DELTA — Audit Report / Information 2018

Oct 30, 2018

DELTA ELECTRONICS, INC.

PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND REPORT OF INDEPENDENT

ACCOUNTANTS

DECEMBER 31, 2018 AND 2017

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

REPORT OF INDEPENDENT ACCOUNTANTS

To the Board of Directors and Shareholders of Delta Electronics, Inc.

Opinion

We have audited the accompanying parent company only balance sheets of Delta Electronics, Inc. (the “Company”) as at December 31, 2018 and 2017, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the audit reports of other independent accountants as described in the Other Matter - Scope of the Audit section of our report, the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of the Company as at December 31, 2018 and 2017, and its parent company only financial performance and its parent company only cash flows for the years then ended in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”.

Basis for opinion

We conducted our audits in accordance with the “Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants” and generally accepted auditing standards in the Republic of China (ROC GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Parent Company Only Financial Statements section of our report. We are independent of the Company in accordance with the Code of Professional Ethics for Certified Public Accountants in the Republic of China (the “Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements for the year 2018. These matters were addressed in the context of our audit of the parent company only financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

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Key audit matters for the Company’s parent company only financial statements of the current period are stated as follows:

Investments accounted for under equity method

Description

In October 2017, the Company publicly acquired 49.22% of VIVOTEK INC. through a tender offer. The allocation of acquisition price was completed in the first quarter of 2018.

As the net fair value of identifiable assets and liabilities and the allocation of goodwill are based on management’s estimation and involves accounting estimations and assumptions, we consider this equity price allocation transaction a key audit matter.

How our audit addressed the matter

We obtained an understanding of the basis and process of purchase price allocation which was estimated by management. We review the original data and the reasonableness of major assumptions, including growth rate, gross margin, discount rate and fair value calculation model as indicated in the purchase price allocation reports prepared by the appraisers appointed by the Company. Our procedures also included the following:

• A. Assessing the setting of parameters of valuation models and calculation formulas;

• B. Comparing expected growth rates and gross margin with historical data, economic and industry forecasts; and

• C. Comparing the discount rate with the cost of capital assumptions of cash generating units and rate of return of similar assets.

Impairment assessment of investments accounted for under equity method

Description

As of December 31, 2018, the recognised goodwill as a result of investment of Cyntec Co., Ltd., VIVOTEK INC., Eltek AS, Delta Controls Inc., Loy Tec electronics GmbH and Delta Greentech (China) Co., Ltd. are material. Refer to Notes 5 for accounting estimates of impairment assessment of investments accounted for under equity method and the uncertainty of assumptions.

As the balance of investment accounted for under equity method is material, the valuation model adopted in the impairment assessment has an impact in determining the recoverable amount which involves the significant accounting estimates and prediction of future cash flows. Thus, we consider the

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impairment assessment of investment accounted for under equity method a key audit matter. How our audit addressed the matter

We obtained management’s impairment assessment of investments accounted for under equity method, obtained an understanding of the process in determining the expected future cash flows based on each cash generating unit, and performed the following audit procedures:

• A. Assessing whether the valuation models adopted by the Company are reasonable for the industry, environment and the valued assets of the Company;

• B. Confirming whether the expected future cash flows adopted in the valuation model are in agreement with the budget provided by the business units; and

• C. Assessing the reasonableness of material assumptions, such as expected growth rates, operating margin and discount rates, by:

• (a) Checking the setting of parameters of valuation models and calculation formulas;

• (b) Comparing the expected growth rate and operating margin with historical data, economic and industrial forecast documents; and

• (c) Comparing the discount rate with cost of capital assumptions of cash generating units and rates of return of similar assets.

Other matter– Scope of the Audit

We did not audit the financial statements of certain investments accounted for under the equity method and information on investees disclosed in Note 13. These investments accounted for under equity method amounted to NT$14,483,106 thousand and NT$13,517,165 thousand, constituting 8.18% and 8.29% of total assets as of December 31, 2018 and 2017, respectively, and the share of profit (loss) of associates and joint ventures accounted for using equity method and share of other comprehensive income of subsidiaries associates and joint ventures accounted for using equity method was NT$454,932 thousand and NT$1,036,192 thousand, constituting 2.42% and 7.72% of total comprehensive income for the years then ended, respectively. Those financial statements and the information disclosed in Note 13 were audited by other independent accountants whose reports thereon have been furnished to us, and our opinion expressed herein is based solely on the audit reports of the other independent accountants.

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Responsibilities of management and those charged with governance for the parent company only financial statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”, and for such internal control as management determines is necessary to enable the preparation of the parent company only financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the parent company only financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including audit committee, are responsible for overseeing the Company’s financial reporting process.

Auditor’s responsibilities for the audit of the parent company only financial statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ROC GAAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent company only financial statements.

As part of an audit in accordance with ROC GAAS, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

A. Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;

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B. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control;

C. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management;

D. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern;

E. Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation; and

F.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the Company audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements of the current year and are therefore the key audit matters. We describe these matters in our auditor’s report unless law

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or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The parent company only financial statements of Delta Electronics, Inc. for the year ended December 31, 2018 expressed in US dollars are presented solely for the convenience of the reader and were translated from the financial statements expressed in New Taiwan dollars using the exchange rate of $30.715 to US$1.00 at December 31, 2018. This basis of translation is not in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Lin, Yu-Kuan Chou, Chien-Hung

for and on behalf of PricewaterhouseCoopers, Taiwan

March 11, 2019

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

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

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DELTA ELECTRONICS, INC.

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2018 AND 2017

(EXPRESSED IN THOUSANDS OF DOLLARS)

Assets Current assets Cash and cash equivalents Financial assets at fair value through profit or loss - current Financial assets at fair value through other comprehensive income - current Available-for-sale financial assets - current Contract assets - current Notes receivable, net Accounts receivable, net Accounts receivable - related parties Other receivables Other receivables - related parties Inventories Prepayments Other current assets Total current assets Non-current assets Financial assets at fair value through profit or loss - non-current Financial assets at fair value through other comprehensive income - non-current Available-for-sale financial assets - non-current Financial assets carried at cost - non-current Investments accounted for under equity method Property, plant and equipment Intangible assets Deferred income tax assets Other non-current assets Total non-current assets Total assets	Notes 6(1) 6(2) 6(3) 12(4) 6(15) and 12(5) 6(4) 6(4) 7 7 6(5) 8 6(2) 6(3) 12(4) 12(4) 6(6) 6(7) 6(8) 6(21) 6(9)	US Dollars December 31, 2018 $ 7,811 728 1,877 - 28,669 2,267 174,477 90,808 5,474 20,742 54,229 26,136 3,103 416,321 1,701 56,274 - - 4,747,252 478,157 30,748 15,572 17,680 5,347,384 $ 5,763,705	New Taiwan Dollars December 31, 2018 December 31, 2017 $ 239,908 $ 2,548,015 22,360 - 57,656 - - 336,906 880,554 - 69,639 221,128 5,359,056 5,712,895 2,789,163 2,050,988 168,173 55,971 637,076 719,292 1,665,641 1,327,331 802,753 710,039 95,328 140,358 12,787,307 13,822,923 52,231 - 1,728,446 - - 2,470,983 - 59,358 145,811,850 133,396,710 14,686,584 11,834,121 944,431 801,261 478,295 498,662 543,054 245,535 164,244,891 149,306,630 $ 177,032,198$ 163,129,553
			December 31, 2018 $ 239,908 22,360 57,656 - 880,554 69,639 5,359,056 2,789,163 168,173 637,076 1,665,641 802,753 95,328 12,787,307 52,231 1,728,446 - - 145,811,850 14,686,584 944,431 478,295 543,054 164,244,891 $ 177,032,198

(Continued)

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DELTA ELECTRONICS, INC. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2018 AND 2017

(EXPRESSED IN THOUSANDS OF DOLLARS)

Liabilities and Equity Current liabilities Contract liabilities - current Accounts payable Accounts payable - related parties Other payables Other payables - related parties Current income tax liabilities Other current liabilities Total current liabilities Non-current liabilities Long-term borrowings Deferred income tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities Equity Share capital Share capital - common stock Capital surplus Capital surplus Retained earnings Legal reserve Special reserve Unappropriated retained earnings Other equity interest Other equity interest Total equity Significant contingent liabilities and unrecorded contract commitments Significant subsequent events Total liabilities and equity

US Dollars New Taiwan Dollars Notes December 31, 2018 December 31, 2018 December 31, 2017 6(15) and 12(5) $ 13,895 $ 426,796 $ - 36,430 1,118,938 889,241 7 248,824 7,642,622 6,556,938 289,434 8,889,975 8,777,715 7 10,599 325,534 383,745 30,728 943,811 269,478 12(5) 20,972 644,159 1,010,849 650,882 19,991,835 17,887,966 6(10) 566,433 17,398,000 10,576,000 6(21) 240,237 7,378,875 8,096,464 6(11) 64,865 1,992,329 2,012,154 871,535 26,769,204 20,684,618 1,522,417 46,761,039 38,572,584 6(12) 845,692 25,975,433 25,975,433 6(13) 1,575,682 48,397,067 48,446,318 6(14) 755,704 23,211,444 21,373,388 230,771 7,088,143 2,767,749 1,079,606 33,160,104 33,082,224 ( 246,167 ) ( 7,561,032 ) ( 7,088,143 ) 4,241,288 130,271,159 124,556,969 9 11 $ 5,763,705$ 177,032,198$ 163,129,553

The accompanying notes are an integral part of these parent company only financial statements.

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DELTA ELECTRONICS, INC.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2018 AND 2017

(EXPRESSED IN THOUSANDS OF DOLLARS, EXCEPT EARNINGS PER SHARE DATA)

Items Sales revenue Operating costs Gross profit Operating expenses Selling expenses General and administrative expenses Research and development expenses Total operating expenses Operating profit Non-operating income and expenses Other income Other gains and losses Finance costs Share of profit of subsidiaries, associates and joint ventures accounted for under equity method, net Total non-operating income and expenses Profit before income tax Income tax expense Profit for the year

US Dollars New Taiwan Dollars Notes 2018 2018 2017 6(15) and 7 $ 1,268,073 $ 38,948,885 $ 38,577,747 6(5)(19)(20) and 7 ( 859,941 )( 26,413,103 )( 34,059,965 ) 408,132 12,535,782 4,517,782 6(19)(20) ( 22,151)( 680,375)( 692,610) ( 65,275 ) ( 2,004,916 ) ( 1,327,397 ) ( 273,892) ( 8,412,595) ( 165,447) ( 361,318 )( 11,097,886 )( 2,185,454 ) 46,814 1,437,896 2,332,328 6(16) 24,510 752,831 648,259 6(17) 1,766 54,240 ( 578,638 ) 6(18) ( 2,730)( 83,854)( 76,933) 6(6) 527,770 16,210,468 17,679,180 551,316 16,933,685 17,671,868 598,130 18,371,581 20,004,196 6(21) ( 5,811) ( 178,488) ( 1,623,644) $ 592,319 $ 18,193,093 $ 18,380,552

(Continued)

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DELTA ELECTRONICS, INC.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2018 AND 2017

(EXPRESSED IN THOUSANDS OF DOLLARS, EXCEPT EARNINGS PER SHARE DATA)

Items Other comprehensive income (loss) Components of other comprehensive income (loss) that will not be reclassified to profit or loss Gain (loss) on remeasurements of defined benefit plans Unrealised gain (loss) from investments in equity instruments measured at fair value through other comprehensive income Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for under equity method, components of other comprehensive income that will not be reclassified to profit or loss Income tax related to components of other comprehensive income that will not be reclassified to profit or loss Other comprehensive loss that will not be reclassified to profit or loss Components of other comprehensive income (loss) that will be reclassified to profit or loss Financial statements translation differences of foreign operations Unrealised gain (loss) on valuation of available-for-sale financial assets Share of other comprehensive income of associates and joint ventures accounted for under equity method that will be reclassified to profit or loss Income tax relating to the components of other comprehensive income that will be reclassified to profit or loss Other comprehensive income (loss) that will be reclassified to profit or loss Other comprehensive income (loss) for the year Total comprehensive income for the year Earnings per share Basic earnings per share Diluted earnings per share

US Dollars New Taiwan Dollars Notes 2018 2018 2017 6(11) ( $ 2,643 ) ($ 81,177 ) ( $ 147,085 ) ( 37,692 ) ( 1,157,722 ) - 12,386 380,450 19,459 6(21) ( 1,994 )( 61,235 ) 25,631 ( 29,943 )( 919,684 )( 101,995 ) 106,950 3,284,960 ( 8,118,122 ) - - ( 159,868 ) ( 58,190 ) ( 1,787,299 ) 2,907,524 6(21) 1,392 42,768 522,517 50,152 1,540,429 ( 4,847,949 ) $ 20,209 $ 620,745 ($ 4,949,944 ) $ 612,528 $ 18,813,838 $ 13,430,608 6(22) $ 0.23 $ 7.00 $ 7.08 $ 0.23 $ 6.96 $ 7.02

The accompanying note are an integral part of these parent company only financial statements.

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DELTA ELECTRONICS, INC.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2018 AND 2017

(EXPRESSED IN THOUSANDS OF DOLLARS)

Items	Notes	Share capital - common stock $25,975,433 - - - - - - - $25,975,433 $ 25,975,433 - 25,975,433 - - - - - - - - $ 25,975,433	Capital surplus $48,442,451 - - - - - - 3,867 $48,446,318 $ 48,446,318 - 48,446,318 - - - - - - ( 49,251) - $ 48,397,067	R	etained Earnings	Unappropriated retained earnings $31,915,572 18,380,552 ( 101,995) 18,278,557 ( 1,879,780) ( 2,240,193) ( 12,987,717) ( 4,215) $33,082,224 $ 33,082,224 1,118,916 34,201,140 18,193,093 ( 15,946) 18,177,147 ( 1,838,056) ( 4,320,394) ( 12,987,717) ( 62,680) ( 9,336) $ 33,160,104		Ot	her EquityInterest		Gain (loss) on hedging instruments $ - - - - - - - - $ - $ - 80,537 80,537 - 50,615 50,615 - - - - - $ 131,152	Total equity $ 124,114,426 18,380,552 ( 4,949,944) 13,430,608 - - ( 12,987,717) ( 348) $ 124,556,969 $ 124,556,969 - 124,556,969 18,193,093 620,745 18,813,838 - - ( 12,987,717) ( 111,931) - $ 130,271,159
				Legal reserve $19,493,608 - - - 1,879,780 - - - $21,373,388 $ 21,373,388 - 21,373,388 - - - 1,838,056 - - - - $ 23,211,444	Special reserve $ 527,556 - - - - 2,240,193 - - $ 2,767,749 $ 2,767,749 - 2,767,749 - - - - 4,320,394 - - - $ 7,088,143		Financial statements translation differences of foreign operations ( $ 1,016,396) - ( 4,895,443) ( 4,895,443) - - - - ( $ 5,911,839) ( $ 5,911,839) - ( 5,911,839) - 1,489,814 1,489,814 - - - - - ( $ 4,422,025)	Unrealised gain (loss) on financial assets at fair value through other comprehensive income Unrealised gain (loss) on available-for- sale financial assets $ - ( $ 1,277,551) - - - 20,710 - 20,710 - - - - - - - - $ - ( $ 1,256,841) $ - ( $ 1,256,841) ( 2,375,757) 1,256,841 ( 2,375,757) - - - ( 903,738) - ( 903,738) - - - - - - - - - 9,336 - ( $ 3,270,159) $ -		Hedging instrument gain (loss) on effective hedge of cash flow hedges $ 53,753 - 26,784 26,784 - - - - $ 80,537 $ 80,537 ( 80,537) - - - - - - - - - $ -
2017 New Taiwan Dollars Balance at January 1, 2017 Profit for the year Other comprehensive income (loss) for the year Comprehensive income (loss) for the year Distribution of 2016 earnings (Note 1) Legal reserve Special reserve Cash dividends Change in ownership interests in subsidiaries Balance at December 31, 2017 2018 New Taiwan Dollars Balance at January 1, 2018 Effects of retrospective application and retrospective restatement Balance after retrospective restatement at January 1, 2018 Profit for the year Other comprehensive income (loss) for the year Comprehensive income (loss) for the year Distribution of 2017 earnings (Note 2) Legal reserve Special reserve Cash dividends Change in ownership interests in subsidiaries Disposal of equity investment valued at fair value through other comprehensive income Balance at December 31, 2018	6(14) 6(14) 6(14) 3 and 12(4) 6(14) 6(14) 6(14) 6(3)

(Continued)

Note 1: Directors' remuneration amounting to $32,904 and employees' bonus amounting to $2,100,371 had been deducted from the Statement of Comprehensive Income in 2016. Note 2: Directors' remuneration amounting to $35,400 and employees' bonus amounting to $1,746,152 had been deducted from the Statement of Comprehensive Income in 2017.

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DELTA ELECTRONICS, INC.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2018 AND 2017

(EXPRESSED IN THOUSANDS OF DOLLARS)

Items	Notes	Share capital - common stock $ 845,692 - 845,692 - - - - - - - - $ 845,692	Capital surplus $ 1,577,285 - 1,577,285 - - - - - - ( 1,603) - $ 1,575,682	R	etained Earnings	Unappropriated retained earnings $ 1,077,071 36,429 1,113,500 592,319 ( 520) 591,799 ( 59,842) ( 140,660) ( 422,846) ( 2,041) ( 304) $ 1,079,606		Ot	her EquityInterest		Gain (loss) on hedging instruments $ - 2,622 2,622 - 1,648 1,648 - - - - - $ 4,270	Total equity $ 4,055,250 - 4,055,250 592,319 20,209 612,528 - - ( 422,846 ) ( 3,644) - $ 4,241,288
				Legal reserve $ 695,862 - 695,862 - - - 59,842 - - - - $ 755,704	Special reserve $ 90,111 - 90,111 - - - - 140,660 - - - $ 230,771		Financial statements translation differences of foreign operations ( $ 192,474 ) - ( 192,474) - 48,504 48,504 - - - - - ( $ 143,970 )	Unrealised gain (loss) on financial assets at fair value through other comprehensive income Unrealised gain (loss) on available-for- sale financial assets $ - ( $ 40,919) ( 77,348) 40,919 ( 77,348) - - - ( 29,423) - ( 29,423) - - - - - - - - - 304 - ( $ 106,467) $ -		Hedging instrument gain (loss) on effective hedge of cash flow hedges $ 2,622 ( 2,622) - - - - - - - - - $ -
2018 US Dollars Balance at January 1, 2018 Effects of retrospective application and retrospective restatement Balance after retrospective restatement at January 1, 2018 Profit for the year Other comprehensive income (loss) for the year Comprehensive income (loss) for the year Distribution of 2017 earnings (Note 1) Legal reserve Special reserve Cash dividends Change in ownership interests in subsidiaries Disposal of equity investment valued at fair value through other comprehensive income Balance at December 31, 2018	3 and 12(4) 6(14) 6(14) 6(14) 6(3)

Note 1: Directors' remuneration amounting to $1,153 and employees' bonus amounting to $56,850 had been deducted from the Statement of Comprehensive Income in 2017.

The accompanying notes are an integral part of these parent company only financial statements .

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DELTA ELECTRONICS, INC.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2018 AND 2017

(EXPRESSED IN THOUSANDS OF DOLLARS)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax for the year Adjustments to reconcile net income to net cash generated from operating activities Income and expenses having no effect on cash flows Depreciation Amortisation Reversal of provision for bad debts Interest expense Interest income Dividend income Share of profit of subsidiaries, associates accounted for under the equity method Net loss on financial assets or liabilities at fair value through profit or loss Gain on disposal of property, plant and equipment Gain on disposal of investments Impairment loss on financial assets Changes in assets/liabilities relating to operating activities Net changes in assets relating to operating activities Financial assets mandatorily measured at fair value through profit or loss Contract assets - current Notes receivable, net Accounts receivable Accounts receivable - related parties Other receivables Other receivables - related parties Inventories Prepayments Other current assets Other non-current assets Net changes in operating liabilities Contract liabilities - current Accounts payable Accounts payable - related parties Other payables Other payables - related parties Other current liabilities Other non-current liabilities Cash generated from operations Interest received Dividends received Interest paid Income taxes paid Net cash provided by operating activities

US Dollars New Taiwan Dollars Notes 2018 2018 2017 $ 598,130 $ 18,371,581 $ 20,004,196 6(7)(19) 31,808 976,968 790,192 6(8)(19) 8,974 275,642 152,722 12(4) - - ( 25,390) 6(18) 2,730 83,854 76,933 6(16) ( 530) ( 16,269) ( 19,062) 6(16) ( 2,419) ( 74,305) ( 48,792) 6(6) ( 527,770) ( 16,210,468) ( 17,679,180) 6(17) 456 14,014 - 6(17) ( 544) ( 16,705) ( 605) 6(17) - - ( 92,679) 6(17) and 12(4) - - 632,304 1,812 55,662 - 9,545 293,169 - 4,932 151,489 ( 44,383) ( 25,395) ( 780,022) 764,705 ( 24,033) ( 738,175) 115,184 ( 3,658) ( 112,342) 7,454 2,677 82,216 ( 287,489) ( 11,014) ( 338,308) ( 248,236) ( 3,019) ( 92,714) 295,238 1,475 45,302 ( 3,968) ( 4,041) ( 124,105) ( 29,931) - ( 2,979) ( 91,513) - 7,241 222,411 122,945 35,347 1,085,684 ( 478,090) 2,374 72,932 181,877 ( 1,895) ( 58,211) 21,689 4,508 138,452 219,434 ( 3,297)( 101,279) ( 183,409) 101,415 3,114,960 4,243,659 534 16,408 19,033 131,761 4,047,045 15,001,684 ( 2,608) ( 80,093) ( 76,111) ( 7,177)( 220,470) ( 730,282) 223,925 6,877,850 18,457,983

(Continued)

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DELTA ELECTRONICS, INC.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2018 AND 2017

(EXPRESSED IN THOUSANDS OF DOLLARS)

CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of available-for-sale financial assets Proceeds from disposal of available-for-sale financial assets Proceeds from capital reduction of available-for-sale financial assets Acquisition of financial asset at fair value through other comprehensive income Disposal of financial assets at fair value through other comprehensive income Acquisition of investments accounted for under equity method Proceeds from disposal of investments accounted for under equity method Proceeds from capital reduction of investments accounted for under equity method Decrease in cash surrender value of life insurance Decrease (increase) in prepayments for business facilities Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets (Increase) decrease in refundable deposits Cash inflow due to business combinations Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Decrease in short-term loans Proceeds from long-term debt Cash dividends paid Increase in guarantee deposits received Net cash flows used in financing activities (Decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

US Dollars New Taiwan Dollars Notes 2018 2018 2017 $ - $ - ( $ 56,501) - - 351,501 - - 95,733 ( 7,988) ( 245,356) - 24 733 - ( 14,573) ( 447,595) ( 4,689,117) - - 813 68,594 2,106,870 - 274 8,415 5,086 ( 6,295) ( 193,344) 82,691 6(7) ( 131,582) ( 4,041,549) ( 1,413,573) 7,455 228,995 43,778 6(8) ( 13,635) ( 418,812) ( 315,376) 661 20,298 ( 3,394) 6(23) 199 6,105 - ( 96,866)( 2,975,240) ( 5,898,359) 6(24) ( 1,465) ( 45,000) - 6(24) 222,106 6,822,000 2,552,435 6(14) ( 422,846) ( 12,987,717) ( 12,987,717) - - 2,635 ( 202,205)( 6,210,717) ( 10,432,647) ( 75,146) ( 2,308,107) 2,126,977 82,957 2,548,015 421,038 $ 7,811 $ 239,908 $ 2,548,015

The accompanying notes are an integral part of these parent company only financial statements .

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DELTA ELECTRONICS, INC. NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS DECEMBER 31, 2018 AND 2017

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT AS OTHERWISE INDICATED)

1. HISTORY AND ORGANIZATION

Delta Electronics, Inc. (the “Company”) was incorporated as a company limited by shares under the provisions of the Company Law of the Republic of China (R.O.C.). The Company are global leaders in power and thermal management solutions and are primarily engaged in the research and development, design, manufacturing and sale of electronic control systems, DC brushless fans, thermal system, and miniaturization key component, industrial automation products, digital display products, communication products, consumer electronics products, energy-saving lighting application, renewable energy applications, EV charging, energy technology services and c onsulting services of building management and control solutions, etc. The Company’s mission statement, to provide innovative, clean and energyefficient solutions for a better tomorrow, focuses on addressing key environmental issues such as global climate change. With the concern for the environment, the Company continues to develop innovative energy-efficient products and solutions. In recent years, the Company has transformed from a product provider towards a solution provider and the Company’s business is segregated into power electronics business, automation business, and infrastructure business.

2. THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE PARENT COMPANY ONLY FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORIZATION

These parent company only financial statements were authorized for issuance by the Board of Directors on March 11, 2019.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS”) as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by FSC effective from 2018 are as follows:

New Standards,Interpretations andAmendments	Effective date by International Accounting StandardsBoard
Amendments to IFRS 2, ‘Classification and measurement of share- based payment transactions’ Amendments to IFRS 4, ‘Applying IFRS 9, Financial instruments with IFRS 4, Insurance contracts’ IFRS 9, ‘Financial instruments’ IFRS 15, ‘Revenue from contracts with customers’ Amendments to IFRS 15, ‘Clarifications to IFRS 15, Revenue from contracts with customers’	January 1, 2018 January 1, 2018 January 1, 2018 January 1, 2018 January 1, 2018

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New Standards,Interpretations andAmendments

Effective date by International Accounting StandardsBoard

Amendments to IAS 7, ‘Disclosure initiative’ Amendments to IAS 12, ‘Recognition of deferred tax assets for unrealised losses’ Amendments to IAS 40, ‘Transfers of investment property’ IFRIC 22, ‘Foreign currency transactions and advance consideration’ Annual improvements to IFRSs 2014-2016 cycle - Amendments to IFRS 1, ‘First-time adoption of International Financial Reporting Standards’ Annual improvements to IFRSs 2014-2016 cycle - Amendments to IFRS 12, ‘Disclosure of interests in other entities’ Annual improvements to IFRSs 2014-2016 cycle - Amendments to IAS 28, ‘Investments in associates and joint ventures’

January 1, 2017 January 1, 2017 January 1, 2018 January 1, 2018 January 1, 2018 January 1, 2017 January 1, 2018

Except for the following, the above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

• A. IFRS 9, ‘Financial instruments’

• (a) Classification of debt instruments is driven by the entity’s business model and the contractual cash flow characteristics of the financial assets, which would be classified as financial asset at fair value through profit or loss, financial asset measured at fair value through other comprehensive income or financial asset measured at amortised cost. Equity instruments would be classified as financial asset at fair value through profit or loss, unless an entity makes an irrevocable election at inception to present in other comprehensive income subsequent changes in the fair value of an investment in an equity instrument that is not held for trading.

• (b) The Company has elected not to restate prior period financial statements using the modified retrospective approach under IFRS 9. For details of the significant effect as at January 1, 2018, please refer to Note 12(4)B.

• B. IFRS 15, ‘Revenue from contracts with customers’ and amendments

• (a) IFRS 15, ‘Revenue from contracts with customers’ replaces IAS 11, ‘Construction contracts’, IAS 18, ‘Revenue’ and relevant interpretations. According to IFRS 15, revenue is recognised when a customer obtains control of promised goods or services. A customer obtains control of goods or services when a customer has the ability to direct the use of, and obtain substantially all of the remaining benefits from, the asset.

The core principle of IFRS 15 is that an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity recognises revenue in accordance with that core principle by applying the following steps:

Step 1: Identify contracts with customer

Step 2: Identify separate performance obligations in the contract(s)

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Step 3: Determine the transaction price.

Step 4: Allocate the transaction price.

Step 5: Recognise revenue when the performance obligation is satisfied.

Further, IFRS 15 includes a set of comprehensive disclosure requirements that requires an entity to disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers.

• (b) The Company has elected not to restate prior period financial statements and recognised the cumulative effect of initial application as retained earnings at January 1, 2018, using the modified retrospective approach under IFRS 15. The significant effects of adopting the modified transition as of January 1, 2018 are summarised below:

• i. Presentation of assets and liabilities in relation to contracts with customers

In line with IFRS 15 requirements, the Group changed the presentation of certain accounts in the balance sheet as follows:

• (i) Under IFRS 15, customer contracts whereby services have been rendered but not yet billed are recognised as contract assets, but were previously presented as part of accounts receivable in the balance sheet. As of January 1, 2018, the balance amounted to $1,150,521.

• (ii) Under IFRS 15, liabilities in relation to expected volume discounts and refunds to customers are recognised as refund liabilities (shown as other current liabilities), but were previously presented as accounts receivable - allowance for sales returns and discounts in the balance sheet. As of January 1, 2018, the balance amounted to $2,583.

• (iii) Under IFRS 15, liabilities in relation to customer contracts are recognised as contract liabilities, but were previously presented as advance sales receipts in the balance sheet. As of January 1, 2018, the balance amounted to $505,466.

• ii. Please refer to Note 12(5) for other disclosures in relation to the first application of IFRS 15.

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

New standards, interpretations and amendments endorsed by FSC effective from 2019 are as follows:

New Standards,Interpretations andAmendments	Effective date by International Accounting StandardsBoard
Amendments to IFRS 9, ‘Prepayment features with negative compensation’ IFRS 16, ‘Leases’ Amendments to IAS 19, ‘Plan amendment, curtailment or settlement’ Amendments to IAS 28, ‘Long-term interests in associates and joint ventures’ IFRIC 23, ‘Uncertainty over income tax treatments’ Annual improvements to IFRSs 2015-2017 cycle	January 1, 2019 January 1, 2019 January 1, 2019 January 1, 2019 January 1, 2019 January 1, 2019

Except for the following, the above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment. IFRS 16, ‘Leases’

IFRS 16, ‘Leases’, replaces IAS 17, ‘Leases’ and related interpretations and SICs. The standard requires lessees to recognise a ‘right-of-use asset’ and a lease liability (except for those leases with terms of 12 months or less and leases of low-value assets). The accounting stays the same for lessors, which is to classify their leases as either finance leases or operating leases and account for those two types of leases differently. IFRS 16 only requires enhanced disclosures to be provided by lessors.

The Company expects to recognise the lease contract of lessees in line with IFRS 16. However, the Company does not intend to restate the financial statements of prior period (referred herein as the “modified retrospective approach”). On January 1, 2019, it is expected that both ‘right-of-use asset’ and lease liability will be increased by $464,525. Further, both investments accounted for under equity method and retained earnings will be increased by $1,943 due to effect from subsidiaries.

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

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs as endorsed by the FSC are as follows:

endorsed by the FSC are as follows:
New Standards,Interpretations andAmendments	Effective date by International Accounting StandardsBoard
Amendments to IAS 1 and IAS 8, ‘Disclosure Initiative-Definition of Amendments to IFRS 3,‘Definition of a business’ Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’ IFRS 17, ‘Insurance contracts’	January 1, 2020 January 1, 2020 To be determined by International Accounting Standards Board January 1, 2021

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The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

(1) Compliance statement

The parent company only financial statements of the Company have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”.

(2) Basis of preparation

• A. Except for the following items, the financial statements have been prepared under the historical cost convention:

• (a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.

• (b) Financial assets/liabilities at fair value through other comprehensive income and availablefor-sale financial assets measured of fair value.

• (c) Liabilities on cash-settled share-based payment arrangements measured at fair value.

• (d) Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.

• B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5.

• C. In adopting IFRS 9 and IFRS 15 effective January 1, 2018, the Company has elected to apply modified retrospective approach whereby the cumulative impact of the adoption was recognised as retained earnings or other equity as of January 1, 2018 and the financial statements for the year ended December 31, 2017 were not restated. The financial statements for the year ended December 31, 2017 were prepared in compliance with International Accounting Standard 39 (‘IAS 39’), International Accounting Standard 11 (‘IAS 11’), International Accounting Standard 18 (‘IAS 18’) and related financial reporting interpretations. Please refer to Notes 12(4) and (5) for details of significant accounting policies and details of significant accounts.

(3) Foreign currency translation

Items included in the parent company only financial statements are measured using the currency of

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the primary economic environment in which the Company operates (the “functional currency”). The parent company only financial statements are presented in New Taiwan Dollars, which is the Company’s functional and presentation currency.

• A. Foreign currency transactions and balances

• (a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise, except when deferred in other comprehensive income as qualifying cash flow hedges.

• (b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss.

• (c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss as part of the fair value gain or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

• (d) All foreign exchange gains and losses are presented in the statement of comprehensive income within ‘other gains and losses’.

• B. Translation of foreign operations

• (a) The operating results and financial position of all the group entities, associates and joint arrangements that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

  • i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

  • ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

  • iii. All resulting exchange differences are recognised in other comprehensive income

• (b) When the foreign operation partially disposed of or sold is an associate or joint arrangements, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, even the Group still retains partial interest in the former foreign associate or joint arrangements after losing significant influence over the former foreign associate, or losing joint control of the former

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joint arrangements, such transactions should be accounted for as disposal of all interest in these foreign operations.

• (c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even the Group still retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation.

• (d) Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing exchange rates at the balance sheet date.

(4) Classification of current and non-current items

• A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

• (a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle;

• (b) Assets held mainly for trading purposes;

• (c) Assets that are expected to be realised within 12 months from the balance sheet date;

• (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than 12 months after the balance sheet date.

• B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

• (a) Liabilities that are expected to be settled within the normal operating cycle;

• (b) Liabilities arising mainly from trading activities;

• (c) Liabilities that are to be settled within 12 months from the balance sheet date;

• (d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

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

• A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income. Financial assets at amortised cost or fair value through other comprehensive income are designated as at fair value through profit or loss at initial recognition when they eliminate or significantly reduce a measurement or recognition inconsistency.

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• B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting.

• C. At initial recognition, the Company measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Company subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.

• D. The Company recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

(6) Financial assets at fair value through other comprehensive income

• A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Company has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognised and derecognised using trade date accounting.

• C. They are initially recognised at fair value plus transaction costs. These financial assets are subsequently remeasured and stated at fair value. The changes in fair value of equity investments that were recognised in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognised as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

(7) Accounts and notes receivable

• A. Accounts and notes receivable entitle the Company a legal right to receive consideration in exchange for transferred goods or rendered services.

• B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

• C. The Company’s operating pattern of accounts receivable that are expected to be factored is for the purpose of selling, and the accounts receivable are subsequently measured at fair value, with any changes in fair value recognised in profit or loss.

(8) Impairment of financial assets

For debt instruments measured at fair value through other comprehensive income including accounts receivable or contract assets that have a significant financing component, at each reporting date, the Company recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant

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financing component, the Company recognises the impairment provision for lifetime ECLs.

(9) Derecognition of financial assets

The Company derecognises a financial asset when one of the following conditions is met:

• A. The contractual rights to receive the cash flows from the financial asset expire.

• B. The contractual rights to receive cash flows of the financial asset have been transferred and the Company has transferred substantially all risks and rewards of ownership of the financial asset.

• C. The contractual rights to receive cash flows of the financial asset have been transferred; however, the Company has not retained control of the financial asset.

(10) Inventories

Inventories are stated at the lower of cost and net realisable value. Inventories are recorded at standard cost. The cost of finished goods and work in process comprises raw materials, direct labour, other director costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses.

(11) Investments accounted for using equity method / subsidiaries and associates

• A. Subsidiaries are all entities controlled by the Company (including structured entries). The Company controls and entity when the Company is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

• B. Unrealised gains or losses on transactions between the Company and subsidiaries have been eliminated. The accounting policies of the subsidiaries are consistent with the policies adopted by the Company.

• C. The Company’s share of its subsidiaries’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Company’s share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company continues to recognise losses proportionate to its ownership.

• D. If changes in the Company’s shares in subsidiaries do not result in loss in control (transactions with non-controlling interest), transactions shall be considered as equity transactions, which are transactions between owners. Difference of adjustment of non-controlling interest and fair value of consideration paid or received is recognised in equity.

• E. When the Company loses control of a subsidiary, the Company remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognised in profit or loss.

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All amounts previously recognised in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Company loses control of a subsidiary, all gains or losses previously recognised in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

• F. Associates are all entities over which the Company has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognised at cost. The Company’s investments in associates include goodwill identified on acquisition, net of any accumulated impairment loss arising through subsequent assessments.

• G. The Company’s share of its associates’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Company’s share of losses in an associate equals or exceeds its interest in the associate (including any other unsecured receivables), the Company does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

• H. When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Company’s ownership percentage of the associate, the Company recognises change in ownership interests in the associate in ‘capital surplus’ in proportion to its ownership.

• I. Unrealised gains on transactions between the Company and its associates are eliminated to the extent of the Company’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates are consistent with the policies adopted by the Company.

• J. In the case that an associate issues new shares and the Company does not subscribe or acquire new shares proportionately, which results in a change in the Comapny’s ownership percentage of the associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘investments accounted for under the equity method’ shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Company’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

• K. Upon loss of significant influence over an associate, the Company remeasures any investment retained in the former associate at its fair value. Any difference between fair value and carrying amount is recognised in profit or loss.

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• L. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

• M. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss. If it retains significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss proportionately.

• N. Pursuant to the “Rules Governing the Preparation of Financial Statements by Securities Issuers,” profit (loss) of the current period and other comprehensive income in the parent company only financial statements shall equal to the amount attributable to owners of the parent in the consolidated financial statements. Owners’ equity in the parent company only financial statements shall equal to equity attributable to owners of the parent in the consolidated financial statements.

(12) Cash surrender value of life insurance

Premium paid for life insurance with saving nature belonging to cash surrender value is recognised as a deduction to insurance premium expense in current period and is added to the carrying amount of cash surrender value.

(13) Property, plant and equipment

• A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalised.

• B. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

• C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives (lease allocates its cost over contractual period). Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

• D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a

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change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are 2~15 years except for buildings, the estimated life of which is 5~55 years.

(14) Intangible assets

• A. Trademarks

• (a) Separately acquired trademarks with finite useful lives are stated at acquisition cost and are amortised on a straight-line basis over their estimated useful lives.

• (b) Certain trademarks which are assessed to generate net cash inflows and have indefinite useful lives are recorded at actual cost. These are not amortised and instead, are tested for impairment annually.

• B. Intangible assets other than goodwill and trademarks, mainly computer software, patents, customer relationship and technology authorization fees, are amortised on a straight-line basis over their estimated useful lives of 2~12 years.

(15) Impairment of non-financial assets

• A. The Company assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use.

Except for goodwill, when the circumstances or reasons for recognising impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised.

• B. The recoverable amounts of intangible assets with an indefinite useful life and intangible assets that have not yet been available for use should be evaluated periodically. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.

(16) Borrowings

Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the borrowings using the effective interest method.

(17) Accounts payable

Accounts payable are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. They are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. However, short-term accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial, they are measured subsequently at original invoice amount.

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(18) Derecognition of financial liabilities

A financial liability is derecognised when the obligation specified in the contract is either discharged or cancelled or expires.

(19) Offsetting financial instruments

Financial assets and liabilities are offset and reported in the net amount in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

(20) Employee benefits

• A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognised as expense in that period when the employees render service.

• B. Pensions

• (a) Defined contribution plans

For defined contribution plans, the contributions are recognised as pension expense when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments.

• (b) Defined benefit plans

  • i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Company in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of highquality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability; when there is no deep market in high-quality corporate bonds, the Company uses interest rates of government bonds (at the balance sheet date) instead.

  • ii. Remeasurements arising on defined benefit plans are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings.

  • iii. Past service costs are recognised immediately in profit or loss.

• C. Employees’ compensation and directors’ and supervisors’ remuneration

Employees’ compensation and directors’ and supervisors’ remuneration are recognised as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved

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amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is paid by shares, the Company calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

(21) Income tax

• A. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.

• B. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

• C. Deferred tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the parent company only financial statements. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

• D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred tax assets are reassessed.

• E. Current income tax assets and liabilities are offset and the net amount is reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realise the asset and settle the liability simultaneously.

• F. A deferred tax asset shall be recognised for the carryforward of unused tax credits resulting from acquisitions of equipment or technology, research and development expenditures and equity

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investments to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilised.

(22) Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.

(23) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are resolved by the Company’s shareholders. Cash dividends are recorded as liabilities;

(24) Revenue recognition

• A. Sales of goods

• (a) The Company manufactures and sells computers, information technology, electrical machines, power supply and related components products. Sales are recognised when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, or the Company has objective evidence that all criteria for acceptance have been satisfied.

• (b) Sales revenue is recognised based on the price specified in the contract, net of the estimated discounts and allowances. The revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. The estimation is subject to an assessment at each reporting date. No element of financing is deemed present as the control was transferred with a credit term of 30 to 90 days, which is consistent with market practice.

• (c) The Company’s obligation to provide a refund for faulty products under the standard warranty terms is recognised as a provision.

• (d) A receivable is recognised when the control of goods are transferred as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

• B. Installation of software and module services

• (a) The Company provides installation of some software and module services. Revenue from providing services is recognised in the accounting period in which the services are rendered. For fixed-price contracts, revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided. This is determined based on the actual cost spent relative to the total expected cost. The customer pays at the time specified in the payment schedule. If the services rendered exceed the payment, a contract asset is recognised. If the payments exceed the services rendered, a

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contract liability is recognised.

• (b) Some contracts include sales and installation services of equipment. The equipment and the installation services provided by the Company are not distinct and are identified to be one performance obligation satisfied over time since the installation services involve significant customisation and modification.

• (c) The Company’s estimate about revenue, costs and progress towards complete satisfaction of a performance obligation is subject to a revision whenever there is a change in circumstances. Any increase or decrease in revenue or costs due to an estimate revision is reflected in profit or loss during the period when the management becomes aware of the changes in circumstances.

• C. Revenue from licencing intellectual property

The Company is entitled to collect usage-based royalty in return for licencing patented technologies and intellectual property lights to subsidiaries and associates under agreements. The Company recognises revenue when the performance obligation has been satisfied and the subsequent usage occurs.

• D. Incremental costs of obtaining a contract

Given that the contractual period lasts less than one year, the Company recognises the incremental costs of obtaining a contract as an expense when incurred although the Company expects to recover those costs.

(25) Government grants

Government grants are recognised at their fair value only when there is reasonable assurance that the Company will comply with any conditions attached to the grants and the grants will be received. Government grants are recognised in profit or loss on a systematic basis over the periods in which the Company recognises expenses for the related costs for which the grants are intended to compensate or Government grants related to property, plant and equipment are presented by deducting the grants from the asset’s carrying amount and are amortised to profit or loss over the estimated useful lives of the related assets as reduced depreciation expenses.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

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

Critical accounting estimates and assumptions

The Company makes estimates and assumptions based on the expectation of future events that are

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believed to be reasonable under the circumstances at the end of the reporting period. The resulting accounting estimates might be different from the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

Impairment assessment of goodwill

The impairment assessment of goodwill relies on the Company’s subjective judgement, including identifying cash-generating units, allocating assets and liabilities as well as goodwill to related cashgenerating units, and determining the recoverable amounts of related cash-generating units.

6. DETAILS OF SIGNIFICANT ACCOUNTS

• (1) Cash and cash equivalents

Cash and cash equivalents
Cash on hand and revolving funds Checking accounts and demand deposits	December31,2018 2,160 $ 237,748 239,908 $	December31,2017
		2,343 $ 2,545,672
		2,548,015 $

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

• B. Details of the Company’s cash pledged to others as collateral are provided in Note 8.

(1) Financial assets at fair value through other comprehensive income

Financial assets at fair value through other comprehensive income
Items		December	31,2018
Current items:
Financial assets mandatorily measured at fair value through profit
or loss
Listed stocks		$	15,854
Valuation adjustment			6,506
		$	22,360
Non-current items:
Financial assets mandatorily measured at fair value through profit
or loss
Listed stocks		$	30,843
Unlisted stocks			45,363
			76,206
Valuation adjustment	(		23,975)
		$	52,231

• A. Amounts recognised in profit or loss in relation to financial assets and liabilities at fair value through profit or loss are listed below:

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Year ended December 31, 2018

Financial assets mandatorily measured at fair
value through profit or loss
Equity instruments	($	14,014)

• B. The Company has no financial assets at fair value through profit or loss pledged to others.

• C. Information relating to credit risk is provided in Note 12(2) .

(2) Financial assets at fair value through other comprehensive income

	Items		December31,2018	December31,2018
Current items:
Equity instruments
Listed stocks			$	871,492
Valuation adjustment		(		813,836)
			$	57,656
Non-current items:
Equity instruments
Listed stocks			$	4,301,090
Unlisted stocks				153,610
				4,454,700
Valuation adjustment		(		2,726,254)
			$	1,728,446

• A. The Company has elected to classify investments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $1,786,102 as at December 31, 2018.

• B. For the year ended December 31, 2018, the Company sold listed stocks whose fair value was $733 to adjust the stock position, resulting to an accumulated loss on disposal of $9,336.

• C. Amounts recognised in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

		Year ended
	December31,2018
Equity instruments at fair value through other comprehensive income
Fair value change recognised in other comprehensive income	($	1,181,503)
Cumulative gains (losses) reclassified to retained earnings due to
derecognition	($	9,336)

• D. As at December 31, 2018, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at fair value through other comprehensive income held by the Company was

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$1,786,102.

• E. The Company has no financial assets at fair value through other comprehensive income pledged to others as collateral.

• F. Information relating to credit risk of financial assets at fair value through other comprehensive income is provided in Note 12(2).

• G. The information on available-for-sale financial assets and financial assets at cost as of December 31, 2017 is provided in Note 12(4).

(3) Notes and accounts receivable

31, 2017 is provided in Note 12(4). Notes and accounts receivable
		December	31,2018		December	31,2017
Notes receivable		$	69,639		$	221,128
Accounts receivable		$	5,422,863		$	5,764,041
Less: Allowance for uncollectible accounts	(		63,807)	(		51,146)
		$	5,359,056		$	5,712,895

• A. The ageing analysis of accounts receivable is as follows:

The ageing analysis of accounts receivable is as	follows:
Not past due 1 to 90 days 91 to 180 days 181 to 365 days Over 365 days	December31,2018 4,997,972 $ 322,024 34,514 4,546 - 5,359,056 $	December31,2017
		5,488,440 $ 215,165 9,290 - -
		5,712,895 $

The above aging analysis was based on past due date.

• B. As of December 31, 2018 and 2017, there was no notes receivable past due.

• C. The Company has no notes receivable and accounts receivable pledged to others as collateral.

• D. As at December 31, 2018 and 2017, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Company’s notes receivable were $69,639 and $221,128, and accounts receivable were $5,359,056 and $5,712,895, respectively.

• E. Information relating to credit risk of accounts receivable and notes receivable is provided in Note 12(2).

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(4) Inventories

December 31, 2018

					Allowance for
		Cost			valuation loss			Bookvalue
Raw materials	$	818,473	($		213,476)	$		604,997
Work in progress		159,169			-			159,169
Finished goods		983,795	(		137,141)			846,654
Inventory in transit		54,821			-			54,821
	$	2,016,258	($		350,617)	$		1,665,641
				December31,2017
					Allowance for
		Cost			valuation loss			Bookvalue
Raw materials	$	546,328	($		155,036)	$		391,292
Work in progress		120,064			-			120,064
Finished goods		873,495	(		134,940)			738,555
Inventory in transit		77,420			-			77,420
	$	1,617,307	($		289,976)	$		1,327,331
The cost of inventories recognised as		expense for the		year:
					2018			2017
Cost of goods sold				$	20,785,103		$	21,339,621
Loss on market value
decline and obsolete and slow-moving
inventories					41,600			15,483
Others			(		3,857)	(		4,464)
				$	20,822,846		$	21,350,640

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(5) Investments accounted for under the equity method

A. Details of investments accounted for under the equity method are set forth below:

Investee Subsidiaries: Delta International Holding Ltd. (DIH) Cyntec Co., Ltd. (Cyntec) Delta Electronics Int'l (Singapore) Pte. Ltd. (DEIL-SG) Delta Networks Holding Ltd. (DNH) Delta Electronics (Netherlands) B.V. (DEN) Vivotek Inc. (Vivo) Delta Electronics Capital Company (DECC) Allied Material Technology Corp. (AMT) Delta Networks, Inc. (Taiwan) (DNIT) UNICOM SYSTEM ENG. CORP. (UNICOM) Delta America Ltd. (DAL)(Note 1) DelBio Inc. (DelBio) PreOptix (Hong Kong) Co. Ltd. (PHK) Others Associates: Delta Electronics (Thailand) Public Co., Ltd. (DET)(Note 2)	Ownership (%) Bookvalue 94.00 67,413,894 $ 100.00 34,933,488 100.00 15,143,815 100.00 9,803,866 100.00 4,728,327 50.13 3,965,274 100.00 3,919,861 99.97 1,869,817 99.98 1,283,132 100.00 438,733 10.26 318,556 100.00 207,288 39.62 170,071 45,762 5.54 1,569,966 145,811,850 $ December31,2018	December31,2017	December31,2017
	Ownership (%) 94.00 100.00 100.00 100.00 100.00 50.13 100.00 99.97 99.98 100.00 10.26 100.00 39.62 5.54	Ownership (%) 94.00 100.00 100.00 100.00 100.00 48.80 100.00 99.97 99.98 100.00 10.26 100.00 39.62 5.54	Bookvalue
			57,087,661 $ 32,297,074 7,305,059 11,017,200 4,670,180 3,983,116 3,657,569 1,985,384 1,597,444 378,504 273,393 195,124 216,922 27,308 8,704,772
			133,396,710 $

Note 1: DAL was accounted for under equity method given 100% of consolidated ownership. The Company previously owned 10.26% equity of DAL. On October 3, 2016 and July 2, 2015, the Company acquired directly an additional 49.79% and 39.95% equity of DAL, respectively, through DEN and its subsidiaries, Castle Horizon Limited and Energy Dragon Global Limited.

