August 12, 2015)

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In Thousands of New Taiwan Dollars, Except Dividends Per Share) (Reviewed, Not Audited)

						Equity Attributable to Owners of the Corporation
		Share Capital			Retained Earnings		Differences on Translating Exchange	Other Equity Gain (Loss) on Available-for- Unrealized	Portion of Gains Instruments in and Losses on The Effective Hedging			Attributable to Total Equity
	Ordinary Shares	Preference Shares	Capital Surplus	Legal Reserve	Special Reserve	Unappropriated Earnings	Operations Foreign	sale Financial Assets	a Cash Flow Hedge	Total Other Equity	Treasury Shares	Owners of the Corporation	Non-controlling Interests	Total Equity
BALANCE AT JANUARY 1, 2015	\$ 157,348,610	382,680 \$	\$ 37,217,876	\$ 56,957,880	\$ 27,086,283	\$ 24,125,515	732,469 \$	9,283,354 \$	146,192 \$	\$ 10,162,015	\$ (8,587,461)	\$ 304,693,398	\$ 29,994,473	\$ 334,687,871
Effect of retrospective application and retrospective restatement (Note 3)	-	-	-	-	-	(18,800)	-	-	-	-	-	(18,800)	(24,837)	(43,637)
BALANCE AT JANUARY 1, 2015 AS RESTATED	157,348,610	382,680	37,217,876	56,957,880	27,086,283	24,106,715	732,469	9,283,354	146,192	10,162,015	(8,587,461)	304,674,598	29,969,636	334,644,234
Appropriation of 2014 earnings (Note 25) Special reserve Legal reserve	- -	- -	- -	2,216,027 -	- 47,049	(2,216,027) (47,049)	- -	- -	- -	- -	- -	- -	- -	- -
Cash dividends to ordinary shareholders - NT\$1.0 per share	-	-	-	-	-	(15,734,861)	-	-	-	-	-	(15,734,861)	-	(15,734,861)
shareholders - NT\$1.4 per share Cash dividends to preference Reversal of special reserve	- -	- -	- -	- -	(18) -	(53,575) 18	- -	- -	- -	- -	- -	(53,575) -	- -	(53,575) -
Net profit (loss) for the six months ended Other comprehensive income for the six months ended June 30, 2015, net of June 30, 2015	-	-	-	-	-	8,375,666	-	-	-	-	-	8,375,666	(265,076)	8,110,590
income tax	-	-	-	-	-	-	(819,628)	(919,759)	(171,843)	(1,911,230)	-	(1,911,230)	(848,554)	(2,759,784)
Disposal of the Corporation's shares held Total comprehensive income for the six months ended June 30, 2015	-	-	-	-	-	8,375,666	(819,628)	(919,759)	(171,843)	(1,911,230)	-	6,464,436	(1,113,630)	5,350,806
Adjustment of non-controlling interests Adjustment of other equity by subsidiaries	- - -	- - -	(707) - 29,688	- - -	- - -	- - -	- - -	- - -	- - -	- - -	9,263 - 1,074	8,556 - 30,762	(2,604,833) 4,769 -	(2,604,833) 13,325 30,762
BALANCE AT JUNE 30, 2015	\$ 157,348,610	382,680 \$	\$ 37,246,857	\$ 59,173,907	\$ 27,133,314	\$ 14,430,887	(87,159) \$	8,363,595 \$	(25,651) \$	8,250,785 \$	\$ (8,577,124)	\$ 295,389,916	\$ 26,255,942	\$ 321,645,858
Effect of retrospective application and BALANCE AT JANUARY 1, 2014	\$ 154,255,840	382,680 \$	\$ 36,960,818	\$ 55,359,726	\$ 26,920,871	\$ 16,348,240	(659,689) \$	8,603,167 \$	12,375 \$	7,955,853 \$	\$ (8,496,974)	\$ 289,687,054	\$ 29,682,661	\$ 319,369,715
retrospective restatement (Note 3)	-	-	-	-	-	(27,533)	-	-	-	-	-	(27,533)	(26,046)	(53,579)
Appropriation of 2013 earnings (Note 25) BALANCE AT JANUARY 1, 2014 AS RESTATED	154,255,840	382,680	36,960,818	55,359,726	26,920,871	16,320,707	(659,689)	8,603,167	12,375	7,955,853	(8,496,974)	289,659,521	29,656,615	319,316,136
Special reserve Legal reserve	- -	- -	- -	1,598,154 -	- 166,266	(1,598,154) (166,266)	- -	- -	- -	- -	- -	- -	- -	- -
Cash dividends to ordinary shareholders Cash dividends to preference - NT\$0.7 per share	-	-	-	-	-	(10,797,909)	-	-	-	-	-	(10,797,909)	-	(10,797,909)
shareholders - NT\$1.2 per share Reversal of special reserve	- -	- -	- -	- -	(425) -	(45,922) 425	- -	- -	- -	- -	- -	(45,922) -	- -	(45,922) -
Net profit for the six months ended June Other comprehensive income for the six 30, 2014	-	-	-	-	-	8,766,648	-	-	-	-	-	8,766,648	1,193,864	9,960,512
months ended June 30, 2014, net of income tax	-	-	-	-	-	-	184,113	819,539	1,160	1,004,812	-	1,004,812	235,551	1,240,363
Total comprehensive income for the six months ended June 30, 2014	-	-	-	-	-	8,766,648	184,113	819,539	1,160	1,004,812	-	9,771,460	1,429,415	11,200,875
Purchase of the Corporation's shares by Adjustment of non-controlling interests Adjustment of other equity subsidiaries	- - -	- - -	- - 4,337	- - -	- - -	(1,618) - -	- - -	- - -	- - -	- - -	(47,499) - -	(47,499) - 2,719	(75,128) (2,512,241) -	(122,627) (2,512,241) 2,719
BALANCE AT JUNE 30, 2014	\$ 154,255,840	382,680 \$	\$ 36,965,155	\$ 56,957,880	\$ 27,086,712	\$ 12,477,911	(475,576) \$	9,422,706 \$	13,535 \$	8,960,665 \$	\$ (8,544,473)	\$ 288,542,370	\$ 28,498,661	\$ 317,041,031

Effect of retrospective application and	Cash dividends to ordinary shareholders Net profit (loss) for the six months ended Appropriation of 2014 earnings (Note 25) Other comprehensive income for the six BALANCE AT JANUARY 1, 2015 AS months ended June 30, 2015, net of Cash dividends to preference	Disposal of the Corporation's shares held Total comprehensive income for the six	Cash dividends to ordinary shareholders Appropriation of 2013 earnings (Note 25) Net profit for the six months ended June Other comprehensive income for the six BALANCE AT JANUARY 1, 2014 AS Effect of retrospective application and months ended June 30, 2014, net of Cash dividends to preference	Total comprehensive income for the six Purchase of the Corporation's shares by

The accompanying notes are an integral part of the consolidated financial statements.

(With Deloitte & Touche review report dated August 12, 2015)

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

	For the Six	Months Ended June 30
	2015	2014 (Restated)
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before income tax	\$ 10,606,583	\$ 11,678,360
Adjustments for:
Depreciation expense	17,946,555	17,316,033
Amortization expense	164,607	189,382
Net gain on financial assets and liabilities at fair value through profit
or loss	(121,141)	(135,241)
Finance costs	1,819,770	1,908,501
Interest income	(224,172)	(268,101)
Dividend income	(124,703)	(39,903)
Share of the profit of associates	(200,832)	(321,963)
Loss on disposal of property, plant and equipment	32,330	97,156
Gain on disposal of intangible assets	(1,206)	(72,249)
Gain on disposal of investments	(162,620)	(486,800)
Increase (decrease) in provision for loss on inventories	2,154,190	(12,283)
Recognition of provisions	2,387,950	1,315,580
Impairment loss (reversal of impairment)	(1,104,022)	33,566
Others	29,224	30,310
Changes in operating assets and liabilities
Financial assets held for trading	271,880	(168,524)
Notes receivable	(41,708)	243,290
Notes receivable - related parties	(107,647)	319,749
Accounts receivable	755,722	(678,927)
Accounts receivable - related parties	67,342	(507,925)
Amounts due from customers for construction contracts	(1,571,942)	(54,941)
Other receivables	(242,207)	758,172
Inventories	(336,425)	5,381,999
Other current assets	867,186	(470,272)
Notes payable	(895,110)	(169,425)
Notes payable - related parties	(88)	(756)
Accounts payable	(631,668)	829,918
Accounts payable - related parties	(298,525)	587,588
Amounts due to customers for construction contracts	(1,581,290)	(315,890)
Other payables	3,952,093	2,110,871
Provisions	(3,816,191)	(595,297)
Other current liabilities	(697,973)	(518,823)
Net defined benefit liabilities	8,343	(125,680)
Cash generated from operations	28,904,305	37,857,475
Income taxes paid	(4,171,713)	(2,641,111)
Net cash generated from operating activities	24,732,592	35,216,364

(Continued)

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

	For the Six	Months Ended June 30
	2015	2014 (Restated)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets designated as at fair value through profit
or loss	\$ (3,298,241)	\$ (4,313,558)
Proceeds from disposal of financial assets designated as at fair value
through profit or loss	2,569,609	1,945,994
Acquisition of available-for-sale financial assets	(1,689,132)	(5,327,299)
Proceeds from disposal of available-for-sale financial assets	1,177,737	1,188,558
Proceeds from the capital reduction on available-for-sale financial
assets	85,426	44,163
Purchases of debt investments with no active market	(45,441)	(15,822)
Proceeds from disposal of debt investments with no active market	848,915	9,758
Acquisition of held-to-maturity financial assets	(30,216)	-
Acquisition of investments accounted for using equity method	(29,249)	(141,934)
Proceeds from the capital reduction on investments accounted for using
equity method	-	11,550
Acquisition of property, plant and equipment	(12,970,008)	(16,141,809)
Proceeds from disposal of property, plant and equipment	70,868	12,162
Decrease (increase) in refundable deposits	(20,257)	27,726
Acquisition of intangible assets	(112,099)	(48,275)
Acquisition of investment properties	(237,422)	-
Proceeds from disposal of investment properties	-	89
Decrease (increase) in other financial assets	1,308,451	(391,361)
Decrease (increase) in other noncurrent assets	(738,172)	166,546
Interest received	234,815	258,931
Dividends received from associates	105,357	264,087
Dividends received from others	54,687	12,350
Net cash used in investing activities	(12,714,372)	(22,438,144)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings	111,203,839	104,435,442
Repayments of short-term borrowings	(111,239,598)	(96,007,521)
Increase (decrease) in short-term bills payable	13,433,438	(4,174,723)
Issuance of bonds payable	10,000,000	34,900,000
Proceeds from long-term bank borrowings	11,908,221	11,385,271
Repayments of long-term bank borrowings	(31,975,392)	(37,412,397)
Decrease in long-term bills payable	(2,937,698)	(8,865,322)
Decrease (increase) in other noncurrent liabilities	155,199	(1,945)
Dividends paid to owners of the Corporation	(3,627)	(3,191)
Purchase of the Corporation's shares by subsidiaries	-	(122,627)
Disposal of the Corporation's shares by subsidiaries	13,325	- (Continued)

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

	For the Six	Months Ended June 30
	2015	2014 (Restated)
Interest paid	\$ (1,844,718)	\$ (1,443,236)
Decrease in non-controlling interests	(2,604,833)	(2,512,241)
Net cash generated from (used in) financing activities	(3,891,844)	177,510
EFFECT OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN
CURRENCIES	(1,105,339)	10,075
NET INCREASE IN CASH AND CASH EQUIVALENTS	7,021,037	12,965,805
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE
PERIOD	10,659,657	10,541,442
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	\$ 17,680,694	\$ 23,507,247
Reconciliation of the amounts in the consolidated statements of cash flows with the equivalent items reported in the consolidated balance sheets as of June 30, 2015 and 2014:
Cash and cash equivalents in the consolidated balance sheets	\$ 19,682,666	\$ 24,522,952
Bank overdraft Cash and cash equivalents in the consolidated statements of cash flows	(2,001,972) \$ 17,680,694	(1,015,705) \$ 23,507,247

The accompanying notes are an integral part of the consolidated financial statements. (Concluded)

(With Deloitte & Touche review report dated August 12, 2015)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2015 AND 2014 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) (Reviewed, Not Audited)

1. GENERAL INFORMATION

China Steel Corporation (the "Corporation") was incorporated on December 3, 1971. It manufactures and sells steel products and engages in mechanical, communications, and electrical engineering.

The shares of the Corporation and its subsidiaries, including China Steel Structure Co., Ltd., China Steel Chemical Corporation, CHC Resources Corporation, China Ecotech Corporation and Chung Hung Steel Corporation Ltd., have been listed on the Taiwan Stock Exchange. The shares of the subsidiary Thintech Materials Technology Co., Ltd. have been traded on the Taiwan GreTai Securities Market. The subsidiary Dragon Steel Corporation has issued shares to the public.

As of June 30, 2015, the Ministry of Economic Affairs ("MOEA"), Republic of China owned 20.05 % of the Corporation's issued ordinary shares.

The consolidated financial statements are presented in the Corporation's functional currency, New Taiwan Dollars.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were reported to the board of directors and approved for issue on August 12, 2015.

3. APPLICATION OF NEW AND AMENDED STANDARDS AND INTERPRETATIONS

a. Initial application of the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the 2013 version of the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), Interpretations of IFRS (IFRIC), and Interpretations of IAS (SIC) endorsed by the Financial Supervisory Commission ("FSC")

According to Rule No. 1030029342 and Rule No. 1030010325 issued by the FSC, the Corporation and its subsidiaries should apply the 2013 version of IFRS, IAS, IFRIC and SIC (the "IFRSs") announced by the International Accounting Standards Board (IASB) and endorsed by the FSC and the related amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers starting January 1, 2015.

Except for the following, the initial application of the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the 2013 version of IFRSs did not have any material impact on the Corporation and its subsidiaries' accounting policies:

1) IFRS 10 "Consolidated Financial Statements"

IFRS 10 replaces IAS 27 "Consolidated and Separate Financial Statements" and SIC 12 "Consolidation - Special Purpose Entities". The Corporation and its subsidiaries consider whether they have control over other entities for consolidation. The Corporation and its subsidiaries have control over an investee if and only if they have i) power over the investee; ii) exposure, or rights, to variable returns from their involvement with the investee and iii) the ability to use their power over the investee to affect the amount of their returns. Additional guidance has been included in IFRS 10 to explain when an investor has control over an investee.

2) IFRS 11 "Joint Arrangements"

IFRS 11 replaces IAS 31 "Interests in Joint Ventures" and SIC 13 "Jointly Controlled Entities - Non-Monetary Contributions by Ventures". Under IAS 31, joint arrangements are classified as jointly controlled operations, jointly controlled assets and jointly controlled entities. Under IFRS 11, joint arrangements are classified as joint operations and joint ventures.

Under IAS 31, joint arrangements of the Corporation and its subsidiaries are classified as jointly controlled operations depending on the rights and obligations of the parties to the arrangements. Under IFRS 11, the joint arrangements of the Corporation and its subsidiaries are classified as joint operations. The impact is considered immaterial.

3) IFRS 12 "Disclosure of Interests in Other Entities"

IFRS 12 is a new disclosure standard and is applicable to entities that have interests in subsidiaries, joint arrangements and associates. Under IFRS 12, the consolidated financial statements include more extensive disclosures.

4) Revision to IAS 28 "Investments in Associates and Joint Ventures"

Under revised IAS 28, when an investment in a joint venture becomes an investment in an associate, the Corporation and its subsidiaries continue to apply the equity method and do not remeasure the retained interest. Under the previous IAS 28, on the loss of joint control, the Corporation and its subsidiaries measure at fair value any investment the Corporation and its subsidiaries retain in the former jointly controlled entity. The Corporation and its subsidiaries recognize in profit or loss any difference between the aggregate amounts of fair value of retained investment and proceeds from disposal of the part of interest in the jointly controlled entity, and the carrying amount of the investment at the date when joint control is lost.

5) IFRS 13 "Fair Value Measurement"

IFRS 13 establishes a single source of guidance for fair value measurements. It defines fair value, establishes a framework for measuring fair value, and requires disclosures about fair value measurements. The disclosure requirements in IFRS 13 are more extensive than those required in the current standards. For example, quantitative and qualitative disclosures based on the three-level fair value hierarchy currently required for financial instruments measured at fair value only will be extended by IFRS 13 to cover all assets and liabilities within its scope.

The fair value measurements under IFRS 13 are applied prospectively from January 1, 2015. Refer to Note 31 for more details.

6) Amendments to IAS 1 "Presentation of Items of Other Comprehensive Income"

The amendments to IAS 1 require items of other comprehensive income to be grouped into those that (1) will not be reclassified subsequently to profit or loss; and (2) may be reclassified subsequently to profit or loss. Income taxes on related items of other comprehensive income are grouped on the same basis. Under the previous IAS 1, there were no such requirements.

Starting 2015, the Corporation and its subsidiaries retrospectively apply the above amendments. The items which are not reclassified to profit or loss are remeasurements of the defined benefit plans. The items which are likely to be reclassified subsequently to profit or loss include exchange differences on translating foreign operations, unrealized gain (loss) on available-for-sale financial assets, The effective portion of gains and losses on hedging instruments in a cash flow hedge and share of the other comprehensive income of associates (except share of remeasurements of the defined benefit plans). However, the application of the above amendments doesn't result in any impact on the net profit for the period, other comprehensive income for the period (net of income tax), and total comprehensive income for the period.

7) Revision to IAS 19 "Employee Benefits"

Revised IAS 19 requires the recognition of changes in defined benefit obligations and in the fair value of plan assets when they occur, and hence eliminates the "corridor approach" permitted under previous IAS 19 and accelerate the recognition of past service costs. The revision requires all remeasurements of the defined benefit plans to be recognized immediately through other comprehensive income in order for the net pension asset or liability to reflect the full value of the plan deficit or surplus.

Furthermore, the interest cost and expected return on plan assets used in previous IAS 19 are replaced with a "net interest" amount, which is calculated by applying the discount rate to the net defined benefit liability or asset. In addition, the revised IAS 19 introduces certain changes in the presentation of the defined benefit cost, and also includes more extensive disclosures.

In addition, revised IAS 19 changes the definition of short-term employee benefits. The revised definition is "employee benefits (other than termination benefits) that are expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related service". However, this change does not affect unused annual leave to be presented as a current liability in the consolidated balance sheet.

On initial application of the revised IAS 19, the changes in cumulative employee benefit costs as of December 31, 2013 resulting from the retrospective application are adjusted to net defined benefit liabilities and retained earnings, the carrying amounts of inventories and property, plant and equipment are not adjusted. In addition, the Corporation and its subsidiaries elect not to present 2014 comparative information about the sensitivity of the defined benefit obligation in the consolidated financial statements for the year ended December 31, 2015.

The impact on the prior period is set out below:

	As Originally Stated	Adjustments Arising from Initial Application	Restated
Impact on assets, liabilities and equity
December 31, 2014
Deferred tax assets Deferred tax liabilities Accrued pension liabilities Net defined benefit liabilities Retained earnings Non-controlling interests	\$ 6,062,321 \$ 12,678,217 \$ 5,457,497 \$ - \$ 108,169,678 \$ 29,994,473	\$ 2,784 \$ 17 \$ (5,457,497) \$ 5,503,901 \$ (18,800) \$ (24,837)	\$ 6,065,105 \$ 12,678,234 \$ - \$ 5,503,901 \$ 108,150,878 \$ 29,969,636
June 30, 2014
Deferred tax assets Accrued pension liabilities	\$ 5,921,009 \$ 7,096,034	\$ 2,601 \$ (7,096,034)	\$ 5,923,610 \$ - (Continued)

	As Originally Stated	Adjustments Arising from Initial Application	Restated
Net defined benefit liabilities	\$	\$	\$
	-	7,164,437	7,164,437
Retained earnings	\$	\$	\$
	96,564,775	(42,272)	96,522,503
Non-controlling interests	\$	\$	\$
	28,522,191	(23,530)	28,498,661
January1, 2014
Deferred tax assets	\$	\$	\$
	6,077,668	3,437	6,081,105
Accrued pension liabilities	\$	\$	\$
	7,237,168	(7,237,168)	-
Net defined benefit liabilities Retained earnings	\$ - \$ 98,628,837	\$ 7,294,184 \$ (27,533)	\$ 7,294,184 \$ 98,601,304
Non-controlling interests	\$	\$	\$
	29,682,661	(26,046)	29,656,615
Impact on total comprehensive income for the three months ended June 30, 2014
Operating cost	\$	\$	\$
	81,738,223	(1,946)	81,736,277
Operating expense	\$	\$	\$
	3,469,327	9,392	3,478,719
Income tax	\$	\$	\$
	925,381	(1,615)	923,766
Net profit for the period	\$	\$	\$
	5,695,341	(5,831)	5,689,510
Net profit attributable to:
Owners of the Corporation	\$	\$	\$
	5,152,848	(7,253)	5,145,595
Non-controlling interests	\$	\$	\$
	542,493	1,422	543,915
Total comprehensive income attributable to:
Owners of the Corporation	\$	\$	\$
	5,551,503	(7,253)	5,544,250
Non-controlling interests	\$	\$	\$
	553,902	1,422	555,324
Impact on total comprehensive income for the six months ended June 30, 2014
Operating cost	\$	\$	\$
	166,045,149	(3,410)	166,041,739
Operating expense	\$	\$	\$
	6,852,299	18,864	6,871,163
Income tax	\$	\$	\$
	1,721,079	(3,231)	1,717,848
Net profit for the period	\$	\$	\$
	9,972,735	(12,223)	9,960,512
Net profit attributable to:
Owners of the Corporation	\$	\$	\$
	8,781,387	(14,739)	8,766,648
Non-controlling interests	\$	\$	\$
	1,191,348	2,516	1,193,864
Total comprehensive income attributable to:
Owners of the Corporation	\$	\$	\$
	9,786,199	(14,739)	9,771,460
Non-controlling interests	\$	\$	\$
	1,426,899	2,516	1,429,415
			(Concluded)

On initial application of the revised IAS 19, there is no impact on other comprehensive income and earnings per share of the Corporation and its subsidiaries for the six months ended June 30, 2014; the impact on consolidated assets, liabilities and equity as of June 30, 2015 and the consolidated comprehensive income for the three months and six months ended June 30, 2015 is considered immaterial.

8) Annual Improvements to IFRSs: 2009-2011 Cycle

Several standards including IAS 16 "Property, Plant and Equipment", IAS 32 "Financial Instruments: Presentation" and IAS 34 "Interim Financial Reporting" were amended in this annual improvement.

The amendments to IAS 16 clarify that spare parts, stand-by equipment and servicing equipment should be recognized in accordance with IAS 16 when they meet the definition of property, plant and equipment and otherwise as inventory.

The amendments to IAS 32 clarify that income tax relating to distributions to holders of an equity instrument and to transaction costs of an equity transaction should be accounted for in accordance with IAS 12 "Income Taxes".

The amendments to IAS 34 clarify that a measure of total liabilities for a reportable segment would be disclosed in interim financial reporting when such amounts are regularly provided to the chief operating decision maker of the Corporation and its subsidiaries and there has been a material change from the amounts disclosed in the last annual financial statements for that reportable segment. Refer to Note 36 for more details.

9) Recognition and measurement of financial liabilities designated as at fair value through profit or loss

In accordance with the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers, for financial liabilities designated as at fair value through profit or loss, the amount of change in the fair value attributable to changes in the credit risk of that liability is presented in other comprehensive income and the remaining amount of change in the fair value of that liability is presented in profit or loss. Changes in fair value attributable to a financial liability's credit risk are not subsequently reclassified to profit or loss. If the above accounting treatment would create or enlarge an accounting mismatch, all gains or losses on that liability are presented in profit or loss.

