TSE:2301 www.liteon.com

ANNUAL REPORT Lite-On Technology Corporation

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Lite-On Group 40[th] Anniversary

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CONTACT INFORMATION

Spokesperson:

Brownson Chu

General Manager, Finance Department Tel: 886-2-8798-2888

e-mail: [email protected]

Acting Spokesperson:

Julia Wang

Senior Director, Investor Relations/Public Relations Tel: 886-2-8798-2888 e-mail: [email protected]

Global Headquarter:

No. 392, Ruey Kuang Road, Neihu, Taipei 114, Taiwan, R.O.C. Tel: 886-2-8798-2888

Major Factory:

No. 90, Chien-I Road, Chung Ho City, Taipei 235, Taiwan, R.O.C. Tel: 886-2-2222-6181

Stock Affairs Department:

1F, No. 392, Ruey Kuang Road, Neihu, Taipei 114, Taiwan, R.O.C. Tel: 886-2-8798-2301 www.liteon.com

CPAs:

Jr-Shian Ke and Ching-Fu Chang Deloitte & Touche

12F, No. 156, Sec. 3, Min-Sheng E. Road, Taipei 105, Taiwan, R.O.C. Tel: 886-2-2545-9988 www.deloitte.com.tw

GDR and related information:

Citibank, N.A.

www.londonstockexchange.com & www.citi.com/dr

Lite-On Technology Corporation website: www.liteon.com

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Contact Information

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1. Letter to Shareholders

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3. Corporate Governance

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4. Capital and Shares

4.1 The Top-10 Shareholders and Information of Related Parties

4.2 The Structure of Shareholders

4.3 Change in the Proportion of Shareholding among the Directors, Managers, and Major Shareholders

3.1 Introduction

Members of Top Management

Business Philosophy

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2. Corporate Overview

2.1 Company Profile

2.2 Lite-On Corporate Values

2.3 Organization Chart

3.1.1 Major Resolutions of the General Meeting

 - 3.1.2 Board of Directors

 - 3.1.3 Audit Committee

3.1.4 The Compensation Committee
3.1.5 The Growth Strategic Committee
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 - 3.2 Anti-Corruption
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- 3.3 Corporate Risk Management
3.4 Information Regarding Board Members and Management Team
3.5 Statement of Internal Control System

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5. Financial Information

5.1 Consolidated Financial Statements of 2015

5.2 Parent Company Only Financial Statements of 2015

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Members of Top Management

Business Philosophy

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Spirit

• Passion

Excellence
Innovation
Growth

Vision

A World-Class Excellent Company

Best Partner in Opto-Electronic, Eco-Friendly and Intelligent Technologies

Corporate Citizenship: Globalization / Environmental protection / Social responsibility.
Industry Leader: No.1 global market position.

Raymond Soong Chairman of Lite-On Group

Warren Chen Vice Chairman and Group CEO of Lite-On Group

Profitability: Being up to the highest industry standard.
Governance: Transparency/ Independence/ Fairness.
Size of Organization: Over 10 billion US dollars in revenue.

Mission

Long-Term Mission: Become the Absolute #1 in Our Industry Mid-Term Mission:

Prioritize investment in energy saving, environmentally friendly and smart technologies; enhance product portfolio and profit
Expand to emerging markets

Belief

Excellent global time-to-market, time-tovolume capability; optimize global operation (industry #1 operation excellence)
Customer Satisfaction
Excellence in Execution
Innovation
Integrity

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Lite-On Technology Corporation 2015 Annual Report‧ 2

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Letter to Shareholders

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Dear Shareholders,

Despite the lower demand for products and services in the global information and communication industries in 2015, the Lite-On Group has been focusing on profits, steadying operations and increasing shareholders’ return on equity as our operational strategies. We have shown an increase in profits through our ability to execute and compete. Cloud computing, LED lighting, automotive electronics, biomedical technology, and industrial automation were the five Internet of Things (IoT) applications that we concentrated on as we transformed ourselves. In each and every application area, we have consolidated business across areas and invested aggressively in resources, research and team to expand business. We have used One LiteOn’s advantage as our new re-starting point. In 2015, LiteOn’s global consolidated revenue amounted to NT$216.929 billion. As part of the overall revenue, non-PC-related products exceeded 60%. Our net profit after taxes was NT$7.223 billion for the year and our annual earnings per share (EPS) reached NT$3.11. This represented a yearly growth of 11%.

Operating Performance

All core products of LiteOn have continued to grow steadily in 2015. In recent years, we have been aggressively growing our non-PC areas. We are gradually seeing results in the cloud computing, high-end cameras and LED lighting areas. In 2015, they have not only grown steadily but will continue to be the growth areas and profit centers in 2016. The optoelectronic department benefited from the increase in market demand for LED lighting, consumer electronics and portable devices. It also benefited from increased production in camera modules and an increase market share in high-end smart phones. With the increase in demand for cloud application server power management systems and portable devices, our revenue in this area rose to a record high. In our core business groups, we saw an expansion in market share for high-end server casings and input devices (peripherals such as keyboards and mice), an increase in delivery of tablet PC peripheral applications and smooth delivery of the new laser models of multifunction machines. All the above contributed to continued growth in revenue for the information product division. Market demand for storage devices increased and gaming-related products rose nearly 10% in revenues.

The five IoT application areas of cloud computing, LED lighting, automobile electronics, medical biotechnology, and industrial automation were LiteOn’s main focal points as it transformed itself. Development in new business areas has taken off and research and innovation have led into operations, scaling up and a new wave of growth momentum. In 2015, LiteOn successfully introduced data center power management systems by providing innovative and flexible cloud applications for critical infrastructure power management, remote backup, and remote monitoring as comprehensive solutions. Our electric car chargers have received technical and specification certifications from Europeran and American countries and our customers and product installations have increased substantially. In the area of LED lighting, LiteOn not only provided LED lighting products to car manufacturers around the world but is also zealously developing integrated optical censors in new application areas for monitoring heart rates, directions, environmental colors and gesture controls. With the development self-driving vehicles in full swing, LiteOn has built smart sensing modules to be used in various driving situations. In the area of intelligent manufacturing, after successfully developing 3D printing and scanning technology, we have led the industry in becoming the world’s first company to build mobile phone antennas through 3D printing. Such antennas have been used with smartphones manufactured by international brand companies. Because they are produced completely without the process of plating and use green recyclable materials, the impact on the environment is greatly reduced and the customers have offered high praises. LiteOn’s own biomedical technology brand, Skyla®, has successfully entered the global biotechnology healthcare market, developing automated biochemical analyzers and glycated hemoglobin analyzers. In March of 2016, we announced the establishment of the first overseas biotechnology research and development center

in Singapore geared towards the emergency and remote care markets. This integrates our dual advantages of product design and product manufacturing and allows us to zealously develop highly competitive point-of-care products.

Corporate Social Responsibility

Nationally, LiteOn has received CommonWealth Magazine’s Benchmark Enterprise Award nine consecutive years, the Taiwan Corporate Sustainability Award four times, and Global Views Monthly’s Excellence in Corporate Social Responsibility Award eight times. Internationally, LiteOn has held a place on the Dow Jones Sustainability Index (DJSI) for five years in a row and a place on the Morgan Stanley Sustainability Report for two years in a row. We have also been featured on the A List in the Climate Disclosure Leadership Index (CDLI). Our highly transparent information disclosure measures earned us the highest ranking of A++ on the TWSE (Taiwan Stock Exchange) two consecutive years.

Future Outlook

As the technology industry of traditional hardware manufacturing rapidly crosses over to big data, smart LED lighting, automobile electronics, medical biotechnology, smart home systems, intelligent manufacturing, and IoT applications, there is need for careful integration with existing industries or a replacement of them. The global economic environment is facing a variety of uncertainties. As we cross our 40th anniversary threshold, what is most important to LiteOn is to face this new wave on a new starting point.

Looking ahead, LiteOn will continue to strengthen its production advantage and operational structure. We will eagerly participate in the development of new applications and use a multi-directional approach to create sustainable growth and achieve our developmental goals of transformation and advancement. With the advantages of an elite, world-class company, LiteOn is committed to becoming the best choice for a business partner for any global customer seeking innovative design, hardware manufacturing and applications in the areas of light, electricity, energy conservation and smart technology. We have efficiently integrated the eight business units of Mobile Mechanics, PID, Power Systems, Storage, MEC, CDSS, OPS and the New Business unit. This was a display of our institutional spirit of passion, excellence, innovation and growth as well as an exercise in flexibility and creativity for the One LiteOn team. We will eagerly seek out the next wave of growth and market opportunities to demonstrate One LiteOn’s holistic productivity and competitiveness.

In the past 40 years, LiteOn has consistently faced a variety of challenges. In overcoming each challenge, it has grown and attained great results. We hope that this spirit can be sustained generation after generation, making LiteOn an asset for society and an ever-lasting and ever-growing Taiwanese enterprise. This will require the persistence and effort of each member of our team as well as the support and affirmation of every customer, supplier, business partner, shareholder and society at large. Together, we will build a centenarian corporation out of LiteOn.

Raymond Soong Chairman of Lite-On Group

Warren Chen Vice Chairman and Group CEO of Lite-On Group

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Lite-On Technology Corporation 2015 Annual Report‧

Corporate Overview

2.1 COMPANY PROFILE

Established: 1975/6/2 Date of Listing: 1983/1/26 Company Code: 2301 Paid-in-Capital: NT$ 23.3 B (as of December 2015)

2.2 Lite-On Corporate Values

Customer Satisfaction, Excellence in Execution, Innovation, and Integrity are the guiding principles, commitments, and beliefs of Lite-On Technology. These values are applied throughout the company’s daily business operations and management.

Customer Satisfaction

About Lite-On Technology

Established in 1975, the Lite-On Group, a leading global organization and major player in optoelectronic components industry, envisions being “the Best Partner in Opto-electronic, Eco-friendly and Intelligent Technologies.” The company serves customers from communication, computer, consumer electronics, LED lighting, cloud computing and automotive electronics.

For more than 40 years Lite-On has concentrated on establishing its unique competitive advantages in mass production. Through resource integration and management, the company maximizes the returns from a diverse product portfolio to realize excellent growth both in revenue and profits. Every product line at Lite-On is aimed to be the largest in Taiwan and global top 3 in terms of market size. As technology advances with time, Lite-On image business becomes the largest in Taiwan. It is also one of the top 2 suppliers of optical drives, the top 1 supplier of notebook power supplies and one of the top 2 keyboard suppliers in global markets. Lite-On is also the world’s second largest supplier of power supplies, one of the top 3 camera module suppliers, the No. 1 supplier of LED street lights by market share in North America and also the top 1 supplier by volume in Taiwan. In 2014, Lite-On successfully completed the consolidation of nine subsidiaries under the “One Lite-On” program. The core business strategy remains focused on advancing resource utilization, using automation to optimize production and efficiency, and promoting lean production to transform the overall production process and productivity. In the long-term, the focus is on profitability, operation excellence and enhancing shareholder returns to lay down the foundation for a sustainable enterprise.

As the best partners for our customers, we attentively listen to their needs, mastering market trends and using our strong expertise to fulfill their goals.

Excellence in Execution

With outstanding execution, we dedicate ourselves to fulfilling our commitments to customers, while creating innovative competitive advantages.

Innovation

With open minds and innovative technology, we are at the forefront of the mass production of next-gen technology.

Integrity

We emphasize integrity, transparency, and doing the right thing to earn the respect of our employees and trust of our customers and stakeholders to ensure solid and sustainable business operations.

In recent years, Lite-On has actively moved beyond the information and communication technology industry into fields such as LED lighting, automotive electronics, medical and biotech, and cloud computing, which have generated a new wave of revenue growth. These include energy-saving products such as indoor/outdoor LED lighting and automotive LEDs; power management systems and solid state drive used in data centers; and automotive electronics; as well as energy storage products such as electric vehicle charging equipment, wireless charging and quick charging battery modules.

The global technology industry is now set to welcome a new wave of changes. Lite-On hopes to leverage our existing advantage as a world-class enterprise in this age of changes and challenges to become the best partner of global customers stimulating innovations and developing applications for opto-electronic, eco-friendly and intelligent technologies.

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Lite-On Technology Corporation 2015 Annual Report‧

Corporate Governance

2.3 Organization Chart

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Audit Committee Shareholder’s Meeting
Compensation Board of Directors Corporate
Committee Group Chairman Internal Audit
Growth Strategic
Committee Vice Chairman & Group CEO Stock Affairs
CSER Office IR/PR
Business Function
Regions
Units Units
Mobile Strategy &
US NMEC Legal / IP
Mechanics Investment
EU PID CDSS FIN MOE
Power Operational
SGP OPS ICC
System Controlling
China New Manufacturing
Storage HR
Operations Business Technology
OSHM
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3.1 Introduction

Lite-On emphasizes transparent and effective corporate governance and has drafted a corporate governance framework and implemented practices in accordance with the Company Act, Securities and Exchange Act, and other relevant laws and regulations. The company continues to improve its management performance, while safeguarding the rights and interests of investors and other stakeholders.

Lite-On’s corporate governance milestones:

In 2007, the company introduced the role of independent director to replace supervisors, and established its first Audit Committee. In 2008 and 2010, a Compensation Committee and a Growth Strategic Committee were established respectively under the board of directors.
Lite-On places high emphasis on the complete, timely, fair and transparent disclosure of information. In addition to publishing financial data, statements, annual reports and material information onto the Market Observation Post System (MOPS), Lite-On also makes this information accessible from its website for the convenience of local and foreign investors. (www.liteon.com)
The company will continue to pursue sound corporate governance and the transparency, timeliness, and fairness of financial information disclosure. In 2015, Lite-On was rated A++ by the Securities and Futures Institute during its Information Disclosure Evaluation. In 2016, Lite-On was rated top 5% in Corporate Governance Evaluation arranged by Taiwan Stock Exchange (TWSE).
In 2015, Lite-On’s IMG site at Guangzhou and AE site at Kaohsiung both obtained Product Liability Insurance AAA Certification from ACE Group, the world’s most creditworthy certifier. So far, twelve of the company’s plant sites have obtained Product Liability Insurance AAA Certification, and Lite-On has set a goal for all plant sites to obtain AAA certification.

Lite-On’s Board of Directors, Audit Committee, Compensation Committee and Growth Strategic Committee perform their duties in accordance with the “Board of Directors Meeting Rules,” “Audit Committee Organizational Rules,” “Compensation Committee Organizational Rules,” and “Growth Strategic Committee Organizational Rules.

3.1.1 Major Resolutions of the General Meeting

The Company held a regular session of the General Meeting of 2014 on June 24th 2015 at the International Conference Center of Lite-On Technology Building located at No. 392, Rai Guang Road, 1/F, Neihu, Taipei. Major resolutions and the status of execution are shown below:

i. Adoption of 2014 Financial Statements

ii. Adoption of the Proposal for Appropriation of 2014 Earnings

iii. Proposal for dividends and employee bonuses payable in newly-issued shares of common stock for 2014 iv. Amendment to “Regulations Governing Loaning of Funds and Making of Endorsements/guarantees” v. Amendment to “Rules and Procedures of Shareholders’ Meeting”

vi. Amendment to “Regulations Governing Election of Directors”

All above resolutions have exceeded legal requirement of the voting numbers and been approved in the AGM.

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Lite-On Technology Corporation 2015 Annual Report‧

3.1.2 Board of Directors

The company’s directors are elected according to its “Director Election Policy,” where candidates are nominated based on the system stipulated in Article 192-1 of the Company Act. The company is required by law to announce before the book closure date of its annual general meeting the period of directors’ (including independent directors) nomination (no less than 10 days) and the number of directors (including independent directors) to be elected. The list of director candidates (including independent directors) needs to be reviewed by the board to make sure that all candidates are qualified (including independent directors) before the election commences during the annual general meeting.

Announcement of the Board of Directors’ resolution on capital reduction through cancellation of treasury stocks and the record date.
Lite-On Technology Corp. announced the results of it’s operations for the first three quarters of Y2015.
(8) BOD resolutions on 2015/11/19
Change in internal audit officer.
(9) BOD resolutions on 2016/03/25
Board of Directors’ resolution on the schedule and agenda of year 2016 shareholders’ meeting.

The board consists of 11 members; all of whom are elected by shareholders. Board members currently include one Chairman; six institutional investor representatives from Lite-On Capital, Dorcas Investment Co. Ltd., Ta-Sung Inv Co. Ltd. and Yuan Pao Development & Inv. Co., Ltd.; one natural-person director; and three independent directors. These members come from a broad variety of backgrounds and experience, and are capable of fulfilling their duties. They have been given the duty to exercise proper governance of the board of directors, to supervise/appoint/instruct the management, and to oversee the company’s financial, social, and environmental performance in ways that maximize stakeholders’ interests.

Board members’ backgrounds, education, concurrent roles at other companies etc and functioning of the board of directors as well as various functional committees have already been disclosed in the company’s annual report. The annual report is accessible on the Market Observation Post System and from the company’s website (www.liteon.com).

According to Lite-On’s “Board of Directors Meeting Rules,” board meetings are held at least once every quarter. A total of ten board meetings were held in 2015 (from January 1st, 2015 to April 30th, 2016) .

1. Major Resolutions of the Board Meetings

Following are the important resolutions from the board during 2015/01/01-2016/04/30.

(1) BOD resolutions on 2015/02/13
BOD approved the investment in China.
Interim Meeting of Board Approves the Acquisition of Equipment by Subsidiary Zhuhai Lite-On Mobile Technology Co., Ltd.
(2) BOD resolutions on 2015/03/25
Board of directors resolution for remuneration of employees and directors of 2015
Board of directors resolution for issuance of new share for capital increase.
Board of Directors Resolution for dividend distribution.
Announcement of Donation to Lite-On Culture Foundation.
Lite-On Technology Corp. announced the results of it’s operations for Y2015.
(10) BOD resolutions on 2016/04/27
Board of Directors’ resolution the candidates’ qualification for Directors and Independent directors of year 2016 shareholders’ meeting.

2. The Board and the Functional Committees

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Chairman Raymond Soong
Vice Chairman Lite-On Capital Inc. Representative: Warren Chen
David Lin
Dorcas Investment Co., Ltd. Representative: Joseph Lin
The
Ta-Sung Investment Co., Ltd. Representative: Keh-Shew Lu
Board Directors
Ta-Sung Investment Co., Ltd. Representative: Rick Wu
Yuan Pao Development & Investment Co., Ltd. Representative: CH Chen
Yuan Pao Development & Investment Co., Ltd. Representative: David Lee
Independent Directors Kuo-Feng Wu, Harvey Chang, Edward Yang
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Board of Directors Resolution for dividend distribution.
Board of directors resolution for issuance of new share for capital increase.
Announcement of Donation to Lite-On Culture Foundation.
Lite-On Technology Corp. announced the results of it’s operations for Y2014.
Board of Directors’ resolution on the schedule and agenda of year 2015 shareholders’ meeting.
(3) BOD resolutions on 2015/05/13
Lite-On Technology Corp. announced the results of it’s operations for Y2015 Q1.
Announcement of Lite-On Technology Corporation’s Board of Directors Resolution for the disposition of assets to Lite-On Electronics(Guangzhou)Co., Ltd.

Audit Commitee	Compensaton Commitee	Growth Strategic Commitee
Since: 2007/06/21	Since: 2008/08/27	Since: 2010/09/01
Chair Person:Kuo-Feng Wu	Chair Person:Harvey Chang	Chair Person:Edward Yang
Members:Harvey Chang, Edward	Members:Kuo-Feng Wu, Edward	Members:Raymond Soong, Warren
Yang	Yang	Chen, Keh-Shew Lu, David Lin

(4) BOD resolutions on 2015/07/20
Announcement of the record date for 2014 dividend.
Lite-on Technology Corp.’s Board of Directors meeting approves plan to repurchase shares.
(5) BOD resolutions on 2015/08/11
Lite-On Technology Corp. announced the results of it’s operations for Y2015 H1.
(6) BOD resolutions on 2015/09/18
BOD approved its subsidiary Lite-On Green Energy B.V.to dispose 100% shares of Romeo Tetti PV1 S.R.L.
Lite-on Technology Corp.’s Board of Directors approved to acquire real estate via auction process.
(7) BOD resolutions on 2015/11/12
According to Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies Article 22 Paragraph 1 Section 3.

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Lite-On Technology Corporation 2015 Annual Report‧

3.1.3 Audit Committee

3. Board Meetings Attendance

The Board held 10 meetings (A) in the recent period of time (from January 1st, 2015 to April 30th, 2016) with the attendance of the directors specified as below:

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Attend (sit in) in Attendance rate
Title Name Attend by proxy
person (B) (%) 【B/A】
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Title	Name	Attend (sit in) in person (B)	Attend by proxy	Attendance rate (%)【B/A】

Chairman	Raymond Soong	10	0	100
Vice Chairman	Lite-On Capital Inc. Representative:Warren Chen	10	0	100%
Director	David Lin	8	2	80%
Director	Dorcas Investment Co., Ltd. Representative:Joseph Lin	8	2	80%
Director	Ta-Sung Investment Co., Ltd. Representative:Keh-Shew Lu	3	7	30
Director	Ta-Sung Investment Co., Ltd. Representative: Rick Wu	10	0	100%
Director	Yuan Pao Development & Investment Co., Ltd. Representative: CH Chen	9	1	90
Director	Yuan Pao Development & Investment Co., Ltd. Representative: David Lee	10	0	100%
Independent Director	Kuo-Feng Wu	9	1	90%
Independent Director	Harvey Chang	9	1	90%
Independent Director	Edward Yang	9	1	90%

Important Notice:

(1) Minutes of Board meetings where Article 14-3 of the Securities and Exchange Act is applicable and contained information on the objection or qualified opinions of the independent directors on record or in writing: none.
(2) The avoidance of the conflict of interest by the directors on relevant motions:
A. Three occasions, In the 9th session of the 23th Board Meeting, Director Mr. Raymond Soong, Mr. David Lin, Mr. Warren Chen and Mr. CH Chen avoided the discussion and did not vote the motion of donation to Lite-On Cultural Foundation.
B. In the 9th session of the 30th Board Meeting, Director Mr. Raymond Soong, Mr. David Lin, Mr. Warren Chen and Mr. CH Chen avoided the discussion and did not vote the motion of donation to Lite-On Cultural Foundation.
C. In the 9th session of the 31th Board Meeting, Director Mr. Raymond Soong, Mr. Warren Chen, Mr. Keh-Shew Lu, Mr. CH Chen, Mr. David Lee, Mr. Joseph Lin, Mr. Kuo-Feng Wu, Mr. Harvey Chang and Mr. Edward Yang avoided his own qualification discussion and did not vote the motion of the candidates’ qualification for Directors and Independent directors of year 2016 shareholders’ meeting.
(3) For strengthening and accelerating the growth strategy of the Company and the whole business group, the Company has established the Growth Strategic Committee in 2010. The Committee is authorized by Board of Directors to direct and review the Company and the Group’s overall growth strategies, and to preview the important investment projects, and periodically reports the resolutions to the Board of Directors.
(4) The company will continue to pursue sound corporate governance and the transparency, timeliness, and fairness of financial information disclosure. In 2015, Lite-On was rated A++ by the Securities and Futures Institute during its Information Disclosure Evaluation. Meanwhile, Lite-On was rated top 5% in Corporate Governance Evaluation arranged by Taiwan Stock Exchange (TWSE).

Chairperson: Independent Director Kuo-Feng Wu

Members: Independent Director Harvey Chang, Independent Director Edward Yao-Wu Yang

The Audit Committee consists entirely of independent directors. The duties of its three members are to assist the board of directors in reviewing the company’s financial statements, internal control systems, audit practices, accounting policies, major asset transactions, and appointment/dismissal of external auditors, finance officers, accounting officers, and internal auditors so as to ensure compliance with government regulations.

Effective internal control systems and audit operations are the foundation of sound corporate governance. In order to maintain an effective internal control system, particularly in the area of risk management, financial and operational control, the Audit Committee regularly reviews reports submitted by internal auditors and assesses the independence of the company’s financial statement auditors, thereby ensuring the utmost integrity in financial reporting.

According to Lite-On’s “Audit Committee Organizational Rules,” the Audit Committee meets at least once every quarter. A total of nine Audit Committee meetings were held (from January 1st, 2015 to April 30th, 2016).

(1) The operation of the Audit Committee

The Audit Committee held 9 meetings (A) in the recent period of time (from January 1st 2015 to April 30th 2016) with the attendance of the independence directors specified below:

Title	Name	Attend (sit in) in person (B)	Attend by proxy	Attendance rate (%) 【B/A】(note)
Independent Director	Kuo-Feng Wu	8	1	89%
Independent Director	Harvey Chang	8	1	89%
Independent Director	Edward Yang	8	1	89%

Important Notice:

Issues stated in Article 14-5 of the Securities and Exchange Act of the ROC and other issues not passed by the Audit Committee but resolved by more than two-thirds of the directors: none.
The act of the avoidance of the conflict of interest by the independent director: none.
The communications between the independent director and the Chief Audit Officer and the certified public accountants:
(1). The Chief Audit Officer reported to the Audit Committee on the establishment of and amendment to the
- internal control system.
(2). The Chief Audit Officer reported to the Audit Committee on the conduct of internal audits and the findings.
(3). The Chief Audit Officer reported to the Audit Committee on the annual audit plan and the implementation of the plan.
(4). The Chief Audit Officer reported to the Audit Committee on the findings of each audit and the tracking of
- corrective actions and preventive actions.
(5). The Chief Audit Officer provided information on the addition or amendment of laws governing securities
- and exchange to the Audit Committee.
(6). The Chief Audit Officer presented to the Audit Committee the report on the conduct of special audits prescribed by the committee and the findings.
(7). Before year start, the certified public accountants reported to the Audit Committee the valuation of independent , annual service contents and compensation.
(8). The certified public accountants reported to the Audit Committee on the planning, implementation, and
- result of each period of the year.
(9). The certified public accountants reported to the Audit Committee on the quarterly and the annual external audits
(10). The certified public accountants reported to the Audit Committee on newly established statement of financial accounting standards and related laws on securities and exchange any time as needed.

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Lite-On Technology Corporation 2015 Annual Report‧

3.1.4 The Compensation Committee

(11). The certified public accountants reported to the Audit Committee in time when special issue occurs (no special issue occurred in 2014).

Note:

If a specific independent director resigned before the end of the fiscal year, specify the date of resignation in the relevant field. The attendance (sit in) rate of such director or supervisor in Board meetings shall be based on the actual attendance to meetings during his term of office.
If there is a newly elected independent director who filled in the vacancy of the relieved independent director, specify the names of and differentiate the old and new independent director, the date of office of the new independent director or the date of renewal. The attendance (sit in) rate of such independent director in Board meetings shall be based on the actual attendance to meetings during his term of office.

(2) The participation of the supervisors in the Board

The Company has established the Audit Committee on June 21 2007 to perform the functions of the supervisors as required by law.

Chairperson: Independent Director Harvey Chang

Members: Independent Director Kuo-Feng Wu, Independent Director Edward Yang

The Compensation Committee was established in 2009 to strengthen corporate governance and align the company with international practices. The Compensation Committee has been authorized by the board of directors to supervise, review and decide the company’s compensation policies.

Duties of the Compensation Committee extend beyond employees’ incentives and bonuses, to cover performance appraisals and remuneration of directors and executive managers as well. Lite-On’s Compensation Committee consists of three members; all of whom are chosen from independent directors to ensure objectivity, professionalism and fairness of the committee, while avoiding any conflicts of interest those members may have with the company.

The Compensation Committee reviews the company’s remuneration policies and plans on a regular basis to ensure that they sufficient to attract, motivate and retain talent. The committee reviews the performance and remuneration of directors, the CEO and executives, and evaluates employee bonuses on a yearly basis.

3.1.5 The Growth Strategic Committee

Chairperson: Independent Director Edward Yao-Wu Yang

Members: Director Raymond Soong, Director David Lin, Director Warren Chen, Director Keh-Shew Lu

The Growth Strategic Committee was established in 2010 in an attempt to strengthen and accelerate the growth of the Lite-On Group. The committee is authorized by the board of directors to review growth strategies for the Company and the Group as a whole. It is also responsible for the preliminary assessment of all major investments of the Company and the Group. It reports its resolutions regularly to the board of directors.

The scope of responsibility of Lite-On’s Growth Strategic Committee covers Lite-On Technology Corporation as well as its subsidiaries and certain business departments.

Committee members comprise five directors, all of whom are appointed by the board of directors.

A total of two Growth Strategic Committee meetings were held in 2015.

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Lite-On Technology Corporation 2015 Annual Report‧

3.2 Anti-corruption

Lite-On upholds its reputation by obeying the laws and ethics of the countries in which it performs its business activities. We do not tolerate any violation of laws or ethics during our pursuit for sales, profits and performance targets. The company has proper measures in place to govern activities that are prone to risks of bribery, and regularly promotes employees’ awareness on this issue as a means to prevent corruptive behaviors.

“Integrity” is one of our four core values. The company has implemented an Ethical Code of Conduct for Employees to help employees understand how to handle situations and issues encountered in daily work activities. This Code of Conduct has been included as part of orientation programs to give new recruits an understanding of the company’s standards with regard to reputation, laws and ethics. The Ethical Code of Conduct for Employees contains the following ethical guidelines:

1. Gifts and hospitality:

1.1 Company employees may not give or accept any gifts intended to improperly influence normal business or decisions. Company employees must immediately notify their supervisor or return any substantial gifts that they have received. If, however, a gift constitutes a small gift such as often exchanged in business contact, it shall not be subject to this restriction.
1.2 Customers and company employees may engage in reasonable social activities within the course of the business contact in so far as such activities are clearly for business purposes and are respectable in tone. However, any excessively generous treatment shall require the prior consent of the employee’s supervisor and a subsequent report to the supervisor. While dining is a necessary accompaniment of meetings between company employees and suppliers or customers, the principle of reciprocity should be emphasized.
1.3 Company employees should avoid any improper actions, and absolutely may not give or accept any kickbacks in any form under any circumstances. While engaged in private shopping, company employees and their family members may not accept discounts from suppliers due to their relationship with this company, unless such discounts are given to all employees of this company.

2. Principles governing business-related payments:

Any employee who discovers an irregularity affecting company assets or monies that may disrupt payments must immediately notify their supervisor. If the irregularity involves a supplier, the employee must notify the head of purchasing. No bribes of any kind may be given to any person; there are no exceptions to this rule. So-called bribes refer to payments given to certain persons to induce them to violate the rules of their employers or the laws of their country.

2.1 Payments to suppliers: payments can only be made for goods or services provided by suppliers that an authorized procuring unit has verified to have complied with the company’s standards.
2.2 Payments to government officials: the company can not provide government officials of any country with payments that are prohibited in that country. Legitimate payments given to government officials must comply with all procedures specifically required by the company.
2.3 Payments to consultants, wholesalers or distributors: payments to consultants, wholesalers and distributors must be equivalent to the value of the services they provide.
2.4 Payments to customers: payments may not be directly or indirectly given to employees of any existing or potential customer with the intent of inducing them to take improper actions.
2.7 Forgery of records: payments cannot be approved, executed, or accepted if part of the payment is intended or known to be used for purposes other than those stated on the records. When there is no disbursement explanation in the company’s account books, all “kickback funds” or similar funds or account transfers are strictly prohibited.

In addition to establishing uniform standards that apply consistently to all employees, Lite-On has also emphasized on explaining the values of these ethical standards so that employees can understand how they are relevant to their daily activities and avoid conducts that may constitute violations against laws or the company’s anti-corruption policy. Through uses of proprietary materials and structured courses, the company has been able to convey its governance guidelines and operating procedures to the comprehension of all employees. Course contents are presented in ways that are relevant to employees’ work activities and real-life scenarios, with quizzes at the end of each module to help them learn. Furthermore, the company also has consultative services in place to clarify employees’ queries regarding work ethics, anti-corruption guidelines, insider information, anti-trust, and EICC policies and practices, thereby securing the company’s interests while protect employees from any illegal involvement.

Based on the Ethical Code of Conduct for Employees, Lite-On has created online courses that inform employees of the various policies and practices the company has on anti-corruption. For new recruits, the company has arranged a series of online orientation that encompasses courses on “Employee Ethics and Anti-Corruption,” “Material Insider Information,” and “Anti-trust and Compliance;” all of which are related to corporate ethics and proper business conduct. In addition to establishing uniform standards that apply consistently to all employees, Lite-On also emphasizes through action the values of these ethical standards so that employees can appreciate how they are relevant to their daily activities and avoid conduct that may otherwise constitute violations against laws or company policy. Courses on “Material Insider Information” and “Anti-trust and Compliance” have been made compulsory for every employee to ensure consistent understanding to the company’s ethics policies and principles. Lite-On has been active in providing anti-corruption training to indirect production workers.
In addition to organizing EICC (Electronic Industry Code of Conduct) workshops at locations where the company operates, the company has also created an online learning platform that trains employees on EICC values including: business integrity, avoidance of illegitimate gains, open information, respect for intellectual property, responsible advertising, fair trading, confidentiality, responsible minerals procurement, respect for privacy, and prohibition against retaliation.
Consultative services and channels: the company has a Legal Department that supports employees with legal counsel over the course of their business dealings with customers. In the occurrence of a major legal incident, the Legal Department will position itself at the frontline to resolve the matter with the employees involved, while making sure that the company complies with regulations and that the company’s and employee’s interests are protected.
Grievance and reporting channels: internally, the company has hotlines, e-mail and opinion letter boxes available for employees to raise complaints; externally, the company makes public disclosures on its CSR web page regarding any unethical or illegal conduct found over the course of its business. Grievance hotlines, e-mail, and mailboxes have been made available for outsiders to raise complaints or report their concerns. In 2015, Lite-On received one complaint concerning violation of business integrity in illegal activity, and the concerned incidence did not occur after the thorough investigation.
2.5 Payments to others: payments may be made to persons who are not civil servants or customers in accordance with the procedures prescribed by the company, provided that such payments are not for ordinary commercial purposes as defined by the laws of the country where the payments take place.
2.6 Payments outside the payee’s place of domicile: paying expenses or salaries to an account in a country where the payee does not reside or do business (this may sometimes be termed “distributed expenses”) is acceptable as long as this does not violate laws, and provided that the entire transaction does not compromise the company’s ethical standards.