• Note 2: DET was accounted for under equity method since over 20% shares with voting right of DET were held collectively by the Company and the subsidiary, DIH.

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• B. Share of profit/(loss) of subsidiaries and associates accounted for under equity method is shown as follows:

as follows:
	Investee			2018			2017
DEIL-SG			$	7,453,219		$	8,655,833
DIH				5,565,747			4,676,624
CYNTEC				2,210,357			1,949,899
DNH				551,507			706,300
DNIT				245,506			603,679
DECC		(		90,948)			128,185
DEN				37,310			198,602
AMT		(		115,567)	(		134,430)
DET				257,672			817,150
Others				95,665			77,338
			$	16,210,468		$	17,679,180

• C. The financial statements of investments using equity method were reviewed by other independent accountants. Share of other comprehensive income of associates was $454,932 and $1,036,192 for the years ended December 31, 2018 and 2017, respectively, and investments accounted for under equity method was $14,483,106 and $13,517,165 as of December 31, 2018 and 2017, respectively

• D. Information about subsidiaries of the Company is provided in Note 4(3) in the 2018 consolidated financial statements.

• E. The summarised financial information on the primary associates of the Company is shown as follows:

follows:
Companyname Delta Electronics (Thailand) Public Co., Ltd. (DET)	Principal place December 31, December 31, ofbusiness 2018 2017 Thailand 20.93% 20.93% Shareholdingratio(Note)	Nature of relationship Holds more than 20% of voting rights	Method of measurement
			Equity method

• Note: The shareholding ratio in associates represent the ratio of common shares held by the Company and its subsidiaries.

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	Balance sheet			DET	DET	DET
			December31,2018			December31,2017
	Current assets	$		36,209,901		$	33,541,968
	Non-current assets			9,734,999			8,809,093
	Current liabilities	(		11,779,439)	(		10,860,891)
	Non-current liabilities	(		1,812,976)	(		1,692,283)
	Total net assets	$		32,352,485		$	29,797,887
	Share in associate’s net assets	$		1,792,328		$	1,650,803
	Unrealised upstream and sidestream
	transactions	(		8,719)	(		110,193)
	Others	(		213,643)			7,164,162
	Carrying amount of the associate	$		1,569,966		$	8,704,772
	Statement of comprehensive income			DET
				2018			2017
	Revenue		$	50,003,204		$	44,900,209
	Profit for the year from continuing operations		$	4,767,009		$	4,398,990
	Profit attributable to non-controlling interests	(		9,827)	(		1,912)
	Other comprehensive (loss) income, net of tax	(		849,094)			341,519
	Total comprehensive income		$	3,908,088		$	4,738,597
	Dividends received from associates		$	532,089		$	684,591
	The Company’s investments in DET and Vivotek Inc. had quoted market prices. As at Decemb
	31, 2018 and 2017, fair values in proportion to	the Company’s ownership are as follows:
			December31,2018			December31,2017
	Delta Electronics (Thailand) Public Co., Ltd.		$	4,579,560		$	4,646,393
	(DET) (Note 1)
	Vivotek Inc. (Vivo) (Note 2)			3,988,939			3,893,243
			$	8,568,499		$	8,539,636

F. The Company’s investments in DET and Vivotek Inc. had quoted market prices. As at December 31, 2018 and 2017, fair values in proportion to the Company’s ownership are as follows:

Note : Had the fair value been calculated based on consolidated ownership, it would have been $17,298,030 and $17,550,474, respectively

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(6) Property, plant and equipment

roperty, plant and equipment
																		Unfinished
																		construction
						Buildings and		Machinery and				Testing					and equipment
At January 1, 2018			Land			structures			equipment			equipment			Others		under acceptance				Total
Cost		$	4,730,899		$	7,296,137		$	1,068,206		$	2,287,056		$	1,909,507		$	238,672		$	17,530,477
Accumulated depreciation and
impairment			-	(		2,007,607)	(		676,090)	(		1,925,295)	(		1,087,364)			-	(		5,696,356)
		$	4,730,899		$	5,288,530		$	392,116		$	361,761		$	822,143		$	238,672		$	11,834,121
2018
Opening net book amount		$	4,730,899		$	5,288,530		$	392,116		$	361,761		$	822,143		$	238,672		$	11,834,121
Additions			3,061,654			81,215			139,042			300,355			226,597			232,686			4,041,549
Acquired through business combination			-			-			-			-			172			-			172
Disposal	(		124,396)	(		46,717)	(		5,197)	(		104)	(		35,876)			-	(		212,290)
Transfer			-			266,196			22,724			18,839			3,570	(		311,329)			-
Depreciation charge			-	(		242,818)	(		143,626)	(		224,143)	(		366,381)			-	(		976,968)
Closing net book amount		$	7,668,157		$	5,346,406		$	405,059		$	456,708		$	650,225		$	160,029		$	14,686,584
At December 31, 2018
Cost		$	7,668,157		$	7,557,523		$	1,206,465		$	2,529,730		$	2,067,825		$	160,029		$	21,189,729
Accumulated depreciation and
impairment			-	(		2,211,117)	(		801,406)	(		2,073,022)	(		1,417,600)			-	(		6,503,145)
		$	7,668,157		$	5,346,406		$	405,059		$	456,708		$	650,225		$	160,029		$	14,686,584

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At January 1, 2017 Cost Accumulated depreciation and impairment 2017 Opening net book amount Additions Disposals Transfer Depreciation charge Closing net book amount At December 31, 2017 Cost Accumulated depreciation and impairment	Unfinished construction Buildings and Machinery and Testing and equipment Land structures equipment equipment Others under acceptance Total 4,730,899 $ 7,172,836 $ 982,602 $ 2,241,576 $ 1,221,138 $ 151,508 $ 16,500,559 $ - 1,756,123) ( 608,682) ( 1,929,354) ( 952,487) ( - 5,246,646) ( 4,730,899 $ 5,416,713 $ 373,920 $ 312,222 $ 268,651 $ 151,508 $ 11,253,913 $ 4,730,899 $ 5,416,713 $ 373,920 $ 312,222 $ 268,651 $ 151,508 $ 11,253,913 $ - 93,816 124,230 257,454 670,161 267,912 1,413,573 - 197) ( 5,056) ( 33,960) ( 3,960) ( - 43,173) ( - 29,689 25,878 34,009 91,172 180,748) ( - - 251,491) ( 126,856) ( 207,964) ( 203,881) ( - 790,192) ( 4,730,899 $ 5,288,530 $ 392,116 $ 361,761 $ 822,143 $ 238,672 $ 11,834,121 $ 4,730,899 $ 7,296,137 $ 1,068,206 $ 2,287,056 $ 1,909,507 $ 238,672 $ 17,530,477 $ - 2,007,607) ( 676,090) ( 1,925,295) ( 1,087,364) ( - 5,696,356) ( 4,730,899 $ 5,288,530 $ 392,116 $ 361,761 $ 822,143 $ 238,672 $ 11,834,121 $	Unfinished construction Buildings and Machinery and Testing and equipment Land structures equipment equipment Others under acceptance Total 4,730,899 $ 7,172,836 $ 982,602 $ 2,241,576 $ 1,221,138 $ 151,508 $ 16,500,559 $ - 1,756,123) ( 608,682) ( 1,929,354) ( 952,487) ( - 5,246,646) ( 4,730,899 $ 5,416,713 $ 373,920 $ 312,222 $ 268,651 $ 151,508 $ 11,253,913 $ 4,730,899 $ 5,416,713 $ 373,920 $ 312,222 $ 268,651 $ 151,508 $ 11,253,913 $ - 93,816 124,230 257,454 670,161 267,912 1,413,573 - 197) ( 5,056) ( 33,960) ( 3,960) ( - 43,173) ( - 29,689 25,878 34,009 91,172 180,748) ( - - 251,491) ( 126,856) ( 207,964) ( 203,881) ( - 790,192) ( 4,730,899 $ 5,288,530 $ 392,116 $ 361,761 $ 822,143 $ 238,672 $ 11,834,121 $ 4,730,899 $ 7,296,137 $ 1,068,206 $ 2,287,056 $ 1,909,507 $ 238,672 $ 17,530,477 $ - 2,007,607) ( 676,090) ( 1,925,295) ( 1,087,364) ( - 5,696,356) ( 4,730,899 $ 5,288,530 $ 392,116 $ 361,761 $ 822,143 $ 238,672 $ 11,834,121 $
		11,834,121 $

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(7) Intangible assets

ntangible assets
At January 1, 2018	Trademarks			Patents		Others		Total
Cost	$	413,164	$	101,569	$	1,412,260	$	1,926,993
Accumulated amortisation
and impairment	(	16,737)	(	67,864)	(	1,041,131)	(	1,125,732)
	$	396,427	$	33,705	$	371,129	$	801,261
2018
Opening net book amount	$	396,427	$	33,705	$	371,129	$	801,261
Additions		-		12,127		406,685		418,812
Amortisation	(	3,293)	(	7,913)	(	264,436)	(	275,642)
Closing net book amount	$	393,134	$	37,919	$	513,378	$	944,431
At December 31, 2018
Cost	$	413,164	$	113,696	$	1,818,945	$	2,345,805
Accumulated amortisation
and impairment	(	20,030)	(	75,777)	(	1,305,567)	(	1,401,374)
	$	393,134	$	37,919	$	513,378	$	944,431
At January 1, 2017	Trademarks			Patents		Others		Total
Cost	$	413,164	$	90,382	$	1,108,071	$	1,611,617
Accumulated amortisation
and impairment	(	13,445)	(	60,570)	(	898,995)	(	973,010)
	$	399,719	$	29,812	$	209,076	$	638,607
2017
Opening net book amount	$	399,719	$	29,812	$	209,076	$	638,607
Additions		-		11,187		304,189		315,376
Amortisation	(	3,292)	(	7,294)	(	142,136)	(	152,722)
Closing net book amount	$	396,427	$	33,705	$	371,129	$	801,261
At December 31, 2017
Cost	$	413,164	$	101,569	$	1,412,260	$	1,926,993
Accumulated amortisation
and impairment	(	16,737)	(	67,864)	(	1,041,131)	(	1,125,732)
	$	396,427	$	33,705	$	371,129	$	801,261

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A. Details of amortisation on intangible assets are as follows:

Operating costs Selling expenses Administrative expenses Research and development expenses	Years endedDecember31,	Years endedDecember31,
	2018 287 $ 4,649 144,431 126,275 275,642 $	2017
		83 $ 3,055 102,658 46,926
		152,722 $

• B. The Company acquired registered or under-application trademark rights such as , , VIVITEK , 麗訊 and . The Company’s trademarks are assessed to

• have finite useful lives. The remaining trademarks which have indefinite useful lives shall not be amortised but are tested for impairment annually.

• C. Trademarks with indefinite useful lives are allocated as follows to the Company’s cash-generating units identified according to operating segment:

units identified according to operating segment:
Trademarks: Power electronics business (It belonged to smart green life business before the first quarter of 2017)	December31,2018 386,823 $	December31,2017
		386,823 $

• D. Goodwill and trademarks with indefinite useful lives are allocated to the Company’s cashgenerating units identified according to operating segment. The recoverable amount of all cashgenerating units has been determined based on value-in-use calculations. These calculations use pre-tax cash flow projections based on financial budgets approved by the management covering a five-year period.

The recoverable amount calculated using the value-in-use exceeded their carrying amount, so trademark rights with indefinite useful lives were not impaired. Value-in-use calculations take into account net operating income, growth rate and discount rate.

Management determined budgeted operating profit margin based on past performance and their expectations of market development. The weighted average growth rates used are consistent with the projection included in industry reports. The discount rates used were pre-tax and reflected specific risks relating to the relevant operating segments.

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(8) Other non-current assets

Other non-current assets
Long-term borrowings Prepayments for business facilities Cash surrender value of life insurance Guarantee deposits paid Others Type ofborrowings Credit loans Credit lines Interest rate range	December31,2018 241,425 $ 60,780 34,220 206,629 543,054 $ December31,2018 17,398,000 $ 50,375,825 $ 0.53%~0.59%	December31,2017
		48,081 $ 69,195 13,922 114,337
		245,535 $
		December31,2017
		10,576,000 $
		45,404,000 $
		0.53%

- (9) Long term borrowings

As of December 31, 2018, the revolving loans can be drawn down during the period from May 1, 2018 to October 25, 2020 and are payable before the due date under the agreement.

(10) Pensions

A. Defined benefit plans

• (a) The Company has a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is not enough to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contribution for the deficit by next March.

• (b) The amounts recognised in the balance sheet are as follows:

	December	31,2018	December	31,2017
Present value of defined benefit obligations	($	3,072,318)	($	3,089,147)
Fair value of plan assets		1,182,795		1,090,620
Net defined benefit liability	($	1,889,523)	($	1,998,527)

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(c) Movements in net defined benefit liabilities are as follows:

	Present value of	Present value of
	defined benefit				Fair value		Net defined
		obligations			ofplanassets		benefitliability
Year ended December 31, 2018
Balance at January 1	($	3,089,147)		$	1,090,620	($	1,998,527)
Current service cost	(	30,605)			-	(	30,605)
Interest (expense) income	(	38,125)			13,354	(	24,771)
Past service cost	(	6,557)			-	(	6,557)
Effect of plan amendment	(	1,703)			-	(	1,703)
Remeasurements:	(	3,166,137)			1,103,974	(	2,062,163)
Return on plan assets
(excluding amounts included in
interest income or expense)		-			31,884		31,884
Change in financial assumptions	(	85,462)			-	(	85,462)
Change in demographic
assumptions	(	2,839)			-	(	2,839)
Experience adjustments	(	24,760)			-	(	24,760)
	(	113,061)			31,884	(	81,177)
Pension fund contribution		-			211,463		211,463
Paid pension		206,880	(		164,526)		42,354
Balance at December 31	($	3,072,318)		$	1,182,795	($	1,889,523)

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	Present value of	Present value of
		defined			Fair value		Net defined
	benefit obligations				ofplanassets		benefitliability
Year ended December 31, 2017
Balance at January 1	($	3,054,272)		$	1,028,142	($	2,026,130)
Current service cost	(	31,812)			-	(	31,812)
Interest (expense) income	(	45,379)			15,237	(	30,142)
Effect of plan amendment		47,483			-		47,483
	(	3,083,980)			1,043,379	(	2,040,601)
Remeasurements:
Return on plan assets		-	(		7,216)	(	7,216)
(excluding amounts included in
interest income or expense)
Change in financial assumptions	(	88,303)			-	(	88,303)
Change in demographic
assumptions	(	3,061)			-	(	3,061)
Experience adjustments	(	60,175)			-	(	60,175)
	(	151,539)	(		7,216)	(	158,755)
Pension fund contribution		-			176,742		176,742
Paid pension		146,372	(		122,285)		24,087
Balance at December 31	($	3,089,147)		$	1,090,620	($	1,998,527)

(d) The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit pension plan in accordance with the Fund’s annual investment and utilisation plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund” (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-thecounter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorized by the Regulator. The Company has no right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2018 and 2017 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

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(e) The principal actuarial assumptions used were as follows:

Discount rate Future salary increases	Years endedDecember31,	Years endedDecember31,
	2018 1% 3.00%	2017
		1.25%
		3.00%

Assumptions regarding future mortality experience are set based on actuarial advice in accordance with published statistics and experience in each territory.

Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

Increase Decrease 0.25% 0.25% December 31, 2018 Effect on present value of defined benefit obligation 86,255) ($ 89,737 $ December 31, 2017 Effect on present value of defined benefit obligation 87,952) ($ 91,610 $ Discountrate	Increase Decrease 0.25% 0.25% 87,743 $ 84,785) ($ 89,799 $ 86,694) ($ Future salaryincreases

The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once.

The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

• (f) Expected contributions to the defined benefit pension plan of the Company for the year ending December 31, 2109 amount to $34,647.

• (g) As of December 31, 2018, the weighted average duration of the retirement plan is 11 years.

The analysis of timing of the future pension payment was as follows:

The analysis of timing of the future pension payment was as follows:
Within 1 year 1-2 year(s) 2-5 years Over 5 years	77,204 $ 91,012 400,647 2,808,803
	3,377,666 $

B. Defined contribution plans

Effective July 1, 2005, the Company has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act, covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the

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Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. The pension costs under the defined contribution pension plan of the Company for the years ended December 31, 2018 and 2017 were $285,136 and $258,359, respectively.

(11) Share capital

• A. In accordance with the Company’s Articles of Incorporation, the total authorized common stock is 4 billion shares (including 100 million shares for stock warrants conversion). As of December 31, 2018, the total issued and outstanding common stock was 2,597,543 thousand shares with par value of $10 (in dollars) per share.

• B. On December 20, 2004, the Board of Directors of the Company adopted a resolution that allowed certain stockholders to issue 16 million units of global depository receipts (GDRs), represented by 80 million shares of common stock (Deposited Shares), with one unit of GDR representing 5 shares of common stock. After obtaining approval from SFB, these GDRs were listed on the Securities Exchange of Luxembourg on March 29, 2005, with total proceeds of US$134,666 thousand. The issuance of GDRs was represented by outstanding shares, therefore, there is no dilutive effect on the common shares’ equity. The main terms and conditions of the GDRs are as follows:

• (a) Voting rights

GDR holders may, pursuant to the Depositary Agreement and the relevant laws and regulations of the R.O.C., exercise the voting rights pertaining to the underlying common shares represented by the GDRs.

• (b) Redemption of GDRs

For sales and redemption of the underlying common shares represented by the GDRs when the holders of the GDRs request the Depositary to redeem the GDRs in accordance with the relevant R.O.C. regulations and the provisions in the Depositary Agreement, the Depositary may (i) deliver the underlying common shares represented by the GDRs to the GDR holders, or (ii) sell the underlying common shares represented by the GDRs in the R.O.C. stock market on behalf of the GDR holder. The payment of proceeds from such sale shall be made subject to the relevant R.O.C. laws and regulations and the provisions in the Depositary Agreement.

• (c) Distribution of dividends, preemptive rights and other rights

• Distribution of dividends, preemptive rights and other rights and interests of GDR units bear the same rights as common shares.

• (d) After considering the stock dividend distribution year by year, as of December 31, 2018, there were 709 thousand units outstanding, representing 3,543 thousand common shares of the Company’s common stock.

(12) Capital surplus

Pursuant to the R.O.C. Company Law, capital surplus arising from paid-in capital in excess of par

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value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Law requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

(13) Retained earnings

• A. Under the Company’s Articles of Incorporation approved by the shareholders on June 8, 2016, the current year’s earnings, if any, shall be distributed in the following order:

• (a) Payment of all taxes and dues.

• (b) Offset against prior years’ operating losses, if any.

• (c) Set aside 10% of the remaining amount as legal reserve, unless the accumulated amount of the legal reserve has reached the total authorized capital of the Company.

• (d) Setting aside or reversing a special reserve according to relevant regulations when necessary.

• (e) The remainder along with beginning unappropriated earnings shall be stockholders’ bonus. The appropriation of earnings shall be proposed by the Board of Directors and resolved by the shareholders. As the Company is in the growth stage, and taking into consideration the shareholders’ benefits, financial health and business development, the amount of bonus distributed to shareholders shall be no less than 60% of the distributable earnings for the current period. Cash dividends shall be at least 15% of the bonus distributed to shareholders.

• B. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

• C. (a) In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

• (b) The amounts previously set aside by the Company as special reserve on initial application of IFRSs in accordance with Jin-Guan-Zheng-Fa-Zi Letter No. 1010012865, dated April 6, 2012, shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently. Such amounts are reversed upon disposal or reclassified if the assets are investment property of land, and reversed over the use period if the assets are investment property other than land.

• D. The appropriations of 2017 and 2016 earnings had been approved by the shareholders during their meeting on June 11, 2018 and June 13, 2017, respectively. Details are summarised below:

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Legal reserve appropriated Special reserve appropriated Cash dividends	Years endedDecember31,	Years endedDecember31,	Years endedDecember31,
	Dividends per share Amount (indollars) 1,838,056 $ 4,320,394 12,987,717 5.0 $ 2017	2016
	Amount 1,838,056 $ 4,320,394 12,987,717	Amount 1,879,780 $ 2,240,193 12,987,717	Dividends per share (indollars)
			5.0 $

Information about the distribution of 2017 earnings by the Company as resolved by the stockholders will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

• E. The appropriations of 2018 earnings had been proposed by the Board of Directors on March 11, 2019. Details are summarised below:

2019. Details are summarised below:
Appropriation for legal reserve Appropriation for special reserve Cash dividends	2018
	Amount 1,819,309 $ 472,889 12,987,717	Dividends per share (indollars)
		5.0 $

As of March 11, 2019, the abovementioned 2018 earnings appropriation has not yet been approved by the stockholders.

• F. For the information relating to employees’ compensation and directors’ remuneration, please refer to Note 6(20).

(14) Operating revenue

Operating revenue
Revenue from contracts with customers	Year ended December31,2018
	38,948,885 $

• A. Disaggregation of revenue from contracts with customers

The Company derives revenue from the transfer of goods and services over time and at a point in time in the following major business:

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Revenue from external customer contracts Timing of revenue recognition At a point in time Over time			Year ended December 31,2018	Year ended December 31,2018
		Power electronics 13,560,390 $ 12,826,674 733,716 13,560,390 $	Automation Infrastructure 6,056,439 $ 6,773,670 $ 5,941,291 6,102,404 115,148 671,266 6,056,439 $ 6,773,670 $	Others 12,558,386 $ 754,924 11,803,462 12,558,386 $	Total 38,948,885 $ 25,625,293 13,323,592 38,948,885 $

B. Contract assets and liabilities

The Company has recognised the revenue-related contract assets primarily from automation equipment contracts and resolution of communication equipment power resource system; contract liabilities primarily pertain to advance sales receipts, advance receipts for automation equipment contract and resolution of communication equipment power resource system, etc.

Revenue recognised that was included in the contract liability balance at the beginning of the year is as follows:

Year ended December 31, 2018

Revenue recognised that was included in the contract liability balance at the beginning of the period

Advance sales receipts, advance receipts for automation equipment contract and resolution of communication equipment power resource $ 505,466 system, etc.

• C. Related disclosures for 2017 operating revenue are provided in Note 12(5) B.

(15) Other income

Other income
Interest income: Interest income from bank deposits Rental income Dividend income Others	Years endedDecember31,
	2018 16,269 $ 84,689 74,305 577,568 752,831 $	2017
		19,062 $ 81,146 48,792 499,259
		648,259 $

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(16) Other gains and losses

Other gains and losses
			Years ended	December31,
			2018			2017
Gain on disposal of property, plant and equipment		$	16,705		$	605
Gain on disposal of investments			-			92,679
Net currency exchange gain			50,170	(		19,583)
Loss on financial assets at fair value through
profit or loss	(		14,014)			-
Impairment loss on financial assets			-	(		632,304)
Miscellaneous disbursements			1,379	(		20,035)
		$	54,240	($		578,638)

(17) Finance costs

(17)	Finance costs
(18) (19)	Expenses by nature Employee benefit expense Interest expense Employee benefit expense Depreciation charges on property, plant and equipment Amortisation charges on intangible assets Post-employment benefits Defined contribution plans Defined benefit plans Other employee benefits	Years ended December31,
		2018 2017 83,854 $ 76,933 $ Years endedDecember31,	2017
			76,933 $
		2018 2017 9,261,432 $ 5,920,260 $ 976,968 790,192 275,642 152,722 10,514,042 $ 6,863,174 $ Years endedDecember31,	2017
			5,920,260 $ 790,192 152,722
			6,863,174 $
		2018 285,136 $ 63,636 348,772 8,912,660 9,261,432 $	2017
			258,359 $ 14,471
			272,830
			5,647,430
			5,920,260 $

• A. According to the Articles of Incorporation of the Company, a ratio of profit of the current year distributable, after covering accumulated losses, shall be distributed as employees’ compensation and directors’ remuneration. The ratio shall not be lower than 3% for employees’ compensation and shall not be higher than 1% for directors’ remuneration.