In sum, the impact on applications of the revised Regulations Governing the Preparation of Financial Reports by Securities Issuers and the 2013 version of IFRSs is considered immaterial to the Corporation and its subsidiaries.

b. IFRSs announced by the IASB but not yet endorsed by the FSC

The Corporation and its subsidiaries have not applied the IFRSs announced by the IASB but not yet endorsed by the FSC. As of the date the consolidated financial statements were reported to the board of directors and approved for issue, the FSC has not yet announced the effective date.

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB (Note 1)
Annual Improvements to IFRSs 2010-2012 Cycle	July 1, 2014 (Note 2)
Annual Improvements to IFRSs 2011-2013 Cycle	July 1, 2014
Annual Improvements to IFRSs 2012-2014 Cycle	January 1, 2016 (Note 3)
IFRS 9 "Financial Instruments"	January 1, 2018
	(Continued)

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB (Note 1)

Amendments to IFRS 9 and IFRS 7 "Mandatory Effective Date and Transition Disclosures"	January 1, 2018
Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets between an Investor and its Associate or Joint Venture"	January 1, 2016 (Note 4)
Amendments to IFRS 10, IFRS 12 and IAS 28 "Investment Entities : Applying the Consolidation Exception"	January 1, 2016
Amendment to IFRS 11 "Acquisitions of Interests in Joint Operations"	January 1, 2016
IFRS 14 "Regulatory Deferral Accounts"	January 1, 2016
IFRS 15 "Revenue from Contracts with Customers"	January 1, 2017
Amendments to IAS 1 "Disclosure Initiative"	January 1, 2016
Amendments to IAS 16 and IAS 38 "Clarification of Acceptable Methods of Depreciation and Amortization"	January 1, 2016
Amendments to IAS 16 and IAS 41 "Agriculture: Bearer Plants"	January 1, 2016
Amendment to IAS 19 "Defined Benefit Plans: Employee Contributions"	July 1, 2014
Amendment to IAS 36 "Recoverable Amount Disclosures for Non-Financial Assets"	January 1, 2014
Amendment to IAS 39 "Novation of Derivatives and Continuation of Hedge Accounting"	January 1, 2014
IFRIC 21 "Levies"	January 1, 2014 (Concluded)

Note 1: Unless stated otherwise, the above new, amended and revised standards and interpretations are effective for annual periods beginning on or after the respective effective dates.
Note 2: The amendment to IFRS 2 applies to share-based payment transactions for which the grant date is on or after July 1, 2014; the amendment to IFRS 3 applies to business combinations for which the acquisition date is on or after July 1, 2014; the amendment to IFRS 13 is effective immediately; the remaining amendments are effective for annual periods beginning on or after July 1, 2014.
Note 3: The amendment to IFRS 5 is applied prospectively for annual periods beginning on or after January 1, 2016; the remaining amendments are effective for annual periods beginning on or after January 1, 2016.
Note 4: Prospectively applicable to transactions occurring in annual periods beginning on or after January 1, 2016.

Except for the following, whenever applied, the initial application of the above new, amended and revised standards and interpretations would not have any material impact on the Corporation and its subsidiaries' accounting policies:

1) IFRS 9 "Financial Instruments"

Recognition and measurement of financial assets

With regards to financial assets, all recognized financial assets that are within the scope of IAS 39 "Financial Instruments: Recognition and Measurement" are subsequently measured at amortized cost or fair value. Under IFRS 9, the requirements for classifying financial assets are as follows.

When the contractual cash flow of the debt instruments invested by the Corporation and its subsidiaries that are solely payments of principal and interest on the principal outstanding, the classification and measurement are as follows:

a) Financial assets that are held within a business model whose objective is to collect the contractual cash flow are generally measured at amortized cost. Related interest revenue is recognized in profit or loss using the effective interest rate; impairment is continually evaluated and recognized in profit or loss.
b) Financial assets that are held within business models whose objectives are to collect the contractual cash flow and to sell are measured at fair value through other comprehensive income. Related interest revenue is recognized in profit or loss using the effective interest rate; impairment is continually evaluated and recognized in profit or loss as well as exchange gain or loss, while other fair value changes are recognized in other comprehensive income. When the financial assets are derecognized or reclassified, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss.

Except for above, all other financial assets are measured at fair value through profit or loss However, the Corporation and its subsidiaries may make an irrevocable election to present subsequent changes in the fair value of an equity investment (that is not held for trading) in other comprehensive income, with only dividend income generally recognized in profit or loss. No impairment evaluation is needed for the subsequent period, and the cumulative gain or loss previously recognized in other comprehensive income cannot be reclassified from equity to profit or loss.

Impairment of financial assets

IFRS 9 requires that impairment loss on financial assets is recognized by using the "Expected Credit Losses Model". The credit loss allowance is required for financial assets measured at amortized cost, financial assets mandatorily measured at FVTOCI, lease receivables, contract assets arising from IFRS 15 "Revenue from Contracts with Customers", certain written loan commitments and financial guarantee contracts. A loss allowance for the 12-month expected credit losses is required for a financial asset if its credit risk has not increased significantly since initial recognition. A loss allowance for full lifetime expected credit losses is required for a financial asset if its credit risk has increased significantly since initial recognition and is not low. However, a loss allowance for full lifetime expected credit losses is required for trade receivables that do not constitute a financing transaction.

Furthermore, for the financial assets with credit impairment on initial recognition, the Corporation and its subsidiaries consider the expected credit losses on initial recognition to calculate effective interest rate after adjusting credit risk. Subsequently, allowance for credit losses is measured at accumulated changes in expected credit losses.

Hedge accounting

The main changes in hedge accounting amended the application requirements for hedge accounting to better reflect the entity's risk management activities. Compared with IAS 39, the main changes include: (1) enhancing types of transactions eligible for hedge accounting, specifically broadening the risk eligible for hedge accounting of non-financial items; (2) changing the way hedging derivative instruments are accounted for to reduce profit or loss volatility; and (3) replacing retrospective effectiveness assessment with the principle of economic relationship between the hedging instrument and the hedged item.

2) Amendments to IAS 36 "Recoverable Amount Disclosures for Non-Financial Assets"

In issuing IFRS 13 "Fair Value Measurement", the IASB made consequential amendments to the disclosure requirements in IAS 36 "Impairment of Assets", introducing a requirement to disclose in every reporting period the recoverable amount of an asset or each cash-generating unit. The amendment clarifies that such disclosure of recoverable amount is required only when an impairment loss has been recognized or reversed during the period. Furthermore, the Corporation and its subsidiaries are required to disclose the discount rate used in measurements of the recoverable amount based on fair value less costs of disposal measured using a present value technique.

3) Annual Improvements to IFRSs: 2010-2012 Cycle

Several standards including IFRS 2 "Share-based Payment", IFRS 3 "Business Combinations" and IFRS 8 "Operating Segments" were amended in this annual improvement.

The amended IFRS 2 changes the definitions of "vesting condition" and "market condition" and adds definitions for "performance condition" and "service condition". The amendment clarifies that a performance target can be based on the operations (i.e. a non-market condition) of the Corporation and its subsidiaries or another entity in the same group or on the market price of the equity instruments of the Corporation and its subsidiaries or another entity in the same group (i.e. a market condition); that a performance target can relate either to the performance of the Corporation and its subsidiaries as a whole or to some part of it (e.g. a division); and that the period for achieving a performance condition must not extend beyond the end of the related service period. In addition, a share market index target is not a performance condition because it reflects not only the performance of the Corporation and its subsidiaries, but also that of other entities outside the Corporation and its subsidiaries.

IFRS 3 was amended to clarify that contingent consideration should be measured at fair value, irrespective of whether the contingent consideration is a financial instrument within the scope of IAS 39 or IFRS 9. Fair value changes should be recognized in profit or loss.

The amended IFRS 8 requires an entity to disclose the judgments made by management in applying the aggregation criteria to operating segments, including a description of the operating segments aggregated and the economic indicators assessed in determining whether the operating segments have 'similar economic characteristics'. The amendment also clarifies that a reconciliation of the total of the reportable segments' assets to the entity's assets should only be provided if the segments' assets are regularly provided to the chief operating decision-maker.

IFRS 13 was amended to clarify that the issuance of IFRS 13 did not remove the ability to measure short-term receivables and payables with no stated interest rate at their invoice amounts without discounting, if the effect of not discounting is immaterial.

IAS 24 was amended to clarify that a management entity providing key management personnel services to the Corporation and its subsidiaries is a related party of the Corporation and its subsidiaries. Consequently, the Corporation and its subsidiaries are required to disclose as related party transactions the amounts incurred for the service paid or payable to the management entity for the provision of key management personnel services. However, disclosure of the components of such compensation is not required.

4) Annual Improvements to IFRSs: 2011-2013 Cycle

Several standards, including IFRS 3, IFRS 13 and IAS 40 "Investment Property", were amended in this annual improvement.

IFRS 3 was amended to clarify that IFRS 3 does not apply to the accounting for the formation of all types of joint arrangements in the financial statements of the joint arrangement itself.

The scope in IFRS 13 of the portfolio exception for measuring the fair value of a group of financial assets and financial liabilities on a net basis was amended to clarify that it includes all contracts that are within the scope of, and accounted for in accordance with, IAS 39 or IFRS 9, even if those contracts do not meet the definitions of financial assets or financial liabilities within IAS 32.

IAS 40 was amended to clarify that IAS 40 and IFRS 3 are not mutually exclusive and application of both standards may be required to determine whether the investment property acquired is acquisition of an asset or a business combination.

5) Amendments to IAS 16 and IAS 38 "Clarification of Acceptable Methods of Depreciation and Amortization"

The Corporation and its subsidiaries should use appropriate depreciation and amortization method to reflect the pattern in which the future economic benefits of the property, plant and equipment and intangible asset are expected to be consumed by the Corporation and its subsidiaries.

The amended IAS 16 "Property, Plant and Equipment" requires that a depreciation method that is based on revenue that is generated by an activity that includes the use of an asset is not appropriate. The amended standard does not provide any exception from this requirement.

The amended IAS 38 "Intangible Assets" requires that there is a rebuttable presumption that an amortization method that is based on revenue that is generated by an activity that includes the use of an intangible asset is not appropriate. This presumption can be overcome only in the following limited circumstances:

a) In which the intangible asset is expressed as a measure of revenue (for example, the contract that specifies the Corporation and its subsidiaries' use of the intangible asset will expire upon achievement of a revenue threshold); or
b) When it can be demonstrated that revenue and the consumption of the economic benefits of the intangible asset are highly correlated.

The Corporation and its subsidiaries should apply the aforementioned amendments prospectively for annual periods beginning on or after the effective date.

6) IFRS 15 "Revenue from Contracts with Customers"

IFRS 15 establishes principles for recognizing revenue that apply to all contracts with customers, and will supersedes IAS 18 "Revenue", IAS 11 "Construction Contracts" and a number of revenue-related interpretations.

When applying IFRS 15, the Corporation and its subsidiaries shall recognize revenue by applying the following steps:

a) Identify the contract with the customer;
b) Identify the performance obligations in the contract;
c) Determine the transaction price;
d) Allocate the transaction price to the performance obligations in the contracts; and
e) Recognize revenue when the Corporation and its subsidiaries satisfy a performance obligation.

When IFRS 15 is effective, the Corporation and its subsidiaries may elect to apply this Standard either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying this Standard recognized at the date of initial application.

7) Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets between an Investor and its Associate or Joint Venture"

The amendments stipulated that, when the Corporation and its subsidiaries sell or contribute assets that constitute a business (as defined in IFRS 3) to an associate or joint venture, the gain or loss resulting from the transaction is recognized in full. Also, when the Corporation and its subsidiaries lose control of a subsidiary that contains a business but retains significant influence or joint control, the gain or loss resulting from the transaction is recognized in full.

Conversely, when the Corporation and its subsidiaries sell or contribute assets that do not constitute a business to an associate or joint venture, the gain or loss resulting from the transaction is recognized only to the extent of the unrelated investors' interest in the associate or joint venture, i.e. the Corporation and its subsidiaries, share of the gain or loss is eliminated. Also, when the Corporation and its subsidiaries lose control of a subsidiary that does not contain a business but retains significant influence or joint control in an associate or a joint venture, the gain or loss resulting from the transaction is recognized only to the extent of the unrelated investors' interest in the associate or joint venture, i.e. the Corporation and its subsidiaries' share of the gain or loss is eliminated.

8) Annual Improvements to IFRSs: 2012-2014 Cycle

Several standards including IFRS 7 were amended in this annual improvement.

The amendments to IFRS 7 provide additional guidance to clarify whether a servicing contract is continuing involvement in a transferred asset. In addition, the amendments clarify that the offsetting disclosures are not explicitly required for all interim periods; however, the disclosures may need to be included in condensed interim financial statements to comply with IAS 34 under specific conditions.

9) Amendment to IAS 1 "Disclosure Initiative"

The amendment clarifies that the consolidated financial statements should be prepared for the purpose of disclosing material information. To improve the understandability of its consolidated financial statements, the Corporation and its subsidiaries should disaggregate the disclosure of material items into their different natures or functions, and disaggregate material information from immaterial information.

The amendment further clarifies that the Corporation and its subsidiaries should consider the understandability and comparability of its consolidated financial statements to determine a systematic order in presenting its footnotes.

As of the date the consolidated financial statements were reported to the board of directors and approved for issue, the Corporation and its subsidiaries are in the process of estimating the impact of the impending initial application of the aforementioned and other standards and the amendments to interpretations on their financial position and results of operations. Disclosures will be provided after a detailed review of the impact has been completed.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICY

For readers' convenience, the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the ROC. If inconsistencies arise between the English version and the Chinese version or if differences arise in the interpretations between the two versions, the Chinese version of the consolidated financial statements shall prevail. However, the accompanying consolidated financial statements do not include English translation of the additional footnote disclosures that are not required under generally accepted accounting principles but are required by the Securities and Futures Bureau for their oversight purposes.

a. Statement of compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 "Interim Financial Reporting" endorsed by the FSC. The consolidated financial statements do not present full disclosures required for a complete set of IFRSs annual consolidated financial statements.

b. Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments that are measured at fair value.

The fair value measurements are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
3) Level 3 inputs are unobservable inputs for the asset or liability.

c. Basis of consolidation

1) Subsidiaries included in consolidated financial statements

The consolidated entities were as follows:

				Percentage of Ownership (%)
			June 30,	December 31,	June 30,	Additional
Investor	Investee	Main Businesses	2015	2014	2014	Descriptions
China Steel Corporation	China Steel Express Corporation (CSE)	Ocean freight forwarding	100	100	100
	C. S. Aluminium Corporation (CSAC)	Production and sale of aluminum and other non-ferrous metal	100	100	100
	Gains Investment Corporation (GIC)	General investment	100	100	100
	China Prosperity Development Corporation (CPDC)	Real estate sale, rental and development service	100	100	100
	China Steel Asia Pacific Holdings Pte Ltd. (CSAPH)	Investment holding company	100	100	100
	China Steel Global Trading Corporation (CSGT)	Steel product agency and trading service	100	100	100
	China Steel Machinery Corporation	Manufacture of machinery and equipment	74	74	74	Direct and indirect ownerships amounted to 100%
	China Steel Security Corporation	Guard security and system security	100	100	100
	Info-Champ Systems Corporation (ICSC)	Design and sale of IT hardware and software	100	100	100
	CSC Steel Australia Holdings Pty Ltd. (CSCAU)	Investment holding company	100	100	100
	Himag Magnetic Corporation	Manufacture and trading of magnetic powder	50	50	50	Direct and indirect ownerships amounted to 85%
	Dragon Steel Corporation (DSC)	Manufacture and sale of steel product	100	100	100
	China Steel Management Consulting Corporation	Business management consultant	100	100	100
	China Ecotek Corporation (CEC)	Electrical engineering and co-generation	45	45	45	Refer to 1) below
	China Steel Chemical Corporation (CSCC)	Production and sale of coal chemistry and specialty chemicals	29	29	29	Refer to 1) below
	Chung Hung Steel Corporation Ltd. (CHSC)	Manufacture and sale of steel product	41	41	41	Refer to 1) below
						(Continued)

				Percentage of Ownership (%)
Investor	Investee	Main Businesses	June 30, 2015	December 31, 2014	June 30, 2014	Additional Descriptions
	CHC Resources Corporation (CHC)	Manufacture and sale of slag powder and blast furnace cement, and waste disposal	20	20	20	Direct and indirect ownerships amounted to 36%, and refer to 1)
	China Steel Structure Co., Ltd. (CSSC)	Design, manufacture and sale of steel structure	33	33	33	below Direct and indirect ownerships amounted to 37%, and refer to 1)
	China Steel Sumikin Vietnam Joint Stock	Manufacture and sale of steel product	51	51	51	below
	Company (CSVC) China Steel Corporation India Pvt. Ltd. (CSCI)	Manufacture and sale of steel product (electromagnetic steel coil)	100	100	100
	Kaohsiung Rapid Transit Corporation (KRTC)	Operation of mass rapid transit	43	43	43	Direct and indirect ownerships
	China Steel Resources	Disposal and process of waste	100	100	100	amounted to 50%
	Corporation CSC Precision Metal	Non-ferrous metals processing	100	100	100
	Industrial Corporation Winning Investment Corporation (WIC)	General investment	-	-	-	Indirect ownership was 58%
	Eminent Venture Capital Corporation (EVCC)	General investment	-	-	-	Indirect ownership was 55%
China Steel Express Corporation CSE Transport Corporation	(Panama) (CSEP)	Ocean freight forwarding	100	100	100
	CSEI Transport Corporation (Panama)	Ocean freight forwarding	100	100	100
	(CSEIP) Transyang Shipping Pte	Ocean freight forwarding	51	51	51
	Ltd. (TSP) Transglory Investment Corporation (TIC)	General investment	50	50	50	Direct and indirect ownerships
	Kaohsiung Port Cargo	Cargo Stevedoring	66	66	66	amounted to 100%
C.S. Aluminium Corporation	Handling Services Corp. ALU Investment Offshore	Industry investment	100	100	100
ALU Investment Offshore Corporation	Corporation United Steel International Development Corp.	Industry investment	65	65	65	Direct and indirect ownerships
United Steel International Development Corp.	Ningbo Huayang Aluminium-Tech Co., Ltd.	Manufacture and sale of aluminum alloy material	100	100	100	amounted to 79%
Gains Investment Corporation	Eminence Investment Corporation	General investment	100	100	100
	Gainsplus Asset Management Inc.	General investment	100	100	100
	Mentor Consulting Corporation	General investment consulting service	100	100	100
	Betacera Inc. (BETA)	Manufacture, processing and trading of electronic ceramics	48	48	48	Refer to 1) below
	Universal Exchange Inc. Thintech Materials Technology Co., Ltd. (TMTC)	Software programming Target material and bimetal material tube sale	64 32	64 32	64 32	Direct and indirect ownerships amounted to 40%, and refer to 2) below
Eminence Investment Corporation	Shin-Mau Investment Corporation	General investment	30	30	30	Direct and indirect ownerships
	Gau Ruel Investment Corporation	General investment	25	25	25	amounted to 100% Direct and indirect ownerships
	Ding Da Investment Corporation	General investment	30	30	30	amounted to 100% Direct and indirect ownerships
	Chiun Yu Investment Corporation	General investment	25	25	25	amounted to 100% Direct and indirect ownerships
Shin-Mau Investment Corporation	Horng Chyuan Investment Corporation	General investment	5	5	5	amounted to 100% Direct and indirect ownerships
	Chi Yih Investment Corporation	General investment	5	5	5	amounted to 100% Direct and indirect ownerships amounted to 100%
Gau Ruel Investment Corporation	Lih Ching Loong Investment Corporation	General investment	5	5	5	Direct and indirect ownerships amounted to 100%
	Sheng Lih Dar Investment Corporation	General investment	4	4	4	Direct and indirect ownerships
Ding Da Investment Corporation Jiing Cherng Fa Investment	Corporation	General investment	4	4	4	amounted to 100% Direct and indirect ownerships
Betacera Inc. Lefkara Ltd.	Lefkara Ltd. Shang Hai Xike Ceramic	Electronic ceramics trading Electronic ceramics trading	100 100	100 100	100 100	amounted to 100%
	Electronic Co., Ltd. Betacera (Su Zhou) Co.,	Manufacture and sale of electronic	100	100	100
	Ltd. Suzhou Betacera Technology Co., Ltd.	ceramics Manufacture and sale of life-saving equipment for aviation and	100	100	100
Thintech Materials Technology Co., Ltd.	Thintech International Limited	shipping International trading and investment service	100	100	100
						(Continued)

				Percentage of Ownership (%)
Investor	Investee	Main Businesses	June 30, 2015	December 31, 2014	June 30, 2014	Additional Descriptions
	Thintech Global Limited	International trading and investment	100	100	100
	Thintech United Limited	service International trading and investment	100	100	100
		service
Thintech International Limited	Nantong Zhongxing Materials Technology Co., Ltd. (NZMTCL)	Manufacture, processing and trading of target material	47	47	47	Refer to 1) below
Thintech Global Limited	Taicang Thintech Materials Co., Ltd.	Manufacture, processing and trading of target material	100	100	100
Thintech United Limited	Thintech United Metal Resources (Taicang) Co.,	Refining, purification and sale of metal	84	84	84
China Prosperity Development Corporation	Ltd. CK Japan Co., Ltd.	Real estate sale and rental	80	80	80	Direct and indirect ownerships
China Steel Asia Pacific	CSC Steel Holdings Berhad	Investment holding company	46	46	46	amounted to 100% Refer to 1) below
Holdings Pte Ltd.	(CSHB) Changzhou China Steel Precision Materials Corporation (CCSPMC)	Manufacture and sale of titanium-nickel alloy and non-ferrous metal	70	70	70
	Qingdao China Steel Precision Metals Co., Ltd.	Steel cutting and processing	60	60	60	Direct and indirect ownerships amounted to 70%
	United Steel International Co., Ltd.	General investment	80	80	-	Investment from United Steel Investment Holding Co., Ltd. in July 2014; direct and indirect ownerships
CSC Steel Holdings Berhad	CSC Steel Sdn. Bhd.	Manufacture and sale of steel product	100	100	100	amounted to 100%
	(CSCSSB) Group Steel Corp. (M) Sdn.	Manufacture and sale of steel product	100	100	100
	Bhd. CSC Bio-Coal Sdn. Bhd.	Manufacture biomass coal	100	100	100
CSC Steel Sdn. Bhd. United Steel International Co., Ltd.	Constant Mode Sdn. Bhd. United Steel Engineering and Construction Co.,	General investment Steel cutting and processing	100 100	100 100	100 100
China Steel Global Trading	Ltd. Chung Mao Trading	Investment and trading service	100	100	100
Corporation	(SAMOA) Co., Ltd.	CSGT (Singapore) Pte. Ltd. Steel product agency and trading service	100	100	100
	Chung Mao Trading (BVI)	Steel product agency and trading	53	53	53
	Co., Ltd. Wabo Global Trading Corporation	service Steel product agency and trading service	44	44	44	Direct and indirect ownerships amounted to 50%
	CSGT International Corporation	Investment and trading service	100	100	100
	China Steel Global Trading Vietnam Co., Ltd.	Steel trading	100	100	100
Chung Mao Trading (SAMOA) Co., Ltd.		CSGT (Shanghai) Co., Ltd. Steel product agency and trading service	100	100	100
Chung Mao Trading (BVI) Co.,		CSGT Hong Kong Limited Steel product agency and trading	100	100	100
Ltd. CSGT International Corporation CSGT Metals Vietnam	Joint Stock Company	service Steel cutting and processing	45	45	45	Direct and indirect ownerships
	CSGT Trading India Pvt. Ltd.	Steel trading	99	99	-	amounted to 50% Investment in October 2014; direct and indirect ownerships amounted to 100%
Wabo Global Trading Corporation	CSGT Japan Co., Ltd.	Steel product agency and trading service	100	100	100
China Steel Machinery Corporation	China Steel Machinery Holding Corporation	General investment	100	100	100
	China Steel Machinery Vietnam Co., Ltd.	Installation of machinery and equipment, and technology service	100	100	100
	China Steel Machinery Corporation India Pvt.	Manufacture of machinery	99	99	99	Direct and indirect ownerships
China Steel Machinery Holding	Ltd. CSMC (Shanghai) Global	International trading	100	100	100	amounted to 100%
Corporation China Steel Security	Trading Co., Ltd. Steel Castle Technology	Firefighting equipment wholesaling	100	100	100
Corporation	Corporation China Steel Management and Maintenance for	Building management	100	100	100
Info-Champ Systems	Building Corporation Info-Champ System	Information service	100	100	100
Corporation Info-Champ System (B.V.I.)	(B.V.I.) Wuham InfoChamp I.T.	Software programming	100	100	100
CSC Steel Australia Holdings Pty Ltd.	Co., Ltd. CSC Sonoma Pty Ltd.	General investment	100	100	100
Himag Magnetic Corporation	Himag Magnetic (Belize) Corporation	Magnetic powder trading	100	100	100
	MagnPower Corporation	Magnetic powder trading	50	50	-	Investment in September 2014
China Ecotek Corporation	CEC International Corp. CEC Development Co.	General investment General investment	100 100	100 100	100 100
	CEC Holding Co., Ltd. China Ecotek Construction Corporation	General investment Construction, interior design and decoration, and retail and wholesale of building materials	100 100	100 100	100 100

