English Translation of Financial Statements and a Report Originally Issued in Chinese

Ticker: 3189

والواسد وبالوالي الموارد والمرود والمتعلقة المواصل للممسولا

KINSUS INTERCONNECT TECHNOLOGY CORP. PARENT-COMPANY-ONLY FINANCIAL STATEMENTS WITH AUDIT REPORT OF INDEPENDENT ACCOUNTANTS AS OF DECEMBER 31, 2014 AND 2013 AND FOR THE YEARS THEN ENDED

Address: No.1245, Chung Hua Rd., Hsinwu District, Taoyuan City, Taiwan 32747 $(03)$ 487-1919 Telephone:

The reader is advised that these consolidated financial statements have been prepared originally in Chinese. In the event of a conflict between these financial statements and the original Chinese version or difference in interpretation between the two versions, the Chinese language financial statements shall prevail.

English Translation of Financial Statements and a Report Originally Issued in Chinese

المتحدث والمنافذ

وسووون والأوالي والمتواطئ

Parent-company-only financial statements

Index

	Item	Page numbering
1.	Cover sheet	$\mathbf 1$
	2. Index	$\overline{2}$
	3. Report of independent auditors	3
4.	Parent-company-only balance sheets	$4 - 5$
5.	Parent-company-only statements of comprehensive incomes	6
6.	Parent-company-only statements of changes in equity	7
7.	Parent-company-only statements of cash flows	8
8.	Footnotes to the parent-company-only financial statements
	(1) History and organization	9
	(2) Date and procedures of authorization of financial statements for issue	9
	(3) Newly issued or revised standards and interpretations	$9 - 24$
	(4) Summary of significant accounting policies	24-40
	(5) Significant accounting judgments, estimates and assumptions	$40 - 41$
	(6) Contents of significant accounts	$41 - 64$
	(7) Related party transactions	64-67
	(8) Assets pledged as collateral	67
	(9) Significant contingencies and unrecognized contract commitments	67
	(10) Losses due to major disasters	67
	(11) Significant subsequent events	67
	$(12)$ Others	68-74
	(13) Other disclosures
	1. Additional disclosures required by the R.O.C. Securities and Futures Bureau	74-75
	2. Information on investees	-75
	3. Information on investments in Mainland China	$76 - 81$
	(14) Operating segment	81
	9. Details of significant accounts	90-122

English Translation of an Audit Report Originally Issued in Chinese REPORT OF INDEPENDENT AUDITORS

To: the Board of Directors and Shareholders of Kinsus Interconnect Technology Corp.

We have audited the accompanying parent-company-only balance sheets of Kinsus Interconnect Technology Corp. as of December 31, 2014 and 2013, the related statements of comprehensive incomes, changes in equity, and cash flows for the years then ended. These parent-company-only financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these parent-company-only financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the Republic of China and "Guidelines for Certified Public Accountants' Examination and Reports on Financial Statements", which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, based on our audits, the parent-company-only financial statements referred to above present fairly, in all material respects, the financial position of Kinsus Interconnect Technology Corp. as of December 31, 2014 and 2013, and the results of its operations and cash flows for the years then ended in conformity with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Gronst & Young

Ernst & Young February 9, 2015 Taipei, Taiwan, Republic of China

Notice to Readers

The accompanying parent-company-only financial statements are intended only to present the financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China on Taiwan and not those of any other jurisdictions. The standards, procedures and practice to audit such financial statements are those generally accepted and applied in the Republic of China on Taiwan.

Kinsus Interconnect Technology Corp. PARENT-COMPANY-ONLY BALANCE SHEETS

As of December 31, 2014 and 2013

(Amounts Expressed in Thousands of New Taiwan Dollars)

Assets			As of December 31, 2014		As of December 31, 2013
Code	Accounts	Notes	Amount	$\%$	Amount	$\%$
	Current assets
1100	Cash and cash equivalents	4, 6(1)	\$10,082,304	30	\$8,097,835	26
1110	Financial assets at fair value through profit or loss	4, 6(2)	5,081,578	15	5,053,791	16
1125	Available-for-sale financial assets	4, 6(3)	40,369		57,715
1147	Bond investments with no active market	4, 6(4)	420,000	1	420,000	$\overline{2}$
1150	Notes receivable, net	4, 6(5)	4,358		69,383
1170	Accounts receivable, net	4, 6(6)	2,403,669	7	2,447,303	8
1180	Accounts receivable - related parties, net	4, 6(6), 7	1,008		29,377
1200	Other receivables		392,702	1	395,162	$\overline{2}$
1210	Other receivables - related parties		9,197		12,502
1310	Inventories, net	4, 6(7)	1,321,824	4	1,179,885	4
1410	Prepayments		76,320		77,165
1470	Other current assets		47,558		39,235
11XX	Total current assets		19,880,887	58	17,879,353	58
	Non-current assets
1550	Investment accounted for under equity method	4, 6(8)	4,009,504	12	4,058,620	13
1600	Property, plant and equipment, net	4, 6(9), 8, 9	8,914,836	26	7,970,375	26
1780	Intangible assets, net	4, 6(10)	11,927		7,408
1840	Deferred tax assets	4, 6(23)
1915	Prepayment for equipment	4, 6(9), 9	1,438,282	4	1,050,996	3
1995	Other non-current assets	(6(11), 7, 8)	5,347		4,502
15XX	Total non-current assets		14,379,896	42	13,091,901	42
	1XXX Total Assets		\$34,260,783	100	\$30,971,254	100

(The accompanying notes are an integral part of the parent-company-only financial statements.)

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese Kinsus Interconnect Technology Corp. PARENT-COMPANY-ONLY BALANCE SHEETS-(Continued) As of December 31, 2014 and 2013 (Amounts Expressed in Thousands of New Taiwan Dollars)

Liabilities and Equity			As of December 31, 2014		As of December 31, 2013
Code	Accounts	Notes	Amount	%	Amount	%
	Current liabilities
2100	Short-term loans	6(12)	\$730,798	$\overline{2}$	\$866,133	3
2150	Notes payable		39,864		39,594
2170	Accounts payable		927,069	3	770.794	$\overline{2}$
2180	Accounts payable - related parties		247,315	1	183,102
2200	Other payables	6(13), 7	2,981,520	9	2,082,230	7
2230	Current income tax liabilities	4, 6(23)	893,791	3	1,066,845	3
2300	Other current liabilities	6(14)	491,418		382,614
21XX	Total current liabilities		6,311,775	$\overline{19}$	5,391,312	17

	Non-current liabilities
2540	Long-term loans	6(15), 8	467,335		425,268
2570	Deferred tax liabilities	4, 6(23)	53,996		26,382
2600	Other non-current liabilities	4, 6(16), 6(17)	29,668		49,351
25XX	Total non-current liabilities		550,999	$\mathbf{1}$	501,001	$\overline{2}$

	2XXX Total liabilities		6,862,774	20	5,892,313	19

3100	Capital	6(18)
3110	Common stock		4,460,000	13	4,460,000	14
3200	Capital surplus	6(18)	5,939,819	17	5,863,612	19
3300	Retained earnings	6(18)
3310	Legal capital reserve		2,687,890	8	2,365,481	8
3320	Special capital reserve				74,424
3350	Unappropriated earnings		14,030,597	41	12,206,545	40
3400	Other components of equity		279,703		108,879
	3XXX Total equity		27,398,009	80	25,078,941	81

	Total liabilities and equity		\$34,260,783	100	\$30,971,254	100

(The accompanying notes are an integral part of the parent-company-only financial statements.)

$\bullet$

CEO: Ming-Dong Guo

Kinsus Interconnect Technology Corp. PARENT-COMPANY-ONLY STATEMENTS OF COMPREHENSIVE INCOME For the Years Ended December 31, 2014 and 2013 (Amounts Expressed in Thousands of New Taiwan Dollars, Except Earnings Per Share)

			2014		2013
Code	Accounts	Notes	Amount	%	Amount	$\%$
	4000 Operating revenues	4, 6(19), 7	\$19,290,237	100	\$18,026,999	100
	5000 Operating costs		(13,017,150)	(68)	(11,988,400)	(67)
	5900 Gross profit		6,273,087	32	6,038,599	33
	6000 Operating expenses
6100	Selling		(376, 656)	(2)	(395, 503)	(2)
6200	General and administrative		(624, 714)	(3)	(606, 358)	(3)
6300	Research and development		(971, 583)	(5)	(936, 503)	(5)
	Operating expenses total		(1,972,953)	(10)	(1,938,364)	(10)
	6900 Operating income		4,300,134	22	4,100,235	23

	7000 Non-operating income and expenses
7010	Other income	6(21), 7	113,102		95.060
7020	Other gains and losses	6(21), 7	75,770		64,352
7050	Finance costs	6(21)	(19, 712)		(17, 042)
7070	Share of profit or loss of subsidiaries, associates and joint ventures		(319, 590)	(2)	(473, 544)	(3)
	Non-operating income and expense total		(150, 430)	(1)	(331, 174)	(2)

7900	Income expense from continuing operations before income tax		4,149,704	21	3,769,061	21
7950	Income tax	4, 6(23)	(532, 377)	(2)	(544,968)	(3)
8200	Net income	6(22)	3,617,327	19	3,224,093	18
8300 8320	Other comprehensive income (loss)
8360	Unrealized gain (loss) on available-for-sale Actuarial gain (loss) on defined benefit plains		9,583		(535) 13,395
8380	Share of other comprehensive income (loss) of subsidiaries, associates and joint ventures		15,710 194,267		203,043
8399	Income tax related to components of other comprehensive income		(33,026)		(19,205)
	Total other comprehensive income, net of tax		186,534		196,698
18500	Total comprehensive income		\$3,803,861	20	\$3,420,791	19

	9750 Earnings per share - basic (in NT\$)	6(24)	\$8.11		\$7.23
	9850 Earnings per share - diluted (in NT\$)	6(24)	\$7.98		\$7.12

(The accompanying notes are an integral part of the parent-company-only financial statements.)

Kinsus Interconnect Technology Corp.

PARENT-COMPANY-ONLY STATEMENTS OF CHANGES IN EQUITY

For the Years Ended December 31, 2014 and 2013

(Amounts Expressed in Thousands of New Taiwan Dollars)

						Retained Earnings		Other Components of equity
	Items	Notes	Capital	Capital Surplus	Legal Reserve	Special Reserve	Unappropriated Earnings	Exchange differences arising on translation of foreign operations	Unrealized valuation gain (loss) on available-for-sale financial assets
Code			3100	3200	3310	3320	3350	3410	3425	3XXX
A ₁	Balance as of January 1, 2013		\$4,460,000	\$5,853,673	\$2,085,712	$S-$	\$10,661,250	\$(90,070)	\$15,646	\$22,986,211
	Appropriation and distribution of 2012 earnings:	6(18)
B1	Legal reserve				279,769		(279, 769)
B ₃	Special reserve					74,424	(74, 424)
В5	Cash dividends - common shares						(1,338,000)			(1,338,000)
D1	Net income (loss) for 2013						3,224,093			3,224,093
D ₃	Other comprehensive income (loss) for 2013	6(22)					13,395	183,838	(535)	196,698
D5	Total comprehensive income						3,237,488	183.838	(535)	3,420,791
M5	Differences between equity purchase price and carrying amount arising from acquisition or disposal of subsidiaries			9,939						9,939
Al	Balance as of December 31, 2013		4,460,000	5,863,612	2,365,481	74,424	12,206,545	93,768	15,111	25,078,941
	Appropriation and distribution of 2013 earnings:	6(18)
B1	Legal reserve				322,409		(322, 409)
B ₅	Cash dividends - common shares						(1,561,000)			(1,561,000)
B17	Reversal of special reserve					(74, 424)	74,424
DI	Net income (loss) for 2014						3,617,327			3,617,327
D ₃	Other comprehensive income (loss) for 2014	6(22)					15,710	161,241	9,583	186,534
D5	Total comprehensive income					$\overline{\phantom{0}}$	3,633,037	161,241	9,583	3,803,861
M5	Differences between equity purchase price and carrying amount arising from acquisition or disposal of subsidiaries			50.925						50,925
M7	Changes in equities of subsidiaries			25,282						25,282
Z1	Balance as of December 31, 2014		\$4,460,000	\$5,939,819	\$2,687,890	$S-$	\$14,030,597	\$255,009	\$24,694	\$27,398,009

(The accompanying notes are an integral part of the parent-company-only financial statements.)

CEO: Ming-Dong Guo

$\mathbb{R}^2$

Kinsus Interconnect Technology Corp.

PARENT-COMPANY-ONLY STATEMENTS OF CASH FLOWS

For the Years Ended December 31, 2014 and 2013

(Amounts Expressed in Thousands of New Taiwan Dollars)

Code	Items	2014	2013	Code	Items	2014	2013
AAAA	Cash flows from operating activities:			BBBB	Cash flows from investing activities:
A10000	Net income before tax	\$4,149,704	\$3,769,061	B01800 B02700	Acquisition of investments by equity method		(650, 140)
A20000	Adjustments:			B02800	Acquisition of property, plant and equipment	(2,636,178)	(2,910,872)
A20010	Profit or loss not effecting cash flows:				Proceeds from disposal of property, plant and equipment	6,635	6,284
A20300	Bad debt expense (gain on recovery) Interest income	5.418	(13, 653)	B00400 B03800	Disposal of available-for-sale financial assets Decrease (increase) in refundable deposits	51,620	10,597
A21200 A20900	Interest expense	(71.135) 19,712	(59, 530) 17,042	B04500	Acquisition of intangible assets	(845) (25, 231)	63 (17,923)
A20100	Depreciation			BBBB	Net cash provided by (used in) investing activities	(2,603,999)	(3,561,991)
A20200	Amortization	1,911,643 20,712	1,867,088 12,813
A22500	Gain on disposal of property, plant and equipment	(602)	(5,207)	cccc	Cash flows from financing activities:
A22500	Loss on disposal of property, plant and equipment	1,231	2,234	C00100	Increase in (repayment of) short-term loans	(135, 335)	(351,717)
A23100	Gain on disposal of investment	(24.691)	(10, 732)	C01600	Increase in long-term loans	474,750	190,066
A20400	Net loss (gain) of financial assets (liabilities) at fair value through profit or loss	(27, 787)	(22, 456)	C01700	Repayment of long-term loans	(267,000)	(277, 036)
A22300	Share of profit or loss of subsidiaries, associates and joint ventures	319.590	473,544	C04500	Payment of cash dividends	(1,561,000)	(1,338,000)
A30000	Changes in operating assets and liabilities:			cccc	Net cash provided by (used in) financing activities	(1,488,585)	(1,776,687)
A31110	Financial Assets at fair value through profit or loss		(700,000)
A31130	Notes receivable	65 025	(13, 234)		EEEE Net Increase (decrease) in cash and cash equivalents	1,984,469	614,318
A31150	Accounts receivable	38 216	149,626		E00100 Cash and cash equivalents at beginning of period	8,097,835	7,483,517
A31160	Accounts receivable - related parties	28,369	(7, 562)		E00200 Cash and cash equivalents at end of period	\$10,082,304	\$8,097,835
A31180	Other receivable	2,968	198,257
A31190	Other receivable - related parties	3,305	(6,625)
A31200	Inventories	(141.939)	119,106
A31220	Prepayment	845	(8,951)
A31240	Other current assets	(8, 323)	(5, 487)
A32130	Notes payable	270	684
A32150	Accounts payable	156,275	(66, 849)
A32160	Accounts payable - related parties	64,213	147,880
A32180	Other payable	284 537	427,508
A32210	Advance receipts	(4,638)	982
A32230	Other current liabilities	(52, 241)	61,558
A32240 A33000	Accrued pension liability Cash generated from operations	(3,973) 6,736,704	(4, 184) 6,322,913
A33100	Interest received	70.627	59,465
A33300	Interest paid	(19, 435)	(17, 108)
A33500	Income tax paid	(710, 843)	(412, 274)
AAAA	Net cash provided by (used in) operating activities	6,077,053	5,952,996

(The accompanying notes are an integral part of the parent-company-only financial statements.)

English Translation of Parent-Company-Only Financial Statements and Footnotes Originally Issued in Chinese Kinsus Interconnect Technology Corp. Notes to the Parent-Company-Only Financial Statements (Amounts Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

$1.$ HISTORY AND ORGANIZATION

Kinsus Interconnect Technology Corp. (referred to "the Company") was established on September 11, 2000. Its main business activities include the manufacture of electronic products, the whole-sale and retail-sale of electronic materials, and the consultation services of business operation and management. The Company's stocks have been governmentally approved on May 20th, 2004 to be listed and traded in Taiwan Stock Exchange starting November 1st, 2004. The registered business premise and main operation address is at 1245, Chung Hua Rd., Hsinwu District, Taoyuan City, Taiwan 32747.

2. DATE AND PROCEDURE OF AUTHORIZATION FOR FINANCIAL STATEMENTS ISSUANCE

The financial statements of the Company were authorized to be issued in accordance with a resolution of the Board of Directors' meeting held on February 9, 2015.

3. NEWLY ISSUED OR REVISED STANDARDS AND INTERPRETATIONS

(1)International Financial Reporting Standards, International Accounting Standards, and Interpretations issued, revised or amended, which are recognized by Financial Supervisory Commission ("FSC") and would be applicable for annual periods beginning on or after January 1, 2015, but not yet adopted by the Company at the date of issuance of the Company's financial statements are listed below.

(a) Improvements to International Financial Reporting Standards (issued in 2010):

IFRS 1 "First-time Adoption of International Financial Reporting Standards"

The annual improvements to International Financial Reporting Standards ("IFRS") issued in 2010 made the following amendments to IFRS 1: If a first-time adopter changes its accounting policies or its use of the exemptions in IFRS 1 after it has published an interim financial report, it needs to explain those changes and update the reconciliations between previous GAAP and IFRS in accordance with paragraph 23 of IFRS 1.

Furthermore, the amendment allows first-time adopters to use an event-driven fair value as deemed cost, even if the event occurs after the date of transition, but before the first IFRS financial statements are issued. The amendment also expands the scope of 'deemed cost' for property, plant and equipment or intangible assets to include items used subject to rate regulated activities. The exemption will be applied on an item-by-item basis. All such assets will also need to be tested for impairment at the date of transition. The amendment allows entities with rate-regulated activities to use the carrying amount of their property, plant and equipment and intangible balances from their previous GAAP as its deemed cost upon transition to IFRS. These amendments became effective for annual periods beginning on or after January 1, 2011.

IFRS 3 "Business Combinations"

Under the amendment, IFRS 3 (as revised in 2008) do not apply to contingent consideration that arose from business combinations whose acquisition dates precede the application of IFRS 3 (as revised in 2008). Furthermore, the amendment limits the scope of the measurement choices for non-controlling interest. Only the components of non-controlling interests that are present ownership interests that entitle their holders to a proportionate share of the entity's net assets, in the event of liquidation could be measured at either fair value or at the present ownership instruments' proportionate share of the acquiree's identifiable net assets. Other components of non-controlling interest are measured at their acquisition date fair value.

The amendment also requires an entity in a business combination to account for the replacement of the acquiree's share-based payment transactions (when the acquirer is not obliged to do so) as new share-based payment awards in the post-combination financial statements.

Outstanding share-based payment transactions that the acquirer does not exchange for its share-based payment transactions: if vested—they are part of non-controlling interest; if unvested—they are measured at market based value as if granted at acquisition date, and allocated between NCI and post-combination expense.

These amendments became effective for annual periods beginning on or after July 1, 2010.

IFRS 7 "Financial Instruments: Disclosures"

The amendment emphasizes the interaction between quantitative and qualitative disclosures and the nature and extent of risks associated with financial instruments. The amendment became effective for annual periods beginning on or after January 1, 2011.

IAS 1 "Presentation of Financial Statements"

The amendment clarifies that an entity will present an analysis of other comprehensive income for each component of equity, either in the statement of changes in equity or in the notes to the financial statements. The amendment became effective for annual periods beginning on or after January 1, 2011.

IAS 34 "Interim Financial Reporting"

The amendment clarifies that if a user of an entity's interim financial report have access to the most recent annual financial report of that entity, it is unnecessary for the notes to an interim financial report to provide relatively insignificant updates to the information that was reported in the notes in the most recent annual financial report. Furthermore the amendment adds disclosure requirements around disclosures of financial instruments and contingent liabilities/assets. The amendment is effective for annual periods beginning on or after January 1, 2011.

IFRIC 13 "Customer Loyalty Programmes"

The amendment clarifies that when the fair value of award credits is measured based on the value of the awards for which they could be redeemed, the amount of discounts or incentives otherwise granted to customers not participating in the award credit scheme is to be taken into account. The amendment is effective for annual periods beginning on or after January 1, 2011.

(b) IFRS 1 "First-time Adoption of International Financial Reporting Standards" $-$ Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters

IFRS 1 has been amended to allow first-time adopters to utilize the transitional provisions of IFRS 7 Financial Instruments: Disclosures. These provisions give relief from providing comparative information in the disclosures required by amendments to IFRS 1 in the first year of application. The amendment is effective for annual periods beginning on or after July 1, 2010.