• B. For the years ended December 31, 2018 and 2017, employees’ compensation was accrued at

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$1,358,121 and $1,360,897, respectively; while directors’ remuneration was accrued at $39,144 and $35,400, respectively. The aforementioned amounts were recognised in salary expenses.

For the year ended December 31, 2018, the employees’ compensation and directors’ remuneration were estimated and accrued based on distributable profit of current year as prescribed by the Company’s Articles of Incorporation.

The employees’ compensation of $1,728,344 and directors’ remuneration of $29,400 for 2018 were resolved by the Board of Directors on March 11, 2019.

The employees’ compensation of $1,746,152 and directors’ remuneration of $35,400 for 2017 were resolved by the Board of Directors on March 8, 2018, and were in agreement with those amounts recognised in the 2017 financial statements.

Information about employees’ compensation and directors’ remuneration of the Company as resolved by the Board of Directors and approved by the shareholders will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(20) Income tax

• A. Income tax expense

• (a) Components of income tax expense:

Components of income tax expense:
			Years ended	December31,
			2018		2017
Current tax:
Current tax on profits for the year		$	962,286	$	988,363
Prior year income tax overestimation			-	(	50,909)
Total current tax			962,286		937,454
Deferred tax:
Origination and reversal of temporary
differences	(		978,754)		686,190
Impact of change in tax rate			194,956		-
Income tax expense		$	178,488	$	1,623,644

• (b) The income tax (charge)/credit relating to components of other comprehensive income is as follows:

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			Years ended	December31,	December31,
			2018		2017
Remeasurment of defined benefit plan		$	17,833	$	25,631
Gain (loss) on hedging instruments			10,625		-
Cash flow hedges			-	(	5,486)
Unrealised gain or loss on financial assets at
fair value through other comprehensive
income	(		86,245)		-
Currency translation differences	(		186,751)		528,003
Impact of change in tax rate			226,071		-
	($		18,467)	$	548,148
Reconciliation between income tax expense and	accounting profit
			2018		2017
Tax calculated based on profit before tax and	$		3,674,316	$	3,400,713
statutory tax rate
Effects from items disallowed by tax regulation	(		3,112,978)	(	1,473,194)
Effect from investment tax credits	(		382,850)	(	421,532)
Prior year income tax overestimation			-	(	50,909)
Additional 10% tax on undistributed earnings			-		168,566
	$		178,488	$	1,623,644

B. Reconciliation between income tax expense and accounting profit

• C. Amounts of deferred tax assets or liabilities as a result of temporary differences, tax losses and investment tax credits are as follows:

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									2018
									Recognised in
						Recognised in			other			Recognised
			January1			profit or loss			income			inequity			December31
Deferred tax assets:
- Temporary differences:
Loss allowance on excess inventories		$	56,283		$	18,142		$	-		$	-		$	74,425
Pension expense payable			266,059			16,780			22,196			-			305,035
Impairment of assets			115,537	(		102,990)			-			-			12,547
Others			60,783			25,505			-			-			86,288
			498,662	(		42,563)			22,196			-			478,295
-Deferred tax liabilities:
Land value increment tax	(		119,862)			-			-			-	(		119,862)
Long-term equity investments	(		7,409,749)			967,123			39,315	(		68,109)	(		6,471,420)
Others	(		566,853)	(		140,762)	(		79,978)			-	(		787,593)
	(		8,096,464)			826,361	(		40,663)	(		68,109)	(		7,378,875)
	($		7,597,802)		$	783,798	($		18,467)	($		68,109)	($		6,900,580)

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									2017
									Recognised in
						Recognised in			other			Recognised
			January1			profit or loss			income			in equity			December31
Deferred tax assets:
- Temporary differences:
Loss allowance on excess inventories		$	55,933		$	350		$	-		$	-		$	56,283
Pension expense payable			272,110	(		31,682)			25,631			-			266,059
Impairment of assets			17,785			97,752			-			-			115,537
Others			68,423	(		7,640)			-			-			60,783
			414,251			58,780			25,631			-			498,662
-Deferred tax liabilities:
Land value increment tax	(		119,862)			-			-			-	(		119,862)
Long-term equity investments	(		7,655,652)	(		281,434)			528,003	(		666)	(		7,409,749)
Others	(		97,831)	(		463,536)	(		5,486)			-	(		566,853)
	(		7,873,345)	(		744,970)			522,517	(		666)	(		8,096,464)
	($		7,459,094)	($		686,190)		$	548,148	($		666)	($		7,597,802)

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• D. The Company has not recognised taxable temporary differences associated with investment in subsidiaries as deferred tax liabilities. As of December 31, 2018 and 2017, the amounts of temporary differences unrecognised as deferred tax liabilities were $6,306,164 and $4,896,367, respectively.

• E. The Company’s income tax returns through 2016 have been assessed and approved by the Tax Authority.

(21) Earnings per share

Earnings per share
Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit from continuing operations attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares: Employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	YearendedDecember31,2018
	Weighted average number of ordinary shares Amount outstanding after tax (shares in thousands) 18,193,093 $ 2,597,543 18,193,093 $ 2,597,543 - 15,964 18,193,093 $ 2,613,507	Earnings per share (in dollars)
		7.00 $
		6.96 $

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==> picture [467 x 349] intentionally omitted <==

----- Start of picture text -----

Year ended December 31, 2017
Weighted average
number of
ordinary shares Earnings
Amount outstanding per share
after tax (shares in thousands) (in dollars)
Basic earnings per share
Profit attributable to ordinary
shareholders of the parent $ 18,380,552 2,597,543 $ 7.08
Diluted earnings per share
Profit from continuing
operations attributable to
ordinary shareholders of
the parent $ 18,380,552 2,597,543
Assumed conversion of all
dilutive potential ordinary
shares:
-
Employees’ compensation 20,412
Profit attributable to ordinary
shareholders of the parent
plus assumed conversion of
all dilutive potential ordinary
shares $ 18,380,552 2,617,955 $ 7.02
----- End of picture text -----

(22) Business combinations

• A. Based on the resolution of Board of Directors on April 30, 2018, the Company consummated a short-form merger with the subsidiary, Delta Green Life Co, Ltd., pursuant to Article 19 of Enterprises Mergers and Acquisitions Act. The merger became effective on August 1, 2018. The Company was the surviving entity in the merger.

• B. The book value of Delta Green Life Co., Ltd on the acquisition date is shown as follows:

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			August 1,2018
Contract asset - current		$	23,202
Accounts receivable			16,659
Inventories			2
Other current assets			272
Contract asset - non current			6,867
Property, plant and equipment			172
Other non-current assets			1,916
Short-term borrowings	(		45,000)
Contract liabilities - current	(		12,843)
Accounts payable	(		7,286)
Other payables	(		35,567)
Other current liabilities	(		324)
Other non-current liabilities	(		277)
Cash inflow arising from business combination			6,105
	($		46,102)

(23) Changes in liabilities from financing activities

Changes in liabilities from financing activities
Short-term borrowings At January 1, 2018 - $ Acquired in a business combination 45,000 Changes in cash flow from financing activities 45,000) ( At December 31, 2018 - $	Long-term borrowings 10,576,000 $ - 6,822,000 17,398,000 $	Liabilities from financing activities-gross
		10,576,000 $ 45,000 6,777,000
		17,398,000 $

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7. RELATED PARTY TRANSACTIONS

(1) Names and relationship of related parties

Names and relationship of related parties
Names andrelationship of related parties	Relationship withthe Company
Delta Electronics Int'l (Singapore) (DEIL-SG) DEI Logistics (USA) Corp. (ALI) CYNTEC ELECTRONICS (SUZHOU) CO., LTD Delta Networks, Inc. (Taiwan) (DNIT) Cyntec Co., Ltd. (Cyntec) Delta Electronics (Thailand) Public Co., Ltd. (DET) Delta Power Solutions (India) Pvt Ltd. Delta Electronics (Slovakia) s.r.o. Delta Electronics India Pvt Ltd. Delta Energy Systems (Singapore) PTE. LTD. Delta Electronics (Australia) Pty Ltd Digital Projection Ltd. Digital Projection Inc. Delta Greentech (Brasil) S.A. Delta Greentech (USA) Corporation	Subsidiary " " " " Associate " " " " " " " It was an associate before April 1, 2017, and became a subsidiary since April 1, It was an associate before April 1, 2017, and became a subsidiary since April 1, 2017. On May 1, 2018, it merged with DELTA ELECTRONICS (USA) INC.

(2) Significant transactions and balances with related parties

A. Sales

Sales
Sales of goods: Subsidiaries Associates Sales of services: Subsidiaries DEIL-SG Others Associates	Years ended December31,
	2018 2017 2,474,393 $ 1,041,488 $ 388,887 315,849 2,863,280 $ 1,357,337 $ Years ended December31,	2017
		1,041,488 $ 315,849
		1,357,337 $
	2018 11,705,723 $ 229,758 1,157,863 13,093,344 $	2017
		11,868,873 $ 180,696 385,575
		12,435,144 $

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The sales terms, including prices and collections, were negotiated based on cost, market, competitors and other factors.

B. Purchases

Purchases
Purchases of goods: Subsidiaries DEIL-SG Others Associates Purchases of services: Subsidiaries DNIT Others	Years endedDecember31,
	2018 16,338,432 $ 282,081 17,852 1,077,761 956,622 18,672,748 $	2017
		17,775,588 $ 185,799 17,611 954,024 659,957
		19,592,979 $

The purchase terms, including prices and payments, were negotiated based on cost, market, competitors and other factors.

• C. Period-end balances arising from sales of goods and services

Period-end balances arising from sales of goods	and services
Receivables from related parties: Subsidiaries DEIL-SG Others Associates	December31,2018 1,413,904 $ 747,011 628,248 2,789,163 $	December31,2017
		1,796,651 $ 147,281 107,056
		2,050,988 $

The receivables from related parties arise mainly from sales transactions of goods and services. The receivables are due 75 days after the date of sale. The receivables are unsecured in nature and bear no interest. There are no provisions held against receivables from related parties.

• D. Period-end balances arising from purchases of goods

Payables to related parties: Subsidiaries DEIL-SG Others Associates	December31,2018 6,917,806 $ 720,867 3,949 7,642,622 $	December31,2017
		6,232,192 $ 316,460 8,286
		6,556,938 $

The payables to related parties arise mainly from purchase transactions and are due 70 days after the date of purchase. The payables bear no interest.

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E. Period-end balances arising from other transactions

Other receivables-related parties Subsidiaries DEIL-SG ALI Others Associates	December31,2018 429,608 $ 97,863 30,619 78,986 637,076 $	December31,2017
		598,568 $ 7,951 70,471 42,302
		719,292 $

The above pertain mainly to collections or payments on behalf of others.

Other payables-related parties Subsidiaries DEIL-SG Others Associates	December31,2018 246,548 $ 69,790 9,196 325,534 $	December31,2017
		77,269 $ 302,182 4,294
		383,745 $

The above pertain mainly to triangular trade collections on behalf of others and so on.

F. Disposal of equipment:

osal of equipment:
Associates	Items		Year ended December 31,2018
			Disposalproceeds	disposal
	Other equipments		53,048 $	17,465 $

For the year ended December 31, 2017, the Company has not disposed equipments to related parties.

(3) Key management compensation

Key management compensation
Salaries and other short-term employee benefits	Years ended December31,
	2018 264,992 $	2017
		281,149 $

8. PLEDGED ASSETS

The Company’s assets pledged as collateral are as follows:

The Company’s assets pledged as	collateral are as follows:
Pledged assets Time deposits (shown as other current assets)	December31,2018 December31,2017 85,881 $ 137,085 $ Bookvalue	Pledgepurpose
	December31,2018 85,881 $
		Warranty

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9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS

(1) Contingencies

None.

(2) Commitments

A. Capital commitments

Capital expenditures contracted for at the balance sheet date but not yet incurred are as follows:

Costs of computer software Property, plant and equipment	December31,2018 285,000 $ 2,100,000 2,385,000 $	December31,2017
		- $ -
		- $

B. Operating lease commitments

The future aggregate minimum lease payments under non-cancellable operating leases are as follows:

follows:
Not later than one year Later than one year but not later than five years Later than five years	December31,2018 34,037 $ 82,637 167,452 284,126 $	December31,2017
		9,124 $ 35,175 6,480
		50,779 $

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

Information about the appropriation of 2018 earnings of the Company is provided in Note 6(14)E.

12. OTHERS

(1) Capital management

The Company’s objectives (including disposal Companys held for sale) when managing capital are to maintain an integrity credit rating and good capital structure to support operating and maximum stockholders’ equity.

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(2) Financial instruments

A. Financial instruments by category

December 31, 2018 December 31, 2017

Financial assets

Financial assets	December31,2018	December31,2017
Financial assets at fair value through profit or loss Financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income Selected designated investments in equity instruments Available-for-sale financial assets Available-for-sale financial assets Financial assets at cost Financial assets at amortised cost Cash and cash equivalents Notes receivable Accounts receivable Other receivables Financial liabilities Financial liabilities at amortised cost Accounts payable Other accounts payable Long-term borrowings (including current portion)	74,591 $ 1,786,102 $ - $ - - $ 239,908 $ 69,639 8,148,219 805,249 9,263,015 $ December31,2018 8,761,560 9,215,509 17,398,000 35,375,069 $	- $
		- $
		2,807,889 $ 59,358
		2,867,247 $
		2,548,015 $ 221,128 7,763,883 775,263
		11,308,289 $
		December31,2017
		7,446,179 9,161,460 10,576,000
		27,183,639 $

• B. Financial risk management policies

The Company’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Company’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Company’s financial position and financial performance.

• C. Significant financial risks and degrees of financial risks

• (a) Market risk

Foreign exchange risk

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• i. The Company operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the USD, RMB and EUR. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and net investments in foreign operations.

• ii. Management has set up a policy to require the Group companies to manage their foreign exchange risk against their functional currency. To manage their foreign exchange risk arising from future commercial transactions and recognised assets and liabilities, the Company uses forward foreign exchange contracts, foreign exchange swap contracts and options, transacted with Group treasury.

• iii. The Company’s businesses involve some non-functional currency operations. The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

(Foreign currency: functional currency) Financial assets Monetary items USD:NTD Non-monetary items USD:NTD THB:NTD Financial liabilities Monetary items USD:NTD	December31,2018	December31,2018	December31,2018
	Foreign currency amount (in thousands) 251,346 $ 3,176,901 $ 1,647,048 241,065 $	Exchange rate 30.715 30.715 0.9532 30.715	Book value (NTD)
			7,720,092 $ 97,578,529 $ 1,569,966 7,404,311 $

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December 31, 2017

	December31,2017
(Foreign currency: functional currency) Financial assets Monetary items USD:NTD Non-monetary items USD:NTD THB:NTD Financial liabilities Monetary items USD:NTD	Foreign currency amount Exchange Book value (in thousands) rate (NTD) 274,345 $ 29.760 8,164,507 $ 2,707,339 $ 29.760 80,570,415 $ 9,487,456 0.9176 8,704,772 219,021 $ 29.760 6,518,065 $

• iv. Total exchange gain (loss), including realised and unrealised arising from significant foreign exchange variation on the monetary items held by the Company for the years ended December 31, 2018 and 2017 amounted to $50,170 and ($19,583), respectively.

(Foreign currency: functional currency) Financial assets Monetary items USD : NTD Financial liabilities Monetary items USD : NTD (Foreign currency: functional currency) Financial assets Monetary items USD : NTD Financial liabilities Monetary items USD : NTD	YearendedDecember31,2018	YearendedDecember31,2018	YearendedDecember31,2018
		Sensitivity analysis
	Degree of Effect on Effect on other variation profit or loss comprehensiveincome 1% 77,201 $ - $ 1% 74,043 $ - YearendedDecember31,2017		Effect on other comprehensiveincome
		Sensitivity analysis
	Degree of variation 1% 1%	Effect on profit or loss 81,645 $ 65,181 $	Effect on other comprehensiveincome
			- -

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Price risk

• i. The Company’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio.

• ii The Company’s investments in equity securities comprise shares issued by the domestic companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 1% with all other variables held constant, post-tax profit for the years ended December 31, 2018 and 2017 would have increased/decreased by $746 and $0, respectively, as a result of gain/loss on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $17,861 and $28,079, respectively, as a result of other comprehensive income classified equity investment at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

• i. The Company’s main interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Company to cash flow interest rate risk which is partially offset by cash and cash equivalents held at variable rates. Borrowings issued at fixed rates expose the Company to fair value interest rate risk. The Company’s borrowings mainly bear fixed and variable rate. During 2018 and 2017, the Company’s borrowings at variable rate were denominated in NTD.

• ii. If the interest rate increases by 0.25%, with all other variables held constant, profit, net of tax for the years ended December 31, 2018 and 2017 would have decreased by $34,796 and $0, respectively. The main factor is that changes in interest expense result from floating-rate borrowings.

• (b) Credit risk

• i. Credit risk refers to the risk of financial loss to the Company arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of financial instruments which were settled in accordance with trading conditions.

• ii. According to the Company’s credit policy, the Company managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors.

• iii. Individual risk limits are set based on internal or external ratings in accordance with limits set by the credit controller. The utilisation of credit limits is regularly monitored.

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• iv. For banks and financial institutions, only well rated parties are accepted.

• v. The Company adopts the assumption under IFRS 9, that if the contract payments are past due over 180 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

• vi. The Company adopts the assumption under IFRS 9, that the default occurs when the contract payments are not expected to be recovered and are transferred to overdue receivables.

• vii. The Company classifies customer’s accounts receivable and contract assets in accordance with customer types. The Company applies the simplified approach using provision matrix, loss rate methodology to estimate expected credit loss under the provision matrix basis.

• viii. The Company uses the forecastability to adjust historical and timely information to assess the default possibility of accounts receivable and contract assets. On December 31, 2018, the provision matrix is as follows:

At December 31, 2018 Expected loss rate Total book value Loss allowance Expected loss rate Total book value Loss allowance	Not past due 0.00% 4,997,972 $ - $ 181-365 days past due 50.01% 9,093 $ 4,547 $	Not past due 0.00% 4,997,972 $ - $ 181-365 days past due 50.01% 9,093 $ 4,547 $	1-90 days past due 1.58% 327,189 $ 5,165 $ Over 365 days past due 100.00% 42,587 $ 42,587 $	1-90 days past due 1.58% 327,189 $ 5,165 $ Over 365 days past due 100.00% 42,587 $ 42,587 $	91-180 days past due 25.01% 46,022 $ 11,508 $ Total 5,422,863 $ 63,807 $	91-180 days past due 25.01% 46,022 $ 11,508 $ Total 5,422,863 $ 63,807 $
		50.01% 9,093 $		100.00% 42,587 $		5,422,863 $
		4,547 $		42,587 $		63,807 $

• ix. Movements in relation to the Company applying the simplified approach to provide loss allowance for notes receivable, accounts receivable, contract assets and overdue receivables are as follows:

receivables are as follows:
At January 1_IAS 39 Adjustments under new standards At January 1_IFRS 9 Acquired through business combinations At December 31		Year ended December31,2018
	Notes receivable - $ - - - - $	Accounts receivable 51,146 $ - 51,146 12,661 63,807 $	Contract assets - $ - - - - $	Overdue receivables - $ - - - - $	Total
					51,146 $ -
					51,146 12,661
					63,807 $

For provisioned loss in 2018, the reversal gain of impairment arising from customers’ contracts amounted to $0.

• x. Credit risk information of 2017 is provided in Note 12(4).

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(c) Liquidity risk

• i. Company treasury monitors rolling forecasts of the Company’s liquidity requirements to ensure it has sufficient cash to meet operational needs.

• ii. The table below analyses the Company’s non-derivative financial liabilities and net-settled or gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities:

Non-derivative financial liabilities:

December31,2018 Notes and accounts payable (including related parties) Other payables Long-term borrowings December31,2017 Notes and accounts payable (including related parties) Other payables Long-term borrowings	Less than 1year 8,761,560 $ 9,215,509 - Less than 1year 7,446,179 $ 9,161,460 -	Between 1 and2years - $ - 17,398,000 Between 1 and2years - $ - 10,576,000	Between 2 and 5 years - $ - - Between 2 and 5 years - $ - -	Over 5 years
				- $ - - Over 5 years - $ - -

• iii. The Company does not expect the timing of occurrence of the cash flows estimated through the maturity date analysis to be significantly earlier, nor expect the actual cash flow amount to be significantly different.

(3) Fair value information

• A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

• Level 3: Unobservable inputs for the asset or liability.

• B. Financial instruments not measured at fair value, the carrying amounts of cash and cash equivalents, notes receivable, accounts receivable, other receivables, accounts payable, other payables and long-term borrowings (including current portion), current portion are approximate to their fair values.

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• C. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities is as follows:

December 31, 2018 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Equity securities Financial assets at fair value through other comprehensive income Equity securities December 31, 2017 Assets Recurring fair value measurements Available-for-sale financial assets Equity securities	Level 1 46,895 $ 1,632,492 1,679,387 $ Level 1 2,676,305 $	Level 2 - $ - - $ Level 2 - $	Level3 27,696 $ 153,610 181,306 $ Level3 131,584 $	Total
				74,591 $ 1,786,102
				1,860,693 $
				Total
				2,807,889 $

• D. The methods and assumptions that the Company used to measure fair value are as follows:

• (a) The instruments that the Company used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

Listed shares Market quoted price Closing price

• (b) Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques that are approved for financial management.

• (c) When assessing non-standard and low-complexity financial instruments, the Company adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.

• (d) The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Company’s financial and non-financial instruments. Therefore, the estimated value derived using the valuation model is adjusted accordingly with additional inputs. In accordance with the Company’s management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent

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the fair value of financial and non-financial instruments at the parent company only balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.

• (e) The Company takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty.

• E. For the years ended December 31, 2018 and 2017, there was no transfer between Level 1 and Level 2.

• F. The following chart is the movement of Level 3 for the years ended December 31, 2018 and 2017:

2017:
		2018		2017
		Equity securities		Equity securities
At January 1	$	131,584	$	192,917
Effect of IFRS 9 adjustment		59,358		-
Acquired in the year		1,429		39,969
Gains or losses recognised in profit or loss		1,865	(	5,569)
Proceeds from capital reduction	(	12,930)	(	95,733)
At December 31	$	181,306	$	131,584

• G. Investment department is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions and periodical review.

The capital department establishes valuation policies, valuation processes and ensures compliance with the related requirements in IFRS. The related valuation results are reported to the management monthly. The management is responsible for managing and reviewing valuation processes.

• H. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

Non-derivative equity instrument: Unlisted shares	Fair value at December 31, 2018	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
	$ 181,306	Most recent non-active market price	Not applicable	-	Not applicable

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Non-derivative equity instrument: Unlisted shares	Fair value at December 31, 2017	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
	$ 131,584	Most recent non-active market price	Not applicable	-	Not applicable

• I. The Company has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets and liabilities categorised within Level 3 if the inputs used to valuation models have changed:

Financial assets Equity instruments Financial assets Equity instruments	Most recent non-active market price ± 1% Input Change Most recent non-active market price ± 1% Input Change	December	Favorable Unfavorable change change 1,536 $ 1,536) ($ 31,2018 Recognised in other comprehensive income Favorable Unfavorable change change 1,316 $ 1,316) ($ 31,2017 Recognised in other comprehensive income
		Favorable Unfavorable change change 277 $ 277) ($ Recognised in profit or loss December
		Favorable Unfavorable change change - $ - $ Recognised in profit or loss
		Favorable change - $

(4) Effects on initial application of IFRS 9 and information on application of IAS 39 in 2017

• A. Summary of significant accounting policies adopted in 2017:

• (a) Available-for-sale financial assets

  • i. They are non-derivatives that are either designated in this category or not classified in

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any of the other categories.

• ii. On a regular way purchase or sale basis, available-for-sale financial assets are recognised and derecognised using trade date accounting.

• iii. They are initially recognised at fair value plus transaction costs. These financial assets are subsequently remeasured and stated at fair value, and any changes in the fair value of these financial assets are recognised in other comprehensive income. Investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured or derivatives that are linked to and must be settled by delivery of such unquoted equity instruments are presented in ‘financial assets at cost’.

• (b) Loans and receivables

Accounts receivable

Notes receivable and accounts receivable are claims resulting from the sale of goods or services. Other receivables are those arising from transactions other than the sale of goods or services. Notes receivable, accounts receivable and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. However, for short-term accounts receivable without bearing interest, as the effect of discounting is insignificant, they are measured subsequently at original invoice amount.

• (c) Impairment of financial assets

• i. The Company assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is impaired as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or a group of financial assets that can be reliably estimated.