(Continued)

				Percentage of Ownership (%)
Investor	Investee	Main Businesses	June 30, 2015	December 31, 2014	June 30, 2014	Additional Descriptions
CEC International Corp.	China Ecotek India Private Limited	Planning, maintenance and management of eco-construction	100	100	100
CEC Development Co.	China Ecotek Vietnam Company Ltd. (CEVC)	and eco-equipment Engineering design and construction	100	100	100
	Xiamen Ecotek PRC Co., Ltd.	Metal materials agency and trading service	100	100	100
China Steel Chemical Corporation	Ever Glory International Co., Ltd.	International trading	100	100	100
	Ever Wealthy Investment Corporation	General investment	100	100	100
Ever Wealthy Investment Corporation	Ever Earning Investment Company	General investment	-	51	51	End of settlement in April 2015
	China Steel Carbon Materials Technology Co., Ltd.	General investment	100	100	100
China Steel Carbon Materials Technology Co., Ltd.	Changzhou China Steel New Carbon Technology Co., Ltd.	Processing and trading of mesocarbon microbeads products	100	100	100
Chung Hung Steel Corporation Ltd.	Taiwan Steel Corporation (TSC)	Not yet in operation	100	100	100
	Hung Kao Investment Corporation	General investment	100	100	100
	Hung Li Steel Corporation Ltd. (HLSC)	Steel product processing	100	100	100
CHC Resources Corporation	Union Steel Development Corp.	Manufacture and trading of metal powder and ore powder, and gift trading	93	93	93
	Pao Good Industrial Co., Ltd.	Slag powder processing and trading	51	51	51
	Yu Cheng Lime Corporation	Manufacture of other non-metal mineral product	90	90	90
China Steel Structure Co., Ltd.	United Steel Constructure Corporation (USCC)	Contract project of civil engineering and construction engineering, and steel structure installation	100	100	100
	China Steel Structure Investment Pte Ltd.	General investment	100	100	100
United Steel Constructure Corporation	United Steel Investment Holding Co., Ltd.	General investment	-	-	100	End of settlement in August 2014
	United Steel Investment Pte Ltd.	General investment	100	100	100
	Lian Chuan Construction Consultation (Shanghai) Co., Ltd.	Engineering technology consulting	-	-	100	End of settlement in August 2014
	United Steel Construction Vietnam Co., Ltd.	Civil engineering construction and other business contract and management	100	100	100
	United Steel Development Co., Ltd.	Construction development and rental business	100	100	100
United Steel Investment Holding Co., Ltd.	United Steel International Co., Ltd.	General investment	-	-	100	Reorganization to CSAPH in July 2014
China Steel Structure Investment Pte Ltd.	China Steel Structure Holding Co., Ltd.	General investment	63	63	63	Direct and indirect ownerships amounted to 100%
China Steel Structure Holding Co., Ltd.	China Steel Structure Investment Co., Ltd.	General investment	100	100	100
China Steel Structure Investment Co., Ltd.	Chung-Kang Steel Structure (Kunshan) Co., Ltd.	Steel structure installation, consulting and steel plate cutting	100	100	100
China Steel Resources Corporation (CSRC)	Fa Long Storage Corporation	Storage and delivery of Waste	-	-	-	Investment in August 2014; merged with CSRC in November 2014

Explanations for subsidiaries which are less than 50% owned but included in the consolidated

(Concluded)

a) The actual operations of CEC, CSCC, CHSC, CHC, CSSC, BETA and NZMTCL are controlled by the respective board of directors. The Corporation and other subsidiaries jointly had more than half of the seats in the board of directors of CEC, CSCC, CHSC, CHC, CSSC, BETA and NZMTCL. The actual operation of CSHB is also controlled by the board of directors. The Corporation's subsidiaries had control of more than half of the voting rights in the board of directors. Therefore, the Corporation had control-in-substance over the aforementioned entities and included them in the consolidated entities.

entities are as follows:

b) The chairman and general manager of TMTC are designated by other subsidiaries in order to control its finance, operation, and human resources. Therefore, the Corporation had control-in-substance over TMTC and included it in the consolidated entities.

2) Honley Auto. Parts Co., Ltd. (Honely), of which the Corporation held 50% equity as of June 30, 2014 is not included in the consolidated entities since the Corporation expects to hold only 30% equity after the second capital increase based on agreements between shareholders and has no control over the board of directors. The Corporation held 30% equity of Honley as of June 30, 2015 and December 31, 2014.
3) The Corporation had no subsidiary with material non-controlling interests.
d. Other significant accounting policy

Except for the following, please refer to the summary of significant accounting policy in the consolidated financial statements for the year ended December 31, 2014.

1) Retirement benefits

Defined benefit costs (including service cost, net interest and remeasurement) under the defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost (including current service cost, past service cost, as well as gains and losses on settlements) and net interest on the net defined benefit liability (asset) are recognized as employee benefits expense in the period they occur, when the plan amendment or curtailment occurs and the settlement occurs. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which they occur. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liability (asset) represents the actual deficit (surplus) in the Corporation and its subsidiaries' defined benefit plan. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant plan amendments, settlements, or other significant one-off events.

2) Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated on an interim period's pre-tax income by applying to the tax rate that would be applicable to expected total annual earnings.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The same critical accounting judgments and key sources of estimation uncertainty of consolidated financial statements have been followed in these consolidated financial statements as those applied in the preparation of the consolidated financial statements for the year ended December 31, 2014.

6. CASH AND CASH EQUIVALENTS

	June 30, 2015	December 31, 2014	June 30, 2014
Cash on hand	\$ 47,527	\$ 60,515	\$ 43,861
Checking accounts and demand deposits	15,061,408	8,141,918	9,060,617
Cash equivalents
Commercial papers with repurchase
agreements	181,146	1,420,060	7,819,250
Time deposits with original maturities less than
three months	4,362,585	3,599,520	4,352,104
Bonds with repurchase agreements	30,000	410,000	3,247,120
	\$ 19,682,666	\$ 13,632,013	\$ 24,522,952

Cash and cash equivalents shown in the consolidated statements of cash flows can be reconciled to the related items in the consolidated balance sheets. The reconciliation information as of June 30, 2015 and 2014 was shown in the consolidated statements of cash flows; the reconciliation information as of December 31, 2014 was as follows:

	December 31, 2014
Cash and cash equivalents Bank overdraft	\$ 13,632,013 (2,972,356)
	\$ 10,659,657

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

	June 30, 2015	December 31, 2014	June 30, 2014
Financial assets at FVTPL - current
Financial assets designated as at FVTPL
Mutual funds	\$ 3,395,834	\$ 2,712,871	\$ 4,800,424
Structured notes	40,117	72,601	89,542
Listed shares	33,413	29,769	48,537
Future contracts (a)	-	78	-
	3,469,364	2,815,319	4,938,503
Financial assets held for trading
Listed shares	1,050,062	892,664	1,152,444
Mutual funds	1,009,726	1,228,816	1,159,687
Emerging market shares	258,610	276,613	275,574
Convertible bonds	115,899	192,205	176,740
Foreign exchange forward contracts (b)	3,155	13,134	2,081
	2,437,452	2,603,432	2,766,526
	\$ 5,906,816	\$ 5,418,751	\$ 7,705,029

(Continued)

	June 30, 2015	December 31, 2014	June 30, 2014
Financial assets at FVTPL - noncurrent
Financial assets designated as at FVTPL Convertible preference shares	\$ -	\$ 31,842	\$ -
Financial liabilities at FVTPL - current
Financial liabilities designated as at FVTPL Call and put options (Note 20)	\$ 3,323	\$ 1,631	\$ 1,332
Financial liabilities held for trading Foreign exchange forward contracts (b) Futures contracts (a)	989 -	5,518 -	3,062 84
	\$ 4,312	\$ 7,149	\$ 4,478 (Concluded)

a. The subsidiary TMTC entered into precious metals futures contracts to manage fair value exposures arising from price fluctuation on precious metals. However, some of those contracts did not meet the criteria of hedge effectiveness and therefore were not accounted for by using hedge accounting. As of June 30, 2014 and December 31, 2014, the outstanding precious metals futures contracts were as follows:

Maturity Date	Weight (Kilograms)	Amount (In thousands)
December 31, 2014 June 10, 2015	150	\$ ( RMB	2,770 544 thousand)
June 30, 2014 December 15, 2014	1,035	( RMB	21,526 4,474 thousand)

b. The Corporation and its subsidiaries entered into foreign exchange forward contracts to manage exposures due to exchange rate fluctuations of foreign currency denominated assets and liabilities. However, some of those contracts did not meet the criteria of hedge effectiveness and therefore were not accounted for by using hedge accounting. The outstanding foreign exchange forward contracts not under hedge accounting of the Corporation and its subsidiaries at the balance sheet date were as follows:

	Currency	Maturity Date	Contract Amount (In Thousands)
June 30, 2015
Buy Sell Sell	NTD/USD USD/NTD EUR/NTD	September 2015-November 2015 August 2015 August 2015	NTD92,335/USD3,080 USD5,631/NTD173,931 EUR2,002/NTD69,886
December 31, 2014
Buy	NTD/USD	January 2015-November 2015	NTD398,196/USD13,000 (Continued)

	Currency	Maturity Date	Contract Amount (In Thousands)
Buy	NTD/EUR	March 2015	NTD9,880/EUR246
Sell	USD/NTD	February 2015	USD10,373/NTD323,702
June 30, 2014
Buy	NTD/GBP	July 2014-December 2014	NTD 29,785/GBP603
Buy	NTD/JPY	December 2014	NTD13,487/JPY37,460
Buy	NTD/USD	July 2014	NTD8,940/USD297
Sell	USD/NTD	July 2014-August 2014	USD16,543/NTD495,598
Sell	EUR/NTD	August 2014	EUR4,207/NTD171,669
Sell	HKD/NTD	August 2014	HKD9,266/NTD35,765
Sell	JPY/NTD	August 2014	JPY100,250/NTD29,293
			(Concluded)

8. AVAILABLE-FOR-SALE FINANCIAL ASSETS

	June 30, 2015	December 31, 2014	June 30, 2014
Current
Domestic investments
Listed shares	\$ 4,831,825	\$ 5,607,391	\$ 5,804,251
Mutual funds	1,542,223	996,300	1,142,487
Unlisted shares	5,538	5,600	5,547
	6,379,586	6,609,291	6,952,285
Foreign investments
Listed shares	3,050	42,333	56,985
	\$ 6,382,636	\$ 6,651,624	\$ 7,009,270
Noncurrent
Domestic investments
Emerging market shares and unlisted shares	\$ 6,497,257	\$ 6,315,609	\$ 6,440,855
Listed shares	2,725,091	2,771,076	2,615,253
Private-placement shares of listed companies	266,472	84,133	131,898
	9,488,820	9,170,818	9,188,006
Foreign investments
Unlisted shares	17,765,813	13,837,749	15,115,003
Listed shares	1,829,899	1,623,569	1,896,766
Certificate of entitlement	952,166	6,470,256	6,140,745
	20,547,878	21,931,574	23,152,514
	\$ 30,036,698	\$ 31,102,392	\$ 32,340,520

In April 2015, due to the equity structure adjustment made by Formosa Ha Tinh Steel Corporation, the Corporation transferred its 5% certificate of entitlement of Formosa Ha Tinh Steel Corporation to the shares of Formosa Ha Tinh (Cayman) Limited, with the percentage of ownership remained the same. In June 2015, the Corporation transferred the aforementioned shares to its subsidiary CSAPH.

In June 2015, the Corporation prepaid the investment of NT\$163,985 thousand (USD5,320 thousand) in Sakura Ferroalloys Sdn. Bhd. The Corporation has received 52,200 thousand preference C shares of

Sakura Ferroalloys Sdn. Bhd. in July 2015.

In May 2011, the subsidiary EVCC invested in Taiwan Liposome Company, Ltd. through its private placement, and the subsidiary GIC and Eminence Investment Corporation invested in Brogent Technologies Inc. through its private placement in June 2015. According to the Securities Exchange Act, the securities acquired by private placement could be transferred freely in public market only after held for three years starting from the delivery date. Those securities of Taiwan Liposome Company Ltd. held by the subsidiary EVCC have been released from the 3-year lock-up period since May 2014. However, GreTai Securities Market has not approved the listing of those securities; thus, the securities cannot be transferred freely in public market yet.

9. HELD-TO-MATURITY FINANCIAL ASSETS - NONCURRENT

	June 30, 2015	December 31, 2014	June 30, 2014
Structured notes	\$ 168,213	\$ 171,720	\$ 163,796
Guarantee debt certificates	113,256	115,314	110,662
Corporate bonds	29,838	-	-
	311,307	287,034	274,458
Less: Accumulated impairment	64,045	64,045	64,045
	\$ 247,262	\$ 222,989	\$ 210,413

10. DERIVATIVE FINANCIAL INSTRUMENTS FOR HEDGING

	June 30, 2015	December 31, 2014	June 30, 2014
Derivative financial assets for hedging - current
Foreign exchange forward contracts (a)	\$ 53,393	\$ 62,992	\$ 34,846
Derivative financial assets for hedging - noncurrent
Foreign exchange forward contracts (a) Interest rate swap contracts (b)	\$ 20,724 -	` \$ 85,940 2,029	\$ 8,249 15,631
	\$ 20,724	\$ 87,969	\$ 23,880
Derivative financial liabilities for hedging - current
Foreign exchange forward contracts (a)	\$ 74,728	\$ 46,327	\$ 25,005
Derivative financial liabilities for hedging - noncurrent
Foreign exchange forward contracts (a) Interest rate swap contracts (b)	\$ 26,650 19,792	\$ 748 9,312	\$ 4,500 2,500
	\$ 46,442	\$ 10,060	\$ 7,000

a. The Corporation and its subsidiaries entered into foreign exchange forward contracts to manage cash flow and fair value exposures arising from exchange rate fluctuations on foreign-currency capital expenditures and sales and purchases contracts. The outstanding foreign exchange forward contracts of the Corporation and its subsidiaries at the balance sheet date were as follows:

	Currency	Period for Generating Cash Flows and Maturity Date	Contract Amount (In Thousands)
June 30, 2015
Buy	NTD/USD	July 2015-December 2018	NTD1,475,143/USD50,222
Buy	NTD/EUR	July 2015-December 2017	NTD1,144,002/EUR30,648
Buy	NTD/JPY	July 2015-December 2019	NTD256,884/JPY947,685
Sell	JPY/NTD	August 2015	JPY200,000/NTD50,416
December 31, 2014
Buy	NTD/USD	January 2015-May 2018	NTD2,094,852/USD71,250
Buy	NTD/EUR	March 2015-December 2017	NTD997,986/EUR25,724
Buy	NTD/JPY	January 2015-June 2015	NTD200,733/JPY623,158
Buy	NTD/GBP	January 2015	NTD10,335/GBP226
Sell	USD/NTD	March 2015	USD424/NTD13,433
June 30, 2014
Buy	NTD/USD	July 2014-May 2018	NTD2,877,616/USD98,134
Buy	NTD/EUR	July 2014-October 2016	NTD447,816/EUR11,199
Buy	NTD/JPY	July 2014-June 2015	NTD392,593/JPY1,284,083
Buy	NTD/GBP	January 2015	NTD10,335/GBP226
Sell	USD/NTD	August 2014	USD299/NTD8,970

b. The subsidiary DSC entered into interest rate swap contracts to manage cash flow exposures arising from interest rate fluctuations on bank loans. The outstanding interest rate swap contracts as of June 30, 2015, December 31, 2014 and June 30, 2014 were all as follows:

Contract Amount (In Thousands)	Maturity Date	Range of Interest Rates Paid (%)	Range of Interest Rates Received
June 30, 2015
NTD9,277,000	February 2017-July 2018	0.988-1.14	90 days fixing TAIBOR rate provided by Thomson Reuters
December 31, 2014
NTD9,277,000	February 2017-July 2018	0.988-1.14	90 days TWD CPBA
June 30, 2014
NTD9,277,000	February 2017-July 2018	0.988-1.14	90 days TWD CPBA

c. Movements of derivative financial instruments for hedging were as follows:

	For the Three Months Ended June 30		For the Six Months Ended June 30
	2015	2014	2015	2014
Balance, beginning of period Recognized in other	\$ (52,026)	\$ 82,800	\$ 94,574	\$ 10,379
comprehensive income	4,526	(45,151)	(147,744)	11,140
Recognized in operating costs	-	(1,344)	-	-
Recognized in other gains and losses	7,414	1,781	4,145	16,252
Transferred to construction in progress and equipment to be
inspected	(6,967)	(8,849)	3,312	(10,605)
Transferred to operating revenues	-	(2,516)	(1,340)	(445)
Balance, end of period	\$ (47,053)	\$ 26,721	\$ (47,053)	\$ 26,721

11. NOTES AND ACCOUNTS RECEIVABLE, NET (INCLUDING RELATED PARTIES)

	June 30,	December 31,	June 30,
	2015	2014	2014
Notes receivable
Operating	\$	\$	\$
	1,555,324	1,404,884	1,242,244
Non-operating	-	1,085	-
	1,555,324	1,405,969	1,242,244
Less: Allowance for doubtful accounts	-	-	-
	\$	\$	\$
	1,555,324	1,405,969	1,242,244
Accounts receivable	\$	\$	\$
	10,870,073	11,693,587	11,968,092
Less: Allowance for doubtful accounts	144,565	139,949	23,085
	\$	\$	\$
	10,725,508	11,553,638	11,945,007

The allowance for doubtful accounts was recognized based on estimated irrecoverable amounts determined by reference to the account aging analysis, past default experience of the customers and analysis of customers' current financial position. In determining the recoverability of an account receivable, the Corporation and its subsidiaries considered any change in the credit quality of the account receivable since the credit was initially granted to the end of the reporting period. For the past due notes and accounts receivable not collected after executing legal procedures, the Corporation and its subsidiaries will recognize 100% allowance for doubtful accounts.

The Corporation and its subsidiaries had not recognized an allowance for some notes and accounts receivable that are past due at the balance sheet date because there had not been a significant change in credit quality and the amounts were still considered recoverable. The Corporation and its subsidiaries did not hold any collateral or other credit enhancement for these balances.

The aging of notes and accounts receivable was as follows:

	June 30, 2015	December 31, 2014	June 30, 2014
Not past due	\$ 11,347,957	\$ 12,078,602	\$ 12,574,917
1 to 30 days	423,386	305,516	327,602
31-60 days	169,421	172,686	83,342
61-365 days	317,492	365,229	148,713
More than 365 days	22,576	37,574	52,677
	\$ 12,280,832	\$ 12,959,607	\$ 13,187,251

Aging analysis of notes and accounts receivable that are past due but not impaired was as follows:

	June 30,	December 31,	June 30,
	2015	2014	2014
Less than 31	\$	\$	\$
days	423,386	304,549	326,926
31-60 days	169,421	172,557	82,667
61-365 days	264,194	358,494	142,646
More than 365 days	22,576	37,574	51,622
	\$	\$	\$
	879,577	873,174	603,861

Above analysis was based on the past due date.

Movements in the allowance for doubtful accounts recognized on accounts receivable were as follows:

	For the Six June 30	Months Ended
	2015	2014
Balance, beginning of period	\$ 139,949	\$ 17,492
Recognition	17,270	5,839
Write off	(450)	(75)
Effect of foreign currency exchange difference	(12,204)	(171)
Balance, end of period	\$ 144,565	\$ 23,085

Aging analysis of individually impaired accounts receivable was as follows:

	June 30,	December 31,	June 30,
	2015	2014	2014
Less than 31 days	\$	\$	\$
	-	911	-
31-60 days	-	129	675
61-365 days	53,298	6,735	6,067
More than 365 days	-	-	1,055
	\$	\$	\$
	53,298	7,775	7,797

Above analysis of accounts receivable after deducting the allowance for doubtful accounts was based on the past due date.

Retentions receivable from construction contracts included in the accounts receivable did not bear interests; they were expected to be received upon the satisfaction of conditions specified in each contract for the payment of such amounts during retention periods, which were within normal operating cycle of the Corporation and its subsidiaries, usually more than twelve months. Refer to Note 12 for details on construction contracts.

The Corporation and the subsidiary CHSC and CSAC entered into accounts receivable factoring agreements (without recourse) with Mega International Commercial Bank, Bank of Taiwan and HSBC Bank. Under the agreements, the Corporation and its subsidiaries are empowered to sell accounts receivable to the banks upon the delivery of products to customers and are required to complete related formalities at the next banking day.

For the six months ended June 30, 2015 and 2014, the related information for the Corporation, CHSC and CSAC's sale of accounts receivable was as follows. Advances received at period-end dominated in US Dollars were converted to NT Dollars at the closing rate.