$(c)$ IFRS 1 "First-time Adoption of International Financial Reporting Standards" – Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters

The amendment has provided guidance on how an entity should resume presenting IFRS financial statements when its functional currency ceases to be subject to severe hyperinflation. The amendment also removes the legacy fixed dates in IFRS 1 relating to derecognition and day one gain or loss transactions. The amended standard has these dates coinciding with the date of transition to IFRS. The amendment is effective for annual periods beginning on or after July 1, 2011.

(d)IFRS 7 "Financial Instruments: Disclosures" (Amendment)

The amendment requires additional quantitative and qualitative disclosures relating to transfers of financial assets, when financial assets are derecognised in their entirety, but the entity has a continuing involvement in them, or financial assets are not derecognised in their entirety. The amendment is effective for annual periods beginning on or after July 1, 2011.

(e)IAS 12 "Income Taxes" – Deferred Taxes: Recovery of Underlying Assets

The amendment to IAS 12 introduce a rebuttable presumption that deferred tax on investment properties measured at fair value will be recognized on a sale basis, unless an entity has a business model that would indicate the investment property will be consumed in the business. The amendment also introduces the requirement that deferred tax on non-depreciable assets measured using the revaluation model in IAS 16 should always be measured on a sale basis. As a result of this amendment, SIC 21 Income Taxes - Recovery of Revalued Non-Depreciable Assets has been withdrawn. The amendment is effective for annual periods beginning on or after January 1, 2012.

(f)IFRS 10 "Consolidated Financial Statements"

IFRS 10 replaces the portion of IAS 27 that addresses the accounting for consolidated financial statements and SIC-12. The changes introduced by IFRS 10 primarily relate to the elimination of the perceived inconsistency between IAS 27 and SIC-12 by introducing a new integrated control model. That is, IFRS 10 primarily relates to whether to consolidate another entity, but does not change how an entity is consolidated. The standard is effective for annual periods beginning on or after January 1, 2013.

(g)IFRS 11 "Joint Arrangements"

IFRS 11 replaces IAS 31 and SIC-13. The changes introduced by IFRS 11 primarily relate to increase comparability within IFRS by removing the choice for jointly controlled entities to use proportionate consolidation, so that the structure of the arrangement is no longer the most important factor when determining the classification as a joint operation or a joint venture, which then determines the accounting. The standard is effective for annual periods beginning on or after January 1, 2013.

(h) IFRS 12 "Disclosures of Interests in Other Entities"

IFRS 12 primarily integrates and makes consistent the disclosure requirements for subsidiaries, joint arrangements, associates and unconsolidated structured entities and presents those requirements in a single IFRS. The standard is effective for annual periods beginning on or after January 1, 2013.

(i)IFRS 13"Fair Value Measurement"

IFRS 13 primarily relates to defining fair value, setting out in a single IFRS a framework for measuring fair value and requiring disclosures about fair value measurements to reduce complexity and improve consistency in application when measuring fair value. However, IFRS 13 does not change existing requirements in other IFRS as to when the fair value measurement or related disclosure is required. The standard is effective for annual periods beginning on or after January 1, 2013.

$(j) IAS$ 1 "Presentation of Financial Statements" – Presentation of Items of Other Comprehensive Income

The amendments to IAS 1 change the grouping of items presented in Other Comprehensive Income. Items that would be reclassified (or recycled) to profit or loss in the future would be presented separately from items that will never be reclassified. The amendment is effective for annual periods beginning on or after July 1, 2012.

(k)IAS 19 "Employee Benefits" (Revised)

The revision includes: (1) For defined benefit plans, the ability to defer recognition of actuarial gains and losses (i.e., the corridor approach) has been removed. Actuarial gains and losses are now recognized in Other Comprehensive Income. (2) Amounts recorded in profit or loss are limited to current and past service costs, gains or losses on settlements, and net interest income (expense). (3) New disclosures include quantitative information about the sensitivity of the defined benefit obligation to a reasonably possible change in each significant actuarial assumption. (4) Termination benefits will be recognized at the earlier of when the offer of termination cannot be withdrawn, or when the related restructuring costs are recognized under IAS 37 Provisions, Contingent Liabilities and Contingent Assets, etc.. The revised standard is effective for annual periods beginning on or after January 1, 2013.

(I)IFRS 1 "First-time Adoption of International Financial Reporting Standards" $-$ Government Loans

The IASB has added an exception to the retrospective application of IFRS 9 (or IAS 39) and IAS 20. These amendments require first-time adopters to apply the requirements of IAS 20 prospectively to government loans existing at the date of transition to IFRS. However, entities may choose to apply the requirements of IFRS 9 (or IAS 39, as applicable) and IAS 20 to government loans retrospectively if the information needed to do so had been obtained at the time of initially accounting for those loans. The amendment is effective for annual periods beginning on or after January 1, 2013.

$(m)$ IFRS 7 "Financial Instruments: Disclosures" $-Disclosures$ $-Off setting$ Financial Assets and Financial Liabilities

These amendments require an entity to disclose information about rights of set-off and related arrangements. The disclosures would provide users with information that is useful in evaluating the effect of netting arrangements on an entity's financial position. The new disclosures are required for all recognized financial instruments that are set off in accordance with IAS 32 Financial Instruments: Presentation. The disclosures also apply to recognized financial instruments that are subject to an enforceable master netting arrangement or 'similar agreement'. The amendment is effective for annual periods beginning on or after January 1, 2013.

$(n)$ IAS 32 "Financial Instruments: Presentation" $-Off$ setting Financial Assets and Financial Liabilities

The amendment clarifies the meaning of "currently has a legally enforceable right to set-off" in IAS 32. The amendment is effective for annual periods beginning on or after January 1, 2014.

(o)IFRIC 20 "Stripping Costs in the Production Phase of a Surface Mine"

This Interpretation applies to waste removal (stripping) costs incurred in surface mining activity, during the production phase of the mine. If the benefit from the stripping activity will be realized in the current period, an entity is required to account for the stripping activity costs as part of the cost of inventory. When the benefit is the improved access to ore, the entity recognizes these costs as a non-current asset ("stripping activity asset"), only if certain criteria are met. The stripping activity asset is accounted for as an addition to, or as an enhancement of, an existing asset. The interpretation is effective for annual periods beginning on or after January 1, 2013.

(p)Improvements to International Financial Reporting Standards (2009-2011 cycle):

IFRS 1 "First-time Adoption of International Financial Reporting Standards"

The amendment clarifies that an entity that has stopped applying IFRS may choose to either: Re-apply IFRS 1, even if the entity applied IFRS 1 in a previous reporting period; or Apply IFRS retrospectively in accordance with IAS 8 (i.e., as if it had never stopped applying IFRS) in order to resume reporting under IFRS. The amendment is effective for annual periods beginning on or after January 1, 2013.

IAS 1 "Presentation of Financial Statements"

The amendment clarifies the difference between voluntary additional comparative information and the minimum required comparative information. Generally, the minimum required comparative period is the previous period. An entity must include comparative information in the related notes to the financial statements when it voluntarily provides comparative information beyond the minimum required comparative period. The additional comparative period does not need to contain a complete set of financial statements. The opening statement of financial position (known as 'the third balance sheet') must be presented when an entity changes its accounting policies (making retrospective restatements or reclassifications) and those changes have a material effect on the statement of financial position. The opening statement would be at the beginning of the preceding period. However, unlike the voluntary comparative information, the related notes are not required to include comparatives as of the date of the third balance sheet. The amendment is effective for annual periods beginning on or after January 1, 2013.

IAS 16 "Property, Plant and Equipment" (Amendment)

The amendment clarifies that major spare parts and servicing equipment that meet the definition of property, plant and equipment is not inventory. The amendment is effective for annual periods beginning on or after January 1, 2013.

IAS 32 "Financial Instruments: Presentation" (Amendment)

The amendment removes existing income tax requirements from IAS 32 and requires entities to apply the requirements in IAS 12 to any income tax arising from distributions to equity holders. The amendment is effective for annual periods beginning on or after January 1, 2013.

IAS 34 "Interim Financial Reporting" (Amendment)

The amendment clarifies the requirements in IAS 34 relating to segment information for total assets and liabilities for each reportable segment to enhance consistency with the requirements in IFRS 8 Operating Segments. Besides, total assets and liabilities for a particular reportable segment need to be disclosed only when the amounts are regularly provided to the chief operating decision maker and there has been a material change in the total amount disclosed in the entity's previous annual financial statements for that reportable segment. The amendment is effective for annual periods beginning on or after January 1, 2013.

(q)IFRS 10 "Consolidated Financial Statements" (Amendment)

The Investment Entities amendments provide an exception to the consolidation requirements in IFRS 10 and require investment entities to measure particular subsidiaries at fair value through profit or loss, rather than consolidate them. The amendments also set out disclosure requirements for investment entities. The amendment is effective for annual periods beginning on or after January 1, 2014.

The abovementioned standards and interpretations issued by IASB and recognized by FSC so that they are applicable for annual periods beginning on or after January 1, 2015. The Company has evaluated the impact of the new standards and interpretations and found that, except for those listed at (i) and (p) which may effect the presentation of financial statements and increse disclosures of consolidated financial statements, all other new standards and interpretations will have no material impact on the Company.

(2) Standards or interpretations issued by IASB but not yet recognized by FSC at the date of issuance of the Group's financial statements are listed below.

(a) IAS 36 "Impairment of Assets" (Amendment)

This amendment relates to the amendment issued in May 2011 and requires entities to disclose the recoverable amount of an asset (including goodwill) or a cash-generating unit when an impairment loss has been recognized or reversed during the period. The amendment also requires detailed disclosure of how the fair value less costs of disposal has been measured when an impairment loss has been recognized or reversed, including valuation techniques used, level of fair value hierarchy of assets and key assumptions used in measurement. The amendment is effective for annual periods beginning on or after January 1, 2014.

(b)IFRIC 21 "Levies"

This interpretation provides guidance on when to recognize a liability for a levy imposed by a government (both for levies that are accounted for in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets and those where the timing and amount of the levy is certain). The interpretation is effective for annual periods beginning on or after January 1, 2014.

(c)IAS 39 "Financial Instruments: Recognition and Measurement" (Amendment)

Under the amendment, there would be no need to discontinue hedge accounting if a hedging derivative was novated, provided certain criteria are met. The interpretation is effective for annual periods beginning on or after January 1, 2014.

(d)IAS 19 "Employee Benefits" (Defined benefit plans: employee contributions)

The amendments apply to contributions from employees or third parties to defined benefit plans. The objective of the amendments is to provide a policy choice for a simplified accounting for contributions that are independent of the number of years of employee service, for example, employee contributions that are calculated according to a fixed percentage of salary. The amendment is effective for annual periods beginning on or after July 1, 2014.

(e)Improvements to International Financial Reporting Standards (2010-2012 cycle):

IFRS 2 "Share-based Payment"

The annual improvements amend the definitions of 'vesting condition' and 'market condition' and add definitions for 'performance condition' and 'service condition' (which were previously part of the definition of 'vesting condition'). The amendment prospectively applies to share-based payment transactions for which the grant date is on or after July 1, 2014.

IFRS 3 "Business Combinations"

The amendments include: (1) deleting the reference to "other applicable IFRSs" in the classification requirements; (2) deleting the reference to "IAS 37 Provisions, Contingent Liabilities and Contingent Assets or other IFRSs as appropriate", other contingent consideration that is not within the scope of IFRS 9 shall be measured at fair value at each reporting date and changes in fair value shall be recognized in profit or loss; (3) amending the classification requirements of IFRS 9 Financial Instruments to clarify that contingent consideration that is a financial asset or financial liability can only be measured at fair value, with changes in fair value being presented in profit or loss depending on the requirements of IFRS 9. The amendments apply prospectively to business combinations for which the acquisition date is on or after July 1, 2014.

IFRS 8 "Operating Segments"

The amendments require an entity to disclose the judgments made by management in applying the aggregation criteria to operating segments. The amendments also clarify that an entity shall only provide reconciliations of the total of the reportable segments' assets to the entity's assets if the segment assets are reported regularly. The amendment is effective for annual periods beginning on or after July 1, 2014.

IFRS 13 "Fair Value Measurement"

The amendment to the Basis for Conclusions of IFRS 13 clarifies that when deleting paragraph B5.4.12 of IFRS 9 Financial Instruments and paragraph AG79 of IAS 39 Financial Instruments: Recognition and Measurement as consequential amendments from IFRS 13 Fair Value Measurement, the IASB did not intend to change the measurement requirements for short-term receivables and payables.

IAS 16 "Property, Plant and Equipment"

The amendment clarifies that when an item of property, plant and equipment is revalued, the accumulated depreciation at the date of revaluation is adjusted to equal the difference between the gross carrying amount and the carrying amount of the asset. The amendment is effective for annual periods beginning on or after July 1, 2014.

IAS 24 "Related Party Disclosures"

The amendment clarifies that an entity providing key management personnel services to the reporting entity or to the parent of the reporting entity is a related party of the reporting entity. The amendment is effective for annual periods beginning on or after July 1, 2014.

IAS 38 "Intangible Assets"

The amendment clarifies that when an intangible asset is revalued, the accumulated amortization at the date of revaluation is adjusted to equal the difference between the gross carrying amount and the carrying amount of the asset. The amendment is effective for annual periods beginning on or after July 1, 2014.

(f)Improvements to International Financial Reporting Standards $(2011-2013$ cycle):

IFRS 1 "First-time Adoption of International Financial Reporting Standards"

The amendment clarifies that an entity, in its first IFRS financial statements, has the choice between applying an existing and currently effective IFRS or applying early a new or revised IFRS that is not yet mandatorily effective, provided that the new or revised IFRS permits early application.

IFRS 3 "Business Combinations"

This amendment clarifies that paragraph 2(a) of IFRS 3 Business Combinations excludes the formation of all types of joint arrangements as defined in IFRS 11 Joint Arrangements from the scope of IFRS 3; and the scope exception only applies to the financial statements of the joint venture or the joint operation itself. The amendment is effective for annual periods beginning on or after July 1, 2014.

IFRS 13 "Fair Value Measurement"

The amendment clarifies that paragraph 52 of IFRS 13 includes a scope exception for measuring the fair value of a group of financial assets and financial liabilities on a net basis. The objective of this amendment is to clarify that this portfolio exception applies to all contracts within the scope of IAS 39 Financial Instruments: Recognition and Measurement or IFRS 9 Financial Instruments, regardless of whether they meet the definitions of financial assets or financial liabilities as defined in IAS 32 Financial Instruments: Presentation. The amendment is effective for annual periods beginning on or after July 1, 2014.

IAS 40 "Investment Property"

The amendment clarifies the interrelationship of IFRS 3 and IAS 40 when classifying property as investment property or owner-occupied property; in determining whether a specific transaction meets the definition of both a business combination as defined in IFRS 3 Business Combinations and investment property as defined in IAS 40 Investment Property, separate application of both standards independently of each other is required. The amendment is effective for annual periods beginning on or after July 1, 2014.

(g)IFRS 14 "Regulatory Deferral Accounts"

IFRS 14 permits first-time adopters to continue to recognize amounts related to rate regulation in accordance with their previous GAAP requirements when they adopt IFRS. However, to enhance comparability with entities that already apply IFRS and do not recognize such amounts, the Standard requires that the effect of rate regulation must be presented separately from other items. IFRS 14 is effective for annual periods beginning on or after January 1, 2016.

(h)IFRS 11 "Joint Arrangements" (Accounting for Acquisitions of Interests in Joint Operations)

The amendments provide new guidance on how to account for the acquisition of an interest in a joint operation that constitutes a business. The amendments require the entity to apply all of the principles on business combinations accounting in IFRS 3 "Business" Combinations", and other IFRS (that do not conflict with the guidance in IFRS 11), to the extent of its share in a joint operation acquired. The amendment also requires certain disclosure. The amendment is effective for annual periods beginning on or after January 1, 2016.

(i) IAS 16 "Property, Plant and Equipment and IAS 38 "Intangible Assets" $-$ Clarification of Acceptable Methods of Depreciation and Amortization

The amendment clarified that the use of revenue-based methods to calculate depreciation of an asset is not appropriate because revenue generated by an activity that includes the use of an asset generally reflects factors other than the consumption of the economic benefits embodied in the asset, such as selling activities and change in sales volumes or prices. The amendment also clarified that revenue is generally presumed to be an inappropriate basis for measuring the consumption of the economic benefits embodied in an intangible asset. This presumption, however, can be rebutted in certain limited circumstances. The amendment is effective for annual periods beginning on or after January 1, 2016.

(i) IFRS 15 "Revenue from Contracts with Customers"

The core principle of the new Standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The new Standard will also result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively and improve guidance for multiple-element arrangements. The Standard is effective for annual periods beginning on or after January 1, 2017.

(k) IAS 16 "Property, Plant and Equipment and IAS 41 "Agriculture" $-$ Agriculture: Bearer Plants

The IASB decided that bearer plants should be accounted for in the same way as property, plant and equipment in IAS 16 Property, Plant and Equipment, because their operation is similar to that of manufacturing. Consequently, the amendments include them within the scope of IAS 16, and the produce growing on bearer plants will remain within the scope of IAS 41. The amendment is effective for annual periods beginning on or after January 1, 2016.

(1) IFRS 9" Financial Instruments"

The IASB has issued the final version of IFRS 9, which combines classification and measurement, the expected credit loss impairment model and hedge accounting. The standard will replace IAS 39 Financial Instruments: Recognition and Measurement and all previous versions of IFRS 9 Financial Instruments (which include standards issued on classification and measurement of financial assets and liabilities and hedge accounting).

Classification and measurement: Financial assets are measured at amortized cost, fair value through profit or loss, or fair value through other comprehensive income, based on both the entity's business model for managing the financial assets and the financial asset's contractual cash flow characteristics. Financial liabilities are measured at amortized cost or fair value through profit or loss. Furthermore there is requirement that 'own credit risk' adjustments are not recognized in profit or loss.

Impairment: Expected credit loss model is used to evaluate impairment. Entities are required to recognize either 12-month or lifetime expected credit losses, depending on whether there has been a significant increase in credit risk since initial recognition.

Hedge accounting: Hedge accounting is more closely aligned with risk management activities and hedge effectiveness is measured based on the hedge ratio.

The new standard is effective for annual periods beginning on or after January 1, 2018.

(m)IAS 27"Separate Financial Statements" — Equity Method in Separate Financial Statements

The IASB restored the option to use the equity method under IAS 28 for an entity to account for investments in subsidiaries and associates in the entity's separate financial statements. In 2003, the equity method was removed from the options. This amendment removes the only difference between the separate financial statements prepared in accordance with IFRS and those prepared in accordance with the local regulations in certain jurisdictions.

The amendment is effective for annual periods beginning on or after January 1, 2016.

(n)IFRS 10"Consolidated Financial Statements" and IAS 28"Investments in Associates and Joint Ventures" - Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures

The amendments address the inconsistency between the requirements in IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures, in dealing with the loss of control of a subsidiary that is contributed to an associate or a joint venture. IAS 28 restricts gains and losses arising from contributions of non-monetary assets to an associate or a joint venture to the extent of the interest attributable to the other equity holders in the associate or joint ventures. IFRS 10 requires full profit or loss recognition on the loss of control of the subsidiary. IAS 28 was amended so that the gain or loss resulting from the sale or contribution of assets that constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized in full. IFRS 10 was also amended so that the gains or loss resulting from the sale or contribution of a subsidiary that does not constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized only to the extent of the unrelated investors' interests in the associate or joint venture. The amendment is effective for annual periods beginning on or after January 1, 2016.

(o)Improvements to International Financial Reporting Standards (2012-2014 cycle):

IFRS 5 "Non-current Assets Held for Sale and Discontinued Operations"

The amendment clarifies that a change of disposal method of assets (or disposal groups) from disposal through sale or through distribution to owners (or vice versa) should not be considered to be a new plan of disposal, rather it is a continuation of the original plan. The amendment also requires identical accounting treatment for an asset (or disposal group) that ceases to be classified as held for sale or as held for distribution to owners. The amendment is effective for annual periods beginning on or after January 1, 2016.

IFRS 7 "Financial Instruments: Disclosures"

The amendment clarifies that a servicing contract that includes a fee can constitute continuing involvement in a financial asset and therefore the disclosures for any continuing involvement in a transferred asset that is derecognized in its entirety under IFRS 7 Financial Instruments: Disclosures is required. The amendment also clarifies that whether the IFRS 7 disclosure related to the offsetting of financial assets and financial liabilities are required to be included in the condensed interim financial report would depend on the requirements under IAS 34 Interim Financial Reporting. The amendment is effective for annual periods beginning on or after January 1, 2016.

IAS 19 "Employee Benefits"

The amendment clarifies the requirement under IAS 19.83, that market depth of high quality corporate bonds is assessed based on the currency in which the obligation is denominated, rather than the country where the obligation is located. The amendment is effective for annual periods beginning on or after January 1, 2016.