15 ‧Lite-On Technology Corporation 2015 Annual Report

Lite-On Technology Corporation 2015 Annual Report‧

3.3 Corporate Risk Management

Lite-On has devoted itself to ensuring the economic, environmental and social sustainability for stakeholders including customers, shareholders, employees and the community et cetera. While taking steps to realize this goal, Lite-On adopts a robust risk management framework that identifies and controls the various risks of concern, so that said risk can then be transferred, mitigated, minimized or even eliminated entirely. This risk management framework is also one of the main reasons behind Lite-On’s sustainable growth and outstanding performance.

The Risk Management Framework

Lite-On’s risk management framework and internal control system allow it to take the initiative and respond to the risks associated with its operations in the most cost-effective manner. The Group CEO serves as the highest ranking officer in the company’s risk management framework.

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

Board of Directors (Audit Committee)
Corporate Internal
Audit
Group CEO
Function Units
Manufacturing Investor
Human Operational Regional
Legal Operation Relations &
Resources Controlling Operations
Excellence Public Relations
Occupational
Safety • United States
and Health Corporate • Europe
Strategy & Innocell Manufacturing Management Social and • Singapore
Creativity Finance Environment • China
Investment Technology
Center Responsibility
Office
Business Groups
Mobile Mechanics Portable Image Devices Power System Storage
New Mechanical Connected Devices and Optoelectronic Product
New Business
Competence System Solutions Solution
----- End of picture text -----

Risk Management Life Cycle

Based on experience accumulated throughout its long history, the company has been able to develop a comprehensive risk management framework with job functions and areas of responsibility clearly segregated for risk identification purposes. Risks identified within the organization are classified into “External Risks,” “Operational Risks,” and “Information Disclosure Risks.” Each risk is further assessed and assigned a severity level of high, medium, or low, and mapped onto a risk map for ease of identification. This enables the organization to take further steps to transfer,

accept, mitigate, and avoid the identified risks. By executing the PDCA cycle (plan, do, check, and act) the company is able to improve its control over various risk factors and reduce the chances of risks occurring and the impact they might have.

“External Risks” refer to external factors such as slow sales, competition, loss of market demand, change in consumer preferences, changes in technologies, new competing products, international incidents, economic recession, mergers and acquisitions, change in foreign currency control, election outcomes, extortion, noise, pollution, natural disasters, etc. “Operational Risks” refer to problems that are associated with the company itself, such as inability to deliver goods on time, defective goods, unresolved technical issues, high procurement costs, excess inventory, poor production design, plant malfunction, employee discipline, safety incidents, fire hazard, employment of child labor, forced labor, loss of data, information errors, financial reporting mistakes, etc.. “Information Disclosure Risks.” refer to risks associated with the disclosure of public information as part of the company’s operations, such as pricing failure, leakage of commercial confidentialities, unreliable financial forecasts, frequent adjustment of financial forecasts, failure to prepare quarterly/annual financial statements on time, failure to disclose required information, correction of errors etc. By setting key performance indicators (KPI) within the organization, Lite-On is able to assess whether key risks have emerged, and take necessary actions to transfer, accept, mitigate or avoid such risks. In order to minimize the possibility and degree of loss, the company adopts a risk management system that is even more proactive than insurance. Meanwhile, Lite-On is progressively implementing an “AAA Product Liability Control Project” as enhanced management over manufacturing and sales risk.

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Occurrence Risk Map
• Operations (neglect of safety • Environment (chemicals) • Market risk (customers' needs and
rules/loss of personal property) • Human resources (orders/child satisfaction)
• Health and safety (lighting) labor/work hour)
• Finance (Electricity bills)
High
• Business strategy (shareholder
relations)
• Operations (use of water/mistakes) • Safety and health (furnace • Politics (political development)
• Human resources (hazardous jobs) temperature) • Health and safety (chemical
• Environment (noise) • Human resources (work hours/ corrosion)
• Finance (carbon tax) grievance channels) • Business (business performance)
Medium • Business (budget spending) • Finance (liquidity)
• Operations (products and • Compliance (legal and
services) reputation risks)
• Strategies (business model/
organization)
• Compliance (local environmental • Business (pension) • Safety and health (safety of gas
protection laws) • Human resources (bribery) tanks)
• Human resources (protection of • Safety and health (substance • Environmental safety (poisonous
whistle-blowers) exposure/fatigue/burns) gas and fire)
Low
• Human resources (limitation of
freedom)
• Finance (derivatives)
Impact Low Medium High
----- End of picture text -----

17 ‧Lite-On Technology Corporation 2015 Annual Report

Lite-On Technology Corporation 2015 Annual Report‧

Continued improvement in risk management through PDCA cycle (see chart)

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

Internal Audit Board of Directors
(Audit Committee)
‧ Performs independent audits on
risk management activities. ‧ Ensures implementation of
‧ Reports to Audit Committee on appropriate risk management
audit progress. framework and culture.
‧ Risk management decisioning and
resource allocation
Continuous
improvements
Functional units and business Executive management
groups (Group CEO)
‧ Perform self assessment, control ‧ Executes the board's risk
and management of risks. management decisions.
‧ Improve management practices. ‧Manages function units and
business groups.
Asse
r
s
o
s
Monit Identif
y
e
t
a
icn E
u av
m ul
m a
oC et
----- End of picture text -----

The risk rating and audit system also helps reflect the risk status of various production sites. It reminds workers of the potential dangers present in the workplace, and allows quantifiable targets to be set and improved upon. In the short term, the system helps eliminate risks as soon as they are discovered; in the long run, it enables management to better plan its risk controls and implementation.

Lite-On will be introducing new business continuity management to make sure that the company can resume operations rapidly and remain competitive when facing any disaster. At the current stage, the company is focused on developing a Business Continuity Plan (BCP) that achieves the following benefits:

‧ Ensure business recoverability and sustainability; reduce overall operational risks and maintain competitiveness.
‧ Provide assurances to customers and secure or even expand market share.
‧ Protect the company’s reputation and shareholders’ interests.
‧ Reduce costs of supply chain management and create industry service value.

‧ Risk Management Projects

In order to address external and operational risks of higher occurrence or impact, Lite-On has implemented a risk management plan throughout all plant sites that focuses on “Raising Safety Awareness,” “Protecting Critical Assets,” and “Establishing Safety Systems and Rules.” Apart from raising risk awareness within Lite-On, the company has also executed a number of risk management projects that not only help identify dangers within various production centers, but also provides suggestions for future improvements. Through one project at a time, Lite-On is able to accomplish the overall goal of its risk management, and build a foundation for sustainable operations.

‧ Raising Safety Awareness

The Risk Management Department arranges regular training and seminars featuring the use of case studies to help employees learn from past mistakes, and hence raise their awareness towards safety and risk management.

‧ Protecting Critical Assets

Each year, the company conducts infrared tests on electrical appliances used in plant sites, and performs random checks on their risk management practices to identify areas of weakness and ways of minimizing foreseeable risks. Meanwhile, logistics operations are also inspected regularly to reduce logistics risks. All products that Lite-On offers to its customers undergo stringent internal quality control and are certified by third-party engineers who scrutinize everything the company does from product design, manufacturing to after-sale liabilities.

‧ Establishing Safety Systems and Rules

Lite-On has been establishing a risk control and checking system since 2009 that aims to grade each property by level of associated risk, and thereby facilitate future assessments and management. Through regular inspections and improvements, Lite-On is able to optimize the risk profiles of its production sites, reducing the possibility of accidents and hence minimizing loss of workers, plant, equipment, raw materials, and operations.

19 ‧Lite-On Technology Corporation 2015 Annual Report

Lite-On Technology Corporation 2015 Annual Report‧

3.4 Information Regarding Board Members and Management Team

3.4.1 The profiles of the directors and the independent directors

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2016/04/26
Proportion of Proportion of Proportion of
Proportion of
Date of shareholding at the shareholding by spouse shareholding under the Other positions of
Tenure Date of initial shareholding at present
Title Name appointment time of appointment and underage children title of a third party Important experience (education) the company or
(year) appointment
(office) other companies
Quantity % Quantity % Quantity % Quantity %
----- End of picture text -----

Title	Name	Date of appointment (offce)	Tenure (year)	Date of initial appointment	Proportion of shareholding at the time of appointment	Proportion of shareholding at the time of appointment	Proportion of shareholding at present	Proportion of shareholding at present	Proportion of shareholding by spouse and underage children	Proportion of shareholding by spouse and underage children	Proportion of shareholding under the title of a third party	Proportion of shareholding under the title of a third party	Important experience (education)	Other positions of the company or other companies
					Quantity	%	Quantity	%	Quantity	%	Quantity	%

Chairman	Raymond Soong	102.6.19	three	81.05.20	77,738,111	3.37%	78,908,736	3.38%	14,891,742	0.64%	0	0%	Honorary PhD in Management, National Chiao Tung University Chairman & Founder of Lite-On Group/Lite-On Cultural Foundation Member of Board of Councilors, the Doctorate College of Technology, South California (USC) Chief Engineer, Texas Instruments Taiwan Ltd.	Note 1
Vice Chairman	Lite-On Capital Inc.	102.6.19	three	90.04.19	14,817,672	0.64%	15,040,803	0.64%	0	0%	0	0%	Chemical Engineering, Chinese Culture University GCEO of Lite-On Group and CEO of Lite-On Technology Corp. President, Lite-On Electronic Co. Manufacturing Super-Intendant, Texas Instrument	Note 2
	Representative:Warren Chen			87.05.19	0	0%	8,627,361	0.37%	2,671,893	0.11%	0	0%
Director	David Lin	102.6.19	three	87.05.19	8,783,494	0.38%	11,399,322	0.49%	519,331	0.02%	1,500,000 (trust)	0.06%	EMBA, Tulane University, USA Bachelor of Electrophysics, National Chiao Tung University GM of Texas Instruments Taiwan Ltd. President of Silitech Corporation CEO of Lite-On Group GCEO Lite-On Group and Lite-On technology Corp. Vice Chairman, Lite-On Group and Lite-On technology Corp.	Note 3
Director	Dorcas Investment Co., Ltd.	102.6.19	three	90.04.19	5,930,283	0.26%	6,019,584	0.26%	0	0%	0	0%	MBA, University of South California Bachelor, Dept of Mechanical Engineering, UCLA CEO, Dorcas Investment Co., Ltd.	Note 4
	Representative: Joseph Lin			96.06.21	0	0%	295,167	0.01%	0	0%	0	0%
Director	Ta-Sung Investment Co., Ltd.	102.6.19	three	87.05.19	46,159,459	2.00%	46,854,554	2.01%	0	0%	0	0%	Bachelor, EE, National Cheng Kung University Master, EE, Texas Institute of Technology PhD, EE, Texas Institute of Technology Asian Regional President, Senior VP, Texas Instruments Director, VArmour Corp. Ltd.	Note 5
	Representative: Keh-Shew Lu			91.09.01	0	0%	0	0%	0	0%	0	0%
Director	Ta-Sung Investment Co., Ltd.	102.6.19	three	87.05.19	46,159,459	2.00%	46,854,554	2.01%	0	0%	0	0%	Bachelor, Dept. of Commerce, Tamkang University; VP, Offce of Group President, Lite-On Technology Corporation Director, Silitech Technology Corporation Supervisor, Leotek Corp Supervisor, Co-tech Copper Foil Corporation Supervisor, Lite-On IT Corporation.	Note 6
	Representative : Rick Wu			90.04.19	0	0%	993,068	0.04%	51,097	0%	0	0%
Director	Yuan Pao Development & Investment Co. Ltd.	102.6.19	three	93.06.15	36,527,518	1.58%	39,277,570	1.68%	0	0%	0	0%	Bachelor, Dept of Mechanical Engineering, National Taiwan University Vice CEO, Texas Instruments Taiwan Ltd. Chairman, Co-tech Copper Foil Corporation Chairman, On-Bright Electronics Incorporated Co., Ltd.	Note 7
	Representative : CH Chen			93.06.15	0	0%	0	0%	0	0%	0	0%
Director	Yuan Pao Development & Investment Co. Ltd.	102.6.19	three	93.06.15	36,527,518	1.58%	39,277,570	1.68%	0	0%	0	0%	Graduate Institute of Accounting, National Cheng Chi University; Director, representative of Dynacard Co.,Ltd. Director, representative of ADDtek Corporation CFO, Lite-On Semiconductor Corp.	Note 8
	Representative : David Lee			92.06.17	0	0%	6,484	0%	0	0%	0	0%
Independent Director	Kuo-Feng Wu	102.6.19	three	96.6.21	0	0%	0	0%	0	0%	0	0%	Bachelor, Dept of Economics, National Chung Hsing University, Chairman, KPMG; Senior CPA, KPMG Director, Taipei CPA Association Executive Director, ROC CPA Independent Supervisor, Wistron Corporation, Supervisor, Darfon Corporation Vice Chairman, Financial Accounting Standards Committee, Accounting Research and Development Foundation, Convener, Accounting Practice Committee, Taiwan Accounting Association. Supervisor, Tynsolar Corporation. Chairman, International affairs committee of ROCCPA	Note 9

21 ‧Lite-On Technology Corporation 2015 Annual Report

Lite-On Technology Corporation 2015 Annual Report‧

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Proportion of Proportion of Proportion of
Proportion of
Date of shareholding at the shareholding by spouse shareholding under the Other positions of
Tenure Date of initial shareholding at present
Title Name appointment time of appointment and underage children title of a third party Important experience (education) the company or
(year) appointment
(office) other companies
Quantity % Quantity % Quantity % Quantity %
----- End of picture text -----

Title	Name	Date of appointment (offce)	Tenure (year)	Date of initial appointment	Proportion of shareholding at the time of appointment	Proportion of shareholding at the time of appointment	Proportion of shareholding at present	Proportion of shareholding at present	Proportion of shareholding by spouse and underage children	Proportion of shareholding by spouse and underage children	Proportion of shareholding under the title of a third party	Proportion of shareholding under the title of a third party	Important experience (education)	Other positions of the company or other companies
					Quantity	%	Quantity	%	Quantity	%	Quantity	%

Independent Director	Harvey Chang	102.6.19	three	96.6.21	0	0%	0	0%	0	0%	0	0%	MBA, The Wharton School, Pennsylvania State University; Bachelor, Dept of Geology, National Taiwan University; President and CEO, Taiwan Mobile; Senior VP and CFO, TSMC; Chairman, China Securities Investment Trust Corp. President, China Development Trust Co. Ltd. ; President, Grand Cathay Securities; Manager, Trust Dept, International Dept, Chiao Tung Bank; Manger, Banking Dept, Morgan Bank Taipei Branch; Associate Manger, Multinational Corporation Dept, Citibank Taipei.	Note 10
Independent Director	Edward Yang	102.06.19	three	96.6.21	0	0%	0	0%	0	0%	0	0%	Stanford Executive Program (SEP), Stanford University, USA; Master of EE, Oregon State University, USA; Bachelor of EE, National Cheng Kung University; Independent Director, Focal Tech. Independent Director, Silicon Storage Technology Independent Director, Pericom Semiconductor Commissioner, Advanced Research Advisory Committee, ITRI Commissioner, Research & Development Advisory committee, Institute for Information Industry Commissioner, Advisory Committee of Engineer Department, San Jose State University. VP and CTO, Personal System Product Division, HP Corporation; VP and CTO, Corporate System Product Division, HP Corporation; President, Singapore Network and Telecommunications Business Unit, HP Corporation; Managing Director, Monte Jade Science and Technology Association Managing Director, China Institute of Engineering; Managing Director, Information Service Association of R.O.C. Director, U-System Inc.	Note 11

Below notes of other positions of the company or other companies are only display public offering companies and important subsidiaries.

Note 1: Chairman, Lite-On Technology Corp., Lite-On Semiconductor Corp., DIODES,INC. and G-Pro Electronics (SH) Co., Ltd.

Chairman, representative of Silitech Technology Corp. and Co-tech Copper Foil Corporation.

Director, Lite-On Singapore Pte. Ltd., Lite-On Mobile Pte. Ltd., Actron Technology Corporation, DYNA International Holding Co.,Ltd., DYNA International Co., Ltd. and Lite-On Semiconductor(HK)LTD.

Director, representative of Lite-On China Holding Co. Ltd.(BVI), Silitech (BVI) Holding Ltd., Silitech (Bermuda) Holding Ltd., Silitech Technology Corp. Ltd., Silitech Technology Corp. Sdn. Bhd., Silitech (Hong Kong) Holding Ltd., Silitech Technologuy(Su Zhou) Ltd. and Xurong Electroinc (Shenzhen) Co., Ltd.

Note 2: Vice Chairman, representative of Lite-On Technology Corp.

Director, Lite-On Singapore Pte. Ltd. and Lite-On Mobile Pte. Ltd.

Director, representative of Lite-On Semiconductor Corp., Lite-On China Holding Co., Ltd. (BVI), Silitech Technology Corp., Silitech (BVI) Holding Ltd., Silitech (Bermuda) Holding Ltd., Silitech Technology Corp. Ltd., Silitech Technology Corp. Sdn. Bhd., Silitech (Hong Kong) Holding Ltd., Silitech Technologuy(Su Zhou) Ltd. and Xurong Electroinc (Shenzhen) Co., Ltd.

Note 3: Director, Lite-On Technology Corp.

Independent director, Sino-America Silicon Products Inc. and Rafael Micro Technology Corp.

Note 4: Director, representative of Lite-On Technology Corp.

Note 5: Director, representative of Lite-On Technology Corp. and Nuvoton Technology Corp. President and CEO of Diodes Incorporated Co., Ltd.

Note 7: Vice Chairman, DIODES, INC. and Lite-On Semiconductor Corp.

Director, G-Pro Electronics (SH) Corp., Ltd., DYNA International Holding Co., Ltd., DYNA International Co., Ltd., Lite-On semiconductor (HK) Ltd, On-Bright Electronics (Hong Kong) Co., Ltd, and CO-TECH DEVELOPMENT CORP.

Director, representative of Lite-On Technology Corp. and Kwong Lung Enterprise Co, Ltd.

Note 8: Chairman, representative of Taiwan On-Bright Electronics., Ltd. and SyncMOS Technologies International, Inc.

Chairman, On-Bright Electronics (SH) and On-Bright Electronics (Guangzhou)

Director, DYNA International Holding Co., Ltd., DYNA International Co. Ltd., Lite-On Semiconductor (HK) Ltd., On-Bright Electronics (Hong Kong), On-Brilliant Electronics (Hong Kong) Co., Ltd., Lite-On semi (Wuxi) Ltd. and G-Pro Electronics (SH) Corp., Ltd.

Director, representative of Lite-On Technology Corp. and Actron Technology Corporation. CEO, Lite-On Semiconductor Corp.

Note 9: Independent Director, Lite-On Technology Corp. and Wistron Corp. Independent supervisor, Advantech Corp.

Note 10: Independent Director, Lite-On Technology Corp.

Note 11: Chairman, GVT fund

Independent director, Lite-On Technology Corp. Partner, iD Ventures America, LLC

Director, Sifotonics Technologies, Applied BioCode and Bandwidth 10.

Note 6: Director, representative of Lite-On Technology Corp. Supervisor, representative of Lite-On Semiconductor Corp.

23 ‧Lite-On Technology Corporation 2015 Annual Report

Lite-On Technology Corporation 2015 Annual Report‧

3.4.2 Independent Status of the Directors

2016/4/26

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

Qualification With at least 5 years of working experience and Eligibility of independent status (Note 2)
the following professional designations
A lecturer
A judge, district
of private
attorney,
or public Also a
lawyer, Work
institutions director
certified public experience in
of higher to other
accountant, or business, legal
education companies
professional affairs, finance,
specialized in or technician accounting, 1 2 3 4 5 6 7 8 9 10 (number
business, legal who has or in an area of firms)
affairs, finance,
passed relevant required by the
accounting, or
national business of the
the expertise
examination Company
required by the
and properly
business of the
Name licensed.
Company
----- End of picture text -----

Qualifcation Name	With at least 5 years of working experience and the following professional designations	With at least 5 years of working experience and the following professional designations	With at least 5 years of working experience and the following professional designations	Eligibility of independent status (Note 2)	Eligibility of independent status (Note 2)	Eligibility of independent status (Note 2)	Eligibility of independent status (Note 2)	Eligibility of independent status (Note 2)	Eligibility of independent status (Note 2)	Eligibility of independent status (Note 2)	Eligibility of independent status (Note 2)	Eligibility of independent status (Note 2)	Eligibility of independent status (Note 2)	Also a director to other companies (number of frms)
	A lecturer of private or public institutions of higher education specialized in business, legal affairs, fnance, accounting, or the expertise required by the business of the Company	A judge, district attorney, lawyer, certifed public accountant, or professional or technician who has passed relevant national examination and properly licensed.	Work experience in business, legal affairs, fnance, accounting, or in an area required by the business of the Company	1	2	3	4	5	6	7	8	9	10

Raymond Soong	No	No	Yes	-	-	-	-	-	-	V	V	V	V	0
David Lin	No	No	Yes	V	-	-	V	V	V	V	V	V	V	2
Representative of Lite-On Capital Inc.: Warren Chen	No	No	Yes	-	-	-	V	-	-	V	V	V	-	0
Representative of Dorcas Investment Co., Ltd.: Joseph Lin	No	No	Yes	V	-	V	V	V	V	V	V	V	-	0
Representative of Ta-Sung Investment Co., Ltd.: Keh-Shew Lu	No	No	Yes	V	-	V	V	V	-	V	V	V	-	0
Representative of Ta-Sung Investment Co., Ltd.: Rick Wu	No	No	Yes	-	-	V	V	V	-	V	V	V	-	0
Representative of Yuan Pao Development & Investment Co., Ltd.: CH Chen	No	No	Yes	-	-	V	V	V	-	V	V	V	-	0
Representative of Yuan Pao Development & Investment Co., Ltd.: David Lee	No	No	Yes	-	-	V	V	V	-	V	V	V	-	0
Kuo-Feng Wu	No	Yes	Yes	V	V	V	V	V	V	V	V	V	V	1
Harvey Chang	No	No	Yes	V	V	V	V	V	V	V	V	V	V	0
Edward Yang	No	No	Yes	V	V	V	V	V	V	V	V	V	V	0

Note : The directors and the supervisors meeting the following conditions in the period of two years before the appointment and during the term of office. Select the appropriate box by putting a “V”.
(1) Not an employee of the Company or the affiliates of the Company.
(2) Not a director or supervisor of the Company or the affiliates of the Company (except of the Company or the parent of the Company, or an independent director of the companies where the Company directly or indirectly holding more than 50% of the shares bearing voting rights).
(3) The person, the spouse, and underage children, who hold more than 1% of the shares or hold more than 1% of the shares under the title of a third party, or who is among the top-10 natural person shareholders
(4) Not a spouse, a kindred within the 2nd tier under the Civil Code, or a next of kin to a kindred within the
- 5th tier under the Civil Code of the aforementioned people stated in (1) through (3).
(5) Not a director, supervisor, or employee of an institutional shareholder that directly hold more than 5% of the outstanding shares of the Company, or a director, supervisor, or employee of the top-5 institutional shareholders of the Company.
(6) Not a director (trustee), supervisor(monitor), or manager of specific company or institution that has financial or business transactions with the Company, or a shareholder holding more than 5% of the shares of such company or institution.
(7) Not a professional, sole proprietor, partner, company or the owner, partner, director (trustee), supervisor(monitor), manager of the group enterprise that provide business, legal, financial , or accounting services or consultation to the Company, or a spouse to the aforementioned people.
(8) Not a spouse to or kindred within the 2nd tier under the Civil Code to another director.
(9) None of the provisions in Article 30 of the Company Law is applicable.
(10) Not being elected as the government, institution of their representative as stated in Article 27 of the Company Law.

25 ‧Lite-On Technology Corporation 2015 Annual Report

Lite-On Technology Corporation 2015 Annual Report‧

3.4.3 Profile of the Management Team

Date: 2016/04/26

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Title Nationality Name Date of appointment Proportion of Proportion of Proportion of Major Background Information (note 2) Other positions of other Manager who is the spouse or kin within the
(Note 1) (office) shareholding shareholding by spouse shareholding under the companies 2nd tier of the Civil Code
and underage children title of a third party
shares % shares % shares % Title Name Relationship
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Title (Note 1)	Nationality	Name	Date of appointment (offce)	Proportion of shareholding	Proportion of shareholding	Proportion of shareholding by spouse and underage children	Proportion of shareholding by spouse and underage children	Proportion of shareholding under the title of a third party	Proportion of shareholding under the title of a third party	Major Background Information (note 2)	Other positions of other companies	Manager who is the spouse or kin within the 2nd tier of the Civil Code	Manager who is the spouse or kin within the 2nd tier of the Civil Code	Manager who is the spouse or kin within the 2nd tier of the Civil Code
				shares	%	shares	%	shares	%			Title	Name	Relationship

Vice Chairman/ GCEO	Republic of China	Warren Chen	2002.11.04	8,627,361	0.37%	2,671,893	0.11%	0	0%	Chemical Engineering, Chinese Culture University GCEO of Lite-On Group; CEO of Lite-On Technology Corp.; President, Lite-On Electronic Co.	Refer to profle of director for detail	None	None	None
Business Group CEO	Republic of China	Danny Liao	2013.06.19	2,492,467	0.11%	0	0%	0	0%	MBA, Lake Superior State University; CEO, Lite-On IT Corporation	Director, Silitech Technology Corp.	None	None	None
Business Group President	Republic of China	Alexander Huang	2010.06.01	35,204	0%	494	0%	0	0%	Department of Information Engineering (previously Computer Dept); Microsoft Greater China Regional President, President of Microsoft Taiwan.	None	None	None	None
Business Unit General Manager	Republic of China	Shilung Chiang	2002.11.04	606,198	0.03%	402,000	0.02%	0	0%	MBA, University of Pittsburgh; President, Computer Business Division, Digital Corporation.	Director, Lite-On Singapore Pte. Ltd.	None	None	None
Business Group CEO	Republic of China	Peter Chiu	2002.11.04	1,416,103	0.06%	0	0%	0	0%	Master of Finance, National Taiwan University; Master of Production System Engineering and Management Study, Taipei Technology University; Vice President, First International Computers.	Director, Silitech Technology Corp., Director, Dragonjet Corp.	None	None	None
Operation Controlling General Manager	Republic of China	DI Wang	2002.11.04	1,522,997	0.07%	17,051	0%	0	0%	Ph.D, Northeastern University/ Mathematics; VP in Sales Engineering, Potrans Electrical Corp.	None	None	None	None
HR General Manager	Republic of China	Albert Chang	2002.11.04	776,882	0.03%	292,522	0.01%	0	0%	Master of Industrial Management, National Cheng Kung University; ABIT U.S. Branch President	Director, representative of Lite-On China Holding Co., Ltd. and Lite-On Semiconductor Corp.	None	None	None
Business Group President	Republic of China	Rex Chuang	2002.11.04	1,122,747	0.05%	650,034	0.03%	0	0%	Electronic Engineering, Hsin Pu Industrial Vocational School; VP of production, Lite-On Electronics Corp.,	None	None	None	None
VP	Republic of China	Sonny Chao	2002.11.04	1,073,419	0.05%	2,573	0%	0	0%	School of Industrial Engineering, Polytechnic Institute of N.Y.; Philips Taiwan Global Marketing & Sales Sr. Program Manager	None	None	None	None
Senior VP	Republic of China	TC Huang	2002.11.04	1,443,554	0.06%	2,919	0%	0	0%	University of Leicester/Business Administration; Manager , Yu long Corporation	None	None	None	None
Business Group CEO	Republic of China	Johnson Sun	2002.11.04	1,702,580	0.07%	224,545	0.01%	0	0%	Department of Electrical Engineering, Feng Chia University; Safety Engineer, Sony Corporation.	None	None	None	None
Business Unit General Manager	Republic of China	Henry Chen	2003.11.01	98,371	0%	0	0%	0	0%	Graduate Institute of Electrical Engineering, Tatung University; Project Manager, Mustek Systems.	None	None	None	None

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Lite-On Technology Corporation 2015 Annual Report‧

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Title (Note 1)	Nationality	Name	Date of appointment (offce)	Proportion of shareholding	Proportion of shareholding	Proportion of shareholding by spouse and underage children	Proportion of shareholding by spouse and underage children	Proportion of shareholding under the title of a third party	Proportion of shareholding under the title of a third party	Major Background Information (note 2)	Other positions of other companies	Manager who is the spouse or kin within the 2nd tier of the Civil Code	Manager who is the spouse or kin within the 2nd tier of the Civil Code	Manager who is the spouse or kin within the 2nd tier of the Civil Code
				shares	%	shares	%	shares	%			Title	Name	Relationship

VP	US	Wing Eng	2002.11.04	2,426,490	0.10%	0	0%	0	0%	Master of Electrical Engineering, Stanford University; Director of Design Dept, AT&T Bell Lab.	None	None	None	None
VP	Republic of China	HY Lee	2002.11.04	639,542	0.03%	25,885	0%	0	0%	Master of Industrial Engineering, National Ching Hua University; Asst VP, Universal Microelectronics	None	None	None	None
VP	Republic of China	Victor Hsu	2012.11.27	118,350	0.01%	0	0%	0	0%	University of Illinois at Urbana- Champaign/MBA; Group CFO of Samson Holding Ltd.	Director, Logah Technology Corp.	None	None	None
VP	Republic of China	Joseph SK Chen	2013.01.02	101,713	0%	23,837	0%	0	0%	Department of Electronics, Taipei Tech College; VP of CPBU, Sysgration Corporation Ltd.	None	None	None	None
VP	Republic of China	Johnson Wang	2013.06.03	95,576	0%	0	0%	0	0%	Master of Chemistry, National Ching Hua University; SCM VP, EATON PHOENIXTEC MMPL CO., LTD.	None	None	None	None
VP	Republic of China	Anson Chiu	2013.08.19	189,655	0.01%	0	0%	0	0%	Department of Industrial Management, Lunghwa University of Science and Technology; Procurement Specialist, Crownpo Technology Inc.	Director, Dragonjet Corp.	None	None	None
Business Unit General Manager	Republic of China	BC Liao	2013.08.19	311,879	0.01%	10,074	0%	0	0%	Industrial Management, Chung Yuan Christian University; Procurement Manager, Philips;	None	None	None	None
Business Unit General Manager	Republic of China	Jerry Hsu	2013.08.19	885,322	0.04%	1,552	0%	0	0%	Department of Electronics, Lunghwa University of Science and Technology; Engineer of power support design, ALITECH CO., LTD	None	None	None	None
VP	Republic of China	CY Chung	2013.10.02	85,050	0%	11,055	0%	0	0%	Industrial Management, National Cheng Kung University; Acting SBG Head, Hon Hai Precision Industrial Corp.	None	None	None	None
VP	Republic of China	Joe Wu	2014.03.20	45,436	0%	0	0%	0	0%	Biomedical Engineering , Chung Yuan Christian University; AVP, First International Computer, Inc.	None	None	None	None
Business Unit General Manager	Republic of China	Michael Wang	2014.06.13	70,594	0%	0	0%	0	0%	Master of Information Engineering, Tamkang University; General Manager,Lite-On Automotive Corp.	None	None	None	None
VP	Republic of China	TsungCheng Wang	2014.06.13	41,777	0%	5,170	0%	0	0%	Ph.D, Mechanical Eng,Wayne State University; General Manager,Lite-On Automotive Corp.	None	None	None	None
Business Group CEO	Republic of China	Charlie Tseng	2014.08.12	0	0%	0	0%	0	0%	EMBA,National Chiao Tung University; CEO, Lite-On IT Corporation	None	None	None	None
Business Unit General Manager	Republic of China	David Yeh	2014.08.12	40,000	0%	0	0%	0	0%	Master of Administration,Tulane University; General Manager,Leotek Electronics Corp.	None	None	None	None

29 ‧Lite-On Technology Corporation 2015 Annual Report

Lite-On Technology Corporation 2015 Annual Report‧

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Title (Note 1)	Nationality	Name	Date of appointment (offce)	Proportion of shareholding	Proportion of shareholding	Proportion of shareholding by spouse and underage children	Proportion of shareholding by spouse and underage children	Proportion of shareholding under the title of a third party	Proportion of shareholding under the title of a third party	Major Background Information (note 2)	Other positions of other companies	Manager who is the spouse or kin within the 2nd tier of the Civil Code	Manager who is the spouse or kin within the 2nd tier of the Civil Code	Manager who is the spouse or kin within the 2nd tier of the Civil Code
				shares	%	shares	%	shares	%			Title	Name	Relationship

VP	Republic of China	James Hwang	2014.08.12	3,025	0%	0	0%	0	0%	Ph.D, Material Engineering,University of Michigan; VP,Leotek Electronics Corp.	None	None	None	None
VP	Republic of China	Chino Chen	2014.09.01	19,000	0%	0	0%	0	0%	Master of Mechanical Engineering, National Taiwan University; MTD Director, Lite-On IT Corporation	None	None	None	None
Business Unit General Manager	Republic of China	Hai Huang	2015.01.01	294,763	0.01%	0	0%	0	0%	Department of Electronic Engineering,National Taiwan Ocean University; Business Unit Director,Lite-On Tech. Co.	None	None	None	None
VP	Republic of China	Jean Hong	2015.09.07	0	0%	0	0%	0	0%	MBA,Preston University; AVP, Finance Dept, Lite-On Technology Corporation.	None	None	None	None
Business Unit General Manager	Republic of China	Allen Hsu	2015.11.02	1,631,000	0.07%	0	0%	0	0%	Master of Institute of Computer Science and Engineering,National Chiao Tung University; Special Assistant,Senao Networks,Inc.	None	None	None	None
Business Unit General Manager	Singapore	Franki Choi	2016.02.02	0	0%	0	0%	0	0%	MBA,National University of Singapore; General manager,STL Technology co.,Ltd.	None	None	None	None
Chief Finance and Accounting Offcer Finance General Manager	Republic of China	Brownson Chu	2004.10.22	973,018	0.04%	586	0%	0	0%	Department of Accounting, Feng Chia University; CFO, Finance Dept, Lite-On IT Corporation	Director, Logah Technology Corp. Director, Dragonjet Corp.	None	None	None
VP/Chief Audit Offcer	Republic of China	Lando Lin	2014.10.01	522,921	0.02%	721	0%	0	0%	Department of Accounting, Feng Chia University; Special Assistant,Lite-On Tech. Co.	None	None	None	None

Note 1: Management information shall include CEO, Vice CEO, General Manager and Supervisor of each department. For those managers with equivalent position to CEO, Vice CEO, or General Managers should be all disclosed. Note 2: Experience relate to current position. If the person had worked in the company’s appointed auditing firm or affiliates during the reporting period, please specify the job field and job title in above form.