Counterparty	Advances Received at Period - Beginning	Receivables Sold	Amounts Collected by Bank	Advances Received at Period - End	Interest Rate on Advances Received (%)	Credit Line
For the Six Months Ended June 30, 2015
Mega International Commercial Bank	\$ 5,095,755	\$ 6,705,559	\$ 7,885,936	\$ 3,915,378	1.27-1.51	NT\$12 billion
Mega International Commercial Bank	25,855	16,745	38,309	10,247	1.00-1.75	USD1,200 thousand
Bank of Taiwan	1,736,174	2,109,096	3,172,777	672,493	1.27-1.51	NT\$3 billion
Bank of Taiwan	357,521	1,597,193	1,223,054	731,660	1.46-1.49	USD0.1 billion
HSBC Bank	10,906	19,591	16,148	3,143	1.50-1.70	USD10,000 thousand
	\$ 7,226,211	\$ 10,448,184	\$ 12,336,224	\$ 5,332,921
For the Six Months Ended June 30, 2014
Mega International Commercial Bank	\$ 4,773,367	\$ 6,675,117	\$ 6,276,701	\$ 5,171,783	1.26-1.51	NT\$12 billion
Bank of Taiwan Bank of Taiwan	1,432,364 -	1,930,075 85,331	1,860,787 223	1,501,652 85,108	1.26-1.51 1.93	NT\$3 billion USD0.1 billion
	\$ 6,205,731	\$ 8,690,523	\$ 8,137,711	\$ 6,758,543

12. AMOUNTS DUE FROM (TO) CUSTOMERS FOR CONSTRUCTION CONTRACTS

	June 30,	December 31,	June 30,
	2015	2014	2014
Amounts due from customers for construction contracts
Construction costs incurred plus recognized profits less recognized losses to date Less: Progress billings	\$ 56,453,248 47,567,824	\$ 45,010,292 37,696,810	\$ 53,937,814 46,573,403
Amounts due from customers for construction	\$	\$	\$
contracts	8,885,424	7,313,482	7,364,411

(Continued)

	June 30, 2015	December 31, 2014	June 30, 2014
Amounts due to customers for construction contracts
Progress billings Less: Construction costs incurred plus recognized profits less recognized	\$ 22,754,560	\$ 30,654,853	\$ 30,432,888
losses to date	18,932,812	25,251,815	24,930,329
Amounts due to customers for construction contracts	\$ 3,821,748	\$ 5,403,038	\$ 5,502,559
Retentions receivable Retentions payable	\$ 1,097,433 \$ 2,248,782	\$ 918,608 \$ 2,169,421	\$ 769,293 \$ 2,123,685 (Concluded)

13. INVENTORIES

	June 30, 2015	December 31, 2014	June 30, 2014
Finished goods	\$ 19,370,553	\$ 22,562,383	\$ 19,816,082
Work in progress	21,172,189	21,383,356	20,797,006
Raw materials	23,646,157	22,326,115	20,730,299
Supplies	9,256,240	8,983,173	9,108,544
Raw materials and supplies in transit	5,022,541	4,965,094	6,355,990
Lands held for construction	142,688	142,688	-
Buildings and lands under construction
Land under construction	245,002	411,907	411,907
Construction in progress	205,964	25,758	14,750
Payment for floor area	15,489	26,041	26,041
Others	308,580	376,653	420,862
	\$ 79,385,403	\$ 81,203,168	\$ 77,681,481

The subsidiary CPDC has planned a housing development project on a portion of land located in Shijia Section of the Qianzhen District in Kaohsiung City which was initially for the purpose of rental. The project has been approved by the Urban Development Bureau, Kaohsiung City government and is in the process of designing; therefore, the related balances are recorded as lands under construction.

The cost of inventories recognized as operating costs for the three months and six months ended June 30, 2015 and 2014 was NT\$55,640,743 thousand, NT\$69,797,973 thousand, NT\$115,295,717 thousand and NT\$142,190,236 thousand, respectively.

Movements of provision for loss on inventories were as follows:

	Ended June	For the Three Months 30	For the Six Months Ended June 30
	2015	2014	2015	2014
Balance, beginning of period Add: Recognized	\$ 7,438,573 4,357,291	\$ 4,549,168 1,369,625	\$ 5,923,626 8,466,828	\$ 4,677,333 3,727,473 (Continued)

	Ended June	For the Three Months 30	For the Six Months Ended June 30
	2015	2014	2015	2014
Less: Sold	\$ 3,718,048	\$ 1,253,743	\$ 6,312,638	\$ 3,739,756
Balance, end of period	\$ 8,077,816	\$ 4,665,050	\$ 8,077,816	\$ 4,665,050 (Concluded)

14. DEBT INVESTMENTS WITH NO ACTIVE MARKET

	June 30, 2015	December 31, 2014	June 30, 2014
Noncurrent
Unlisted preference shares - overseas East Asia United Steel Corporation (EAUS) -
Preference A	\$ 1,682,751	\$ 2,646,000	\$ 2,946,000
Subordinated financial bonds	124,163	124,270	120,000
Bonds	80,890	36,327	30,299
	\$ 1,887,804	\$ 2,806,597	\$ 3,096,299

In May 2003, the Corporation signed a slab production joint-venture contract with Sumitomo Metal Industries, Ltd. and Sumitomo Corporation. In July 2003, the joint venture company EAUS was established. The Corporation invested JPY10 billion in EAUS to acquire 10,000 shares of preference A. The Corporation thus has a stable supply of slab from this joint venture. The Corporation also signed a contract with the subsidiary CHSC to transfer the purchasing right of slabs from EAUS, and the Corporation receives royalty on this contract based on the volume purchased by CHSC.

In April 2015, the Corporation sold 3,333 shares of preference A of EAUS to Sumitomo Metal Industries, Ltd. amounted to JPY 3.333 billion. The loss on disposal of the above transaction is considered immaterial.

15. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

	June 30,	December 31,	June 30,
	2015	2014	2014
Material associates	\$	\$	\$
7623704 Canada Inc.	8,472,013	8,564,690	7,813,152
Associates that are not individually material	5,226,176	4,854,712	3,653,145
	\$	\$	\$
	13,698,189	13,419,402	11,466,297

a. Material associates

			Percentage of Ownership and Voting Rights (%)
Name of Associate	Nature of Activities	Principal Place of Business	June 30, 2015	December 31, 2014	June 30, 2014
7623704 Canada Inc.	Mineral Investment	Canada	25	25	25

The summarized financial information below represent amounts shown in the financial statements of 7623704 Canada Inc. which were prepared in accordance with IFRSs, which were converted to the functional currency and adjusted for the purposes of applying equity method.

	June 30, 2015	December 31, 2014	June 30, 2014
Current assets Noncurrent assets Current liabilities Noncurrent liabilities	\$ 572,707 33,945,105 (287) -	\$ 85,261 34,815,802 (127) -	\$ 74,117 31,724,787 (480) -
Equity	\$ 34,517,525	\$ 34,900,936	\$ 31,798,424
Percentage of the Corporation and its subsidiaries' ownership (%)	25	25	25
Equity attributable to the Corporation and its subsidiaries (carrying amount of the investment)	\$ 8,472,013	\$ 8,564,690	\$ 7,813,152

	Ended June	For the Three Months 30	For the Six Months Ended June 30
	2015	2014	2015	2014
Total comprehensive income for the period	\$ 161,431	\$ 62,264	\$ 893,523	\$ 1,047,680
Dividends received from 7623704 Canada Inc.	\$ 94,726	\$ -	\$ 94,726	\$ 224,787
Comprehensive income attributable to the Corporation and its subsidiaries	\$ 39,616	\$ 15,280	\$ 219,271	\$ 257,101

b. Associates that are not individually material

	June 30, 2015		December 31, 2014			June 30, 2014
		Amount	% of Owner - ship	Amount	% of Owner - ship		Amount	% of Owner - ship
Listed company
Chateau International Development
Co., Ltd.	\$	300,563	20	\$ 299,517	20	\$	276,443	20
Unlisted companies
Kaohsiung Arena Development
Corporation		763,459	29	776,932	29		759,068	29
Eminent Venture Capital Corporation		704,022	46	704,647	46		618,244	46
Taiwan Rolling Stock Co., Ltd.		502,753	36	-	-		-	-
Hsin Hsin Cement Enterprise Corp.		468,734	41	483,927	41		478,888	41
Fukuta Elec. A Mach. Co., Ltd.		363,858	25	360,257	25		-	-
Dyna Rechi Co., Ltd.		363,185	28	378,885	28		221,542	29
								(Continued)

	June 30, 2015			December 31, 2014		June 30, 2014
		Amount	% of Owner - ship	Amount	% of Owner - ship	Amount	% of Owner - ship
Honley Auto. Part Co., Ltd. (Note 4)	\$	275,010	30	\$ 284,726	30	\$ 138,529	50
Wuhan Wisco Yutek Environment
Technology Co., Ltd.		235,969	49	252,372	49	240,072	49
Ascentek Venture Capital Corp.		233,733	38	239,375	38	221,769	39
IPASS Corporation (Note 32)		138,833	23	140,899	23	143,579	32
White Biotech Corporation		16,409	18	18,346	18	22,707	18
Others		859,648		914,829		532,304
		\$ 5,226,176		\$ 4,854,712		\$ 3,653,145
							(Concluded)

In June 2015, the Corporation increased NTD260,866 thousand investment in Taiwan Rolling Stock Co., Ltd. and acquired 24,610 thousand common shares, which increased the total shareholding from 19% to 36%. As the result, the investment in Taiwan Rolling Stock Co., Ltd. was reclassified from available-for-sale financial assets to investments accounted for using equity method.

In 2014, the Corporation continually invested NT\$285,000 thousand to acquire 30% shareholding in HAPC. HAPC mainly engages in the manufacture and sale of automobiles parts.

In June 2015, the Corporation joined the cash capital increase of White Biotech Corporation through prepaid investment of NT\$800,000 thousand and has acquired 80,000 thousand common shares in July 2015, with increasing the total shareholding from 18% to 87%.

In June 2015, the subsidiary of CSAPH invested in Sino Vietnam Hi-tech Material Co. Ltd through prepaid investment of NT\$61,720 thousand (USD2,000 thousand) and has acquired 20% of shareholding in July 2015.

	Ended June	For the Three Months 30	For the Six Months Ended June 30
	2015	2014	2015	2014
The Corporation and its subsidiaries' share of Net profit (loss) for the period Other comprehensive income	\$ (24,892) (120,944)	\$ 50,676 176,559	\$ (18,439) 478,420	\$ 64,862 49,803
Total comprehensive income	\$ (145,836)	\$ 227,235	\$ 459,981	\$ 114,665

Fair values (Level 1) of investments in associates with available published price quotation are summarized as follows:

	June 30, 2015	December 31, 2014	June 30, 2014
Chateau International Development Co., Ltd.	\$	\$	\$
	850,926	827,539	690,473

Except for some companies, investments accounted for using equity method as of June 30, 2015 and 2014, and the share of profit and other comprehensive income of those investments for the three months and six months ended June 30, 2015 and 2014, were calculated based on the reviewed financial statements. The Corporation's management considered the use of unreviewed financial statements as acceptable and will not have material impact on the equity method investments and income.

On February 13, 2015, the Corporation's board of directors approved investing USD939,135 thousand to acquire 20% shareholding of Formosa Ha Tinh (Cayman) Limited through its subsidiary CSAPH, which will increase the total shareholding from 5% to 25%. As of the date the consolidated financial statements were reported to the board of directors and approved for issue, the above investment hasn't been paid.

16. OTHER FINANCIAL ASSETS

	June 30, 2015	December 31, 2014	June 30, 2014
Current
Pledged time deposits Time deposits with original maturities more than	\$ 6,530,004	\$ 7,066,159	\$ 6,913,312
three months	3,376,418	4,723,815	4,807,147
Hedging foreign-currency deposits	2,428,181	1,918,252	2,164,576
Deposits for projects	251	6,192	17,937
	\$ 12,334,854	\$ 13,714,418	\$ 13,902,972
Noncurrent
Pledged receivables	\$ 2,000,000	\$ 2,000,000	\$ 2,000,000
Pledged time deposits	428,641	289,537	301,596
Deposits for projects	65,619	65,580	49,823
Time deposits with original maturities more than three months	21,670	21,670	21,670
	\$ 2,515,930	\$ 2,376,787	\$ 2,373,089

For the purpose of managing cash flow risk arising from exchange rate fluctuations due to purchasing imported equipment, the Corporation and its subsidiaries purchased foreign-currency deposits and entered into foreign exchange forward contracts (Note 10). As of June 30, 2015, December 31, 2014 and June 30, 2014, the balance of the foreign-currency deposits, which consist of those designated as hedging instruments and were settlements of expired foreign exchange forward contracts, was NT\$2,428,181 thousand (JPY0.6 billion, RMB 61,982 thousand, USD52,736 thousand, EUR9,031 thousand and GBP786 thousand), NT\$1,918,252 thousand (JPY0.4 billion, RMB65,000 thousand, USD40,181 thousand, EUR4,211 thousand and GBP783 thousand) and NT\$2,164,576 thousand (JPY1 billion, USD40,683 thousand, EUR5,969 thousand and GBP783 thousand), respectively. As of June 30, 2015, December 31, 2014 and June 30, 2014, cash outflows would be expected from aforementioned contracts for the periods from 2015, from 2015 and from 2014 to 2015, respectively.

Movements of hedging foreign-currency deposits were as follows:

	For the Three Months Ended June 30		For the Six Months Ended June 30
	2015	2014	2015	2014
Balance, beginning of period	\$ 2,074,934	\$ 2,398,471	\$ 1,918,252	\$ 2,169,062
Increase (Decrease)	374,883	(196,691)	577,959	(11,022)
Recognized in other comprehensive
income	(26,394)	(34,921)	(66,055)	8,375
				(Continued)

		For the Three Months Ended June 30	For the Six Months Ended June 30
	2015	2014	2015	2014
Transferred to construction in progress and equipment to be inspected	\$ 4,758	\$ (2,283)	\$ (1,975)	\$ (1,839)
Balance, end of period	\$ 2,428,181	\$ 2,164,576	\$ 2,428,181	\$ 2,164,576 (Concluded)

Refer to Note 33 for information relating to other financial assets pledged as security.

17. PROPERTY, PLANT AND EQUIPMENT

For the six months ended June 30, 2015

	Land	Land Improvements	Buildings	Machinery and Equipment	Transportation Equipment	Other Equipment	Spare Parts	Rental Assets	Construction in Progress and Equipment to be Inspected	Total
Cost
Balance at January 1, 2015 Additions Disposals Reclassification	\$ 61,194,127 1,110,247 - -	\$ 4,877,697 77,923 - -	\$ 112,387,766 3,033,809 (52,225) 25,227	\$ 587,056,811 9,307,857 (1,089,628) (237,228)	\$ 28,944,254 2,291,279 (45,732) 795	\$ 15,946,643 456,159 (136,647) 234,111	\$ 10,398,069 720,326 (487,124) (638)	\$ 322,270 - - -	\$ 34,452,787 (4,577,863) - (15,565)	\$ 855,580,424 12,419,737 (1,811,356) 6,702
Effect of foreign currency exchange difference	(4,878)	(1,947)	(233,780)	(1,021,759)	(620,815)	(37,420)	-	-	(91,626)	(2,012,225)
Balance at June 30, 2015	\$ 62,299,496	\$ 4,953,673	\$ 115,160,797	\$ 594,016,053	\$ 30,569,781	\$ 16,462,846	\$ 10,630,633	\$ 322,270	\$ 29,767,733	\$ 864,183,282
Accumulated depreciation and impairment
Balance at January 1, 2015 Depreciation Disposals Reclassification Effect of foreign currency exchange	\$ 25,546 - - -	\$ 4,420,094 34,870 - -	\$ 37,332,787 1,796,479 (51,147) (13,876)	\$ 325,618,887 14,039,661 (991,215) (311)	\$ 13,979,627 760,132 (44,869) 744	\$ 10,697,752 623,651 (133,781) (6,864)	\$ 4,190,881 646,343 (487,124) -	\$ 881 5,283 - -	\$ - - - -	\$ 396,266,455 17,906,419 (1,708,136) (20,307)
difference	-	(33)	(53,482)	(354,579)	(382,674)	(25,002)	-	-	-	(815,770)
Balance at June 30, 2015	\$ 25,546	\$ 4,454,931	\$ 39,010,761	\$ 338,312,443	\$ 14,312,960	\$ 11,155,756	\$ 4,350,100	\$ 6,164	\$ -	\$ 411,628,661
Carrying amount at June 30, 2015 Carrying amount at December 31,	\$ 62,273,950	\$ 498,742	\$ 76,150,036	\$ 255,703,610	\$ 16,256,821	\$ 5,307,090	\$ 6,280,533	\$ 316,106	\$ 29,767,733	\$ 452,554,621
2014	\$ 61,168,581	\$ 457,603	\$ 75,054,979	\$ 261,437,924	\$ 14,964,627	\$ 5,248,891	\$ 6,207,188	\$ 321,389	\$ 34,452,787	\$ 459,313,969

For the six months ended June 30, 2014

	Land	Land Improvements	Buildings	Machinery and Equipment		Transportation Equipment		Other Equipment	Spare Parts	Rental Assets	Construction in Progress and Equipment to be Inspected	Total
Cost
Balance at January 1, 2014 Additions Disposals Reclassification	\$ 60,395,056 - - -	\$ 4,876,444 1,253 - -	\$ 107,286,428 709,634 (789) 125,178	\$ 560,158,429	11,037,193 (1,480,697) (60,603)	\$ 25,096,303 1,747,145 (112,675) 11,387		\$ 15,306,847 491,115 (140,500) 17,973	\$ 10,285,676 701,506 (464,969) (101,816)	\$ - - - -	\$ 46,150,896 (439,275) - (228,411)	\$ 829,556,079 14,248,571 (2,199,630) (236,292)
Effect of foreign currency exchange difference Others	2,049 -	- -	(22,478) -		50,886 (351)	(467,892) -	(	256) 33	- (362)	- -	71,391 -	(366,300) (680)
Balance at June 30, 2014 Accumulated depreciation and impairment	\$ 60,397,105	\$ 4,877,697	\$ 108,097,973	\$ 569,704,857		\$ 26,274,268		\$ 15,675,212	\$ 10,420,035	\$ -	\$ 45,554,601	\$ 841,001,748
Balance at January 1, 2014 Depreciation Disposals Reclassification	\$ 25,546 - - -	\$ 4,351,474 34,576 - -	\$ 33,920,610 1,696,960 (257) 18,370	\$ 301,901,198	13,461,583 (1,382,087) (1,511)	\$ 13,232,418 668,662 (111,440) 541	\$	9,682,984 662,262 (131,559) (809)	\$ 3,699,555 753,071 (464,969) -	\$ - - - -	\$ - - - -	\$ 366,813,785 17,277,114 (2,090,312) 16,591
Effect of foreign currency exchange difference Others	- -	- -	(165) -		26,475 (230)	(473,952) -		167 33	- -	- -	- -	(447,475) (197)
Balance at June 30, 2014	\$ 25,546	\$ 4,386,050	\$ 35,635,518	\$ 314,005,428		\$ 13,316,229		\$ 10,213,078	\$ 3,987,657	\$ -	\$ -	\$ 381,569,506
Carrying amount at June 30, 2014	\$ 60,371,559	\$ 491,647	\$ 72,462,455	\$ 255,699,429		\$ 12,958,039	\$	5,462,134	\$ 6,432,378	\$ -	\$ 45,554,601	\$ 459,432,242

The above items of property, plant and equipment were depreciated on a straight-line basis over the following useful lives:

Land improvements
Drainage system	40 years
Wharf	20-40 years
Canal	15 years
Others	5-15 years
Buildings
Main structure	10-60 years
Facility	15-40 years
Mechanical and electrical facilities	7-20 years
Trellis and corrugated iron building	5-10 years
Others	3-10 years
Machinery and equipment
Power equipment	15-25 years
Process equipment	8-25 years
Lifting equipment	8-25 years
Electrical equipment	5-15 years
High-temperature equipment	5-10 years
Examination equipment	3-10 years
Others	2-25 years
Transportation
Ship equipment	18-25 years
Railway equipment	10-20 years
Transportation equipment	3-10 years
Telecommunication equipment	4-8 years
Others	2 years
Other equipment
Leasehold improvement	3-35 years
Tank	3-18 years
Office, air condition and extinguishment equipment	3-25 years
Computer equipment	3-10 years
Others	2-18 years
Financial lease Assets - Buildings	30 years

The subsidiary CHSC bought farmlands for warehousing at the Jia Xing Section and Quing Shui Section of the Gangshan District in Kaohsiung City. However, certain regulations prohibit CHSC from registering the title of these farmlands in CHSC's name; therefore, the registration was made in the name of an individual person. The individual person consented to fully cooperate with CHSC in freely changing the land title to CHSC or to other name of other under CHSC instructions. Meanwhile, the land had been pledged to CHSC as collateral. As of June 30, 2015, December 31, 2014 and June 30, 2014, the book value of the farmlands was NT\$66,753 thousand, recorded as land.

Refer to Note 33 for the carrying amount of property, plant and equipment that had been pledged by the Corporation and its subsidiaries to secure borrowings.

18. INVESTMENT PROPERTIES

For the six months ended June 30, 2015

		Land	Buildings	Total
Cost
Balance at January 1, 2015 Additions	\$	8,344,056 231,217	\$ 2,740,155 6,205	\$ 11,084,211 237,422 (Continued)

	Land	Buildings	Total
Effect of foreign currency exchange difference	\$ (6,930)	\$ (17,002)	\$ (23,932)
Balance at June 30, 2015	\$ 8,568,343	\$ 2,729,358	\$ 11,297,701
Accumulated depreciation and impairment
Balance at January 1, 2015 Impairment losses reversed Depreciation Effect of foreign currency exchange difference Balance at June 30, 2015	\$ 1,891,031 (1,128,307) - - \$ 762,724	\$ 757,082 - 40,136 (1,665) \$ 795,553	\$ 2,648,113 (1,128,307) 40,136 (1,665) \$ 1,558,277
Carrying amount at June 30, 2015 Carrying amount at December 31, 2014	\$ 7,805,619 \$ 6,453,025	\$ 1,933,805 \$ 1,983,073	\$ 9,739,424 \$ 8,436,098 (Concluded)
For the six months ended June 30, 2014
	Land	Buildings	Total
Cost

Balance at January 1, 2014 Disposals Reclassification Effect of foreign currency exchange difference	\$ 8,266,753 (89) - 6,078	\$ 2,589,535 - (3,329) 12,128	\$ 10,856,288 (89) (3,329) 18,206
Balance at June 30, 2014	\$ 8,272,742	\$ 2,598,334	\$ 10,871,076
Accumulated depreciation and impairment
Balance at January 1, 2014 Depreciation Reclassification Effect of foreign currency exchange difference	\$ 1,891,031 - - -	\$ 628,008 38,919 (17,634) 435	\$ 2,519,039 38,919 (17,634) 435
Balance at June 30, 2014	\$ 1,891,031	\$ 649,728	\$ 2,540,759

The above items of investment properties were depreciated on a straight-line basis over the following useful lives:

Buildings
Main structure	30-60 years
Mechanical and electrical facilities	8-20 years

On April 1, 2015, the parcel number of the "jiou fen zih" land readjustment area of the subsidiary CHSC in Tainan city has been readjusted and confirmed. The subsidiary CHSC has engaged a real estate appraiser for the appraisal of the land value who determined that the fair value of the land amounted to NT\$2,273,882 thousand. As such, CHSC reversed impairment loss of NT\$1,128,307 thousand to the extent of the recoverable amount had no impairment been recognized.

The fair value of the investment properties was partly arrived at on the basis of valuation carried out in August 2011, December 2013, and April 2015 by independent appraisers, who are not related parties, and partly on the basis of information from the Ministry of the Interior's real estate transaction database website. Appraised lands and buildings were evaluated using Level 3 inputs under market approach and income approach. The important assumptions and fair value were as follows:

	June 30,	December 31,	June 30,
	2015	2014	2014
Fair value	\$	\$	\$
	15,412,313	13,623,361	11,307,918
Depreciation rate (%) Discount rate (%)	1.20-2.00 1.30-5.50	1.20-2.00 1.30-5.50	1.80-2.00 2.11-5.50

All of the Corporation and its subsidiaries' investment properties were held under freehold interests. Refer to Note 33 for the carrying amount of the investment properties that had been pledged by the Corporation and its subsidiaries to secure borrowings.