IAS 34 "Interim Financial Reporting"

The amendment clarifies what is meant by "elsewhere in the interim financial report" under IAS 34; the amendment states that the required interim disclosures must either be in the interim financial statements or incorporated by cross-reference between the interim financial statements and wherever they are included within the greater interim financial report. The other information within the interim financial report must be available to users on the same terms as the interim financial statements and at the same time. The amendment is effective for annual periods beginning on or after January 1, 2016.

$(p)$ IAS 1 "Presentation of Financial Statements" (Amendment):

The amendments contain (1) clarifying that an entity must not reduce the understandability of its financial statements by obscuring material information with immaterial information or by aggregating material items that have different natures or functions. The amendments reemphasize that, when a standard requires a specific disclosure, the information must be assessed to determine whether it is material and, consequently, whether presentation or disclosure of that information is warranted, (2) clarifying that specific line items in the statement(s) of profit or loss and OCI and the statement of financial position may be disaggregated, and how an entity shall present additional subtotals, (3) clarifying that entities have flexibility as to the order in which they present the notes to financial statements, but also emphasize that understandability and comparability should be considered by an entity when deciding on that order, (4) removing the examples of the income taxes accounting policy and the foreign currency accounting policy, as these were considered unhelpful in illustrating what significant accounting policies could be, and (5) clarifying that the share of OCI of associates and joint ventures accounted for using the equity method must be presented in aggregate as a single line item, classified between those items that will or will not be subsequently reclassified to profit or loss. The amendment is effective for annual periods beginning on or after January 1, 2016.

(q)IFRS 10"Consolidated Financial Statements", IFRS 12 "Disclosure of Interests in Other Entities", and IAS 28"Investments in Associates and Joint Ventures" - Investment Entities: Applying the Consolidation Exception

The amendments contain (1) clarifying that the exemption from presenting consolidated financial statements applies to a parent entity that is a subsidiary of an investment entity when the investment entity measures all of its subsidiary at fair value, (2) clarifying that only a subsidiary that is not an investment entity itself and provides support services to the investment entity is consolidated when all other subsidiaries of an investment entity are measured at fair value, and (3) allowing the investor, when applying the equity method, to retain the fair value measurement applied by the investment entity associate or joint venture to its interests in subsidiaries. The amendment is effective for annual periods beginning on or after January 1, 2016.

The abovementioned standards and interpretations issued by IASB have not yet recognized by FSC at the date of issuance of the Company's financial statements, the local effective dates are to be determined by FSC. As the Company is still currently determining the potential impact of the standards and interpretations listed under $(a)$ , $(e)$ , $(f)$ and $(o)$ , it is not practicable to estimate their impact on the Company at this point in time. All other standards and interpretations have no material impact on the Company.

$4.$ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Statement of compliance

The parent-company-only financial statements of the Company for the years ended December 31, 2014 and 2013 were prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers ("the Regulations").

(2) Basis of preparation

The Company prepared parent-company-only financial statements in accordance with Article 21 of the Regulations, which provided that the profit or loss and other comprehensive income for the period presented in the parent-company-only financial statements shall be the same as the profit or loss and other comprehensive income attributable to stockholders of the parent presented in the consolidated financial statements for the period, and the total equity presented in the parent-company-only financial statements shall be the same as the equity attributable to the parent company presented in the consolidated financial statements. Therefore, the Company accounted for its investments in subsidiaries using equity method and, accordingly, made necessary adjustments.

The parent-company-only financial statements have been prepared on a historical cost basis, except for financial instruments that have been measured at fair value. The consolidated financial statements are expressed in thousands of New Taiwan Dollars ("NT\$") unless otherwise stated.

(3) Foreign currency transactions

The Company's parent-company-only financial statements are presented in its functional currency, New Taiwan Dollars (NTD). Items included in the parent-company-only financial statements are measured using that functional currency.

Transactions in foreign currencies are initially recorded by the Company at functional currency rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency closing rate of exchange ruling at the reporting date. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions.

All exchange differences arising on the settlement of monetary items or on translating monetary items are taken to profit or loss in the period in which they arise except for the following:

(a) Exchange differences arising from foreign currency borrowings for an acquisition of a qualifying asset to the extent that they are regarded as an adjustment to interest costs are included in the borrowing costs that are eligible for capitalization.
(b)Foreign currency items within the scope of IAS 39 Financial Instruments: Recognition and Measurement are accounted for based on the accounting policy for financial instruments.
(c) Exchange differences arising on a monetary item that forms part of a reporting entity's net investment in a foreign operation is recognized initially in other comprehensive income and reclassified from equity to profit or loss on disposal of the net investment.

When a gain or loss on a non-monetary item is recognized in other comprehensive income, any exchange component of that gain or loss is recognized in other comprehensive income. When a gain or loss on a non-monetary item is recognized in profit or loss, any exchange component of that gain or loss is recognized in profit or loss.

(4) Translation of financial statements in foreign currency

The assets and liabilities of foreign operations are translated into NTD at the closing rate of exchange prevailing at the reporting date and the income and expenses are translated at an average exchange rate for the period. The exchange differences arising on the translation are recognized in other comprehensive income. On disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation, recognized in other comprehensive income and accumulated in the separate component of equity, is reclassified from equity to profit or loss when the gain or loss on disposal is recognized. The following are accounted for as disposals even if an interest in the foreign operation is retained by the Company: the loss of control over a foreign operation, the loss of significant influence over a foreign operation, or the loss of joint control over a foreign operation.

On partial disposal of a subsidiary that includes a foreign operation that does not result in a loss of control, the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income is re-attributed to the non-controlling interests in that foreign operation. In partial disposal of an associate or jointly controlled entity that includes a foreign operation that does not result in a loss of significant influence or joint control, only the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income is reclassified to profit or loss.

Any goodwill and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and expressed in its functional currency.

(5) Current and non-current distinction

An asset is classified as current when:

(a) The Company expects to realize the asset, or intends to sell or consume it, in its normal operating cycle
(b) The Company holds the asset primarily for the purpose of trading
(c) The Company expects to realize the asset within twelve months after the reporting period
(d) The asset is cash or cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current when:

(a) The Company expects to settle the liability in its normal operating cycle
(b) The Company holds the liability primarily for the purpose of trading
(c) The liability is due to be settled within twelve months after the reporting period
(d) The Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. 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.

All other liabilities are classified as non-current.

(6) Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value (include fixed-term deposits that have matures of 3 months from the date of acquisition).

(7) Financial instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument.

Financial assets and financial liabilities within the scope of IAS 39 Financial Instruments: Recognition and Measurement are recognized initially at fair value plus or minus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs.

A. Financial assets

The Company accounts for regular way purchase or sales of financial assets on the trade date.

Financial assets of the Company are classified as financial assets at fair value through profit or loss, available-for-sale financial assets and loans and receivables. The Compony determines the classification of its financial assets at initial recognition.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss include financial assets held for trading and financial assets designated upon initial recognition at fair value through profit or loss. A financial asset is classified as held for trading if:

i. it is acquired or incurred principally for the purpose of selling or repurchasing it in the near term;
ii. on initial recognition it is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking; or
iii. it is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument).

If a contract contains one or more embedded derivatives, the entire hybrid (combined) contract may be designated as a financial asset at fair value through profit or loss; or a financial asset may be designated as at fair value through profit or loss when doing so results in more relevant information, because either:

i. it eliminates or significantly reduces a measurement or recognition inconsistency; or
ii. a group of financial assets, financial liabilities or both is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, and information about the group is provided internally on that basis to the key management personnel.

Financial assets at fair value through profit or loss are measured at fair value with changes in fair value recognized in profit or loss. Dividends or interests on financial assets at fair value through profit or loss are recognized in profit or loss (including those received during the period of initial investment).

If financial assets do not have quoted prices in an active market and their far value cannot be reliably measured, then they are classified as financial assets measured at cost on balance sheet and carried at cost net of accumulated impairment losses, if any, as at the reporting date.

Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are designated as available-for-sale or those not classified as financial assets at fair value through profit or loss, held-to-maturity investments, or loans and receivables.

Foreign exchange gains and losses and interest calculated using the effective interest method relating to monetary available-for-sale financial assets, or dividends on an available-for-sale equity instrument, are recognized in profit or loss. Subsequent measurement of available-for-sale financial assets at fair value is recognized in equity until the investment is derecognized, at which time the cumulative gain or loss is reclassified to profit or loss. .

If equity instrument investments do not have quoted prices in an active market and their far value cannot be reliably measured, then they are classified as financial assets measured at cost on balance sheet and carried at cost net of accumulated impairment losses, if any, as at the reporting date.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market other than those that the Group upon initial recognition designates as available for sale, classified as at fair value through profit or loss, or those for which the holder may not recover substantially all of its initial investment.

Loans and receivables are separately presented on the balance sheet as receivables or bond investments for which no active market exists. After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate method, less impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fee or transaction costs. The effective interest method amortization is recognized in profit or loss.

Impairment of financial assets

The Company assesses at each reporting date whether there is any objective evidence that a financial asset other than the financial assets at fair value through profit or loss is impaired. A financial asset is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more loss events that has occurred after the initial recognition of the asset and that loss event has an impact on the estimated future cash flows of the financial asset. The carrying amount of the financial asset is reduced through the use of an allowance account and the amount of the loss is recognized in profit or loss.

A significant or prolonged decline in the fair value of an available-for-sale equity instrument below its cost is considered a loss event.

Other loss events include:

(a) significant financial difficulty of the issuer or obligor; or
(b) breach of contract, such as a default or delinquency in interest or principal payments; or
(c) it becoming probable that the borrower will enter bankruptcy or other financial reorganisation; or
(d) the disappearance of an active market for that financial asset due to financial difficulties of the issuer.

For held-to-maturity financial assets and loans and receivables measured at amortized cost, the Company first assesses individually whether objective evidence of impairment exists individually for financial asset that are individually significant, or collectively for financial assets that are not individually significant. If the Company determines that no objective evidence of impairment exits for an individually assessed financial asset, whether significant or not, it includes the asset in a Company of financial assets with similar credit risk characteristics and collectively assesses them for impairment. If there is objective evidence that an impairment loss has been incurred, the amount of the loss is measured as the difference between the assets carrying amount and the present value of estimated future cash flows. The present value of the estimated future cash flows is discounted at the financial assets original effective interest rate. If a loan has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate. Interest income is accrued based on the reduced carrying amount of the asset, using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss.

Receivables together with the associated allowance are written off when there is no realistic prospect of future recovery. If, in a subsequent year, the amount of the estimated impairment loss increases or decreases because of an event occurring after the impairment was recognized, the previously recognized impairment loss is increased or reduced by adjusting the allowance account. If a write-off is later recovered, the recovery is credited to profit or loss.

In the case of equity investments classified as available-for-sale, where there is evidence of impairment, the amount recorded for impairment is the cumulative loss measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that investment previously recognized in profit or loss. The impairment amount is reclassified from equity to profit or loss. Impairment losses on equity investments are not reversed through profit or loss. Increases in their fair value after impairment are recognized directly in equity.

In the case of debt instruments classified as available-for-sale, the amount recorded for impairment is the cumulative loss measured as the difference between the amortized cost and the current fair value, less any impairment loss on that investment previously recognized in profit or loss. Future interest income is based on the reduced carrying amount of assets and calculated using the effective interest rate which is the discount rate for measuring impairment loss. Interest income is recognized in profit or loss. If, in a subsequent year, the fair value of a debt instrument increases and the increase can be objectively related to an event occurring after the impairment loss was recognized in profit or loss, the impairment loss is reversed through profit or loss.

Derecognition of financial assets

A financial asset is derecognized when:

(a) The rights to receive cash flows from the asset have expired
(b) The Company has transferred the asset and substantially all the risks and rewards of the asset have been transferred
(c) The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

On derecognition of a financial asset in its entirety, the difference between the carrying amount and the consideration received or receivable including any cumulative gain or loss that had been recognized in other comprehensive income is recognized in profit or loss.

B. Financial liabilities and equity instruments

Classification between liabilities or equity

The Company classifies the instrument issued as a financial liability or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract of the Company that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs.

Financial liabilities

Financial liabilities within the scope of IAS 39 "Financial Instruments: Recognition and Measurement" are classified as financial liabilities at fair value through profit or loss or financial liabilities measured at amortized cost upon initial recognition.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.

A financial liability is classified as held for trading if:

(a) it is acquired principally for the purpose of selling it in short term;
(b) on initial recognition it is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking; or
(c) it is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument).

If a contract contains one or more embedded derivatives, the entire hybrid (combined) contract may be designated as a financial liability at fair value through profit or loss; or a financial liability may be designated upon initial recognition as at fair value through profit or loss when doing so results in more relevant information, because either:

(a) it eliminates or significantly reduces measurement or recognition inconsistency; or
(b) a group of financial assets, financial liabilities or both is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, and information about the group is provided internally on that basis to the key management personnel.

Gains or losses on the subsequent measurement of liabilities at fair value through profit or loss, including interest, are recognized in profit or loss.

If financial liabilities at fair value through profit or loss do not have quoted prices in an active market and their far value cannot be reliably measured, they are classified as financial liabilities measured at cost on balance sheet and carried at cost as of the reporting date.

Financial liabilities at amortized cost

Financial liabilities measured at amortized cost include payables and borrowings that are subsequently measured using the effective interest rate method after initial recognition. Relevant gains or losses and amortization amounts are recognized in profit or loss when the liabilities are derecognized and amortized through the effective interest rate method.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or transaction costs.

Derecognition of financial liabilities

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified (whether or not attributable to the financial difficulty of the debtor), such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

C. Fair value of financial instruments

The fair value of financial instruments that are traded in active markets at each reporting date is determined by reference to quoted market prices, without any deduction for transaction costs.

For financial instruments not traded in an active market, the fair value is determined using appropriate valuation techniques. Such techniques may include using recent arm's length market transactions; reference to the current fair value of another instrument that is substantially the same; a discounted cash flow analysis or other valuation models.

(8) Inventories

Inventories are valued at lower of cost or net realizable value item by item.

Costs incurred in bringing each inventory to its present location and condition are accounted for as follows:

Raw materials - At actual purchase cost, using weighted average method

Finished goods and work in progress - Including cost of direct materials and labor and a proportion of manufacturing overheads based on normal operating capacity, using weighted average method.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

(9) Investments accounted for using the equity method

The Company accounted for its investments in subsidiaries using equity method and made necessary adjustments in accordance with Article 21 of the Regulations. Such adjustments were made after the Company considered the different accounting treatments to account for its investments in subsidiaries in the consolidated financial statements under IAS 27 "Consolidated and Separate Financial Statements" and the different IFRSs adopted from different reporting entity's perspectives, and the Company recorded such adjustments by crediting or debiting to investments accounted for under the equity method, share of profit or loss of subsidiaries, associates and joint ventures and share of other comprehensive income of subsidiaries, associates and joint ventures.

The Company's investment in its associate is accounted for using the equity method other than those that meet the criteria to be classified as held for sale. An associate is an entity over which the Company has significant influence.

Under the equity method, the investment in the associate is carried in the balance sheet at cost and adjusted thereafter for the post-acquisition change in the Company's share of net assets of the associate. After the interest in the associate is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate. Unrealized gains and losses resulting from transactions between the Company and the associate are eliminated to the extent of the Company's related interest in the associate.

When changes in the net assets of an associate occur and not those that are recognized in profit or loss or other comprehensive income and do not affects the Company's percentage of ownership interests in the associate, the Company recognizes such changes in equity based on its percentage of ownership interests. The resulting capital surplus recognized will be reclassified to profit or loss at the time of disposing the associate on a prorate basis.

When the associate issues new stocks, and the Company's interest in an associate is reduced or increased as the Company fails to acquire shares newly issued in the associate proportionately to its original ownership interest, the increase or decrease in the interest in the associate is recognized in Additional Paid in Capital and Investment in associate. When the interest in the associate is reduced, the cumulative amounts previously recognized in other comprehensive income are reclassified to profit or loss or other appropriate items. The aforementioned capital surplus recognized is reclassified to profit or loss on a pro rata basis when the Company disposes the associate.

The financial statements of the associate are prepared for the same reporting period as the Company. Where necessary, adjustments are made to bring the accounting policies in line with those of the Company.

The Company determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired in accordance with IAS 39 Financial Instruments: Recognition and Measurement. If this is the case the Company calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognizes the amount in the 'share of profit or loss of an associate' in the statement of comprehensive income in accordance with IAS 36 Impairment of Assets. In determining the value in use of the investment, the Company estimates:

(a) Its share of the present value of the estimated future cash flows expected to be generated by the associate, including the cash flows form the operations of the associate and the proceeds on the ultimate disposal of the investment; or
(b) The present value of the estimated future cash flows expected to arise from dividends to be received from the investment and from its ultimate disposal.

Because goodwill that forms part of the carrying amount of an investment in an associate is not separately recognized, it is not tested for impairment separately by applying the requirements for impairment testing goodwill in IAS 36 Impairment of Assets.

Upon loss of significant influence over the associate, the Company measures and recognizes any retaining investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the retaining investment and proceeds from disposal is recognized in profit or loss.

The Company recognizes its interest in the jointly controlled entities using the equity method other than those that meet the criteria to be classified as held for sale. A jointly controlled entity is a joint venture that involves the establishment of a corporation, partnership or other entity.

(10) Property, plant and equipment

Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of dismantling and removing the item and restoring the site on which it is located and borrowing costs for construction in progress if the recognition criteria are met. 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 is depreciated separately. When significant parts of property, plant and equipment are required to be replaced in intervals, the Group recognized such parts as individual assets with specific useful lives and depreciation, respectively. The carrying amount of those parts that are replaced is derecognized in accordance with the derecognition provisions of IAS 16 "Property, plant and equipment". When a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in profit or loss as incurred.

Depreciation is calculated on a straight-line basis over the estimated economic lives of the following assets:

Buildings	10 to 25 years
Machinery	5 to 6 years
Transportation	5 years
Office equipment	3 to 5 years
Other equipment	3 to 25 years

An item of property, plant and equipment or any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset is recognized in profit or loss.

The property, plant and equipment's residual values, useful lives and methods of depreciation are reviewed at each financial year. If the expected values differ from the estimates, the differences are recorded as a change in accounting estimate.

$(11)$ Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is its fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses, if any. Internally generated intangible assets, not meeting the recognition criteria, are not capitalized and expenditure is reflected in profit or loss for the year in which the expenditure is incurred.

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each financial year. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates.

Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the cash-generating unit (CGU) level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

Gains or losses arising from derecognition of an intangible asset are recognized in profit or loss.

The Company's accounting policies for intangible assets are as follows:

	Cost of Computer Software
Useful economic life	1 to 5 years
Amortization method	Straight-line method during the contract term
Internally generated or acquired externally Acquired externally

(12) Impairment of non-financial assets

The Company assesses at the end of each reporting period whether there is any indication that an asset in the scope of IAS 36 "Impairment of Assets" may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company would conduct impairment tests at individual or CGU level. Where the carrying amount of an

asset or CGU exceeds its recoverable amount, the asset is considered impaired. An asset's recoverable amount is the higher of an asset's net fair value or its value in use.

For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Company estimates the recoverable amount of the asset or CGU. A previously recognized impairment loss is reversed only if there has been an increase in the estimated service potential of an asset which in turn increases the recoverable amount. However, the reversal is limited so that the carrying amount of the asset does not exceed the carrying amount that would have been determined, net of depreciation or amortization, had no impairment loss been recognized for the asset in prior years.

Impairment loss or reversals of continuing operations are recognized in profit or loss.

(13) Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable. Conditions and methods for the recognition of various types of revenue are listed below:

Sale of goods

Revenue from the sale of goods is recognized when all the following conditions have been satisfied: significant risks and rewards of ownership of the goods have passed to the buyer; neither continuing managerial involvement nor effective control over the goods sold have been retained; the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; and the costs incurred in respect of the transaction can be measured reliably.

Customer Loyalty Programmes

When the fair value of award credits is measured based on the value of the awards for which they could be redeemed, the amount of discounts or incentives otherwise granted to customers not participating in the award credit scheme is to be taken into account.

Interest income

Interest incomes from financial assets at amortized costs (including loans and receivables and held-to-maturity financial assets) and available-for-sale financial assets are estimated using the effective interest method and recognized in profit or loss.

Dividend income

Dividend incomes are recognized only when the Group has the right to receive the dividends.

(14) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective assets. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

(15) Post-employment benefits

All regular employees of the Company are entitled to a pension plan that is managed by an independently administered pension fund committee. Fund assets are deposited under the committee's name in the specific bank account and hence, not associated with the Company. Therefore, fund assets are not included in the Group's consolidated financial statements. Pension benefits for employees of the overseas subsidiaries and the branches are provided in accordance with the respective local regulations.

For the defined contribution plan, the Company will make a monthly contribution of no less than 6% of the monthly wages of the employees subject to the plan. The Company recognizes expenses for the defined contribution plan in the period in which the contribution becomes due.