31 ‧Lite-On Technology Corporation 2015 Annual Report

Lite-On Technology Corporation 2015 Annual Report‧

3.5 Statement of Internal Control System

Capital and Shares

Lite-On Technology Corporation

Statement of Internal Control System

Date: March 25, 2016

Based on the findings of a self-assessment, Lite-On Technology Corporation (LOT) states the following with regard to its internal control system during the year 2015:

LOT is fully aware that establishing, operating, and maintaining an internal control system are the responsibilities of its Board of Directors and management. LOT has established such a system to provide reasonable assurance in achieving objectives related to the effectiveness and efficiency of operations (including profits, performance, and safeguarding of assets), reliability, timeliness, transparency, and regulatory compliance of reporting and compliance with applicable laws, regulations, and bylaws.
An internal control system has inherent limitations. An effective internal control system, no matter how perfectly designed, can provide only a reasonable assurance in the accomplishment of the three objectives mentioned above. Furthermore, the effectiveness of an internal control system may change along with changes in environment or circumstances. The internal control system of LOT contains self-monitoring mechanisms, and LOT takes corrective actions as soon as a deficiency is identified.
LOT evaluates the design and operating effectiveness of its internal control system based on the criteria provided in the “Regulations Governing the Establishment of Internal Control Systems by Public Companies ” (herein referred to as “Regulations”). The internal control system evaluation criteria stated in the Regulations classify internal control into five key elements based on the process of management control: 1. control environment, 2. risk assessment, 3. control activities, 4. information and communications, and 5.monitoring. Each component further contains several items. Please refer to the Regulations for details.
LOT has evaluated the design and operating effectiveness of its internal control system according to the aforesaid criteria.
Based on the findings of the evaluation mentioned in the preceding paragraph, LOT believes that as at December 31, 2015, its internal control system (including its supervision and management of subsidiaries), which encompasses internal controls for the knowledge of the degree of achieving operational effectiveness and efficiency objectives, reliability, timeliness, transparency, and regulatory compliance of reporting and compliance with applicable laws, regulations, and bylaws, was effectively designed and operated and reasonably assured the achievement of the above-stated objectives.
This Statement will form an integral part of LOT’s Annual Report and Prospectus and will be made public. Any falsehood, concealment, or other illegality in the content made public will entail legal liability under Articles 20, 32, 171 and 174 of the Securities and Exchange Act.
This Statement has been passed by the LOT Board of Directors’ Meeting on March 25, 2016, where all of the eleven attending directors did not express any dissenting opinion and affirmed the content of this Statement.

Lite-On Technology Corporation

Raymond Soong Chairman

Warren Chen CEO

4.1 The Top-10 Shareholders and Information of Related Parties

2016/4/26

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Specify the names and relations of the
top-10 shareholders who are related-
Shareholding by spouse and Shareholding under the title of
Shareholding by self parties as stated in SFAS No. 6, or spouse
Name underage children a third party or kindred within the 2nd tier under the
Civil Code
Quantity of Proportion of Quantity of Proportion of Quantity of Proportion of Title Relation
shares shareholding shares shareholding shares shareholding (or name)
----- End of picture text -----

Name	Shareholding by self	Shareholding by self	Shareholding by spouse and underage children	Shareholding by spouse and underage children	Shareholding under the title of a third party	Shareholding under the title of a third party	Specify the names and relations of the top-10 shareholders who are related- parties as stated in SFAS No. 6, or spouse or kindred within the 2nd tier under the Civil Code	Specify the names and relations of the top-10 shareholders who are related- parties as stated in SFAS No. 6, or spouse or kindred within the 2nd tier under the Civil Code
	Quantity of shares	Proportion of shareholding	Quantity of shares	Proportion of shareholding	Quantity of shares	Proportion of shareholding	Title (or name)	Relation

Ta-Rong Investment Co., Ltd.	82,490,995	3.53%	0	0%	0	0%	Raymond Soong	Director
Ta-Rong Investment Co., Ltd. Representative: Shu- Yan Tsai	44,068	0%	0	0%	0	0%	Ming-Hsing /Yuan Pao Development/Ta-Sung ( Investment Co., Ltd. )	Representative/ Director
Raymond Soong	78,908,736	3.38%	14,891,742	0.64%	0	0%	Ta-Rong /Yuan Pao Development/Ta-Sung/ Ming-Hsing ( Investment Co., Ltd. )	Director
FUBON LIFE INSURANCE CO.,LTD	67,808,623	2.90%	0	0%	0	0%	None	None
FUBON LIFE INSURANCE CO.,LTD Representative: Pen- Yuan Cheng	0	0%	0	0%	0	0%	None	None
NAN SHAN LIFE INSURANCE CO.,LTD	67,199,519	2.88%	0	0%	0	0%	None	None
NAN SHAN LIFE INSURANCE CO.,LTD Representative:Ying- Tsung Tu	0	0%	0	0%	0	0%	None	None
CAPITAL SECURITIES NOMINEE LIMITED	64,862,783	2.78%	0	0%	0	0%	None	None
Ta-Sung Investment Co., Ltd.	46,854,554	2.01%	0	0%	0	0%	Raymond Soong: Shu-Yan Tsai	Director
Ta-Sung Investment Co., Ltd. Representative: Keh- Shew Lu	0	0%	0	0%	0	0%	None	None
Ta-Sung Investment Co., Ltd. Representative: Rick Wu	993,068	0.04%	51,097	0%	0	0%	None	None
Ming-Hsing Investment Co., Ltd.	45,179,843	1.93%	0	0%	0	0%	Raymond Soong	Director
Ming-Hsing Investment Co., Ltd. Representative: Shu- Yan Tsai	44,068	0%	0	0%	0	0%	Ta-Rong /Yuan Pao Development/Ta-Sung ( Investment Co., Ltd. )	Representative/ Director
Government of Singapore	39,804,898	1.70%	0	0%	0	0%	None	None
Yuan Pao Development & Investment Co. Ltd.	39,277,570	1.68%	0	0%	0	0%	Raymond Soong: Shu-Yan Tsai	Director
Yuan Pao Development & Investment Co. Ltd. Representative : CH Chen	0	0%	0	0%	0	0%	None	None
Yuan Pao Development & Investment Co. Ltd. Representative : David Lee	6,484	0%	0	0%	0	0%	None	None
GMO Emerging Markets Fund	36,281,836	1.55%	0	0%	0	0%	None	None

33 ‧Lite-On Technology Corporation 2015 Annual Report

Lite-On Technology Corporation 2015 Annual Report‧

4.2 The Structure of Shareholders

2016/4/26	2016/4/26	2016/4/26	2016/4/26	2016/4/26	2016/4/26	2016/4/26	2016/4/26
	Governmental Organizations	Financial Institutions	Other Institutional Investors	Individuals	Foreign Institutional Shareholders and Individuals	The People's Republic of China Individuals	Total
Numbers of Shareholders	6	18	311	143,296	826	0	144,457
Holding Shares	133	231,736,471	467,127,389	524,586,987	1,111,477,357	0	2,334,928,337
Holding Stake	0%	9.92%	20.01%	22.47%	47.60%	0%	100%

4.3 Change in the Proportion of Shareholding among the Directors, Managers,

and Major Shareholders

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Title (note 1) Name 2015 Current period to April 26
Change in number Change in number Change in number Change in number
of shareholdings of shares pledged of shareholdings of shares pledged
under lien under lien
----- End of picture text -----

Title (note 1)	Name	2015	2015	Current period to April 26	Current period to April 26
		Change in number of shareholdings	Change in number of shares pledged under lien	Change in number of shareholdings	Change in number of shares pledged under lien

Chairman	Raymond Soong	392,580	0	0	0
Vice Chairman	Lite-ON Capital Inc.	74,829	0	0	0
	Representative: Warren Chen	(400,859)	0	0	0
Director	David Lin	56,713	0	0	0
Director	Dorcas Investment Co., Ltd	29,948	0	0	0
	Representative:Joseph Lin	1,468	0	0	0
Director	Ta Sung Investment Co., Ltd.	233,107	0	0	0
	Representative: Keh Shew Lu	0	0	0	0
Director	Ta Sung Investment Co., Ltd.	233,107	0	0	0
	Representative: Rick Wu	4,940	0	0	0
Director	Yuan Pao Development & Investment Co., Ltd.:	184,465	0	2,200,000	0
	Representative: CH Chen	0	0	0	0
Director	Yuan Pao Development & Investment Co., Ltd.:	184,465	0	2,200,000	0
	Representative: David Lee	32	0	0	0
Independent Director	Kuo-Feng Wu	0	0	0	0
Independent Director	Harvey Chang	0	0	0	0
Independent Director	Edward Yang	0	0	0	0
Vice Chairman/ GCEO	Warren Chen	(400,859)	0	0	0
Business Group CEO	Danny Liao	252,450	0	(250,000)	0

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Title (note 1)	Name	2015	2015	Current period to April 26	Current period to April 26
		Change in number of shareholdings	Change in number of shares pledged under lien	Change in number of shareholdings	Change in number of shares pledged under lien

Business Group President	Alexander Huang	(51,975)	0	(155,000)	0
Business Unit General Manager	Shilung Chiang	(302,457)	0	0	0
Business Group CEO	Peter Chiu	196,100	0	0	0
Operation Controlling General Manager	DI Wang	2,054	0	0	0
HR General Manager	Albert Chang	108,633	0	0	0
Business Group President	Rex Chuang	(86,191)	0	(210,000)	0
VP	Sonny Chao	50,116	0	0	0
Senior VP	TC Huang	68,923	0	(10,000)	0
Business Group CEO	Johnson Sun	278,019	0	(179,300)	0
Business Unit General Manager	Henry Chen	39,414	0	(35,000)	0
VP	Wing Eng	91,674	0	0	0
VP	HY Lee	48,952	0	0	0
VP	Victor Hsu	58,300	0	0	0
VP	Joseph SK Chen	50,257	0	0	0
VP	Johnson Wang	(9,749)	0	(5,000)	0
VP	Anson Chiu	85,520	0	0	0
Business Unit General Manager	BC Liao	66,228	0	0	0
Business Unit General Manager	Jerry Hsu	98,931	0	0	0
VP	CY Chung	75,050	0	0	0
VP	Joe Wu	35,051	0	0	0
Business Unit General Manager	Michael Wang	70,002	0	0	0
VP	TsungCheng Wang	45,033	0	(10,000)	0
Business Group CEO	Charlie Tseng	47,000	0	(47,000)	0
Business Unit General Manager	David Yeh	40,000	0	0	0
VP	James Hwang	2,005	0	0	0
VP	Chino Chen	100,000	0	(81,000)	0

35 ‧Lite-On Technology Corporation 2015 Annual Report

Lite-On Technology Corporation 2015 Annual Report‧

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Title (note 1)	Name	2015	2015	Current period to April 26	Current period to April 26
		Change in number of shareholdings	Change in number of shares pledged under lien	Change in number of shareholdings	Change in number of shares pledged under lien

Business Unit General Manager	Hai Huang	81,068	0	0	0
VP	Jean Hong	0	0	0	0
Business Unit General Manager	Allen Hsu	0	0	0	0
Business Unit General Manager	Franki Choi	0	0	0	0
Chief Finance and Accounting Offcer Finance General Manager	Brownson Chu	109,318	0	0	0
VP/Chief Audit Offcer	Lando Lin	62,303	0	0	0

Financial Information

5.1 Consolidated Financial Statements of 2015

Lite-On Technology Corporation and Subsidiaries

Consolidated Financial Statements for the Years Ended December 31, 2015 and 2014 and Independent Auditors’ Report

37 ‧Lite-On Technology Corporation 2015 Annual Report

Lite-On Technology Corporation 2015 Annual Report‧

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

The companies required to be included in the consolidated financial statements of affiliates in accordance with the “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises” for the year ended December 31, 2015 are all the same as the companies required to be included in the consolidated financial statements of parent and subsidiary companies as provided in International Financial Reporting Standards No. 10 “Consolidated Financial Statements”. Relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. Hence, we do not prepare a separate set of consolidated financial statements of affiliates.

Very truly yours,

LITE-ON TECHNOLOGY CORPORATION

RAYMOND SOONG Chairman

March 25, 2016

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39 ‧Lite-On Technology Corporation 2015 Annual Report

Lite-On Technology Corporation 2015 Annual Report‧

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Note 6) Financial assets at fair value through profit or loss - current (Note 7) Available-for-sale financial assets - current (Note 8) Debt instruments with no active market - current (Note 10) Notes receivable Trade receivables, net (Note 11) Trade receivables from related parties (Note 34) Other receivables Other receivables from related parties (Note 34) Inventories, net (Note 12) Non-current assets classified as held for sale (Note 13) Other current assets (Note 19) Total current assets NONCURRENT ASSETS Available-for-sale financial assets - non-current (Note 8) Debt instruments with no active market - non-current (Note 10) Investments accounted for using equity method (Note 15) Property, plant and equipment, net (Note 16) Investment properties, net (Note 17) Intangible assets, net (Note 18) Deferred tax assets Refundable deposits Other noncurrent assets (Note 19) Total noncurrent assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Note 20) Financial liabilities at fair value through profit or loss - current (Note 7) Derivative financial instruments for hedging- current (Note 9) Notes payable Trade payables Trade payables to related parties (Note 34) Other payables Other payables to related parties (Note 34) Current tax liabilities Provisions - current (Note 22) Advance receipts Current portion of long-term borrowings (Note 20) Finance lease payables - current (Note 21) Total current liabilities NONCURRENT LIABILITIES Derivative financial instruments for hedging - noncurrent (Note 9) Long-term borrowings, net of current portion (Note 20) Deferred tax liabilities Finance lease payables, net of current portion (Note 21) Net defined benefit liabilities - noncurrent (Note 23) Guarantee deposits Total noncurrent liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY Share capital Ordinary shares Advance receipts for common stock Total share capital Capital surplus Additional paid-in capital from share issuance in excess of par value Bond conversion Treasury stock transactions Difference between consideration and carrying amounts adjusted arising from changes in percentage of ownership in subsidiaries Arising from share of changes in capital surplus of associates Merger Employee stock options Total capital surplus Retain earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Exchange differences on translating foreign operations Unrealized gain (loss) on available-for-sale financial assets Unrealized loss on cash flow hedging Total other equity Treasury shares Total equity attributable to owners of the Company NONCONTROLLING INTERESTS Total equity TOTAL		December 31, 2015		December 31, 2014 (Restated)		January 1, 2014 (Restated)
		Amount % $ 65,501,807 31 53,211 - - - 694,435 - 300,825 - 50,079,869 24 66,338 - 1,289,849 1 10,481 - 28,826,436 14 - - 3,744,824 2 150,568,075 72 670,328 - 834 - 4,095,167 2 33,389,439 16 499,950 - 15,938,232 8 3,164,798 2 579,758 - 747,282 - 59,085,788 28 $ 209,653,863 100 $ 17,670,878 8 55,945 - - - 178,594 - 58,224,636 28 856,945 - 21,118,958 10 12,941 - 2,475,535 1 1,068,810 1 3,275,828 2 4,796,118 2 95,501 - 109,830,689 52 - - 16,355,753 8 3,531,564 2 5,398 - 155,854 - 91,012 - 20,139,581 10 129,970,270 62 23,349,283 11 - - 23,349,283 11 9,251,603 4 7,462,138 4 275,516 - 43,236 - 278,747 - 10,015,194 5 - - 27,326,434 13 10,123,042 5 232,213 - 13,011,073 6 23,366,328 11 3,347,902 2 (152,714 ) - - - 3,195,188 2 (1,248,722) (1) 75,988,511 36 3,695,082 2 79,683,593 38 $ 209,653,863 100		Amount % $ 66,483,356 31 13,111 - - - 78,170 - 311,666 - 51,134,012 23 73,069 - 1,420,019 1 3,053 - 29,513,791 14 129,505 - 4,561,144 2 153,720,896 71 1,326,255 1 518 - 4,055,902 2 36,107,216 17 537,030 - 16,298,963 8 3,105,466 1 492,255 - 889,328 - 62,812,933 29 $ 216,533,829 100 $ 22,911,114 11 38,408 - 11,989 - 122,947 - 61,920,859 29 953,666 - 19,693,248 9 6,741 - 2,272,036 1 1,080,628 - 2,832,769 1 8,358,989 4 85,232 - 120,288,626 55 - - 13,564,160 6 3,229,792 2 101,721 - 96,021 - 80,871 - 17,072,565 8 137,361,191 63 23,416,737 11 - - 23,416,737 11 9,238,931 4 7,534,962 4 445,694 - 30,960 - 231,446 - 10,112,934 5 - - 27,594,927 13 9,476,876 5 49,669 - 11,432,541 5 20,959,086 10 4,125,097 2 139,072 - (11,989) - 4,252,180 2 (1,248,722) (1) 74,974,208 35 4,198,430 2 79,172,638 37 $ 216,533,829 100		Amount % $ 66,056,220 31 14,867 - 13 - 22,390 - 175,756 - 49,500,169 23 81,554 - 2,319,810 1 18,951 - 27,203,533 13 - - 5,037,428 3 150,430,691 71 2,143,990 1 14,100 - 3,531,425 2 37,001,382 17 - - 15,716,262 7 2,204,470 1 390,443 - 925,989 1 61,928,061 29 $ 212,358,752 100 $ 15,576,780 7 27,836 - - - 191,488 - 60,307,826 29 568,624 - 21,352,914 10 11,699 - 2,102,971 1 874,502 1 1,401,939 1 8,867,669 4 72,735 - 111,356,983 53 46,969 - 18,508,496 9 2,721,656 1 172,948 - 219,709 - 81,608 - 21,751,386 10 133,108,369 63 23,246,552 11 29,705 - 23,276,257 11 9,096,489 4 7,540,388 4 430,851 - - - 15,487 - 10,120,217 5 8,587 - 27,212,019 13 8,601,391 4 689,913 - 12,176,414 6 21,467,718 10 2,383,040 1 83,231 - (46,969) - 2,419,302 1 (1,334,660) (1) 73,040,636 34 6,209,747 3 79,250,383 37 $ 212,358,752 100

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OPERATING REVENUE Sales (Notes 25 and 34) Less: Sales allowance Sales returns Total operating revenue COST OF GOODS SOLD (Notes 12, 28 and 34) GROSS PROFIT OPERATING EXPENSES (Notes 28 and 34) Selling and marketing expenses General and administrative expenses Research and development expenses Total operating expenses OPERATING INCOME NONOPERATING INCOME AND EXPENSES Share of profit of associates (Note 15) Interest income Dividend income Other income (Notes 30 and 34) Gain (loss) on disposal of investments Net gain on foreign currency exchange Gain on financial assets at fair value through profit or loss (Note 7) Finance costs Other expenses Net loss on disposal of property, plant and equipment Impairment loss (Notes 8 and 16) Total nonoperating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (Note 26) NET PROFIT FOR THE YEAR		For the Years Ended December 31	For the Years Ended December 31	For the Years Ended December 31
		2015 Amount % $ 222,826,970 103 4,258,037 2 1,640,199 1 216,928,734 100 188,787,517 87 28,141,217 13 7,450,517 3 6,051,269 3 5,986,608 3 19,488,394 9 8,652,823 4 124,439 - 1,170,008 - 66,500 - 1,573,429 1 (71,351) - 123,658 - 360,034 - (578,715) - (1,087,531) (1) (15,465) - (311,188) - 1,353,818 - 10,006,641 4 2,693,809 1 7,312,832 3		2014(Restated)
				Amount % $ 237,313,030 103 3,733,656 2 2,947,400 1 230,631,974 100 202,383,860 88 28,248,114 12 8,794,035 4 5,955,613 2 6,372,383 3 21,122,031 9 7,126,083 3 41,056 - 1,357,118 1 39,824 - 1,305,569 - 468,873 - 58,022 - 249,729 - (673,634) - (703,177) - (77,334) - (1,444,257) (1) 621,789 - 7,747,872 3 2,070,880 1 5,676,992 2 (Continued)

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

41 ‧Lite-On Technology Corporation 2015 Annual Report

Lite-On Technology Corporation 2015 Annual Report‧

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OTHER COMPREHENSIVE INCOME (Notes 23, 24 and 26) Items that will not be reclassified subsequently to profit or loss Remeasurement of defined benefit plans Share of the other comprehensive loss of associates accounted for using the equity method Income tax relating to items that will not be reclassified subsequently to profit or loss Items that may be reclassified subsequently to profit or loss Exchange differences on translating foreign operations Unrealized gain (loss) on available-for-sale financial assets Unrealized gain on hedging instruments determined to be the effective portion of cash flow hedging Share of the other comprehensive income (loss) of associates accounted for using the equity method Income tax relating to items that may be reclassified subsequently to profit or loss Other comprehensive income (loss) for the year, net of income tax TOTAL COMPREHENSIVE INCOME FOR THE YEAR NET PROFIT ATTRIBUTABLE TO: Owners of the Company Non-controlling interests		For the Years Ended December 31	For the Years Ended December 31	For the Years Ended December 31
		2015 Amount % $ (75,240) - (25,529) - 15,604 - (85,165) - (932,034) - (292,354) - 11,989 - (27,849) - 130,178 - (1,110,070) - (1,195,235) - $ 6,117,597 3 $ 7,222,899 3 89,933 - $ 7,312,832 3		2014(Restated)
				Amount % $ 27,065 - (12,836) - (8,647) - 5,582 - 2,115,652 1 53,856 - 34,980 - 167,523 - (424,675) - 1,947,336 1 1,952,918 1 $ 7,629,910 3 $ 6,460,808 3 (783,816) (1) $ 5,676,992 2 (Continued)

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: Owners of the Company Non-controlling interests EARNINGS PER SHARE (NEW TAIWAN DOLLARS; Note 27) Basic Diluted		For the Years Ended December 31	For the Years Ended December 31	For the Years Ended December 31
		2015 Amount % $ 6,080,431 3 37,166 - $ 6,117,597 3 $3.11 $3.07		2014(Restated)
				Amount % $ 8,306,764 3 (676,854) - $ 7,629,910 3 $2.78 $2.75

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

(Concluded)

43 ‧Lite-On Technology Corporation 2015 Annual Report

Lite-On Technology Corporation 2015 Annual Report‧

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In Thousands of New Taiwan Dollars)

										Equity Attributa	ble to Owners of the	Company
		Issue of Share Cap	ital(Note 24)	Total $ 23,276,257 - 23,276,257 - - - 116,381 - - - - 40,849 - - - - - - - (16,750) 23,416,737 - - - 117,084 - - - 43,332 - - - - (227,870) $ 23,349,283				Capital Surplus	(Note 24)			Total $ 27,212,019 - 27,212,019 - - - - - - 30,060 207,510 149,096 - 65,430 - - - - - (69,188) 27,594,927 - - - - - 12,276 47,301 102,960 47,779 - - - (478,809) $ 27,326,434	R	etained Earnings (N	otes 24 and 31)	Total $ 21,463,386 4,332 21,467,718 - - (6,307,866 ) (116,381 ) - (543,482 ) - - - - - - - 6,460,808 (1,711) 6,459,097 - 20,959,086 - - (4,613,097 ) (117,084 ) - - - - - 7,222,899 (85,476) 7,137,423 - $ 23,366,328		Other Equity (Not	es 24 and 30)	Total $ 2,419,302 - 2,419,302 - - - - - - - - - - - (1,240 ) (13,549 ) - 1,847,667 1,847,667 - 4,252,180 - - - - - - - - - - (1,056,992) (1,056,992) - $ 3,195,188
					Additional Paid-in Capital from Share Issuance in Excess of Par Value $ 9,096,489 - 9,096,489 - - - - - - - - 149,096 - - - - - - - (6,654) 9,238,931 - - - - - - - 102,960 - - - - (90,288) $ 9,251,603	Bond Conversion T $ 7,540,388 - 7,540,388 - - - - - - - - - - - - - - - - (5,426) 7,534,962 - - - - - - - - - - - - (72,824) $ 7,462,138	reasury Stock Transactions $ 430,851 - 430,851 - - - - - - (206 ) (556 ) - - 65,430 - - - - - (49,825) 445,694 - - - - - - - - 47,779 - - - (217,957) $ 275,516	Difference Between Consideration and Carry Amounts Adjusted Arising from Changes in Percentage of Ownership in Subsidiaries C $ - - - - - - - - - 30,960 - - - - - - - - - - 30,960 - - - - - 12,276 - - - - - - - $ 43,236	Arising from Share of Changes in apital Surplus of Associates $ 15,487 - 15,487 - - - - - - - 215,959 - - - - - - - - - 231,446 - - - - - - 47,301 - - - - - - $ 278,747	Merger $ 10,120,217 - 10,120,217 - - - - - - - - - - - - - - - - (7,283) 10,112,934 - - - - - - - - - - - - (97,740) $ 10,015,194	Employee Stock Options $ 8,587 - 8,587 - - - - - - (694 ) (7,893 ) - - - - - - - - - - - - - - - - - - - - - - - $ -
																	Exchange Differences on Translating Foreign Operations $ 2,383,040 - 2,383,040 - - - - - - - - - - - (1,240 ) (13,549 ) - 1,756,846 1,756,846 - 4,125,097 - - - - - - - - - - (777,195) (777,195) - $ 3,347,902	Unrealized Gain on Available-for- sale Financial Assets $ 83,231 - 83,231 - - - - - - - - - - - - - - 55,841 55,841 - 139,072 - - - - - - - - - - (291,786) (291,786) - $ (152,714)	Cash Flow Hedges $ (46,969 ) - (46,969) - - - - - - - - - - - - - - 34,980 34,980 - (11,989 ) - - - - - - - - - - 11,989 11,989 - $ -
(	Share In Thousands) 2,324,655 - 2,324,655 - - - 11,638 - - - - 4,085 2,971 - - - - - - (1,675) 2,341,674 - - - 11,708 - - - 4,333 - - - - (22,787) 2,334,928	Amount $ 23,246,552 - 23,246,552 - - - 116,381 - - - - 40,849 29,705 - - - - - - (16,750) 23,416,737 - - - 117,084 - - - 43,332 - - - - (227,870) $ 23,349,283	Advance Receipts for Common Stock $ 29,705 - 29,705 - - - - - - - - - (29,705 ) - - - - - - - - - - - - - - - - - - - - - $ -
													Legal Reserve S $ 8,601,391 - 8,601,391 875,485 - - - - - - - - - - - - - - - - 9,476,876 646,166 - - - - - - - - - - - - $ 10,123,042	pecial Reserve U $ 689,913 - 689,913 - (640,244 ) - - - - - - - - - - - - - - - 49,669 - 182,544 - - - - - - - - - - - $ 232,213	nappropriated Earnings $ 12,172,082 4,332 12,176,414 (875,485 ) 640,244 (6,307,866 ) (116,381 ) - (543,482 ) - - - - - - - 6,460,808 (1,711) 6,459,097 - 11,432,541 (646,166 ) (182,544 ) (4,613,097 ) (117,084 ) - - - - - 7,222,899 (85,476) 7,137,423 - $ 13,011,073

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

45 ‧Lite-On Technology Corporation 2015 Annual Report

Lite-On Technology Corporation 2015 Annual Report‧

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Adjustments for: Depreciation expenses Amortization expenses Impairment loss recognized (reversal of impairment loss) on trade receivables Net gain on fair value change of financial assets designated as at fair value through profit or loss Finance costs Interest income Dividend income Share of gain of associates accounted for using equity method Loss on disposal of property, plant and equipment Gain on deconsolidation of subsidiaries (Note 30) Net gain (loss) on disposal of available-for-sale financial assets Gain on disposal of associates Impairment loss recognized on financial assets Impairment loss recognized (reversal of impairment loss) on non-financial assets Unrealized net loss (gain) on foreign currency exchange Recognition of provisions Changes in operating assets and liabilities Financial instruments held for trading Notes receivable Trade receivables Trade receivables from related parties Other receivables Other receivables from related parties Inventories Other current assets Notes payable Trade payables Trade payables from related parties Other payables Other payables from related parties Provisions Advance receipts Net defined benefit liabilities - noncurrent Cash generated from operations Interest received Dividend received		For the Years Ended December 31
		2015 2014 (Restated) $ 10,006,641 $ 7,747,872 6,746,130 7,108,539 534,128 568,508 (51,276) 108,831 (360,034) (249,729) 578,715 673,634 (1,170,008) (1,357,118) (66,500) (39,824) (124,439) (41,056) 15,465 77,334 - (8,348) 79,052 (422,324) (7,701) (46,549) 124,667 212,956 (52,450) 2,077,506 117,060 (196,979) 286,549 341,704 337,471 262,057 10,841 (135,910) 890,123 (888,927) 6,731 8,485 134,955 940,017 (7,428) 15,898 821,149 (2,530,316) 803,571 493,806 55,647 (68,541) (3,654,138) 1,054,233 (96,721) 385,042 1,159,926 (1,497,329) 6,200 (4,958) (301,940) (140,685) 452,621 1,376,959 (15,407) (118,107) 17,259,600 15,706,681 1,162,036 1,347,747 66,500 39,824 (Continued)

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)

Interest paid Income tax paid Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of available-for-sale financial assets Proceeds on sales of available-for-sale financial assets Proceeds of acquisition of debt instruments with no active market Net cash inflow on disposal of associates Net cash outflow on acquisition of subsidiaries (Note 29) Net cash outflow on disposal of subsidiaries (Note 30) Proceeds from capital reduction of investments accounted for using equity method Proceeds of disposal of non-current assets classified as held for sale Payments for property, plant and equipment Proceeds of the disposal of property, plant and equipment Increase in refundable deposits Purchase for intangible assets Proceeds of the disposal of intangible assets Decrease in other noncurrent assets Dividend received from associates Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term borrowings Decrease in short-term borrowings Repayment of long-term borrowings Proceed from (refund of) guarantee deposits received Decrease in finance lease payables Dividends paid to owners of the Company Payments for buy-back of ordinary shares Partial acquisition of interests in subsidiaries (Note 31) Dividends paid to noncontrolling interests Net cash used in financing activities EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES		For the Years Ended December 31
		2015 2014 (Restated) $ (569,673) $ (668,047) (2,366,201) (2,294,788) 15,552,262 14,131,417 (5,375) (10,205) 202,200 738,493 (619,768) (42,198) 15,432 127,894 - (811,374) - (902,385) - 271,931 129,505 - (5,150,538) (8,645,137) 946,448 634,898 (87,503) (98,283) (247,234) (384,136) 24,750 6,538 138,859 53,384 76,884 40,417 (4,576,340) (9,020,163) - 7,079,518 (5,195,615) - (717,096) (5,760,241) 10,141 (737) (86,054) (58,872) (4,565,318) (6,242,436) (706,679) - - (1,013,168) (540,514) (127,371) (11,801,135) (6,123,307) (156,336) 1,439,189 (Continued)

47 ‧Lite-On Technology Corporation 2015 Annual Report

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LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

For the Years Ended December 31 2015 2014 (Restated) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ (981,549) $ 427,136 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 66,483,356 66,056,220 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR $ 65,501,807 $ 66,483,356 The accompanying notes are an integral part of the consolidated financial statements. (Concluded)		For the Years Ended December 31

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

Lite-On Technology Corporation (the “Parent Company”) was established in March 1989. The Parent Company’s shares have been listed on the Taiwan Stock Exchange. The Parent Company manufactures and markets (1) computer software, hardware, peripherals and components, (2) monitors, multifunction and all-in-one printers, cameras and Internet systems and image-processing equipment; (3) information storage and process equipment, electronic components and office equipment; (4) electronic coils, transformers, power suppliers and electronic hardware parts; (5) light-emitting diode (LED) products; (6) electronic car products; and (7) optical lens modules and optoelectronic components.

The Parent Company merged with Lite-On Electronics, Inc., Silitek Corp. and GVC Corp., with the Parent Company as the survivor entity. The merger took effect on November 4, 2002, and the Parent Company thus assumed all rights and obligations of the three merged companies on that date. The Parent Company merged with its subsidiary, Lite-On Enclosure Inc., with the Parent Company as the survivor entity. The merger took effect on April 1, 2004, and the Parent Company thus assumed all rights and obligations of its former subsidiary on that date.

The Parent Company separately merged with Li Shin International Enterprise Corp., Lite-On Clean Energy Technology Corp., Lite-On Automotive Corp., Leotek Electronics Corp., Lite-On IT Corporation and LarView Technologies Corp., with the Parent Company as the survivor entity. The merger separately took effect on March 22, 2014, April 15, 2014, June 1, 2014, June 29, 2014, June 30, 2014 and September 1, 2014, and the Parent Company thus assumed all rights and obligations of the six merged companies on those date.

The consolidated financial statements are presented in the Parent Company’s functional currency, the New Taiwan dollars.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Parent Company board of directors on March 25, 2016.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

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

Rule No. 1030029342 and Rule No. 1030010325 issued by the FSC on April 3, 2014, stipulated that the Parent Company and its subsidiaries (collectively, the “Group”) should apply the 2013 version of IFRS, IAS, IFRIC and SIC (collectively, the “IFRSs”) endorsed by the FSC and the related amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers starting January 1, 2015.