19. BORROWINGS

a. Short-term borrowings and bank overdraft

	June 30, 2015	December 31, 2014	June 30, 2014
Unsecured loans - interest at 0.60 %-9.75% p.a., 0.64%-2.65% p.a. and 0.77%-5.40% p.a. as of June 30, 2015, December 31,
2014 and June 30, 2014, respectively Letters of credit - interest at 0.26%-1.54% p.a., 0.41%-1.56% p.a. and 0.50%-1.96%	\$ 24,919,344	\$ 24,779,644	\$ 30,926,146
p.a. as of June 30, 2015, December 31, 2014 and June 30, 2014, respectively Bank overdraft - interest at 0.43%-7.60% p.a.,	2,550,476	2,929,777	3,011,153
0.43%-7.60% p.a. and 0.43%-6.16% p.a., as of June 30, 2015, December 31, 2014 and June 30, 2014, respectively Secured loans (Note 33) - interest at	2,001,972	2,972,356	1,015,705
5.88%-6.16% p.a., 5.88%-6.16% p.a. and 5.04%-6.16% p.a. as of June 30, 2015, December 31, 2014 and June 30, 2014,
respectively	80,523	119,940	105,624
	\$ 29,552,315	\$ 30,801,717	\$ 35,058,628

The amount of USD45,467 thousand and AUD91,147 thousand (NT\$3,917,747 thousand), which was included in the above unsecured loans as of June 30, 2014, were used to hedge the exchange rate fluctuations on investment in CSVC and CSCAU.

Starting January 2013, the subsidiary CCSPMC entered into several credit facility agreements with Taipei Fubon Bank and several banks. Under the agreements, the Corporation and its subsidiaries should collectively hold 70% of the CCSPMC's equity and 75% of the seats in the board of directors and supervisors. As of June 30, 2015, the subsidiary CSAPH held 70% equity of CCSPMC and three-quarters of the seats in the board of directors and supervisors.

In May 2014 and March 2014, the subsidiary CSCI entered into short-term financing contracts with Chinatrust Commercial Bank for USD27,000 thousand and INR0.4 billion credit lines and with Credit Agricole Corporate and Investment Bank for USD25,000 thousand credit lines, respectively. Under the agreement, the Corporation should hold at least 75% and 60% of the CSCI's issued shares and hold two-thirds and half or more of the seats in the board of directors, respectively. As of June 30, 2015, the Corporation held 100% equity of CSCI and all of the seats in the board of directors.

From April 2014, the subsidiary QCSPMC continuously entered into comprehensive credit agreements with Credit Agricole Corporate and Investment Bank, Standard Chartered Bank and Industrial Bank of Taiwan. Under the agreement, the Corporation and its subsidiaries should collectively hold at least 70%, 60% and 60% of the QCSPMC's issued shares and 70%, 50% and 50% of the seats in the board of directors. As of June 30, 2015, the subsidiary CSAPH and CSGT collectively held 70% equity of QCSPMC and four-fifths of the seats in the board of directors.

In March 2015, the subsidiary United Steel Engineering and Construction Co., Ltd. entered into short-term financing contract with Chinatrust Commercial Bank for USD10,000 thousand credit line. Under the agreement, the Corporation and its subsidiaries should hold 100% of United Steel Engineering and Construction Co., Ltd.'s issued shares and all of the seats in the board of directors. As of June 30, 2015, the subsidiary CSAPH indirectly held 100% equity of United Steel Engineering and Construction Co., Ltd. and all of the seats in the board of directors.

b. Short-term bills payable

	June 30,	December 31,	June 30,
	2015	2014	2014
Commercial paper - interest at 0.55%-1.21% p.a., 0.59%-1.35% p.a. and 0.65%-1.38% p.a. as of June 30, 2015, December 31, 2014 and June 30, 2014, respectively Less: Unamortized discounts	\$ 33,556,000 10,466	\$ 20,119,000 6,904	\$ 26,619,000 7,423
	\$	\$	\$
	33,545,534	20,112,096	26,611,577

The above commercial paper was secured by Mega Bills Finance Corporation, China Bills Finance Corporation, International Bills Finance Corporation, Taching Bill Finance Ltd., Dah Chung Bills Finance Corp., Grand Bills Finance Corp., Taiwan Finance Corporation, Taiwan Cooperative Bills Finance Corporation, First Bank, Union Bank of Taiwan, Taiwan Cooperative Bank and Mega International Commercial Bank, etc.

c. Long-term borrowings

	June 30, 2015	December 31, 2014	June 30, 2014
Syndicated bank loans
Bank of Taiwan and other banks loan to
CHSC
Repayable in 13 equal semiannual
installments from March 2013 to March
2019, interest at 1.58% p.a., 1.58% p.a.
and 1.59% p.a. as of June 30, 2015,
December 31, 2014 and June 30, 2014,
respectively	\$ 4,287,693	\$ 4,826,154	\$ 5,364,615 (Continued)

	June 30, 2015	December 31, 2014	June 30, 2014
Repayable in March 2019 with a revolving credit, interest at 1.58% p.a., 1.58%-1.60% p.a. and 1.59%-1.61% p.a. as of June 30, 2015, December 31, 2014 and June 30, 2014, respectively Bank of Taiwan and other banks loan to DSC	\$ 4,500,000	\$ 5,850,000	\$ 2,700,000
Repayable in 14 equal semiannual installments from January 2012 to July 2018, interest at 1.35% p.a., 1.36% p.a. and 1.28%-1.32% p.a. as of June 30, 2015, December 31, 2014 and June 30, 2014, respectively	22,848,540	26,113,540	33,235,000
Repayable in 10 equal semiannual installments from June 2015 to December 2019, interest all at 1.58% p.a. as of June 30, 2015, December 31,
2014 and June 30, 2014 Chinatrust Commercial Bank and other banks loan to CSCI, repayable in 5 semiannual installments from June 2017 to June 2019, interest at 2.20% p.a., 2.10% p.a., and 2.10% p.a. as of June 30, 2015, December 31, 2014 and June 30,	10,952,000	23,280,000	8,000,000
2014 Mega International Commercial Bank and other banks loan to CSVC, repayable in 10 semiannual installments from September 2015 to March 2020, interest at 2.25% p.a., 2.25% p.a. and 2.40% p.a. as of June 30, 2015, December 31, 2014	3,394,311	3,488,806	3,287,284
and June 30, 2014, respectively Bank of Taiwan and other banks loan to the Corporation, repaid in October 2014,	3,888,360	3,987,900	3,762,990
interest at 3.31% p.a. Bank of Taiwan and other banks loan to the Corporation, repaid in October 2014,	-	-	6,433,100
interest at 3.26% p.a. Taiwan Cooperative Bank and other banks loan to HLSC, repaid in November 2014,	-	-	1,352,204
interest at 1.54-1.59% p.a. Mortgage loans (Note 33) Due on various dates through April 2032, interest at 0.84%- 1.67% p.a., 0.84%-2.10% p.a. and 0.88%-2.10% p.a. as of June 30, 2015, December 31, 2014	-	-	2,250,000
and June 30, 2014, respectively	8,088,026	9,695,552	10,863,078 (Continued)

June 30, 2015	December 31, 2014	June 30, 2014





\$ 28,176,580	\$ 30,368,792	\$ 24,785,379
86,135,510	107,610,744	102,033,650
80,912	92,550	119,193
22,449,627	20,939,065	19,197,204
\$ 63,604,971	\$ 86,579,129	\$ 82,717,253 (Concluded)

1) In December 2011, the subsidiary CHSC entered into a syndicated credit facility agreement with Bank of Taiwan and 11 other banks for a NT\$16 billion credit line, which consists of NT\$7 billion secured loans with a non-revolving credit line and NT\$9 billion unsecured loans with a revolving credit line. Under the agreement, the Corporation and its related parties should collectively hold at least 30% of the CHSC's issued shares and control CHSC's operation. Starting 2012, CHSC should meet some financial ratios and criteria.

In May 2010, the subsidiary HLSC entered into a syndicated credit facility agreement with Taiwan Cooperative Bank and 13 other banks for a NT\$6 billion credit line, which consists of NT\$3.5 billion secured loans with a revolving credit line and NT\$2.5 billion unsecured loans with a revolving credit line. No unsecured loan was used as of June 30, 2015. Under the agreement, CHSC and its related parties should hold at least 51% of the HLSC's issued shares and hold over half of the seats in the board of directors and supervisors. Starting 2010, HLSC should meet some financial ratios and criteria.

The amounts referring to the above financial ratios and criteria should be based on audited annual financial statements. If CHSC and HLSC breach the agreements, they should take remedial measures within half a year from the next day of the financial statements' declaration date; otherwise, the interest rate needs to be adjusted in accordance with the agreement. CHSC was in compliance with the syndicated credit facility agreement based on their financial statements of 2014. As of June 30, 2015, the Corporation directly held 41% equity of CHSC and held half of the seats in the board of directors and controlled its operation; CHSC held 100% equity of HLSC and held all of the seats in the board of directors and supervisors.

2) In July 2012, the subsidiary DSC entered into a syndicated credit facility agreement with Bank of Taiwan and 17 other banks for a NT\$35 billion credit line, which consists of NT\$30 billion secured loans with a non-revolving credit line and NT\$5 billion secured commercial paper with a revolving credit line; in February 2008, DSC entered into the other syndicated credit facility agreement with Bank of Taiwan and 13 other banks for a NT\$51.7 billion credit line. As of June 30, 2015, all secured commercial paper (recognized as long-term bills payable) were used. Under the agreements, the Corporation and its associates should collectively hold at least 80% and 40% of DSC's issued shares and hold half or more of the seats in the board of directors. Starting 2012, DSC should meet some financial ratios and criteria.

The amounts referring to the above financial ratios and criteria should be based on audited annual financial statements. If DSC breaches the financial ratios or the agreements, the management bank can, based on the decision by majority of banks, immediately terminate the credit line, declare DSC's outstanding principal and interest to maturity as due, and request DSC to immediately settle. DSC was in compliance with the syndicated credit facility agreement based on its financial statements of 2014. As of June 30, 2015, the Corporation held 100% equity of DSC and all of the seats in the board of directors.

3) In October 2012, the subsidiary CSVC entered into a syndicated credit facility agreement with Mega International Commercial Bank and 11 other banks for a USD246,000 thousand credit line, which consists of USD126,000 thousand long-term borrowings with a non-revolving credit line and USD120,000 thousand short-term borrowings for operation with a revolving credit line. In addition, since August 2013, the subsidiary CSVC continuously entered into short-term financing contracts with Standard Chartered Bank and other banks for USD56,000 thousand credit lines. Under the agreements, the Corporation should hold at least 50% of CSVC's issued shares and majority of the seats in the board of directors. Starting 2015, CSVC should meet some financial ratios and criteria based on the syndicated credit facility agreement amended in March 2014. As of June 30, 2015, the Corporation held 51% equity of CSVC and over half of the seats in the board of directors.
4) In January 2013, the subsidiary CSCI entered into a syndicated credit facility agreement with Chinatrust Commercial Bank and 9 other banks for a USD110,000 thousand revolving credit line. Under the agreement, the Corporation should hold at least 75% of CSCI's issued shares and hold two-thirds or more of the seats in the board of directors. If CSCI expands or invites new strategic investors, the Corporation should hold at least 60% of CSCI's issued shares and hold half or more of the seats in the board of directors. Starting 2013, CSCI should meet some financial ratios and criteria. CSCI increased its capital in 2014 and met the criteria relating to tangible net value. As of June 30, 2015, the Corporation held 100% equity of CSCI and held all of the seats in the board of directors.
5) In July 2013, the Corporation entered into a syndicated credit facility agreement with Bank of Taiwan and 11 other banks for a CAD278,000 thousand unsecured non-revolving credit line. Under the agreement, the Corporation should meet some financial ratios and criteria which were based on reviewed consolidated financial statements for the six months ended June 30 and audited annual consolidated financial statements. If the Corporation breaches the financial ratios or the agreements, the management bank can, based on the decision by majority of banks, immediately terminate the credit line, declare the Corporation's outstanding principal and interest to maturity as due, and request the Corporation to settle immediately. The Corporation has repaid the above syndicated bank loans in October 2014.
6) The above unsecured loans included those obtained by the Corporation in JPY, AUD and USD to hedge the exchange rate fluctuations on equity investments in EAUS, CSCAU and CSVC and on the available-for-sale financial assets in Maruichi Steel Tube Ltd. and Yodogawa Steel Works, Ltd.
d. Long-term bills payable

	June 30,	December 31,	June 30,
	2015	2014	2014
Commercial paper - interest at 0.78%- 1.28% p.a., 0.78%-1.34% p.a. and 0.75%-1.38% p.a. as of June 30, 2015, December 31, 2014 and June 30, 2014, respectively Secured commercial paper in syndicated bank loans - interest at 1.16% p.a., 1.27% p.a. and 1.21% p.a. as of June 30, 2015, December 31, 2014 and June 30, 2014,	\$ 12,090,000	\$ 15,030,000	\$ 21,030,000
respectively	5,000,000	5,000,000	5,000,000
Less:	17,090,000	20,030,000	26,030,000
Unamortized discounts	8,286	10,588	13,289
	\$	\$	\$
	17,081,714	20,019,412	26,016,711

The Corporation and its subsidiaries entered into commercial paper contracts with bills finance corporations and banks. The duration of the contracts is three to five years and the cycle of issuance is fifteen to sixty days, during which the Corporation and its subsidiaries only have to pay service fees and interests. Therefore, the Corporation and its subsidiaries recorded those commercial papers issued as long-term bills payable.

The subsidiary DSC issued secured commercial paper in syndicated bank loans with the duration of seven years. Refer to c. for details.

The above commercial paper was secured by Mega International Commercial Bank and ANZ Bank (Taiwan).

20. BONDS PAYABLE

	June 30, 2015	December 31, 2014	June 30, 2014
5-year unsecured bonds - issued at par by the
Corporation in:
October 2011; repayable in October 2015 and
October 2016; interest at 1.36% p.a., payable
annually	\$ 9,300,000	\$ 9,300,000	\$ 9,300,000
5-year unsecured bonds - issued at par by DSC in:
June 2014; repayable in June 2018 and 2019; interest at 1.4% p.a., payable annually	7,000,000	7,000,000	7,000,000
June 2015; repayable in June 2019 and 2020;
interest at 1.45% p.a., payable annually	7,500,000	-	-
7-year unsecured bonds - issued at par by the
Corporation in:
December 2008; repayable in December 2014
and 2015; interest at 2.30% p.a., payable
annually	3,500,000	3,500,000	7,000,000
October 2011; repayable in October 2017 and 2018; interest at 1.57% p.a., payable annually	10,400,000	10,400,000	10,400,000
August 2012; repayable in August 2018 and
2019; interest at 1.37% p.a., payable annually	5,000,000	5,000,000	5,000,000
July 2013; repayable in July 2019 and 2020;
interest at 1.44% p.a., payable annually	6,300,000	6,300,000	6,300,000
January 2014; repayable in January 2020 and
2021; interest at 1.75% p.a., payable annually	6,900,000	6,900,000	6,900,000
7-year unsecured bonds - issued at par by DSC in:
June 2014; repayable in June 2020 and September 2021; interest at 1.75% p.a., payable
annually	5,000,000	5,000,000	5,000,000
June 2015; repayable in June 2021 and 2022
respectively; interest at 1.72% p.a., payable
annually	2,500,000	-	-
10-year unsecured bonds - issued at par by the
Corporation in:
August 2012; repayable in August 2021 and
2022; interest at 1.50% p.a., payable annually	15,000,000	15,000,000	15,000,000 (Continued)

	June 30, 2015	December 31, 2014	June 30, 2014
July 2013; repayable in July 2022 and 2023; interest at 1.60% p.a., payable annually	\$ 9,700,000	\$ 9,700,000	\$ 9,700,000
January 2014; repayable in January 2023 and
2024; interest at 1.95% p.a., payable annually	7,000,000	7,000,000	7,000,000
15-year unsecured bonds - issued at par by the
Corporation in:
July 2013; repayable 30% in July 2026 and 2027, and 40% in July 2028; interest at 1.88% p.a., payable annually January 2014; repayable 30% in January 2027	3,600,000	3,600,000	3,600,000
and 2028, and 40% in January 2029; interest
at 2.15% p.a., payable annually	9,000,000	9,000,000	9,000,000
Liability component of secured domestic
convertible bonds - issued by TMTC Liability component of unsecured domestic	185,700	185,700	185,700
convertible bonds - issued by TMTC	45,500	45,500	45,500
	107,931,200	97,931,200	101,431,200
Less: Issuance cost of bonds payable	59,929	66,214	72,841
Unamortized discount on bonds payable	28,239	21,521	24,677
Current portion	8,149,299	8,148,376	3,499,659
	\$ 99,693,733	\$ 89,695,089	\$ 97,834,023 (Concluded)

In September 2013, the subsidiary TMTC issued NT\$200,000 thousand of 3-year secured domestic convertible bonds at par from September 2013 to September 2016 which were secured by Hua Nan Commercial Bank. From one month after the issuance date to 10 days before the maturity date, bondholders may request TMTC to convert the bonds into its ordinary shares (except for the related book closure period). On the repurchase date, two years after the issuance date, bondholders may request TMTC to repurchase the bonds at their face value plus interest (1.9090% of face value, yield to put 0.95%) by cash in five trading days. From one month after the issuance date to 40 days before the maturity date, if the closing price of TMTC's shares on the Taiwan GreTai Securities Market is higher than 130% of the conversion price for 30 consecutive trading days or when the outstanding convertible bonds are less than 10% of initial issued bonds, TMTC may redeem the remaining bonds at their face value by cash in five trading days after the redemption date. As of June 30, 2015, the convertible bonds with NT\$14,300 thousand face value have been converted into NT\$5,766 thousand ordinary share capital.

In September 2013, the subsidiary TMTC issued NT\$100,000 thousand of 5-year unsecured domestic convertible bonds at par from September 2013 to September 2018. From one month after the issuance date to 10 days before the maturity date, bondholders may request TMTC to convert the bonds into its ordinary shares (except for the related book closure period). On the repurchase dates, two years, three years and four years after the issuance date, bondholders may request TMTC to repurchase the bonds at their face value plus interest (2.5156%, 3.7971% and 5.0945% of face value for two years, three years and four years, respectively, yield to put 1.25%) by cash in five trading days. From one month after the issuance date to 40 days before the maturity date, if the closing price of TMTC's shares on the Taiwan GreTai Securities Market is higher than 130% of the conversion price for 30 consecutive trading days or when the outstanding convertible bonds are less than 10% of initial issued bonds, TMTC may redeem the remaining bonds at their face value by cash in five trading days after the redemption date. As of June 30, 2015, the convertible bonds with NT\$54,500 thousand face value have been converted into NT\$21,975 thousand ordinary share capital.

In June 2015, the subsidiary DSC issued NT\$7.5 billion of 5-year unsecured corporate bonds and NT\$2.5 billion of 7-year unsecured corporate bonds at par.

According to IAS 32 and IAS 39, TMTC has separately accounted for the embedded derivatives and the host contract - bonds payable. The embedded derivatives, including put options and call options, were recognized in financial instruments at fair value through profit or loss (Note 7) and measured at fair value.

21. ACCOUNTS PAYABLE (INCLUDING RELATED PARTIES)

Accounts payable includes advances received on construction contracts. Advances received on construction contracts bears no interests and are expected to be paid until the satisfaction of conditions specified in each contract for the payment of such amounts during retention periods, which were within the normal operating cycle of the Corporation and its subsidiaries, usually more than twelve months. Refer to Note 12 for details on construction contracts.

22. OTHER PAYABLES

	June 30, 2015	December 31, 2014	June 30, 2014
Dividends payable	\$ 18,738,100	\$ 286,835	\$ 13,619,175
Purchase of equipment	6,353,913	7,109,543	6,241,254
Salaries and incentive bonus	5,526,026	5,613,982	5,373,578
Bonus to employees (employee remuneration),
and remuneration to directors and supervisors	3,093,498	2,237,569	2,317,193
Sales returns and discounts	1,463,684	1,178,541	1,021,427
Outsourced repair and construction	1,192,963	1,078,977	508,080
Interest payable	1,145,836	992,379	1,238,796
Others	4,767,235	4,633,640	5,259,931
	\$ 42,281,255	\$ 23,131,466	\$ 35,579,434

23. PROVISIONS

	June 30,	December 31,	June 30,
	2015	2014	2014
Current
Onerous contracts (a) Construction warranties (b) Sale returns and discounts (c) Others	\$ 1,495,626 574,321 457,463 45,193 \$ 2,572,603	\$ 3,177,583 582,371 586 35,160 \$ 3,795,700	\$ 2,149,140 613,268 878,852 44,352 \$ 3,685,612
Noncurrent
Provision for stabilization funds	\$	\$	\$
(d)	790,425	983,466	976,040
Others	39,895	48,346	44,214
	\$	\$	\$
	830,320	1,031,812	1,020,254

	Onerous Contracts	Construction Warranties	Sale Returns and Discounts	Provision for Stabilization Funds	Others	Total
Balance at January 1, 2015 Recognized (reversed) Paid	\$ 3,177,583 1,931,193 (3,613,150)	\$ 582,371 (7,995) (55)	\$ 586 456,877 -	\$ 983,466 (193,041) -	\$ 83,506 7,875 (6,293)	\$ 4,827,512 2,194,909 (3,619,498)
Balance at June 30, 2015	\$ 1,495,626	\$ 574,321	\$ 457,463	\$ 790,425	\$ 85,088	\$ 3,402,923
Balance at January 1, 2014 Recognized (reversed) Paid	\$ 2,293,019 446,714 (590,593)	\$ 632,341 (19,073) -	\$ - 878,852 -	\$ 1,026,382 (50,342) -	\$ 84,183 9,087 (4,704)	\$ 4,035,925 1,265,238 (595,297)
Balance at June 30, 2014	\$ 2,149,140	\$ 613,268	\$ 878,852	\$ 976,040	\$ 88,566	\$ 4,705,866

a. The provision for onerous contracts represents the present value of the future payments that the Corporation and its subsidiaries were presently obligated to make under non-cancellable onerous purchase and service contracts, less revenue expected to be earned on the contracts.
b. The provision for construction warranties represents the present value of management's best estimate of the future outflow of economic benefits that will be required under the Corporation and its subsidiaries' obligations for warranties. The estimate had been made on the basis of historical warranty trends.
c. The provision for sales returns and discounts, recognized as a reduction of operating revenues, represents the annual rewards estimated on the basis of historical experience, management's judgments and other known reasons.
d. The provision for stabilization funds represents the provision recognized in accordance with the build-operate-transfer contract by the subsidiary KRTC. The provision was used for capital demand due to force majeure, exceptional events, operating deficits, etc. The provision for stabilization funds was recognized based on increase in stabilization funds.

24. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

The Corporation and its domestic subsidiaries adopted a pension plan under the Labor Pension Act (the "LPA"), which is a state-managed defined contribution plan. Based on the LPA, the Corporation and its subsidiaries make monthly contributions to employees' individual pension accounts at 6% of monthly salaries and wages. The foreign subsidiaries also make contribution in accordance with the local regulations, which is a defined contribution plan.

b. Defined benefit plans

The Corporation and its domestic subsidiaries adopted the defined benefit plan under the Labor Standards Law, under which pension benefits are calculated on the basis of the length of service and average monthly salaries of the six months before retirement. The Corporation and its domestic subsidiaries make contributions, equal to a certain percentage of total monthly salaries, to a pension fund, which is deposited in the Bank of Taiwan in the name of and administered by the pension fund monitoring committee. the Corporation and its domestic subsidiaries have no right to influence the investment policy and strategy. The Corporation and its subsidiaries, such as CSGT, ICSC, CHC, etc., also makes contributions, equal to a certain percentage of salaries of management personnel, to another pension fund, which are deposited and administered by the officers' pension fund management committee. The Corporation and its subsidiaries, such as CSAC, CHSC, CSCC, etc., also set up rules of consolation payment and holiday benefits, which are defined benefit plans.