Post-employment benefit plan that is classified as a defined benefit plan uses the Projected Unit Credit Method to measure its obligations and costs based on actuarial assumptions. The Company recognizes all actuarial gains and losses in the period in which they occur in other comprehensive income. Actuarial gains and losses recognized in other comprehensive income are recognized immediately in retained earnings.

$(16)$ Income tax

Income tax expense (benefit) is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax.

Current income tax

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Current income tax relating to items recognized in other comprehensive income or directly in equity is recognized in other comprehensive income or equity and not in profit or loss.

The 10% income tax for undistributed earnings of the Company is recognized as income tax expense in the subsequent year when the distribution proposal is approved by the Shareholders' meeting.

Deferred income tax

Deferred income tax is a temporary difference between the tax bases of assets and liabilities and their carrying amounts in balance sheet at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences, except:

(a) Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit (loss);
(b) In respect of taxable temporary differences associated with investments in subsidiaries, and associates and interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences, any unused tax losses and carry forward of unused tax credits to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized, except:

(a) Where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or
(b) In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will be reversed in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the reporting date. The measurement of deferred tax assets and liabilities reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly in equity. Deferred tax assets are reassessed and recognized at each reporting date.

Deferred tax assets and liabilities are offset, if a legally enforceable right exists to set off current income tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS 5.

The preparation of the Company's consolidated financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that would have a significant risk for a material adjustment to the carrying amounts of assets and liabilities within the next fiscal year are discussed below.

(1) Post-employment benefits

The cost of post-employment benefit pension plan and the present value of the defined benefit obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions, including the determination of the discount rate, future salary increases, mortality rates and future pension increases. The assumptions used for measuring pension cost and defined benefit obligation are disclosed in Note 6.

$(2)$ Income tax

Uncertainties exist with respect to the interpretation of complex tax regulations and the amount and timing of future taxable income. Given the wide range of international business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax benefit and expense already recorded. The Company establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective countries in which it operates. The amount of such provision is based on various factors, such as past experience in tax audit and different interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective company's domicile.

Deferred tax assets are recognized for all carryforward of unused tax losses and unused tax credits and deductible temporary differences to the extent that it is probable that taxable profit will be available or there are sufficient taxable temporary differences against which the unused tax losses, unused tax credits or deductible temporary differences can be utilized. The amount of deferred tax assets determined to be recognized is based upon the likely timing and the level of future taxable profits and taxable temporary differences together with future tax planning strategies. As of December 31, 2014, the un-recognized portion of the Company's defferred tax assets were disclosed in Note 6.

CONTENTS OF SIGNIFICANT ACCOUNTS 6.

(1) Cash and cash equivalents

	As of December 31,
	2014	2013
Cash and petty cash	\$200	\$200
Checking and saving	2,066,693	1,512,224
Time deposit	8,015,411	6,585,411
Total	\$10,082,304	\$8,097,835

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

	As of December 31,
	2014	2013
Held for trading:
Money market fund	\$4,980,352	\$4,980,352
Valuation adjustments	101,226	73,439
Total	\$5,081,578	\$5,053,791

No financial asset at fair value through profit or loss was pledged as collateral.

(3) Available-for-sale financial assets

	As of December 31,
	2014	2013
Stocks	\$15,675	\$42,604
Valuation adjustments	24,694	15,111
Total	\$40,369	\$57,715

No available-for-sale financial asset was pledged as collateral.

(4) Bond investments with no active market

	As of December 31,
	2014	2013
Time deposits	\$420,000	\$420,000
Current	\$420,000	\$420,000

There was no bond investments with no active market pledged as collateral.

(5) Notes receivable

	As of December 31,
	2014	2013
Notes receivable $-$ from operations	\$4.358	\$69,383
Less: allowance for doubtful accounts	-
Net	\$4,358	\$69,383

No notes receivable was pledged by the Company as collateral.

(6) Accounts receivable and accounts receivable - related parties, net

A. Accounts receivable, net

	As of December 31,
	2014	2013
Accounts receivable, gross	\$2,468,239	\$2,506,455
Less: allowance for doubtful accounts	(64, 570)	(59, 152)
Net of allowances	2.403,669	2,447,303

Accounts receivable - related parties,	1,008	29,377
gross
Less: allowance for doubtful accounts	-	$\blacksquare$
Net of allowances	1,008	29,377
Total accounts receivable, net	\$2,404,677	\$2,476,680

B. The Company entered into factoring agreements with banks. Accounts receivables from selected customers are transferred to banks without recourse. Details of the agreed credit limits and accounts receivables transferred as of December 31, 2014 and 2013 were as follows:

		Accounts receivable	Advance		Credit
	Financial Institution	de-recognized	received	Collateral	Limit
12/31/2014	Mega International	\$509,292	\$153,968	None	Note
	Commercial Bank -
	LanYa Branch
12/31/2013	Mega International	375,933	300	None	Note
	Commercial Bank -
	LanYa Branch

Note: The credit limits were US\$ 30,000 thousand as of December 31, 2014 and 2013.

C. The collection term of accounts receivables are generally on 60 to 120 day after monthly closing. The movement schedule of the impairment provision for accounts receivable, including related parties, was presented as below. (Please also refer to Note 12 for credit risk disclosure)

	Impaired	Impaired
	Individually	Collectively	Total
As of January 1, 2014	$S-$	\$59,152	\$59,152
Provision (reversal)		5,418	5,418
Effect of exchange rate changes
As of December 31, 2014	\$-	\$64,570	\$64,570
As of January 1, 2013	\$-	\$72,805	\$72,805
Provision (reversal)		(13, 653)	(13, 653)
Effect of exchange rate changes
As of December 31, 2013	S-	\$59,152	\$59,152

	Neither past
	due nor	Less than	61 to 90	91 to 120	Longer than
	impaired	61 days	days	davs	$120$ days	Total
12/31/2014	\$2,337,761	\$66,916	\$-	S-	\$-	\$2,404,677
12/31/2013	2,421,879	54,801	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	$\overline{\phantom{0}}$	2,476,680

Aging analysis for the net accounts receivable, including related parties, were as follows.

(7) Inventory

A. Details of inventory:

	As of December 31,
	2014	2013
Raw material	\$396,384	\$335,320
Supplies	36,841	33,262
Work in process	521,032	499,393
Finished goods	706,718	477,912
Merchandises	27,730	6,764
Total	1,688,705	1,352,651
Less: allowance for inventory
valuation losses	(366, 881)	(172, 766)
Net	\$1,321,824	\$1,179,885

B. For the years ended December 31, 2014 and 2013, the Company recognized NT\$13,017,150 thousand and NT\$11,988,400 thousand under the caption of costs of sale, respectively. The following items were also included in cost.

	For the year ended December 31,
Item	2014	2013
Loss from (Gains on recovery of) inventory market decline	\$194,115	\$(1,966)
Loss (gain) from physical	34,935	(4,682)
Loss in inventory write-off obselencense	45,640	73,579
Total	\$274,690	\$66,931

The Company recognized gains on recovery of inventory market decline because some of the inventories previously provided with market loss or obsolescence were disposed.

C. The inventories were not pledged.

(8) Investments Accounted For Under the Equity Method

	As of December 31,
	2014		2013
		Percentage		Percentage
		of		of
Investee companies	Amount	Ownership	Amount	Ownership
Investments in subsidiaries:
KINSUS CORP. (USA)		\$29,528 100.00%		\$25,138 100.00%
KINSUS HOLDING (SAMOA) LIMITED		3,458,036 100.00%	3,616,524	100.00%
KINSUS INVESTMENT CO., LTD.	521,940	100.00%	416,958	100.00%
Total	\$4,009,504		\$4,058,620

(9) Property, plant and equipment

							Construction in progress
							and equipment awaiting
				Office		Other	inspection (including
	Land	Buildings	Machinery	Equipment	Transportation	Equipment	prepaid equipment)	Total
Cost:
As of 1/1/2014	\$1,237,179	\$2,464,872	\$8,284,351	\$8,630	\$1,525	\$2,098,092	\$1,243,287	\$15,337,936
Addition	8,939		55,093	6,196	830	44,526	3,135,070	3,250,654
Disposals		(2,500)	(78, 591)			(9, 897)		(90, 988)
Effect of EXrate
Reclassification	120,308	9,708	1,416,083	8,800	380	61,554	(1,616,833)
As of 12/31/2014	\$1,366,426	\$2,472,080	\$9,676,936	\$23,626	\$2,735	\$2,194,275	\$2,761,524	\$18,497,602

As of 1/1/2013	\$552,539	\$1,847,325	\$9,711,101	\$7,282	$S-$	\$2,238,307	\$654,238	\$15,010,792
Addition		7,851	(1, 811)	5,357	1,525	13,036	2,928,780	2,954,738
Disposals	$\blacksquare$	(5, 424)	(2,400,888)	(4,009)		(217, 273)		(2,627,594)
Effect of EXrate					$\bullet$
Reclassification	684,640	615,120	975,949			64,022	(2, 339, 731)
As of 12/31/2013	\$1,237,179	\$2,464,872	\$8,284,351	\$8,630	\$1,525	\$2,098,092	\$1,243,287	\$15,337,936

Depreciation and

impairment:
As of 1/1/2014	$S-$	\$644,443	\$4,468,329	\$3,000	\$237	\$1,200,556	$S-$	\$6,316,565
Depreciation		122,841	1,529,876	4,992	486	253,448		1,911,643
Impairment loss
Disposal		(1,269)	(72, 558)			(9, 897)		(83, 724)
Effect of EXrate
Reclassification
As of 12/31/2014	$$-$	\$766,015	\$5,925,647	\$7,992	\$723	\$1,444,107	\$-	\$8,144,484

As of 1/1/2013	$S-$	\$541,252	\$5,359,043	\$4,105	$S-$	\$1,169,360	$$-$	\$7,073,760
Depreciation		108,491	1,508,057	2,722	237	247,581		1,867,088
Impairme loss
Disposal		(5,300)	(2,398,771)	(3,827)		(216, 385)		(2,624,283)
Effect of EXrate
Reclassification
As of 12/31/2013	\$-	\$644,443	\$4,468,329	\$3,000	\$237	\$1,200,556	$S-$	\$6,316,565

Net carrying amount:
As of 12/31/2014	\$1,366,426	\$1,706,065	\$3,751,289	\$15,634	\$2,012	\$750,168	\$2,761,524	\$10,353,118
As of 12/31/2013	\$1,237,179	\$1,820,429	\$3,816,022	\$5,630	\$1,288	\$897,536	\$1,243,287	\$9,021,371

A. "Significant components" of buildings primarily comprised the main buildings and the facilities, which are depreciated based on their respective useful economic life of 20 to 25 years and 10 to 20 years.

B. Details of property, plant & equipment and prepayment for machinery is as follows:

		As of December 31,
	2014	2013
Property, plant and equipment	\$8,914,836	\$7,970,375
Prepaid equipment	1,438,282	1,050,996
Total	\$10,353,118	\$9,021,371

C. Please refer to Note 8 for details on property, plant and equipment pledged as collaterals.

D. The Company purchased certain pieces of land, totaling 28,019.24 square meters, at Taoyuan and Hsinchu areas. However, the titles of the lands were at the Company's Chairman temporarily due to certain legal restriction. The Company's right to these lands has been properly ensured.

(10) Intangible assets

	Computer software
Cost.
As of January 1, 2014	\$26,401
Additions – acquired separately	25,231
Derecognized upon retirement	(28, 552)
Effect of exchange rate changes
As of December 31, 2014	\$23,080

As of January 1, 2013	\$21,566
Additions – acquired separately	17,923
Derecognized upon retirement	(13,088)
Effect of exchange rate changes
As of December 31, 2013	\$26,401

Amortization and Impairment:
As of January 1, 2014	\$18,993
Amortization	20,712
Derecognized upon retirement	(28, 552)
Effect of exchange rate changes
As of December 31, 2014	\$11,153

As of January 1, 2013	\$19,268
Amortization	12,813
Derecognized upon retirement	(13,088)
Effect of exchange rate changes
As of December 31, 2013	\$18,993

Carrying amount, net:
As of December 31, 2014	\$11,927
As of December 31, 2013	\$7,408

Amounts of amortization recognized for intangible assets are as follows:

	For the year ended December 31,
	2014	2013
Operating expense	\$20,712	\$12,813

$(11)$ Other non-current assets

		As of December 31,
	2014	2013
Refundable deposits	\$5.347	\$4,502

(12) Short-term loans

		As of December 31,
	Interest interval	2014	2013
Unsecured bank loans	$0.88 - 0.89\%$	\$730,798	\$866,133

As of December 31, 2014 and 2013, the line of unused short-term loan credit for the Company amounted to NT\$2,687,402 thousand and NT\$2,352,807 thousand, respectively.

(13) Other payable

		As of December 31,
	2014	2013
Accrued expense	\$2,084,769	\$1,800,232
Equipme payable	895,932	281,456
Accrued ierest	819	542
Total	\$2,981,520	\$2,082,230

(14) Other current liabilities

	As of December 31,
	2014	2013
Other current liabilities	\$28,151	\$80,392
Unearned sales revenue	4,259	8.897
Current portion of long-term loans	459,008	293,325
Total	\$491,418	\$382,614

(15) Long-term loans

$\mathcal{A}^{\mathcal{A}}$

Details of long-term loans as of December 31, 2014 and 2013 were as follows:

			Loan Balance
Debtor	Type of Loan	Maturity	As of 12/31/2014	Repayment
Mega International	Secured bank	2015.10.27-	\$141,159	Notes 1 and 2
Commercial Bank -	loan	2016.12.15
LanYa Branch
Mega International	Credit loan	2015.10.27-	279,575	Notes 1 and 3
Commercial Bank -		2018.08.12
LanYa Branch
The Shanghai	Secured bank 2015.07.15		30,859	Note 4
Commercial &	loan
Savings Bank -
ZhongLi Branch
Taipei Fubon	Credit Ioan	2017.12.15	474,750	Note 5
Commercial Bank -
BeiTou Branch
Total			926,343
Less: current portion			(459,008)
Non-current portion			\$467,335

			Loan Balance
Debtor	Type of Loan	Maturity	As of 12/31/2013	Repayment
Mega International	Secured bank	2014.04.07-	\$221,750	Notes 1 and 2
Commercial Bank -	loan	2016.12.15
LanYa Branch
Mega International	Credit loan	2015.10.27-	359,647	Notes 1 and 3
Commercial Bank -		2018.08.12
LanYa Branch
The Shanghai Commercial &	Secured bank loan	2014.06.23- 2015.07.15	137,196	Notes 2 and 4

Savings Bank -
ZhongLi Branch Total			718,593

Less: current portion			(293, 325)
Non-current portion			\$425,268

Note 1: A term is defined as every 3 months starting from the initial draw-down date. Grace period is 2 years (8 terms). The rest is repayable in installments of equal amount for 20 terms.
Note 2: Interest shall be paid for the first 12 months from the initial draw-down date. Starting from the 13th month, interest shall be paid monthly with principal repaid every 3 months.
Note 3: A term is defined as every 3 months starting from the initial draw-down date. Grace period is 1 years (4 terms). The rest is repayable in installments of equal amount for 16 terms.
Note 4: A term is defined as every 3 months starting from the initial draw-down date. The loan is repayable in installments of equal amount for 20 terms.
Note 5: One year after the initial draw-down date is considered term one and the following terms are defined as every 6 months since then. The principal and interest are repayable in installments of equal amount for 5 terms.
A. A portion of property, plant and equipment were pledged to Mega International Commercial Bank and Shanghai Commercial & Savings Bank (the first-priority mortgagors) as collaterals for secured bank loans. Please refer to Note 8 for more details.
B. As of December 31, 2014 and 2013, the interest rate intervals for long-term loans were $0.72\%$ ~1.59% and $0.74\%$ ~1.53%, respectively.
(16) Other non-current liabilities

	As of December 31,
	2014	2013
Accrued pension costs	\$29,668	\$49,351

(17) Post-employment benefits

Defined contribution plan

The Company adopted a defined contribution plan in accordance with the Labor Pension Act of the R.O.C. Under the Labor Pension Act, the Company will make monthly contributions of no less than 6% of the employees' monthly wages to the employees' individual pension accounts. The Company has made monthly contributions of 6% of each individual employee's salaries or wages to employees' pension accounts.

Expenses under the defined contribution plan for the years ended December 31, 2014 and 2013 are NT\$88,653 thousand and NT\$77,999 thousand, respectively.

Defined benefits plan

The Company adopts a defined benefit plan in accordance with the Labor Standards Act of the R.O.C. The pension benefits are disbursed based on the units of service years and the average salaries in the last month of the service year. Two units per year are awarded for the first 15 years of services while one unit per year is awarded after the completion of the 15th year. The total units shall not exceed 45 units. Under the Labor Standards Act, the Company contributes an amount equivalent to 2% of the employees' total salaries and wages on a monthly basis to the pension fund deposited at the Bank of Taiwan in the name of the administered pension fund committee.

Pension costs recognized in profit or loss for the years ended December 31, 2014 and 2013 are as follows:

	For the year ended December 31,
	2014	2013
Current period service costs	\$232	\$288
Interest cost	2,645	2.154
Expected return on plan assets	(1,658)	(1, 342)
Previous period service costs
Total	\$1,219	\$1,100

The pension cost under the defined benefits plan is as follows:

	For the year ended December 31,
	2014	2013
Operating costs	\$968	\$870
Sales and marketing expenses	45	37
General and administrative expenses	114	127
Research and development expenses	92	66
Total	\$1,219	\$1,100

The cumulative amount of actuarial gains and losses recognized in other comprehensive income are as follows:

	For the year ended December 31,
	2014	2013
Balance as of January 1	\$23.952	\$37,347
Actuarial gains and losses for the period	(15,710)	(13,395)
Balance as of December 31	\$8,242	\$23,952

Reconciliation of liability (asset) of the defined benefit plan is as follows:

	As of December 31,
	2014	2013
Defined benefit obligation	\$116,697	\$132,275
Plan assets at fair value	(87,029)	(82, 924)
Funded status	29,668	49,351
Unrecognized previous period service costs	$\blacksquare$
Accrued pension liabilities	\$29,668	\$49,351

Changes in present value of the defined benefit obligation are as follows:

	For the year ended December 31,
	2014	2013
Defined benefit obligation at January 1	\$132,275	\$143,622
Current service cost	232	288
Interest cost	2,645	2,154
Benefits paid	(2,993)
Actuarial losses (gains)	(15, 462)	(13,789)
Effect of exchange rate
Defined benefit obligation at December 31	\$116,697	\$132,275

Changes in fair value of plan assets are as follows:

	For the year ended December 31,
	2014	2013
Plan assets, at fair value at January 1	\$82,924	\$76,692
Expected return on plan assets	1,658	1.342
Contributions by employer	5,192	5,284
Benefits paid	(2,993)
Actuarial losses	248	(394)
Effect of exchange rate
Plan assets, at fair value at December 31	\$87,029	\$82,924

The Company expects to contribute NT\$5,192 thousand to its defined benefit plan during the 12-month period after December 31, 2014.

The major categories as a percentage of the fair value of total plan assets are as follows:

	Pension plan (%) as of December 31,
	2014	2013
Cash	100.00%	100.00%

The actual return on plan assets of the Group for the years ended December 31, 2014 and 2013 were NT\$1,087 thousand and NT\$948 thousand, respectively.

Employee pension fund is deposited under a trust administered by the Bank of Taiwan. The overall expected rate of return on assets is determined based on historical trend and analyst's expectation on the asset's return in its market over the obligation period. Furthermore, the utilization of the fund by the labor pension fund supervisory committee and the fact that the minimum earnings are guaranteed to be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks are also taken into consideration in determining the expected rate of return on assets.

The actuarial assumptions used for the Group's defined benefit plan are shown below:

	As of December 31,
	2014	2013
Discount rate	2.25%	2.00%
Expected rate of return on plan assets	2.25%	2.00%
Expected rate of salary increases	3.00%	3.00%

Sensitivity analysis of discount rate on defined benefit obligation is shown as below:

			For the year ended December 31,
	2014		2013
	Discount	Discount	Discount	Discount
	rate	rate	rate	rate
	Increase	Decrease	Increase	Decrease
	By 0.5%	By $0.5\%$	By $0.5\%$	By $0.5\%$
Effect on the defined benefit obligation	\$(11, 487)	\$13,023	\$(13,526)	\$15,424

	For the year ended December 31,
	2014	2013
Defined benefit obligation at present value	\$116,697	\$132,275
Plan assets at fair value	(87, 029)	(82, 924)
Deficit in plan (surplus)	29,668	49,351
Experience adjustments on plan liabilities	(15, 462)	(13,789)
Experience adjustments on plan assets	(248)	394

Other information on the defined benefit plan is as follows:

$(18)$ Equity

A. Common shares

As of December 31, 2014 and 2013, the Company's authorized capital and paid-in capital were NT\$5,500,000 thousand and NT\$4,460,000 thousand, respectively, each share at par value of NT\$10, divided into 446,000 thousand shares. Each share represents a voting right and a right to receive dividends.