49 ‧Lite-On Technology Corporation 2015 Annual Report

Lite-On Technology Corporation 2015 Annual Report‧

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

1) IFRS 10 “Consolidated Financial Statements”

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

2) IFRS 12 “Disclosure of Interests in Other Entities”

IFRS 12 is a new disclosure standard and is applicable to entities that have interests in subsidiaries, joint arrangements, associates and unconsolidated structured entities. In general, the disclosure requirements in IFRS 12 are more extensive than in previous standards. Please refer to Note 14 and Note 15 for related disclosures.

3) IFRS 13 “Fair Value Measurement”

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

The fair value measurements under IFRS 13 are applied prospectively from January 1, 2015. Refer to Note 33 for related disclosures.

4) Amendment to IAS 1 “Presentation of Items of Other Comprehensive Income”

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

The Group retrospectively applied the above amendments starting from 2015. Items not expected to be reclassified to profit or loss are remeasurements of the defined benefit plans. Items expected to be reclassified to profit or loss are the exchange differences on translating foreign operations, unrealized gains (loss) on available-for-sale financial assets, cash flow hedges, and share of the other comprehensive income (except the share of the remeasurements of the defined benefit plans) of subsidiaries and associates accounted for using the equity method. The application of the above amendments did not result in any impact on the net profit for the year, other comprehensive income for the year (net of income tax), and total comprehensive income for the year.

5) Revision to IAS 19 “Employee Benefits”

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

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

On initial application of the revised IAS 19, the changes in cumulative employee benefit costs as of December 31, 2013 that resulted from the retrospective application in the past are adjusted to net defined benefit liabilities, deferred tax assets and other equity and retained earnings; the carrying amounts of inventories are not adjusted.

The impact of the new standards on the current period is set out below:

	December 31,	December 31,
Impact on Assets, Liabilities and Equity		2015
Decrease in deferred tax assets	$	(1,940)
Decrease in net defined benefit liabilities	$	(11,254)
Increase in retained earnings	$	3,214
Non-controlling interests		6,100
Total effect on equity	$	9,314
	For the Year
		Ended
	December 31,
Impact on Total Comprehensive Income		2015
Increase in operating cost	$	(395)
Increase in operating expense		(1,201)
Decrease in income tax expense		263
Decrease in net profit for the year	$	(1,333)
Decrease in net profit attributable to:
Owners of the Parent Company	$	(460)
Non-controlling interests		(873)
	$	(1,333)
Decrease in total comprehensive income attributable to:
Owners of the Parent Company	$	(460)
Non-controlling interests		(873)
	$	(1,333)

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Lite-On Technology Corporation 2015 Annual Report‧

The impact on the prior reporting period is set out below:

Impact on Assets, Liabilities and Equity December 31, 2014 Deferred tax assets Accrued pension liabilities Net defined benefit liabilities Retained earnings Non-controlling interests January 1, 2014 Deferred tax assets Accrued pension liabilities Net defined benefit liabilities Retained earnings Non-controlling interests Impact on Total Comprehensive Income Operating cost Operating expense Income tax expense Total effect on net profit for the year Total effect on total comprehensive income for the year Impact on net profit attributable to: Owners of the Parent Company Non-controlling interests Impact on total comprehensive income attributable to: Owners of the Parent Company Non-controlling interests	As Originally Stated $ 3,107,672 $ 108,874 $ - $ 20,955,605 $ 4,191,264 $ 2,207,204 $ 235,671 $ - $ 21,463,386 $ 6,200,851 As Originally Stated $ 202,383,002 21,119,771 2,071,417 5,679,573 7,632,491 $ 6,461,659 (782,086) $ 5,679,573 $ 8,307,615 (675,124) $ 7,632,491	Adjustments Arising from Initial Application $ (2,206) $ (108,874) $ 96,021 $ 3,481 $ 7,166 $ (2,734) $ (235,671) $ 219,709 $ 4,332 $ 8,896 Adjustments Arising from Initial Application $ 858 2,260 (537) (2,581) (2,581) $ (851) (1,730) $ (2,581) $ (851) (1,730) $ (2,581)	Restated $ 3,105,466 $ - $ 96,021 $ 20,959,086 $ 4,198,430 $ 2,204,470 $ - $ 219,709 $ 21,467,718 $ 6,209,747 Restated $ 202,383,860 21,122,031 2,080,880 5,676,992 7,629,910 $ 6,460,808 (783,816) $ 5,676,992 $ 8,306,764 (676,854) $ 7,629,910 (Continued)

			Adjustments	Adjustments
			Arising from
Impact on	As Originally		Initial
Total Comprehensive Income	Stated		Application		Restated
Impact on earnings per share:
Basic	$	2.78	$	-	$	2.78
Diluted	$	2.75	$	-	$	2.75
					(Concluded)

6) Amendments to IFRS 7 “Disclosure - Offsetting Financial Assets and Financial Liabilities”

The amendments to IFRS 7 require disclosure of information about rights of offset and related arrangements (such as collateral posting requirements) for financial instruments under enforceable master netting arrangements and similar arrangements. Refer to Note 33 for related disclosure.

b. New IFRSs in issue but not yet endorsed by the FSC

On March 10, 2016, the FSC announced the scope of the 2016 version of IFRSs to be endorsed and will take effect from January 1, 2017. The scope includes all IFRSs that were issued by the IASB before January 1, 2016 and have effective dates on or before January 1, 2017, which means the scope excludes those that are not yet effective as of January 1, 2017 such as IFRS 9 “Financial Instruments” and IFRS 15 “Revenue from Contracts with Customers” and those with undetermined effective date. In addition, the FSC announced that the Company should apply IFRS 15 starting January 1, 2018. As of the date the financial statements were authorized for issue, the FSC has not announced the effective dates of other new, amended and revised standards and interpretations.

The Group has not applied the following New IFRSs issued by the IASB but not yet endorsed by the FSC.

New IFRSs Annual Improvements to IFRSs 2010-2012 Cycle Annual Improvements to IFRSs 2011-2013 Cycle Annual Improvements to IFRSs 2012-2014 Cycle IFRS 9 “Financial Instruments” Amendments to IFRS 9 and IFRS 7 “Mandatory Effective Date of IFRS 9 and Transition Disclosures” Amendments to IFRS 10 and IAS 28 “Sales or Contribution of Assets between an Investor and its Associate or Joint Venture” Amendments to IFRS 10, IFRS 12 and IAS 28 “Investment Entities: Applying the Consolidation Exception” Amendment to IFRS 11 “Accounting for Acquisitions of Interests in Joint Operations” IFRS 14 “Regulatory Deferral Accounts” IFRS 15 “Revenue from Contracts with Customers” IFRS 16 “Leases” Amendment to IAS 1 “Disclosure Initiative” Amendment to IAS 7 “Disclosure Initiative” Amendments to IAS 12 “Recognition of Deferred Tax Assets for Unrealized Losses”	Effective Date Announced by IASB (Note 1)
	July 1, 2014 (Note 2) July 1, 2014 January 1, 2016 (Note 4) January 1, 2018 January 1, 2018 January 1, 2016 (Note 3) January 1, 2016 January 1, 2016 January 1, 2016 January 1, 2018 January 1, 2019 January 1, 2016 January 1, 2017 January 1, 2017 (Continued)

New IFRSs
Annual Improvements to IFRSs 2010-2012 Cycle

Annual Improvements to IFRSs 2011-2013 Cycle

Annual Improvements to IFRSs 2012-2014 Cycle

IFRS 9 “Financial Instruments”

Amendments to IFRS 9 and IFRS 7 “Mandatory Effective Date of
IFRS 9 and Transition Disclosures”

Amendments to IFRS 10 and IAS 28 “Sales or Contribution of Assets
between an Investor and its Associate or Joint Venture”

Amendments to IFRS 10, IFRS 12 and IAS 28 “Investment Entities:
Applying the Consolidation Exception”

Amendment to IFRS 11 “Accounting for Acquisitions of Interests in
Joint Operations”

IFRS 14 “Regulatory Deferral Accounts”

IFRS 15 “Revenue from Contracts with Customers”

IFRS 16 “Leases”

Amendment to IAS 1 “Disclosure Initiative”

Amendment to IAS 7 “Disclosure Initiative”

Amendments to IAS 12 “Recognition of Deferred Tax Assets for
Unrealized Losses”

Effective Date
Announced by IASB (Note 1)

July 1, 2014 (Note 2)
July 1, 2014
January 1, 2016 (Note 4)
January 1, 2018
January 1, 2018
January 1, 2016 (Note 3)
January 1, 2016
January 1, 2016
January 1, 2016
January 1, 2018
January 1, 2019
January 1, 2016
January 1, 2017
January 1, 2017
(Continued)

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Lite-On Technology Corporation 2015 Annual Report‧

Effective Date New IFRSs Announced by IASB (Note 1) Amendments to IAS 16 and IAS 38 “Clarification of Acceptable January 1, 2016 Methods of Depreciation and Amortization” Amendments to IAS 16 and IAS 41 “Agriculture: Bearer Plants” January 1, 2016 Amendment to IAS 19 “Defined Benefit Plans: Employee July 1, 2014 Contributions” Amendment to IAS 36 “Impairment of Assets: Recoverable Amount January 1, 2014 Disclosures for Non-financial Assets” Amendment to IAS 39 “Novation of Derivatives and Continuation of January 1, 2014 Hedge Accounting” IFRIC 21 “Levies” January 1, 2014 (Concluded)

Note 1: Unless stated otherwise, the above New IFRSs are effective for annual periods beginning on or after their respective effective dates.
Note 2: The amendment to IFRS 2 applies to share-based payment transactions with grant date on or after July 1, 2014; the amendment to IFRS 3 applies to business combinations with acquisition date on or after July 1, 2014; the amendment to IFRS 13 is effective immediately; the remaining amendments are effective for annual periods beginning on or after July 1, 2014.
Note 3: Prospectively applicable to transactions occurring in annual periods beginning on or after January 1, 2016.
Note 4: The amendment to IFRS 5 is applied prospectively to changes in a method of disposal that occur in annual periods beginning on or after January 1, 2016; the remaining amendments are effective for annual periods beginning on or after January 1, 2016.

The initial application of the above New IFRSs, whenever applied, would not have any material impact on the Group’s accounting policies, except for the following:

1) IFRS 9 “Financial Instruments”

Recognition and measurement of financial assets

With regards to financial assets, all recognized financial assets that are within the scope of IAS 39 “Financial Instruments: Recognition and Measurement” are subsequently measured at amortized cost or fair value. Under IFRS 9, the requirement for the classification of financial assets is stated below.

For the Group’s debt instruments that have contractual cash flows that are solely payments of principal and interest on the principal amount outstanding, their classification and measurement are as follows:

a) For debt instruments, if they are held within a business model whose objective is to collect the contractual cash flows, the financial assets are measured at amortized cost and are assessed for impairment continuously with impairment loss recognized in profit or loss, if any. Interest revenue is recognized in profit or loss by using the effective interest method;
b) For debt instruments, if they are held within a business model whose objective is achieved by both the collecting of contractual cash flows and the selling of financial assets, the financial assets are measured at fair value through other comprehensive income (FVTOCI) and are assessed for impairment. Interest revenue is recognized in profit or loss by using the effective interest method, and other gain or loss shall be recognized in other comprehensive income, except for impairment gains or losses and foreign exchange gains and losses. When the debt instruments are derecognized or reclassified, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss.

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

The impairment of financial assets

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

For purchased or originated credit-impaired financial assets, the Group takes into account the expected credit losses on initial recognition in calculating the credit-adjusted effective interest rate. Subsequently, any changes in expected losses are recognized as a loss allowance with a corresponding gain or loss recognized in profit or loss.

Hedge accounting

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

2) Amendment to IAS 36 “Recoverable Amount Disclosures for Non-financial Assets”

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

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Lite-On Technology Corporation 2015 Annual Report‧

3) IFRS 15 “Revenue from Contracts with Customers”

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

When applying IFRS 15, an entity shall recognize revenue by applying the following steps:

Identify the contract with the customer;

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRSs as endorsed by the FSC.

b. Basis of preparation
Identify the performance obligations in the contract;
Determine the transaction price;
Allocate the transaction price to the performance obligations in the contracts; and

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

Recognize revenue when the entity satisfies a performance obligation.

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

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

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;

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

The amendments stipulate that, when an entity sells or contributes to an associate assets that constitute a business as defined in IFRS 3 “Business Combination”, or when an entity loses control of a subsidiary that contains a business but retains significant influence or joint control, the gain or loss resulting from the transaction is recognized in full.

Also, when an entity loses control of a subsidiary that does not contain a business as defined in IFRS 3 but retains significant influence or joint control in an associate or a joint venture, the gain or loss resulting from the asset sale or contribution is recognized only to the extent of the unrelated investors’ interest in the associate or joint venture, and the entity’s share of the gain or loss is eliminated.

5) IFRS 16 “Leases”

IFRS 16 sets out the accounting standards for leases that will supersede IAS 17 and a number of related interpretations.

Under IFRS 16, if the Group is a lessee, it shall recognize right-of-use assets and lease liabilities for all leases on the consolidated balance sheets except for low-value and short-term leases. The Group may elect to apply the accounting method similar to the accounting for operating lease under IAS 17 to the low-value and short-term leases. On the consolidated statements of comprehensive income, the Group should present the depreciation expense charged on the right-of-use asset separately from interest expense accrued on the lease liability; interest is computed by using effective interest method. On the consolidated statements of cash flows, cash payments for the principal portion of the lease liability are classified within financing activities; cash payments for interest portion are classified within operating activities.

When IFRS 16 becomes effective, the Group may elect to apply this Standard either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of the initial application of this Standard recognized at the date of initial application.

Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact that the application of other standards and interpretations will have on the Group’s financial position and financial performance, and will disclose the relevant impact when the assessment is completed.

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

c. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company. Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of profit or loss and other comprehensive income from the effective date of acquisition up to the effective date of disposal, as appropriate. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Company. All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Company.

When the Group loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and any investment retained in the former subsidiary at its fair value at the date when control is lost and (ii) the assets (including any goodwill) and liabilities and any non-controlling interests of the former subsidiary at their carrying amounts at the date when control is lost. The Group accounts for all amounts recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required if the Group had directly disposed of the related assets or liabilities.

The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition.

See Note 14 and Table 7 for the detailed information of subsidiaries (including the percentage of ownership and main business).

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d. Classification of current and non-current assets and liabilities

Current assets include:

1) Assets held primarily for the purpose of trading;
2) Assets expected to be realized within twelve months after the reporting period; and
3) Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

Current liabilities include:

1) Liabilities held primarily for the purpose of trading;
2) Liabilities due to be settled within twelve months after the reporting period, even if an agreement to refinance, or to reschedule payments, on a long-term basis is completed after the reporting period and before the consolidated financial statements are authorized for issue; and
3) Liabilities for which the Group does not have an unconditional right to defer settlement 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.

Assets and liabilities that are not classified as current are classified as non-current.

e. Business combinations

Acquisitions of businesses are accounted for using the acquisition method. Acquisition-related costs are generally recognized in profit or loss as incurred.

For the purposes of presenting consolidated financial statements, the assets and liabilities of the Group’s foreign operations are translated into New Taiwan dollars using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising are recognized in other comprehensive income.

On the disposal of a disposal of the Company’s entire interest in a foreign operation, or a disposal involving loss of control over a subsidiary that includes a foreign operation, or a disposal of an interest in a joint arrangement or an associate that includes a foreign operation of which the retained interest becomes a financial asset, all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Company are reclassified to profit or loss.

In relation to a partial disposal of a subsidiary that does not result in the Company losing control over the subsidiary, the proportionate share of accumulated exchange differences is re-attributed to non-controlling interests of the subsidiary and is not recognized in profit or loss. For all other partial disposals, the proportionate share of the accumulated exchange differences recognized in other comprehensive income is reclassified to profit or loss.

Goodwill and fair value adjustments on identifiable assets and liabilities acquired arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the rate of exchange prevailing at the end of each reporting period. Exchange differences arising are recognized in other comprehensive income.

g. Inventories

Inventories consist of raw materials, work-in-process, finished goods, merchandise, and inventory in transit. Inventories are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. Net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at weighted-average cost on the balance sheet date.

h. Investment accounted for using equity method

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed.

f. Foreign currencies

In preparing the financial statements of each individual group entity, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period. Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising on the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which case, the exchange differences are also recognized directly in other comprehensive income. Non-monetary items that are measured at historical cost in a foreign currency are not retranslated.

Investment in associates is accounted for using equity method.

An associate is an entity over which the Group has significant influence and that is not a subsidiary. Significant influence is the power to participate in financial and operating policy decisions of an investee, but is not control or joint control over the policies.

Under the equity method, investments in an associate are initially recognized at cost and adjusted thereafter to recognize the Group’s share of the profit or loss and other comprehensive income of the associate. The Group also recognizes the changes in the Group’s share of equity of associates attributable to the Group.

Any excess of the cost of acquisition over the Group’s share of the net fair value of the identifiable assets and liabilities of an associate at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Group’s share of the net fair value of the identifiable assets and liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.

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Lite-On Technology Corporation 2015 Annual Report‧

When the Group subscribes for additional new shares of the associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Group’s proportionate interest in the associate. The Group records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus - changes in the Group’s share of equity of associates. If the Group’s ownership interest is reduced due to the additional subscription of the new shares of associate, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate is reclassified to profit or loss on the same basis as would be required if the investee had directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for by the equity method is insufficient, the shortage is debited to retained earnings.

The entire carrying amount of the investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is deducted from investment and the carrying amount is net of impairment loss. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

When a group entity transacts with its associate, profits and losses resulting from the transactions with the associate are recognized in the Group’s consolidated financial statements only to the extent of interests in the associate that are not related to the Group.

For the purposes of impairment testing, goodwill is allocated to each of the Group’s cash-generating units or groups of cash-generating units (referred to as cash-generating units) that is expected to benefit from the synergies of the combination.

A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired, by comparing its carrying amount, including the attributed goodwill, with its recoverable amount. However, if the goodwill allocated to a cash-generating unit was acquired in a business combination during the current annual period, that unit shall be tested for impairment before the end of the current annual period. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss is recognized directly in profit or loss. An impairment loss recognized for goodwill is not reversed in subsequent periods.

For an investment accounted for using equity method, the cash-generating unit of the whole entity is tested for impairment. If impairment is identified but the recoverable amount of the asset later increases, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized.

l. Intangible assets

i. Property, plant and equipment

1) Intangible assets acquired separately

Property, plant and equipment are stated at cost, less recognized accumulated depreciation and accumulated impairment loss.

Property, plant and equipment in the course of construction are carried at cost, less any recognized impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Such assets are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for intended use.

Depreciation on property, plant and equipment (including assets held under finance leases) is recognized using the straight-line method. Each significant part is depreciated separately. If the lease term is shorter than the useful lives, assets are depreciated over the lease term. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful life, residual value, and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are measured at cost less accumulated impairment loss.

2) Intangible assets acquired in a business combination

Intangible assets acquired in a business combination and recognized separately from goodwill are initially recognized at their fair value at the acquisition date (which is regarded as their cost). Subsequent to initial recognition, they are measured on the same basis as intangible assets that are acquired separately.

j. Investment properties

3) Derecognition of intangible assets

Investment properties are properties held to earn rentals or for capital appreciation. Investment properties also include land held for a currently undetermined future use.

Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss. Depreciation is recognized using the straight-line method.

On derecognition of an investment property, the difference between the net disposal proceeds and the carrying amount of the asset is included in profit or loss.

k. Goodwill

Goodwill arising from the acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment loss.

On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset are recognized in profit or loss.

m. Impairment of tangible and intangible assets other than goodwill

At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible assets, excluding goodwill, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the individual cash-generating units on a reasonable and consistent basis of allocation.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.

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Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

When an impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.

n. Non-current assets held for sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the non-current asset is available for immediate sale in its present condition. To meet the criteria for the sale being highly probable, the appropriate level of management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification.

When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain a non-controlling interest in its former subsidiary after the sale.

Non-current assets classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Recognition of depreciation of those assets would cease.

ii. Available-for-sale financial assets

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

Available-for-sale financial assets are measured at fair value. Changes in the carrying amount of available-for-sale monetary financial assets relating to changes in foreign currency exchange rates, interest income calculated using the effective interest method and dividends on available-for-sale equity investments are recognized in profit or loss. Other changes in the carrying amount of available-for-sale financial assets are recognized in other comprehensive income and will be reclassified to profit or loss when the investment is disposed of or is determined to be impaired.

Dividends on available-for-sale equity instruments are recognized in profit or loss when the Group’s right to receive the dividends is established.

iii. Loans and receivables

Loans and receivables including cash and cash equivalent, note receivable, debt investments with no active market, trade receivables, and other receivables are measured at amortized cost using the effective interest method, less any impairment, except for short-term receivables when the effect of discounting is immaterial.

Cash equivalent includes time deposits and investments that meet short-term cash commitments, within highly liquid, readily convertible to a known amount of cash and be subject to an insignificant risk of changes in value.

o. Financial instruments

b) Impairment of financial assets

Financial assets and financial liabilities are recognized when a group entity becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

1) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

Financial assets, other than those at fair value through profit or loss, are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.

For financial assets carried at amortized cost, such as trade receivables, assets that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective basis. The Company assesses the collectability of receivables by performing the account aging analysis and examining current trends in the credit quality of its customers.

For financial assets carried at amortized cost, the amount of the impairment loss recognized is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

a) Measurement category

Financial assets are classified into the following categories: Financial assets at fair value through profit or loss, available-for-sale financial assets, and loans and receivables.

i. Financial assets at fair value through profit or loss

Financial assets are classified as at fair value through profit or loss when the financial asset doesn’t meet the criteria of hedge accounting. Financial assets at fair value through profit or loss are stated at fair value, with any gains or losses arising on remeasurement recognized in profit or loss.

For financial assets measured at amortized cost, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized.

For available-for-sale equity investments, a significant or prolonged decline in the fair value of the security below its cost is considered to be objective evidence of impairment.

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3) Derivative financial instruments

When an available-for-sale financial asset is considered to be impaired, cumulative gains or losses previously recognized in other comprehensive income are reclassified to profit or loss in the period. In respect of available-for-sale equity securities, impairment loss previously recognized in profit or loss are not reversed through profit or loss. Any increase in fair value subsequent to an impairment loss is recognized in other comprehensive income.

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables where the carrying amount is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognized in profit or loss except for uncollectible trade receivables that are written off against the allowance account.

The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange rate risks, including foreign exchange forward contracts, interest rate swaps and option contracts.

Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. When the fair value of derivative financial instruments is positive, the derivative is recognized as a financial asset; when the fair value of derivative financial instruments is negative, the derivative is recognized as a financial liability.

p. Hedge accounting

c) Derecognition of financial assets

The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

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

2) Financial liabilities and equity instruments

Debt and equity instruments issued by an entity of the Group are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

a) Financial liabilities subsequent measurement

Financial liabilities are measured at amortized cost using the effective interest method.

b) Derecognition of financial liabilities

The difference between the carrying amount of the financial liability derecognized and the consideration paid is recognized in profit or loss.

c) Equity instruments

Equity instruments issued by a group entity are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments issued by an entity of the Group are recognized at the proceeds received, net of direct issue costs.

Repurchase of the Company’s own equity instruments is recognized in and deducted directly from equity. No gain or loss is recognized in profit or loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments.

The Group designates derivative hedging instruments to conduct cash flow hedges. The effective portion of changes in the fair value of derivatives is recognized in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss. The associated gains or losses that were recognized in other comprehensive income are reclassified from equity to profit or loss as a reclassification adjustment in the line item relating to the hedged item in the same period when the hedged item affects profit or loss.

Hedge accounting is discontinued prospectively when the Group revokes the designated hedging relationship, or when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer meets the criteria for hedge accounting. The cumulative gain or loss on the hedging instrument that has been previously recognized in other comprehensive income from the period when the hedge was effective remains separately in equity until the forecast transaction occurs. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in profit or loss.

q. Provisions

Provisions are measured at the best estimate of the discounted cash flows of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

Provisions for the expected cost of warranty obligations are recognized at the date of sale of the relevant products, at the best estimate of the expenditure required to settle the Group’s obligation by the management of the Group.

r. Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances. Allowance for sales returns and liability for returns are recognized at the time of sale based on the seller’s reliable estimate of future returns and based on past experience and other relevant factors.

1) Sale of goods

Revenue from the sale of goods is recognized when all the following conditions are satisfied:

a) The Group has transferred to the buyer the significant risks and rewards of ownership of the goods;

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2) The Group as lessee
b) The Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

c) The amount of revenue can be measured reliably;

d) It is probable that the economic benefits associated with the transaction will flow to the Group; and
e) The costs incurred or to be incurred in respect of the transaction can be measured reliably.

The Group does not recognize sales revenue on materials delivered to subcontractors because this delivery does not involve a transfer of risks and rewards of materials ownership.

Revenue from selling of properties in the course of ordinary activities is recognized when the construction is completed and the properties are transferred to buyers. Until such revenue is recognized, deposits received from sales of properties and installment payments are carried in the consolidated balance sheets under current liabilities.

2) Rental revenue

The operation of leasing business was in accordance with IAS 17- Leases, that is, the possible situation related to leasing (ex. the condition of leasing, and the burden of future cost) would treat as operating lease.

3) Electricity generation revenue

Revenue is recognized when the power is transmitted to the substation of a power company. Electricity generation revenue is based on the fair value of subsidiary’s settled value with power company. However, when receivables are expected to be realized within one year, the difference between fair value and maturity value of receivables is insignificant and the trading of power is very frequent, the fair value of settled value will not have to be discounted to the present value.

4) Dividend and interest income

Dividend income from investments is recognized when the shareholder’s right to receive payment has been established provided that it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably.

Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable.

s. Leasing

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

1) The Group as lessor

Rental income from operating leases is recognized on a straight-line basis over the term of the relevant lease.

Operating lease payments are recognized as an expense on a straight-line basis over the lease term.

t. Employee benefits
1) Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.

2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as an expense when employees have rendered service entitling them to the contributions.

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

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

3) Termination benefits

A liability for a termination benefit is recognized at the earlier of when the Group can no longer withdraw the offer of the termination benefit and when the Group recognizes any related restructuring costs.

u. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

1) Current tax

According to the Income Tax Law, an additional tax at 10% of unappropriated earnings is provided for as income tax in the year the shareholders approve to retain the earnings.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences, research and development expenditures, and personnel training expenditures to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

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b. Estimated impairment of trade receivables

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

When there is objective evidence of impairment loss, the Group takes into consideration the estimation of future cash flows. The amount of the impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. Where the actual future cash flows are less than expected, a material impairment loss may arise.

c. Income taxes

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which those deferred tax assets can be utilized. Assessment of the realization of the deferred tax assets requires the Group’s subjective judgment and estimation, including the future revenue growth and profitability, tax holidays, the amount of tax credits that can be utilized and feasible tax planning strategies. Any changes in the global economic environment, industry trends and relevant laws and regulations could result in significant adjustments to the deferred tax assets.

d. Fair value measurements and valuation processes

If some of the Group's assets and liabilities measured at fair value have no quoted prices in active markets, the Group’s management determines whether to engage third party qualified valuers to determine the appropriate valuation techniques for fair value measurements.

3) Current and deferred tax for the year

Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

Where Level 1 inputs are not available, the Group or engaged valuers would determine appropriate inputs by referring to prices of same equity instruments not quoted in active markets, market prices or rates and specific features of derivatives. If the actual changes of inputs in the future differ from expectation, fair value might vary accordingly. The Group updates inputs every quarter to confirm the appropriateness of fair value measurement.

Information about the valuation techniques and inputs used in determining the fair value of various assets and liabilities is disclosed in Note 33.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group's accounting policies (Note 4), management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

a. Impairment of goodwill

Determining whether goodwill is impaired requires an estimation of the value in use of the cash-generating units to which goodwill has been allocated. The value in use calculation requires management to estimate the future cash flows expected to arise from the cash-generating unit and a suitable discount rate in order to calculate present value. Where the actual future cash flows are less than expected, a material impairment loss may arise.

e. Impairment of property, plant and equipment

The impairment of equipment in relation to the production of handsets was based on the recoverable amount of those assets, which is the higher of fair value less costs to sell or value-in-use of those assets. Any changes in the market price or future cash flows will affect the recoverable amount of those assets and may lead to recognition of additional or reversal of impairment losses.

f. Write-down of inventory

Net realizable value of inventory is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The estimation of net realizable value was based on current market conditions and the historical experience of selling products of a similar nature. Changes in market conditions may have a material impact on the estimation of net realizable value.

g. Impairment of investment in associates

The Group immediately recognizes impairment loss on its net investment in the associate when there is any indication that the investment may be impaired and the carrying amount may not be recoverable. The Group also takes into consideration the market conditions and industry development to evaluate the appropriateness of assumptions.

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h. Recognition and measurement of defined benefit plans

Net defined benefit liabilities (assets) and the resulting defined benefit costs under defined benefit pension plans are calculated using the projected unit credit method. Actuarial assumptions comprise the discount rate, rate of employee turnover, and future salary increase, etc. Changes in economic circumstances and market conditions will affect these assumptions and may have a material impact on the amount of the expense and the liability.

6. CASH AND CASH EQUIVALENTS

December	December	31
	$	2014 124,912 1,923,505 35,292,046 29,142,893 66,483,356 31
	$
2015 $ 45,845 7,366 $ 53,211 $ 53,211 - $ 53,211 $ 55,945 - $ 55,945 $ 55,945 - $ 55,945		2014 $ 889 12,222 $ 13,111 $ 13,111 - $ 13,111 $ 38,206 202 $ 38,408 $ 38,408 - $ 38,408

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

a. At the end of the reporting period, outstanding forward exchange contracts and cross-currency swap contracts not under hedge accounting were as follows:

pg p, contracts not under hedge accounting were	g as follows:	g	y p
		Maturity	Notional Amount
	Currency	Date	(In Thousands)
December 31, 2015
The Parent Company
Currency swap contracts	USD/NTD	2016.11.09	USD100,000/NTD3,212,900
Lite-On Overseas Trading Co., Ltd.
Forward exchange contracts	CNY/USD	2016.02.23	CNY110,012/USD17,000
Lite-On Singapore Pte. Ltd.
Forward exchange contracts	USD/EUR	2016.01.06	USD10,606/EUR10,000
Forward exchange contracts	USD/BRL	2016.01.25	USD2,000/BRL8,052
Forward exchange contracts	NTD/USD	2016.02.04	NTD825,000/USD25,000
Lite-On Electronics (Thailand) Co., Ltd.
Forward exchange contracts	THB/USD	2016.04.08	THB82,945/USD2,300
Philip & Lite-On Digital Solutions Corp.
Forward exchange contracts	USD/EUR	2016.01.08	USD6,571/EUR6,000
Lite-On Mobile Pte. Ltd.
Forward exchange contracts	CNY/USD	2016.01.20	CNY256,100/USD40,000
Forward exchange contracts	EUR/USD	2016.01.21	EUR5,500/USD5,981
Silitech Technology Corp.
Forward exchange contracts	USD/MYR	2016.01.08-	USD1,180/MYR5,099
		2016.03.08
Forward exchange contracts	EUR/MYR	2016.02.25	EUR50/MYR240
December 31, 2014
Lite-On Overseas Trading Co., Ltd.
Forward exchange contracts	CNY/USD	2015.01.12	CNY277,020/USD45,000
Currency swap contracts	CNY/USD	2015.01.22	CNY93,435/USD15,000
Lite-On Singapore Pte. Ltd.
Forward exchange contracts	CNY/USD	2015.01.12	CNY402,870/USD65,000
Forward exchange contracts	USD/EUR	2015.01.30	USD8,047/EUR6,600
Lite-On Electronics (Thailand) Co., Ltd.
Forward exchange contracts	THB/USD	2015.04.07	THB66,086/USD2,000
DongGuan G-Pro Computer Co., Ltd.
Currency swap contracts	CNY/USD	2015.01.05	CNY38,058/USD6,104
LET (HK) Ltd.
Forward exchange contracts	USD/EUR	2015.01.29	USD10,972/EUR9,000
Guangzhou Lite-On Mobile Electronic
Components Co., Ltd.
Forward exchange contracts	CNY/USD	2015.01.05	CNY43,173/USD7,000
Forward exchange contracts	CNY/EUR	2015.01.05	CNY2,307/EUR300
Zhuhai Lite-On Mobile
Telecommunication Co., Ltd.
Forward exchange contracts	CNY/USD	2015.01.05	CNY18,503/USD3,000
			(Continued)

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9. DERIVATIVE FINANCIAL INSTRUMENTS FOR HEDGING

		Maturity	Notional Amount
	Currency	Date	(In Thousands)
Lite-On Mobile Pte. Ltd.
Forward exchange contracts	CNY/USD	2015.01.12	CNY204,072/USD33,000
Forward exchange contracts	USD/EUR	2015.01.12	USD1,230/EUR1,000
Forward exchange contracts	USD/BRL	2015.01.15	USD2,500/BRL6,626
Forward exchange contracts	INR/USD	2015.01.15	INR93,759/USD1,500
Forward exchange contracts	JPY/USD	2015.01.26	JPY144,114/USD1,200
Silitech Technology Corp.
Forward exchange contracts	USD/MYR	2015.01.06-	USD1,670/MYR5,737
		2015.03.06
			(Concluded)

The Group entered into derivative contracts in 2015 and 2014 to manage exposures due to fluctuations of foreign exchange rates. The derivative contracts entered into by the subsidiaries did not meet the criteria for hedge accounting. Thus, the derivative contracts classified as financial assets or financial liabilities at fair value through profit or loss. The financial risk management objectives of the subsidiaries were to minimize risks due to changes in fair value or cash flows.