The amounts included in the consolidated balance sheets in respect of the Corporation and its subsidiaries' defined benefit plans were as follows:

	December 31, 2014
Present value of defined benefit obligation	\$ 29,354,071
Fair value of plan assets	(23,797,205)
Deficit	5,556,866
Net defined benefit liabilities - recognized as other payables, other current assets or
other noncurrent assets	(52,965)
Net defined benefit liability	\$ 5,503,901

Movements of net defined benefit liability were as follows:

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Liability (Asset)
Balance at January 1, 2014	\$ 30,505,432	\$ (23,236,849)	\$ 7,268,583
Service cost
Current service cost	896,309	-	896,309
Net interest expense (income)	455,637	(352,727)	102,910
Recognized in profit or loss	1,351,946	(352,727)	999,219
Remeasurement
Return on plan assets (excluding amounts
included in net interest)	-	(195,248)	(195,248)
Actuarial loss - changes in demographic
assumptions	100,987	-	100,987
Actuarial loss - changes in financial
assumptions	266,319	-	266,319
Actuarial gain - experience adjustments	(1,728,589)	-	(1,728,589)
Recognized in other comprehensive income	(1,361,283)	(195,248)	(1,556,531)
Contributions from the employer	-	(1,010,500)	(1,010,500)
Contributions of employee returning	12,298	(12,298)	-
Benefits paid	(1,237,881)	1,133,243	(104,638)
Others	83,559	(122,826)	(39,267)
Balance at December 31, 2014	\$ 29,354,071	\$ (23,797,205)	\$ 5,556,866

An analysis by function of the amounts recognized in profit or loss in respect of the defined benefit plans is as follows:

		For the Three Months Ended June 30	For the Six	Months Ended June 30
	2015	2014	2015	2014
Operating costs	\$ 157,621	\$ 167,983	\$ 315,649	\$ 335,870
Operating expenses	62,316	68,683	124,228	160,713
Others	649	1,327	1,359	2,968
	\$ 220,586	\$ 237,993	\$ 441,236	\$ 499,551

Through the defined benefit plans under the Labor Standards Law, the Corporation and its subsidiaries are exposed to the following risks:

1) Investment risk

The plan assets are invested in domestic and foreign equity, debt securities, and bank deposits, etc. The investment is conducted at the discretion of the Bureau of Labor Funds, Ministry of Labor or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for a 2-year time deposit with local banks.

2) Interest risk

A decrease in the government and corporate bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plan's debt investments.

3) Salary risk

The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The principal assumptions used for the purposes of the actuarial valuations were as follows:

	December 31, 2014
Discount rate (%)	1.625-2.000
Expected rate of salary increase (%)	2.250-3.000
Turnover rate (%)	0.000-0.300

The average duration of the defined benefit obligation at December 31, 2014 is 6 to 19 years.

25. EQUITY

a. Share capital

	June 30,	December 31,	June 30,
	2015	2014	2014
Numbers of shares authorized (in thousands)	17,000,000	17,000,000	17,000,000
Shares authorized	\$ 170,000,000	\$ 170,000,000	\$ 170,000,000
Numbers of shares issued and fully paid (in thousands)
Ordinary shares (in thousands)	15,734,861	15,734,861	15,425,584
Preference shares (in thousands)	38,268	38,268	38,268
	15,773,129	15,773,129	15,463,852
Shares issued
Ordinary shares	\$ 157,348,610	\$ 157,348,610	\$ 154,255,840
Preference shares	382,680	382,680	382,680
	\$ 157,731,290	\$ 157,731,290	\$ 154,638,520

1) Ordinary shares

Fully paid ordinary shares, which have a par value of NT\$10, carry one vote per share and the right to dividends.

2) Preference shares

Preference shareholders have the following entitlements or rights:

a) 14% annual dividends, with dividend payments ahead of those to ordinary shareholders;
b) Preference over ordinary shares in future payment of dividends in arrears;
c) The sequence and percentage of appropriation of residual property are the same with ordinary shares;
d) The same rights as ordinary shareholders, except the right to vote for directors and supervisors; and
e) Redeemable by the Corporation and convertible to ordinary shares by preference shareholders with the ratio of 1:1.
3) Overseas depositary receipts

In May 1992, February 1997, October 2003 and August 2011, for the purpose of working capital expansion and in accordance with the instruction of the MOEA, the largest shareholder of the Corporation, the Corporation issued 126,512,550 units of GDR. The depositary receipts then increased by 6,924,354 units resulting from the capital increase out of retained earnings. Each unit represents 20 shares of the Corporation's ordinary shares and the issued GDRs account for the Corporation's ordinary shares totaling 2,668,738,370 shares (including 290 fractional shares). Under relevant regulations, the GDR holders may also request the conversion to the shares represented by the GDR. The foreign investors may also request the reissuance of such depositary receipts within the originally approved units. As of June 30, 2015, December 31, 2014, and June 30, 2014, the outstanding depositary receipts were 1,332,265 units, 1,841,908 units and 3,029,601 units, equivalent to 26,645,610 ordinary shares (including 310 fractional shares), 36,838,470 ordinary shares (including 310 fractional shares), and 60,592,315 ordinary shares (including 295 fractional shares), which represented 0.17%, 0.23% and 0.39% of the outstanding ordinary shares, respectively.

b. Capital surplus

	June 30, 2015	December 31, 2014	June 30, 2014
May be used to offset deficits, distribute cash or transfer to share capital (see 1 below)
Additional paid-in capital	\$ 31,154,766	\$ 31,154,766	\$ 31,154,766
Treasury share transactions	5,704,956	5,705,663	5,487,610
Others	8,099	8,099	8,099
	36,867,821	36,868,528	36,650,475
May be used to offset deficits only (see 2 below)
Share of change in equity of subsidiaries	375,266	345,624	314,578
May not be used for any purpose
Share of change in equity of associates	3,770	3,724	102
	\$ 37,246,857	\$ 37,217,876	\$ 36,965,155

1) The capital surplus could be used to offset a deficit and distribute as cash dividends or transferred to capital when the Corporation has no deficit (limited to a certain percentage of the Corporation's paid-in capital and once a year).
2) The capital surplus included the share of change in equity of subsidiaries recognized without any actual acquisition or disposal of subsidiaries' share by the Corporation or the adjustments to capital surplus of subsidiaries under equity method.
c. Retained earnings and dividend policy

The Corporation's Articles of Incorporation provide that the annual net income, less any deficit, should be appropriated in the following order:

1) 10% as legal reserve;
2) Preference share dividends at 14% of par value;
3) Of the remainder, 0.15% as remuneration to directors and supervisors and 8% as bonus to employees;
4) Ordinary share dividends at 14% of par value; and
5) The remainder, if any, as additional dividends divided equally between the holders of preference and ordinary shares.

The board of directors should propose the appropriation of earnings. If necessary, it may, after appropriating for preference shares dividends, propose to appropriate a special reserve or to retain certain earnings. These proposals should be submitted to the shareholders' meeting for approval.

The Corporation's steel business is in a phase of stable growth; thus, 75% or more of the appropriation for dividends should be in cash and 25% or less in shares.

Under the Company Act as amended in May 2015, the appropriations of dividends and bonuses are limited to shareholders and do not include employees. The Corporation expects to make consequential amendments to the Corporation's Articles of Incorporation to be approved during the 2016 annual shareholders' meeting. For information about the accrual basis of the employee remuneration and remuneration to directors and supervisors for the three months and six months ended June 30, 2015 and 2014, and the actual appropriations for the years ended December 31, 2014 and 2013, please refer to f Employee benefits expense in Note 27.

The Corporation appropriates and reverses special reserves under Rule No. 1010012865, Rule No. 1010047490 issued by the FSC and the directive titled "Questions and Answers for Special Reserves Appropriated Following Adoption of IFRSs". Distributions can be made out of any subsequent reversal of the debit to other equity item.

Under Rule 89 No. 05044 and Rule 91 No. 170010 issued by Securities and Futures Bureau of the FSC, if the market price of the Corporation's ordinary shares held by subsidiaries is lower than the carrying value of the Corporation's shares held by subsidiaries, the Corporation should appropriate a special reserve equal to the difference between market price and carrying value multiplied by the percentage of ownership. Any special reserve appropriated may be reversed to the extent of the increase in valuation.

Appropriation of earnings to legal reserve could be made until the legal reserve equals the Corporation's paid-in capital. Legal reserve may be used to offset deficit. If the Corporation has no deficit and the legal reserve has exceeded 25% of the Corporation's paid-in capital, the excess may be transferred to capital or distributed in cash.

Except for non-ROC resident shareholders, all shareholders receiving the dividends are entitled a tax credit equal to their proportionate share of the income tax paid by the Corporation.

The appropriations of earnings for 2014 and 2013 had been approved in the shareholders' meeting on June 23, 2015 and June 18, 2014, respectively. The appropriations and dividends per share were as follows:

		Appropriation of Earnings		Dividend Per Share (NT\$)
	2014	2013	2014	2013
Legal reserve Special reserve Preference shares	\$ 2,216,027 47,049	\$ 1,598,154 166,266
Cash dividends Share dividends	53,575 -	45,922 7,653	\$ 1.4 -	\$ 1.2 0.2
			\$ 1.4	\$ 1.4
Ordinary shares Cash dividends Share dividends	15,734,861 -	10,797,909 3,085,117	\$ 1.0 -	\$ 0.7 0.2
	\$ 18,051,512	\$ 15,701,021	\$ 1.0	\$ 0.9

As of June 30 2015 and 2014, the cash dividends declared have not been distributed to shareholders and were recognized as other payables.

d. Special reserves

	For the Six Months Ended June 30
	2015	2014
Balance, beginning of period Appropriation in respect of	\$ 27,086,283	\$ 26,920,871
The difference between carrying amount of the Corporation's shares held by subsidiaries	47,049	166,266
Reversal of special reserve Disposal of property, plant and equipment	(18)	(425)
Balance, end of period	\$ 27,133,314	\$ 27,086,712

e. Other equity items

1) Exchange differences on translating foreign operations

	For the Six Months Ended June 30
		2015		2014
Balance, beginning of period	\$	732,469	\$	(659,689)
Exchange differences arising on translating foreign operations		(2,078,255)		547,552
Income tax relating to exchange differences arising on translating the net assets of foreign operations		11,959		(1,549)
Gain (loss) on hedging instruments designated in hedges of the net assets of foreign operations		743,081		(347,194)
Share of exchange difference of associates accounted for using the equity method		503,587		(14,696)
Balance, end of period	\$	(87,159)	\$	(475,576)

2) Unrealized gain (loss) on available-for-sale financial assets

	For the Six Months Ended June 30
	2015	2014
Balance, beginning of period	\$ 9,283,354	\$ 8,603,167
Unrealized gain (loss) on available-for-sale financial assets	(733,548)	1,165,304
Income tax relating to unrealized gain on available-for-sale financial assets	(495)	(805)
Reclassified to profit or loss on disposal of available-for-sale
financial assets	(169,913)	(411,575)
Income tax relating to the amounts reclassified to profit or loss on disposal of available-for-sale financial assets	791	1,237
Share of unrealized gain (loss) on available-for-sale financial assets of associates accounted for using the equity method	(16,594)	65,378
Balance, end of period	\$ 8,363,595	\$ 9,422,706

3) The effective portion of gains and losses on hedging instruments in a cash flow hedge

	For the Six Months Ended June 30
	2015	2014
Balance, beginning of period	\$ 146,192	\$ 12,375
Fair value changes of hedging instrument	(206,400)	14,496
Income tax relating to fair value changes	34,560	(2,639)
Fair value changes of hedging instruments transferred to
profit or loss	(1,340)	(445)
Income tax relating to amounts transferred to profit or loss	227	76
Fair value changes of hedging instruments transferred to adjust carrying amount of hedged items	1,337	(12,444)
Income tax relating to amounts transferred to adjust carrying amount of hedged items	(227)	2,116
Balance, end of period	\$ (25,651)	\$ 13,535

f. Treasury shares

Beginning of Period	Thousand Shares Addition	Reduction	June Thousand Shares	30 Book Value

318,369	-	376	317,993	\$ 8,577,124
				\$ 8,544,473
			308,545 1,897 -	310,442

The Corporation's shares acquired and held by subsidiaries for the purpose of investment are accounted for as treasury shares. The Corporation's shares held by more than 50%-owned subsidiaries are not allowed to participate in the Corporation's capital increase in cash and have no voting rights; other rights are the same as other ordinary shareholders. The increase of treasury shares was due to acquisition of the Corporation's shares by subsidiaries in which the Corporation has less than 50% shareholding. The decrease of treasury shares was mainly due to subsidiaries' sale of the Corporation's shares and change in percentage of ownership.

For the six months ended June 30, 2015, a total of 523 thousand shares of the Corporation held by its subsidiaries were sold for proceeds of NT\$13,325 thousand. The proceeds of treasury shares sold, calculated by shareholding percentage, amounted to NT\$8,556 thousand, and after deducting book values, resulted in the amounts of NT\$707 thousand, recorded as deduction of capital surplus. As of June 30, 2015, December 31, 2014, and June 30, 2014, the market values of the treasury shares calculated by combined holding percentage were NT\$7,842,437 thousand, NT\$8,374,146 thousand, and NT\$7,795,809 thousand, respectively.

g. Non-controlling interests

	For the Six Months Ended June 30
		2015		2014
Balance, beginning of period	\$	29,969,636	\$	29,656,615
Attributable to non-controlling interests:
Share of net profit (loss) for the period		(265,076)		1,193,864
Exchange difference on translating foreign operations		(718,225)		53,263
Income tax relating to exchange difference on translating
foreign operations		(501)		3
Unrealized gain (loss) on available-for-sale financial assets		(114,559)		179,680
Income tax relating to unrealized loss on available-for-sale
financial assets		(551)		(683)
Fair value changes of cash flow hedges		(7,399)		5,019
Income tax relating to cash flow hedges		1,254		(852)
Share of other comprehensive income of associates accounted
for using the equity method		(8,573)		(879)
				(Continued)

	For the Six Months Ended June 30
	2015	2014
Dividend distributed by subsidiaries Disposal (purchase) of the Corporation's shares by subsidiaries Others	\$ (2,605,072) 4,769 239	\$ (2,542,569) (75,128) 30,328
Balance, end of period	\$ 26,255,942	\$ 28,498,661 (Concluded)

26. OPERATING REVENUES

		For the Three Months Ended June 30	For the Six Months Ended June 30
	2015	2014	2015	2014
Revenue from the sale of goods	\$ 66,773,483	\$ 84,605,850	\$ 140,389,162	\$ 169,967,829
Construction contract revenue	4,454,016	5,159,530	9,441,884	9,560,285
Freight and service revenue	1,719,597	1,628,415	3,209,016	3,412,582
Other revenues	615,577	767,852	1,326,313	1,636,481
	\$ 73,562,673	\$ 92,161,647	\$ 154,366,375	\$ 184,577,177

27. PROFIT BEFORE INCOME TAX

The following items were included in profit before income tax:

a. Other income

	For the Three Months Ended June 30			For the Six Months Ended June 30
	2015		2014		2015		2014
Dividends income	\$ 113,850	\$	31,162	\$	113,850	\$	31,162
Interest income	105,068		149,785		224,172		268,101
Insurance claim income	68,921		311,438		76,703		668,305
Rental income	47,669		31,659		80,465		63,642
Others	286,373		191,744		488,689		296,706
	\$ 621,881	\$	715,788	\$	983,879	\$	1,327,916

b. Other gains and losses

	June	For the Three Months Ended 30	For the Six Months Ended June 30
	2015	2014	2015	2014
Reversals of impairment losses recognized on investment property (Note 18) Gain on disposal of investments	\$ 1,128,307 20,565	\$ - 18,154	\$ 1,128,307 22,534	\$ - 156,663 (Continued)

	For the Three Months Ended June 30			For the Six Months Ended June 30
		2015		2014		2015		2014
Gain on disposal of intangible assets	\$	521	\$	686	\$	1,206	\$	72,249
Loss on disposal of property, plant and equipment		(25,995)		(32,138)		(32,330)		(97,156)
Gain (loss) arising on financial assets at fair value through profit or loss		(7,109)		26,517		310		36,186
Net foreign exchange gain (loss)		(4,202)		38,796		72,230		288,284
Other losses		(181,702)		(177,194)		(264,890)		(183,514)
	\$	930,385	\$	(125,179)	\$	927,367	\$	272,712 (Concluded)

The components of net foreign exchange gain (loss) were as follows:

	June	For the Three Months Ended 30	For the Six Months Ended June 30
	2015	2014	2015	2014
Foreign exchange gain Foreign exchange loss	\$ 479,263 (483,465)	\$ 245,927 (207,131)	\$ 1,007,806 (935,576)	\$ 790,179 (501,895)
Net exchange gain (loss)	\$ (4,202)	\$ 38,796	\$ 72,230	\$ 288,284

Gain (loss) on financial assets at fair value through profit or loss included a decrease in fair value of NT\$11,372 thousand, an increase in fair value of NT\$17,554 thousand, a decrease in fair value of NT\$7,346 thousand and an increase in fair value of NT\$23,686 thousand for the three months ended June 30, 2015 and 2014 and six months ended June 30, 2015 and 2014, respectively, and interest income of NT\$4,263 thousand, NT\$8,963 thousand, NT\$7,656 thousand and NT\$12,500 thousand for three months ended June 30, 2015 and 2014 and six months ended June 30, 2015 and 2014, respectively.

c. Finance costs

	June	For the Three Months Ended 30	For the Six Months Ended June 30
	2015	2014	2015	2014
Total interest expense Less: Amounts included in	\$ 1,002,448	\$ 1,135,703	\$ 2,003,553	\$ 2,197,294
the cost of qualifying assets	91,135	145,763	183,783	288,793
	\$ 911,313	\$ 989,940	\$ 1,819,770	\$ 1,908,501

Information about capitalized interest was as follows:

	June	For the Three Months Ended 30	For the Six Months Ended June 30
	2015	2014	2015	2014
Capitalized amounts Capitalized annual rates (%)	\$ 91,135 1.01-1.56	\$ 145,763 1.08-1.64	\$ 183,783 1.01-1.62	\$ 288,793 1.06-1.70

d. Depreciation and amortization

	June	For the Three Months Ended 30	For the Six Months Ended June 30
	2015	2014	2015	2014
Property, plant and equipment Investment properties Intangible assets Others	\$ 8,915,381 20,030 62,412 23,839	\$ 8,736,440 19,620 67,738 32,491	\$ 17,906,419 40,136 116,972 47,635	\$ 17,277,114 38,919 132,928 56,454
	\$ 9,021,662	\$ 8,856,289	\$ 18,111,162	\$ 17,505,415
Analysis of depreciation by function Operating costs Operating expenses Others	\$ 8,586,244 342,725 6,442	\$ 8,404,346 343,548 8,166	\$ 17,252,500 680,669 13,386	\$ 16,620,710 679,104 16,219
	\$ 8,935,411	\$ 8,756,060	\$ 17,946,555	\$ 17,316,033
Analysis of amortization by function
Operating costs Operating expenses Others	\$ 55,535 30,458 258	\$ 66,997 32,971 261	\$ 103,964 60,150 493	\$ 121,652 66,838 892
	\$ 86,251	\$ 100,229	\$ 164,607	\$ 189,382

e. Operating expenses directly related to investment properties

	For the Three Months Ended June	30	For the Six Months Ended June 30
	2015	2014	2015	2014
Direct operating expenses of investment properties that generated from rental income	\$ 32,830	\$ 37,248	\$ 69,459	\$ 71,037

f. Employee benefits

	For the Three Months Ended June 30			For the Six Months Ended June 30
	2015		2014		2015		2014
Short-term employee benefits
Salaries	\$ 7,435,047	\$	7,276,156	\$	14,954,061	\$	14,773,259
Labor and health insurance	473,224		422,802		959,095		852,988
Others	275,462		381,986		590,648		784,798
	8,183,733		8,080,944		16,503,804		16,411,045

(Continued)

	June	For the Three Months Ended 30	For the Six Months Ended June 30
	2015	2014	2015	2014
Post-employment benefits (Note 24)
Defined contribution plans Defined benefit plans	\$ 159,945 220,586 380,531	\$ 99,843 237,993 337,836	\$ 310,897 441,236 752,133	\$ 200,218 499,551 699,769
Termination benefits	11,717 \$ 8,575,981	18,262 \$ 8,437,042	29,922 \$ 17,285,859	24,587 \$ 17,135,401
Analysis of employee benefits by function
Operating costs Operating expenses Others	\$ 6,916,717 1,603,513 55,751	\$ 6,939,390 1,335,707 161,945	\$ 13,852,362 3,240,713 192,784	\$ 13,635,669 3,159,981 339,751
	\$ 8,575,981	\$ 8,437,042	\$ 17,285,859	\$ 17,135,401 (Concluded)

Under the Company Act as amended in May 2015, the Corporation's Articles of Incorporation should stipulate a fixed amount or ratio of annual profit to be distributed as employee remuneration. The amounts of bonus to employees (employee remuneration) and remuneration to directors and supervisors calculated based on the current Articles of Incorporation were as follows:

	June	For the Three Months Ended 30	For the Six Months Ended June 30
	2015	2014	2015	2014
Bonus to employees (employee remuneration)	\$ 326,718	\$ 473,868	\$ 718,576	\$ 718,496
Remuneration to directors and supervisors	6,122	8,287	13,473	12,673

Material differences between such estimated amounts and the amounts proposed by the board of directors on or before the annual consolidated financial statements are authorized for issue are adjusted in the year the bonus and remuneration were recognized. If there is a change in the proposed amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in accounting estimate.

The appropriations (in cash) of bonuses to employees and remuneration to directors and supervisors for 2014 and 2013 have been approved in the shareholders' meetings on June 23, 2015 and June 18, 2014, respectively, were as follows:

		For the Year Ended December 31
		2014		2013
	Bonus to Employees	Remuneration of Directors and Supervisors	Bonus to Employees	Remuneration of Directors and Supervisors
Amounts approved in shareholders' meetings Amounts recognized in	\$ 1,587,490	\$ 29,765	\$ 1,133,084	\$ 21,245
respective financial statements Difference	1,587,490	29,765	1,133,084	21,245
	\$ -	\$ -	\$ -	\$ -

Information on the bonus to employees, directors and supervisors proposed by the Corporation's board of directors and resolved by the shareholders, is available on the Market Observation Post System website of the Taiwan Stock Exchange.

As of June 30, 2015 and 2014, the Corporation and its subsidiaries' number of employees were about 25,197 and 25,265, respectively.