B. Capital surplus

	As of December 31,
	2014	2013
Additional paid-in capital	\$5,850,000	\$5,850,000
Differences between equity purchase price	50,925	13,612
and carrying amount arising from actual
acquisition or disposal of subsidiaries
All changes in interests in subsidiaries	38,894
Total	\$5,939,819	\$5,863,612

According to the Taiwan Company Act, the capital surplus shall not be used except for making good the deficit of the Company. When a company incurs no loss, it may distribute the capital surplus related to the income derived from the issuance of new shares at a premium or income from endowments received by the company up to a certain percentage of paid-in capital. The said capital surplus could be distributed in cash to its shareholders in proportion to the number of shares being held by each of them. Capital surplus related to long-term equity investments cannot be used for any purpose.

C. Appropriation of earnings and dividend policies

(a) Earning distribution

The Company's earnings in current year, if any, shall firstly be made to pay all taxes and dues and then to offset prior year's operation losses. 10% of the remaining amount shall be set aside as legal reserve and special reserve shall be provided pursuant to Article 41 of the Securities and Exchange Act. Any remaining earnings after the said deductions shall be appropriated as follows:

a. 1% as remuneration to directors
b. Bonues to employees cannot be less than 1% of the total bonus to employees and shareholders. Bonus to employees can be distributed in cash or stocks. The parties receiving the stock dividends shall include employees in affiliated companies who met certain conditions stipulated by the Board of Directors.
c. The Board of Directors would propose an earning distribution plan based on the remaining balance combined with the undistributed earnings accumulated during previous years to be resolved at the shareholders' meeting.

(b) Dividend policies

The Company is in an industry with versatile environment. For long-term finance planning requirements and to meet the shareholders' demand for cash, dividend policy aims for a steady balance. Cash dividends distributed each year cannot be less than 10% of the total dividends paid.

$(c)$ Legal reserve

According to the Company Act, legal reserve shall be set aside until such amount equal total authorized capital. Legal reserve can be used to offset deficits. If the Company does not incur any loss, the portion of legal reserve exceeding 25% of the paid-in capital may be distributed to shareholders by issuing new shares or by cash in proportion to the number of shares held by each shareholder.

(d)Special reserve

Before distributing earnings, the Company shall also set aside special reserve, for other net deductions against shareholders' equity of the period. For any subsequent reversal of other net deductions from shareholders' equity, the amount reversed is reclassified to earnings and may be distributed.

Following the adoption of Taiwan IFRS, the Company complies with Order No. Jin-Guan-Zheng-Fa 1010012865 issued by FSC on April 6, 2012. On the Company's first-time adoption of the Taiwan IFRS, for any unrealized revaluation gains and cumulative translation adjustments recorded under shareholders' equity that the Company elects to transfer to retained earnings by application of the exemption under IFRS 1, an equal amount of special capital reserve shall be set aside. After the adoption of Taiwan IFRS for the preparation of financial statements, the Company shall set aside supplemental special reserve based on the difference between the amount already set aside according to the requirements in the preceding point and other net deductions from shareholders' equity when appropriating distributable earnings. For any subsequent reversal of other net deductions from shareholders' equity, the amount reserved may be distributed as earnings.

The special reserve for the first-time adoption of Taiwan IFRS amounted to zero as of January 1, 2014 and 2013. The Company did not use, dispose or reclassify relevant assets which lead to reversal of special reserves for the year ended December 31, 2014 and 2013. The special reserve for the first-time adoption of Taiwan IFRS amounted to zero as of December 31, 2014 and 2013.

(e) The Company estimated the amounts of the employee bonuses and the remuneration to directors and supervisors to be NT\$545,680 thousand and NT\$32,099 thousand, respectively, for the year ended December 31, 2014; and the estimated amounts of the employee bonuses and remuneration to directors and supervisors to be NT\$492,104 thousand and NT\$28,947 thousand, respectively, for the year ended December 31, 2013. The amounts are estimated based on the net income for the period and the percentage stated in the Article of Incorporation, after taking into account factors such as legal reserves. The estimated employee bonuses and remuneration to directors and supervisors are recognized as operating costs or operating expense for the period. If the board modified the estimates significantly in the subsequent periods, the Company will recognize the change as an adjustment to current income retroactively. The difference between the estimates and the resolution of shareholders' meeting will be recognized in profit or loss of the subsequent year. If the shareholders' meeting resolves to pay the employee bonus in the form of stocks, the number of shares distributed is determined by dividing the amount of bonuses by the closing price (after considering the effect of dividends) of shares on the day preceding the shareholders' meeting.

The appropriations of earnings for the years 2014 and 2013 were approved through the Board of Directors' meetings and shareholders' meetings held on February 9, 2015 and June 9, 2014, respectively. The details of the distributions are as follows:

	Appropriation of earnings		Dividend per share (in NTS)
	2014	2013	2014	2013
Legal reserve	\$361,733	\$322,409
Cash dividends - common stock	1,784,000	1,561,000	4.00	3.50
Remuneration to directors and supervisors	32,556	29,761
Employee bonus - cash	545,679	492,104
Total	\$2,723,968	\$2,405,274

The information about employees' bonuses and remuneration to directors and supervisors which were resolved by the Board of Directors' meeting and shareholders' meeting is available at the Market Observation Post System website.

The actual payment of 2012 earning distribution comprised the employees' bonuses of NT\$428,551 thousand and the remuneration to directors and supervisors of NT\$24,435 thousand. The difference of NT\$3,687 thousand between the actual payment and the accrual of NT\$428,551 thousand for employees' bonuses and NT\$28,122 thousand for remuneration to directors and supervisors for the year ended December 31, 2012 was recorded in the profit or loss for the year ended December 31, 2013.

The actual payment of 2013 earning distribution comprised the employees' bonuses of NT\$492,104 thousand and the remuneration to directors and supervisors of NT\$29,761 thousand. The difference of NT\$814 thousand between the actual payment and the accrual of NT\$429,104 thousand for employees' bonuses and NT\$28,947 thousand for remuneration to directors and supervisors for the year ended December 31, 2013 was recorded in the profit or loss for the year ended December 31, 2014.

$(19)$ Sale

	For the year ended December 31,
	2014	2013
Sale of goods	\$19,141,507	\$17,827,159
Less: sales returns and allowances	(318,035)	(267, 257)
Services rendered	186,656	165,081
Other operating revenue	280,109	302,016
Total	\$19,290,237	\$18,026,999

(20) Summary statement of employee benefits, depreciation and amortization expenses by function is as follows:

Function		2014			2013
	Cost of goods	Operating		Cost of goods	Operating
Nature	sold	expense	Total	sold	expense	Total
Employee benefit
Salaries & wages	\$1,846,109	\$427,974	\$2,274,083	\$1,653,734	\$428,066	\$2,081,800
Labor and health insurance	156,840	40,937	197,777	127,156	35,925	163,081
Pension	70,324	19,548	89,872	62,051	17,048	79,099
Other employee benefit	89,993	16,548	106,541	90,720	17,008	107,728
Depreciation	1,804,313	107,330	1,911,643	1,769,782	97,306	1,867,088
Amortization		20,712	20,712		12,813	12,813

Note: The headcounts of the Company amounted to 3,661 and 3,473 respectively on December 31, 2014 and 2013.

(21) Non-operating incomes and expenses

A. Other incomes

$\ddot{\phantom{0}}$

$\ddot{\phantom{a}}$

	For the year ended December 31,
	2014	2013
Interest income	\$71,135	\$59,530
Dividend income	1,531	2,226
Other income — others	40,436	33,304
Total	\$113,102	\$95,060

B. Other gains and losses

	For the year ended December 31,
	2014	2013
Gain (loss) from disposal of property, plant and equipment	\$(629)	\$2,973
Foreign exchange gains, net	23,921	28,191
Valuation gain of financial assets at fair value through profit or loss	27,787	22,456
Gain from disposal of investment	24,691	10,732
Total	\$75,770	\$64,352

C. Finance costs

For the year ended December 31,
2014	2013
\$19,712	\$17,042

(22) Components of other comprehensive income (OCI)

For the year ended December 31, 2014

	Arising	Reclassificati		Income tax
	during the	on during the		benefit	OCI.
	period	period	Subtotal	(expense)	Net of tax
Exchange differences	\$194,267	$S-$	\$194,267	\$(33,026)	\$161,241
arising on translation of
foreign operations
Unrealized valuation gain	34,474	(24, 891)	9,583		9,583
(loss) on
available-for-sale
financial assets
Actuarial gains or losses on	15,710		15,710		15,710
defined benefits plan
Total OCI	\$244,451	\$(24,891)	\$219,560	\$(33,026)	\$186,534

For the year ended December 31, 2013

	Arising	Reclassificati		Income tax
	during the	on during the		benefit	OCI,
	period	period	Subtotal	(expense)	Net of tax
Exchange differences	\$203,043	$S-$	\$203,043	$$(19,205)$ .	\$183,838
arising on translation of
foreign operations
Unrealized valuation gain	4.519	(5,054)	(535)		(535)
(loss) on
available-for-sale
financial assets
Actuarial gains or losses on	13.395		13,395		13,395
defined benefits plan
Total OCI	\$220,957	\$(5,054)	\$215,903	\$(19,205)	\$196,698

$(23)$ Income tax

A. The major components of income tax expense (income) are as follows:

Income tax expense (benefit) recognized in profit or loss

	For the year ended December 31,
	2014	2013
Current income tax expense (benefit):
Current income tax expense	\$537,789	\$551,791
Adjustments in respect of current income tax of prior periods		(14,000)
Deferred tax expense (benefit):
Deferred tax expense (benefit) relating to origination and reversal of temporary differences	(5, 412)	7,177
Total income tax expense	\$532,377	\$544,968

B. Income tax recognized in other comprehensive income

	For the year ended December 31,
	2014	2013
Deferred tax expense (benefit):
Exchange differences arising on translation of
foreign operations	\$33,026	\$19,205

C. A reconciliation between tax expense and the product of accounting profit multiplied by applicable tax rates is as follows:

	For the year ended December 31,
	2014	2013
Accounting profit (loss) before tax from
continuing operations	\$4,149,704	\$3,769,061

Tax payable at the enacted tax rates	\$705,450	\$640,740
10% surtax on Undistributed earnings	141,511	117,993
Tax exempted from tax holiday	(330, 477)	(85, 460)
Tax effect of expenses not deductible for tax purposes	(564)	(27, 033)
Tax effect of deferred tax assets/liabilities	16,457	(101, 272)
Total income tax expense (income) recognized in
profit or loss	\$532,377	\$544,968

D. Deferred tax assets (liabilities) relate to the following:

For the year ended December 31, 2014

			Deferred
		Deferred tax	tax income
		income	(expense)	Deferred tax
		(expense)	recognized	income	Increase		Ending
	Beginning	recognized	in other	(expense)	from		balance as of
	balance as of	in profit or	comprehen	recognized in	business	Exchange	December 31,
	January 1, 2014	loss	sive income	equity	acquisition	adjustments	2014
Temporary differences
Unrealized exchange loss (gain)	\$(7,177)	\$5,412	\$-	\$-	\$-	$$-$	\$(1,765)
Cumulative translation adjustment	(19,205)		(33,026)				(52, 231)
Deferred tax income/ (expense)		\$5,412	\$(33,026)	$$-$	\$-	\$-
Net deferred tax assets/(liabilities)	\$(26,382)						\$(53,996)
Reflected in balance sheet as follows:
Deferred tax assets	\$-						\$-
Deferred tax liabilities	\$(26, 382)						\$(53,996)

For the year ended December 31, 2013

			Deferred tax
			income
		Deferred tax	(expense)	Deferred tax
		income	recognized in	income	Increase
	Beginning	(expense)	other	(expense)	from		Ending balance
	balance as of		recognized in comprehensiv	recognized	business	Exchange	as of December
	January 1, 2014	profit or loss	e income	in equity	acquisition	adjustments	31, 2014
Temporary differences
Unrealized loss on inventory valuation	\$13,396	\$(13,396)	\$-	\$-	\$-	\$-	\$-
Unrealized exchange loss (gain)	(13,396)	6,219				٠	(7,177)
Cumulative translation adjustment			(19,205)				(19,205)
Deferred tax income/ (expense)		\$(7,177)	\$(19, 205)	\$-	\$-	\$-
Net deferred tax assets/(liabilities)	\$-						\$(26,382)
Reflected in balance sheet as follows:
Deferred tax assets	\$13,396						S-
Deferred tax liabilities	\$(13,396)						\$(26, 382)

E. Unrecognized deferred tax assets

As of December 31, 2014 and 2013, deferred tax assets that have not been recognized as they may not be used to offset future taxable income amounted to NT\$436,749 thousand and NT\$420,292 thousand, respectively.

F. The investments and capital additions of the Company is qualified as the investment on strategic emerging industry and entitled to some tax privilege. The details of 5-year tax holiday/exemption enjoyed by the Company are listed as below.

Item	Approval authority	Approval document	Exemption period
	Ministry of	No. 10005112010 issued at Aug. 25, 2011	2013.01.01~2017.12.31
	Economic Affairs

G. The unused balances of the Company's investment tax credit were as below.

		Unused balance
	Item To be Exempted from	As of December 31,		Expiration
Legal basis	Corporate Income Tax	2014	2013	Year
Statute for Upgrading Industries	Deduction of investment of machinery and equipment	\$-	\$43,488	2014
Statute for Upgrading Industries	Deduction of investment of machinery and equipment		23,195	2015
		\$-	\$66,683

H. Imputation credit information

	As of December 31,
	2014	2013
Balances of imputation credit	\$1,434,884	\$940,384

The Company's expected/actual creditable ratio for 2014 and 2013 were 11.68% and 10.23%.

As of December 31, 2014, the Company did not have unappropriated earnings resulted in the years of 1997 and before.

I. The assessment of income tax return

As of December 31, 2014, the assessment status of income tax returns of the Company was as follow:

The Company

The assessment of income tax returns Assessed and approved up to 2011

(24) Earnings per share

Basic earnings per share is calculated by dividing net profit for the year attributable to the common shareholders of the parent entity by the weighted average number of common shares outstanding during the year.

Diluted earnings per share are calculated by dividing the net profit attributable to ordinary equity holders of the parent entity (after adjusting any influences) by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

A. Basic earnings per share

	For the year ended December 31,
	2014	2013
Net income available to common shareholders
of the parent (in thousand NT\$)	\$3,617,327	\$3,224,093
Weighted average number of common shares
outstanding (in thousand shares)	446,000	446,000
Basic earnings per share (in NT\$)	\$8.11	\$7.23

B. Diluted earnings per share

	For the year ended December 31
	2014	2013
Net income available to common shareholders
of the parent (in thousand NT\$)	\$3,617,327	\$3,224,093
Net income available to common shareholders
of the parent after dilution (in thousand NT\$)	\$3,617,327	\$3,224,093

Weighted average number of common shares outstanding (in thousand shares)	446,000	446,000
Effect of dilution:
Employee bonus – stock (in thousand shares)	7,305	6,775
Weighted average number of common shares
outstanding after dilution (in thousand shares)	453,305	452,775
Diluted earnings per share (in NT\$)	\$7.98	\$7.12

7. RELATED PARTY TRANSACTIONS

(1) Significant transactions with related parties

A. Sales to

	For the year ended December 31,
	2014	2013
Parent company	\$4,903	\$2,156
Other related parties	58,775	127,676
Total	\$63,678	\$129,832

Selling prices and collection terms to related parties are similar to those to third party customers for the years ended December 31, 2014 and 2013. The collection terms are 30 to 60 days from the end of delivery month by telegraphic transfer

B. Purchases

	For the year ended December 31,
	2014	2013
Subsidiaries	\$1,526,521	\$948,296

C. Accounts receivable - related parties

	As of December 31,
	2014	2013
Other related parties	\$1,008	\$29,377
Less: allowance for doubtful
accounts		×
Net	\$1,008	\$29,377

D. Account payable

	As of December 31,
	2014 2013
Subsidiaries	\$247,315	\$183,102

E. The Company recognized commission expenses amounting NT\$36,895 thousand and NT\$26,363 thousand, respectively, for the years ended December 31, 2014 and 2013 due to delegating its subsidiaries of marketing services.
F. For the years ended December 31, 2014 and 2013, the Company recognized travelling expenses of NT\$47 thousand and NT\$76 thousand, respectively, for commissioning subsidiaries to handle travelling logistics.

For the years ended December 31, 2014 and 2013, the Company recognized travelling expenses of NT\$341 thousand and NT\$955 thousand, respectively, for commissioning other related parties to handle travelling logistics.

G. The Company's subcontracting fees to its subsidiaries amounted to NT\$51,319 thousand and NT\$48,431 thousand, respectively, for the years ended December 31, 2014 and 2013.
H. The Company delegated its subsidiary of R&D testing services in expense of NT\$152 thousand for the year ended December 31, 2014.
I. The Company charged its subsidiaries for providing technology support in amount of NT\$3,845 thousand and NT\$6,089 thousand, recorded under the caption of other non-operating incomes, for the years ended December 31, 2014 and 2013, respectively.
J. For the years ended December 31, 2014 and 2013, the Company recognized operating expenses of NT\$693 thousand and NT\$43 thousand, respectively, for services provided by other related parties.

Moreover, for the year ended December 31, 2013, the Company recognized operating expenses of NT\$27 thousand, respectively, for services provided by the Parent.

K. The Company recognized other incomes in amount of NT\$2,145 thousand and NT\$8,678 thousand for the years ended December 31, 2014 and 2013, respectively, due to selling tools and spare parts to its subsidiaries.

L. The Company provided bank loan garranty in total of NT\$7,094,348 thousand for its subsidiariesas as of December 31, 2014. The garranty amount is of contingency and not recognized at the balance sheets and the statements of comprehensive incomes yet.
M. Salaries and rewards to key management of the Company

		For the year ended December 31,
		2014		2013
Short-term employee benefits		\$82,908		\$84,996
Post-employee benefits		838		864
Total		\$83,746		\$85,860
N. Other receivables
			As of December 31,
		2014		2013
Subsidiaries		\$9,197		\$12,502
O. Accrued expenses
			As of December 31,
		2014		2013
Subsidiaries		\$12,704		\$12,279
Other related parties		14		108
Total		\$12,718		\$12,387
P. Transaction of assest
Type of		Book	Selling	Gain	Price
Assets	Related Parties	Value	price	(Note)	reference
2014
Machinery	Subsidiary	\$6,032	\$6,511	\$479	Negotiated

$$1,077$

\$6,284

\$5,207

Negotiated

Subsidiary

$2013$

Machinery

8. PLEDGED ASSETS

The following assets of the Company are pledged as collaterals:

		Carrying Amount
	As of December 31,
Item	2014	2013	Purpose
Property, plant and equipment - machinery (carrying amount)	\$112,720	\$157,460	Long-term secured loans
Refundable deposits	3,057	3.057	Bonded factory
Total	\$115,777	\$160,517

9. SIGNIFICANT CONTINGENCIES AND UNRECOGNIZED CONTRACT COMMITMENTS

(1) The Group's unused letters of credit (LC) as of December 31, 2014 were as follows:

Currency		LC Amount (in thousand)	Security
JPY	JPY	2,465,614	.D-
USD	JSD	4.140	-
Euro	EUR	415	-

(2) Detail of significant constructions in progress and outstanding contracts of property, plant and equipment as of December 31, 2014 was as follow:

			Outstanding
Nature of Contract	Contract Amount	Amount Paid	Balance
Machinery and
contruction contracts	\$3,094,144	\$1,467,074	\$1,627,070

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT SUBSEQUENT EVENT

None.

12. OTHERS

(1) Categories of financial instruments

Financial assets

	As of December 31,
	2014	2013
Financial assets at fair value through
profit or loss:
Held for trading	\$5,081,578	\$5,053,791
Available-for-sale financial assets	40,369	57,715
Loans and receivable
Cash and cash equivalents	10,082,104	8,097,635
(excluding cash on hand)
Bond investments with no active	420,000	420,000
market
Notes receivable	4,358	69,383
Accounts receivable	2,403,669	2,447,303
Accounts receivable - related parties	1,008	29,377
Other receivable	392,702	395,162
Other receivable - related parties	9,197	12,502
Total	\$18,434,985	\$16,582,868

Financial liabilities

As of December 31,
2014	2013


\$730,798	\$866,133
4,195,768	3,075,720

926,343	718,593
\$5,852,909	\$4,660,446

$\sim$

(2) Objectives and policies of financial risk management

The Company's principal financial risk management objective is to manage the market risk, credit risk and liquidity risk related to its operating activates. The Company identifies, measures, and manages the aforementioned risks based on its policy and risk preferences.

The Company has established appropriate policies, procedures and internal controls for financial risk management. Before entering into significant transactions, due approval process by the Board of Directors and Audit Committee must be carried out based on related protocols and internal control procedures. The Company complies with its financial risk management policies at all times.

(3) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of the changes in market prices. Market risk comprises currency risk, interest rate risk and other price risk (e.g. equity instruments).

In practice, it is rarely the case that a single risk variable will change independently from other risk variables. There are usually interdependencies between risk variables. However, the sensitivity analysis disclosed below does not take into account the interdependencies between risk variables.