8. AVAILABLE-FOR-SALE FINANCIAL ASSETS

AVAILABLE-FOR-SALE FINANCIAL ASSETS
Non-current Domestic investments Quoted shares Emerging market shares Unquoted shares Foreign investments Mutual funds Unquoted shares Quoted shares		December 31
		2015 $ 316,426 178,716 83,923 579,065 53,178 26,539 11,546 91,263 $ 670,328	2014 $ 626,191 178,716 144,617 949,524 143,434 221,811 11,486 376,731 $ 1,326,255

Refer to Note 33 for information relating to the fair values of on available-for-sale financial assets determined.

There was objective evidence that the fair values of some financial assets were below their carrying costs and will permanently decline. As a result, the Group recognized impairment losses of $124,667 thousand and $212,956 thousand in the consolidated statements of comprehensive income for the years ended December 31, 2015 and 2014, respectively.

DERIVATIVE FINANCIAL INSTRUMENTS FOR HEDGING
Derivative financial liabilities under hedge accounting- current Cash flow hedges - interest rate swaps		December	31
		2015 $ -	2014 $ 11,989

The Parent Company’s liabilities with floating interest rate might be affected by changes in the market rate. Thus, future cash flows on those liabilities might fluctuate, exposing the Parent Company to cash flow risk. To hedge against this risk, the Parent Company entered into an interest rate swap contract with a bank to change the floating rate of its liabilities to fixed rate. The cash flow hedge transactions are deemed sufficient.

The outstanding interest rate swap contracts of the Parent Company at the end of the reporting period were as follows:

as follows:
		Range of	Range of
		Interest Rates	Interest Rates
Notional Amount (In Thousands)	Maturity Date	Paid	Received
December 31, 2015:None.
December 31, 2014
NT$2,400,000	2015.09.23	1.895%	0.888%

10. DEBT INVESTMENTS WITH NO ACTIVE MARKET

DEBT INVESTMENTS WITH NO ACTIVE MARKET
Financial product Pledged deposits Current Noncurrent		December 31
		2015 $ 424,399 270,870 695,269 $ 694,435 834 $ 695,269	2014 $ - 78,688 78,688 $ 78,170 518 $ 78,688

Financial product mainly refers to the subsidiary - Silitech Technology (SuZhou) Co., Ltd. to guarantee income-bearing bank deposit products to amortized cost measurement, and it shall not be paid or redeemed with the contract period.

Refer to Note 35 for information on bond investments with no active market pledged as security.

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11. TRADE RECEIVABLES, NET

TRADE RECEIVABLES, NET
Trade receivables Allowance for impairment loss Unrealized interest revenues		December 31
		2015 $ 50,390,680 (239,849) (70,962) $ 50,079,869	2014 $ 51,509,351 (298,871) (76,468) $ 51,134,012

The average credit period on sales of goods was 90 days. In determining the recoverability of a trade receivable, the Group considered any change in the credit quality of the trade receivable since the date credit was initially granted to the end of the reporting period. The Group recognized an allowance for impairment loss of 100% against all receivables over 240 days because historical experience had been that receivables that are past due beyond 240 days were not recoverable. Allowance for impairment loss were recognized against trade receivables between 1 days and 240 days based on estimated irrecoverable amounts determined by reference to past default experience of the counterparties and an analysis of their current financial position.

The aging of receivables was as follows:

Not overdue Overdue 1-60 days 61-210 days 211-240 days Over 241 days		December 31	December 31
		2015 $ 49,137,082 999,794 114,839 4,119 134,846 1,253,598 $ 50,390,680	2014 $ 50,205,142 1,069,101 109,378 4,743 120,987 1,304,209 $ 51,509,351

The above aging schedule was based on the past due date.

As of December 31, 2015 and 2014, the Group did not have the age of the trade receivables that were past due but not impaired.

At the end of the reporting period, trade receivables from sales on installments by the Group were as follows:

, follows:
Trade receivables Unrealized interests revenue		December 31
		2015 $ 1,169,694 (70,962) $ 1,098,732	2014 $ 941,026 (76,468) $ 864,558

Movements in the allowance for impairment loss recognized on notes receivable and trade receivables were as follows:

p g as follows:
Balance at January 1 Allowance for impairment loss (reversal of impairment loss) Uncollectible amounts written off during the period as uncollectible Foreign exchange translation Reclassification Effect of business combination Balance at December 31	For the Year Ended		December 31
		2015 $ 298,871 (51,276) (4,742) (1,647) (1,357) - $ 239,849	2014 $ 215,850 108,831 (762) (2,988) - (22,060) $ 298,871

12. INVENTORIES, NET

INVENTORIES, NET
Finished goods Raw materials Work in progress Inventory in transit Merchandise		December 31
		2015 $ 18,725,787 7,069,710 2,546,266 218,599 266,074 $ 28,826,436	2014 $ 15,623,878 7,413,962 3,834,591 2,336,889 304,471 $ 29,513,791

The costs of inventories recognized as cost of goods sold for the years ended December 31, 2015 and 2014 were $188,787,517 thousand and $202,383,860 thousand, respectively.

The cost of inventories recognized as cost of goods sold for the years ended December 31, 2015 included inventory reversal amounting to $238,971 thousand of inventory write-downs due to inventory write-off. Previous write-downs were reversed as a result of the Group closed out part of the inventory that already recognized write-downs. The cost of inventories recognized as cost of goods sold for the years ended December 31, 2014 included inventory write-downs of $846,205 thousand, which resulted from write-downs of inventory to net realizable value.

13. NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE

Silitech Technology (SuZhou) Co., Ltd., a subsidiary of the Parent Company, entered into an agreement to sell idle equipment in the fourth quarter of 2014. This sale was mainly based on centralized management and production strategy considerations. The sales proceeds substantially exceeded the carrying amount of the related net assets; thus, no impairment losses were recognized on the assets reclassified to held for sale and the sale was completed in January 2015.

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14. SUBSIDIARIES

a. Subsidiaries included in consolidated financial statements

Investor
Investee
Main Business

The Parent Company
Silitech Technology Corp.
Manufacture and sale of modules and plastic
products
Lite-On Integrated Service Inc.
Information outsourcing and system integrate
Lite-On Capital Corp.
Investment activities
Lite-On Electronics H.K. Ltd.
Sale of LED optical products
Lite-On Electronics (Thailand) Co., Ltd.
Manufacture and sale of LED optical
products
Lite-On Japan Ltd.
Sale of LED optical products and power
supplies
Lite-On International Holding Co., Ltd.
Investment activities
LTC Group Ltd.
Investment activities
Lite-On Technology USA, Inc.
Investment activities
Lite-On Electronics (Europe) Ltd.
Manufacture and sale of power supplies
Lite-On Technology (Europe) B.V.
Market research and after-sales service
Lite-On Overseas Trading Co., Ltd.
Merchandising business
Lite-On Singapore Pte. Ltd.
Manufacture and supply computer peripheral
products
Lite-On Vietnam Co., Ltd.
Electronic contract manufacturing
Li Shin International Enterprise Corp.
Manufacture and sale of computer and
appliance components
Eagle Rock Investment Ltd.
Import and export business and investment
activities
LarView Technologies Corporation (Samoa)
Investment activities
Lite-On Mobile Pte. Ltd.
Manufacture and sale of mobile phone
modules and design for assembly line
High Yield Group Co., Ltd.
Holding company
Lite-On IT Singapore Pte. Ltd.
Sale of optical disc drives
Lite-On Information Technology B.V.
Market research and customer service
Philip & Lite-On Digital Solutions Corp.
Sale of optical disc drives
LET (HK) Ltd.
Sale of optical disc drives
Leotek Electronics Holding Limited
Holding company
Lite-On Automotive Electronics (Europe) BV Sale of automotive parts and other electronic
products
Lite-On Automotive North America Inc.
Sale of automotive parts and other electronic
products
Lite-On Automotive Service USA Inc.
Sale of automotive parts and other electronic
products
Lite-On Automotive International (Cayman)
Co., Ltd.
Investment activities
Lite-On Automotive Electronics Mexico, S.A.
DE C.V.
Production, manufacture, sale, import and
export of photovoltaic device, key
electronic components,
telecommunications equipment,
information technology equipment,
semiconductor applications, general
lighting, automotive electronics, renewable
energy products and systems and
maintenance of automotive industry
Lite-On Capital Corp.
Silitech Technology Corp.
Manufacture and sale of modules and plastic
products
Lite-On Green Technologies Inc.
Manufacture and wholesale of electronic
components and energy technology
services
Lite-On Green Energy (HK) Limited
Investment activities
Lite-On Technology (Europe) B.V.
Market research and after-sales services
Lite-On Green Energy (Singapore) Pte. Ltd.
Investment activities
Five Dimension Co., Ltd.
Development, manufacture and sale of cell
phone and camera lens modules
Five Dimension Co., Ltd.
FiiDi Optical Co., Ltd.
Wholesale of precision modules
Lite-On Green Technologies Inc.
Lite-On Green Technologies B.V.
Solar energy engineering
Lite-On Green Technologies (HK) Limited
Solar energy engineering
Lar View Technologies Corporation
(Samoa)
LarView Technologies Corp. (Shenzhen)
Camera lens modules
Lite-On Green Energy
Lite-On Green Energy B.V.
Investment activities
(Singapore) Pte. Ltd.
Lite-On Green Energy Kaiserslautern GmbH
Solar energy engineering
Lite-On Green Technologies (HK)
Limited
Lite-on Green Technologies (Nanjing)
Corporation
Solar energy engineering
Lite-On Green Energy B.V.
Romeo Tetti PV1 S.R.L
Solar energy engineering
Lite-On Green Energy S.R.L
Solar energy engineering
Lite-On Electronics H.K. Ltd.
Lite-On Electronics (Tianjinn) Co., Ltd.
ODM services
Lite-On Network Communication (Dongguan)
Limited
Manufacture and sale of IT products
Lite-On Power Technology (Chang Zhou) Co.,
Ltd.
Manufacture and sale of new-type electronic
components and peripheral materials
China Bridge (China) Co., Ltd.
Investment, sales agent
Lite-On Electronics (Dongguan) Co., Ltd.
Manufacture of electronic components
Silitek Elec. (Dongguan) Co., Ltd.
Manufacture and sale of keyboards
Lite-On Computer Tech (Dongguan) Co., Ltd. Manufacture and sale of display device
Dong Guan G-Tech Computers Co., Ltd.
Manufacture and sale of computer case
DongGuan G-Pro Computer Co., Ltd.
Manufacture and sale of system products
Lite-On Digital Electronics (Dongguan) Co.,
Ltd.
Manufacture and sale of computer peripheral
products
Lite-On Network Communication
(Dongguan) Limited
DongGuan G-Pro Computer Co., Ltd.
Manufacture and sale of system products

% of Ownership
December 31
2015
2014
Remark
33.87
32.08
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
49.49
49.49
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
54.00
54.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
-
100.00
1)
100.00
100.00
-
100.00
100.00
-
-
100.00
2)
100.00
100.00
-
49.00
49.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
-
100.00
3)
100.00
100.00
-
100.00
100.00
-
99.00
-
4)
0.64
0.61
-
100.00
100.00
-
100.00
100.00
-
46.00
46.00
-
100.00
100.00
-
69.94
69.94
-
-
40.00
5)
100.00
100.00
-
100.00
100.00
-
-
100.00
6)
100.00
100.00
-
-
100.00
7)
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
79.29
79.29
-
100.00
100.00
-
20.71
20.71
-
(Continued)

Investor
Investee
Main Business

China Bridge (China) Co., Ltd.
Lite-On Opto Technology (Changzhou) Co.,
Ltd.
Development, manufacture of new-type
electronic components and provide
technology consulting services,
maintenance equipment and after-sales
services
China Bridge Express (Wuxi) Co., Ltd.
Express and sale of power supplies, printers,
display devices and scanners
Lite-On Electronics Co., Ltd.
Lite-On Communications (Guangzhou) Co.,
Ltd.
Manufacture and sale of mobile terminal
equipment
Lite-On Electronics (Guangzhou) Co., Ltd.
Manufacture and sale of printers and scanners
Lite-On (Guangzhou) Infortech Co., Ltd.
Information outsourcing
Lite-On Elec and Wire (Guangzhou) Co., Ltd. Manufacture and sale of mobile terminal
equipment
Lite-On (Guangzhou) Precision Tooling Co.,
Ltd.
Manufacture and sale of modules
Lite-On Tech (Guangzhou) Co., Ltd.
Manufacture and sale of computer cases
Lite-On Electronics (Jiangsu) Co., Ltd.
Development, manufacture, sale and
installation of power supplies and
transformers and provision of technology
consulting services, maintenance
equipment and precision instruments
Lite-On Technology (Guangzhou) Investment
Co., Ltd.
Investment activities
Lite-On Power Technology (Dongguan) Co.,
Ltd.
Development, manufacture and sale of
electronic components, power supplies and
provision technology consulting services
Lite-On Technology (Guangzhou)
Investment Co.,
Lite-On (Guangzhou) Precision Tooling Co.,
Ltd.
Manufacture and sale of modules
Ltd.
Zhuhai Lite-On Mobile Technology Co., Ltd.
Mobile phone mold, assembly line design,
manufacture and sale activities.
Lite-On Electronics (Jiangsu) Co.,
Ltd.
Lite-On Technology (Changzhou) Co., Ltd.
Development, manufacture, sale and
installation of power supplies and
transformers and provision technology
consulting services, maintenance
equipment and after-sales services
Lite-On Opto Technology (Changzhou) Co.,
Ltd.
Development, manufacture and sale of
new-type electronic components and LED
and provision technology consulting
services, maintenance equipment and
after-sales services
Lite-On Medical Device (Changzhou) Ltd.
Manufacture and sale of medical equipment
Changzhou Leotek New Energy Trade Limited Wholesale, import and export and installation
of street lights, signal lights, scenery lights
and new-type electronic components
Yet Foundate Ltd.
Dongguan Lite-On Computer Co., Ltd.
Manufacture and sale of computer hosts and
components
Fordgood Electronic Ltd.
Lite-On Li Shin Technology (Ganzhou) Co.,
Ltd.
Manufacture and sale of electronic
components
Lite-On Technology USA, Inc.
Lite-On, Inc.
Sales data processing business of
optoelectronic products and power supplies
Lite-On Trading USA, Inc.
Sale of optical products
Lite-On Service USA, Inc.
After-sales service of optical products
Leotek Electronics USA LLC.
Sale of LED products
Power Innovations International, Inc.
Development, design and manufacture of
power control and energy management
Lite-On Sales & Distribution Inc.
Sale of optical disc drives
Lite-On Technology Service, Inc.
After-sales service of optical products
Lite-On International Holding Co.,
Ltd.
Ze Poly Pte. Ltd.
Manufacture and sale of thin-film solar cell
Lite-On China Holding Co., Ltd.
Manufacture and sale of computer cases
Lite-On Singapore Pte. Ltd.
Lite-On Technology (Ying Tan) Co., Ltd.
Manufacture and sale of electronic
components
Lite-On Technology (Xianging) Co., Ltd.
Manufacture and sale of electronic
components
Lite-On Technology (Shanghai) Ltd.
Manufacture and sale of energy saving
equipment
Lite-On Automotive Electronics Mexico, S.A.
DE C.V.
Production, manufacture, sale, import and
export of photovoltaic device, key
electronic components,
telecommunications equipment,
information technology equipment,
semiconductor applications, general
lighting, automotive electronics, renewable
energy products and systems and
maintenance of automotive industry
Lite-On Technology (Shanghai) Ltd.
Lite-On Intelligent Technology (Yencheng)
Corporation
Wholesale, import and export and installation
of street lights, signal lights, scenery lights
and new-type electronic components
LTC Group Ltd.
Titanic Capital Services Ltd.
Investment activities
LTC International Ltd.
Manufacture and sale of system products
Lite-On Technology (Europe) B.V.
Lite-On (Finland) Oy
Manufacture and sale of mobile phone
modules and design for assembly line
Lite-On (Finland) Oy
Lite-On Mobile Oyj (formerly: Perlos Oyj) Manufacture and sale of mobile phone
modules and design for assembly line
Lite-On China Holding Co., Ltd.
Lite-On Electronics Co., Ltd.
Investment activities
Yet Foundate Ltd.
Manufacture of plastic and computer
peripheral products
I-Solutions Limited
Original equipment manufacturer of
electronic products
Fordgood Electronic Ltd.
Import and export and real estate business
G&W Technology (BVI) Ltd.
Real estate management
G&W Technology (BVI) Ltd.
G&W Technology Limited
Leasing business

% of Ownership
December 31
2015
2014
Remark
12.59
12.59
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
67.03
67.03
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
32.97
32.97
-
100.00
100.00
-
100.00
100.00
-
87.41
87.41
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
95.25
95.25
-
100.00
100.00
-
100.00
-
8)
-
48.13
9)
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
1.00
-
4)
100.00
-
10)
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
50.00
50.00
-
100.00
100.00
-
(Continued)

77 ‧Lite-On Technology Corporation 2015 Annual Report

Lite-On Technology Corporation 2015 Annual Report‧

4) Established in January 2015.

Investor
Investee
Main Business

Eagle Rock Investment Ltd.
Huizhou Li Shin Electronic Co., Ltd.
Manufacture of computer peripheral products
Huizhou Fu Tai Electronic Co., Ltd.
Manufacture of computer peripheral products
Li Shin Technology (Huizhou) Ltd.
Manufacture and sale of new-type electronic
components and peripheral materials
High Yield Group Co., Ltd.
Lite-On IT International (HK) Ltd.
Sale of optical disc drives
Lite-On IT International (HK) Ltd.
Lite-On Opto Technology (Guangzhou) Co.,
Ltd.
Manufacture and sale of optical disc drives
Lite-On Auto Electric Technology
(Guangzhou) Ltd.
Manufacture and sale of optical disc drives
Lite-On IT Opto Tech (BH) Co., Ltd.
Manufacture and sale of optical disc drives
Lite-On Information Technology B.V. Lite-On Information Technology GmbH
Sale of optical disc drives
Philip & Lite-On Digital Solutions
Corp.
Philips & Lite-On Digital Solutions Germany
GmbH
Development and sale of modules of
automotive recorders
Philips & Lite-On Digital Solutions USA Inc.
Sale of optical disc drives
Philips & Lite-On Digital Solutions Korea Ltd. Sale of optical disc drives
Philips & Lite-On Digital Solutions
Netherlands B.V.
Sale and design of optical disc drives
Philip & Lite-On Digital Solutions (Shanghai)
Co., Ltd.
Sale of optical disc drives
Silitech Technology Corp.
Silitech (BVI) Holding Ltd.
Investment activities
Lite-On Japan Ltd.
Sale of LED optical products and power
supplies
Silitech (BVI) Holding Ltd.
Silitech (Bermuda) Holding Ltd.
Investment activities
Silitech (Bermuda) Holding Ltd.
Silitech Technology Corp. Ltd.
Manufacture of plastic and computer
peripheral products
Silitech Technology Corp. Sdn. Bhd.
Manufacture of computer peripheral products
Silitech (Hong Kong) Holding Ltd.
Investment activities
Silitech International (India) Private Limited
Development, manufacture and sale of
automotive parts
Silitech (Hong Kong) Holding Ltd.
Silitech Technology (SuZhou) Co., Ltd.
Manufacture and sale of automotive parts
Silitech Technology Corp. Ltd.
Xurong Electronic (Shenzhen) Co., Ltd.
Manufacture of automotive parts, touch
panels and plastic and rubber assembly
SuZhou Xulong Mold Producing Co., Ltd.
Development, manufacture and sale of
precision modules and new-type electronic
components (chip components, testing
elements, hybrid integrated circuits)
Lite-On Automotive International
(Cayman) Co., Ltd.
Lite-On Automotive Holdings
(Hong Kong) Co., Ltd.
Investment activities
Lite-On Automotive Holdings (Hong
Kong) Co., Ltd.
Lite-On Automotive (Wuxi) Co., Ltd.
Manufacture, sale and processing of
electronic products
Lite-On Automotive Electronics (Guangzhou)
Co., Ltd.
Manufacture, sale and processing of
electronic products
Lite-On Japan Ltd.
Lite-On Japan (S) Pte. Ltd.
Import and export business of electronic
components
L&K Industries Philippines, Inc.
Import and export business of electronic
components
Lite-On Japan (H.K.) Limited
Import and export business of electronic
components
Lite-On Japan (Korea) Co., Ltd.
Import and export business of electronic
components
Lite-On Japan (Thailand) Co., Ltd.
Import and export business of electronic
components
Lite-On Japan (H.K.) Limited
NL (Shanghai) Co., Ltd.
Import and export business of electronic
components
Lite-On Mobile Oyj (formerly:
Perlos Oyj)
Lite-On Mobile Sweden AB
Manufacture and sale of mobile phone
modules and design for assembly line
Lite-On Mobile Indústria e Comércio de
Plásticos Ltda.
Manufacture and sale of mobile phone
modules and design for assembly line
Lite-On Mobile Pte. Ltd.
Guangzhou Lite-On Mobile Electronic
Components Co., Ltd.
Manufacture and sale of mobile phone
modules and design for assembly line
Guangzhou Lite-On Mobile Engineering
Plastics Co., Ltd.
Manufacture and sale of mobile phone
modules and design for assembly line
Beijing Lite-On Mobile Electronic and
Telecommunication Components Co., Ltd.
Manufacture and sale of mobile phone
modules and design for assembly line
Shenzhen Lite-On Mobile Precision Molds
Co., Ltd.
Manufacture and sale of mobile phone
modules and design for assembly line
Lite-On Mobile Indústria e Comércio de
Plásticos Ltda.
Manufacture and sale of mobile phone
modules and design for assembly line
Perlos Precision Plastics Moulding Limited
Liability Company
Manufacture and sale of mobile phone
modules and design for assembly line
Lite-On Mobile India Private Limited.
Manufacture and sale of mobile phone
modules and design for assembly line
Lite-On Young Fast Pte. Ltd.
Investment activities
Guangzhou Lite-On Mobile Electronic
Components Co., Ltd.
Yantai Lite-On Mobile Electronic Components
Co., Ltd.
Manufacture and sale of mobile phone
modules and design for assembly line
Lite-On Young Fast Pte. Ltd.
Lite-On Young Fast (Huizhou) Co., Ltd.
Modules of touch panels

% of Ownership
December 31
2015
2014
Remark
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
7.87
7.87
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
60.00
60.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
3.14
3.53
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
96.86
96.47
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
(Concluded)

5) In November 2014, the Group acquired power to cast the majority of the equity; thus, this investee was included in the consolidated financial statement effective that month. The Company was dissolved after liquidation in April 2015.
6) Accomplished the liquidation in July 2015.
7) Accomplished the liquidation in September 2015.
8) Established in August 2015.
9) Accomplished the liquidation in September 2015.
10) Established in December 2015.
b. Subsidiaries excluded from consolidated financial statements: None.
c. Details of subsidiaries that have material non-controlling interests

Name of Subsidiary Silitech Technology Corp.	Proportion of Ownership and Voting Rights Held by Non-controlling Interests
	December 31
	2015 2014 65.49% 67.31%

See Table 7 and Table 8 for the information on place of incorporation and principal place of business.

Profit (Loss) Allocated to Non-controlling Interests For the Year Ended December 31 2015 2014 $ 52,347 $ (949,973) 37,586 166,157 $ 89,933 $ (783,816)	Accumulated Non-controlling Interests	Accumulated Non-controlling Interests

	December 31
2015 $ 52,347 37,586 $ 89,933	2015 $ 2,885,289 809,793 $ 3,695,082	2014 $ 3,251,040 947,390 $ 4,198,430

Summarized financial information in respect of each of the Group’s subsidiaries that has material non-controlling interests is set out below. The summarized financial information below represents amounts before intragroup eliminations.

Remark:

1) LarView Technologies Corporation (Samoa) was dissolved after liquidation in November 2015.

2) Lite-On IT Singapore Pte. Ltd. was dissolved after merging with Lite-On Singapore Pte. Ltd. in January 2015.

3) Lite-On Automotive North America Inc. was dissolved after liquidation in May 2015.

79 ‧Lite-On Technology Corporation 2015 Annual Report

Lite-On Technology Corporation 2015 Annual Report‧

Silitech Technology Corp. and Silitech Technology Corp.’s subsidiaries:

15. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

Current assets Non-current assets Current liabilities Non-current liabilities Equity Equity attributable to: Parent Company Non-controlling interests of Silitech Technology Corp. Non-controlling interests of Silitech Technology Corp.’s subsidiaries Revenue Profit (loss) for the year Other comprehensive income (loss) for the year Total comprehensive income (loss) for the year Profit (loss) attributable to: Parent Company Non-controlling interests of Silitech Technology Corp. Non-controlling interests of Silitech Technology Corp.’s subsidiaries Total comprehensive income attributable to: Parent Company Non-controlling interests of Silitech Technology Corp. Non-controlling interests of Silitech Technology Corp.’s subsidiaries Net cash inflow (outflow) from: Operating activities Investing activities Financing activities Foreign exchange translation Net cash outflow Dividends paid to non-controlling interest Silitech Technology Corp.		December 31	December 31
	2015 2014 $ 5,467,860 $ 5,982,635 1,941,195 2,129,489 (1,399,290) (1,642,438) (1,608,984) (1,666,121) $ 4,400,781 $ 4,803,565 $ 1,515,492 $ 1,552,525 2,875,966 3,196,711 9,323 54,329 $ 4,400,781 $ 4,803,565 For the Year Ended December 31
		2015 $ 3,530,193 $ 101,383 (42,252) $ 59,131 $ 49,036 96,941 (44,594) $ 101,383 $ 34,981 69,155 (45,005) $ 59,131 $ 424,898 (412,759) (461,902) (6,274) $ (456,037) $ 148,827	2014 $ 4,502,520 $ (1,402,037) 108,677 $ (1,293,360) $ (452,064) (933,156) (16,817) $ (1,402,037) $ (417,244) (861,279) (14,837) $ (1,293,360) $ 131,756 (311,856) (308,671) 71,955 $ (416,816) $ 127,371

Investments in Associates

Investments in Associates
Material associates Lite-On Semiconductor Corp. Dragonjet Corporation Logah Technology Corp. Associates that are not individually material		December 31
		2015 $ 1,748,154 1,047,765 277,156 3,073,075 1,022,092 $ 4,095,167	2014 $ 1,698,507 1,060,414 352,473 3,111,394 944,508 $ 4,055,902

a. Material associates:

p. ragonjet Corporation ogah Technology Corp. ociates that are not individually material Material associates:	,, ,, 1,047,765 1,060,414 277,156 352,473 3,073,075 3,111,394 1,022,092 944,508 $ 4,095,167 $ 4,055,902
Name of Associate Lite-On Semiconductor Corp. Dragonjet Corporation Logah Technology Corp.	December 31
	2015 2014 20.62% 20.23% 29.62% 29.62% 31.77% 32.53%

Refer to Table 7 “names, locations, and related information of investees over which the Company exercises significant influence” for the nature of activities, principal place of business and country of incorporation of the associates.

The equity-method investees’ financial statements, which had been used to determine the carrying amount of the Group’s investments share of profit and other comprehensive income of associates, had been audited.

Starting from March 28, 2014, the Group has no power to govern the financial and operating policies of Logah Technology Corp. The Group used the fair value measurement for its investments after it lost control of Logah Technology Corp. (please refer to Note 30). The Group still has significant influence on Logah Technology Corp.; thus, the Group accounted for this investment by the equity method.

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

summarized as follows:		p p q	p p q
Name of Associate Lite-On Semiconductor Corp. Logah Technology Corp.		December 31
		2015 $ 1,366,148 $ 324,211	2014 $ 1,429,838 $ 599,741

The Group’s investments of the above mentioned associates are measured by equity method.

81 ‧Lite-On Technology Corporation 2015 Annual Report

Lite-On Technology Corporation 2015 Annual Report‧

The summarized financial information below represents amounts shown in the associates’ financial statements prepared in accordance with IFRSs adjusted by the Group for equity accounting purposes.

Lite-On Semiconductor Corp.

Current assets Non-current assets Current liabilities Non-current liabilities Equity Proportion of the Group’s ownership Equity attributable to the Group Goodwill Other Carrying amount Revenue Operating Loss Profit for the year Other comprehensive income (loss) for the year Total comprehensive income (loss) for the year Dividends received		December 31	December 31
	2015 2014 $ 2,482,368 $ 2,764,367 13,683,914 13,122,985 (5,385,781) (4,012,552) (2,498,858) (3,608,178) $ 8,281,643 $ 8,266,622 20.62% 20.23% $ 1,707,674 $ 1,672,337 28,531 28,531 11,949 (2,361) $ 1,748,154 $ 1,698,507 For the Year Ended December 31
		2015 $ 6,305,194 $ (382,835) $ 476,872 (93,012) $ 383,860 $ 63,520	2014 $ 7,185,708 $ (183,501) $ 428,587 355,747 $ 784,334 $ 27,053

Dragonjet Corporation

Current assets Non-current assets Current liabilities Non-current liabilities Equity Proportion of the Group’s ownership Equity attributable to the Group Goodwill Other Carrying amount		December 31	December 31
		2015 $ 407,198 2,217,343 (559,090) (227,940) $ 1,837,511 29.62% $ 544,337 503,428 - $ 1,047,765	2014 $ 372,673 2,232,755 (494,104) (234,066) $ 1,877,258 29.62% $ 556,043 503,428 943 $ 1,060,414

For the Year Ended	For the Year Ended	December 31
	2015 2014 $ 235,792 $ 263,396 $ (2,077) $ 3,902 $ 27,222 $ 56,511 (21,858) 89,400 $ 5,364 $ 145,911 $ 13,364 $ 13,364 December 31
2015 2014 $ 161,760 $ 143,537 792,453 1,042,939 (63,927) (80,610) (18,048) (17,883) $ 872,238 $ 1,087,983 31.77% 32.53% 277,156 353,920 - (1,447) $ 277,156 $ 352,473 For the Year Ended December 31
	2015 $ 96,107 $ (45,532) $ (211,123) (4,622) $ (215,745) $ -	2014 $ 90,199 $ (55,749) $ (206,774) 23,627 $ (183,147) $ -

b. Aggregate information of associates that are not individually material

The Group’s share of: Profit for the year Other comprehensive income (loss) Total comprehensive income for the year	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2015 $ 83,009 (5,565) $ 77,444	2014 $ 3,808 45,237 $ 49,045

83 ‧Lite-On Technology Corporation 2015 Annual Report

Lite-On Technology Corporation 2015 Annual Report‧ 84

Investments in associates that are not individually material are accounted for by the equity method and the share of profit or loss and other comprehensive income of those investments were calculated based on the financial statements that were not audited. Management believes there is no material impact on the equity method accounting or the calculation of the share of profit or loss and other comprehensive income from the financial statements of associates that are not individually material that have not been audited.

the share of profit or loss and other comprehensive income of those investments were calculated based on the financial statements that were not audited. Management believes there is no material impact on the equity method accounting or the calculation of the share of profit or loss and other comprehensive income from the financial statements of associates that are not individually material that have not been audited. PROPERTY, PLANT AND EQUIPMENT, NET December 31 2015 2014 Freehold land $ 2,339,337 $ 2,335,867 Buildings 11,678,185 12,424,092 Machinery equipment 14,961,795 16,012,090 Tooling equipment 227,999 140,111 Transportation equipment 15,936 21,681 Office equipment 425,556 465,815 Equipment held under finance lease 257,851 267,468 Other equipment 3,482,780 4,440,092 $ 33,389,439 $ 36,107,216 For the Year Ended December 31, 2015 January 1, 2015 Additions Disposals Effect of Business Combination Reclassification Effect of Foreign Currency Exchange Differences December 31, 2015 Cost Freehold land $ 2,335,867 $ - $ 53 $ - $ 10,275 $ (6,752 ) $ 2,339,337 Buildings 20,591,355 149,911 90,266 - 296,816 (204,233 ) 20,743,583 Machinery equipment 42,733,143 4,364,717 3,675,925 - 589,501 (598,207 ) 43,413,229 Tooling equipment 3,884,972 159,092 688,688 - 234,079 (41,861 ) 3,547,594 Transportation equipment 83,156 5,050 5,171 - (9,336 ) (1,149 ) 72,550 Office equipment 2,730,452 221,682 231,804 - (245,268 ) (11,749 ) 2,463,313 Equipment held under finance lease 1,411,445 97,851 679 - (11,741 ) (26,317 ) 1,470,559 Other equipment 9,077,902 802,393 435,101 - (1,647,974) (72,521) 7,724,699 82,848,292 $ 5,800,696 $ 5,127,687 $ - $ (783,648) $ (962,789) 81,774,864 Accumulated depreciation Buildings 7,821,429 $ 814,098 $ 57,152 $ - $ 186,352 $ (79,546 ) 8,685,181 Machinery equipment 25,607,321 4,831,830 2,278,086 - (194,641 ) (361,859 ) 27,604,565 Tooling equipment 3,704,341 194,072 667,103 - 107,787 (40,502 ) 3,298,595 Transportation equipment 60,551 8,307 4,978 - (7,076 ) (937 ) 55,867 Office equipment 2,254,755 239,883 211,497 - (243,435 ) (10,788 ) 2,028,918 Equipment held under finance lease 1,101,485 108,323 281 - (18,002 ) (20,973 ) 1,170,552 Other equipment 4,534,639 516,782 423,837 - (505,686) (38,541) 4,083,357 45,084,521 $ 6,713,295 $ 3,642,934 $ - $ (674,701) $ (553,146) 46,927,035 Accumulated impairment Freehold land - $ - $ - $ - $ - $ - - Buildings 345,834 16 - - 2,287 32,080 380,217 Machinery equipment 1,113,732 130,276 494,361 - 84,402 12,820 846,869 Tooling equipment 40,520 - 24,163 - 908 3,735 21,000 Transportation equipment 924 - 170 - - (7 ) 747 Office equipment 9,882 - 968 - - (75 ) 8,839 Equipment held under finance lease 42,492 - - - - (336 ) 42,156 Other equipment 103,171 56,229 3,178 - 5,529 (3,189) 158,562 1,656,555 $ 186,521 $ 522,840 $ - $ 93,126 $ 45,028 1,458,390 $ 36,107,216 $ 33,389,439	For the Year Ended December 31, 2014 January 1, 2014 Additions Disposals Effect of Business Combination Reclassification Effect of Foreign Currency Exchange Differences December 31, 2014 Cost Freehold land $ 2,398,990 $ - $ - $ (56,368 ) $ - $ (6,755 ) $ 2,335,867 Buildings 20,283,203 101,821 65,610 (135,706 ) (31,002 ) 438,649 20,591,355 Machinery equipment 40,610,971 5,026,374 3,129,618 (141,208 ) (701,125 ) 1,067,749 42,733,143 Tooling equipment 4,114,144 122,835 304,519 - 9,974 (57,462 ) 3,884,972 Transportation equipment 89,042 6,182 11,220 (1,600 ) (72 ) 824 83,156 Office equipment 2,757,887 182,053 153,056 803 (85,220 ) 27,985 2,730,452 Equipment held under finance lease 1,420,378 73,977 13,380 (68,222 ) (21,608 ) 20,300 1,411,445 Other equipment 6,784,900 2,926,602 193,794 (31,642) (498,728) 90,564 9,077,902 78,459,515 $ 8,439,844 $ 3,871,197 $ (433,943) $ (1,327,781) $ 1,581,854 82,848,292 Accumulated depreciation Buildings 6,947,394 $ 811,998 $ 30,105 $ (11,582 ) $ (159,084 ) $ 262,808 7,821,429 Machinery equipment 22,822,096 4,857,725 1,949,067 (185,703 ) (545,589 ) 607,859 25,607,321 Tooling equipment 3,611,874 406,792 409,189 - 2,572 92,292 3,704,341 Transportation equipment 64,939 8,299 10,202 (1,301 ) (2,269 ) 1,085 60,551 Office equipment 2,016,021 281,832 90,590 (20,156 ) 26,560 41,088 2,254,755 Equipment held under finance lease 1,026,069 53,531 12,442 (24,858 ) (9,004 ) 68,189 1,101,485 Other equipment 3,725,652 688,362 185,661 (22,620) 307,456 21,450 4,534,639 40,214,045 $ 7,108,539 $ 2,687,256 $ (266,220) $ (379,358) $ 1,094,771 45,084,521 Accumulated impairment Freehold land - $ - $ - $ - $ - $ - - Buildings 168,211 193,933 5,851 - - (10,459 ) 345,834 Machinery equipment 998,389 886,485 463,493 (79,978 ) (178,024 ) (49,647 ) 1,113,732 Tooling equipment 22,877 19,520 1,908 - - 31 40,520 Transportation equipment 301 890 - (299 ) - 32 924 Office equipment 4,431 7,713 439 (2,133 ) - 310 9,882 Equipment held under finance lease 14,338 40,943 - (14,241 ) - 1,452 42,492 Other equipment 35,541 81,817 18 (3,902) - (10,267) 103,171 1,244,088 $ 1,231,301 $ 471,709 $ (100,553) $ (178,024) $ (68,548) 1,656,555 $ 37,001,382 $ 36,107,216 For the years ended December 31, 2015 and 2014, as the result of the declining sale of some of the products in the market, the estimated future cash flows expected to arise from the related equipment was decreased and recognized impairment loss $186,521 thousand and $1,231,301 thousand, respectively. The Group carried out a review of the recoverable amount of that related equipment and determined that the carrying amount exceeded the recoverable amount. The impairment loss had been recognized in the consolidated statements of comprehensive income. The above items of property, plant and equipment are depreciated on a straight-line basis at the following rates per annum: Buildings 5-60 years Machinery equipment 2-10 years Tooling equipment 2-10 years Transportation equipment 3-10 years Office equipment 2-10 years Equipment held under finance lease 3-40 years Other equipment 2-10 years			For the Year	Ended December 31, 2014

16. PROPERTY, PLANT AND EQUIPMENT, NET

For the years ended December 31, 2015 and 2014, as the result of the declining sale of some of the products in the market, the estimated future cash flows expected to arise from the related equipment was decreased and recognized impairment loss $186,521 thousand and $1,231,301 thousand, respectively. The Group carried out a review of the recoverable amount of that related equipment and determined that the carrying amount exceeded the recoverable amount. The impairment loss had been recognized in the consolidated statements of comprehensive income.