• ii. The criteria that the Company uses to determine whether there is objective evidence of an impairment loss is as follows:

  • (i) Significant financial difficulty of the issuer or debtor;

  • (ii) A breach of contract, such as a default or delinquency in interest or principal payments;

  • (iii) The Company, for economic or legal reasons relating to the borrower’s financial difficulty, granted the borrower a concession that a lender would not otherwise consider;

  • (iv) It becomes probable that the borrower will enter bankruptcy or other financial reorganization;

  • (v) The disappearance of an active market for that financial asset because of financial

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difficulties;

• (vi) Observable data indicating that there is a measurable decrease in the estimated future cash flows from a group of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial asset in the group, including adverse changes in the payment status of borrowers in the group or national or local economic conditions that correlate with defaults on the assets in the group;

• (vii) Information about significant changes with an adverse effect that have taken place in the technology, market, economic or legal environment in which the issuer operates, and indicates that the cost of the investment in the equity instrument may not be recovered;

• (viii) A significant or prolonged decline in the fair value of an investment in an equity instrument below its cost.

• iii. When the Company assesses that there has been objective evidence of impairment and an impairment loss has occurred, accounting for impairment is made as follows according to the category of financial assets:

• (i) Financial assets at amortised cost

The amount of the impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate, and is recognised in profit or loss. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment loss was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent that the carrying amount of the asset does not exceed its amortised cost that would have been at the date of reversal had the impairment loss not been recognised previously. Impairment loss is recognised and reversed by adjusting the carrying amount of the asset through the use of an impairment allowance account.

• (ii) Financial assets at cost

The amount of the impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at current market return rate of similar financial asset, and is recognised in profit or loss. Impairment loss recognised for this category shall not be reversed subsequently. Impairment loss is recognised by adjusting the carrying amount of the asset through the use of an impairment allowance account.

• (iii) Available-for-sale financial assets

The amount of the impairment loss is measured as the difference between the asset’s

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acquisition cost (less any principal repayment and amortisation) and current fair value, less any impairment loss on that financial asset previously recognised in profit or loss, and is reclassified from ‘other comprehensive income’ to ‘profit or loss’. If, in a subsequent period, the fair value of an investment in a debt instrument increases, and the increase can be related objectively to an event occurring after the impairment loss was recognised, such impairment loss is reversed through profit or loss. Impairment loss of an investment in an equity instrument recognised in profit or loss shall not be reversed through profit or loss. Impairment loss is recognised and reversed by adjusting the carrying amount of the asset through the use of an impairment allowance account.

B. The reconciliations of carrying amount of financial assets transferred from December 31, 2017, IAS 39, to January 1, 2018, IFRS 9, are as follows:

IAS 39 IFRS 9 Transferred into and measured at fair value through profit or loss Transferred into and measured at fair value through other comprehensive income -equity Impairment loss adjustment Fair value adjustment	Available- for-sale-equity 144,266 $ 2,663,623 - -	Available- for-sale-liability - $ - - -	Measured at cost - $ 59,358 - -	Retained Other earnings equity - $ - $ - - 626,735 626,735) ( 492,181 492,181) ( Effects

Under IAS 39, as the equity instruments which were classified as available-for-sale financial assets and financial assets at cost, amounting to $2,807,889 and $59,358, respectively, were reclassified as "financial assets at fair value through profit or loss" and "financial assets at fair value through other comprehensive income ", which resulted to an increase in retained earnings and decrease in other equity interest in the amounts of $1,118,916 and $1,118,916 under IFRS 9, respectively.

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• C. The significant accounts as of December 31, 2017 and for the year ended December 31, 2017 are as follows:

(a) Available-for-sale financial assets

	Items		December	31,2017
Current items:
Listed stocks			$	927,903
Valuation adjustment				35,738
Accumulated impairment		(		626,735)
			$	336,906
Non-current items:
Listed stocks			$	4,088,005
Unlisted shares				252,306
				4,340,311
Valuation adjustment		(		1,768,138)
Accumulated impairment		(		101,190)
			$	2,470,983

• i. The Company recognised loss of $159,868 in other comprehensive income for fair value change and reclassified $92,679 from equity to profit or loss for the year ended December 31, 2017.

• ii. At period end, there was a significant decline in the net value of equity investment held by the Company below its original cost. For the year ended December 31, 2017, the Company recognised impairment loss of $632,304.

iii. The Company has no available-for-sale financial assets pledged to others as collateral.

• (b) Financial assets at cost

Financial assets at cost
Items Non-current items: Unlisted shares	December31,2017
	59,358 $

According to the Company’s intention, its investment in stocks should be classified as ‘available-for-sale financial assets’. However, as stocks are not traded in active market, and no sufficient industry information of companies cannot be obtained, the fair value of the investment cannot be measured reliably. The Company classified those stocks as ‘financial assets at cost’.

• (c) Accounts receivable and overdue receivables

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Movements in the provision for impairment of accounts receivable are as follows:

							2017
			Individual				Group
			provision				provision			Total
At January 1		$		230		$	76,306		$	76,536
Reversal of impairment	(			230)	(		25,160)	(		25,390)
At December 31		$		-		$	51,146		$	51,146

• D. Credit risk information on December 31, 2017 and for the year ended December 31, 2017 are as follows:

• (a) Credit risk refers to the risk of financial loss to the Company arising from default by the clients or counterparties of financial instruments on the contract obligations as described below:

  • i. According to the Company’s credit policy, the Company managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors.

  • ii. Individual risk limits are set based on internal or external ratings in accordance with limits set by the manager of credit control. The utilisation of credit limits is regularly monitored.

  • iii. For banks and financial institutions, only well-rated parties are accepted.

  • iv. Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to customers, including outstanding receivables and committed transaction.

• (b) For the year ended December 31, 2017, the management does not expect any significant losses from non-performance by these counterparties.

• (c) The credit quality of accounts receivable that were neither past due nor impaired was in the following categories based on the Company’s credit quality control policy:

December31,2017
Group 1 3,377,861 $
Group 2 2,083,815
5,461,676 $
Company 1: Medium to low risk customers: These customers include large enterprise which
are operating well, and in which financial transparency is high and approved by
the headquarters’ credit controller as well as government and educational
institutions.

• Company 2: Normal risk customers: Customers other than the medium to low risk customers.

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(5) Effects of initial application of IFRS 15 and information on application of IAS 11 and IAS 18 in

2017

• A. The significant accounting policies applied on revenue recognition for the year ended December 31, 2017 are set out below:

• (a) Sales of goods

  • The Company is mainly engaged in manufacturing and sales of information, electric machinery, power supply, industrial automation, networking and communication equipment and components and its related products. Revenue is measured at the fair value of the consideration received or receivable taking into account of business tax, returns, rebates and discounts for the sale of goods to external customers in the ordinary course of the Company’s activities. Revenue arising from the sales of goods is recognised when the Company has delivered the goods to the customer, the amount of sales revenue can be measured reliably and it is probable that the future economic benefits associated with the transaction will flow to the entity. The delivery of goods is completed when the significant risks and rewards of ownership have been transferred to the customer, the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold, and the customer has accepted the goods based on the sales contract or there is objective evidence showing that all acceptance provisions have been satisfied.

• (b) Sales of services

The Company provides installation of certain software and module and energy technology services. Revenue is recognised if all of the following conditions are met and the cost incurred shall be recognised as the cost in the current period. If loss is expected to incur on the transaction, loss shall be recognised immediately.

• i. The amount of the revenue can be measured reliably;

• ii. It is probable that the economic benefits related to the transaction will flow to the enterprise;

• iii. The costs incurred and to be incurred associated with the transaction can be measured reliably; and

• iv The degree of completion of the transaction can be measured reliably at the balance sheet date.

• B. The revenue recognised by using above accounting policies for the year ended December 31, 2017 are as follows:

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Sales revenue Service revenue Other operating income	Year ended December31,2018
	24,739,768 $ 12,463,691 1,374,288
	38,577,747 $

• C. The effects and description on current balance sheet and comprehensive income statement if the Company continues adopting above accounting policies are as follows:

						December31,2018
			Balance by			Balance by		Effects from
			using			using previous		changes in
Balance sheet items			IFRS15		accounting policies		accounting policy
Accounts receivable, net		$	5,359,056		$	6,239,610	($	880,554)
Contract assets - current			880,554			-		880,554
Contract liabilities - current	(		426,796)			-	(	426,796)
Other current liabilities	(		644,159)	(		1,070,955)		426,796

There is no effect on comprehensive income.

• (a) Customer contracts where services were rendered but not yet billed, were previously presented as accounts receivable in the balance sheet, and are recognised as contract assets in accordance with IFRS 15 ‘Revenue from contracts with customers’.

• (b) Expected sales discounts and allowances were previously presented as accounts receivable - allowance, and reclassified as refund liabilities (shown as ‘other current liabilities’) under IFRS 15 ‘Revenue from contracts with customers’.

• (c) Advance sales receipts in relation to customer contracts under IFRS 15 ‘Revenue from contracts with customers’ are recognised as contract liabilities.

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

• A. Loans to others: Please refer to table 1.

• B. Provision of endorsements and guarantees to others: Please refer to table 2.

• C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 3.

• D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: Please refer to table 4.

• E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: Please refer to table 5.

• F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.

~77~

• G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 6.

• H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 7.

• I. Trading in derivative instruments undertaken during the reporting periods:None.

• J. Significant inter-company transactions during the reporting periods: Please refer to table 8.

• (2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China) ： Please refer to table 9.

(3) Information on investments in Mainland China

• A. Basic information: Please refer to table 10.

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland China: Please refer to table 6, 7 and 8 for significant transactions of purchases, sales, receivables and payables of investee companies in the Mainland China, and transactions between the Company indirectly through investees in a third area, Delta Electronics Int'l (Singapore) Pte. Ltd. (DEIL-SG) and Cyntec International Ltd. (CIL-Labuan), with investee companies in the Mainland China, for the year ended December 31, 2018.

14. OPERATING SEGMENT INFORMATION

Not applicable.

~78~

DELTA ELECTRONICS, INC. DETAILS OF ACCOUNTS RECEIVABLE DECEMBER 31, 2018

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Items Petty cash/revolving funds Demand Deposits Foreign exchange deposits Checking accounts deposits	(USD 3,621 thousand, exchange rate: 30.715) (JPY 201,468 thousand, exchange rate: 0.2782) (EUR 153 thousand, exchange rate: 35.200) (RMB 10 thousand, exchange rate: 4.4731) Summary		Amount 2,160 $ 65,020 111,227 56,048 5,381 45 27 239,908 $	Note

~79~

DELTA ELECTRONICS, INC. DETAILS OF ACCOUNTS RECEIVABLE DECEMBER 31, 2018

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

==> picture [506 x 14] intentionally omitted <==

----- Start of picture text -----

Customer name Summary Amount Note
----- End of picture text -----

Customer name Sum	mary		Amount	Note
A Company		$	848,322
B Company			416,318
C Company			369,821
D Company			271,846
				The balance of each customer has not
				exceeded 5% of the accounts
Others			3,516,556	receivable.
			5,422,863
Less: Allowance for
,,,,,,,,,bad debts	(		63,807)
		$	5,359,056

Note ︰ The company has confidential agreement, therefore, won't reveal name of the above client.

~80~

DELTA ELECTRONICS, INC. DETAILS OF INVENTORIES DECEMBER 31, 2018

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Items		Amount	Amount	Amount	Note
		Cost		Market value
Raw materials Work in progress Finished goods Inventory in transit		818,473 $ 159,169 983,795 54,821 2,016,258 $		831,419 $ 159,170 1,250,908 54,821 2,296,318 $	The net realisable value is the net market value. 〃 〃 〃

Note ： As of December 31,2018, the amount of loss on market value decline and obsolete and inventories is $350,617.

~81~

DELTA ELECTRONICS, INC. MOVEMENT SUMMARY OF INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD YEAR ENDED DECEMBER 31,2018 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Investee	Openingbalance	Openingbalance	Addit	ions	Red	uctions		Endingbalance		Marketprice or valueper share	Marketprice or valueper share	For Collateralize and pledge	Footnote
	Number of shares (Note 1)	Amount	Number of shares (Note 1)	Amount	Number of shares (Note 1)	Amount	Number of shares (Note 1)	Ownership (%)	Amount	Price (in NTD)	Totalprice
Delta International Holding Limited Cyntec Co., Ltd. Delta Networks Holding Limited Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Thailand) Public Co., Ltd. Allied Material Technology Corp Delta Electronics Capital Company Delta Electronics (Netherlands) B.V. PreOptix (Hong Kong) Co. Ltd. DelBio Inc. Delta America Ltd. Delta Networks, Inc. (Taiwan) UNICOM SYSTEM ENG. CORP. Vivotec Inc. Others Total	67,680 2,062,258 83,800 300 69,128 211,401 306,254 120,220 5,250 90,000 2,100 50,041 570 40,261 -	57,087,661 $ 32,297,074 11,017,200 7,305,059 8,704,772 1,985,384 3,657,569 4,670,180 216,922 195,124 273,393 1,597,444 378,504 3,983,116 27,308	- 170,033 - - - - 43,746 - - - - - - 2,084 -	10,326,233 $ 2,636,414 - 7,838,756 - - 262,292 58,147 - 12,164 45,163 - 60,229 93,355 18,454	- - - - - - - - - - - - - - -	- $ - 1,213,334) ( - 7,134,806) ( 115,567) ( - - 46,851) ( - - 314,312) ( - 111,197) ( -	67,680 2,232,291 83,800 300 69,128 211,401 350,000 120,220 5,250 90,000 2,100 50,041 570 42,345	94.00 100.00 100.00 100.00 5.54 99.97 100.00 100.00 39.62 100.00 10.26 99.98 100.00 50.13	67,413,894 $ 34,933,488 9,803,866 15,143,815 1,569,966 1,869,817 3,919,861 4,728,327 170,071 207,288 318,556 1,283,132 438,733 3,965,274 45,762	996.07 15.65 116.99 50,479.38 66.25 8.84 11.20 39.33 32.39 2.30 151.69 25.64 769.71 94.20	67,413,894 34,933,488 9,803,866 15,143,815 4,579,560 1,869,817 3,919,861 4,728,327 170,071 207,288 318,556 1,283,132 438,733 3,988,939 45,762	None 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃	Note 2
		133,396,710 $		21,351,207 $		8,936,067) ($			145,811,850 $		148,845,109 $

Note 1: Per thousand share.

Note 2: The book value was the initial investment cost plus gains on investment evaluated based on the weighted average comprehensive shareholding ratio of 20.01%. Market value of $4,579,560 was calculated in proportion to the Company’s ownership. The market value shall be $17,298,030 if it was calculated by the weighted average comprehensive shareholding ratio of 20.01% at the end of the year.

~82~

DELTA ELECTRONICS, INC. MOVEMENT SUMMARY OF PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION YEAR ENDED DECEMBER 31, 2018 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Please refer to the Note 6(7) disclosure.

~83~

DELTA ELECTRONICS, INC. DETAILS OF ACCOUNTS PAYABLE DECEMBER 31, 2018

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Vendor name Taiwan Yuasa Battery Co., Ltd. Others		Amount 113,517 $ 1,005,421 1,118,938 $	Note
			The balance of each vender has not exceeded 5% of the accounts payable.

~84~

DELTA ELECTRONICS, INC. DETAILS OF LONG-TERM BORROWINGS DECEMBER 31, 2018

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Creditor Mizuho Bank LTD, Taipai Branch Sumitomo Mitsui Banking Corporation Taipei Branch HSBC Bank Limited (Taiwan) CTBC Bank The Hongkong and Shanghai Banking Corporation Limited Taipei Branch	Summary Credit Loans 〃 〃 〃 〃		Ending balance 5,090,000 $ 7,733,000 1,905,000 1,000,000 1,670,000 17,398,000 $	Contract period 2018.07.01~2020.07.01 2018.10.25~2020.10.25 2018.07.05~2020.07.05 2018.09.30~2020.09.30 2018.07.05~2020.07.05	InterestRate 0.59% 0.53% 0.53% 0.57% 0.53%	Collateralize or pledge
						None 〃 〃 〃 〃

~85~

DELTA ELECTRONICS, INC. DETAILS OF OPERATING REVENUE YEAR ENDED DECEMBER 31, 2018 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Items Power electronics Automation Infrastructure Others Sales revenue Service revenue Other operating revenue Total operating revenue		Amount 12,826,674 $ 5,611,078 5,492,551 754,924 24,685,227 13,323,592 940,066 38,948,885 $	Note

~86~

DELTA ELECTRONICS, INC. DETAILS OF OPERATING COST YEAR ENDED DECEMBER 31, 2018 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

			Amount
Raw materials at beginning		$	547,978
Add: material purchased for the period			3,611,763
Less: Raw materials at the end	(		818,473)
Raw materials in transit	(		1,701)
Cost of raw material sales	(		153,192)
Scrapped raw material	(		249)
Transferred to manufacturing or operating expenses	(		91,340)
Direct materials			3,094,786
Direct labor			239,734
Manufacturing overheads			821,117
Manufacturing cost for the period			4,155,637
Add: Work in progress at the beginning			120,064
Less: Work in progress at the end	(		159,169)
Cost of finished goods for the period			4,116,532
Add: Finished goods at the beginning			949,265
Finished goods purchases for the period			16,732,998
Less: Finished goods at the end	(		983,795)
Finished in transit	(		53,120)
Scrapped finished goods	(		304)
Transferred to manufacturing overheads or operating expenses	(		129,665)
Cost of goods manufactured and sold			20,631,911
Loss on market value decline and obsolete and slow-moving inventories			41,600
Others	(		3,857)
Cost of goods sold			20,669,654
Cost of raw material sales			153,192
Cost of service			4,848,621
Other operating costs			741,636
Operating costs		$	26,413,103

~87~

DELTA ELECTRONICS, INC. DETAILS OF MANUFACTURING EXPENSE YEAR ENDED DECEMBER 31, 2018 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Items Salaries and Wages Depreciation expense Others Total	Amount 448,044 $ 224,165 148,908 821,117 $	Note
		The balance of each expense account has not exceeded 5% of the manufacturing expense.

~88~

DELTA ELECTRONICS, INC. DETAILS OF SELLING EXPENSES YEAR ENDED DECEMBER 31, 2018 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Items Wages and Salaries Promotion expense Employees' compensation Others Total		Amount 401,588 $ 35,632 46,055 197,100 680,375 $	Note
			The balance of each expense account has not exceeded 5% of the selling expense.

~89~

DELTA ELECTRONICS, INC. DETAILS OF GENERAL AND ADMINISTRATIVE EXPENSES YEAR ENDED DECEMBER 31, 2018 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Items Salaries and Wages Employees' compensation Depreciation expense Others Total		Amount 949,689 $ 219,469 138,452 697,306 2,004,916 $	Note
			The balance of each expense account has not exceeded 5% of the general and administrature expenses.

~90~

DELTA ELECTRONICS, INC. DETAILS OF RESEARCH AND DEVELOPMENT EXPENSES YEAR ENDED DECEMBER 31, 2018 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Items Salaries and Wages Others Total		Amount 4,558,946 $ 3,853,649 8,412,595 $	Note
			The balance of each expense account has not exceeded 5% of the research and development expense.

~91~

DELTA ELECTRONICS, INC. DETAILS OF LABOR, DEPRECIATION AND AMORTIZATION BY FUNCTION YEARS ENDED DECEMBER 31, 2018 AND 2017 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Nature Funtion	2018	2018	2018	2017	2017	2017
	Classified as Cost of Sale	Classified as Operating expense	Total	Classified as Operating cost	Classified as Operating expense	Total
Employee benefit expense (Note)
Salaries and Wages	703,457	7,401,903	8,105,360	3,645,614	1,257,116	4,902,730
Labor and Health insturance	101,826	402,389	504,215	367,794	99,442	467,236
Pension	36,380	312,392	348,772	28,405	244,425	272,830
Directtors'remuneration	-	39,400	39,400	-	35,400	35,400
Others	77,995	185,690	263,685	193,098	48,966	242,064
Depreciation	439,484	537,484	976,968	687,562	102,628	790,190
Amortisation	148	275,494	275,642	83	152,639	152,722

Note: As of December 31, 2018 and 2017,the number of the Company's employees were 6,604 and 5,932(Excepted of oversea employees), icluding 5 and 7 non-employee directors, respectively.

~92~

Delta Electronics, Inc. Loans to others Year ended December 31, 2018

Table 1

Expressed in thousands of New Taiwan dollars, except as otherwise indicated

No. (Note 1)	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year ended December 31, 2018(Note 2)	Balance at December 31, 2018	Actual amount drawn down	Interest rate	Nature of loan (Note 7)	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a singleparty	Ceiling on total loansgranted	Footnote
													Item	Value
1	Fairview Assets Ltd.	Delta Electronics (Netherlands) B.V.	Other receivables - related parties	Yes	7,678,750 $	7,678,750 $	7,678,750 $	0.50%	2	- $	Additional operating capital	- $	None	- $	29,845,320 $	29,845,320 $	Note 5
1	Fairview Assets Ltd.	Delta Controls Inc.	Other receivables – related parties	Yes	3,992,950	3,317,220	2,303,625	0.50%	2	-	Additional operating capital	-	None	-	29,845,320	29,845,320	Note 5
2	Delta Networks Holding Limited	Delta Electronics (Netherlands) B.V.	Other receivables - related parties	Yes	6,757,300	6,757,300	6,757,300	0.50%	2	-	Additional operating capital	-	None	-	9,712,781	9,712,781	Note 5
3	Delta Electronics (H.K.) Ltd.	Delta Electronics (Netherlands) B.V.	Other receivables - related parties	Yes	860,020	860,020	860,020	0.50%	2	-	Additional operating capital	-	None	-	13,784,695	13,784,695	Note 4
4	Delta International Holding Limited	Delta Electronics (Netherlands) B.V.	Other receivables - related parties	Yes	3,040,785	3,040,785	3,040,785	0.50%	2	-	Additional operating capital	-	None	-	28,809,856	28,809,856	Note 4
5	ELTEK AS	Eltek Italia S.r.l.	Other receivables - related parties	Yes	28,160	28,160	28,056	1.90%	2	-	Additional operating capital	-	None	-	1,407,307	1,407,307	Note 5
6	Delta Electronics (Wuhu) Co. Ltd.	Cyntec Electronics (Suzhou) Co., Ltd.	Other receivables - related parties	Yes	1,373,242	178,924	-	4.35%	2	-	Additional operating capital	-	None	-	1,823,184	1,823,184	Note 4
7	Delta Electronics Components (Wujang) Ltd.	Cyntec Electronics (Suzhou) Co., Ltd.	Other receivables - related parties	Yes	581,503	-	-	0.00%	2	-	Additional operating capital	-	None	-	2,834,380	2,834,380	Note 4
8	Vivotek Inc.	Vatics Inc.	Other receivables - related parties	Yes	200,000	200,000	101,966	1.34%	2	-	Additional operating capital	-	None	-	278,837	557,674	Note 6
8	Vivotek Inc.	LIDLIGHT INC.	Other receivables - related parties	Yes	10,000	10,000	-	1.34%	2	-	Additional operating capital	-	None	-	20,000	557,674	Note 6
9	Grandview Holding Limited	Cyntec Holding (HK) Limited	Other receivables - related parties	Yes	3,072	3,072	3,072	0.50%	2	-	Additional operating capital	-	None	-	10,484,939	10,484,939	Note 5

Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:

• (1) The Company is ‘0’.

• (2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: Maximum outstanding balance during the current period was translated into New Taiwan dollars using the exchange rate at December 31, 2018, which the Company reported to the Securities and Futures Bureau.

Note 3: Limit on loans granted by the Company to a single party is 20% of the Company’s net assets based on the latest audited or reviewed financial statements, and limit on total loans is 40% of the Company’s net assets based on the latest audited or reviewed financial statements. Note 4: Limit on loans granted by subsidiaries to a single party is 40% of the subsidiaries’ net assets based on the latest audited or reviewed financial statements, and limit on total loans is 40% of the subsidiaries’ net assets based on the latest audited or reviewed financial statements.

Note 5: Limit on loans for financing granted by and to subsidiaries of which the ultimate parent directly or indirectly holds 100% of its voting shares is the lender’s net assets based on the latest audited or reviewed financial statements, and limit on total loans is the lender’s net assets based on the latest audited or reviewed financial statements.

Note 6: The calculation and amount on ceiling of loans of Vivotek Inc. are as follows:

• (1) The ceiling on total amount of loans to others shall not exceed 20% of Vivotek Inc.’s net assets value in the lastest financial statement which was reviewed or audited by independent accountant.

• (2) For the short-term financing, the limit on loans granted to a single party shall not exceed 10% of the borrower’s paid-in capital and Vivotek Inc.’s net assets value in the lastest financial statement which was reviewed or audited by independent accountant. Note 7: Nature of loans:

• (1) Business transaction: 1.