28. INCOME TAX

a. Income tax recognized in profit or loss

The major components of income tax were as follows:

	For the Three Months Ended June 30		For the Six Months Ended June 30
	2015	2014	2015	2014
Current tax
In respect of the current
period	\$ 790,461	\$ 1,101,631	\$ 2,275,566	\$ 1,762,599
Income tax on
unappropriated earnings	557,191	168,460	563,709	170,403
In respect of prior years	(764,210)	(153,327)	(760,800)	(142,560)
Deferred tax
In respect of the current
period	(91,337)	(90,516)	(341,680)	29,925
In respect of prior years	754,521	(29,953)	754,521	(42,543)
Write-down in the current
period	4,677	(72,529)	4,677	(59,976)
	\$ 1,251,303	\$ 923,766	\$ 2,495,993	\$ 1,717,848

b. Income tax recognized directly in equity

	For the Three Months Ended June 30		For the Six Months Ended June 30
	2015	2014	2015	2014
Current tax Reversal of special reserve due to disposal of property, plant and equipment Deferred tax	\$ 4	\$ 34	\$ 4	\$ 108
Reversal of special reserve due to disposal of property, plant and equipment	(4)	(34)	(4)	(108)
	\$ -	\$ -	\$ -	\$ -

c. Income tax expense (benefit) recognized in other comprehensive income

	For the Three Months Ended June 30		For the Six Months Ended June 30
	2015	2014	2015	2014
Recognized in other comprehensive income: Translation of foreign
operations Unrealized gain (loss) on available-for-sale financial	\$ (4,764)	\$ (13,322)	\$ (11,458)	\$ 1,546
asset Fair value changes of cash	(3,998)	(392)	255	1,488
flow hedges Fair value changes of hedging instruments in cash flow hedges transferred to adjust	(3,458)	(13,327)	(35,814)	3,491
carrying amounts of hedged items Fair value changes of hedging instrument in cash flow	(375)	(1,892)	227	(2,116)
hedges transferred to profit or loss	-	(428)	(227)	(76)
Disposal of available-for-sale financial assets	-	(6)	-	(1,237)
	\$ (12,595)	\$ (29,367)	\$ (47,017)	\$ 3,096

d. Integrated income tax

	June 30,	December 31,	June 30,
	2015	2014	2014
Unappropriated earnings Before January 1, 1998 On and after January 1, 1998	\$ 15,954 14,414,933	\$ 15,954 24,090,761	\$ 15,954 12,461,957
	\$	\$	\$
	14,430,887	24,106,715	12,477,911
Imputation credits accounts ("ICA")	\$	\$	\$
	3,773,614	515,798	1,634,787

For distribution of earnings generated after January 1, 1998, the ratio for the imputation credits allocated to shareholders of the Corporation, excluding non-ROC-resident, is based on the balance of the ICA as of the date of dividend distribution.

The creditable ratio of the Corporation for the distribution of 2014 and 2013 earnings was 20.04% (estimated) and 15.13%, respectively. The actual imputation credits allocated to shareholders of the Corporation was based on the balance of the ICA as of the date of dividend distribution. Therefore, the expected creditable ratio for the 2014 earnings may differ from the actual creditable ratio to be used in allocating imputation credits to the shareholders.

e. Income tax assessments

The Corporation's income tax returns through 2010 and the subsidiaries' income tax returns through 2009 to 2013 have been assessed by the tax authorities. The Corporation disagreed with the tax authorities' assessment of its 2010 tax return and filed for administrative appeal. However, the Corporation had recognized the related additional tax payable in prior year.

29. EARNINGS PER SHARE

The net profit and weighted average number of ordinary shares outstanding in the computation of earnings per share were as follows:

Net profit for the period

	For the Three Months Ended June 30		For the Six Months Ended June 30
	2015	2014	2015	2014
Net profit for the period attributable to owners of the Corporation Less: Dividends on preference	\$ 2,849,395	\$ 5,145,595	\$ 8,375,666	\$ 8,766,648
shares	13,394	13,394	26,788	26,788
Net profit used in computation of basic earnings per share	\$ 2,836,001	\$ 5,132,201	\$ 8,348,878	\$ 8,739,860

Weighted average number of ordinary shares outstanding (in thousand shares)

	For the Three Months Ended June 30		For the Six Months Ended June 30
	2015	2014	2015	2014
Weighted average number of ordinary shares in computation of basic earnings per share	15,416,493	15,424,419	15,416,743	15,424,419
Effect of dilutive potential ordinary shares:
Bonus to employees (Employees remuneration)	92,725	71,057	95,309	74,457
Weighted average number of ordinary shares used in the computation of diluted earnings
per share	15,509,218	15,495,476	15,512,052	15,498,876

Preference shares were not included in the calculation of diluted earnings per share for the three months and six months ended June 30, 2015 and 2014 because of their anti-dilutive effect.

The weighted average number of shares outstanding used for the earnings per share computation was adjusted retroactively for the issuance of share dividends distributed out of earnings for the year ended December 31, 2014. The adjusted basic and diluted after-tax earnings per share for the three months ended June 30, 2014 were both NT\$0.33 and the six months ended June 30, 2014 were NT\$0.57 and NT\$0.56, respectively.

If the Corporation is allowed to settle the bonus paid to employees by cash or shares, the Corporation presumes that the entire amount of the bonus would be settled in shares and the resulting potential shares are included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, if the shares have a dilutive effect. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the shareholders resolve the number of shares to be distributed to employees at their meeting in the following year.

30. CAPITAL MANAGEMENT

The management of the Corporation and its subsidiaries optimized the balances of working capital, debt and equity as well as the related cost through monitoring the Corporation and its subsidiaries' capital structure and capital demand by reviewing quantitative data and considering industry characteristics, domestic and international economic environment, rate fluctuation, strategies for development, etc.

Except for Note 19, the Corporation and its subsidiaries are not subject to any externally imposed capital requirements.

31. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments that are not measured at fair value

Except as detailed in the following table, the Corporation and its subsidiaries believe the carrying amounts of financial instruments, including cash and cash equivalents, receivables, debt investments with no active market, and payables recognized in the consolidated financial statements approximated their fair values.

	June 30, 2015			December 31, 2014	June 30, 2014
	Carrying Amount	Fair Value	Carrying Amount	Fair Value	Carrying Amount	Fair Value
Financial assets
Held-to-maturity investments	\$ 247,262	\$ 223,001	\$ 222,989	\$ 205,097	\$ 210,413	\$ 195,844

The fair value of held-to-maturity investment, which were grouped into Level 2, was measured under valuation method. The estimates and assumptions used by the Corporation and its subsidiaries were consistent with those that market participants would use in setting a price for financial instrument.

b. Fair value of financial instruments that are measured at fair value on a recurring basis

1) Fair value hierarchy

	Level 1	Level 2	Level 3	Total
June 30, 2015
Financial assets at fair value through profit or loss Mutual funds Listed shares Emerging market shares Convertible bonds Structure notes Foreign exchange forward contracts	\$ 4,405,560 1,083,475 - 115,899 - -	\$ - - - - 40,117 3,155	\$ - - 258,610 - - -	\$ 4,405,560 1,083,475 258,610 115,899 40,117 3,155
	\$ 5,604,934	\$ 43,272	\$ 258,610	\$ 5,906,816
Available-for-sale financial assets Foreign unlisted shares Domestic listed shares Domestic emerging market shares and unlisted shares Foreign listed shares Mutual funds Certificate of entitlement Private-placement shares of listed companies	\$ - 7,556,916 - 1,832,949 1,542,223 - - \$ 10,932,088	\$ - - - - - - 266,472 \$ 266,472	\$ 17,765,813 - 6,502,795 - - 952,166 - \$ 25,220,774	\$ 17,765,813 7,556,916 6,502,795 1,832,949 1,542,223 952,166 266,472 \$ 36,419,334
Derivative financial assets for hedging Foreign exchange forward contracts	\$ -	\$ 74,117	\$ -	\$ 74,117
Financial liabilities at fair value through profit or loss Call and put options Foreign exchange forward contracts	\$ - - \$ -	\$ 3,323 989 \$ 4,312	\$ - - \$ -	\$ 3,323 989 \$ 4,312 (Continued)

	Level 1	Level 2	Level 3	Total
Derivative financial liabilities for hedging Foreign exchange forward contracts	\$ -	\$ 101,378	\$ -	\$ 101,378
Interest rate swap contracts	-	19,792	-	19,792
	\$ -	\$ 121,170	\$ -	\$ 121,170
December 31, 2014
Financial assets at fair value through profit or loss Mutual funds	\$ 3,941,687	\$ -	\$ -	\$ 3,941,687
Listed shares Emerging market shares	922,433 -	- -	- 276,613	922,433 276,613
Convertible bonds	192,205	-	-	192,205
Structure notes Convertible preference shares	- -	72,601 31,842	- -	72,601 31,842
Foreign exchange forward contracts	-	13,134	-	13,134
Future contracts	-	78	-	78
	\$ 5,056,325	\$ 117,655	\$ 276,613	\$ 5,450,593
Available-for-sale financial assets
Foreign unlisted shares	\$ -	\$ -	\$ 13,837,749	\$ 13,837,749
Domestic listed shares Certificate of entitlement Domestic emerging market	8,378,467 -	- -	- 6,470,256	8,378,467 6,470,256
shares and unlisted shares	-	-	6,321,209	6,321,209
Foreign listed shares Mutual funds	1,665,902 996,300	- -	- -	1,665,902 996,300
Private-placement shares of listed companies	-	84,133	-	84,133
	\$ 11,040,669	\$ 84,133	\$ 26,629,214	\$ 37,754,016
Derivative financial assets for hedging Foreign exchange forward
contracts Interest rate swap contracts	\$ - -	\$ 148,932 2,029	\$ - -	\$ 148,932 2,029
	\$ -	\$ 150,961	\$ -	\$ 150,961
Financial liabilities at fair value through profit or loss Foreign exchange forward
contracts Call and put options	\$ - -	\$ 5,518 1,631	\$ - -	\$ 5,518 1,631
	\$ -	\$ 7,149	\$ -	\$ 7,149

(Continued)

	Level 1	Level 2	Level 3	Total
Derivative financial liabilities for hedging Foreign exchange forward contracts Interest rate swap contracts	\$ - -	\$ 47,075 9,312	\$ - -	\$ 47,075 9,312
	\$ -	\$ 56,387	\$ -	\$ 56,387
June 30, 2014
Financial assets at fair value through profit or loss Mutual funds Listed shares Emerging market shares Structure notes Convertible bonds Foreign exchange forward contracts	\$ 5,960,111 1,200,981 - - 176,740 - \$ 7,337,832	\$ - - - 89,542 - 2,081 \$ 91,623	\$ - - 275,574 - - - \$ 275,574	\$ 5,960,111 1,200,981 275,574 89,542 176,740 2,081 \$ 7,705,029
Available-for-sale financial
assets Foreign unlisted shares Domestic listed shares Certificate of entitlement	\$ - 8,419,504 -	\$ - - -	\$ 15,115,003 - 6,140,745	\$ 15,115,003 8,419,504 6,140,745
Domestic emerging market shares and unlisted shares Foreign listed shares Mutual funds Private-placement shares of	- 1,953,751 1,142,487	- - -	6,446,402 - -	6,446,402 1,953,751 1,142,487
listed companies	- \$ 11,515,742	131,898 \$ 131,898	- \$ 27,702,150	131,898 \$ 39,349,790
Derivative financial assets for hedging Foreign exchange forward
contracts Interest rate swap contracts	\$ - -	\$ 43,095 15,631	\$ - -	\$ 43,095 15,631
	\$ -	\$ 58,726	\$ -	\$ 58,726
Financial liabilities at fair value through profit or loss Foreign exchange forward
contracts Call and put options	\$ - -	\$ 3,062 84	\$ - -	\$ 3,062 84
Future contracts	- \$ -	1,332 \$ 4,478	- \$ -	1,332 \$ 4,478
Derivative financial liabilities for hedging
Foreign exchange forward contracts Interest rate swap contracts	\$ - -	\$ 29,505 2,500	\$ - -	\$ 29,505 2,500
	\$ -	\$ 32,005	\$ -	\$ 32,005 (Concluded)

There was no transfer between Level 1 and Level 2 for the six months ended June 30, 2015 and 2014.

2) Reconciliation of Level 3 fair value measurements of financial assets

		Financial Assets at Fair Value Through Profit or Loss	sale	Available-for Financial Assets	Total
For the six months ended June 30, 2015
Balance, beginning of period Recognized in profit or loss - other gains and losses	\$	276,613	\$	26,629,214	\$	26,905,827
Realized		-		26,528		26,528
Unrealized		(18,003)		(19,616)		(37,619)
Recognized in other comprehensive
income - unrealized gain (loss) on
available-for-sale financial assets		-		(407,944)		(407,944)
Purchases		-		69,644		69,644
Transfer into Level 3		-		30,020		30,020
Disposal		-		(305,360)		(305,360)
Capital reduction		-		(85,426)		(85,426)
Effect of foreign currency exchange
difference		-		(716,286)		(716,286)
Balance, end of period	\$	258,610	\$	25,220,774	\$	25,479,384
For the six months ended June 30, 2014
Balance, beginning of period Recognized in profit or loss - other gains and losses	\$	283,883	\$	23,787,038	\$	24,070,921
Realized				182,464		182,464
Unrealized		(8,309)		(38,538)		(46,847)
Recognized in other comprehensive income - unrealized gain on
available-for-sale financial assets		-		229,116		229,116
Purchases		-		4,807,035		4,807,035
Disposal		-		(290,581)		(290,581)
Effect of foreign currency exchange
difference		-		345,844		345,844
Transfers out of Level 3		-		(1,301,081)		(1,301,081)
Others		-		(19,147)		(19,147)
Balance, end of period	\$	275,574	\$	27,702,150	\$	27,977,724

3) Valuation techniques and inputs applied for the purpose of measuring Level 2 fair value measurement Financial Instrument Valuation Techniques and Inputs

Derivative instruments	A discounted cash flow analysis was performed using the applicable yield curve for the duration of the instruments for non-optional derivatives, and option pricing models for optional derivatives. The estimates and assumptions used by the Corporation and its subsidiaries were consistent with those that market participants would use in setting a price for the financial instrument.
Private-placement shares of listed companies	Based on information from the Market Observation Post System, the Taiwan GreTai Securities Market, etc. and calculated by using the Black-Scholes Model.

4) Valuation techniques and inputs applied for the purpose of measuring Level 3 fair value measurement
a) For emerging market shares, fair values were estimated on the basis of the closing price and liquidity.
b) For domestic unlisted shares, some foreign unlisted shares and certificate of entitlement, fair values were determined based on industry types, valuations of similar companies and operations, or by using the net worth of companies.
c) For other foreign unlisted shares, fair values were measured under income approach and calculated by the present value of the expected return by using discounted cash flow model. Significant unobservable inputs were as follows; if the long-term revenue growth rate increased, long-term pre-tax operating income rate increased or discount rate decreased, the fair value of the investments would increase.

Long-term revenue growth rate (%)	-
Long-term pre-tax operating income rate (%)	16.80
Discount rate (%)	10.18

June 30, 2015

If the below input to the valuation model was changed to reflect reasonably possible alternative assumptions while all other variables were held constant, the fair value of the equity investment would increase (decrease) as follows:

Discount rate
Increase 1%	\$ (123,899)
Decrease 1%	\$ 150,171

c. Categories of financial instruments

		June 30, 2015	December 31, 2014	June 30, 2014
Financial assets
Fair value through profit or loss
Designated as at fair value through profit
or loss	\$	3,469,364	\$ 2,847,161	\$ 4,938,503
Held for trading		2,437,452	2,603,432	2,766,526
Derivative instruments in designated hedge
accounting relationships		74,117	150,961	58,726
Held-to-maturity investments		247,262	222,989	210,413
Loans and receivables (see 1 below)		51,054,761	47,410,300	59,121,636
Available-for-sale financial assets		36,419,334	37,754,016	39,349,790
Financial liabilities
Fair value through profit or loss
Designated as at fair value through profit
or loss		3,323	1,631	1,332
Held for trading		989	5,518	3,146
Derivative instruments in designated hedge
accounting relationships		121,170	56,387	32,005
Measured at amortized cost (see 2 below)		325,511,070	310,404,363	340,478,738

1) The balances included loans and receivables measured at amortized cost, which comprise cash and cash equivalents, notes and accounts receivable (including related parties), other receivables, debt investments with no active market, refundable deposits and other financial assets.
2) The balances included financial liabilities measured at amortized cost, which comprise short-term borrowings and bank overdraft, short-term bills payable, notes and accounts payable (including related parties), other payables, bonds payable, long-term borrowings and long-term bills payable.
d. Financial risk management objectives and policies

The Corporation and its subsidiaries are extremely focused on financial risk management. By tracking and managing the market risk, credit risk, and liquidity risk efficiently, the management ensured that the Corporation and its subsidiaries were equipped with sufficient and lower cost working capital, which reduced financial uncertainty that may have adverse effects on the operations.

The significant financial activities of the Corporation and its subsidiaries are reviewed by the board of directors in accordance with relevant regulations and internal controls. The finance department follows the accountability and related financial risk control procedures required by the Corporation for executing financial projects. Compliance with policies and exposure limits is continually reviewed by the internal auditors. The Corporation and its subsidiaries did not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

1) Market risk
a) Foreign currency risk

The Corporation and its subsidiaries were exposed to foreign currency risk due to sales, purchases, capital expenditures and equity investments denominated in foreign currencies. Exchange rate exposures were managed within approved policy parameters utilizing foreign exchange forward contracts, foreign deposits or foreign borrowings.

The carrying amounts of the significant non-functional currency monetary assets and liabilities (including those eliminated on consolidation) at the balance sheet date were referred to Note 35.

The Corporation and its subsidiaries were mainly exposed to the currencies USD, JPY, CAD, AUD, RMB and VND. The following table details the sensitivity to a 1% increase in the functional currencies against the relevant foreign currencies.

	USD	Impact	JPY Impact
	For the	Six Months Ended	For the	Six Months Ended
		June 30		June 30
	2015	2014	2015	2014
Pre-tax profit or loss	\$ (20,098)	\$ 30,104 i	\$ 8,026	\$ 8,817 ii
Pre-tax equity	84,674	75,277 iii	(1,421)	(2,815) iii
		CAD Impact	AUD Impact For the Six Months Ended June 30
	For the	Six Months Ended June 30
	2015	2014	2015	2014
Pre-tax profit or loss	\$ (17)	\$ (4) i	\$ (155)	\$ (53) i
Pre-tax equity	-	77,853 iii	67,473	80,008 iii
		RMB Impact	VND Impact
	For the	Six Months Ended June 30	For the	Six Months Ended June 30
	2015	2014	2015	2014
Pre-tax profit or loss	\$ (13,297)	\$ (4,597) ii	\$ (2,613)	\$(11,226) i

i. This was mainly attributable to the exposure of cash, outstanding receivables and payables, which were not hedged at the balance sheet date.

Pre-tax equity (3,083) (3,849) iii - -

ii. This was mainly attributable to the exposure of cash, outstanding receivables and payables, which were not hedged at the balance sheet date, and debt investments with no active market and borrowings, which were respectively designated as hedged items and hedging instruments in fair value hedges.
iii. This was attributable to other financial assets, which were designated as hedging instruments in cash flow hedges, and borrowings, which were designated as hedging instruments in net investments in foreign operations hedges.

In management's opinion, the sensitivity analysis was unrepresentative of the inherent foreign exchange risk because the exposure at the balance sheet date did not reflect the exposure during the period.

b) Interest rate risk

The Corporation and its subsidiaries were exposed to interest rate risk because the Corporation and its subsidiaries borrowed funds at both fixed and floating interest rates. The risk is managed by the Corporation and its subsidiaries by maintaining an appropriate mix of fixed and floating rate borrowings, and using interest rate swap contracts.

The carrying amounts of the Corporation and its subsidiaries' financial liabilities with exposure to interest rates at the balance sheet date were as follows:

	June 30,	December 31,	June 30,
	2015	2014	2014
Fair value interest rate risk	\$	\$	\$
Financial liabilities	141,388,566	117,955,561	127,945,259
Cash flow interest rate risk Financial liabilities	132,688,627	158,339,323	162,989,796

If interest rates had been 1% higher/lower and all other variables were held constant, the Corporation and its subsidiaries' pre-tax profit for the six months ended June 30, 2015 and 2014 would have been lower/higher by NT\$663,443 thousand and NT\$814,949 thousand, respectively.

c) Other price risk

The Corporation and its subsidiaries were exposed to equity price risk through their investments in mutual funds, listed shares and private placement shares of listed companies.

If equity prices had been 1% higher/lower, the pre-tax profit for the six months ended June 30, 2015 and 2014 would have been higher/lower by NT\$54,890 thousand and NT\$71,611 thousand, respectively, as a result of the fair value changes of financial assets at fair value through profit or loss, and the pre-tax other comprehensive income for the six months ended June 30, 2015 and 2014 would have been higher/lower by NT\$111,986 thousand and NT\$116,476 thousand, respectively, as a result of the changes in fair value of available-for-sale financial assets.

2) Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Corporation and its subsidiaries. As at the balance sheet date, the Corporation and its subsidiaries' maximum exposure to credit risk is the carrying amount of the financial assets on the consolidated balance sheets and the amount of contingent liabilities in relation to financial guarantee issued by the Corporation and its subsidiaries.

The Corporation and its subsidiaries do not expect significant credit risk because the counterparties are creditworthy financial institutions and companies.

Counterparties of accounts receivable consisted of a large number of different customers, spread across diverse industries and geographical areas. Ongoing credit evaluation is performed on the customers' financial condition.

The Corporation and its subsidiaries did not have significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. The Corporation and its subsidiaries define counterparties as having similar characteristics if they are related entities.

As of June 30, 2015, the maximum credit risk of off-balance-sheet guarantees provided to investees of co-investment for procurement compliance was NT\$2,314,687 thousand.

3) Liquidity risk

The management of the Corporation and its subsidiaries continuously monitors the movement of cash flows, net cash position, significant capital expenditures and the utilization of bank loan commitments to control proportion of the long-term and short-term bank loans or issue bonds payable, and ensures compliance with loan covenants.

The following table details the undiscounted cash flows of the Corporation and its subsidiaries' remaining contractual maturity for its non-derivative financial liabilities from the earliest date on which they can be required to pay. The tables included both interest and principal cash flows. Specifically, bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed repayment dates.

The table below summarizes the maturity profile of the Corporation and its subsidiaries' financial liabilities based on contractual undiscounted payments:

	Less Than 1 Year	1-5 Years	Over 5 Years	Total
June 30, 2015
Non-derivative financial liabilities
Non-interest bearing liabilities Variable interest rate	\$ 49,974,446	\$ 313,595	\$ -	\$ 50,288,041
liabilities	54,936,061	78,774,083	2,567,858	136,278,002
Fixed interest rate liabilities Financial guarantee	44,398,679	42,977,269	65,618,844	152,994,792
liabilities	2,314,687	-	-	2,314,687
	\$ 151,623,873	\$ 122,064,947	\$ 68,186,702	\$ 341,875,522
December 31, 2014
Non-derivative financial liabilities Non-interest bearing
liabilities Variable interest rate	\$ 32,971,821	\$ 145,279	\$ -	\$ 33,117,100
liabilities	55,150,465	102,854,300	5,619,154	163,623,919
Fixed interest rate liabilities Financial guarantee	30,622,779	35,702,021	63,098,950	129,423,750
liabilities	2,435,424	-	-	2,435,424
	\$ 121,180,489	\$ 138,701,600	\$ 68,718,104	\$ 328,600,193
June 30, 2014
Non-derivative financial liabilities Non-interest bearing
liabilities Variable interest rate	\$ 48,251,927	\$ 52,959	\$ -	\$ 48,304,886
liabilities	60,918,587	96,722,379	10,840,986	168,481,952
Fixed interest rate liabilities Financial guarantee	32,825,111	38,432,182	69,230,163	140,487,456
liabilities	2,472,864	-	-	2,472,864
	\$ 144,468,489	\$ 135,207,520	\$ 80,071,149	\$ 359,747,158

The amounts included above for financial guarantee liabilities were the maximum amounts the Corporation and its subsidiaries could be required to settle under the arrangement for the full guaranteed amount if that amount is claimed by the counterparty to the guarantee. Based on expectations at the balance sheet date, the Corporation and its subsidiaries consider that it is more likely than not that none of the amount will be payable under the arrangement.