The above items of property, plant and equipment are depreciated on a straight-line basis at the following rates per annum:

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17. INVESTMENT PROPERTIES, NET

INVESTMENT PROPERTIES, NET
	Completed
	Investment
	Property
Cost
Balance at January 1, 2014	$	-
Transferred from property, plant and equipment		706,741
Net exchange differences		26,737
Balance at December 31, 2014	$	733,478
Accumulated depreciation
Balance at January 1, 2014	$	-
Transferred from property, plant and equipment		189,287
Net exchange differences		7,161
Balance at December 31, 2014	$	196,448
Balance at December 31, 2014, net	$	537,030
Cost
Balance at January 1, 2015	$	733,478
Net exchange differences		(5,814)
Balance at December 31, 2015	$	727,664
Accumulated depreciation
Balance at January 1, 2015	$	196,448
Depreciation Expense		32,835
Net exchange differences		(1,569)
Balance at December 31, 2015	$	227,714
Balance at December 31, 2015, net	$	499,950

The investment properties held by the Group are depreciated using the straight-line method over their estimated useful lives of 20 years.

The fair value of the investment properties as of December 31, 2014 was $613,771 thousand. The Group’s management estimated no significant differences between this fair value and that for the years ended 2015. For the investment properties valued by an independent appraiser, the Group’s management determined their fair value by reference to the appraiser’s market evidence of the transaction price of real estate.

18. OTHER INTANGIBLE ASSETS, NET

Goodwill Patents Patents use rights Software Other intangible assets January 1, 2015 Cost Goodwill $ 15,483,954 Patents 39,481 Patents use rights 2,695,878 Client relationships 163,819 Software 563,576 Other intangible assets 3,859,575 22,806,283 Accumulated amortization Goodwill 77,234 Patents 27,293 Patents use rights 1,909,581 Client relationships 163,819 Software 277,272 Other intangible assets 3,598,588 6,053,787 Accumulated impairment Goodwill 453,533 Patents - Patents use rights - Software - Other intangible assets - 453,533 $ 16,298,963 January 1, 2014 Cost Goodwill $ 14,792,433 Patents 37,328 Patents use rights 2,695,878 Client relationships 163,819 Software 265,373 Other intangible assets 3,427,496 21,382,327 Accumulated amortization Goodwill 77,234 Patents 25,927 Patents use rights 1,684,924 Client relationships 163,819 Software 203,832 Other intangible assets 3,056,796 5,212,532		For the Year	Ended Decembe		December 31	December 31	December 31	December 31
				2015 $ 14,994,136 6,920 561,640 253,143 122,393 $ 15,938,232 r31, 2015			2014 $ 14,953,187 12,188 786,297 286,304 260,987 $ 16,298,963

January 1, 2015 $ 15,483,954 39,481 2,695,878 163,819 563,576 3,859,575 22,806,283 77,234 27,293 1,909,581 163,819 277,272 3,598,588 6,053,787 453,533 - - - - 453,533 $ 16,298,963	Additions $ 92,264 - - - 139,208 15,762 $ 247,234 $ - 4,850 224,657 - 159,610 145,011 $ 534,128 $ - - - - - $ -	Disposals $ - - - 37,243 1,009,378 $ 1,046,621 $ - - - - 26,243 995,602 $ 1,021,845 $ - - - - - $ - For the Year	Effect of Business Combination $ - - - - - - $ - $ - - - - - - $ - $ - - - - - $ - Ended Decembe	Reclassification $ - (1,566 ) - - 3,981 (854,677) $ (852,262) $ - (1,178 ) - - 5,191 (865,406) $ (861,393) $ - - - - - $ - r31, 2014		Effect of Foreign Currency Exchange Differences $ (51,315 ) (142 ) - - (469 ) (19,833) $ (71,759) $ - (112 ) - - 80 (13,535) $ (13,567) $ - - - - - $ -		December 31, 2015 $ 15,524,903 37,773 2,695,878 163,819 669,053 1,991,449 21,082,875 77,234 30,853 2,134,238 163,819 415,910 1,869,056 4,691,110 453,533 - - - - 453,533 $ 15,938,232
January 1, 2014 $ 14,792,433 37,328 2,695,878 163,819 265,373 3,427,496 21,382,327 77,234 25,927 1,684,924 163,819 203,832 3,056,796 5,212,532	Additions $ 697,770 1,092 - - 279,302 56,165 $ 1,034,329 $ - 8,772 224,657 - 108,482 226,597 $ 568,508	Disposals $ - 6,143 - - 12,047 38,730 $ 56,920 $ - 4,093 - 10,543 35,746 $ 50,382	Effect of Business Combination $ (5,043 ) 130 - - 51,550 1,836 $ 48,473 $ - - - - 3,799 879 $ 4,678		Reclassification $ - 7,187 - - (19,224 ) 413,730 $ 401,693 $ - (3,251 ) - (26,655 ) 342,389 $ 312,483	Effect of Foreign Currency Exchange Differences $ (1,206 ) (113 ) - - (1,378 ) (922) $ (3,619) $ - (62 ) - (1,643 ) 7,673 $ 5,968		December 31, 2014 $ 15,483,954 39,481 2,695,878 163,819 563,576 3,859,575 22,806,283 77,234 27,293 1,909,581 163,819 277,272 3,598,588 6,053,787

(Continued)

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Accumulated impairment Goodwill Patents Patents use rights Software Other intangible assets			For the Year	Ended December 31, 2014	Ended December 31, 2014
	January 1, 2014 $ 453,533 - - - - 453,533 $ 15,716,262	Additions $ - - - - - $ -	Disposals $ - - - - - $ -	Effect of Business Combination $ - - - - - $ -	Reclassification $ - - - - - $ -	Effect of Foreign Currency Exchange Differences December 31, 2014 $ - $ 453,533 - - - - - - - - $ - 453,533 $ 16,298,963 (Concluded)

c. Goodwill is allocated to the Group’s recoverable amount of cash-generating units. The recoverable amount of all cash-generating units has been determined based on value-in-use calculations. These calculations use pre-tax cash flow projections based on financial budgets approved by the management covering the future five-year period. As of December 31, 2015 and 2014, the recoverable amount of all cash-generating units calculated using the value-in-use exceeded their carrying amount, so goodwill was not impaired. The key assumptions used for value-in-use calculations are gross margin, growth rate and discount rate.

Management determined gross margin based on past performance and future profits. The growth rate used is consistent with the forecasts included in industry reports. The discount rates used are pre-tax and reflect specific risks relating to the relevant cash-generating units.

19. OTHER ASSETS

a. The Parent Company acquired an asset group from SEEnergy Corp. in September 2015. IFRS 3 “Business Combinations” and IAS 38 “Intangible Assets” define recognized goodwill as the sum of the acquisition cost plus other direct transaction costs minus the fair value of the identifiable net assets acquired. Thus, goodwill was calculated as follows:

Acquisition price Fair value of acquired identifiable net assets: Inventories Property, plant and equipment Software Goodwill	$ 2,420 340 71	$ 30,093 2,831 $ 27,262

To integrate its overall resources and enhance the efficiency of operations, the Parent Company had short-form mergers - in accordance with Article 19 of the Business Mergers and Acquisitions Act - with Li Shin International Enterprise Corp., Lite-On Automotive Corp., Leotek Electronics Corp., Lite-On IT Corp. and LarView Technologies Corp. on March 22, 2014, June 1, 2014, June 29, 2014, June 30, 2014 and September 1, 2014, respectively, under the board of directors’ approval. The Parent Company was the survivor entity in all of these mergers. The investment premium due to merger from Li Shin International Enterprise Corp., Lite-On Automotive Corp., Leotek Electronics Corp., were $1,708,258 thousand, $165,424 thousand, and $220,170 thousand, respectively. The investment premium from acquisition of LarView Technologies Corp. was $368,462 thousand. The goodwill from Lite-On IT Corporation, and Lite-On Automotive Corp. acquiring other companies was $2,806,508 thousand and $112,416 thousand, respectively. The total amount of $5,381,238 thousand was transferred to the Parent Company and recorded as intangible assets - goodwill.

The Parent Company completed the purchase of some assets of the IrDA Department of Avago Technologies Limited. Statement of IFRS 3 - “Business Combinations” and IAS 38 - “Intangible Assets” define recognized goodwill as the sum of the acquisition cost plus other direct transaction costs minus the fair value of the identifiable net assets acquired. Thus, the goodwill generated was calculated at $411,932 thousand as of December 31, 2009.

The goodwill arising from the Parent Company’s acquisition of Lite-On Enclosure Inc. in 2004 was $210,220 thousand was amortized for about five years. However, under the Guidelines Governing the Preparation of Financial Reports, effective January 1, 2006, goodwill need no longer be amortized. As of December 31, 2015 and 2014, the carrying value of goodwill was $132,986 thousand.

b. As of the goodwill resulting from the acquisition of LarView Technologies, Power Innovations International Inc. and Five Dimension Co., Ltd. in 2014, refer to Note 29.

OTHER ASSETS
Prepayments Offset against business tax payable Prepayments for lease Prepayment for equipment Others Current Non-current		December 31
		2015 $ 2,408,898 1,220,409 654,742 63,956 144,101 $ 4,492,106 $ 3,744,824 747,282 $ 4,492,106	2014 $ 2,689,934 1,530,386 775,063 93,450 361,639 $ 5,450,472 $ 4,561,144 889,328 $ 5,450,472

Prepayments for lease with carrying amounts of $618,648 thousand and $630,003 thousand as of December 31, 2015 and 2014, respectively, referred to land use rights located in mainland China.

20. BORROWINGS

a. Short-term borrowings

Unsecured borrowings Line of credit borrowings Market interest rates for short-term borrowings were as follows: Short-term borrowings		December 31,
		2015 2014 $ 17,670,878 $ 22,911,114 December 31,
		2015 2014 0.7%-4% 0.82%-4.1%

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b. Long-term borrowings

Long-term borrowings
Unsecured borrowings The Parent Company Lite-On Mobile Pte. Ltd. Silitech Technology Corp. Guangzhou Lite-On Mobile Electronic Components Co., Ltd. Lite-On Japan Ltd. Five Dimension Co., Ltd Current portion Secured borrowings Power Innovations International Inc. Current portion		December 31,
		2015 $ 12,500,000 6,555,000 1,440,000 524,396 102,082 26,890 21,148,368 (4,795,064) 16,353,304 3,503 (1,054) 2,449	2014 $ 12,925,000 6,319,993 1,440,000 1,011,199 193,630 28,977 21,918,799 (8,358,016) 13,560,783 4,350 (973) 3,377

$ 16,355,753 $ 13,564,160

1) As of December 31, 2015 and 2014, the Parent Company had 2 and 4 long-term bank loans respectively with contract terms between October 19, 2011 and September 23, 2018. The floating interest rates are (1.5789% to 1.59067% and 1.520% to 1.703% and as of December 31, 2015 and 2014, respectively) payable monthly or quarterly. These loans should be repaid in 5 or 8 installments or at lump sum on loan maturity.

On September 23, 2008, the Parent Company signed a contract for a five-year syndicated loan with Citibank and 14 other financial institutions, and on May 16, 2011 changed the contract period to seven years from 2008. The repayment period is between September 23, 2008 and September 22, 2015. The credit line is NT$15 billion, consisting of (a) $12 billion and (b) $3 billion of the credit line of the above syndicated loan. The Parent Company had repaid the syndicated loan in September 2015.

On September 12, 2013, the Parent Company signed another contract for a five-year syndicated loan with Citibank and 16 other financial institutions. The credit line was $15 billion, which was for Parent Company to repay the former syndicated loan with Citibank signed on September 23, 2008, consisting of (a) $12 billion and (b) $3 billion of the credit line of the above syndicated loan. It should be used as a medium-term loan but may not be used on a revolving basis.

The principal of this syndication loan should be repaid three years after September 23, 2013 in five semiannual installments with the first payment paid on September 23, 2016, and the interest rate is the 90-day Taipei Interbank Offered Rate plus 61 points. Under the syndicated loan agreement, the Parent Company should maintain the agreed financial ratios based on the most recent semiannual or annual financial statements. As of December 31, 2015 and 2014, the Company used $12 billion of the credit line of the above syndicated loan.

As of December 31, 2015 and 2014, the Parent Company did not violate the financial ratio agreement stated above.

2) Lite-On Mobile Pte. Ltd., a subsidiary of the Parent Company, had a long-term, syndicated-bank loan. As of December 31, 2015 and 2014, the floating interest rates were 0.92075% to 1.4239% and 0.925% to 1.395%, respectively. The principal is repayable from April 29, 2014 in five semiannual installments.

On April 29, 2011, Lite-On Mobile Pte. Ltd. signed a loan contract with Citibank and 13 other financial institutions (the endorsements and guarantees were provided by the Parent Company). This contract is on a five-year syndicated loan of US$200 million. As of December 31, 2015 and 2014, Lite-On Mobile Pte. Ltd. had used US$40 million and US$120 million, respectively, of the syndicated loan. The principal of this syndication loan should be repaid three years after April 29, 2011 in five semiannual installments with the first payment paid on April 29, 2014.

On March 31, 2014, Lite-On Mobile Pte. Ltd. signed with Citibank and 12 other financial institutions (the endorsements and guarantees were provided by the Parent Company). This contract is on a five-year syndicated loan of US$200 million. This syndicated loan was for Lite-On Mobile Pte. Ltd. to prepay the syndicated loan with Citibank under a contract signed on April 29, 2011. As of December 31, 2015 and 2014, Lite-On Mobile Pte. Ltd. had used US$160 million and US$80 million of the syndicated loan. The principal of this syndication loan should be repaid three years after March 31, 2014 in five semiannual installments with the first payment paid on March 31, 2017.

3) Silitech Technology Co., Ltd., a subsidiary of the Parent Company, entered into a $2.4 billion syndicated loan contract, with the Land Bank of Taiwan as lead bank and a contract term from February 18, 2013 to February 18, 2018. This loan was obtained for the purposes of supporting working capital and capital expenditure. As of December 31, 2015 and 2014, Silitech had both used $1.44 billion of the syndicated loan, with an interest rate of 1.5958% to 1.5962% and 1.6786%, respectively.

The first repayment of $480 million should be made on August 18, 2017. The remaining principal of $960 million is repayable by February 18, 2018.

4) Guangzhou Lite-On Mobile Electronic Components Co., Ltd., a subsidiary of the Parent Company, had a syndicated loan with Citibank. As of December 31, 2015 and 2014, the floating interest rates were 1.2031% and 0.880%. The principal is repayable from December 28, 2014 in five semiannual installments.

This contract is a five-year syndicated loan of US$50 million and was signed with Citibank and 10 other financial institutions (the endorsements and guarantees were provided by the Parent Company). As of December 31, 2015 and 2014, Guangzhou Lite-On Mobile Electronic Components Co., Ltd. had used US$16 million and US$32 million of the credit line of the syndicated loan.

5) As of December 31, 2015, Lite-On Japan Ltd., a subsidiary of the Parent Company, had 6 long-term bank loans, with contract terms from March 2011 to October 2018, with interest rate of 0.975% to 1.35% and principal repayable in trimestral installments.

As of December 31, 2014, Lite-On Japan Ltd., a subsidiary of the Parent Company, had 11 long-term bank loans, with contract terms from March 2011 to October 2018, with interest rate of 0.935% to 1.35% and principal repayable in trimestral installments.

6) As of December 31, 2015 and 2014, Five Dimension Co., Ltd, a subsidiary of the Parent Company, had both 3 long-term bank loans, with contract terms from March 28, 2012 to March 20, 2027, with interest rate of 0.4% to 2.375%. and principal repayable monthly installments or at lump sum on loan maturity.

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7) As of December 31, 2015 and 2014, Power Innovations International Inc., a subsidiary of the Parent Company, had both a long-term secured borrowing of machinery, with contract terms from March 28, 2013 to February 28, 2019, with interest rate of 4.4%.

21. FINANCE LEASE PAYABLES

FINANCE LEASE PAYABLES
Minimum lease payments Not later than one year Later than one year and not later than five years Future finance charges Present value of minimum lease payments Present value of minimum lease payments Not later than one year Later than one year and not later than five years Current Non-current Guangzhou Lite-On Mobile Electronic Components Co., Ltd. Power Innovations International Inc. Lite-On Mobile Sweden AB Lite-On Mobile Oyj (formerly Perlos Oyj) Current portion of long-term capital lease liabilities		December 31
		2015 $ 98,508 5,790 104,298 (3,399) $ 100,899 $ 95,501 5,398 $ 100,899 $ 95,501 5,398 $ 100,899 $ 93,390 7,010 499 - 100,899 (95,501) $ 5,398	2014 $ 93,485 104,988 198,473 (11,520) $ 186,953 $ 85,232 101,721 $ 186,953 $ 85,232 101,721 $ 186,953 $ 177,962 8,244 700 47 186,953 (85,232) $ 101,721

a. Guangzhou Lite-On Mobile Electronic Components Co., Ltd. leased buildings, machinery and equipment under capital leases valid from January 1, 2007 to December 31, 2016. The terms of these leases were 10 years, with 7.11% interest rate.
b. Power Innovations International Inc. leased machinery and equipment under capital leases valid from March 28, 2013 to March 31, 2020. The terms of these leases were between five and seven years, with 3.49% to 4.75% interest rate. The machinery and equipment can be bought at bargain purchase prices at the end of the lease terms.
c. Lite-On Mobile Sweden AB leased machinery and equipment under capital leases valid from January 9, 2013 to January 31, 2016. The terms of these leases were three years, with 2.36% interest rate.
d. Lite-On Mobile Oyj (formerly Perlos Oyj) leased machinery and equipment under capital leases valid from October 1, 2010 to September 30, 2015. The terms of these leases were four years, with 5.00% interest rate.

22. PROVISIONS

PROVISIONS
Current Warranties Balance at January 1 Recognition of provisions Usage Effect of foreign currency exchange differences Balance at December 31		December 31
	2015 2014 $ 1,068,810 $ 1,080,628 For the Year Ended December 31
		2015 $ 1,080,628 286,549 (301,940) 3,573 $ 1,068,810	2014 $ 874,502 341,704 (149,273) 13,695 $ 1,080,628

Based on the local legislation for the sale of goods, provision for warranty claims is the present value of management’s best estimate of the future outflow of economic benefits that will be required under the Company’s obligations for warranties. The estimate had been made on the basis of historical warranty trends and may vary as a result of the entry of new materials, altered manufacturing processes or other events affecting product quality.

23. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

The Parent Company and subsidiaries - Philips & Lite-On Digital Solutions Corp., Silitech Technology Corp., Lite-On Integrated Services Inc. and Lite-On Green Technologies Inc. of the Group adopted a pension plan under the Labor Pension Act (the “LPA”), which is a state-managed defined contribution plan. Under the LPA, an entity makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages.

Some consolidated entities, which are mainly in investments, have either very few or even no staff. These companies have no pension plans and thus do not contribute to pension funds and do not recognize pension costs.

Except for these companies, the remaining companies all contribute to pension funds and recognize pension costs based on local government regulations.

b. Defined benefit plans

The Parent Company and subsidiaries - Philips & Lite-On Digital Solutions Corp. and Silitech Technology Corp. of the Group adopted the defined benefit plan under the Labor Standards Law, under which pension benefits are calculated on the basis of the length of service and average monthly salaries of the six months before retirement. The Parent Company and subsidiaries - Philips & Lite-On Digital Solutions Corp. and Silitech Technology Corp. of the Group contribute amounts equal to 2% to 2.5% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name. Before the end of each year, the Company assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one

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appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (“the Bureau”); the Company has no right to influence the investment policy and strategy.

The amounts included in the balance sheets in respect of the Company’s defined benefit plans were as follows:

The amounts included in the balance sheets in respect of the Com follows:	pany’s defined benefit plans were as
Present value of defined benefit obligation Fair value of plan assets Net defined benefit liability	December 31
	2015 2014 $ 1,257,757 $ 1,178,095 (1,101,903) (1,082,074) $ 155,854 $ 96,021

Movements in net defined benefit liability (asset) were as follows:

	Present Value
	of the Defined		Net Defined
	Benefit	Fair Value of		Benefit
	Obligation	the Plan Assets	Liability (Asset)
Balance at January 1, 2014	$ 1,263,529	$ (1,043,820)	$	219,709
Service cost
Current service cost	17,031	-		17,031
Past service cost and gain on settlements	(6,960)	-		(6,960)
Net interest expense (income)	19,925	(20,125)		(200)
Recognized in profit or loss	29,996	(20,125)		9,871
Remeasurement
Return on plan assets (excluding amounts
included in net interest)	-	(9,253)		(9,253)
Actuarial loss - changes in demographic
assumptions	2,557	-		2,557
Actuarial loss - changes in financial
assumptions	2,118	-		2,118
Actuarial gain - experience adjustments	(22,487)	-		(22,487)
Recognized in other comprehensive income
(loss)	(17,812)	(9,253)		(27,065)
Contributions from the employer	-	(27,243)		(27,243)
Benefits paid	(22,354)	16,763		(5,591)
Assets (liability) eliminated on the
deconsolidation of subsidiaries	(75,112)	1,604		(73,508)
Exchange differences on foreign plans	(152)	-		(152)
Balance at December 31, 2014	$ 1,178,095	$ (1,082,074)	$	(96,021)
Balance at January 1, 2015	$ 1,178,095	$ (1,082,074)	$	96,021
Service cost	12,544	-		12,544
Net interest expense (income)	20,308	(18,137)		1,991
Recognized in profit or loss	32,852	(18,137)		14,535
Remeasurement
Return on plan assets (excluding amounts
included in net interest)	-	(10,604)		(10,604)
Actuarial loss - changes in demographic
assumptions	4,795	-		4,795
				(Continued)

	Present Value	Present Value
	of	the Defined		Net Defined
		Benefit	Fair Value of		Benefit
	Obligation		the Plan Assets	Liability (Asset)
Actuarial loss - changes in financial
assumptions	$	71,548	$ -	$	71,548
Actuarial loss - experience adjustments		9,501	-		9,501
Recognized in other comprehensive income
(loss)		85,844	(10,604)		75,240
Contributions from the employer		-	(21,910)		(21,910)
Benefits paid		(36,202)	31,002		(5,200)
Exchange differences on foreign plans		(2,832)	-		(2,832)
Balance at December 31, 2015	$	1,257,757	$ (1,101,903)	$	155,854
					(Concluded)

Through the defined benefit plans under the Labor Standards Law, the Company is exposed to the following risks:

1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for a 2-year time deposit with local banks.
2) Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plan’s debt investments.
3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

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

. as follows:
Discount rate(s) Expected rate(s) of salary increase Mortality rate Turnover rate Expected return on plan assets	December 31
	2015 2014 1.10%-4.375% 1.70%-4.125% 3.00%-4.75% 3.00%-4.75% 0.253%-1.0943% 0.0253%-1.0943% 0.5%-45% 1%-48% 1.10%-4.375% 1.70%-2.25%

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If possible reasonable change in each of the significant actuarial assumptions will occur and all other assumptions will remain constant, the present value of the defined benefit obligation would increase (decrease) as follows:

, (decrease) as follows:
Discount rate(s) 0.25% increase 0.25% decrease Expected rate(s) of salary increase 0.25% increase 0.25% decrease		December	31
		2015 $ (32,514) $ 33,759 $ 32,481 $ (31,469)	2014 $ (29,014) $ 30,170 $ 29,304 $ (28,341)

The sensitivity analysis presented above may not be representative of the actual change in the present value of the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

The expected contributions to the plan for the next year The average duration of the defined benefit obligation		December 31
	2015 2014 $ 21,613 $ 23,576 10.32-18.53 years 11.32-19.53 years

On April 3, 1995, GVC Corp. issued 5,000 thousand units of GDRs on the London Stock Exchange. These GDRs represented 25,000 thousand common shares of GVC Corp., which later issued more shares. As of November 4, 2002, the outstanding GDRs were 7,627 thousand units, or 38,136 thousand common shares of GVC Corp. For merger purposes, these GDRs were exchanged for the Parent Company’s 1,478 thousand marketable equity securities, which represented the Parent Company’s 14,781 thousand common shares.

As of December 31, 2015 and 2014, the outstanding marketable equity securities were 5,217 thousand units and 5,213 thousand units, representing 52,168 thousand common share and 52,127 thousand common share of the Parent Company, respectively. The rights and obligation of security holders are the same as those of common shareholders, except for voting rights. As of December 31, 2015 and 2014, the unredeemed GDRs amounted to 816 thousand units and 994 thousand units.

b. Capital surplus

The premium from shares issued in excess of par (including share premium from issuance of common shares, conversion of bonds, and merger) and donations may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to capital limited to a certain percentage of the Parent Company’s capital surplus and once a year.

The capital surplus arising from share of changes in equities of subsidiaries, changes in equities of associates and joint ventures accounted for by the equity method and treasury share transactions from dividends according to the Parent Company’s shares holding by subsidiaries may only be used to offset a deficit.

24. EQUITY

  - c. Retained earnings and dividend policy

a. Share capital
1) Common shares

Number of shares authorized (in thousands) Amount of shares authorized Number of shares issued and fully paid (in thousands) Amount of shares issued		December 31	December 31
		2015 3,500,000 $ 35,000,000 2,334,928 $ 23,349,283	2014 3,500,000 $ 35,000,000 2,341,674 $ 23,416,737

To ensure the availability of cash for the Parent Company’s present and future expansion plans and to meet shareholders’ cash flow requirements, the Parent Company prefers to distribute more stock dividends. In principle, cash dividends are limited to 10% of total dividends distributed.

The Parent Company’s Articles of Incorporation provide that the annual net income, less any deficit, and 10% legal reserve as well as special reserve equal to the debit balances of the shareholders’ equity accounts, together with the distributable unappropriated earnings of prior years, can be retained partially on the basis of operating requirements. The remainder should be distributed as follows:

1) Bonus to employees: At least 1%.
2) Bonus to directors: 1.5% or less.

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

Of the Parent Company’s authorized shares, 100,000 thousand shares had been reserved for the issuance of employee share options.

2) Issued global depositary receipts

On September 25, 1996, the Parent Company issued 4,900 thousand units of global depositary receipts (GDRs) on the London Stock Exchange. These GDRs represented 49,000 thousand common shares of the Parent Company.

3) Others, as dividends.

If the bonus to employees is in the form of shares, it may be distributed to the employees’ subsidiaries. The requirements and the method of distribution of these share bonuses are based on resolutions passed by the board of directors.

In accordance with the amendments to the Company Act in May 2015, the recipients of dividends and bonuses are limited to shareholders and do not include employees. The consequential amendments to the Company’s Articles of Incorporation had been proposed by the Parent Company’s board of directors on March 25, 2016 and are subject to the resolution of the shareholders in their meeting to be held on June 24, 2016. For information about the accrual basis of the employees’ compensation and remuneration to directors and supervisors and the actual appropriations, please refer to Note 28 (b).

Under Rule No. 1010012865, Rule No. 1010047490, and Rule No. 1030006415 issued by the FSC and the directive titled “Questions and Answers for Special Reserves Appropriated Following Adoption of IFRSs”, the Parent Company should appropriate or reverse a special reserve.

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

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

The appropriations of earnings for 2014 and 2013 had been approved in the shareholders’ meetings on June 24, 2015 and June 19, 2014, respectively. The appropriations and dividends per share were as follows:

Legal reserve Legal special reserve Reversal of special reserve Share dividends Cash dividends	Appropriation of Earnings 2014 2013 $ 646,166 $ 875,485 182,544 - - 640,244 117,084 116,381 4,613,097 6,307,866	Dividends Per Share (NT$)
		2014 2013 $ 0.05 $ 0.05 1.97 2.71

The appropriations of earnings for 2015 had been proposed by the Parent Company’s board of directors on March 25, 2016. The appropriations and dividends per share were as follows:

	Appropriation	Appropriation	Dividends Per
	of	Earnings	Share (NT$)
Legal reserve	$	722,290
Special reserve		166,389
Share dividends		116,746	$0.05
Cash dividends		5,113,493	2.19

The appropriations of earnings for 2015 are subject to the resolution of the shareholders’ meeting to be held on June 24, 2016.

d. Other equity items

Movements in other equity items were as follows:

For the Year Ended December 31, 2015 Unrealized Gain (Loss) Foreign from Currency Available-forCash Flow Translation sale Financial Hedges Reserve Assets Reserve Total Balance at January 1 $ 4,125,097 $ 139,072 $ (11,989) $ 4,252,180 Exchange differences arising on translating the financial statements of foreign operations (881,221) - - (881,221) (Continued)

Gain arising on changes in the fair value of available-for- sale financial assets Reclassification to loss from disposal of available-for-sale financial assets Gain arising on changes in the fair value of hedging instruments Share of other comprehensive income of associates Income tax effect Balance at December 31		For the Year Ended December 31, 2015	For the Year Ended December 31, 2015	For the Year Ended December 31, 2015
		Foreign Currency Translation Reserve Unrealized Gain (Loss) from Available-for- sale Financial Assets $ - $ (371,318) - 79,052 - - (28,329) 480 132,355 - $ 3,347,902 $ (152,714)	Cash Flow Hedges Reserve $ - - 11,989 - - $ -	Total $ (371,318) 79,052 11,989 (27,849) 132,355 $ 3,195,188 (Concluded)

Balance at January 1 Exchange differences arising on translating the financial statements of foreign operations Gain arising on changes in the fair value of available-for- sale financial assets Reclassification to income from disposal of available-for-sale financial assets Gain arising on changes in the fair value of hedging instruments Share of other comprehensive income of associates	For the Year Ended December 31, 2014
	Foreign Currency Translation Reserve Unrealized Gain (Loss) from Available-for- sale Financial Assets Cash Flow Hedges Reserve Total $ 2,383,040 $ 83,231 $ (46,969) $ 2,419,302 1,995,848 - - 1,995,848 - 475,947 - 475,947 - (422,324) - (422,324) - - 34,980 34,980 165,305 2,218 - 167,523 (Continued)

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The proportionate share of other comprehensive income reclassified to profit or loss upon partial disposal of associates Effect of deconsolidation of subsidiary (Note 30) Income tax effect Balance at December 31		For the Year Ended December 31, 2014
		Foreign Currency Translation Reserve Unrealized Gain (Loss) from Available-for- sale Financial Assets Cash Flow Hedges Reserve Total $ (1,240) $ - $ - $ (1,240) (13,549) - - (13,549) (404,307) - - (404,307) $ 4,125,097 $ 139,072 $ (11,989) $ 4,252,180 (Concluded)

The exchange differences arising on translation of foreign operation’s net assets from its functional currency to the Parent Company’s presentation currency are recognized directly in other comprehensive income and also accumulated in the foreign currency translation reserve.