• (2) Short-term financing: 2.

Table 1一1

Delta Electronics, Inc. Provision of endorsements and guarantees to others Year ended December 31, 2018

Table 2

Expressed in thousands of New Taiwan dollars, except as otherwise indicated

Number (Note 1)	Endorser /guarantor	Partybeingendorsed/guaranteed	Partybeingendorsed/guaranteed	Limit on endorsements / guarantees provided for a singleparty	Maximum outstanding endorsement / guarantee amount as of December 31,2018	Outstanding endorsement / guarantee amount at December 31,2018	Actual amount drawn down	Amount of endorsements / guarantees secured with collateral	Ratio of accumulated endorsement / guarantee amount to net asset value of the endorser / guarantor company	Ceiling on total amount of endorsements / guarantees provided	Provision of endorsements / guarantees by parent company to subsidiary	Provision of endorsements / guarantees by subsidiary to parent company	Provision of endorsements / guarantees to the party in Mainland China	Footnote
		Companyname	Relationship with the endorser / guarantor (Note 6)
1	ELTEK AS	Eltek Power Sweden AB	2	2,605,423 $	17,100 $	17,100 $	17,100 $	- $	0.01%	6,513,558 $	Y	N	N	Note 3
1	ELTEK AS	ELTEK MEA DMCC	2	2,605,423	71,651	71,651	71,651	-	0.06%	6,513,558	Y	N	N	Note 3
1	ELTEK AS	ELTEK AUSTRALIA PTY LIMITED	2	2,605,423	138,218	138,218	138,218	-	0.11%	6,513,558	Y	N	N	Note 3
2	Vivotek Inc.	Vatics Inc.	2	557,674	120,000	120,000	-	-	4.30%	1,115,347	Y	N	N	Note 5

• Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:

• (1) The Company is ‘0’.

• (2) The subsidiaries are numbered in order starting from ‘1’.

• Note 2: In accordance with the Company's“Procedures for Provision of Endorsements and Guarantees,” limit on total endorsements is 40% of the Company's net assets based on the latest audited or reviewed financial statements, limit on endorsements to a single

• company is 20% of the Company's net assets based on the latest audited or reviewed financial statements. Limit on total endorsements granted by the Company and subsidiaries is 50% of the Company's net assets based on the latest audited or reviewed financial statements, limit on total endorsements to a single party is 30% of the Company's net assets based on the latest audited or reviewed financial statements.

• Note 3: In accordance with Eltek's “Procedures for Provision of Endorsements and Guarantees,” limit on total endorsements is 5% of the Company’s net assets based on the latest audited or reviewed financial statements, and limit on endorsements to a single party is 2% of the Company’s net assets based on the latest audited or reviewed financial statements.

• Note 4: The Company's net assets based on the latest audited or reviewed financial statements were $130,271,159 thousand (2018/12/31).

• Note 5: The limit on total endorsements/guarantees of Vivotek Inc. shall not exceed 40% of the company’s net assets value in the lastest financial statement which was reviewed or audited by independent accountant, and limit on endorsements to a single party is 20% of Vivotek Inc.’s net assets based on the latest audited or reviewed financial statements. period when endorsements and guarantees are incurred.

• Note 6: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following seven categories:

• (1) Having business relationship.

• (2) The endorser/guarantor parent company owns directly more than 50% voting shares of the endorsed/guaranteed subsidiary.

• (3) The endorser/guarantor parent company and its subsidiaries jointly own more than 50% voting shares of the endorsed/guaranteed company.

• (4) The endorsed/guaranteed parent company directly or indirectly owns more than 50% voting shares of the endorser/guarantor subsidiary.

• (5) Mutual guarantee of the trade as required by the construction contract.

• (6) Due to joint venture, each shareholder provides endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.

• (7) Joint guarantee of the performance guarantee for pre-sold home sales contract as required under the Consumer Protection Act.

Table 2-1

Delta Electronics, Inc.

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) December 31, 2018

Table 3

Expressed in thousands of New Taiwan dollars, except as otherwise indicated

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	As of December 31,2018	As of December 31,2018	As of December 31,2018	As of December 31,2018	Footnote
				Numberofshares	Bookvalue	Ownership (%)	Fairvalue
Delta Electronics, Inc.	Swissray Global Healthcare Holding Limited common stock	None	Financial assets at fair value through other comprehensive income-current	7,963,600	57,656 $	18.72	57,656 $
Delta Electronics, Inc.	United Renewable Energy Co., Ltd. common stock	None	Financial assets at fair value through other comprehensive income-non-current	167,145,851	1,308,752	6.64	1,308,752
Delta Electronics, Inc.	Lanner Electronics Inc. common stock	None	Financial assets at fair value through other comprehensive income-current	6,026,820	266,084	5.57	266,084
Delta Electronics, Inc.	Others	None	-	-	228,201	-	228,201
Delta International Holding Limited	Solarflare Communications, Inc. preferred shares	None	Financial assets at fair value through profit or loss-non-current	9,547,235	293,243	3.46	293,243
Delta International Holding Limited	Mentis Technology, Inc., etc	None	Financial assets at fair value through profit or loss-non-current	-	92,145	-	92,145
Delta Electronics (Japan), Inc.	Macy (Cayman) Inc. common stock	None	Financial assets at fair value through other comprehensive income-non-current	74,000,000	34,547	19.79	34,547
Delta Electronics (Pingtan) Co., Ltd.	Pingtan Hi Tech Investment Development Shares Co., Ltd.	None	Financial assets at fair value through other comprehensive income-non-current	-	33,475	15.00	33,475
Delta Electronics Capital Company	Fusheng Precision Co., Ltd. common stock	None	Financial assets at fair value through profit or loss	1,800,000	287,100	1.37	287,100
Delta Electronics Capital Company	Tong Hsing Electronic Industries, Ltd. common stock	None	Financial assets at fair value through profit or loss-non-current	2,374,000	255,205	1.44	255,205
Delta Electronics Capital Company	Nien Made Enterprise Co., Ltd. common stock	None	Financial assets at fair value through profit or loss-current	673,043	158,838	0.23	158,838
Delta Electronics Capital Company	Globalwafers Co., Ltd. common stock	None	Financial assets at fair value through profit or loss-current	495,650	139,030	0.11	139,030
Delta Electronics Capital Company	Buding Technology Limited preferred stock	None	Financial assets at fair value through profit or loss-non-current	1,059,047	148,075	2.95	148,075
Delta Electronics Capital Company	TaskEasy, Inc. common stock	None	Financial assets at fair value through profit or loss-non-current	2,633,872	141,008	7.76	141,008
Delta Electronics Capital Company	FineTek Co., Ltd. common stock, etc.	None	-	-	1,610,455	-	1,610,455

Table 3-1

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	As of December 31,2018	As of December 31,2018	As of December 31,2018	As of December 31,2018	Footnote
				Numberofshares	Bookvalue	Ownership (%)	Fairvalue
Delta America Ltd.	VPT, Inc. common stock	None	Financial assets at fair value through other comprehensive income-non-current	-	5,375 $	-	5,375 $
Cyntec Co., Ltd.	SUSUMU Co., Ltd. common stock	None	Financial assets at fair value through other comprehensive income-non-current	200,000	104,081	11.53	104,081
Cyntec Co., Ltd.	LUXTERA, INC. preferred stock	None	Financial assets at fair value through other comprehensive income-non-current	55,029,284	673,609	3.29	673,609
Cyntec Co., Ltd.	GaN Systems Inc. preferred stock	None	Financial assets at fair value through other comprehensive income-non-current	1,454,193	89,874	3.15	89,874
Cyntec Co., Ltd.	Impact Clean Power Technology S. A. Convertible Bond	None	Financial assets at fair value through profit or loss-current	-	69,074	-	69,074
Delta Electronics Int'l (Singapore) Pte. Ltd.	PBA Internatonal Pte. Ltd. common stock, etc.	None	-	-	129,532	-	129,532
UNICOM SYSTEM ENG. CORP.	Digi-Hua System Co., Ltd. common stock, etc.	None	Financial assets at fair value through profit or loss-non-current	-	3,273	-	3,273
Delta Electronics (Netherlands) B.V.	ZENTERA SYSTEMS, Inc. preferred stock	None	Financial assets at fair value through other comprehensive income-non-current	1,838,235	153,575	10.46	153,575
Delta Electronics (Netherlands) B.V.	Noda RF Technologies Co., Ltd. common sotck, etc.	None	Financial assets at fair value through other comprehensive income-non-current	-	56,268	-	56,268

Table 3-2

Table 4

Delta Electronics, Inc.

Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital Year ended December 31, 2018

Expressed in thousands of New Taiwan dollars, except as otherwise indicated

Investor	Marketable securities	General ledger account	Counterparty	Relationship with the investee	Balance as at January1,2018	Balance as at January1,2018	Addition	Addition	Disposal	Disposal	Disposal	Disposal	Balance as at December 31, 2018	Balance as at December 31, 2018	Footnote
					Number of shares	Amount	Number of shares	Amount	Number of shares	Selling price	Book value	Gain (loss) on disposal	Number of shares	Amount
ELTEK AS	DELTA ELECTRONICS HOLDING (USA) INC.	Investments accounted for using equity method	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	-	1,464,014 $	-	($ 82,253) (Note 2)	-	1,989,285 $	$ 1,381,761 (Note 2)	(Note 1)	-	- $	Note 3

Note 1: The transaction resulted from the Group’s adjustment in investment structure. There was no gain or loss on disposal pursuant to related ordinances. Note 2: It reflected the movement in the adjustments in the profit (loss) and net value of investments recognised in this period. Note 3: Only sales transactions are disclosed.

Table 4-1

Delta Electronics, Inc.

Acquisition of real estate reaching NT$300 million or 20% of paid-in capital or more

Year ended December 31, 2018

Table 5

Expressed in thousands of New Taiwan dollars, except as otherwise indicated

Real estate acquired by	Real estate acquired	Date of the event	Transaction amount	Status of payment	Counterparty	Relationship with the counterparty	If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:	If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:	If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:	If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:	Basis or reference used in setting the price	Reason for acquisition of real estate and status of the real estate	Other commitments
							Original owner who sold the real estate to the counterparty	Relationship between the original owner and the acquirer	Date of the original transaction	Amount
Delta Electronics, Inc.	Land in Taoyuan	May 2, 2018 and June 5, 2018	$ 2,049,970	Acquired by cash	Gi-Jin construction co. Ltd and naturalpersons	None	-	-	-	$ -	Appraisal report	For development of future business	None
Delta Electronics, Inc.	Land in Neihu	August 21,2018	1,011,684	Acquired by cash	9 natural persons	None	-	-	-	-	Appraisal report	For development of future	None
Vivotek Inc.	Land, Buildings, Parking space in Zhonghe	December 14,2018	314,968	Acquired by cash	Honeywell International Inc.	None	-	-	-	-	Appraisal report	Offices for research departments and production	None

Table 5-1

Delta Electronics, Inc.

Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more Year ended December 31, 2018

Table 6

Expressed in thousands of New Taiwan dollars, except as otherwise indicated

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction term	Differences in transaction term	Notes/accounts receivable	Notes/accounts receivable	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Delta Electronics, Inc.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Subsidiary	Sales and other operating revenue	12,028,774 $	30.84	70 days	- $	-	1,413,904 $	15.54
Delta Electronics, Inc.	Cyntec Electronics (Suzhou) Co., Ltd.	Subsidiary	Sales	939,514	2.41	70 days	-	-	67,503	0.74
Delta Electronics, Inc.	DEI Logistics (USA) Corp.	Subsidiary	Sales	771,955	1.98	70 days	-	-	415,714	4.57
Delta Electronics, Inc.	UNICOM SYSTEM ENG. CORP.	Subsidiary	Other operating revenue	204,938	0.53	70 days	-	-	47,498	0.52
Delta Electronics, Inc.	Delta Electronics (Thailand) Public Company Limited	Associate	Sales and other operating revenue	1,162,646	2.98	70 days	-	-	537,616	5.91
Delta Electronics, Inc.	Delta Energy Systems (Singapore) PTE. LTD	Associate	Sales and other operating revenue	284,680	0.73	70 days	-	-	69,385	0.76
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics, Inc.	Ultimate parent company	Sales and other operating revenue	16,644,687	7.24	70 days	-	-	6,917,806	12.35
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Dongguan) Co., Ltd.	Affiliated enterprise	Sales	6,621,533	2.88	70 days	-	-	1,385,587	2.47
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics Power (Dongguan) Co., Ltd.	Affiliated enterprise	Sales	15,491,526	6.74	70 days	-	-	3,479,420	6.21
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Jiangsu) Ltd.	Affiliated enterprise	Sales	17,224,048	7.49	70 days	-	-	1,737,118	3.10
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics Components (Wujiang) Ltd.	Affiliated enterprise	Sales	12,622,383	5.49	70 days	-	-	1,212,337	2.16

Table 6-1

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction term	Differences in transaction term	Notes/accounts receivable	Notes/accounts receivable	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Video Display System (Wujiang) Ltd.	Affiliated enterprise	Sales	4,007,691 $	1.74	70 days	- $	-	454,690 $	0.81
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Wuhu) Co., Ltd.	Affiliated enterprise	Sales	5,414,962	2.36	70 days	-	-	871,229	1.56
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Chenzhou) Co., Ltd.	Affiliated enterprise	Sales	2,824,635	1.23	70 days	-	-	676,560	1.21
Delta Electronics Int'l (Singapore) Pte. Ltd.	Chenzhou Delta Technology Co., Ltd.	Affiliated enterprise	Sales	314,669	0.14	70 days	-	-	61,257	0.11
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Japan), Inc.	Affiliated enterprise	Sales	2,962,803	1.29	70 days	-	-	828,883	1.48
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Korea), Inc.	Affiliated enterprise	Sales	251,652	0.11	70 days	-	-	66,169	0.12
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics International Mexico SA de CV	Affiliated enterprise	Sales	161,950	0.07	70 days	-	-	47,885	0.09
Delta Electronics Int'l (Singapore) Pte. Ltd.	DEI Logistics (USA) Corp.	Affiliated enterprise	Sales	20,432,336	8.89	70 days	-	-	6,915,889	12.35
Delta Electronics Int'l (Singapore) Pte. Ltd.	Vivitek Corporation	Affiliated enterprise	Sales	356,691	0.16	70 days	-	-	133,920	0.24
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Networks (Dongguan) Ltd.	Affiliated enterprise	Sales	17,675,206	7.69	70 days	-	-	4,149,136	7.41
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Networks, Inc. (Taiwan)	Affiliated enterprise	Sales	557,644	0.24	70 days	-	-	127,372	0.23
Delta Electronics Int'l (Singapore) Pte. Ltd.	DNI Logistics (USA) Co.	Affiliated enterprise	Sales	10,405,777	4.53	70 days	-	-	3,257,057	5.82

Table 6-2

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction term	Differences in transaction term	Notes/accounts receivable	Notes/accounts receivable	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Delta Electronics Int'l (Singapore) Pte. Ltd.	ELTEK AUSTRALIA PTY LIMITED	Affiliated enterprise	Sales	753,650 $	0.33	70 days	- $	-	382,702 $	0.68
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Greentech (Brasil) S.A.	Affiliated enterprise	Sales	227,306	0.10	70 days	-	-	164,433	0.29
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics ( Switzerland ) AG	Affiliated enterprise	Sales	1,083,596	0.47	70 days	-		590,298	1.05
Delta Electronics Int'l (Singapore) Pte. Ltd.	DELTA ELECTRONICS SOLUTIONS (SPAIN) SL	Affiliated enterprise	Sales	138,091	0.06	70 days	-	-	68,161	0.12
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	Sales	2,878,053	1.25	70 days	-	-	661,974	1.18
Delta Electronics Int'l (Singapore) Pte. Ltd.	ELTEK AS	Affiliated enterprise	Sales	1,415,466	0.62	70 days	-	-	248,641	0.44
Delta Electronics Int'l (Singapore) Pte. Ltd.	ELTEK POWER PTE. LTD.	Affiliated enterprise	Sales	649,997	0.28	70 days	-	-	285,156	0.51
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Americas) Ltd.	Affiliated enterprise	Sales	3,039,014	1.32	70 days	-	-	874,282	1.56
Delta Electronics Int’l (Singapore) Pte. Ltd.	DELTA ELECTRONICS (USA) INC.	Affiliated enterprise	Sales	2,573,942	1.12	70 days	-	-	1,007,343	1.80
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Australia) Pty Ltd	Associate	Sales	219,028	0.10	70 days	-	-	28,493	0.05

Table 6-3

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction term	Differences in transaction term	Notes/accounts receivable	Notes/accounts receivable	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Delta Electronics Int’l (Singapore) Pte. Ltd.	Digital Projection Ltd	Associate	Sales	244,074 $	0.11	70 days	- $	-	65,975 $	0.12
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Power Solutions (India) Pvt Ltd.	Associate	Sales	880,972	0.38	70 days	-	-	163,748	0.29
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics India Pvt Ltd	Associate	Sales	964,008	0.42	70 days	-	-	277,526	0.50
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Slovakia) s.r.o.	Associate	Sales	388,036	0.17	70 days	-	-	89,399	0.16
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Thailand) Public Company Limited	Associate	Sales	362,900	0.16	70 days	-	-	144,493	0.26
Delta Electronics Int’l (Singapore) Pte. Ltd.	Digital Projection Inc	Associate	Sales	378,923	0.16	70 days	-	-	130,640	0.23
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Slovakia) s.r.o.	Associate	Purchases	1,188,244	0.58	70 days	-	-	491,949) (	1.31) (
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Thailand) Public Company Limited	Associate	Purchases	334,177	0.16	70 days	-	-	96,336) (	0.26) (
Delta Networks, Inc. (Taiwan)	Delta Electronics, Inc.	Ultimate parent company	Sales	1,141,671	13.75	70 days	-	-	366,783	22.17
Delta Networks, Inc. (Taiwan)	DNI Logistics (USA) Co.	Affiliated enterprise	Sales	3,216,249	44.51	70 days	-	-	945,063	57.13
Delta Networks, Inc. (Taiwan)	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales	463,974	6.42	70 days	-	-	268,895	16.25
Delta Networks (Dongguan) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales	20,612,149	90.24	70 days	-	-	3,282,175	95.01

Table 6-4

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction term	Differences in transaction term	Notes/accounts receivable	Notes/accounts receivable	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Delta Electronics (Dongguan) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales	8,502,023 $	77.49	70 days	- $	-	1,488,552 $	67.74
Delta Electronics (Dongguan) Co., Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Sales	1,250,865	11.40	70 days	-	-	282,255	12.85
Delta Electronics Power (Dongguan) Co., Ltd.	Delta Electronics (Dongguan) Co., Ltd.	Affiliated enterprise	Sales	165,375	0.74	70 days	-	-	55,347	1.44
Delta Electronics Power (Dongguan) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales	19,806,398	88.19	70 days	-	-	2,974,200	77.29
Delta Electronics Power (Dongguan) Co., Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Sales	1,802,140	8.02	70 days	-	-	544,298	14.14
Delta Electronics (Jiangsu) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Sales	5,676,629	13.34	70 days	-	-	1,046,346	21.76
Delta Electronics (Jiangsu) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales	35,974,798	84.56	70 days	-	-	3,571,974	74.29
Delta Electronics (Jiangsu) Ltd.	Delta Electronics (Wuhu) Co., Ltd.	Affiliated enterprise	Sales	465,734	1.09	70 days	-	-	103,097	2.14
Delta Electronics Components (Wujiang) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Sales	11,009,619	41.34	70 days	-	-	3,147,521	64.86
Delta Electronics Components (Wujiang) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales	15,188,334	57.03	70 days	-	-	1,266,143	26.09
Delta Electronics Components (Wujiang) Ltd.	Delta Video Display System (Wujiang) Ltd.	Affiliated enterprise	Sales	105,482	0.40	70 days	-	-	60,074	1.24
Delta Electronics Components (Wujiang) Ltd.	Delta Electronics Power (Dongguan) Co., Ltd.	Affiliated enterprise	Sales	103,698	0.39	70 days	-	-	58,638	1.21

Table 6-5

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction term	Differences in transaction term	Notes/accounts receivable	Notes/accounts receivable	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Delta Video Display System (Wujiang) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Sales	2,385,284 $	35.41	70 days	- $	-	831,848 $	61.04
Delta Video Display System (Wujiang) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales	3,801,613	56.43	70 days	-	-	339,049	24.88
Delta Electronics (Wuhu) Co., Ltd.	Delta Electronics Int'l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales	9,851,207	98.14	70 days	-	-	2,348,771	98.60
Delta Electronics (Wuhu) Co., Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Sales	186,111	1.85	70 days	-	-	33,332	1.40
Delta Electronics (Chenzhou) Co., Ltd.	Delta Electronics Int'l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales	4,315,740	89.36	70 days	-	-	631,332	91.24
Delta Electronics (Chenzhou) Co., Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Sales	514,050	10.64	70 days	-	-	60,619	8.76
Chenzhou Delta Technology Co., Ltd.	Delta Electronics Power (Dongguan) Co., Ltd.	Affiliated enterprise	Sales	1,804,035	72.52	70 days	-	-	409,670	73.09
Chenzhou Delta Technology Co., Ltd.	Delta Electronics Int'l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales	482,828	19.41	70 days	-	-	85,206	15.20
Chenzhou Delta Technology Co., Ltd.	Delta Electronics (Chenzhou) Co., Ltd.	Affiliated enterprise	Sales	160,462	6.45	70 days	-	-	33,930	6.05
Delta Electronics (Shanghai) Co., Ltd.	Delta Greentech (China) Co., Ltd.	Affiliated enterprise	Sales and other operating revenue	14,003,779	48.06	70 days	-	-	2,978,442	41.13
Delta Electronics (Shanghai) Co., Ltd.	Delta Electronics (Pingtan) Co., Ltd.	Affiliated enterprise	Sales	1,786,854	6.13	70 days	-	-	447,091	6.17
Delta Electronics (Shanghai) Co., Ltd.	Delta Electronics Int'l (Singapore) Pte. Ltd.	Affiliated enterprise	Other operating revenue	781,987	2.68	70 days	-	-	226,873	3.13

Table 6-6

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction term	Differences in transaction term	Notes/accounts receivable	Notes/accounts receivable	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Delta Electronics (Shanghai) Co., Ltd.	Delta Electronics (Thailand) Public Company Limited	Associate	Purchases	1,094,432 $	6.22	70 days	- $	-	175,032) ($	2.85) (
Cyntec Co., Ltd.	Cyntec International Ltd-Labuan	Affiliated enterprise	Sales and other operating revenue	844,042	25.34	Note 1	Note 1	Note 1	55,745	7.27
Cyntec Co., Ltd.	DEI Logistics (USA) Corp.	Affiliated enterprise	Sales	275,650	8.50	Note 2	Note 2	Note 2	39,868	5.20
Cyntec Co., Ltd.	Delta Electronics, Inc.	Ultimate parent company	Sales and other operating revenue	957,008	29.51	Note 2	Note 2	Note 2	296,311	38.62
Cyntec Electronics(Suzhou) Co., Ltd.	Cyntec International Ltd-Labuan	Affiliated enterprise	Sales	4,264,022	38.95	Note 3	Note 3	Note 3	323,005	21.34
Cyntec Electronics(Suzhou) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales	6,684,561	61.05	Note 4	Note 4	Note 4	1,190,286	78.60
Cyntec International Ltd - Labuan	Cyntec Co., Ltd.	Affiliated enterprise	Sales	1,092,626	16.07	Note 1	Note 1	Note 1	190,505	7.08
Cyntec International Ltd - Labuan	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales	124,065	1.84	Note 2	Note 2	Note 2	17,469	0.65
Delta Electronics (Japan) Inc.	Delta Electronics, Inc.	Ultimate parent company	Sales	250,052	0.05	70 days	-	-	89,311	0.07
Delta Electronics (Japan) Inc.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales	774,952	0.15	70 days	-	-	209,845	0.17
Delta Electronics (Japan) Inc.	Delta Electronics (Thailand) Public Company Limited	Associate	Purchases	260,818	0.06	70 days	-	-	81,721) (	0.07) (
Vivotek Inc.	Vivotek USA, Inc.	Affiliated enterprise	Sales	616,676	12.93	90 days	-	-	139,079	17.78

Table 6-7

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction term	Differences in transaction term	Notes/accounts receivable	Notes/accounts receivable	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Vivotek Inc.	AETEK INC.	Affiliated enterprise	Purchases	121,836 $	3.49	30 days	- $	-	25,663) ($	3.93) (
PreOptix (Jiang Su) Co. Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales	244,421	76.56	70 days	-	-	-	-
ELTEK AS	Eltek s.r.o.	Associate	Sales	569,017	4.08	70 days	-	-	128,665	6.97
ELTEK AS	Eltek s.r.o.	Associate	Purchases	2,502,869	21.20	70 days	-	-	164,243) (	15.55) (
ELTEK AS	DELTA ELECTRONICS (USA) INC.	Affiliated enterprise	Sales	1,034,530	13.67	70 days	-	-	138,007	7.47
Delta Electronics (Switzerland) AG	Delta Electronics (Slovakia) s.r.o.	Associate	Purchases	364,108	18.52	70 days	-	-	2,016) (	0.27) (
Delta Electronics (Netherlands) B.V.	Delta Greentech Electronics Industry LLC	Affiliated enterprise	Sales	326,783	7.02	70 days	-	-	179,374	18.51
Delta Electronics (Netherlands) B.V.	Delta Electronics (Italy) S.r.l.	Affiliated enterprise	Sales	235,739	5.66	70 days	-	-	71,718	7.40
Delta Electronics (Americas) Ltd.	Delta Electronics (Thailand) Public Company Limited	Associate	Purchases	657,499	16.99	70 days	-	-	156,048) (	13.70) (

Note 1: Selling price was the same with the third parties. The credit term to related parties is 60~90 days after monthly billings, while 30~120 days after monthly billings for the third parties. Note 2: Sales price was available to third party, the collection term for related parties is 75 days from next month, the credit terms to the third parties is 30~120 days after monthly billings. Note 3: For the sales transactions, the amount is calculated by adding costs, fees and all necessary processing costs. The credit term to related parties is 60~90 days after monthly billings, while 30~120 days after monthly billings for the third parties. Note 4: Sales revenue is cost plus necessary profit, the collection term for related parties is 75 days from next month.