Foreign currency risk

The Company's exposure to foreign currency risk relates primarily to the Company's operating activities (when revenue or expense are denominated in a different currency from the Company's functional currency) and the Company's net investments in foreign operations.

The Company has certain foreign currency receivables denominated in the same foreign currency as certain foreign currency payables, therefore natural hedge is achieved. Thus, hedge accounting is not adopted.

The foreign currency sensitivity analysis of the possible change in foreign exchange rates on the Company's profit (loss) and equity is performed on significant monetary items denominated in foreign currencies as of the end of the reporting period. The Company's foreign currency risk is mainly related to the volatility in the exchange rates of US dollars. The sensitivity analysis is as follows:

If NT dollars appreciates/depreciates against US dollars by 1%, the net income (loss) for the years ended December 31, 2014 and 2013 would increase/decrease by NT\$1,926 thousand and NT\$587 thousand, respectively.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to interest rate risk relates primarily to the Company's investments with variable interest rates and loans with fixed and variable interest rates, which are all categorized as loans and receivables.

The interest rate sensitivity analysis is performed on items exposed to interest rate risk as of the end of the reporting period and presumed to be held for one accounting year, including investments and loans with variable interest rates. If interest rate increases/decreases by 0.1%, the net income (loss) for the years ended December 31, 2014 and 2013 would decrease/increase by NT\$410 thousand and decrease/increase by NT\$73 thousand, respectively.

Equity price risk

The Company's domestic listed equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The listed equity securities held by the Company is classified as available-for-sale. The Company manages the equity price risk through diversification and placing limits on individual and total equity instruments. Reports on equity portfolio are submitted to the Company's senior management on a regular basis. The Company's Board of Directors reviews and approves all equity investment decisions.

For available-for-sale listed equity securities, 1% decrease in their prices would impact on the Company's equity by NT\$404 thousand and NT\$577 thousand for the years ended December 31, 2014 and 2013, respectively; and 1% increase in their prices would merely impact on the Company's equity.

(4) Credit risk management

Credit risk is the risk that counterparty will not meet its obligations under a contract and result in a financial loss. The Company is exposed to credit risk from operating activities (primarily for accounts and notes receivable) and financing activities (primarily for bank deposits and other financial instruments).

Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and control relating to customer credit risk management. Credit risk of all customers are assessed based on a comprehensive review of the customers' financial status, credit ratings from credit institutions, past transactions, current economic conditions and the Company's internal credit ratings. The Company also employs some credit enhancement instruments (e.g. prepayment or insurance) to reduce certain customers' credit risk.

As of December 31, 2014 and 2013, receivables from the top ten customers were accounted for 47.90% and 63.42% of the Company's total accounts receivable, respectively. The concentration of credit risk is relatively not significant for the remaining receivables.

Credit risk from balances with banks, fixed-income securities and other financial instruments is managed by the Company's finance division in accordance with the Company's policy. The counterparties that the Company transacts with are determined by internal control procedures. They are banks with fine credit ratings and financial institutions, corporate and government agencies with investment-grade credit ratings. Thus, there is no significant default risk. Conclusively, no significant credit risk is expected by the Company.

(5) Liquidity risk management

The Company maintains financial flexibility through the use of cash and cash equivalents, highly-liquid marketable securities, bank loans, etc. The table below summarizes the maturity profile of the Company's financial liabilities based on the contractual undiscounted payments and contractual maturity. The payment amount includes the contractual interest. The undiscounted interest payment relating to borrowings with variable interest rates is extrapolated based on the estimated yield curve as of the end of the reporting period.

	Less than 1 year	2 to 3 years	3 to 4 years	4 to 5 years	Total

As of December 31, 2014
Loans	\$1,203,240	\$303,647	\$151,499	\$30,471	\$1,688,857
Payables	4,195,768	$\blacksquare$		$\blacksquare$	4,195,768
As of December 31, 2013
Loans	1,180,072	352,844	50,511	38,589	1,622,016
Payables	3,075,720	$\blacksquare$			3,075,720

Non-derivative financial instruments

(6) Fair values of financial instruments
A. The evaluation methods and assumptions applied in determining the fair value

The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

(a) The carrying amount of cash and cash equivalents, accounts receivable, accounts payable and other current liabilities approximate their fair value.
(b) For financial assets and liabilities traded in an active market with standard terms and conditions, their fair value is determined based on market quotation price (e.g. listed stocks and bonds).
(c) The fair value of derivative financial instrument is based on market quotations. For unquoted derivatives that are not options, the fair value is determined based on discounted cash flow analysis using interest rate yield curve for the contract period. Fair value of option-based derivative financial instruments is obtained using the option pricing model.
(d) The fair value of other financial assets and liabilities is determined using discounted cash flow analysis. The interest rate and discount rate are selected with reference to those of similar financial instruments.
B. Fair value of financial instruments measured at amortized cost

The carrying amount of the Company's financial assets and liabilities measure at amortized cost approximates their fair value.

C. Assets measured at fair value

The following table contains the fair value of financial instruments after initial recognition and the details of the three levels of fair value hierarchy:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data.

As of December 31, 2014

	Level 1	Level 2	Level 3	Total
Financial assets:
Financial assets at fair value through profit or loss
Funds	\$5,081,578	\$-		$$-$ \$5,081,578
Available-for-sale financial assets
Stocks	40,369	-	$\blacksquare$	40,369
Financial liabilities:
None

As of December 31, 2013

	Level 1	Level 2	Level 3	Total
Financial assets:
Financial assets at fair value through profit or loss
Funds	\$5,053,791	\$-		$$-$ \$5,053,791
Available-for-sale financial assets
Stocks	57,715	$\blacksquare$	$\blacksquare$	57,715
Financial liabilities:
None

For the years ended December, 2014 and 2013, there were no transfers between Level 1 and Level 2 fair value measurements.

(7) Significant financial assets and liabilities denominated in foreign currencies

Information regarding the Company's significant financial assets and liabilities denominated in foreign currencies was listed below: (In Thousands)

	As of December 31,
		2014		2013
	Foreign	Exchange		Foreign	Exchange
	Currencies	Rate	NTD	Currencies	Rate	NTD
Financial assets
Monetary items:
USD	\$74,866	31.65	\$2,369,519	\$76,690	29.81	\$2,285,640

Non-monetary item: USD	\$110,192	31.65	\$3,487,564	\$122,183	29.81	\$3,641,662
Financial liabilities
Monetary items:
USD	\$81,011	31.65	\$2,564,008	\$74,718	29.81	\$2,226,955

(8) Capital management

The primary objective of the Company's capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value. The Company manages and adjusts its capital structure in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust dividend payment to shareholders, return capital to shareholders or issue new shares.

13. ADDITIONAL DISCLOSURES

(1) Information on significant transactions
A. 1 Financing provided to others: None.
B. Endorsement/Guarantee provided to others: Please refer to attachment 1.
C. Marketable securities held as of December 31, 2014 (excluding investments in subsidiaries, associates and joint ventures): Please refer to attachment 2.
D. Individual securities acquired or disposed of with accumulated amount of at least NT\$300 million or 20 percent of the paid-in capital for the year ended December 31, 2014: None.
E. Acquisition of individual real estate with amount of at least NT\$300 million or 20 percent of the paid-in capital for the year ended December 31, 2014: Please refer to attachment 3.
F. Disposal of individual real estate with amount of at least NT\$300 million or 20 percent of the paid-in capital for the year ended December 31, 2014: None.
G. Related party transactions with purchase or sales amount of at least NT\$100 million or 20 percent of the paid-in capital for the year ended December 31, 2014: Please refer to attachment 4.
H. Receivables from related parties of at least NT\$100 million or 20 percent of the paid-in capital as of Decemer 31, 2014: None.
I. Derivative instrument transactions: None.
(2) Information on investees
A. Investees over whom the Company exercises significant influence or control (excluding investees in Mainland China): Please refer to attachment 5.
B. Investees over which the Company exercises control shall be disclosed of information under Note $13(1)$ :
- (a) Financing provided to others: None.
- (b) Endorsement/Guarantee provided to others: None.
- (c) Marketable securities held as of December 31, 2014 (excluding investments in subsidiaries, associates and joint ventures): Please refer to attachment 6
- (d)Individual securities acquired or disposed of with accumulated amount of at least NT\$300 million or 20 percent of the paid-in capital for the year ended December 31. 2014: None.
- (e) Acquisition of individual real estate with amount of at least NT\$300 million or 20 percent of the paid-in capital for the year ended December 31, 2014: None.
- (f) Disposal of individual real estate with amount of at least NT\$300 million or 20 percent of the paid-in capital for the year ended December 31, 2014: None.
- (g) Related party transactions with purchase or sales amount of at least NT\$100 million or 20 percent of the paid-in capital for the year ended December 31, 2014: Please refer to attachment 7.
- (h) Receivables from related parties of at least NT\$100 million or 20 percent of the paid-in capital as of December 31, 2014: Please refer to attachment 8.
- (i) Derivative instrument transactions: None.

(3) Information on investments in Mainland China:

A. Name of investee in China, main business, paid-in capital, method of investment, investment flows, percentage of ownership, investment gain or loss, carrying amount at the end of reporting period, inward remittance of earning or loss and the upper limit on investment in China:

(In Thousands of New Taiwan Dollars)

				Investment								Accumulated
				Flows		Accumulated					Accumulated	Outflow of		Investment Upper Limit
Name of China	Investee in Main Business	Paid-in Capital	Accumulated Outflow of Method of Investment Investment from Taiwan as of January 1,2014	Outflow Inflow		Outflow of Investment from Taiwan as of December 31, 2014	Profit/ Loss of Investee	Percentage οf Ownership Indirect Investment)	Share of (Direct or Profit/Loss	Carrying Amount as of December 31, 2014	Inward Remittance as of December 31, 2014	Investment from Taiwan of Earnings to Mainland China as of December 31, 2014	Amounts Authorized by Investment Commission, Commission, MOEA	on Investment in China by Investment MOEA
Kinsus Interconnect and selling Technology PCB (not Suzhou Corp.	Manufacturing high-density fine-line)	$ $2,215,500 $ (Note 1) (Note 2)	\$2,215,500 (Note 2)	$S-$	\$-	$$2,215,500$ $$(187,969)$ (Note 2)	(Note 2) and Note 3)	100%	\$(187,969) \$(1,229,223 (Note 2 $\cdot$ (Note 2 $\cdot$ Note 3 and Note 3 and Note $6)$	Note $6)$	$\mathbb{S}$ -	\$2,215,500 (Note 2)	\$2,215,500 (Note 2)	No upper limit (Note 4)

English Translation of Parent-Company-Only Financial Statements and Footnotes Originally Issued in Chinese Kinsus Interconnect Technology Corp.
Notes to Parent-Company-Only Financial Statements (Continued)

Piotek Computer (Suzhou) Co., Ltd.	Researching, developing, producing and selling electronic components, PCBs and related products and providing after-sale services	\$5,276,055 (Note 2)	(Note 1)	\$2,983,139 (Note 2)	$S-$	$S-$	$$2,983,139$ $$(365,558)$ (Note 2)	(Note 2) and Note 3)	51%	(Note $2 \cdot$ Note 3 and Note $6)$	$ $(186,435)$ $$2,134,810$ $\vert$ (Note 2 $\cdot$ Note 3 and Note $6)$	$S-$	\$2,983,139 (Note 2)	\$2,983,139 (Note 2)
Xiang-Shuo (Suzhou) Trading Limited	Trading of PCB (not high-density fine-line) and material for related products	\$63,300 (Note 2)	(Note 1)	\$63,300 (Note 2)	$S-$	$S-$	\$63,300 (Note 2)	\$4,273 (Note 2) and Note 3)	100%	\$4,273 (Note $2 \cdot$ Note $6)$	\$67,731 (Note $2 \cdot$ Note 3 and Note 3 and Note $6)$	$S-$	\$63,300 (Note 2)	\$63,300 (Note 2)	No upper limit (Note 4)
Pegavision Contact Lenses (Shanghai) Corporation	Selling medical equipment	\$10,598 (Note 2)	(Note 1)	\$2,981 (Note 2)	\$7,617	$$-$	\$10,598 (Note 2)	\$(4,819) (Note 2 and Note 3)	100%	\$(4,819) (Note $2 \cdot$ Note $6)$	\$1,601 (Note $2 \cdot$ Note 3 and Note 3 and Note 6)	$S-$	\$10,598 (Note 2)	\$10,598 (Note 2)	\$549,257 (Note 5)

English Translation of Parent-Company-Only Financial Statements and Footnotes Originally Issued in Chinese Kinsus Interconnect Technology Corp. Notes to Parent-Company-Only Financial Statements (Continued)

Note 1: Investment in Mainland China through companies in the third area.

Note 2: Amounts in foreign currencies are translated into New Taiwan dollars using the exchange rates on the balance sheet date.

Note 3: Gain/loss on investment is recognized based on the audited financial statements of the parent company in Taiwan.
Note 4: The Company meets the conditions of corporate operation headquarter in the Principle of Evaluation for Investment and Technical Cooperation in Mainland China. Thus, there is no upper limit on investment amount.
Note 5: The upper limit on investment for Pegavision Contact Lenses (Shanghai) Corporation is calculated as 60% of Pegavision Corporation's net equity.

B. Significant transactions with investees in China:

(a) Purchase and balances of related accounts payable as of December 31, 2014:

		Purchases	Accounts Payable
		% to Net		% to Account
	Amount	Purchase	Amount	Balance
The Company's purchase
from Kinsus Interconnect
Technology Suzhou	\$1,526,521	21.35%	\$247,315	21.06%

The product specification of goods purchased by the Company from Kinsus Interconnect Technology Suzhou Corp. in the year ended December 31, 2014 differed from goods purchased from other vendors. Thus, transaction prices are not comparable. Payment term for related parties is 60 days from the end of delivery month. The payment terms for non-related parties are 60 to 90 days from the end of delivery month by telegraphic transfer.

(b) Sales, the ending balance of related accounts receivable and their weightings:

		Sales	Accounts receivable
	Amount	% to Net Sales	Amount	% to Account Balance
Sale of Piotek Computer
(Suzhou) to Piotek (H.K.)
Trading	USD30,268	19.60%	USD6,770	21.06%
Sale of Piotek Computer
(Suzhou) to Xiang-Shuo
(Suzhou) Trading	USD19,059	12.34%	USD1,491	4.64%
Sale of Xiang-Shuo (Suzhou)
Trading to Piotek Computer
(Suzhou) Trading	RMB24,544	16.66%	RMB 3,889	27.65%
Sale of Xiang-Shuo (Suzhou)
Trading to Kinsus Interconnect
Technology Suzhou	RMB 4,439	3.01%	RMB 649	4.61%
Sale of the Company to
Xiang-Shuo (Suzhou) Trading	\$1,484	$-9/2$	\$-	$-$ %
Sale of the Company to Kinsus
Interconnect Technology
Suzhou	\$3,419	$-9/2$	\$-	$-$ %

The product specification of goods sold between subsidiaries in the year ended December 31, 2014 differed from goods sold to other customers. Thus, transaction prices cannot be reasonably compared. Sales of the Company to Kinsus Interconnect Technology Suzhou Corp. and Xiang-Shuo (Suzhou) Trading Limited have the same product prices as sales to non-related parties. Collection terms are also equivalent to the ones for non-related parties. which is 30 to 60 days from delivery by telegraphic transfer.

a. Details of property transaction between Kinsus Interconnect Technology Suzhou and related partiesas follow:

Type of
Assets	Related Parties	Book value	Selling price	Gain	Price reference
Machinery	Piotek Computer (Suzhou)
	Trading	RMB 304	RMB286	RMB18	Negotiated

b. Details of property transaction between the Company and related partiesas follow:

Type of
Assets	Related Parties	Book value	Selling price	Gain	Price reference
Machinery	Piotek Computer (Suzhou)
	Trading	\$6,032	\$6.511	\$479	Negotiated

(d) Ending balance of endorsements/guarantees or collateral provided and the purposes: Please refer to attachment 1.
(e) Maximum balance, ending balance, interest rate range and total interest for current period from financing provided to others: None.
(f) Transactions that have significant impact on profit or loss of current period or the financial position, such as services provided or rendered:
a. The Company commissioned Kinsus Interconnect Technology (Suzhou) Corp. for processing and testing fee of NT\$51,319 thousand and NT\$152 thousand, respectively, for the year ended December 31, 2014. Payable amounted to NT\$9,318 thousand as of December 31, 2014.
b. The Company sold fixtures and spare parts to Piotek Computer (Suzhou) Co., Ltd., Kinsus Interconnect Technology Suzhou Corp. Trading Limited and Xiang-Shuo (Suzhou) Trading and recognized other income of NT\$2,145 thousand for the year ended December 31, 2014.
c. As of December 31, 2014, the balance of other receivables amounted to NT\$8.210 thousand and NT\$987 thousand, respectively. The other receivable were resulted from the Company's sale of property, plant and equipment and fixtures to Piotek Computer (Suzhou) Co., Ltd. and Kinsus Interconnect Technology Suzhou Corp.
d. As of December 31, 2014, other receivables of Xiang-Shuo (Suzhou) Trading Limited due to payment and collection on behalf of Piotek Computer (Suzhou) Co., Ltd. amounted to RMB24 thousand.

14. SEGMENT INFORMATION

The Company has provided the operating segment disclosure in the consolidated financial statements.

Kinsus Interconnect Technology Corp.

Endorsement/Guarantee Provided to Others

For the Year Ended December 31, 2014

Attachment 1

(In Thousands of Foreign Currency / New Taiwan Dollars)

	Endorsement/ Guarantee Provider		Guaranteed Party					Amount of	Ratio of Accumulated	Maximum
No. [Note 1]	Name	Name	Nature of Relationship	Limits on Endorsement/ Guarantee Amount Provided to Each Guaranteed Party	Maximum Balance for the Period	Ending Balance	Amount Actually Drawn	Endorsement/ Guarantee secured by Properties	Endorsement/ Guarantee to Net Worth per Latest Financial Statements	Endorsement/ Guarantee Amount Allowed	Endorsement provided by parent company to subsidiaries	Endorsement provided by subsidiaries to parent company	Endorsement provided to entities in China
-0	Kinsus Interconnect Technology Corp.	Kinsus Interconnect Technology Suzhou Corp.	Investee accounted for using equity	The overall amount of guarantees/ endorsements provided to a subsidiary in which the Company holds directly over 50% method indirectly (inclusive) of common equity interest shall not exceed 20% of the net worth in the current financial statements. \$5,479,602	\$4,431,000 (USD 140,000) (Note 2)	\$4,431,000 (USD 140,000) (Note 2)	\$1,494,613	S-	16.17%	Shall not exceed 50% of the net worth in the current financial Istatements. \$13,699,005		N	Y
$\bf{0}$	Kinsus Interconnect Technology Corp.	Piotek Computer Investee (Suzhou) Co., Ltd.	accounted for using equity	The overall amount of guarantees/ endorsements provided to a subsidiary in which the Company holds directly over 50% method indirectly (inclusive) of common equity interest shall not exceed 20% of the net worth in the current financial statements. \$5,479,602	\$3,066,885 (USD 96,900) (Note 2)	\$2,663,348 (USD 84, 150) (Note 2)	\$281,151	$S-$	9.72%	Shall not exceed 50% of the net worth in the current financial statements. \$13,699,005	Y	N

Note 1: Kinsus Interconnect Technology Corp. is coded "0".

Note 2: Amounts in foreign currencies are converted to New Taiwan Dollars using the exchange rates as of the balance sheet date.

Kinsus Interconnect Technology Corp. Marketable Securities

As of December 31, 2014

Attachment 2

(In Thousands of New Taiwan Dollars)

					As of December 31, 2014
Name of Held		Relationship with			Carrying	Shareholding	Fair Value
Company	Type and Name of Marketable Securities	the Issuer	Financial Statement Account	Shares / Units	Amount	℅	(Note)	Note
Kinsus Interconnect	Money market funds:
Technology Corp.	Capital Money Market Fund		Financial assets at fair value through profit or loss	32,783,435	\$510,667	$-$ %	\$519,614
	Yuanta De-Bao Money Market Fund		Financial assets at fair value through profit or loss	30,422,974	353,891	$-9/6$	359,323
	Yuanta Wan Tai Money Market Fund		Financial assets at fair value through profit or loss	48,495,532	700,000	$-$ %	722,050
	Fuh Hwa Yu Li Money Market Fund		Financial assets at fair value through profit or loss	20,789,636	265,794	$-$ %	275,637
	Fuh Hwa Money Market Fund		Financial assets at fair value through profit or loss	21,596,707	300,000	$-96$	306,950
	Hua Nan Phoenix Money Market Fund		Financial assets at fair value through profit or loss	9,633,540	150,000	$-$ %	154,154
	Taishin Ta Chong Money Market Fund		Financial assets at fair value through profit or loss	33,095,605	450,000	$-$ %	461,727
	Taishin 1699 Money Market Fund		Financial assets at fair value through profit or loss	30,522,218	400,000	$-2/6$	405,500
	FSITC Money Market Fund		Financial assets at fair value through profit or loss	1,168,258	200,000	$-2/6$	204,698
	Mega Diamond Money Market Fund		Financial assets at fair value through profit or loss	41,465,474	500,000	$-$ %	510,286
	Jih Sun Money Market		Financial assets at fair value through profit or loss	31,315,952	450,000	$-9/2$	455,328
	Union Money Market Fund		Financial assets at fair value through profit or loss	35,032,705	450,000	$-%$	454,682
	UPAMC James Bond Fund		Financial assets at fair value through profit or loss	15,322,946	250,000	$-9/6$	251,629
	Subtotal				4,980,352		\$5,081,578
	Add: Valuation adjustments of financial assets held for trading				101,226
	Total				\$5,081,578

Kinsus Interconnect	Stocks:
Technology Corp.	Listed stocks - Pegatron Corporation	Investing company which accounts for the Company using equity method indirectly	Available-for-sale financial assets - current	553,000	\$15,675	0.02%	\$40,369
	Add: Valuation adjustments of available-for -sale financial assets				24,694
	Total				\$40,369

Note: Companies without quotes in the open markets are valued at net equities.