32. TRANSACTIONS WITH RELATED PARTIES

Balances and transactions between the Corporation and its subsidiaries, which are related parties of the Corporation, have been eliminated on consolidation and are not in this note. Details of transactions between the Corporation and its subsidiaries and other related parties were disclosed below:

a. Operating revenues

	Related Parties		For the Three Months Ended June 30	For the Six Months Ended June 30
Account Items	Types	2015	2014	2015	2014
Revenue from sales of goods	The Corporation and its subsidiaries as key management personnel of other related parties	\$ 921,212	\$ 872,309	\$ 1,928,016	\$ 2,120,140
	Other related parties as key management personnel of subsidiaries	505,804	902,376	1,021,749	1,890,937
	Other related parties as supervisors of the Corporation and its subsidiaries	414,581	352,228	826,242	936,209
	Others	301,790	157,811	587,823	283,724
		\$ 2,143,387	\$ 2,284,724	\$ 4,363,830	\$ 5,231,010
Construction contract revenue	The Corporation and its subsidiaries as key management personnel of other related parties	\$ 496,377	\$ 314,668	\$ 884,510	\$ 523,996
	Others	255,089	2,653	435,938	6,161
		\$ 751,466	\$ 317,321	\$ 1,320,448	\$ 530,157

Sales to related parties were made under normal terms. The construction contracts undertaken by the Corporation and its subsidiaries with related parties were different from those with unrelated parties; therefore, the prices were not comparable. However, the collection terms have no material differences.

b. Purchase of goods

		For the Three Months Ended June 30			For the Six Months Ended June 30
Related Parties Types	2015		2014		2015		2014
Companies with significant influence over subsidiaries Associates Other related parties as key	\$	340,782 58,672	\$	1,144,446 51,998	\$	592,283 107,049	\$	1,144,446 114,583
management personnel of subsidiaries Others		58,281 1,586		59,937 97,823		131,681 4,430		111,783 98,438
	\$	459,321	\$	1,354,204	\$	835,443	\$	1,469,250

Purchases from related parties were made under normal terms.

c. Receivables from related parties

Account Items	Related Parties Types	June 30, 2015	December 31, 2014	June 30, 2014
Notes and accounts receivable	The Corporation and its subsidiaries as key management personnel of other related parties	\$ 440,286	\$ 327,329	\$ 850,497
	Other related parties as key management personnel of subsidiaries	376,990	391,629	403,542
	Others	120,222	178,235	61,931
		\$ 937,498	\$ 897,193	\$ 1,315,970

No guarantee was received for receivables from related parties. No impairment was recognized for the six months ended June 30, 2015 and 2014 on receivables from related parties.

d. Payables to related parties

Account Items	Related Parties Types	June 30, 2015	December 31, 2014	June 30, 2014
Notes and accounts payable	Companies with significant influence over subsidiaries	\$ 298,255	\$ 632,506	\$ 667,217
	Associates	65,752	30,259	38,258
	Other related parties as key management personnel of subsidiaries	19,758	26,589	20,225
	Others	7,333	357	19,260
		\$ 391,098	\$ 689,711	\$ 744,960

The outstanding payables to related parties were unsecured.

e. Disposal of other assets

		Price		Gain on Disposal
		For the Six Months		For the Six Months
		Ended June 30		Ended June 30
Related Parties Types	Account Items	2015	2014	2015	2014
Associates	Intangible assets	\$ -	\$ 114,286	\$ -	\$ 94,366

The subsidiary KRTC acquired 25% equity of IPASS Corporation (IPASS) in the amount of NT\$130,000 thousand through investment in cash of NT\$10,000 thousand and transfer of intangible assets in February 2014. Gain on disposal of intangible assets, after deducting transaction cost of NT\$5,714 thousand, amounted to NT\$94,366 thousand of which NT\$23,259 thousand was deferred by the percentage of ownership and recognized as reduction in investments accounted for using equity method. The subsidiary ICSC further invested in IPASS for NT\$40,000 thousand in February 2014, acquiring 7% equity, which increased the Corporation and its subsidiaries' total equity in IPASS to 32%.

f. Acquisition of financial assets - for the six months ended June 30, 2015

		Number of Shares
Related Parties Types	Account Item	(In Thousand)	Investee	Price
The Corporation as key management personnel of other related parties	Investments accounted for using equity method	24,610	Taiwan Rolling Stock Co., Ltd.	\$ 260,866

g. Others

	Related Parties		For the Three Months Ended June 30	For the Six Months Ended June 30
Account Items	Types	2015	2014	2015	2014
Service and other revenues	The Corporation and its subsidiaries as key management personnel of other related parties	\$ 218,560	\$ 288,307	\$ 354,243	\$ 551,879
	Others	36,184	31,290	69,444	56,954
		\$ 254,744	\$ 319,597	\$ 423,687	\$ 608,833

h. Endorsements and guarantees provided by the Corporation and its subsidiaries

Related Party Types	June 30,	December 31,	June 30,
	2015	2014	2014
The Corporation as key management personnel of others
Amount endorsed Amount utilized	\$ 2,314,687 (2,314,687)	\$ 2,435,424 (2,435,424)	\$ 2,472,864 (2,472,864)
	\$	\$	\$
	-	-	-

i. Compensation of key management personnel

	For the Three Months Ended June 30		For the Six Months Ended June 30
	2015	2014	2015	2014
Short-term employee benefits Post-employment benefits	\$ 27,704 335	\$ 25,343 572	\$ 53,461 669	\$ 46,050 1,143
	\$ 28,039	\$ 25,915	\$ 54,130	\$ 47,193

The remuneration to directors and other members of key management personnel were as follows:

33. ASSETS PLEDGED AS COLLATERAL OR SECURITY

The Corporation and its subsidiaries' assets mortgaged or pledged as collateral for long-term borrowings, short-term borrowings and bank overdraft, performance guarantees and bankers' acceptance bills, etc. were as follows (listed based on their carrying amounts):

	June 30, 2015	December 31, 2014	June 30, 2014
Net property, plant and equipment	\$ 123,048,222	\$ 138,346,513	\$ 165,839,211
Time deposits (Note 16)	6,958,645	7,355,696	7,214,908
Shares (see a. below)	6,554,435	6,993,170	5,795,590
Pledged receivables (Note 16) (see b. below)	2,000,000	2,000,000	2,000,000
Net investment properties	1,512,129	1,551,118	1,766,962
	\$ 140,073,431	\$ 156,246,497	\$ 182,616,671

a. Shares of the Corporation were pledged by the subsidiaries WIC and TIC and were recorded as treasury shares in the consolidated financial statements.
b. In accordance with revised agreements of build-operate-transfer contract in 2013, the subsidiary KRTC reclassified NT\$2,000,000 thousand including arbitration receivable - Kaohsiung City Government and part of the consideration of transferred assets to operating performance guarantees.

34. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in Note 19, significant commitments and contingencies of the Corporation and its subsidiaries as of June 30, 2015 were as follows:

a. The Corporation and its subsidiaries provided letters of credits for NT\$4.2 billion guaranteed by financial institutions for several construction and lease contracts, and guarantee notes for NT\$78.7 billion to banks and owners for loans, purchase agreements and warranty.
b. Unused letters of credit for importation of materials and machinery amounted to NT\$9.9 billion.
c. Property purchase and construction contracts for NT\$10.5 billion were signed but not yet recorded.
d. Construction contracts for NT\$39.9 billion were not yet being completed.
e. The Corporation and its subsidiaries entered into raw material purchase contracts with suppliers in Australia, Brazil, Canada, United States, Russia, Japan, Bahrain and domestic companies with contract terms of 1 to 10 years. Contracted annual purchases of 11,150,000 metric tons of coal, 23,000,000 metric tons of iron ore, and 3,340,000 metric tons of limestone are at prices negotiable with the counterparties. Purchase commitments as of June 30, 2015 were USD4.8 billion (including 18,330,000 metric tons of coal, 52,520,000 metric tons of iron ore, and 2,510,000 metric tons of limestone).
f. In August 2014, the associate Chang-Chun Ceck Auto. Parts Co., Ltd. (CCCA) entered into a credit facility agreement with Chinatrust Commercial Bank for a EUR2,000 thousand import loan commitment. Under the agreement, the Corporation and its associates should collectively hold at least 30% of CCCA's issued shares and one seat in the board of directors. As of June 30, 2015, the Corporation indirectly held 30% equity of CCCA and one seat in the board of directors.
g. In November 2014, the associate Honley Auto. Parts Co., Ltd. (HAPC) entered into credit facility agreements for a NT\$225,000 thousand factory building loan commitment and a JPY56,500 thousand import letter of credit loan commitment with Shanghai Commercial & Savings Bank. Under the agreement, the Corporation and its associates should collectively hold at least 30% of HAPC's issued shares and two seats in the board of directors. As of June 30, 2015, the Corporation held 30% equity of HAPC and two seats in the board of directors.
h. Endorsements/guarantees provided to the unconsolidated entities as of June 30, 2015 were as follows:

Endorsement/Guarantee Provider	Counterparty	Ending Balance
China Steel Corporation	Sakura Ferroalloys Sdn. Bhd.	NT\$ 2,314,687 thousand

35. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The following information was aggregated by the foreign currencies other than functional currencies of the Corporation and its subsidiaries and the exchange rates between foreign currencies and respective functional currencies were disclosed. The significant assets and liabilities denominated in foreign currencies were as follows:

	Foreign Currencies (In Thousands)		Exchange Rate	Carrying Amount (In Thousands of New Taiwan Dollars)
June 30, 2015
Monetary financial assets
USD	\$ 407,374	30.8600	(USD:NTD)	\$ 12,571,546
USD	28,148	6.2055	(USD:RMB)	868,642
USD	18,520	1.3029	(USD:AUD)	571,536
USD	3,926	22,042.8571	(USD:VND)	121,167
USD	1,123	3.9295	(USD:MYR)	34,646
USD	140	1.3441	(USD:SGD)	4,317
USD	52	63.7603	(USD:INR)	1,594
JPY	11,563,229	0.2524	(JPY:NTD)	2,918,559
JPY	74,230	0.0082	(JPY:USD)	18,736
JPY	28,598	0.0508	(JPY:RMB)	7,218
RMB	316,065	4.9730	(RMB:NTD)	1,571,791
				(Continued)

	Foreign Currencies (In Thousands)		Exchange Rate	Carrying Amount (In Thousands of New Taiwan Dollars)

RMB	\$ 15,373	0.1611	(RMB:USD)	\$ 76,452
VND	195,944,762	0.00004	(VND:USD)	268,444
VND	867	0.0014	(VND:NTD)	1
AUD	569	23.6850	(AUD:NTD)	13,471
AUD	86	0.7675	(AUD:USD)	2,026
CAD	59	24.8900	(CAD:NTD)	1,459
CAD	10	0.8065	(CAD:USD)	250
Non-monetary financial assets Available-for-sales financial assets
USD	90,638	30.8600	(USD:NTD)	2,797,083
JPY	7,150,000	0.2524	(JPY:NTD)	1,804,660
MYR	178,360	7.8535	(MYR:NTD)	1,400,749
Associate accounted for using equity method
USD	274,538	1.3029	(USD:AUD)	8,472,013
Monetary financial liabilities
USD	425,128	30.8600	(USD:NTD)	13,119,445
USD	110,000	63.7603	(USD:INR)	3,394,600
USD	106,482	6.2055	(USD:RMB)	3,286,027
USD	23,890	22,042.8571	(USD:VND)	737,234
USD	3,039	3.9295	(USD:MYR)	93,779
AUD	284,876	23.6850	(AUD:NTD)	6,747,296
JPY	14,266,831	0.2524	(JPY:NTD)	3,600,948
JPY	8,228	0.0082	(JPY:USD)	2,077
JPY	8,020	0.0508	(JPY:RMB)	2,024
RMB VND	2,068 5,193,989	4.9730 0.00004	(RMB:NTD) (VND:USD)	10,284 7,116

December 31, 2014
Monetary financial assets
USD	251,956	31.6500	(USD:NTD)	7,974,401
USD	15,558	6.2156	(USD:RMB)	492,413
USD USD	14,820 3,960	1.2218 22,607.1429	(USD:AUD) (USD:VND)	469,052 125,323
USD	2,751	63.1989	(USD:INR)	87,063
USD	2,495	3.6413	(USD:MYR)	78,956
USD	502	7.7574	(USD:HKD)	15,896
USD	23	1.3221	(USD:SGD)	742
JPY	11,699,386	0.2646	(JPY:NTD)	3,095,657
JPY	162,335	0.0084	(JPY:USD)	42,954
JPY	30,771	0.0520	(JPY:RMB)	8,142
VND	918,553,871	0.00005	(VND:USD)	1,308,939
VND	854	0.0014	(VND:NTD)	1
RMB RMB	175,493 28,606	5.0920 0.1609	(RMB:NTD) (RMB:USD)	893,610 145,663
RMB	32	1.2480	(RMB:HKD)	165
AUD	232	25.9050	(AUD:NTD)	6,022
AUD	112	0.8185	(AUD:USD)	2,905
				(Continued)

	Foreign Currencies (In Thousands)	Exchange Rate	Carrying Amount (In Thousands of New Taiwan Dollars)
CAD	\$ 45	27.2700	(CAD:NTD)	\$ 1,229
CAD	10	0.8616	(CAD:USD)	273
Non-monetary financial assets Available-for-sales financial assets
USD	265,616	31.6500	(USD:NTD)	8,406,750
JPY	6,042,000	0.2646	(JPY:NTD)	1,598,713
MYR	178,360	8.6920	(MYR:NTD)	1,550,304
KRW	35,870,250	0.0292	(KRW:NTD)	1,047,411
Associate accounted for using equity method
USD	270,600	1.2218	(USD:AUD)	8,564,690

Monetary financial liabilities
USD USD	449,301 103,030	31.6500 6.2156	(USD:NTD) (USD:RMB)	14,220,367 3,260,886
USD	110,000	63.1989	(USD:INR)	3,481,500
USD	22,932	22,607.1429	(USD:VND)	725,795
USD	4,163	3.6413	(USD:MYR)	131,747
JPY	14,149,122	0.2646	(JPY:NTD)	3,743,858
JPY	6,934	0.0520	(JPY:RMB)	1,835
JPY	7,111	0.0084	(JPY:USD)	1,882
AUD RMB	284,884 2,735	25.9050 5.0920	(AUD:NTD) (RMB:NTD)	7,379,921 13,924
VND	8,343,145	0.00005	(VND:USD)	11,889
June 30, 2014
Monetary financial assets
USD	351,048	29.8650	(USD:NTD)	10,484,053
USD	17,650	6.2076	(USD:RMB)	527,117
USD	10,349	60.0543	(USD:INR)	309,066
USD	10,274	1.0634	(USD:AUD)	306,821
USD	6,085	3.3430	(USD:MYR)	181,741
USD JPY	4,382 11,981,988	21,959.5588 0.2946	(USD:VND) (JPY:NTD)	130,882 3,529,893
JPY	124,792	0.0099	(JPY:USD)	36,764
JPY	35,570	0.0612	(JPY:RMB)	10,479
VND	825,424,148	0.00005	(VND:USD)	1,122,577
AUD	107	28.0850	(AUD:NTD)	3,001
AUD	80	0.9404	(AUD:USD)	2,250
CAD	15	0.9365	(CAD:USD)	412
RMB RMB	157,529 22,218	4.8110 0.1611	(RMB:NTD) (RMB:USD)	757,872 106,890

Non-monetary financial assets Available-for-sales financial assets
USD	291,217	29.8650	(USD:NTD)	8,697,191
JPY	6,338,000	0.2946	(JPY:NTD)	1,867,175
MYR	148,633	8.9335	(MYR:NTD)	1,327,815
KRW	42,352,900	0.0297	(KRW:NTD)	1,257,881

(Continued)

	Foreign Currencies (In Thousands)		Exchange Rate	Carrying Amount (In Thousands of New Taiwan Dollars)
Associate accounted for using equity method
CAD	\$	279,342	0.9959	(CAD:AUD)	\$	7,813,152
Monetary financial liabilities
USD		522,527	29.8650	(USD:NTD)		15,605,261
USD		110,000	60.0543	(USD:INR)		3,285,150
USD		94,797	6.2076	(USD:RMB)		2,831,116
USD		21,899	21,959.5588	(USD:VND)		654,028
USD		3,422	3.3430	(USD:MYR)		102,188
AUD		284,876	28.0850	(AUD:NTD)		8,000,752
CAD		278,345	27.9700	(CAD:NTD)		7,785,304
JPY		14,164,858	0.2946	(JPY:NTD)		4,172,967
JPY		8,872	0.0612	(JPY:RMB)		2,614
JPY		6,219	0.0099	(JPY:USD)		1,832
RMB		4,190	4.8110	(RMB:NTD)		20,159
						(Concluded)

For the three months ended June 30, 2015 and 2014 and six months ended June 30, 2015 and 2014, realized and unrealized net foreign exchange gains and losses were losses NT\$4,202 thousand, gains NT\$38,796 thousand, gains NT\$72,230 thousand and gains NT\$288,284 thousand, respectively. It is impractical to disclose net foreign exchange gains and losses by each significant foreign currency due to the variety of the foreign currency transactions and functional currencies of the each entity.

36. SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. Reported segments of the Corporation and its subsidiaries were as follows:

Steel manufacture and sell steel products, including the Corporation, DSC, CHSC, CSCSSB, CSVC, CSCI, HLSC and TSC.
a. Segment revenues and operating results

The following is an analysis of the Corporation and its subsidiaries' revenues and results of operations by reportable segment.

					Adjustment and
		Steel		Others		Elimination		Total
For the six months ended June 30, 2015
Revenues from external customers		\$ 122,146,595	\$	32,219,780	\$	-		\$ 154,366,375
Inter-segment revenues		26,287,359		21,338,123		(47,625,482)		-
Segment revenues		\$ 148,433,954	\$	53,557,903		\$ (47,625,482)		\$ 154,366,375
Segment profit	\$	7,079,399	\$	4,284,045	\$	(1,023,597)	\$	10,339,847
Interest income		131,915		129,395		(37,138)		224,172
Financial costs	(	1,673,562)		(167,098)		20,890		(1,819,770)
								(Continued)

	Steel	Others	Adjustment and Elimination	Total
Share of the profit of associates Other non-operating income and expenses Profit before income tax Income tax	\$ 2,839,480 1,641,386 10,018,618 2,141,264	\$ 942,325 348,167 5,536,834 448,175	\$ (3,606,545) (302,479) (4,948,869) (93,446)	\$ 175,260 1,687,074 10,606,583 2,495,993
Net profit for the period	\$ 7,877,354	\$ 5,088,659	\$ (4,855,423)	\$ 8,110,590
For the six months ended June 30, 2014
Revenues from external customers Inter-segment revenues	\$ 149,502,605 32,328,753	\$ 35,074,572 22,104,885	\$ - (54,433,638)	\$ 184,577,177 -
Segment revenues	\$ 181,831,358	\$ 57,179,457	\$ (54,433,638)	\$ 184,577,177
Segment profit Interest income Financial costs Share of the profit of associates Other non-operating income and expenses Profit before income tax Income tax	\$ 6,264,273 175,692 (1,770,692) 5,943,611 876,435 11,489,319 794,905	\$ 4,919,695 121,221 (156,277) 1,821,679 758,724 7,465,042 861,475	\$ 480,307 (28,812) 18,468 (7,443,332) (302,632) (7,276,001) 61,468	\$ 11,664,275 268,101 (1,908,501) 321,958 1,332,527 11,678,360 1,717,848
Net profit for the period	\$ 10,694,414	\$ 6,603,567	\$ (7,337,469)	\$ 9,960,512 (Concluded)

Inter-segment revenues were accounted for according to market price or cost-plus pricing.

Segment profit represented the profit from operations earned by each segment and was the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.

b. Segment total assets and liabilities

	June 30, 2015	December 31, 2014	June 30, 2014
Segment assets
Steel Others Adjustment and elimination	\$ 737,197,083 210,198,277 (268,190,822)	\$ 741,842,358 204,954,836 (264,057,174)	\$ 757,751,368 196,704,960 (260,407,900)
Consolidated total assets	\$ 679,204,538	\$ 682,740,020	\$ 694,048,428
Segment liabilities
Steel Others Adjustment and Elimination	\$ 310,849,025 74,514,068 (27,804,413)	\$ 298,981,035 64,828,118 (15,713,367)	\$ 335,251,840 65,899,376 (24,143,819)
Consolidated total liabilities	\$ 357,558,680	\$ 348,095,786	\$ 377,007,397

AI assistant

CSC — Interim / Quarterly Report 2015

51937_rns_2015-11-11_c953db2a-dd59-40ed-a157-94535e2c5ae1.pdf

China Steel Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2015 AND 2014 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) (Reviewed, Not Audited)

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

3. APPLICATION OF NEW AND AMENDED STANDARDS AND INTERPRETATIONS

Recognition and measurement of financial assets

Impairment of financial assets

Hedge accounting

3) Annual Improvements to IFRSs: 2010-2012 Cycle

4) Annual Improvements to IFRSs: 2011-2013 Cycle

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICY

c. Basis of consolidation

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

8. AVAILABLE-FOR-SALE FINANCIAL ASSETS

Sakura Ferroalloys Sdn. Bhd. in July 2015.

9. HELD-TO-MATURITY FINANCIAL ASSETS - NONCURRENT

10. DERIVATIVE FINANCIAL INSTRUMENTS FOR HEDGING

11. NOTES AND ACCOUNTS RECEIVABLE, NET (INCLUDING RELATED PARTIES)

12. AMOUNTS DUE FROM (TO) CUSTOMERS FOR CONSTRUCTION CONTRACTS

13. INVENTORIES

14. DEBT INVESTMENTS WITH NO ACTIVE MARKET

15. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

a. Material associates

b. Associates that are not individually material

16. OTHER FINANCIAL ASSETS

17. PROPERTY, PLANT AND EQUIPMENT

For the six months ended June 30, 2014

18. INVESTMENT PROPERTIES

19. BORROWINGS

c. Long-term borrowings

20. BONDS PAYABLE

21. ACCOUNTS PAYABLE (INCLUDING RELATED PARTIES)

22. OTHER PAYABLES

23. PROVISIONS

24. RETIREMENT BENEFIT PLANS

25. EQUITY

a. Share capital

d. Special reserves

e. Other equity items

f. Treasury shares

26. OPERATING REVENUES

27. PROFIT BEFORE INCOME TAX

a. Other income

b. Other gains and losses

c. Finance costs

d. Depreciation and amortization

f. Employee benefits

28. INCOME TAX

b. Income tax recognized directly in equity

d. Integrated income tax

29. EARNINGS PER SHARE

Net profit for the period

Weighted average number of ordinary shares outstanding (in thousand shares)

30. CAPITAL MANAGEMENT

31. FINANCIAL INSTRUMENTS

b. Fair value of financial instruments that are measured at fair value on a recurring basis

c. Categories of financial instruments

c) Other price risk

2) Credit risk

3) Liquidity risk

32. TRANSACTIONS WITH RELATED PARTIES

a. Operating revenues

b. Purchase of goods

c. Receivables from related parties

d. Payables to related parties

e. Disposal of other assets

i. Compensation of key management personnel

33. ASSETS PLEDGED AS COLLATERAL OR SECURITY

34. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

35. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

CSC Interim / Quarterly Report 2015