Table 6-8

Delta Electronics, Inc. Receivables from related parties reaching $100 million or 20% of paid-in capital or more December 31, 2018

Table 7

Expressed in thousands of New Taiwan dollars, except as otherwise indicated

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2018 (Note 1)	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance date (Note 2)	Allowance for doubtful accounts
					Amount	Actiontaken
Delta Electronics, Inc.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Subsidiary	1,843,513 $	7.49	- $		1,843,513 $
Delta Electronics, Inc.	DEI Logistics (USA) Corp.	Subsidiary	415,714	3.25	-		415,714
Delta Electronics, Inc.	Delta Electronics (Thailand) Public Company Limited	Associate	537,616	4.14	-		504,690
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics, Inc.	Ultimate parent company	7,164,354	2.43	-		3,406,050
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Dongguan) Co., Ltd.	Affiliated enterprise	1,385,587	4.66	493,317		1,059,668
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics Power (Dongguan) Co., Ltd.	Affiliated enterprise	3,479,420	5.09	1,172,950		2,856,495
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Jiangsu) Ltd.	Affiliated enterprise	1,737,118	11.77	-		220,939
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics Components (Wujiang) Ltd.	Affiliated enterprise	1,212,337	10.45	-		61,395
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Video Display System (Wujiang) Ltd.	Affiliated enterprise	454,690	8.34	-		328,205
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Wuhu) Co., Ltd.	Affiliated enterprise	871,229	6.00	-		7,311
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Chenzhou) Co., Ltd.	Affiliated enterprise	676,560	3.94	468,760		505,932
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Japan), Inc.	Affiliated enterprise	828,883	3.56	-		529,054
Delta Electronics Int'l (Singapore) Pte. Ltd.	DEI Logistics (USA) Corp.	Affiliated enterprise	6,915,889	3.08	1,044,271		3,552,578
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Networks (Dongguan) Co., Ltd.	Affiliated enterprise	4,149,136	4.42	641,687		3,132,930
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Networks, Inc. (Taiwan)	Affiliated enterprise	127,372	2.97	-		79,051
Delta Electronics Int'l (Singapore) Pte. Ltd.	DNI Logistics (USA) Co.	Affiliated enterprise	3,257,057	3.61	-		1,834,051
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Greentech (Brasil) S.A.	Affiliated enterprise	164,433	1.43	-		75,307
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	661,974	4.46	69		352,278
Delta Electronics Int'l (Singapore) Pte. Ltd.	ELTEK AS	Affiliated enterprise	248,641	5.66	-		187,293
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Americas) Ltd.	Affiliated enterprise	874,282	4.36	465		607,600

Table 7-1

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2018 (Note 1)	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance date (Note 2)	Allowance for doubtful accounts
					Amount	Actiontaken
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Switzerland) AG	Affiliated enterprise	590,298 $	3.38	- $		440,508 $
Delta Electronics Int'l (Singapore) Pte. Ltd.	ELTEK POWER PTE. LTD.	Affiliated enterprise	285,156	3.08	-		117,976
Delta Electronics Int’l (Singapore) Pte. Ltd.	DELTA ELECTRONICS (USA) INC.	Affiliated enterprise	1,007,343	5.08	2,868		425,844
Delta Electronics Int’l (Singapore) Pte. Ltd.	Vivitek Corporation	Affiliated enterprise	133,920	2.73	-		98,634
Delta Electronics Int’l (Singapore) Pte. Ltd.	ELTEK AUSTRALIA PTY LIMITED	Affiliated enterprise	382,702	3.61	-		134,369
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Power Solutions (India) Pvt Ltd.	Associate	163,748	4.23	15		130,536
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics India Pvt Ltd	Associate	277,526	3.23	1,267		169,167
Delta Electronics Int'l (Singapore) Pte. Ltd.	Digital Projection Inc	Associate	130,640	2.40	27,956		92,782
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Thailand) Public Company Limited	Associate	144,493	3.33	241		62,326
Delta Networks, Inc. (Taiwan)	DNI Logistics (USA) Co.	Affiliated enterprise	945,063	1.78	-		689,305
Delta Networks, Inc. (Taiwan)	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	268,895	3.05	-		268,895
Delta Networks, Inc. (Taiwan)	Delta Electronics, Inc.	Ultimate parent company	366,783	10.61	-		964
Delta Networks (Dongguan) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	3,282,175	6.42	-		3,282,175
Delta Electronics (Dongguan) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	1,488,552	4.55	-		1,488,552
Delta Electronics (Dongguan) Co., Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	282,255	3.62	-		197,992
Delta Electronics Power (Dongguan) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	2,974,200	6.90	-		2,974,200
Delta Electronics Power (Dongguan) Co., Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	544,298	3.33	-		349,382
Delta Electronics (Jiangsu) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	1,046,346	11.82	-		849,889
Delta Electronics (Jiangsu) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	3,571,974	3.24	-		-
Delta Electronics (Jiangsu) Ltd.	Delta Electronics (Wuhu) Co., Ltd.	Affiliated enterprise	103,097	8.18	-		68,496
Delta Electronics Components (Wujiang) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	3,147,521	6.80	-		1,929,278
Delta Electronics Components (Wujiang) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	1,266,143	23.57	-		-
Delta Video Display System (Wujiang) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	831,848	5.64	-		592,297

Table 7-2

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2018 (Note 1)	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance date (Note 2)	Allowance for doubtful accounts
					Amount	Actiontaken
Delta Video Display System (Wujiang) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	339,049 $	20.56	- $		339,049 $
Delta Electronics (Wuhu) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	2,348,771	4.59	-		850,172
Delta Electronics (Chenzhou) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	631,332	6.85	-		-
Chenzhou Delta Technology Co. Ltd.	Delta Electronics Power (Dongguan) Co., Ltd.	Affiliated enterprise	409,670	1.04	-		409,670
Delta Electronics (Shanghai) Co., Ltd.	Delta Greentech (China) Co., Ltd.	Affiliated enterprise	2,978,442	4.11	-		1,583,133
Delta Electronics (Shanghai) Co., Ltd.	Delta Electronics (Pingtan) Co., Ltd.	Affiliated enterprise	447,091	3.68	4,216		-
Delta Electronics (Shanghai) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	226,873	6.89	-		59,394
Cyntec Co., Ltd.	Delta Electronics, Inc.	Ultimate parent company	296,311	3.54	-		188,089
Cyntec Electronics (Suzhou) Co., Ltd.	Cyntec International Ltd. - Labuan	Affiliated enterprise	323,005	10.47	-		323,005
Cyntec Electronics (Suzhou) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	1,190,286	6.99	-		1,190,286
Cyntec International Ltd. - Labuan	Cyntec Co., Ltd.	Affiliated enterprise	190,505	5.41	-		102,052
Delta Electronics (Japan), Inc.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	209,845	3.78	-		209,845
Vivotek Inc.	Vivotek USA, Inc.	Affiliated enterprise	139,079	4.44	-		60,963
ELTEK AS	Eltek s.r.o.	Associate	128,665	5.91	-		-
ELTEK AS	DELTA ELECTRONICS (USA) INC.	Affiliated enterprise	138,007	8.60	-		-
Delta Electronics (Netherlands) B.V.	Delta Greentech Electronics Industry LLC	Affiliated enterprise	179,374	1.25	-		-
Fairview Assets Ltd.	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	7,678,750	-	-		9,812
Fairview Assets Ltd.	Delta Controls Inc.	Affiliated enterprise	2,303,625	-	-		-
Delta Networks Holding Limited	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	6,757,300	-	-		-

Table 7-3

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2018 (Note 1)	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance date (Note 2)	Allowance for doubtful accounts
					Amount	Actiontaken
Delta Electronics (H.K.) Ltd.	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	860,020 $	-	- $		- $
Delta International Holding Limited	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	3,040,785	-	-		-
Vivotek Inc.	VATICS INC.	Affiliated enterprise	101,966	-	-		-

Note 1: Including other receivables in excess of $100,000. Note 2: The amount represents collections subsequent to December 31, 2018 up to March 11, 2019.

Table 7-4

Delta Electronics, Inc. Significant inter-company transactions during the reporting period Year ended December 31, 2018

Table 8

Expressed in thousands of New Taiwan dollars, except as otherwise indicated

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	Transaction	Transaction	Transaction	Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
0	Delta Electronics, Inc.	Delta Electronics Int'l (Singapore) Pte. Ltd.	1	Sales and other operating revenue	12,028,774 $	(Note 4)	5.08
1	Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics, Inc.	2	Sales	16,644,687	(Note 4)	7.02
1	Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Dongguan) Co., Ltd.	3	Sales	6,621,533	(Note 4)	2.79
1	Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics Power (Dongguan) Co., Ltd.	3	Sales	15,491,526	(Note 4)	6.54
1	Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Jiangsu) Ltd.	3	Sales	17,224,048	(Note 4)	7.27
1	Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics Components (Wujiang) Ltd.	3	Sales	12,622,383	(Note 4)	5.33
1	Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Video Display System (Wujiang) Ltd.	3	Sales	4,007,691	(Note 4)	1.69
1	Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Wuhu) Co., Ltd.	3	Sales	5,414,962	(Note 4)	2.28
1	Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Chenzhou) Co., Ltd.	3	Sales	2,824,635	(Note 4)	1.19
1	Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Japan), Inc.	3	Sales	2,962,803	(Note 4)	1.25
1	Delta Electronics Int'l (Singapore) Pte. Ltd.	DEI Logistics (USA) Corp.	3	Sales	20,432,336	(Note 4)	8.62
1	Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Networks (Dongguan) Ltd.	3	Sales	17,675,206	(Note 4)	7.46
1	Delta Electronics Int'l (Singapore) Pte. Ltd.	DNI Logistics (USA) Co.	3	Sales	10,405,777	(Note 4)	4.39
1	Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Netherlands) B.V.	3	Sales	2,878,053	(Note 4)	1.21
1	Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Americas) Ltd.	3	Sales	3,039,014	(Note 4)	1.28

Table 8-1

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	Transaction	Transaction	Transaction	Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
1	Delta Electronics Int’l (Singapore) Pte. Ltd.	DELTA ELECTRONICS (USA) INC.	3	Sales	2,573,942 $	(Note 4)	1.09
2	Delta Networks, Inc. (Taiwan)	DNI Logistics (USA) Co.	3	Sales	3,216,249	(Note 4)	1.36
3	Delta Networks (Dongguan) Ltd.	Delta Electronics Int'l (Singapore) Pte. Ltd.	3	Sales	20,612,149	(Note 4)	8.70
4	Delta Electronics (Dongguan) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	3	Sales	8,502,023	(Note 4)	3.59
5	Delta Electronics Power (Dongguan) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	3	Sales	19,806,398	(Note 4)	8.36
6	Delta Electronics (Jiangsu) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	3	Sales	5,676,629	(Note 4)	2.40
6	Delta Electronics (Jiangsu) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	3	Sales	35,974,798	(Note 4)	15.18
7	Delta Electronics Components (Wujiang) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	3	Sales	11,009,619	(Note 4)	4.65
7	Delta Electronics Components (Wujiang) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	3	Sales	15,188,334	(Note 4)	6.41
8	Delta Video Display System (Wujiang) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	3	Sales	2,385,284	(Note 4)	1.01
8	Delta Video Display System (Wujiang) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	3	Sales	3,801,613	(Note 4)	1.60
9	Delta Electronics (Wuhu) Co., Ltd.	Delta Electronics Int'l (Singapore) Pte. Ltd.	3	Sales	9,851,207	(Note 4)	4.16
10	Delta Electronics (Chenzhou) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	3	Sales	4,315,740	(Note 4)	1.82
11	Delta Electronics (Shanghai) Co., Ltd.	Delta Greentech (China) Co., Ltd.	3	Sales and other operating revenue	14,003,779	(Note 4)	5.91
12	Cyntec Electronics (Suzhou) Co., Ltd.	Cyntec International Ltd. - Labuan	3	Sales	4,264,022	(Note 6)	1.80
12	Cyntec Electronics (Suzhou) Co., Ltd.	Delta Electronics Int'l (Singapore) Pte. Ltd.	3	Sales	6,684,561	(Note 7)	2.82
1	Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics, Inc.	2	Accounts receivable	7,164,354	(Note 4)	2.74

Table 8-2

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	Transaction	Transaction	Transaction	Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
1	Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics Power (Dongguan) Co., Ltd.	3	Accounts receivable	3,479,420 $	(Note 4)	1.33
1	Delta Electronics Int'l (Singapore) Pte. Ltd.	DEI Logistics (USA) Corp.	3	Accounts receivable	6,915,889	(Note 4)	2.64
1	Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Networks (Dongguan) Ltd.	3	Accounts receivable	4,149,136	(Note 4)	1.58
1	Delta Electronics Int’l (Singapore) Pte. Ltd.	DNI Logistics (USA) Co.	3	Accounts receivable	3,257,057	(Note 4)	1.24
3	Delta Networks (Dongguan) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	3	Accounts receivable	3,282,175	(Note 4)	1.25
5	Delta Electronics Power (Dongguan) Co., Ltd.	Delta Electronics Int'l (Singapore) Pte. Ltd.	3	Accounts receivable	2,974,200	(Note 4)	1.14
6	Delta Electronics (Jiangsu) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	3	Accounts receivable	3,571,974	(Note 4)	1.36
7	Delta Electronics Components (Wujiang) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	3	Accounts receivable	3,147,521	(Note 4)	1.20
11	Delta Electronics (Shanghai) Co., Ltd.	Delta Greentech (China) Co., Ltd.	3	Accounts receivable	2,978,442	(Note 4)	1.14
13	Delta Networks Holding Limited	Delta Electronics (Netherlands) B.V.	3	Other receivables	6,757,300	(Note 5)	2.58
14	Fairview Assets Ltd.	Delta Electronics (Netherlands) B.V.	3	Other receivables	7,678,750	(Note 5)	2.93
15	Delta International Holding Limited	Delta Electronics (Netherlands) B.V.	3	Other receivables	3,040,785	(Note 5)	1.16

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

• (1) Parent company is ‘0’.

(2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between transaction company and counterparty is classified into the following three categories:

(1) Parent company to subsidiary.

• (2) Subsidiary to parent company.

(3) Subsidiary to subsidiary.

Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Note 4: There is no similar transaction to compare with. It will follow the agreed price and transaction terms and all the credit terms are 70 days.

Note 5: Lending of capital

Note 6: Selling price was calculated based on the cost plus handling charges and necessary processing costs. The credit term to related parties is 60~90 days after monthly billings, while 30~120 days after monthly billings for the third parties. Note 7: Sales revenue is cost plus necessary profit, the collection term for related parties is 75 days from next month.

Note 8: The disclosure requirement for the above disclosed amounts is 1% of the consolidated total assets for balance sheet accounts and 1% of the consolidated total revenue for income statement accounts.

Table 8-3

Table 9

Delta Electronics, Inc. Information on investees Year ended December 31, 2018

Expressed in thousands of New Taiwan dollars, except as otherwise indicated

Investor	Investee	Location	Main business activities	~~Balance as at~~ ~~Balance as at~~ Initial investment amount	~~Balance as at~~ ~~Balance as at~~ Initial investment amount	Shares held as at December 31,2018	Shares held as at December 31,2018	Shares held as at December 31,2018	Net profit (loss) of the investee for the year ended December 31,2018	Investment income (loss) recognised by the Company for the year ended December 31,2018	Footnote
				December 31, 2018	December 31, 2017	Number of shares	Ownership (%)	Book value
Delta Electronics, Inc.	Delta International Holding Limited	Cayman Islands	Equity investments	8,922,118 $	8,922,118 $	67,680,000	94.00	67,413,894 $	6,010,827 $	5,565,747 $	(Note 6)
Delta Electronics, Inc.	Delta Networks Holding Limited	Cayman Islands	Equity investments	29,581	29,581	83,800,000	100.00	9,803,866	485,811	551,507	(Note 6)
Delta Electronics, Inc.	PreOptix (Hong Kong) Co. Ltd.	Hong Kong	Equity investments	162,376	162,376	5,250,000	39.62	170,071	119,728) (	47,436) (
Delta Electronics, Inc.	Cyntec Co., Ltd.	Taiwan	Research, development, manufacturing and sales of film optic-electronic devices	12,067,931	12,067,931	2,232,290,862	100.00	34,933,488	2,480,257	2,210,357	(Note 6)
Delta Electronics, Inc.	Delta Electronics Capital Company	Taiwan	Equity investments	3,253,241	2,900,000	350,000,000	100.00	3,919,861	90,948) (	90,948) (
Delta Electronics, Inc.	Delta Electronics Int'l (Singapore) Pte. Ltd.	Singapore	Sales of electronic products	7,270	7,270	300,000	100.00	15,143,815	7,776,685	7,453,219	(Note 6)
Delta Electronics, Inc.	DelBio Inc.	Taiwan	Manufacturing, wholesale and retail of medical equipment	900,000	900,000	90,000,000	100.00	207,288	15,108	15,060	(Note 6)
Delta Electronics, Inc.	Allied Material Technology Corp.	Taiwan	Lease services, etc.	2,113,978	2,113,978	211,400,909	99.97	1,869,817	115,602) (	115,567) (
Delta Electronics, Inc.	UNICOM SYSTEM ENG. CORP.	Taiwan	Design and sales of computer, peripheral and information system	341,695	341,695	570,000	100.00	438,733	54,417	52,384
Delta Electronics, Inc.	NeoEnergy Microelectronics, Inc.	Taiwan	Designing and experimenting on integrated circuits and information software services	462,442	462,442	14,313,530	98.17	45,762	18	18
Delta Electronics, Inc.	Delta Electronics (Thailand) Public Co., Ltd	Thailand	Manufacturing and sales of electronic products	114,615	114,615	69,128,140	5.54	1,569,966	4,764,946	257,672	(Notes 6 and 13)
Delta Electronics, Inc.	Delta Electronics (Netherlands) B.V.	Netherlands	Trading of equipment, components and materials of telecom and computer systems	4,247,073	4,247,073	120,219,545	100.00	4,728,327	15,019) (	37,310	(Note 6)
Delta Electronics, Inc.	Delta Green Life Co., Ltd.	Taiwan	Providing installation and construction of lighting equipment	-	135,083	-	-	-	27,657) (	27,666) (	(Notes 6 and 15)

Table 9-1

Investor	Investee	Location	Main business activities	~~Balance as at~~ ~~Balance as at~~ Initial investment amount	~~Balance as at~~ ~~Balance as at~~ Initial investment amount	Shares held as at December 31,2018	Shares held as at December 31,2018	Shares held as at December 31,2018	Net profit (loss) of the investee for the year ended December 31,2018	Investment income (loss) recognised by the Company for the year ended December 31,2018	Footnote
				December 31, 2018	December 31, 2017	Number of shares	Ownership (%)	Book value
Delta Electronics, Inc.	Delta Networks, Inc. (Taiwan)	Taiwan	Research, development, design, manufacturing and sales of networking system and peripherals	2,490,390 $	2,490,390 $	50,040,838	99.98	1,283,132 $	279,479 $	245,506 $	(Note 6)
Delta Electronics, Inc.	Delta America Ltd.	U.S.A.	Equity investments	103,065	103,065	2,100,000	10.26	318,556	155,975	36,489	(Notes 6 and 9)
Delta Electronics, Inc.	Vivotek Inc.	Taiwan	Manufacturing and sales of video compression software and encoding, network video server, webcam and its related components	4,039,937	3,945,583	42,345,423	50.13	3,965,274	329,577	66,816
Delta International Holding Limited	Delta Electronics (H.K.) Ltd.	Hong Kong	Equity investments, operations management and engineering services	10,086,717	10,086,717	2,549,297,600	100.00	34,439,573	3,852,639	3,842,512	(Note 1)
Delta International Holding Limited	DAC Holding (Cayman) Ltd.	Cayman Islands	Equity investments	495,748	495,748	22,200,000	100.00	466,764	157,947	157,947	(Note 1)
Delta International Holding Limited	Delta Electronics (Japan), Inc.	Japan	Sales of power products, display solution products, electronic components, industrial automation products and their materials	87,813	87,813	5,600	100.00	520,576	92,066	92,066	(Note 1)
Delta International Holding Limited	Digital Projection International Ltd.	Britain	Equity investments	351,390	351,390	19,249,667	41.00	241,333	46,796	19,186	(Note 1)
Delta International Holding Limited	PreOptix (Hong Kong) Co., Ltd.	Hong Kong	Equity investments	245,720	245,720	8,000,000	60.38	242,640	119,728) (	73,227) (	(Note 1)
Delta International Holding Limited	DEI Logistics (USA) Corp.	U.S.A.	Warehousing and logistics services	15,358	15,358	500,000	100.00	155,685	18,660) (	18,660) (	(Note 1)
Delta International Holding Limited	Ace Pillar Holding Co., Ltd.	Samoa	Equity investments	419,428	419,428	2,858,718	100.00	382,486	28,645	16,132	(Note 1)
Delta International Holding Limited	Drake Investment (H.K.) Ltd.	Hong Kong	Equity investments	5,286,553	5,286,553	304,504,306	100.00	4,732,893	362,640	203,318	(Note 1)
Delta International Holding Limited	Delta Electronics International Mexico SA DE C.V.	Mexico	Sales of power management system of industrial automation product and telecommunications equipment	-	-	1	-	-	15,099) (	-	(Note 1)
Delta International Holding Limited	Vivitek Corporation	U.S.A.	Sales of projector products and their materials	46,073	46,073	9,000,000	100.00	100,390	30,111	30,111	(Note 1)