Unrealized gain/loss on available-for-sale financial assets represents the cumulative gains or losses arising from the fair value measurement on available-for-sale financial assets that are recognized in other comprehensive income. When those available-for-sale financial assets have been disposed of or are determined to be impaired subsequently, the related cumulative gains or losses in other comprehensive income are reclassified to profit or loss.

The cash flow hedges reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of the hedging instruments entered into as cash flow hedges. The cumulative gain or loss arising on changes in fair value of the hedging instruments that are recognized and accumulated in cash flow hedges reserve will be reclassified to profit or loss only when the hedge transaction affects profit or loss.

e. Non-controlling interests

Balance at January 1 Attributable to non-controlling interests: Share of profit (loss) for the year Exchange difference arising on translation of foreign entities Unrealized gain (loss) on available-for-sale financial assets Remeasurement on define benefit plans Related income tax Decrease in non-controlling interests Balance at December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2015 $ 4,198,430 89,933 (50,813) (88) 323 (2,189) (540,514) $ 3,695,082	2014 $ 6,209,747 (783,816) 119,804 233 8,785 (21,860) (1,334,463) $ 4,198,430

The Group recognized a decrease in non-controlling interests for the years ended December 31, 2015 and 2014 because of the attribution of cash dividends to non-controlling interests, the effect of the acquisition and deconsolidation of subsidiary and acquisition of non-controlling interests in subsidiaries.

f. Treasury shares

Unit: In Thousands of Shares

	Number of	Increase	Decrease	Number of
	Shares at	During the	During the	Shares at
Purpose of Buyback	January 1	Period	Period	December 31
For the year ended
December 31, 2015
Shares held by subsidiaries	26,575	133	-	26,708
Shares buyback for cancellation	-	22,787	22,787	-
	26,575	22,920	22,787	26,708
For the year ended
December 31, 2014
Shares held by subsidiaries	28,118	132	1,675	26,575

The Parent Company’s shares held by its subsidiaries at the end of the reporting periods were as follows:

Name of Subsidiary Number of Shares Held (In Thousands) December 31, 2015 Lite-On Capital Inc. 15,041 LTC International Ltd. 6,969 Yet Foundate Ltd. 2,260 Lite-On Electronics Co., Ltd. 2,438 December 31, 2014 Lite-On Capital Inc. 14,966 LTC International Ltd. 6,935 Yet Foundate Ltd. 2,248 Lite-On Electronics Co., Ltd. 2,426	Carrying Amount Market Price $ 718,857 $ 479,049 297,469 221,759 126,881 71,820 105,515 77,491 $ 1,248,722 $ 850,119 $ 718,857 $ 544,761 297,469 272,328 126,881 95,922 105,515 103,497 $ 1,248,722 $ 1,016,508

On July 20, 2015, the Parent Company’s Board of Directors approved the repurchase of up to 100,000 thousand shares listed on the Taiwan Stock Exchange between July 21, 2015 and September 20, 2015, with the buyback price ranging from $25.34 to $53.97. By the end of the repurchase period, the Parent Company had bought back 22,787 thousand shares for $706,679 thousand. The Parent Company has already registered with the Ministry of Economic Affairs to cancel those buy-back shares.

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Under the Securities and Exchange Act, the Parent Company shall neither pledge treasury shares nor exercise shareholders’ rights on these shares, such as rights to dividends and to vote. The subsidiaries holding treasury shares, however, retain shareholders’ rights, except the rights to participate in any share issuance for cash and to vote.

The applicable tax rate used above is the corporate tax rate of 17% payable by the Group entities based in the ROC. Tax rates used by other group entities operating in other jurisdictions are based on the tax laws in those jurisdictions.

As the status of 2016 appropriations of earnings is uncertain, the potential income tax consequences of 2015 unappropriated earnings are not reliably determinable.

25. REVENUE

b. Income tax recognized in other comprehensive income

REVENUE
Revenue from the sale of goods Rental income from property Solar power	For the Year Ended December 31
		2015 $ 216,736,589 125,260 66,885 $ 216,928,734	2014 $ 230,418,781 117,047 96,146 $ 230,631,974

For segment revenue information, refer to Note 39.

26. INCOME TAX

a. Major components of tax expense (income) recognized in profit or loss

Current income tax expense (income) Current tax expense recognized in the current year Adjustment for prior years’ tax Deferred tax The origination and reversal of temporary differences Investment tax credits and loss carryforward Income tax expense recognized in profit or loss	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2015 $ 2,456,956 (149,166) 2,307,790 386,019 - 386,019 $ 2,693,809	2014 $ 2,951,611 (72,204) 2,879,407 (895,493) 86,966 (808,527) $ 2,070,880

A reconciliation of income before income tax and income tax expense recognized in profit or loss was as follows:

ppp g , 2015 unappropriated earnings are not reliably determinable. Income tax recognized in other comprehensive income			q
Deferred tax Income tax recognized in other comprehensive income (loss) Translation of foreign operations Remeasurement on defined benefit plans Share of other comprehensive income of associates	For the Year Ended		December 31
		2015 $ 128,956 15,604 1,222 $ 145,782	2014 $ (424,538) (8,647) (137) $ (433,322)

c. Deferred income tax

The analysis of deferred income tax in the Group only assets was as follows:

Temporary differences Investment accounted for using equity method Unrealized loss and expense Impairment loss on assets Accrued warranty expense Unrealized loss on inventories Operating loss carryforward Net defined benefit liability Unrealized sales profit Accumulated compensated absences Others		December 31	December 31
		2015 $ 1,263,354 628,295 351,520 234,193 235,390 110,354 70,007 39,113 13,918 218,654 $ 3,164,798	2014 $ 1,305,046 565,528 325,877 236,222 225,978 112,478 59,309 40,835 29,681 204,512 $ 3,105,466

For the Year Ended December 31

Income before Income tax Income tax expense calculated at the statutory rate Nondeductible items in determining taxable income Tax-exempt income Additional income tax on unappropriated earnings The origination and reversal of temporary differences Adjustment for prior years’ tax Income tax expense recognized in profit or loss	2015 $ 10,006,641 $ 2,523,852 439,317 (597,222) 91,009 386,019 (149,166) $ 2,693,809	2014 $ 7,747,872 $ 2,105,099 857,088 (220,112) 209,536 (808,527) (72,204) $ 2,070,880

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2015 Temporary differences Investment accounted for using equity method Unrealized loss and expense Impairment loss on assets Accrued warranty expense Unrealized loss on inventories Operating loss carryforward Net defined benefit liability Unrealized sales profit Accumulated compensated absences Others 2014 Investment tax credits Temporary differences Investment accounted for using equity method Unrealized loss and expense Impairment loss on assets Accrued warranty expense Unrealized loss on inventories Operating loss carryforward Net defined benefit liability Unrealized sales profit Accumulated compensated absences Available-for-sale financial assets Others	Opening Balance Recognized in Profit (Loss) Recognized in Other Comprehensive Income (Loss) $ 1,305,046 $ (53,741 ) $ - 565,528 80,908 - 325,877 33,054 - 236,222 (2,616 ) - 225,978 12,132 - 112,478 (2,738 ) - 59,309 (5,575 ) 16,826 40,835 (2,220 ) - 29,681 (20,319 ) - 204,512 15,386 - $ 3,105,466 $ 54,271 $ 16,826 $ 48,324 $ (48,324 ) $ - 522,830 716,142 59,819 475,000 89,804 - 298,231 27,425 - 262,069 (25,639 ) - 151,972 73,414 - 149,223 (38,642 ) - 39,556 28,388 (8,647 ) 51,236 (10,318 ) - 8,204 21,477 - 4,771 (4,771 ) - 193,054 11,366 - $ 2,204,470 $ 840,322 $ 51,172	Exchange Differences $ 12,049 (18,141 ) (7,411 ) 587 (2,720 ) 614 (553 ) 498 4,556 (1,244) $ (11,765) $ - 6,255 724 221 (208 ) 592 1,897 12 (83 ) - - 92 $ 9,502	Closing Balance $ 1,263,354 628,295 351,520 234,193 235,390 110,354 70,007 39,113 13,918 218,654
			$ 3,164,798
			$ - 1,305,046 565,528 325,877 236,222 225,978 112,478 59,309 40,835 29,681 - 204,512
			$ 3,105,466

2014 Temporary differences Investment accounted for using equity method Unrealized amortization of goodwill Land value increment tax Others	Opening Balance Recognized in Profit (Loss) Recognized in Other Comprehensive Income (Loss) $ 2,080,163 $ 56,452 $ 484,494 334,048 19,760 - 239,693 - - 67,752 (44,417) - $ 2,721,656 $ 31,795 $ 484,494	Exchange Differences Closing Balance $ (6,445 ) $ 2,614,664 - 353,808 - 239,693 (1,708) 21,627 $ (8,153) $ 3,229,792 (Concluded)

d. As of December 31, 2015 and 2014, the aggregate deductible temporary differences for which no deferred income tax assets have been recognized amounted to $1,103,742 thousand and $530,132 thousand, respectively.
e. Integrated income tax

thousand, respectively. Integrated income tax		,, ,	,, ,
Unappropriated earnings Unappropriated earnings generated before January 1, 1998 Unappropriated earnings generated on and after January 1, 1998 Imputation credits accounts		December 31
		2015 $ 2,215 13,008,858 $ 13,011,073 $ 1,485,076	2014 $ 2,215 11,430,326 $ 11,432,541 $ 1,308,623

The analysis of deferred income tax in the Group only liabilities was as follows:

December 31 2015 2014 Temporary differences Investment accounted for using equity method $ 2,905,065 $ 2,614,664 Unrealized amortization of goodwill 353,808 353,808 Land value increment tax 239,693 239,693 Others 32,998 21,627 $ 3,531,564 $ 3,229,792 Opening Balance Recognized in Profit (Loss) Recognized in Other Comprehensive Income (Loss) Exchange Differences Closing Balance 2015 Temporary differences Investment accounted for using equity method $ 2,614,664 $ 428,842 $ (128,956 ) $ (9,485 ) $ 2,905,065 Unrealized amortization of goodwill 353,808 - - - 353,808 Land value increment tax 239,693 - - - 239,693 Others 21,627 11,448 - (77) 32,998 $ 3,229,792 $ 440,290 $ (128,956) $ (9,562) $ 3,531,564 (Continued)		December 31

The estimated and actual creditable ratio for distribution of earnings of 2015 and 2014 were 11.41% and 11.18%, respectively.

According to the amendments to the Income Tax Law Article 66-6, effective on January 1, 2015, the creditable ratio for ROC resident shareholders has been halved. In addition, according to legal interpretation No. 10204562810 announced by the Taxation Administration of the Ministry of Finance, when calculating imputation credits in the year of first-time adoption of IFRSs, the cumulative retained earnings include the net increase or net decrease in retained earnings arising from first-time adoption of IFRSs.

Under the Income Tax Law, for distribution of earnings generated after January 1, 1998, the imputation credits allocated to ROC resident shareholders of the Parent Company was calculated based on the creditable ratio as of the date of dividend distribution. The actual imputation credits allocated to shareholders of the Parent Company was based on the balance of the Imputation Credit Accounts (ICA) as of the date of dividend distribution. Therefore, the expected creditable ratio for the 2015 earnings may differ from the actual creditable ratio to be used in allocating imputation credits to the shareholders.

f. Income tax assessments

The tax returns of Parent Company through all years, except 2012 to 2014, have been assessed by the tax authorities. The Parent Company disagreed with the tax authorities’ assessment of 2013 tax return and applied for a reexamination. Nevertheless, to be conservative, the Parent Company provided for the possible income tax.

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28. ADDITIONAL INFORMATION ON EXPENSES

27. EARNINGS PER SHARE

EARNINGS PER SHARE
Basic earnings per share Diluted earnings per share	For	Unit: NT$ Per Share the Year Ended December 31
		2015 $ 3.11 $ 3.07	2014 $ 2.78 $ 2.75

The earnings and weighted average number of common shares outstanding in the computation of earnings per share from continuing operations were as follows:

2015
Basic EPS
The net income of common shareholders

Effect of dilutive potential common stock
Bonus issue to employees or employee
remuneration

Diluted EPS
The net income of common shareholders plus
the effect of potential dilutive common stock
2014
Basic EPS
The net income of common shareholders

Effect of dilutive potential common stock
Bonus issue to employees or employee
remuneration

Diluted EPS
The net income of common shareholders plus
the effect of potential dilutive common stock

Amounts
(Numerator)
Shares
(Denominator)
(Thousands)
Earnings
Per Share
(NT$)
$ 7,222,899
2,320,208
$ 3.11

34,377
$ 7,222,899
2,354,585
$ 3.07
$ 6,460,808
2,323,511
$ 2.78
-

27,413
$ 6,460,808
2,350,924
$ 2.75

The weighted average number of shares outstanding used for the earnings per share computation was adjusted retroactively for the issuance of bonus shares on August 16, 2015. This adjustment caused the basic and diluted after-tax earnings per share for the year ended December 31, 2014 to decrease from $2.80 to $2.76 and from $2.78 to $2.75, respectively.

ADDITIONAL INFORMATION ON EXPENSES
a. Depreciation and amortization Property, plant and equipment Investment property Intangible assets An analysis of deprecation by function Recognized in cost of revenue Recognized in operating expenses An analysis of amortization by function Recognized in cost of revenue Recognized in operating expenses d. Employee benefit expenses Post-employment benefits Defined contribution plans Defined benefit plans (Note 23) Termination benefits Other employee benefits Employee benefit expenses summarized by function Recognized in cost of revenue Recognized in operating expenses	For the Year Ended December 31
		2015 $ 6,713,295 32,835 534,128 $ 7,280,258 $ 5,873,561 872,569 $ 6,746,130 $ 52,404 481,724 $ 534,128 $ 722,054 14,535 736,589 212,304 26,043,612 $ 26,992,505 $ 17,263,079 9,729,426 $ 26,992,505	2014 $ 7,108,539 - 568,508 $ 7,677,047 $ 6,078,049 1,030,490 $ 7,108,539 $ 69,585 498,923 $ 568,508 $ 591,495 9,871 601,366 30,357 25,216,163 $ 25,847,886 $ 15,912,346 9,935,540 $ 25,847,886

Since the Parent Company is allowed to settle the bonuses or remuneration paid to employees in cash or shares, the Parent Company presumed that the entire amount of the bonus or remuneration would be settled in shares and the resulting potential shares were included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. The dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

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To be in compliance with the Company Act as amended in May 2015, the proposed amended Articles of Incorporation of the Company stipulate to distribute employees’ compensation and remuneration to directors at a certain percentage of net profit before income tax, employees’ compensation, and remuneration to directors. The employees’ compensation and remuneration to directors for the year ended December 31, 2015 have been approved by the Parent Company’s board of directors on March 25, 2016 and are subject to the resolution and adoption of the amendments to the Company’s Articles of Incorporation by the shareholders in their meeting to be held on June 24, 2016, and in addition thereto a report of such distribution shall be submitted to the shareholders' meeting. The details were as follows:

p follows:	g.
Employees’compensation Remuneration to directors	For the Year Ended December 31, 2015
	Cash Share $ 858,514 $ 163,526 61,395 -

The 4,264 thousand shares for 2015 were determined by dividing the amount of share compensation resolved in 2016 by $38.35, the closing price of the shares on the day immediately preceding the Parent Company’s board of directors’ meeting.

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

The appropriations of bonuses to employees and remuneration to directors for 2014 and 2013, which were been approved in the shareholders’ meetings on June 24, 2015 and June 19, 2014, respectively, were as follows:

pp were as follows:	g , , , py,	g , , , py,
Bonus to employees Remuneration of directors	For the Year Ended December 31
	2014 Cash Dividends Share Dividends $ 768,033 $ 146,292 54,924 -	2013
		Cash Dividends Share Dividends $ 997,212 $ 189,945 70,039 -

The 4,333 thousand shares for 2014 was determined by dividing the amount of share bonus approved in 2015 by the closing price of $33.76 (after considering the effect of cash and stock dividends) on the day immediately preceding the shareholders’ meeting.

29. ACQUISITION OF SUBSIDIARIES

a. Subsidiaries acquired

			Proportion of
			Voting Equity	Consideration
		Date of	Interests	Transferred
	Principal Activity	Acquisition	Acquired (%)		(Note)
LarView	Manufacture of optical	April 2014	83.33	$	600,000
Technologies	instruments, general
Corp.	Instruments, computers
	and peripherals.
Power Innovations	Development, design and	June 2014	95.25		424,174
International	manufacture of power
Inc.	control equipment and
	energy management.
Five Dimension	Development, manufacture	November 2014	69.94		61,798
Co., Ltd	and sale of cell phone and
	camera lens modules
				$	1,085,972

Note: Including fair value of the originally held equity of LarView Technologies Corp. at the acquisition date and fair value of non-controlling interests.

The Parent Company acquired 83.33% equity of LarView Technologies Corp. not only to upgrade its capability in the automated processing of camera modules but also to expand the market for this product. Since the Parent Company’s subsidiary, Lite-On Capital Corp., already had a 16.67% equity in LarView, the Group’s equity in LarView became 100% after the acquisition. To integrate its overall resources and enhance the efficiency of operations, the Parent Company had a short-form merger - in accordance with Article 19 of the Business Mergers and Acquisitions Act - with LarView Technologies Corp. on September 1, 2014. The Parent Company was the survivor entity in all of these mergers.

Lite-On Technology USA, Inc., a subsidiary of the Parent Company, acquired 95.25% equity in Power Innovations International Inc. to enhance power system projects and development of uninterruptible power system.

Lite-On Capital Corp., a subsidiary of the Parent Company, acquired 69.94% equity in Five Dimension Co., Ltd to enhance research and development capabilities in professional camera and maintain its market competiveness.

The 4,085 thousand shares for 2013 was determined by dividing the amount of share bonus resolved in 2014 by the closing price of $46.50 (after considering the effect of cash and stock dividends) on the day immediately preceding the shareholders’ meeting.

There was no difference between the amounts of the bonus to employees and the remuneration to directors approved in the shareholders’ meeting on June 24, 2015 and June 19, 2014 and the amounts recognized in the Parent Company’s separate financial statements for the years ended December 31, 2014 and 2013, respectively.

Information on the bonus to employees and directors proposed by the Company’s board of directors is available on the Market Observation Post System website of the Taiwan Stock Exchange.

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b. Considerations transferred

Considerations transferred
LarView Technologies Corp. Power Innovations International Inc. Cash $ 500,000 $ 417,237 Fair value of the originally held equity of LarView Technologies Corp. at the acquisition date (recorded as available-for-sale financial assets - noncurrent) 100,000 - Fair value of non-controlling interests - 6,937 $ 600,000 $ 424,174	Five Dimension Co., Ltd $ 58,604 - 3,194 $ 61,798	Total $ 975,841 100,000 10,131
		$ 1,085,972

d. Goodwill arising on acquisition

LarView Technologies Corp. Power Innovations International Inc. Consideration transferred $ 600,000 $ 424,174 Less: Fair value of identifiable net assets acquired (Note) (231,538) (146,037) Goodwill arising on acquisition$ 368,462 $ 278,137	Five Dimension Co., Ltd $ 61,798 (10,627) $ 51,171	Total $ 1,085,972 (388,202) $ 697,770

Note: The fair value of identifiable net assets is a provisional amount measured at the acquisition date of Power Innovations International Inc. However, the Group reduced by 65,002 thousand of the fair value of identifiable net assets and increased the amount of goodwill recognized on the acquisition in June 2014 because of the acquisition of relevant information in the second quarter of 2015.

c. Assets acquired and liabilities assumed at the date of acquisition

e. Net cash outflow on acquisition of subsidiaries

LarView Technologies Corp. Power Innovations International Inc. Current assets Cash and cash equivalents $ 41,259 $ 87,390 Trade and other receivables 145,720 38,680 Inventories, net 152,159 49,644 Other 5,138 2,542 Non-current assets Property, plant and equipment 265,250 30,280 Investments accounted for using equity method 4,439 - Intangible assets 47,205 1,093 Refundable deposits 1,000 1,020 Other 13,798 - Current liabilities Short-term borrowings (125,708) (955) Trade and other payables (246,654) (35,836) Advances received (14,068) (13,990) Current portion of long-term borrowings - (2,147) Finance lease payables - (142) Non-current liabilities Long-term borrowings (58,000) (11,542) $ 231,538 $ 146,037	Five Dimension Co., Ltd $ 35,818 142 - 1,846 330 158 540 1,509 564 - (1,250) - (2,878) - (26,152) $ 10,627	Total $ 164,467 184,542 201,803 9,526 295,860 4,597 48,838 3,529 14,362 (126,663) (283,740) (28,058) (5,025) (142) (95,694) $ 388,202

q q quarter of 2015. Net cash outflow on acquisition of subsidiaries
	For the Year
	Ended
	December 31,
	2014
Consideration paid in cash	$ 975,841
Cash and cash equivalents acquired	(164,467)
	$ 811,374

f. Impact of acquisitions on the results of the Group

The acquirees’ operating results up to the acquisition date included in the consolidated statements of comprehensive income were as follows:

q pg p q comprehensive income were as follows:
	For the Year
	Ended
	December 31,
	2014
Revenue
LarView Technologies Corp.	$ 556,013
Power Innovations International Inc.	211,591
Five Dimension Co., Ltd	23
	$ 767,627
Profit (loss)
LarView Technologies Corp.	$ (265,299)
Power Innovations International Inc.	37,433
Five Dimension Co., Ltd	(2,951)
	$ (230,817)

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Had these business combinations been in effect at the beginning of the reporting period, the Group’s operating revenue would have been $230,514,143 thousand, and its profit would have been $7,718,208 thousand for the year ended December 31, 2014.

30. DECONSOLIDATION OF SUBSIDIARY

On March 28, 2014, the Group lost its power to govern the financial and operating policies of Logah Technology Corp. because of the loss of power to cast the majority of votes at meetings of the Board of Directors; thus, the relevant assets, liabilities and non-controlling interests had been derecognized.

d. Net cash outflow on deconsolidation of subsidiary

Net cash outflow on deconsolidation of subsidiary
	For the Year
	Ended
	December 31,
	2014
The balance of cash and cash equivalents deconsolidated	$ 902,385

31. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS

a. Consideration received from the derecognition

The Company did not receive any consideration in the deconsolidation of Logah Technology Corp.

b. Analysis of asset and liabilities on the date control was lost

	March 28, 2014	March 28, 2014
Current assets
Cash and cash equivalents	$	902,385
Trade receivables		27,350
Inventories		1,575
Other		56,537
Non-current assets
Property, plant and equipment		363,030
Other		17,546
Current liabilities
Borrowings		(91,260)
Payables		(19,764)
Others		(6,281)
Non-current liabilities
Deferred tax liabilities		(12,793)
Others		(6)
Net assets deconsolidated	$	1,238,319

In January to June 2014, the Parent Company acquired an additional 0.87% equity interest in Lite-On IT Corporation, and increased its continuing interest from 99.13% to 100%.

In April 2014, the Parent Company acquired an additional 17.74% equity interest in Lite-On Automotive Corp., and increased its continuing interest from 82.26% to 100%.

The above transactions were accounted as equity transactions, since the Group did not cease to have control over these subsidiaries.

Cash consideration paid The proportionate share of the carrying amount of the net assets of the subsidiary transferred from non-controlling interests Differences arising from equity transaction (reductions of unappropriated earnings)		For the Year Ended December 31, 2014	For the Year Ended December 31, 2014
		Lite-On Automotive Corporation $ 808,800 (297,970) $ 510,830	Lite-On IT Corporation $ 204,368 (171,716) $ 32,652	Total $ 1,013,168 (469,686) $ 543,482

32. CAPITAL MANAGEMENT

c. Gain on deconsolidation of subsidiary

	For the Year	For the Year
		Ended
	December 31,
		2014
Fair value of interest retained	$	490,624
Add: Accumulated exchange differences reclassified to profit
or loss after deconsolidation of subsidiary		13,549
Less: Carrying amount of interest retained
Net assets deconsolidated		1,238,319
Non-controlling interests		(747,537)
		490,782
Less: Goodwill of deconsolidated subsidiary		5,043
Gain on deconsolidation (recorded as nonoperating income and
expense - other income)	$	8,348

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximizing the return to shareholders through the optimization of the debt and equity balance.

The Group’s capital management system aims to ensure that the necessary financial resources and operating plan are enough to meet the next 12 months’ requirements for working capital, capital expenditures, research and development expenses, debt repayment, dividend expenses and other need.

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33. FINANCIAL INSTRUMENTS

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

For certain financial instruments-including notes receivable, trade receivables, trade receivables - related parties, other receivables, other receivables - related parties, debt investments with no active market, short-term borrowings, notes payable, trade payables, trade payables - related parties, other payables, other payables - related parties, and finance lease payables-the Group’s management considers the carrying amounts of these financial instruments recognized in the financial statements as approximating their fair values. For long-term loans (including their current portion) with floating rates, the carrying amounts of long-term loans are used as basis to estimate their fair value.

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

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable:

Level 1 fair value measurements are those derived from quoted prices in active markets for identical assets or liabilities;
Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

1) Fair value hierarchy

December 31, 2015

Financial assets at FVTPL Derivative financial assets Financial liabilities at FVTPL Derivative financial liabilities Available-for-sale financial assets Securities listed in ROC - equity securities Securities listed in other countries - equity securities Unlisted securities - ROC - equity securities Unlisted securities - other countries - equity securities Mutual funds Emerging market stocks	Level 1 $ - $ - $ 316,426 11,546 - - - - $ 327,972	Level 2 $ 53,211 $ 55,945 $ - - - - 53,178 178,716 $ 231,894	Level 3 $ - $ - $ - - 83,923 26,539 - - $ 110,462	Total $ 53,211 $ 55,945 $ 316,426 11,546 83,923 26,539 53,178 178,716 $ 670,328

December 31, 2014

December 31, 2014
Financial assets at FVTPL Derivative financial assets Financial liabilities at FVTPL Derivative financial liabilities Available-for-sale financial assets Securities listed in ROC - equity securities Securities listed in other countries - equity securities Unlisted securities - ROC - equity securities Unlisted securities - other countries - equity securities Mutual funds Emerging market stocks	Level 1 $ - $ - $ 626,191 11,486 - - - - $ 637,677	Level 2 $ 13,111 $ 38,408 $ - - - - 143,434 178,716 $ 322,150	Level 3 $ - $ - $ - - 144,617 221,811 - - $ 366,428	Total $ 13,111
				$ 38,408
				$ 626,191 11,486 144,617 221,811 143,434 178,716
				$ 1,326,255

There were no transfers between Levels 1 and 2 in the current and prior periods.

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

December 31, 2015 Balance at January 1, 2015 Total gains or losses In profit or loss In other comprehensive income Additions Disposals Balance at December 31, 2015 December 31, 2014 Balance at January 1, 2014 Total gains or losses In profit or loss In other comprehensive income Additions Disposals Transfers out of Level 3 Balance at December 31, 2014	Investments on Equity Instruments
	Unlisted Quotes $ 366,428 (124,667) 1,598 33,627 (166,524) $ 110,462 $ 613,534 (176,965) 4,209 26,150 (500) (100,000) $ 366,428

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

Financial Instruments
Financial assets at FVTPL -
forward exchange contracts
Financial assets at FVTPL -
Cross-currency swap
contracts
Mutual funds
Emerging market shares

Valuation Techniques and Inputs

Estimation of future cash flows using observable forward
exchange rates at the end of the reporting period and contract
forward rates, discounted at a rate that reflects the credit risk
of various counterparties.
Estimation of fair value of a currency swap contract is based on
its principal and interest rate on mutual agreement and the
suitable discount rate that reflects the credit risk of various
counterparties at the end of the reporting period.
Using the observable similar market average price or the price of
the same kind of tools provided by the mutual fund
management company.
Using the recent emerging market share price of similar
emerging market shares of investee companies and
considering the adjustment of all the information on the
performance and operation of the emerging company
available from trading date to measuring date.

4) Valuation techniques and inputs applied for the purpose of measuring Level 3 fair value measurement

The fair values of unlisted equity securities - ROC and other countries were determined using the income approach. In this approach, the discounted cash flow method was used to capture the present value of the expected economic benefits from these investments. According to the discounted cash flow analysis and observable financial market average prices or with the same kind of tool to be estimated, the use of the discount rate and the parameters can refer to Reuters news agency or Bloomberg agency or other financial institutions with essentially the same conditions and characteristics of the interest rate swap offer financial products whose features including the remaining contract terms of fixed interest rates, the payment of principal, payment of currency, and etc. All the information can be obtained by the Group.

c. Categories of financial instruments

Financial assets
Fair value through profit or loss (FVTPL)
Derivative instruments

Loans and receivables (1)

Available-for-sale financial assets
Financial liabilities
Fair value through profit or loss (FVTPL)
Derivative instruments
Derivative instruments in designated hedge accounting
relationships
Amortized cost
Short-term borrowings
Long-term loans (including current portion of long-term debts)
Payables (2)

December 31

2015
2014
$ 53,211 $ 13,111
117,944,438 119,503,863
670,328
1,326,255
55,945
38,408
-
11,989
17,670,878
22,911,114

21,151,871
21,923,149
80,392,074
82,697,461

1) The balances included loans and receivables measured at amortized cost, which comprise cash, debt investments with no active market, notes receivable, trade receivables, trade receivables - inter, other receivables and other receivables - inter.
2) The balances included financial liabilities measured at amortized cost, which comprise notes payable, trade payables, trade payables - inter, other payables and other payables - inter.
d. Financial risk management objectives and policies

The Group’s major financial instruments include equity investments, trade receivable, trade payables, and borrowings. The Group’s Corporate Treasury function provides services to the business, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Group sought to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives was governed by the Group’s policies approved by the board of directors, which provided written principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits was reviewed by the internal auditors on a continuous basis. The Group did not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

1) Market risk

The Group’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see (a) below) and interest rates (see (b) below). The Group entered into a variety of derivative financial instruments to manage its exposure to foreign currency risk and interest rate risk, including:

a) Forward foreign exchange contracts to hedge the exchange rate risk arising on the export; b) Interest rate swaps to mitigate the risk of rising interest rates.

There had been no change to the Group’s exposure to market risks or the manner in which these risks were managed and measured.

a) Foreign currency risk

The Group’s had foreign currency sales and purchases, which exposed the Group to foreign currency risk. Exchange rate exposures were managed within approved policy parameters utilizing forward foreign exchange contracts.

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period (Refer to Note 37).

The Group required all its group entities to use foreign exchange forward contracts to eliminate currency exposure. It is the Group’s policy to negotiate the terms of the hedge derivatives to match the terms of the hedged item to maximize hedge effectiveness.

Sensitivity analysis

The Group was mainly exposed to the U.S. dollar.

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The following table details the Group’s sensitivity to a 5% increase and decrease in New Taiwan dollars (the functional currency) against the relevant foreign currencies. The sensitivity analysis included only outstanding foreign currency denominated monetary items. A positive number below indicates an increase in pre-tax profit and other equity associated with New Taiwan dollars strengthen 5% against the relevant currency. For a 5% weakening of New Taiwan dollars against the relevant currency, there would be an equal and opposite impact on pre-tax profit and other equity and the balances below would be negative.

Profit or loss	Currency USD Impact	Currency USD Impact	Currency USD Impact
	For the Year Ended December 31
		2015 $ 9,064	2014 $ 5,267

b) Interest rate risk

The Group was exposed to interest rate risk because entities in the Group borrowed funds at both fixed and floating interest rates. The risk is managed by the Group by maintaining an appropriate mix of fixed and floating rate borrowings, and using interest rate swap contracts and forward interest rate contracts. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite, ensuring the most cost - effective hedging strategies are applied.

The carrying amount of the Group’s financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:

Fair value interest rate risk Financial assets (i) Financial liabilities (ii) Cash flow interest rate risk Financial assets (iii) Financial liabilities (iv)	December 31 2015 2014 $ 28,172,474 $ 29,221,581 15,645,260 21,140,609 36,787,305 35,292,046 23,278,388 23,880,607

The Parent Company was also exposed to cash flow interest rate risk in relation to variable-rate bank borrowings and pay-fixed/receive-floating interest rate swaps. The Parent Company’s cash flow interest rate risk was mainly concentrated in the fluctuation of the average rate for 90-day notes in Taiwan’s secondary market arising from the Group’s New Taiwan dollars denominated borrowings.

Sensitivity analysis

The sensitivity analyses below were determined based on the Group’s exposure to interest rates for both derivatives and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year.

If interest rates had been 25 basis points higher and all other variables were held constant, the Group’s pre-tax profit for the years ended December 31, 2015 and 2014 would increase by $33,772 thousand and decrease $28,529 thousand.

c) Other price risk

The Group was exposed to equity price risk through its investments in listed equity securities. Equity investments are held for strategic rather than trading purposes. The Group does not actively trade these investments.

Sensitivity analysis

The sensitivity analyses below were determined based on the exposure to equity price risks at the end of the reporting period.