Kinsus Interconnect Technology Corp.

Acquisition of Individual Real Estate with Amount of at Least NT\$300 million or 20% of the Paid-in Capital

For the Year Ended December 31, 2014

Attachment 3

(In Thousands of New Taiwan Dollars)

								Prior Transaction of Related Counter-party
								Relationship
Acquiring			Transaction Transaction		Counter-			with the	Transfer		Price	Purpose and Use	Other
Company	Name of Property	Date	Amount	Payment Status	party	Relationship Owner		Company	Date		Amount Reference	of Acquisition	Terms
Kinsus	Houses and buildings
Interconnect				2014.02.13 \$1,781,850 NT\$ 712,740	Guo-Gong	None	None	None	None	None		Bidding Production	None
Technology	Construction of XinFeng Plant			thousand was	Construction							expansion and
Corp.				paid as of	Co., Ltd.							operation
				December 31,								planning
				2014

Kinsus Interconnect Technology Corp.

Related Party Transactions with Purchase or Sales Amount of At least NT\$100 Million or 20% of the Paid-in Capital

For the Year Ended December 31, 2014

Attachment 4

(In Thousands of New Taiwan Dollars)

						Abnormal Transaction		Notes/ Accounts Payable or Receivable
							Payment/
		Nature of	Purchase/		Payment/		Collection
Company Name	Related Party	Relationship	Sale	Amount	% to Total Collection Term	Unit Price	Term	Ending Balance	% to Total Note $\vert$
Kinsus	Kinsus Interconnect	Investee	Purchase	\$1,526,521	21.35% Payment within 60 Specs of goods		Other vendors	Accounts payable	$(21.06)\%$
Interconnect Technology Corp. Corp.	Technology Suzhou	accounted for using equity			days from the end purchased are of delivery month	different from	also enjoy payment within	\$(247,315)
		method indirectly				others. Cannot be	60 days from
						reasonablely	the end of
						compared.	delivery month

Kinsus Interconnect Technology Corp.

Investees over Which the Company Exercise Significant Influence or Control Directly or Indirectly (Excluding Investees in Mainland China)

As of December 31, 2014

(In Thousands of Foreign Currency / New Taiwan Dollars)

Attachment 5

					Original Investment Amount	Balance as of December 31, 2014			Net Income	Share of Income
				As of December	As of December				(Loss) of the	(Loss) of the
Investor	Investee		Business Location Main Business and Product	31, 2013	31, 2014	Shares	$\%$	Carrying Value	Investee	Investee	Note
Kinsus Interconnect	KINSUS CORP. (USA)	CA. U.S.A.	Designing substrates,	USD500	USD500	500,000 shares	100.00%	\$29,528	\$2,713	\$2,713
Technology Corp.			formulating marketing
			strategy analysis,
			developing new customers,
			researching and
			development new product technology

	KINSUS HOLDING	Samoa	Investing activities	USD166,309	USD166,309	166,308,720 shares	100.00%	\$3,458,036	\$(350,943)	\$(350, 943)
Kinsus Interconnect Technology Corp.	(SAMOA) LIMITED

	Kinsus Investment Co., Ltd.	Taoyuan City	Investing activities	\$398,000	\$398,000	39,800,000 shares	100.00%	\$521,940	\$28,640	\$28,640
Kinsus Interconnect Technology Corp.				(Note)	(Note)

Kinsus Investment	Pegavision Corporation	Taoyuan City	Manufacturing medical	\$212,666	\$286,418	22,088,736 shares	36.81%	\$337,011	\$68,962	\$27,802
Co., Ltd.			equipment

KINSUS HOLDING	KINSUS HOLDING	Cayman Islands	Investing activities	USD72,000	USD72,000	72,000,000 shares	100,00%	USD 40,978	USD (5,804)	USD (5,804)
(SAMOA) LIMITED	(CAYMAN) LIMITED

KINSUS HOLDING	PIOTEK HOLDINGS	Cayman Islands	Investing activities	USD94,309	USD94,309	95,755,000 shares	51.00%	USD 68,281	USD (11,335)	USD (5,781)
(SAMOA) LIMITED	LTD. (CAYMAN)

PIOTEK HOLDINGS	PIOTEK HOLDING	British Virgin	Investing activities	USD139,841	USD139,841	139,840,790 shares	100.00%	USD 133,893	USD (11,335)	USD (11,335)
LTD. (CAYMAN)	LIMITED	Islands

PIOTEK HOLDING	PIOTEK (H.K.)	Hong Kong	Trading activities	USD26	USD26	200,000 shares 100,00%		USD 1.597	USD 221	USD 221
LIMITED	TRADING LIMITED

Pegavision Corporation	PEGAVISION HOLDINGS	Samoa	Investing activities	USD120	USD380	380,000 shares	100.00%	\$2,320	\$(4, 810)	\$(4, 810)
	CORPORATION

Note : The Company's original investment in Kinsus Investment Co., Ltd. was NT\$ 500,000 thousand. Kinsus Investment Co., Ltd. reduced capital by NT\$ 102,000 thousand to offset deficits in 2013.

After the reduction, investment amount reduced to NT\$398,000 thousand.

Kinsus Interconnect Technology Corp.

Marketable Securities Held as of December 31, 2014 (Excluding Investments in Subsidiaries, Associates and Jointly Controlled Entities)

As of December 31, 2014

Attachment 6

									(In Thousands of New Taiwan Dollars)
									Guarantee, Pledge or Other
					As of December 31, 2014				Restricted Conditions
	Type and Name of Marketable	Relationship with the	Financial Statement		Carrying		Fair Value		Carrying
Name of Held Company	Securities	Issuer	Account	Shares (Unit)	Amount	%	(Net Equity)	Shares	Amount	Note
Kinsus Investment Co., Ltd.	Money market funds:
	Taishin Ta Chong Money Market Fund Valuation adjustments of financial	$\blacksquare$	Financial assets at fair value through profit or	829,070	\$11,314	$-90$	\$11,565		\$-
	assets held for trading		loss		251
	Total				\$11,565
Kinsus Investment Co., Ltd. Stocks:	Yi-Shuo Creative Co., Ltd.		Financial assets carried at cost	5,000,000	\$50,000	7.49%	(Note)		\$-
Pegavision Corporation	Money market funds:
	Yuanta Wan Tai Money Market Fund		Financial assets at fair value through profit or	2,554,934	\$38,000	$-\frac{0}{2}$	\$42,291		\$-
	Yuanta RMB Money Market Fund Valuation adjustments of financial assets held for trading		lloss	81,086	4,097 194
	Total				\$42,291

Note: No quotes in active markets and fair values cannot be measured reliably.

Kinsus Interconnect Technology Corp.

Related Party Transactions with Purchase or Sales Amount of At least NT\$100 Million or 20% of the Paid-in Capital

For the Year Ended December 31, 2014

Attachment 7

(In Thousands of US Dollars)

					Transaction Details		Abnormal Transaction		Notes/Accounts Payable or Receivable
Company Name	Related Party	Nature of Relationship	Purchase/ Sale	Amount	$%$ to Total	Payment/ Collection Term	Unit Price	Payment/ Collection Term	Ending Balance	% to Total Note
Piotek Computer (Suzhou) Co., Ltd.	Pegatron Corporation	Parent company	Sales	USD 60,545	39.20%	Payment within 60 days from the end of delivery month	Specs of goods sold are different from others. Cannot be reasonably	No non-related parties to be compared with.	Accounts receivable USD 13,757	42.79%
Piotek Computer (Suzhou) Co., Ltd.	Xiang-Shuo (Suzhou) Trading Limited	Also a subsidiary under the Company's control	Sales	USD 19,059		12.34% Payment within 60 days from the end of delivery month	Specs of goods sold are different from others. Cannot be reasonably compared.	No non-related parties to be compared with.	Accounts receivable USD 1,491	4.64%
Xiang-Shuo (Suzhou) Trading Limited	Piotek Computer (Suzhou) Co., Ltd.	Also a subsidiary under the Company's control	Purchase	USD 19.059		80.48% Payment within 60 days from the end of delivery month	Specs of goods sold are different from others. Cannot be reasonably compared.	No non-related parties to be compared with.	Accounts payable USD (1,491)	$(45.96)\%$
Piotek Computer (Suzhou) Co., Ltd.	Piotek (H.K.) Trading Limited	Also a subsidiary under the Company's control	Sales	USD 30,268		19.60% Payment within 60 days from the end of delivery month	Specs of goods sold are different from others. Cannot be reasonably compared.	No non-related parties to be compared with.	Accounts receivable USD 6,770	21.06%
Piotek (H.K.) Trading Limited	Piotek Computer (Suzhou) Co., Ltd.	Also a subsidiarv under the Company's control	Purchase	USD 30.268		100.00% Payment within 60 days from the end of delivery month	Specs of goods sold are different from others. Cannot be reasonably compared.	No non-related barties to be compared with.	Accounts payable USD (6,770)	$(100.00)\%$
Kinsus Interconnect Technology Suzhou Corp.	Kinsus Interconnect Technology Corp.	Parent company	Sales	USD 52,217		100.00% Payment within 60 days from the end of delivery month	Specs of goods sold are different from others. Cannot be reasonably	No non-related barties to be compared with.	Accounts receivable USD 8,108	100.00%

Kinsus Interconnect Technology Corp.

Receivables from Related Parties of at Least NT\$ 100 Million or 20% of the Paid-in Capital

As of December 31, 2014

Attachment 8

							(In Thousands of US Dollars)
						Amount Received in	Allowance for

							Doubtful Debts
Pegatron Corporation	Parent company	USD 13,757	3.84	S-		ъ-	ъ-
		(Note 1)
Piotek (H.K.) Trading Limited	Also a subsidiary under the Company's control	USD 6,770 (Note 1)	4.85	$S-$		\$-
Kinsus Interconnect Kinsus Interconnect Technology Suzhou Technology Corp.	Parent company	USD 8,108 (Note 1)	7.10	\$-		$S-$
	Related Party	Nature of Relationship	Ending Balance	Turnover Ratio	Amount	Overdue Action Taken	Subsequent Periods

Note 1: Accounts receivable

Kinsus Interconnect Technology Corp.

Statement of Cash and Cash Equivalents

As of December 31, 2014

			(In Thousands of New Taiwan Dollars)
Item	Description	Amount	Note
Petty cash:		\$200	I.Exchange Rate
			USD:NTD=31.65:1
			JPY:NTD=0.2646:1
			GBP:NTD=49.27:1
Savings:			EUR:NTD=38.47:1
Mega International Commercial Bank - LanYa Branch	#00938-6	967,160	2. Cash and Cash equivalents
Shanghai Commercial & Saving Bank - ZhongLi Branch	#01581-8	101,334	were not pledged.
Standard Chartered International Commercial Bank - Tunpei Branch	#00985-8	308,388
Land Bank of Taiwan - ZhongLi Branch	#34180-5	17,581
Taipei Fubon Commercial Bank - BeiTou Branch	#00136-8	12,146
Taipei Fubon Commercial Bank -- BeiTou Branch	#07578-8	134
Taipei Fubon Commercial Bank - ZhongLi Branch	#01822-9	2,316
Citi Bank - Taipei Branch	#16400-9	797
Bank Of Taiwan - BeiTou Branch	#110093-5	792
Taishin International Bank - Jianbei Branch	#03812-1	151,245
KGI Bank - Sungjiang Branch	#81681-0-2	41,482
Checkings:
Standard Chartered International Commercial Bank - Tunpei Branch	#002550-8	20
Foreign currency bank accounts:
Mega International Commercial Bank - LanYa Branch	#01566-9	458,106
Shanghai Commercial & Saving Bank - ZhongLi Branch	#00918-6	2,061
Taipei Fubon Commercial Bank - BeiTou Branch	#01182-8	2,279
Standard Chartered International Commercial Bank - Tunpei Branch	#00928-5	491
Land Bank of Taiwan - ZhongLi Branch	#03355-5	158
Taishin International Bank - Jianbei Branch	#01007-8	200
Citi Bank - Taipei Branch	#16420-3	3
Subtotal		2,066,693
Fixed-term deposits:
Mega International Commercial Bank - Lan Ya Branch		4,980,411
Shanghai Commercial & Saving Bank-ZhongLi Branch		2,335,000
Land Bank of Taiwan-ZhongLi Branch		500,000
KGI Bank - Sungjiang Branch		200,000
Subtotal		8,015,411
Total		\$10,082,304

Kinsus Interconnect Technology Corp.

2. Statement of Financial Assets at Fair Value through Profit or Loss

As of December 31, 2014

(In Thousands of New Taiwan Dollars)
--------------------------------------	--

						Fair Value
Financial Instruments	Shares	Par value(NTD)	Amount	Interest Rates	Acquisition costs	Unit price(NTD)	Amount	Note
Money market funds:
Yuanta De-Bao Money Market Fund	30,422,974	$\blacksquare$	\$353,891		\$353,891	11.8109	\$359,323
Capital Money Market Fund	32,783,435	$\blacksquare$	510,667	$\overline{\phantom{0}}$	510,667	15.8499	519,614
Fuh Hwa Yu Li Money Market Fund	20,789,636	$\overline{\phantom{a}}$	265,794		265,794	13.2584	275,637
Fuh Hwa Money Market Fund	21,596,707	$\blacksquare$	300,000		300,000	14.2128	306,950
Yuanta Wan Tai Money Market Fund	48,495,532	$\blacksquare$	700,000		700,000	14,8890	722,050
FSITC Money Market Fund	1,168,258	$\blacksquare$	200,000		200,000	175.2160	204,698
Hua Nan Phoenix Money Market Fund	9,633,540	$\overline{\phantom{a}}$	150,000		150,000	16.0018	154,154
Taishin Ta Chong Money Market Fund	33,095,605	$\blacksquare$	450,000		450,000	13.9513	461,727
Taishin 1699 Money Market Fund	30,522,218	$\blacksquare$	400,000		400,000	13.2854	405,500
Mega Diamond Money Market Fund	41,465,474	$\overline{\phantom{a}}$	500,000	$\blacksquare$	500,000	12.3063	510,286
Jih Sun Money Market	31,315,952	$\overline{\phantom{a}}$	450,000	$\blacksquare$	450,000	14.5398	455,328
Union Money Market Fund	35,032,705	$\tilde{\phantom{a}}$	450,000		450,000	12.9788	454,682
UPAMC James Bond Fund	15,322,946		250,000		250,000	16.4217	251,629
Subtotal			\$4,980,352		4,980,352		\$5,081,578
Add: Valuation adjustments of financial assets held for trading					101,226
Total					\$5,081,578

Kinsus Interconnect Technology Corp.

3. Statement of Available-for-Sale Financial Assets-Current

As of December 31, 2014

(In Thousands of New Taiwan Dollars)

							Fair Value
Financial Instruments	Shares	Par value(NTD)	Amount			Interest Rates Acquisition costs Cumulative impairments	Unit price(NTD)	Amount	Note
Public company stock:	553,000	\$10	\$5,530	$\rightarrow$	\$15,675	$S-$	\$73.00	\$40,369
Pegatron corporation Add: Valuation adjustments					24,694
Total					\$40,369 --------

Kinsus Interconnect Technology Corp.

4. Statement of Bond Investment with no Active Market-Current

As of December 31, 2014

(In Thousands of New Taiwan Dollars)

						$(1, 1, 1, 1, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0,$
Item	Description	Shares	Par value	Total amount	Interest Rates	Carrying amount	Note
Mega International Commercial Bank - LanYa Branch	Fixed-term deposits	$\blacksquare$	$\sim$	H	$\overline{\phantom{a}}$	\$420,000

$\overline{a}$

Kinsus Interconnect Technology Corp.

5. Statement of Notes Receivable, net

As of December 31, 2014

(In Thousands of New Taiwan Dollars)

Client Name	Amount	Note
Client A	\$1,488	1. Non related parties.
Client B	1,482
Client C	1,156
Client D	232
Subtotal	4,358
Less: allowance for doubtful accounts	٠
$\vert$ Net	\$4,358

Kinsus Interconnect Technology Corp.

6. Steatment of Accounts Receivable, net

As of December 31, 2014

(In Thousands of New Taiwan Dollars)
--------------------------------------	--	--	--	--	--

Client Name	Amount	Note
Client A	\$436,938	1. The amount of individual client included
Client B	224,222	in others does not exceed 5% of the account balance.
Client C	172,956	2. Non related parties.
Others	1,634,123
Subtotal	2,468,239
Less: allowance for doubtful debts	(64, 570)
Net	\$2,403,669

Kinsus Interconnect Technology Corp.

7. Statement of Receivable from Related Parties

As of December 31, 2014

(In Thousands of New Taiwan Dollars)

$\lambda$

Related Parties	Amount	Note
AzureWave Technologies. Inc.	\$(32)	Sale of goods.
AzureWave Technologies (Shanghai) Inc.	1,040
Net	\$1,008

Kinsus Interconnect Technology Corp.

Statement of Other Receivables

As of December 31, 2014

(In Thousands of New Taiwan Dollars)

$\ddot{\phantom{a}}$

Amount	Note
\$355,325
10,831
2,718
23,828
\$392,702

$\sim$

Kinsus Interconnect Technology Corp.

9. Statement of Other Receivables from Related Parties

As of December 31, 2014

(In Thousands of New Taiwan Dollars)

	Amount	Note
Kinsus Interconnect Technology Suzhou Corp.	\$987	The other receivable incurred mainly from disposal of fixed assets, tools and spare parts.
Piotek Computer (Suzhou) Co., Ltd.	8,210
Total	\$9,197

Kinsus Interconnect Technology Corp.

10. Statement of Inventories

As of December 31, 2014

		Amount
Item	$\mathop{\sf Cost}$	Net Realizable Value	Note
Raw materials	\$396,384	\$393,353	1. Inventories are valued at
Supplies & parts	36,841	36,606	lower of cost or net
Work in progress	521,032	991,485	realizable value item by item.
Finished goods	706,718	812,835	2. The insurance coverage for
Merchandises	27,730	28,169	inventories was \$1,365,000
Subtotal	1,688,705	\$2,262,448	thousand as of December 31, 2014.
Less: allowance for inventory valuation losses	(366, 881)		3. Inventories were not pledged.
Net	\$1,321,824

Kinsus Interconnect Technology Corp.

11. Statement of Prepayments

As of December 31, 2014

(In Thousands of New Taiwan Dollars)

Item	Amount	Note
Office supplies	\$16,267
Prepayment for purchases	\$353
١ Prepaid rents	\$13,684
Prepaid insurance	7,160
Others	38,856
Total	\$76,320

Kinsus Interconnect Technology Corp.

Statement of Other Current Assets

As of December 31, 2014

(In Thousands of New Taiwan Dollars)

Item	Amount	Note
Overpaid VAT	\$47,510
Payment on behalf of others	48
Total	\$47,558

Kinsus Interconnect Technology Corp.

Statement of Changes in Long-term Investment Accounted for Under the Equity Method

For the Year ended December 31, 2014

(In Thousands of New Taiwan Dollars)

												Note
500,000	\$25,138		\$4,390	$\bullet$	\$-			\$29,528	\$59.06	\$29,528	None
			(Notel)
				$\sim$
					(Note2)

39,800,000		$\blacksquare$		$\sim$	$\sim$

	\$4,058,620		\$109,372							\$4,009,504





	Shares 166,308,720	As of January 1, 2014 Amount 3,616,524 416,958	Shares $\tilde{\phantom{a}}$	Additions Amount $\overline{\phantom{a}}$ 104,982 (Note3)	Shares	Decrease Amount 158,488 \$158,488	Shares	$\%$ 500,000 166,308,720 39,800,000	As of December 31, 2014 Amount 100.00% 100.00% 3,458,036 521,940 100.00% \$4,009,504	Unit price (NTD) 20.79 13.11	Fair Value/Net assets value Total amount 3,458,036 521,940	Collateral None None

Note1: Including investment gain recognized under equity method amounted to NT\$2,713 thousand and foreign currency statements translation adjustments amounted to NT\$1,677 thousand.