Table 9-2

Investor	Investee	Location	Main business activities	~~Balance as at~~ ~~Balance as at~~ Initial investment amount	~~Balance as at~~ ~~Balance as at~~ Initial investment amount	Shares held as at December 31,2018	Shares held as at December 31,2018	Shares held as at December 31,2018	Net profit (loss) of the investee for the year ended December 31,2018	Investment income (loss) recognised by the Company for the year ended December 31,2018	Footnote
				December 31, 2018	December 31, 2017	Number of shares	Ownership (%)	Book value
Delta International Holding Limited	Delta Greentech SGP Pte Ltd.	Singapore	Equity investments	857,890 $	857,890 $	12,175,470	100.00	689,968 $	61,445 $	23,930 $	(Note 1)
Delta International Holding Limited	Delta Electronics Europe Ltd.	Britain	Repair centre and providing support service	112,417	112,417	500,000	100.00	53,099	8,042	8,042	(Note 1)
Delta International Holding Limited	Boom Treasure Limited	Hong Kong	Equity investments	2,675,918	2,675,918	1	100.00	2,097,208	189,256	65,273	(Note 1)
Delta International Holding Limited	Apex Investment (HK) Limited	Hong Kong	Equity investments	3,880,663	3,880,663	2,000,001	100.00	1,681,150	242,034	221,921	(Note 1)
Delta International Holding Limited	Galaxy Star Investment (HK) Limited	Hong Kong	Equity investments	3,880,663	3,880,663	2,000,001	100.00	1,681,150	242,034	221,921	(Note 1)
Delta International Holding Limited	Jade Investment (HK) Limited	Hong Kong	Equity investments	3,880,663	3,880,663	2,000,001	100.00	1,681,150	242,034	221,921	(Note 1)
Delta International Holding Limited	Delta Electronics (Thailand) Public Co., Ltd.	Thailand	Manufacturing and sales of electronic products	4,396,927	4,396,927	191,984,450	15.39	6,584,811	4,764,946	734,064	(Note 13)
Delta Electronics (H.K.) Ltd.	Delta Electronics International Mexico SA DE C.V.	Mexico	Sales of power management system of industrial automation product and telecommunications equipment	185,826	32,251	252,002	100.00	146,196	15,099) (	15,099) (	(Note 2)
Delta Electronics (Netherlands) B.V.	ELTEK AS	Norway	Research, development and sales of power supplies and others	15,270,499	15,270,499	93,531,101	100.00	12,207,741	2,057,587	423,615) (	(Note 8)
Delta Electronics (Netherlands) B.V.	DELTA ELECTRONICS HOLDING (USA) INC.	U.S.A.	Equity investments	2,097,525	-	1,000,000	100.00	1,930,218	274,516	272,986	(Note 8)
Delta Electronics (Netherlands) B.V.	Delta America Ltd.	U.S.A.	Equity investments	705,938	705,938	8,179,182	39.95	904,777	155,975	61,293	(Notes 8 and 9)
Delta Electronics (Netherlands) B.V.	Optovue, Inc.	U.S.A.	Research, development, design, manufacturing and sales of medical equipment	1,136,455	921,450	5,190,330	29.50	959,816	174,064) (	56,173) (
Delta Electronics (Netherlands) B.V.	Delta Controls Inc.	Canada	Provide resolution of building management and control	2,303,625	2,303,625	75,000,000	100.00	2,618,320	89,827	89,827	(Note 8)
Delta Electronics (Netherlands) B.V.	Energy Dragon Global Limited	British Virgin Islands	Equity investments	149,314	149,314	10,001	100.00	200,258	13,594	13,594	(Notes 8 and 9)

Table 9-3

Investor	Investee	Location	Main business activities	~~Balance as at~~ ~~Balance as at~~ Initial investment amount	~~Balance as at~~ ~~Balance as at~~ Initial investment amount	Shares held as at December 31,2018	Shares held as at December 31,2018	Shares held as at December 31,2018	Net profit (loss) of the investee for the year ended December 31,2018	Investment income (loss) recognised by the Company for the year ended December 31,2018	Footnote
				December 31, 2018	December 31, 2017	Number of shares	Ownership (%)	Book value
Delta Electronics (Netherlands) B.V.	Castle Horizon Limited	Republic of Seychelles	Equity investments	696,382 $	696,382 $	471,800	100.00	934,081 $	63,407 $	63,407 $	(Notes 8 and 9)
Delta Electronics (Netherlands) B.V.	Delta Electronics (Switzerland) AG	Switzerland	Equity investments, research, development and sales of electronic products	235,412	393,152	5,100	51.00	382,335	94,687	45,123	(Note 8)
Delta Electronics (Netherlands) B.V.	Delta Greentech Electronics Industry LLC	Turkey	Marketing and sales of electronic products	118,560	24,572	479,750	51.00	81,593	7,906	3,767	(Note 8)
Delta Electronics (Netherlands) B.V.	Delta Greentech (Brasil) S.A.	Brazil	Manufacturing and sales of electronic products	218,384	218,384	4,315,657	100.00	111,193	55,202) (	55,202) (	(Note 8)
Delta Electronics (Netherlands) B.V.	Delta Greentech (USA) Corporation	U.S.A.	Sales of electronic products	-	127,160	-	-	-	14,077	13,312	(Notes 8 and 16)
Delta Electronics (Netherlands) B.V.	DELTA ELECTRONICS BRASIL LTDA	Brazil	Manufacturing and sales of electronic products	340,441	242,649	37,000,000	100.00	265,817	16,477) (	16,477) (	(Note 8)
Delta America Ltd.	Delta Electronics (Americas) Ltd.	U.S.A.	Sales of electronic components	232,030	232,030	250,000	100.00	1,054,560	117,080	117,080
Delta America Ltd.	Delta Solar Solutions LLC	U.S.A.	Equity investments	69,723	69,723	-	100.00	62,260	1,201) (	1,201) (
Delta Electronics Int’l (Singapore) Pte. Ltd.	Loy Tec electronics GmbH	Austria	Consulting service of building management and control solutions	2,122,644	2,122,644	-	85.00	2,156,379	111,694	48,507	(Note 7)
Loy Tec electronics GmbH	LOYTEC Americas, Inc	U.S.A.	Consulting service of building management and control solutions	306	306	9,978	100.00	8,883	1,876	1,876
Delta Networks Holding Limited	Delta Networks, Inc.	Cayman Islands	Equity investments	5,462,938	5,462,938	1,196,886,000	100.00	2,803,471	448,659	448,659	(Note 3)
Delta Networks, Inc.	Delta Networks (H.K.) Limited	Hong Kong	Equity investments	1,075,025	1,075,025	35,000,000	100.00	2,699,609	432,961	432,961	(Note 4)

Table 9-4

Investor	Investee	Location	Main business activities	~~Balance as at~~ ~~Balance as at~~ Initial investment amount	~~Balance as at~~ ~~Balance as at~~ Initial investment amount	Shares held as at December 31,2018	Shares held as at December 31,2018	Shares held as at December 31,2018	Net profit (loss) of the investee for the year ended December 31,2018	Investment income (loss) recognised by the Company for the year ended December 31,2018	Footnote
				December 31, 2018	December 31, 2017	Number of shares	Ownership (%)	Book value
Delta Networks, Inc.	DNI Logistics (USA) Co.	U.S.A.	Trading of networking system and peripherals	17,079 $	17,079 $	500,000	100.00	71,194 $	3,782) ($	3,782) ($	(Note 4)
Cyntec Co., Ltd.	Fairview Assets Ltd.	Cayman Islands	Equity investments	1,116,521	1,116,521	32,740,062	100.00	29,845,320	2,173,623	2,173,623	(Note 5)
Cyntec Co., Ltd.	Power Forest Technology Corporation	Taiwan	IC design of power management	179,161	179,161	8,702,934	59.03	171,880	7,217	5,258) (	(Note 5)
Vivotek Inc.	Vatics Inc.	Taiwan	Designing and sales of multimedia integrated circuits	305,651	216,738	20,243,849	50.53	47,747	143,688) (	66,187) (	(Note 11)
Vivotek Inc.	Vivotek Holdings, Inc.	U.S.A.	Holding company	31,555	31,555	1,050	100.00	190,196	15,457	15,457	(Note 11)
Vivotek Inc.	Realwin Investment Inc.	Taiwan	Investment in the network communications industry	173,696	200,000	17,369,635	100.00	70,533	13,073) (	14,302) (	(Note 11)
Vivotek Inc.	Vivotek Netherlands B.V.	Netherlands	Sales service	11,418	11,418	3,000	100.00	9,391	824	824	(Note 11)
Vivotek Inc.	Otus Imaging, Inc.	Taiwan	Sales of webcams and related components	44,294	17,991	6,000,000	100.00	13,683	21,975) (	21,975) (	(Note 11)
Vivotek Inc.	Vivotek (Japan) Inc.	Japan	Sales service	17,939	-	7,000	100.00	18,011	344) (	344) (	(Note 11)
Vivotek Holdings, Inc.	Vivotek USA, Inc.	U.S.A.	Sales of webcams and related components	30,715	30,715	10,000,000	100.00	276,693	15,463	15,463	(Note 10)
Realwin Investment Inc.	Skywatck INC.	Taiwan	Wholesale of electronic equipment	6,211	6,211	412,070	13.64	-	1,971	-	(Note 12)
Realwin Investment Inc.	Wellstates Investment, LLC	U.S.A.	Investment and commercial lease of real estate	34,859	34,859	-	100.00	46,797	2,047	2,047	(Note 12)
Realwin Investment Inc.	Aetek Inc.	Taiwan	Sales of webcams and related components	34,045	34,045	3,372,500	56.21	30,854	5,880	3,305	(Note 12)

Table 9-5

Investor	Investee	Location	Main business activities	~~Balance as at~~ ~~Balance as at~~ Initial investment amount	~~Balance as at~~ ~~Balance as at~~ Initial investment amount	Shares held as at December 31,2018	Shares held as at December 31,2018	Shares held as at December 31,2018	Net profit (loss) of the investee for the year ended December 31,2018	Investment income (loss) recognised by the Company for the year ended December 31,2018	Footnote
				December 31, 2018	December 31, 2017	Number of shares	Ownership (%)	Book value
Realwin Investment Inc.	Vivotek Middle East FZCO	United Arab Emirates	Sales of webcams and related components	11,242 $	11,242 $	1,322	89.99	20,655) ($	9,316) ($	8,384) ($	(Note 12)
Realwin Investment Inc.	Aicasa Incorporated	Cayman Islands	Venture capital company	-	10,275	-	-	-	655) (	229) (	(Notes 12 and 14)
Realwin Investment Inc.	Lidlight Inc.	Taiwan	Sales of lighting equipment	10,200	10,200	1,020,000	51.00	2,626	8,106) (	4,134) (	(Note 12)
Realwin Investment Inc.	Vatics Inc.	Taiwan	Designing and sales of multimedia integrated circuits	31,123	-	1,556,142	3.88	5,666	143,688) (	5,581) (	(Note 12)

Note 1: Investment income / loss recognised by Delta International Holding Limited

Note 2: Investment income / loss recognised by Delta Electronics (H.K.) Ltd.

Note 3: Investment income / loss recognised by Delta Networks Holding Limited

Note 4: Investment income / loss recognised by Delta Networks, Inc.

Note 5: Investment income / loss recognised by Cyntec Co., Ltd.

Note 6: The investment income /loss is net of the elimination of intercompany transactions.

Note 7: Investment income / loss and adjustments in net value recognized by Delta Electronics Int’l (Singapore) Pte. Ltd.

Note 8: Investment income / loss recognised by Delta Electronics (Netherlands) B.V.

Note 9: The Company indirectly acquired 39.95% and 49.79% equity shares of Delta America Ltd. through Delta Electronics (Netherlands) B.V. and its subsidiaries, Castle Horizon Limited and Energy Dragon Global Limited, respectively, considering 10.26% equity shares of DAL held by the Company, the total ownership are 100%.

Note 10: The Company’s third-tier subsidiary, which was recognised as investment gains/losses through Vivotek Holdings, Inc.

Note 11: The Company’s second-tier subsidiary, which was recognised as investment gains/losses through Vivotek Inc.

Note 12: The Company’s third-tier subsidiary, which was recognised as investment gains/losses through Realwin Investment Inc.

Note 13: The weighted average combined ownership percentage of 20.01%.

Note 14: In May 2018, Aicasa Incorporated dissolved as permitted. However, the liquidation is still in process. Note 15: The investee merged with the Company on August 1, 2018.

Note 16: The investee merged with DELTA ELECTRONICS (USA) INC. in May 2018.

Table 9-6

Table 10

Delta Electronics, Inc. Information on investments in Mainland China Year ended December 31, 2018

Expressed in thousands of New Taiwan dollars, except as otherwise indicated

Investee in Mainland China	Main business activities	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as of January 1,2018	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31,2018	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31,2018	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2018	Net income of investee for the year ended December 31, 2018	Ownership held by Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2018 (Note 27)	Book value of investments in Mainland China as of December 31,2018	Accumulated amount of investment income remitted back to Taiwan as of December 31,2018	Footnote
					Remitted to Mainland China	Remitted back toTaiwan
Delta Electronics (Dongguan) Co., Ltd.	Manufacturing and sales of transformer and thermal products	3,004,234 $	Invested by DHK	2,065,000 $	- $	- $	2,065,000 $	119,691 $	94.00	84,463 $	3,564,385 $	296,707 $	(Notes 3 and 19)
Delta Electronics Power (Dongguan) Co., Ltd.	Manufacturing and sales of transformer and power supplies	1,293,102	Invested by DHK	519,698	-	-	519,698	545,120	94.00	511,962	2,528,226	412,686	(Notes 6 and 19)
Delta Electronics (Shanghai) Co., Ltd.	Product design, management consulting service and distribution of electronic products.	3,547,929	Invested by DHK	-	-	-	-	2,101,904	94.00	1,973,871	5,856,352	-	(Notes 9 and 19)
Delta Electronics (Wuhu) Co., Ltd.	Manufacturing and sales of LED light source, power supplies and others.	4,115,810	Invested by DHK	173,233	-	-	173,233	261,289	94.00	245,397	4,292,682	-	(Notes 10 and 19)
Delta Electronics (Chenzhou) Co., Ltd.	Manufacturing and sales of transformers	1,935,045	Invested by DHK	-	-	-	-	51,336	94.00	48,567	1,797,012	-	(Notes 12 and 19)
Delta Electronics (Jiangsu) Ltd.	Manufacturing and sales of power supplies and transformers	1,228,600	Invested by DHK, Apex- HK,Galaxy Star-HK and Jade-HK	4,109,250	-	-	4,109,250	376,846	94.00	354,075	2,503,892	-	(Note 25)
Delta Electronics Components (Wujiang) Ltd.	Manufacturing and sales of new-type electronic components, variable-frequency drive and others.	3,618,534	Invested by DHK, Apex- HK,Galaxy Star-HK and Jade-HK	6,506,395	-	-	6,506,395	1,168,969	94.00	1,124,791	6,833,047	54,189	(Notes 7 and 25)
Delta Video Display System (Wujiang) Ltd.	Manufacturing and sales of various projectors	890,735	Invested by DHK, Apex- HK,Galaxy Star-HK and Jade-HK	1,363,389	-	-	1,363,389	67,745	94.00	82,623	1,263,621	-	(Notes 8 and 25)
Delta Electronics (Wujiang) Trading Co., Ltd.	Installation, consulting and trading of electronic products	61,430	Invested by DHK	11,549	-	-	11,549	-	94.00	-	97,882	-	(Notes 15 and 19)
Delta Green (Tianjin) Industries Co., Ltd.	Manufacturing and sales of transformers	695,695	Invested by DHK	953,713	-	-	953,713	27,115) (	94.00	25,488) (	573,247	-	(Notes 14 and 19)
Delta Electronics (Pingtan) Co., Ltd.	Wholesale and retail of electronic products and energy-saving equipment	134,193	Invested by DHK	144,361	-	-	144,361	46,040	94.00	43,278	184,380	-	(Note 19)
PreOptix (Jiang Su) Co., Ltd.	Manufacturing and sales of lenses and optical enginges for projectors	406,974	Invested by PHK	392,231	-	-	392,231	121,277) (	96.38	97,771) (	264,796	-	(Notes 13 and 22)
Wuhu Delta Technology Co., Ltd.	Manufacturing and sales of transformers	131,956	Invested by DWH	-	-	-	-	1,013) (	94.00	953) (	137,968	-	(Note 17)
Chenzhou Delta Technology Co., Ltd.	Manufacturing and sales of transformers	114,064	Invested by DCZ	-	-	-	-	52,560	94.00	49,424	190,943	-	(Note 17)
Delta Energy Technology (Dongguan) Co., Ltd.	Research and development of energy-saving technology, energy-saving equipment, energy management system and technology consulting service, etc	134,193	Invested by DPEC and DDG	-	-	-	-	4,124	94.00	3,919	153,218	-	(Note 17)
Delta Energy Technology (Shanghai) Co., Ltd.	Research and development of energy-saving technology, energy-saving equipment, energy management system and technology consulting service, etc	44,731	Invested by DPEC and DGC	-	-	-	-	(1,306)	90.54	(1,228)	37,124	-	(Note 17)

Table 10-1

Investee in Mainland China	Main business activities	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as of January 1,2018	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31,2018	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31,2018	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2018	Net income of investee for the year ended December 31, 2018	Ownership held by Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2018 (Note 27)	Book value of investments in Mainland China as of December 31,2018	Accumulated amount of investment income remitted back to Taiwan as of December 31,2018	Footnote
					Remitted to Mainland China	Remitted back toTaiwan
Delta Greentech (China) Co., Ltd.	Manufacturing and sales of uninterruptible power systems	2,540,721 $	Invested by DIH, Ace, Boom, Drake and DGSG	8,966,444 $	-	-	8,966,444 $	629,009 $	90.16	733,237 $	5,108,530 $	- $	(Notes 4 and 18)
Delta Energy Technology Puhuan (Shanghai) Co. , Ltd.	Energy technology, development and consulting of environmental technical skills, and design and sales of energy saving equipment	447	Invested by DET-SH	-	-	-	-	4,238	90.54	3,837	6,622	-	(Note 17)
Cyntec Electronics (Suzhou) Co., Ltd.	Research, development, manufacturing and sales of new-type electronic components (chip components, sensing elements, hybrid integrated circuits) and wholesale of similar products	6,218,632	Invested by CHK	6,095,772	-	-	6,095,772	320,833	100.00	320,833	7,112,615	-	(Note 21)
Delta Networks (Dongguan) Ltd.	Manufacturing and sales of other radio- broadcast receivers and the equipment in relation to broadband access networking system	1,075,025	Invested by DNHK	1,373,155	-	-	1,373,155	439,983	100.00	439,983	2,180,885	675,730	(Notes 5 and 20)
Delta Networks (Xiamen) Ltd.	Operation of radio transmission apparatus, and automatic data processing, reception, conversion and transmission or regeneration of voice, images or other data of the machine, including switches and routers, with a special program to control a computer or word processor with memory business	65,971	Invested by DNHK	21,501	-	-	21,501	24,343) (	30.00	7,417) (	12,679	-	(Note 20)
Eltek Energy Technology (Dongguan) Ltd.	Development, manufacturing and sales of intelligent power equipment and system for supporting access networking system, and manufacturing and sale of intelligent power equipment for supporting renewable energy	227,291	Invested by Eltek CVI LIMITED	1,151,212	-	-	1,151,212	58,014) (	100.00	58,014) (	207,921	-	(Note 24)
DelBio (Wujiang) Co., Ltd.	Manufacturing, wholesale and retail of medical equipment	122,860	Invested by DelBio	122,860	-	-	122,860	24,661	100.00	24,661	149,045	-	(Note 23)
Delta Electronics (Beijing) Co., Ltd.	Installation of mechanic, electronic, telecommunication and circuit equipment	223,655	Invested by DHK	-	-	-	-	27,140) (	94.00	25,393) (	171,884	-	(Notes 16 and 19)
Delta Electronics (Xi'an) Co., Ltd.	Sales of computer, peripheral equipment and software	246,021	Invested by DHK	241,167	-	-	241,167	6,002) (	94.00	5,642) (	227,333	-	(Note 19)
Beijing Industrial Foresight Technology Co., Ltd.	Computer system services and data process	29,075	Invested by Delta Electronics (Beijing) Co., Ltd.	-	-	-	-	28,965) (	75.20	22,629) (	16,079	-	(Note 17)
Unicom (Nanjing) System Eng. Corp	Design and sales of computer, peripheral and information system (software and hardware)	9,215	Invested by UNICOM SYSTEM ENG. CORP.	9,215	-	-	9,215	27,071	100.00	27,071	62,049	-	(Note 11)

Note 1: The capital was translated based on the capital certified report of the investee companies into New Taiwan Dollars at the average exchange rate of RMB 6.8666 to US$1 and NTD 4.4731 to RMB$1.

Note 2: The accumulated remittance as of January 1, 2018, remitted or collected this period, accumulated remittance as of December 31, 2018 and investment income remitted back as of December 31, 2018 was translated into New Taiwan Dollars at the average exchange rate of NTD 30.7150 to US$1 at the balance sheet date.

Note 3: Except for the facility of US$67,231 thousand permitted by Investment Commission, the capitalization of earnings of US$27,081 thousand permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China. Note 4: Except for the facility of US$291,924 thousand permitted by Investment Commission, the capitalization of earnings of US$980 thousand permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China. Note 5: Except for the facility of US$44,706 thousand permitted by Investment Commission, the capitalization of earnings of US$11,312 thousand permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.

Table 10-2

Note 6: Except for the facility of US$16,920 thousand permitted by Investment Commission, the capitalization of earnings of US$22,654 thousand permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.

Note 7: Except for the facility of US$211,831 thousand permitted by Investment Commission, the capitalization of earnings of US$27,303 thousand permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China. Note 8: Except for the facility of US$44,388 thousand permitted by Investment Commission, the capitalization of earnings of US$8,272 thousand permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China. Note 9: The capitalization of earnings of US$110,401 thousand permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.

Note 10: Except for the facility of US$5,640 thousand permitted by Investment Commission, the capitalization of earnings of US$120,320 thousand permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China. Note 11: Indirect investment through UNICOM SYSTEM ENG. CORP.

Note 12: The earnings transferred to investment in Delta Electronics (Chenzhou) Co., Ltd. is US$59,220 thousand approved by the Investment Commission of the Ministry of Economic Affairs (MOEA) is not included in the Company's investments in Mainland China. Note 13: Except for the facility of US$7,520 thousand permitted by Investment Commission, the investment of US$5,250 thousand by PreOptix Co., Ltd. was permitted by Investment Commission.

Note 14: Except for the facility of US$31,050 thousand permitted by Investment Commission, the capitalization of earnings of US$265 thousand permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China. Note 15: Except for the facility of US$376 thousand permitted by Investment Commission, the capitalization of earnings of US$1,504 thousand permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China. Note 16: The capitalization of earnings of US$7,268 thousand permitted by Investment Commission, is exclued from the Company’s amount of investment in Mainland China.

Note 17: According to the regulations of the Investment Commission, the reinvestment of the investee companies in Mainland China is not required to obtain the approval of the Investment Commission; thus the investment amounts are excluded from the calculation of the Company’s ceiling of investment amount in Mainland China.

Note 18: Jointly invested through Delta International Holding Limited, Ace Pillar Holding Co., Ltd., Drake Investment (H.K.) Ltd., Delta Greentech SGP Pte Ltd and Boom Treasure Limited.

Note 19: Invest through Delta Electronics (H.K.) Ltd.

Note 20: Invest through Delta Networks (H.K.) Limited

Note 21: Invest through Cyntec Holding (H.K.) Ltd.

Note 22: Invest through PreOptix (Hong Kong) Co., Ltd.

Note 23: Invest through DelBio Inc.

Note 24: Invest through Delta Electronics (Netherlands) B.V.. Note 25: Invest through Delta Electronics (H.K.) Ltd., and Delta International Holding Limited Note 26: The Company recognised investment income / loss based on the audited financial statement.

Company name	Accumulated amount remitted from Taiwan to Mainland China as of December 31, 2018	Investment amount approved by the Investment Commission of Ministry of Economic Affairs (MOEA)	Ceiling of investments in Mainland China imposed by the Investment Commission of MOEA
Delta Electronics, Inc. (Note 2 and 3)	$ 26,729,037	$ 27,284,825	$ -
Cyntec Co., Ltd.	6,095,772	6,095,772	17,629,953
DelBio Inc. (Note 4)	122,860	122,860	124,418
UNICOM SYSTEM ENG. CORP. (Note 5)	9,215	9,215	80,000

Note 1: The accumulated amount remitted out of Taiwan to Mainland China and investment amount approved by the investment commission was translated into New Taiwan Dollars at the average exchange rate of NTD 30.715 to US$1 at the balance sheet date. Note 2: The investment income of US$22,000 thousand, US$18,000 thousand, US$10,509 thousand and US$14,351 thousand were remitted back on March 11, 2011, June 27, 2012, August 14, 2012, June 24, 2009 and December 29, 2005, respectively, from the investee companies in Mainland China and was permitted by Investment Commission on August 3, 2012, August 28, 2012, July 17, 2009 and January 6, 2006, respectively, which are deductible from the Company’s accumulated amount remitted out of Taiwan to Mainland China.

Note 3: According to “Regulation Governing the Approval of Investment or Technical Cooperation in Mainland China”, the Company obtained the approval of operation headquarters from Industrial Development Bureau of Ministry of Economic Affairs. There is no ceiling of investment amount.

Note 4: The ceiling is caculated based on DelBio Inc.' s 60% of net assets as of December 31, 2018.

Note 5: The limitation pursuant to the regulations is NT $80 million or 60% of net value or consolidated net assets, whichever is higher.

The significant purchases, sales, accounts payable and accounts receivable that the Company directly conducted with investee companies in Mainland China as well as those that the Company indirectly conducted with investee companies in Mainland China through Delta Electronics Int'l (Singapore) Pte. Ltd. (DEIL-SG) and Cyntec International Ltd. (CIL-Labuan) for the year ended December 31, 2018 are shown in Table 6 and 7.

Table 10-3