Note2: Including investment loss recognized under equity method amounted to NT\$350,943 thousand and foreign currency statements translation adjustments amounted to NT\$192,455 thousand.

Note3: Including investment gain recognized under equity method amounted to NT\$28,640 thousand and foreign currency statements translation adjustments amounted to NT\$135 thousand, and the increases in capital surplus

due to capital subscription to a long-term investee by giving up part of the Company's preemptive right and the disposal of share of investee amounted to NT\$25,282 thousand and NT\$50,925 thousand, respectively.

Kinsus Interconnect Technology Corp.

Statement Of Changes In Property, Plant and Equipment

For the Year ended December 31, 2014

(In Thousands of New Taiwan Dollars)

Item	As of January 1, 2014	Additions	Disposals	Transfer	As of December 31, 2014	Note
Cost						1. Please refer to Note 8 for
Land	\$1,237,179	\$8,939	\$-	\$120,308	\$1,366,426	more details on property, plant
Buildings	2,464,872		(2,500)	9,708	2,472,080	and equipment under pledge.
Machinery	8,284,351	55,093	(78, 591)	1,416,083	9,676,936	2. The insurance coverage for property,
Transportation	1,525	830		380	2,735	plant and equipment was NT\$18,072,700
Office equipment	8,630	6,196		8,800	23,626	thousand as of December 31, 2014.
Other equipment	2,098,092	44,526	(9, 897)	61,554	2,194,275
Prepaid equipment Construction in progress	1,050,996 192,291	1,874,632 1,260,438		(1,487,346) (129, 487)	1,438,282 1,323,242
Total	15,337,936	3,250,654	(90, 988)	۰	18,497,602

Accumulated depreciation
Buildings	644,443	122,841	(1,269)	$\overline{\phantom{0}}$	766,015
Machinery	4,468,329	1,529,876	(72, 558)		5,925,647
Transportation	237	486		۰	723
Office equipment	3,000	4,992		-	7,992
Other equipment	1,200,556	253,448	(9, 897)	$\blacksquare$	1,444,107
Total	6,316,565	\$1,911,643	$$$ (83,724)	$\tilde{\phantom{a}}$	8,144,484
Subtotal	9,021,371				10,353,118

Less: Prepaid equipment	1,050,996				1,438,282

Net	\$7,970,375				\$8,914,836

Kinsus Interconnect Technology Corp.

Statement of Changes in Intanbiagle Assets-Cost of Computer Software

For the Year ended December 31, 2014

(In Thousands of New Taiwan Dollars)

$\sim$

Item	As of January 1, 2014	Additions	Decrease	As of December 31, 2014
Cost of computer software	\$7,408	\$25,231	\$(20,712)	\$11,927

Kinsus Interconnect Technology Corp.

Statement of Refundable Deposits

As of December 31, 2014

(In Thousands of New Taiwan Dollars)

		(In Thousands of New Tarwan Dollars)
Item	Amount	Note
Customs bonded factories deposits	\$3,057
Land and house leasing deposit	1,687
Others	603
Total	\$5,347

$\bar{\beta}$

Kinsus Interconnect Technology Corp.

Statement of Short-term Loan

As of December 31, 2014

(In Thousands of New Taiwan Dollars)

$\sim$

Description	Type	Blance, End of Year	Contract Period	Interest Rates	Collateral
Mega International Commercial	Unsecured loans	\$730,798	2014.11.29-2015.11.28	Note	None
Bank-LanYa Branch

Note: As of December 31, 2014, the interest rate intervals for short-term loans were $0.88\% \sim 0.89\%$ .

Kinsus Interconnect Technology Corp.

18. Statement of Notes Payable

As of December 31, 2014

(In Thousands of New Taiwan Dollars)

Vendor Name	Amount	Note
Mec Taiwan Company Ltd.	\$7,350	The amount of individual vendor included
Hsin House International Co., Ltd.	5,918	in others does not exceed 5% of the
Chang Chun Petrochemical Co., Ltd.	5,275	account balance and not related parties.
Nan Ya Plastics Corporation	4,472
Joint Fair Enterprise Co., Ltd.	2,834
Formosa Auto Leasing Co., Ltd.	2,636
Pro Auto Leasing Co., Ltd.	2,332
Taiwan Taiyo Ink Co., Ltd.	2,184
Others	6,863
Total	\$39,864

Kinsus Interconnect Technology Corp.

19. Statement of Accounts Payable

As of December 31, 2014

(In Thousands of New Taiwan Dollars)

Vendor Name	Amount	Note
Mitsubishi Corporation	\$134,617	The amount of individual vendor included
Taiwan Uyemura Co., Ltd.	94,244	in others does not exceed 5% of the
Hitachi Chemical Co. (Hong Kong) Ltd.	67,409	account balance and not related parties.
Others	630,799
Total	\$927,069

$\ddot{\phantom{a}}$

Kinsus Interconnect Technology Corp.

20. Statement of Payables to Related Parties

As of December 31, 2014

(In Thousands of New Taiwan Dollars)

$\bar{z}$

Related Parties	Amount	Note
Kinsus Interconnect Technology Suzhou Corp.	\$247,315	Purchase of goods.

$\ddot{\phantom{a}}$

Kinsus Interconnect Technology Corp.

21. Statement of Other Payables

As of December 31, 2014

(In Thousands of New Taiwan Dollars)

Item	Amount	Note
Employee Bonus	\$731,876	The amount of individual vendor included
Accrued Payroll	600,107	in others does not exceed 5% of the
Accrued Manufacturing Overhead - outsourced	157,515	account balance.
Accrued Insurance	38,383
Accrued Repair And Maintenance Expense	135,055
Compensation Payable To Directors And Supervisors	32,099
Accrued Pension Expenses	15,445
Accrued Commission Expenses	180,751
Accrued Testing Disposable Expense	74,459
Accrued Miscellaneous Purchase	21,176
Accrued Professional Service Fees	6,480
Accrued Interest Payable	819
Payables On Equipment	895,932
Accrued Manufacturing Overhead-outsourced-related parties	9,318
Accrued Commission Expense-related parties	3,386
Accrued Travelling Expense-related parties	14
Others	78,705
Total	\$2,981,520

Payables On Equipment
Orc Manufacturing Co., Ltd.	\$225,014
Guo Gong Construction Company Limited	218,835
Dar Harnq Industry Co., Ltd. (Hong Kong)	94,460
Shin Wu Machinery Trading Co., Ltd.	80,359
Others	277,264
Total	\$895,932

$\ddot{\phantom{a}}$

$\overline{a}$

Kinsus Interconnect Technology Corp.

22. Statement of Changes in Current Tax Liablities

For the Year ended December 31, 2014

		(in Thousands of New Taiwan Dollars)
Item	Amount	Note
Balance as of January 1, 2014	\$1,066,845
Add: Income tax accrual for 2014	537,789
10% surtax on 2013 undistributed earnings	141,511
Less: Investment tax credits used	(141, 511)
Income tax payment for 2013	(491, 360)
Additional tax payment for 2011 due to tax assessment	(3,052)
Interest withheld	(7, 157)
Interim temporary tax payment	(209, 274)
Balance as of December 31, 2014	\$893,791

(In Thousands of New Taiwan Dollars)

Kinsus Interconnect Technology Corp.

23. Statement of Other Current Liabilities

As of December 31, 2014

(In Thousands of New Taiwan Dollars)

Item	Amount	Note
Receipts in advance		The amount of individual vendor included
IMI SOLUTION CO.	\$1,453	in others does not exceed 5% of the
CHINA UNICHIP TECHNOLOGIES INC.	761	account total.
ETRA TECHNOLOGIES LIMITED	620
UNISEM CHENGDU CO., LTD.	531
SIGNETICS KOREA CO., LTD.	319
MEMS SOLUTION INC.	309
Others	266
Total	4,259

Other current liabilities
Temporary receipts	18,964
Receipts under custody	9,127
Others	60
Total	28,151

Current portion of long-term loans	459,008

Total other current liabilities	\$491,418

$\mathcal{L}_{\mathcal{A}}$

Kinsus Interconnect Technology Corp.

24. Statement of Long-Term Loans

As of December 31, 2014

(In Thousands of New Taiwan Dollars)

Lenders	Description	Year maturity	Interest Rates	Amount	Reimbursement	Collateral
Mega International Commercial Bank-LanYa Branch	Secured bank loans	2016.12.15	Note	\$93,684	A term is defined as every 3 months starting from the initial draw-down date.	Please refer to Note 8
					Grace period is 2 years (8 terms).
					The rest is repayable in installments of equal amount for 20 terms.

Mega International Commercial Bank - LanYa Branch	Secured bank loans	2015.10.27	Note	47,475	Interest shall be paid for the first 12 months from the initial draw-down date.	Please refer to Note 8
					Starting from the 13th month, interest shall be paid monthly
					with principal repaid every 3 months.

Mega International Commercial Bank - Lan Ya Branch	Unsecured bank loans	2015.10.27	Note	89,675	A term is defined as every 3 months starting from the initial draw-down date.	None
					Grace period is 2 years (8 terms).
					The rest is repayable in installments of equal amount for 12 terms.

Mega International Commercial Bank - Lan Ya Branch	Unsecured bank loans	2018.08.12	Note		189,900 The first year is the grace period from the initial draw-down date.	None
					Starting from the 13th month, interest shall be paid monthly with principal
					repaid every 3 months.
						Please refer to Note 8
Shanghai Commercial & Saving Bank - ZhongLi Branch	Secured bank loans	2015.07.15	Note	30,859	A term is defined as every 3 months starting from the initial draw-down date. The loan is repayable in installments of equal amount for 20 terms.

Taipei Fubon Commercial Bank - BeiTou Branch	Unsecured bank loans	2017.12.15	Note	474,750	One year after the initial draw-down date is considered term one and	None
					the following terms are defined as every 6 months since then.
					The principal and interest are repayable in installments of equal amount for 5 terms.

Total				926,343
Less: Current portion of long-term loans				(459,008)
Non-current portion of long-term loans				\$467,335

Note: As of December 31, 2014, the interest rate intervals for long-term loans were 0.72%~1.5970%.

Kinsus Interconnect Technology Corp.

25. Statement of Deferend Tax Liabilities-Non-Current

As of December 31, 2014

(In Thousands of New Taiwan Dollars)

Item	Amount	Note
Unrealized exchange gain	\$1,765
Exchange differences from unrealized cumulative translation adjustment	52,231
Total	\$53,996

$\bar{z}$

Kinsus Interconnect Technology Corp.

26. Statement of Changes in Accrued Pension Liabilities

For the Year ended December 31, 2014

Item	Amount	Note
As of January 1, 2014	\$49,351
Add: Pension costs	1,219
Less: Benefits paid to Taiwan bank trust account	(5,192)
Actuarial gains and losses for the period	(15,710)
As of December 31, 2014	\$29,668

$\overline{\phantom{a}}$

Kinsus Interconnect Technology Corp.

Statement of Operating Revenues

For the Year ended December 31, 2014

Item	Quanity	Amount
BGA Substrate	5,214,439 thousand PCS	\$17,069,494
Service revenue		186,656
Others		2,034,087
Total Net Operating revenues		\$19,290,237

$\bar{z}$

Kinsus Interconnect Technology Corp.

Statement of Operating Costs

For the Year ended December 31, 2014

(In Thousands of New Taiwan Dollars)
Item	Amount	Note
Direct Materials
Beginning of year	\$335,320
Add: Raw materials purchased	3,759,731
Less: Ending balance	(396, 384)
Cost of raw materials sold directly	(273, 257)
Transferred to supplies and parts	(7, 348)
Scrapped	(45,074)
Loss from physical taking	(34, 830)
Transferred to other accounts	(987)
Direct materials used	3,337,171
Supplies and parts
Beginning balance	33,262
Add. supplies and parts purchased	1,904,191
Transferred from direct materials	7,348
Less: Ending balance Supplies and parts sold directly	(36, 841)
Scrapped	(14,985)
	(164)
Transferred to other accounts	(76, 965)
Supplies and parts used	1,815,846
Direct labor	1,303,956
Manufacturing overhead Manufacturing cost	5,288,414 11,745,387
Add: work in process, beginning balance	499,393
Transferred from finished goods	649,250
Transferred from merchandise	13,268
Less: work in process, ending balance	(521, 032)
Loss from physical taking	(105)
Transferred to other accounts	(1, 325)
Cost of finished goods	12,384,836
Add: finished goods, beginning balance	477,912
Less: finished goods, ending balance	(706, 718)
Transferred to work in process	(649, 250)
Transferred to merchandise	(14,752)
Transferred to other accounts	(287, 390)
Cost of goods sold at normal production level	11,204,638
Merchandise cost
Beginning balance	6,764
Add: Merchandise purchased	1,484,733
Transferred from finished goods	14,752 (27, 730)
Less: Ending balance Transferred to work in process	(13, 268)
Scrapped	(402)
Transferred to other accounts	(19)
Cost of merchandise sold	1,464,830
Cost of raw materials sold directly	273,257
Cost of supplies and parts sold directly	14,985
Loss from inventory valuation	194,115
Loss from inventory scrapped	45,640
Losses from physical taking	34,935
Revenue from sale of scraps	(215, 250)
Total	\$13,017,150

Kinsus Interconnect Technology Corp.

Statement of Manufacting Overhead

For the Year ended December 31, 2014

Item	Amount	Note
Indirect labor	\$612,477
Employee bonus	440,618
Repair and maintenance	546,375
Utilities	768,559
Insurance	179,357
Manufacturing overhead - outsourced	707,855
Depreciation	1,804,313
Meals	89,993
Employee benefits	31,397
Import expense	28,322
Miscellaneous purchase	31,010
Others	48,138
Total	\$5,288,414

Kinsus Interconnect Technology Corp.

Statement of Selling

For the Year ended December 31, 2014

	(In Thousands of New Taiwan Dollars)
--	--------------------------------------	--	--	--

$\frac{1}{2}$

Item	Amount	Note
Salaries and wages	\$54,478
Employee bonus	12,365
Travelling	27,164
Shipping expense	21,854
Depreciation	16
Meal	1,873
Commission	257,534
Others	1,372
Total	\$376,656

Kinsus Interconnect Technology Corp.

31. Statement of General and Administrative

For the Year ended December 31, 2014

Item	Amount	Note
salaries and wages	\$174,891
Employee bonus	40,321
Remuneration of directors and supervisors	32,913
Advertisement	890
Utilities	27,962
Insurance	19,469
Taxes and duties	21,631
Depreciation	75,490
Amortization	20,712
Meal	4,094
Training	2,306
Cleaning	32,467
Repair and maintenance	15,005
Security	18,112
Professional fee	18,351
Miscellaneous purchase	27,924
Others	92,176
Total	\$624,714

(In Thousands of New Taiwan Dollars)

Kinsus Interconnect Technology Corp.

32. Statement of Research and Development

For the Year ended December 31, 2014

(In Thousands of New Taiwan Dollars)

Item	Amount	Note
Salaries and wages	\$218,153
Employee bonus	52,376
Insurance	18,609
Depreciation	31,824
Meal	7,325
Materials utilized for testing	\$396,149
Testing	235,069
Others	12,078
Total	\$971,583

Kinsus Interconnect Technology Corp.

33. Statement of Non-Operaring Incomes and Expenses

For the Year ended December 31, 2014

(In Thousands of New Taiwan Dollars)

Item	Description	Amount
Other incomes
	Interest income	\$71,135
	Dividend income	1,531
	Other income-others	40,436
Total		\$113,102

Other gains and losses
	Loss on disposal of property, plant and equipment	\$(629)
	Foreign exchange gains, net	23,921
	Gain on financial assets at fair value through profit or loss	27,787
	Gain on disposal of investments	24,691
Total		\$75,770

Finance costs
	Interest on borrowings from banks	\$19,712

Share of profit or loss of
subsidiaries, associates and	Share of profit or loss of subsidiaries,	\$319,590
joint ventures	associates and joint ventures

AI assistant

KINSUS — Audit Report / Information 2014

52304_rns_2014-10-27_3582b5c3-378e-4725-857d-1bdbddfc1aa6.pdf

KINSUS INTERCONNECT TECHNOLOGY CORP. PARENT-COMPANY-ONLY FINANCIAL STATEMENTS WITH AUDIT REPORT OF INDEPENDENT ACCOUNTANTS AS OF DECEMBER 31, 2014 AND 2013 AND FOR THE YEARS THEN ENDED

English Translation of Financial Statements and a Report Originally Issued in Chinese

Parent-company-only financial statements

English Translation of an Audit Report Originally Issued in Chinese REPORT OF INDEPENDENT AUDITORS

To: the Board of Directors and Shareholders of Kinsus Interconnect Technology Corp.

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese Kinsus Interconnect Technology Corp. PARENT-COMPANY-ONLY BALANCE SHEETS-(Continued) As of December 31, 2014 and 2013 (Amounts Expressed in Thousands of New Taiwan Dollars)

Kinsus Interconnect Technology Corp. PARENT-COMPANY-ONLY STATEMENTS OF COMPREHENSIVE INCOME For the Years Ended December 31, 2014 and 2013 (Amounts Expressed in Thousands of New Taiwan Dollars, Except Earnings Per Share)

Kinsus Interconnect Technology Corp.

PARENT-COMPANY-ONLY STATEMENTS OF CHANGES IN EQUITY

For the Years Ended December 31, 2014 and 2013

Kinsus Interconnect Technology Corp.

$1.$ HISTORY AND ORGANIZATION

2. DATE AND PROCEDURE OF AUTHORIZATION FOR FINANCIAL STATEMENTS ISSUANCE

3. NEWLY ISSUED OR REVISED STANDARDS AND INTERPRETATIONS

IFRS 3 "Business Combinations"

IFRS 7 "Financial Instruments: Disclosures"

IAS 1 "Presentation of Financial Statements"

IAS 34 "Interim Financial Reporting"

IFRIC 13 "Customer Loyalty Programmes"

(e)IAS 12 "Income Taxes" – Deferred Taxes: Recovery of Underlying Assets

(g)IFRS 11 "Joint Arrangements"

(i)IFRS 13"Fair Value Measurement"

$(j) IAS$ 1 "Presentation of Financial Statements" – Presentation of Items of Other Comprehensive Income

(k)IAS 19 "Employee Benefits" (Revised)

(I)IFRS 1 "First-time Adoption of International Financial Reporting Standards" $-$ Government Loans

$(m)$ IFRS 7 "Financial Instruments: Disclosures" $-Disclosures$ $-Off setting$ Financial Assets and Financial Liabilities

$(n)$ IAS 32 "Financial Instruments: Presentation" $-Off$ setting Financial Assets and Financial Liabilities

IFRS 1 "First-time Adoption of International Financial Reporting Standards"

IAS 1 "Presentation of Financial Statements"

IAS 16 "Property, Plant and Equipment" (Amendment)

IAS 32 "Financial Instruments: Presentation" (Amendment)

IAS 34 "Interim Financial Reporting" (Amendment)

(q)IFRS 10 "Consolidated Financial Statements" (Amendment)

(a) IAS 36 "Impairment of Assets" (Amendment)

(d)IAS 19 "Employee Benefits" (Defined benefit plans: employee contributions)

IFRS 2 "Share-based Payment"

IFRS 3 "Business Combinations"

IFRS 8 "Operating Segments"

IFRS 13 "Fair Value Measurement"

IAS 16 "Property, Plant and Equipment"

IAS 24 "Related Party Disclosures"

IAS 38 "Intangible Assets"

IFRS 3 "Business Combinations"

IFRS 13 "Fair Value Measurement"

IAS 40 "Investment Property"

(g)IFRS 14 "Regulatory Deferral Accounts"

(1) IFRS 9" Financial Instruments"

(m)IAS 27"Separate Financial Statements" — Equity Method in Separate Financial Statements

IFRS 5 "Non-current Assets Held for Sale and Discontinued Operations"

IFRS 7 "Financial Instruments: Disclosures"

IAS 19 "Employee Benefits"

IAS 34 "Interim Financial Reporting"

$(p)$ IAS 1 "Presentation of Financial Statements" (Amendment):

$4.$ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Statement of compliance

(2) Basis of preparation

(3) Foreign currency transactions

(7) Financial instruments

A. Financial assets

Financial assets at fair value through profit or loss

Available-for-sale financial assets

Loans and receivables

Impairment of financial assets

Derecognition of financial assets

B. Financial liabilities and equity instruments

Classification between liabilities or equity

Equity instruments

Financial liabilities

Financial liabilities at fair value through profit or loss

Financial liabilities at amortized cost

Derecognition of financial liabilities

C. Fair value of financial instruments

(8) Inventories

$(11)$ Intangible assets

(13) Revenue recognition

Sale of goods

Customer Loyalty Programmes

KINSUS Audit Report / Information 2014

English Translation of Parent-Company-Only Financial Statements and Footnotes Originally Issued in Chinese Kinsus Interconnect Technology Corp.
Notes to Parent-Company-Only Financial Statements (Continued)