If equity prices had been 10% higher, the pre-tax other comprehensive income for the years ended December 31, 2015 and 2014 would increase by $32,797 thousand and $63,768 thousand as a result of the changes in fair value of available-for-sale financial assets.

2) Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Group.

i. The balances included time deposit and debt investments with no active market.

ii. The balances included financial liabilities exposed to fair value risk from interest rate fluctuation.

iii. The balances included demand deposits.

iv. The balances included financial liabilities exposed to cash flow risk from interest rate fluctuation.

The Parent Company aims to keep borrowings at variable rates. In order to achieve this result, the Parent Company entered into interest rate swaps to hedge its exposures to changes in fair values of the borrowings. The critical terms of these interest rate swaps are similar to those of hedged borrowings. These interest rate swaps were designated as effective hedging instruments and hedge accounting is used.

The Group is exposed to credit risk from trade receivables, deposits, and other financial instruments. Credit risk on business-related exposures is managed separately from that on financial-related exposures.

a) Business related credit risk

To maintain the quality of receivables, the Group has established operating procedures to manage credit risk.

For individual customers, risk factors considered include the customer’s financial position, credit rating agency rating, the Group’s internal credit rating, and transaction history as well as current economic conditions that may affect the customer’s ability to pay. The Group also has the right to use some credit protection enhancement tools, such as requiring advance payments, to reduce the credit risks involving certain customers.

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b) Financial related credit risk

Bank deposits and other financial instruments are credit risk sources required by the Group’s Department of Finance Department to be measured and monitored. However, since the Group’s counter-parties are all reputable financial institutions and government agencies, there is no significant financial credit risk.

3) Liquidity risk

The objective of liquidity risk management, the department is required to maintain operating cash and cash equivalents, in order to ensure that the Group has sufficient financial flexibility.

The table below summarizes the maturity profile of the Group’s non-derivative financial liabilities based on contractual undiscounted payments.

December 31, 2015

Weighted Average Effective Interest Rate (%) Non-derivative financial liabilities Non-interest bearing - Finance lease liabilities 2.36-7.11 Variable interest rate liabilities 0.4-2.375 Fixed interest rate liabilities 0.8565-4.4	On Demand or Less than 1 Year $ 80,392,074 95,501 6,975,190 15,491,806 $ 102954571	1-3 Years Over 3 Years to 5 Years $ 90,022 $ - 5,398 - 16,289,583 - 48,077 4,478 $ 16433080 $ 4478	5+ Years $ 990 - 13,615 -
			$ 14605

December 31, 2014

Weighted Average Effective Interest Rate (%) Non-derivative financial liabilities Non-interest bearing - Finance lease liabilities 2.36-7.11 Variable interest rate liabilities 0.4-1.6786 Fixed interest rate liabilities 0.82-4.4	On Demand or Less than 1 Year $ 82,697,461 85,232 10,415,998 20,854,105 $ 114,052,796	1-3 Years Over 3 Years to 5 Years $ 79,976 $ - 101,721 - 7,691,404 5,760,000 79,907 19,644 $ 7,953,008 $ 5,779,644	5+ Years $ 895 - 13,205 -
			$ 14,100

The table below summarizes the maturity profile of the Group’s derivative financial instruments based on contractual undiscounted payments.

December 31, 2015

On Demand or Less than 1 Over 3 Years Year 1-3 Years to 5 Years 5+ Years Forward exchange contracts Inflows $ 7,387,884 $ - $ - $ - Outflows (7,410,193) - - - (22,309) - - - (Continued)

On Demand or Less than 1 Year Currency swap contracts Inflows $ 3,235,000 Outflows (3,212,900) 22,100 $ (209) December 31, 2014 On Demand or Less than 1 Year Forward exchange contracts Inflows $ 8,508,990 Outflows (8,500,136) 8,854 Currency swap contracts Inflows 671,640 Outflows (666,900) 4,740 $ 13,594	1-3 Years Over 3 Years to 5 Years $ - $ - - - - - $ - $ - 1-3 Years Over 3 Years to 5 Years $ - $ - - - - - - - - - - - $ - $ -	5+ Years $ - - $ - (Concluded) 5+ Years $ - - - - - - $ -

34. TRANSACTIONS WITH RELATED PARTIES

Balances and transactions between the Parent Company and its subsidiaries, which were related parties of the Parent Company, had been eliminated on consolidation and are not disclosed in this note. Besides as disclosed elsewhere in the other notes, details of transactions between the Group and other related parties are disclosed below.

a. Sales of goods

Related parties categories Associates Other related parties	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2015 $ 177,556 1,197 $ 178,753	2014 $ 217,833 3,405 $ 221,238

The Group’s selling prices for Lite-On Semiconductor Corp. for the Group were at cost plus a negotiated profit. Except for this sales arrangement with Lite-On Semiconductor Corp., the sales terms between the Group and its related parties were normal.

Operating lease contracts with related parties were based on market prices and made under normal terms.

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b. Purchases of goods

Purchases of goods
Related parties categories Associates Other related parties	For the Year Ended December 31
		2015 $ 4,796,010 707,559 $ 5,503,569	2014 $ 4,696,060 632,680 $ 5,328,740

The cost of the Group’s purchases from Lite-On Semiconductor Corp. for the years ended December 31, 2015 and 2014 was based on cost plus specific profit. Except for these purchases, the purchase terms between the Group and its related parties were normal.

c. Receivables from related parties

, p p p. terms between the Group and its related parties were normal. Receivables from related parties	p	p, p	p, p
Related parties categories Trade receivable Associates Other related parties Other receivable Associates Other related parties		December 31
		2015 $ 66,243 95 $ 66,338 $ 10,462 19 $ 10,481	2014 $ 72,417 652 $ 73,069 $ 2,850 203 $ 3,053

The outstanding trade receivables from related parties are unsecured. For the years ended December 31, 2015 and 2014, no impairment loss was recognized for trade receivables from related parties.

d. Payables to related parties

Related parties categories Trade payable Associates Other related parties Other payable Associates Other related parties		December 31	December 31
		2015 $ 575,365 281,580 $ 856,945 $ 4 12,937 $ 12,941	2014 $ 677,197 276,469 $ 953,666 $ 738 6,003 $ 6,741

The outstanding trade payables from related parties are unsecured.

e. Operating expense

For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
2015 2014 $ 69,011 $ 61,690 For the Year Ended December 31
2015 2014 $ 5,664 $ 4,053 1,867 1,542 $ 7,531 $ 5,595 For the Year Ended December 31
	2015 $ 577,154 24,453 - $ 601,607	2014 $ 629,048 19,054 14,088 $ 662,190

f. Other revenues

g. Compensation of key management personnel

The remuneration of directors and key executives was determined by the remuneration committee having regard to the performance of individuals and market trends.

35. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY
Pledge-time deposits		December 31
		2015 $ 270,870	2014 $ 78,688

Above assets included the guarantee deposits that had been provided for (a) a government projects (b) the customs agency for shipment clearance in advance of duty payments (c) the tax refund guarantee.

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36. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

a. CMP Consulting Service, Inc., KI, Inc., Aaron Wagner, The Stereo Shop, David Carney, Jr., Tina Corse, Cynthia R. Rall, Richard R. Rall, Aaron Deshaw and Don Cheung filed an antitrust group lawsuit against the Company and its subsidiaries - Philips & Lite-On Digital Solutions Corporation, Philips & Lite-On Digital Solutions USA, Inc. and other companies with related businesses - with a court in California, from October 2009 to September 2010. The Parent Company has assigned lawyers in the United States as its representative in these lawsuits. In September 2015, the Parent Company has reached a settlement with the direct plaintiff group. The lawsuit with indirect plaintiff group is still in progress. The Parent Company already accrued a reasonable amount in case of a loss on this lawsuit and will continue to recognize the losses quarterly on the basis of a reasonable estimation of the lawsuit until the settlement of this lawsuit.
b. In the second quarter of 2013, the Attorney General of the State of Florida filed antitrust lawsuits against the Parent Company and its subsidiaries - Philips & Lite-On Digital Solutions Corporation and Philips & Lite-On Digital Solutions USA, Inc. - as well as other companies with related businesses with the U.S. District Court for the Northern District of California (USDC-NDC). The Parent Company assigned lawyers as its representative in these lawsuits. In the second quarter of 2014, the USDC-NDC allowed the plaintiff to proceed with the lawsuits but dismissed certain parts of these lawsuits. Although the outcome of the proceedings had not been determined, the Parent Company accrued a reasonable amount in case of a loss on this lawsuit and will continue to recognize the losses quarterly at this reasonably estimated amount until the settlement of this lawsuit.
c. In the second quarter of 2013, Dell Inc. and Dell Products L.P. filed a complaint with the United States District Court for Western District of Texas. In the fourth quarter of 2013, Acer Inc., Acer America Corporation, Gateway Inc. and Gateway U.S. Retail, Inc. filed a complaint with the United States District Court for the Northern District of California. In the fourth quarter of 2013, Ingram Micro Inc., and Synnex Corporation filed a complaint with the United States District Court for the Central District of California. In the third quarter of 2015, Alfred H. Siegel, the bankruptcy trustee of Circuit City Stores, Inc. filed a complaint with the United States District Court for the Northern District of California. In the fourth quarter of 2015, Peter Kravitz, the bankruptcy trustee of RadioShack Corporation, filed a complaint with the United States District Court for the Northern District of California. All these complaints constituted an antitrust group lawsuit against the Parent Company and other companies with related businesses. The Parent Company assigned lawyers as its representative in these lawsuits. Although the outcome of the proceedings had not been determined, the Parent Company already accrued a reasonable amount in case of a loss on this lawsuit and will continue to recognize losses quarterly at this reasonably estimated amount until the settlement of this lawsuit.
d. From the second quarter of 2010 to the second quarter of 2014, petitioner Carlos Fogelman filed a motion for authorization to institute class action antitrust proceedings with the Superior Court of Quebec in the district of Montreal. The Fanshawe College of Applied Arts and Technology filed a statement of claim in Ontario court. Neil Godfrey filed a statement of claim with the Superior Court of British Columbia. Donald Woligroski filed a statement of claim in Manitoba court. Cindy Retallick filed a statement of claim in Saskatchewan court. All plaintiffs filed the antitrust group lawsuit against the Company and its subsidiaries - Philips & Lite-On Digital Solutions Corporation, Philips & Lite-On Digital Solutions USA, Inc. and other companies with related businesses. The Parent Company assigned lawyers as its representative in these lawsuits. Although the outcome of the proceedings had not been determined, the Parent Company accrued a reasonable amount in case of a loss on this lawsuit and will continue to recognize the losses quarterly on the basis of a reasonable estimation of the lawsuit until the settlement of this lawsuit.

37. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

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

December 31, 2015

Foreign
Currencies
Exchange Rate
Financial assets
Monetary items
USD
$ 1,084,165
32.775 (USD:NTD)
USD

557,386
6.4766 (USD:CNY)
EUR

10,569
0.9154 (EUR:USD)
HKD

43,873
7.7503 (HKD:USD)
JPY

221,634
120.36 (JPY:USD)
HKD

7,184
4.2289 (HKD:NTD)

Non-monetary items

Investments accounted for using equity
method

USD

1,396
32.775 (USD:NTD)

Financial liabilities

Monetary items

USD

1,078,634
32.775 (USD:NTD)
USD

1,013,643
6.4766 (USD:CNY)
EUR

1,790
7.0751 (EUR:CNY)
JPY

69,550
0.2723 (JPY:NTD)
EUR

485 35.8034 (EUR:NTD)
JPY

45,731
120.36 (JPY:USD)

December 31, 2014
Foreign
Currencies
Exchange Rate
Financial assets
Monetary items
USD
$ 993,000
31.6 (USD:NTD)
USD

628,566
6.1866 (USD:CNY)
EUR

3,477
0.8229 (EUR:USD)
HKD

24,497
7.755 (HKD:USD)

Carrying
Amount
$ 35,533,506

18,268,326

378,415

185,535

60,351

30,382
$ 54,456,515
$ 45,749
$ 35,352,229

33,222,149

64,088

18,938

17,365

12,453
$ 68,687,222
Carrying
Amount
$ 31,378,797

19,862,689

133,519

99,822
(Continued)

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Foreign Currencies Exchange Rate JPY $ 154,927 119.66 (JPY:USD) HKD 2,787 4.0748 (HKD:NTD) Non-monetary items Investments accounted for using equity method USD 316 31.6 (USD:NTD)	Carrying Amount $ 40,916 11,357 $ 51,527,100 $ 9,988

8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Please see Table 6 attached
9) Trading in derivative instruments: Notes 7, 9 and 33 to the financial statements
10) Names, locations, and related information of investees over which the Company exercises significant influence: Please see Table 7 attached
b. Information on investments in mainland China:
1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area. Please see Table 8 attached

Financial liabilities

Monetary items USD 1,209,762 6.1866 (USD:CNY) USD 989,667 31.6 (USD:NTD) EUR 3,961 38.4003 (EUR:NTD) EUR 2,807 7.518 (EUR:CNY) JPY 114,668 119.66 (JPY:USD) JPY 29,990 0.2641 (JPY:NTD)	$ 38,228,484 31,273,464 152,112 107,801 30,284 7,920 $ 69,800,065 (Concluded)

For the years ended December 31, 2015 and 2014 net foreign exchange gains was $123,658 thousand and $58,022 thousand. It is impractical to disclose net foreign exchange gains or losses by each significant foreign currency due to the variety of the foreign currency transactions of the group entities.

2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses: Please see Table 9 attached
c. Intercompany relationships and significant intercompany transactions: Please see Table 9 attached

39. SEGMENT INFORMATION

a. General information

The Group identified the reportable segments based on the managerial reporting information, and the segments by the types of products which included Optoelectronics, Information Technologies, Storage, and Mobile Mechanics and Others. The types of products are described as follows:

1) Optoelectronics: LED Components and Lighting Products, Camera Modules and Automotive Electronics.

38. SEPARATELY DISCLOSED ITEMS

a. Information on significant transactions and information on investees:
1) Financing provided: Please see Table 1 attached
2) Endorsement/guarantee provided: Please see Table 2 attached
3) Marketable securities held (excluding investment in subsidiaries, associates and jointly controlled entities): Please see Table 3 attached
- 2) Information technologies: Products used in Server, Networking Devices, NB, Tablets, DT and Multifunction Peripheral.
- 3) Storage: Optical Disk Drives and Solid State Drives.
- 4) The Group also had Mobile Mechanics and Others operating segments that did not exceed the quantitative threshold. These segments mainly engage in manufacturing and selling of Mechanical Products for Mobile Devices and others.
b. Measurement of segment information
4) Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital: Please see Table 4 attached
5) Acquisition of individual real estate properties at costs of at least NT $300 million or 20% of the paid-in capital: None

The Group uses the income before income tax from operations as the measurement for segment profit and the basis of performance assessment. There was no material differences between the accounting policies of the operating segment and the accounting policies described in Note 4.

6) Disposal of individual real estate properties at prices of at least NT$300 million or 20% of the paid-in capital: None
7) Total purchases from or sales to related parties of at amounting to at least NT$100 million or 20% of the paid-in capital: Please see Table 5 attached

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c. Segment information

The segment information provided to the chief operating decision-maker for the reportable segments is as follows:

g as follows:		p		p	g				p	g
							Mobile
			Information			Mechanics and
	Optoelectronics		Technologies		Storage		Others		Elimination	Total
2015
Sales from external customers	$	53,160,628	$ 105,899,693	$	34,201,009	$	23,667,404	$	-	$ 216,928,734
Sales among segments		1,514,501	1,724,299		14,068		609,444		(3,862,312 )	-
Operating profit (loss)		1,915,800	6,886,653		2,219,191		(1,300,981 )		-	9,720,663
2014
Sales from external customers		60,958,757	103,532,918		38,760,007	$	27,380,292		-	$ 230,631,974
Sales among segments		1,460,397	2,198,233		-		807,138		(4,465,768 )	-
Operating profit (loss)		1,612,663	7,173,364		2,631,152		(3,137,528 )		-	8,279,651

d. Geographic information

Asia America Europe Others	Revenue from External Customers For the Year Ended December 31 2015 2014 $ 151,570,732 $ 167,023,169 41,682,293 39,738,424 23,241,976 23,035,368 433,733 835,013	Revenue from External Customers For the Year Ended December 31 2015 2014 $ 151,570,732 $ 167,023,169 41,682,293 39,738,424 23,241,976 23,035,368 433,733 835,013		Non-current Assets	Non-current Assets
				December 31
		2015 $ 151,570,732 41,682,293 23,241,976 433,733		2015 $ 52,643,046 1,109,369 567,044 -	2014 $ 56,486,000 530,407 413,851 -

2) A reconciliation of reportable segments profit (loss) and income before income tax is provided as follows:

p g p follows:	p	p	p
Reportable segments’ profit Unclassified loss Non-operating income and expenses Profit before income tax	For the Year Ended December 31
		2015 $ 9,720,663 (1,067,840) 1,353,818 $ 10,006,641	2014 $ 8,279,651 (1,153,568) 621,789 $ 7,747,872

3) Segment profit represented the profit before tax earned by each segment without unclassified of headquarter administration costs, share of profits of associates, gain or loss on disposal of investments, dividend income, interest income, gain or loss on disposal of property, plant and equipment, exchange gain or loss, valuation gain or loss on financial instruments, finance costs, impairment loss, other expense and income tax expense. This was the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.

	$ 216,928,734	$ 230,631,974	$ 54,319,459	$ 57,430,258

The geographic information is presented by billing regions. Noncurrent assets include intangible assets, properties, plant and equipment.

e. Information about major customers

Single customers contributed 10% or more to the Group’s revenue were as follows:

Customer A		For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2015	% -		2014
		Amount $ -			Amount $ 24,108,155	% 10.45

There is no customer representing at least 10% of gross sales for the year ended December 31, 2015.

f. Reconciliation information for segment profit (loss)
1) The revenue from external parties reported to the chief operating decision-maker is used the same accounting policies in consistent with in the statement of comprehensive income.

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TABLE 1

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

FINANCING PROVIDED FOR THE YEAR ENDED DECEMBER 31, 2015 (Amounts in Thousands of New Taiwan Dollars)

No.	Financing Company	Counter-party	Financial Statement Account	Related Party	Maximum Balance for the Period	Ending Balance	Amount Actually Drawn	Interest Rate	Nature for Financing (Note 1)	Transaction Amount	Reasons for Financing	Allowance for Bad Debt	Collateral	Collateral	Financing Limits for Each Borrowing Company (Note 2)	Financing Company’s Total Financing Amount Limits (Note 2)
													Item	Value
1	China Bridge (China) Co., Ltd.	Lite-On Opto Technology (Changzhou) Co., Ltd.	Receivables from related parties	Yes	$ 262,560	$ -	$ -	1.0465%	b	$ -	Operating capital	$ -	None	$ -	$ 1,336,475	$ 1,336,475
2	Lite-On Opto Technology (Changzhou) Co., Ltd.	Lite-on Green Technologies (Nanjing) Corporation Changzhou Leotek New Energy Trade Limited	Receivables from related parties Receivables from related parties	Yes Yes	45,868 207,048	- 177,118	- 177,118	4.2% 3.045%-4.2%	b b	- -	Operating capital Operating capital	- -	None None	- -	2,904,295 2,904,295	2,904,295 2,904,295
3	Lite-On Technology (Changzhou) Co., Ltd.	Lite-On Technology (Shanghai) Ltd. Zhuhai Lite-On Mobile Technology Co., Ltd.	Receivables from related parties Receivables from related parties	Yes Yes	606,168 2,548,200	- 1,265,125	- 1,265,125	4.2% 3.57%	b b	- -	Equipment purchase Operating capital	- -	None None	- -	4,181,385 4,181,385	4,181,385 4,181,385
4	Lite-On Electronics (Tianjinn) Co., Ltd.	Lite-On Medical Device (Changzhou) Ltd. Lite-On Technology (Shanghai) Ltd. Lite-On Opto Technology (Guangzhou) Ltd.	Receivables from related parties Receivables from related parties Receivables from related parties	Yes Yes Yes	45,463 555,654 258,810	22,772 - 253,025	22,772 - 253,025	3.22%-4.2% 4.2% 3.57%	b b b	- - -	Operating capital Equipment purchase Operating capital	- - -	None None None	- - -	2,920,513 2,920,513 2,920,513	2,920,513 2,920,513 2,920,513
5	Lite-On Power Technology (Chang Zhou) Co., Ltd.	Lite-On Technology (Shanghai) Ltd.	Receivables from related parties	Yes	706,258	-	-	4.2%	b	-	Equipment purchase	-	None	-	770,086	770,086
6	Lite-On Network Communication (Dongguan) Limited	Silitek Elec. (Dongguan) Co., Ltd.	Receivables from related parties	Yes	201,788	-	-	4.2%	b	-	Operating capital	-	None	-	1,199,489	1,199,489
7	Dongguan Lite-On Computer Co., Ltd.	Yantai Lite-On Mobile Electronic Components Co., Ltd.	Receivables from related parties	Yes	51,762	50,605	50,605	3.395%-4.2%	b	-	Operating capital	-	None	-	109,967	109,967
8	DongGuan G-Pro Computer Co., Ltd.	Silitek Elec. (Dongguan) Co., Ltd.	Receivables from related parties	Yes	258,810	-	-	3.92%	b	-	Operating capital	-	None	-	859,298	859,298
9	Dong Guan G-Tech Computers Co., Ltd.	Lite-On Electronics (Dongguan) Co., Ltd.	Receivables from related parties	Yes	103,524	-	-	3.92%	b	-	Operating capital	-	None	-	830,594	830,594
10	Huizhou Li Shin Electronic Co., Ltd.	Lite-On Technology (Xianging) Co., Ltd.	Receivables from related parties	Yes	51,762	-	-	4.2%	b	-	Operating capital	-	None	-	583,904	583,904
11	Guangzhou Lite-On Mobile Engineering Plastics Co., Ltd.	Zhuhai Lite-On Mobile Technology Co., Ltd.	Receivables from related parties	Yes	1,294,050	1,265,125	1,265,125	4.2%	b	-	Operating capital	-	None	-	4,786,834	4,786,834
12	Guangzhou Lite-On Mobile Electronic Components Co., Ltd.	Lite-On Young Fast (Huizhou) Co., Ltd. Beijing Lite-On Mobile Electronic and Telecommunication Components Co., Ltd.	Receivables from related parties Receivables from related parties	Yes Yes	126,118 879,954	- -	- -	5.6% 4.2%	b b	- -	Operating capital Operating capital	- -	None None	- -	10,968,633 10,968,633	10,968,633 10,968,633
13	Lite-On Auto Electric Technology (Guangzhou) Ltd.	Yantai Lite-On Mobile Electronic Components Co., Ltd.	Receivables from related parties	Yes	51,762	50,605	50,605	3.395%-4.2%	b	-	Operating capital	-	None	-	129,736	129,736

(Continued)

92 -

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No.	Financing Company	Counter-party	Financial Statement Account	Related Party	Maximum Balance for the Period	Ending Balance	Amount Actually Drawn	Interest Rate	Nature for Financing (Note 1)	Transaction Amount	Reasons for Financing	Allowance for Bad Debt	Collateral	Collateral	Financing Limits for Each Borrowing Company (Note 2)	Financing Company’s Total Financing Amount Limits (Note 2)
													Item	Value
14	Lite-On Opto Technology (Guangzhou) Co., Ltd.	Shenzhen Lite-On Mobile Precision Molds Co., Ltd.	Receivables from related parties	Yes	$ 126,285	$ -	$ -	4.2%	b	$ -	Operating capital	$ -	None	$ -	$ 2,502,557	$ 2,502,557
15	Lite-On Mobile Oyj (formerly: Perlos Oyj)	Lite-On Mobile India Private Limited	Receivables from related parties	Yes	160,818	160,598	160,598	2.357%-2.446%	b	-	Operating capital	-	None	-	1,135,093	1,135,093
16	Lite-On Mobile Pte. Ltd.	Lite-On Mobile India Private Limited	Receivables from related parties	Yes	942,951	941,659	941,659	2.107%-2.196%	b	-	Operating capital	-	None	-	569,947	569,947
17	Lite-On China Holding Co., Ltd.	Lite-On Mobile Pte. Ltd.	Receivables from related parties	Yes	656,400	-	-	0.86%	b	-	Operating capital	-	None	-	27,133,899	27,133,899
18	Eagle Rock Investment Ltd.	Lite-On Mobile Pte. Ltd.	Receivables from related parties	Yes	656,400	-	-	0.86%	b	-	Operating capital	-	None	-	1,497,057	1,497,057
19	Lite-On Green Energy B.V.	Romeo Tetti PV1 S.R.L.	Receivables from related parties	Yes	123,838	38,557	38,557	2.235%	b	-	Operating capital	-	None	-	340,531	340,531
20	Lite-On Technology (Europe) B.V.	Lite-On Green Energy B.V.	Receivables from related parties	Yes	62,634	14,321	14,321	1.00%	b	-	Operating capital	-	None	-	2,857,813	2,857,813
21	Lite-On Capital Corporation	Lite-On Green Technologies Inc.	Receivables from related parties	Yes	115,000	-	-	1.00%	b	-	Operating capital	-	None	-	859,305	859,305
22	Lite-On Singapore Pte. Ltd.	Lite-On China Holding Co., Ltd. Lite-On Mobile Pte. Ltd.	Receivables from related parties Receivables from related parties	Yes Yes	295,380 1,311,000	- 1,311,000	- 1,311,000	0.86% 0.86%	b b	- -	Operating capital Operating capital	- -	None None	- -	15,559,263 15,559,263	15,559,263 15,559,263
23	Lite-On Electronics (Guangzhou) Co., Ltd.	Silitek Elec. (Dongguan) Co., Ltd. Zhuhai Lite-On Mobile Technology Co., Ltd.	Receivables from related parties Receivables from related parties	Yes Yes	248,925 1,529,100	- 1,518,150	- -	3.745% 3.22%	b b	- -	Operating capital Operating capital	- -	None None	- -	13,745,648 13,745,648	13,745,648 13,745,648
24	LTC International Ltd.	Lite-On Automotive Electronics Mexico, S.A. DE C.V.	Receivables from related parties	Yes	98,460	98,325	98,325	4.08%	b	-	Operating capital	-	None	-	355,113	355,113
25	Lite-On Automotive (Wuxi) Co., Ltd.	Lite-On Green Technologies (Nanjing) Corporation	Receivables from related parties	Yes	56,938	55,666	55,666	3.395%	b	-	Operating capital	-	None	-	586,300	586,300
26	Li Shin Technology (Huizhou) Ltd.	Lite-On Technology (Xianging) Co., Ltd.	Receivables from related parties	Yes	75,908	75,908	75,908	3.045%	b	-	Operating capital	-	None	-	415,799	415,799
27	China Bridge Express (Wuxi) Co., Ltd.	Changzhou Leotek New Energy Trade Limited	Receivables from related parties	Yes	151,815	-	-	3.045%	b	-	Operating capital	-	None	-	493,823	493,823

Note 1: Reasons for financing are as follows:
a. Business relationship.
b. The need for short-term financing.
Note 2: Financing limit for each borrower and aggregate financing limits are calculated based on the Company’s policy.
Note 3: The net worth value is based on the most current reviewed financial statements.
Note 4: All intercompany financing loans have been eliminated from consolidation.

(Concluded)

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TABLE 2

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

ENDORSEMENT/GUARANTEE PROVIDED FOR THE YEAR ENDED DECEMBER 31, 2015 (Amounts in Thousands of New Taiwan Dollars)

No.	Endorsement/ Guarantee Provider	Guaranteed Party		Limits on Endorsement/ Guarantee Amount Provided to Each Guaranteed Party (Note 2)	Maximum Balance for the Period	Ending Balance	Amount Actually Drawn	Amount of Endorsement/ Guarantee Collateralized by Properties	Ratio of Accumulated Endorsement/ Guarantee to Net Equity Per Latest Financial Statements (%)	Maximum Endorsement/ Guarantee Amount Allowable (Note 2)	Guarantee Provided by Parent Company	Guarantee Provided by A Subsidiary	Guarantee Provided to Subsidiaries In Mainland China
		Name	Nature of Relationship (Note 1)
0	Lite-On Technology Corporation (the“Parent Company”)	Lite-On Technology (Europe) B.V. Lite-On Mobile Pte. Ltd. (Note 3) Silitek Elec. (Dongguan) Co., Ltd. Guangzhou Lite-On Mobile Electronic Components Co., Ltd.	b b c c	$ 7,598,851 7,598,851 7,598,851 7,598,851	$ 140,006 10,064,000 2,490,900 1,320,900	$ 68,026 7,866,000 2,490,900 852,150	$ 68,026 6,555,000 1,311,000 524,400	$ - - - -	0.09 10.35 3.28 1.12	$ 30,395,404 30,395,404 30,395,404 30,395,404	Yes Yes Yes Yes	No No No No	No No Yes Yes
1	Lite-On Mobile Oyj (formerly: Perlos Oyj)	Lite-On Mobile Sweden AB Guangzhou Lite-On Mobile Electronic Components Co., Ltd.	b c	181,615 181,615	15,708 823,091	- 804,693	- 87,718	- -	- 1.06	454,037 454,037	No No	No No	No Yes
2	Lite-On CapitalCorporation	Lite-On Green Technologies B.V.	c	2,148,264	864,280	839,876	839,876	-	1.11	2,148,264	No	No	No

Note 1: Relationship between endorser/guarantor and endorsee/guarantee are as follows:

a. Business relationship.
b. A subsidiary in which the Company holds directly over 50% of equity interest.
c. An investee in which the Company and its subsidiaries hold over 50% of equity interest.
Note 2: a. The aggregate amount of guarantees/endorsements by Lite-On Technology Corporation should not exceed 40% of its net worth, and the amount of guarantees/endorsements for any single entity should not exceed 10% of its net worth.
b. The endorsement/guarantee limit for each entity and the total endorsement/guarantee limit are calculated on the basis of Lite-On Mobile Oyj’s and Lite-On Capital Corporation’s endorsement/guarantee procedures.

c. Limits on endorsement/guarantee amount provided to each guaranteed party and maximum endorsement/guarantee amount allowable were calculated on the basis of the net worth of the endorsement/guarantee provider, as shown in its most recent reviewed financial statements.

Note 3: The guarantee provided by the Parent Company to Lite-On Mobile Pte. Ltd. is for the repayment of the latter’s syndicated loan obtained in December 2013.

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TABLE 3

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES HELD DECEMBER 31, 2015

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account		December 31, 2015	December 31, 2015		Note
				Shares/Units (In Thousands)	Carrying Value (Foreign Currencies in Thousands)	Percentage of Ownership (%)	Fair Value (Foreign Currencies in Thousands)
Lite-On Technology Corporation Lite-On Capital Corporation	Common stock EPISTAR Corporation Wistron Corporation CO-TECH Development Corp. Com2B Corp. Avamax Corp. Aetas Technology, Inc. AuriaSolar Co., Ltd. Z-Com, Inc. Fong Han Electronics Co., Ltd. Xepex Electronics Co., Ltd. AOPEN, Inc. Oplink Communications, Inc. North America Micro-Electronic & Software, Incorporated Action Media Technologies, Inc. Taiwan Changxing Technology Co., Ltd. Preferred stock Arkologic Holdings Limited PI-CORAL Convertible bond Xepex Electronics Co., Ltd. Common stock Lite-On Technology Corporation Lead Data, Inc. Compund Solar Technology Co., Ltd. Z-Com, Inc. Auden Techno Corp.	Member of the board of directors - Chairman of the board is the same person - - Member of the board of directors - - - - - - - - - - - - The Parent Company - - - Member of the board of directors	Available-for-sale financial assets - non-current 〃〃〃〃〃〃〃〃〃〃〃〃〃〃〃〃 Debt investments with no active market - non-current Available-for-sale financial assets - non-current 〃〃〃〃	5,908 4,981 1,530 5,000 559 4,026 41,400 3,245 1,167 - 100 12 5 38 462 11,111 1,139 150 15,041 865 2,000 2,631 8,124	$ 150,653 92,648 14,535 19,009 - - - 28,490 - - 903 9,262 1,154 - 4,620 - - - 479,049 6,095 - 23,102 178,716	0.54 0.19 0.73 11.11 6.99 8.07 19.71 4.10 6.67 - 0.08 0.07 2.67 - 15.40 7.66 10.65 - 0.64 0.59 2.86 3.33 19.90	$ 150,653 92,648 14,535 19,009 - - - 28,490 - - 903 9,262 1,154 - 4,620 - - - 479,049 6,095 - 23,102 178,716	Note Note Note - Note Note Note Note Note Note Note

(Continued)

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Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account		December 31, 2015	December 31, 2015		Note
				Shares/Units (In Thousands)	Carrying Value (Foreign Currencies in Thousands)	Percentage of Ownership (%)	Fair Value (Foreign Currencies in Thousands)
Lite-On Green Energy (HK) Limited Lite-On Electronics Co., Ltd. Yet Foundate Ltd. LTC Group Ltd. (BVI) LTC International Ltd. Lite-On China Holding Co., Ltd. LET (HK) Ltd. Silitech Technology Corp. Silitech (Bermuda) Holding Ltd. Lite-On Japan Ltd.	Common stock Changzhou Binhu Thin Film Solar Greenhouse Co., Ltd. Share certificates Lite-On Technology Corporation GDR Share certificates Lite-On Technology Corporation GDR Common stock Northen Lights Semiconductor Common stock VIZIO, Inc. Common stock Lite-On Technology Corporation Share certificates Lite-On Technology Corporation GDR Common stock COMMIT Incorporated Fund Innovation Works Development Fund, L.P. Common stock Chi Mei Mold Co., Ltd. RTR-TECH Technology Co., Ltd. Common stock Innovation Works Development Fund, L.P. Common stock Tamura Corporation The Dai-ichi Life Insurance Company, Limited With Corporation	- The Parent Company 〃 - - The Parent Company 〃 - - Member of the board of directors 〃 - - - -	Available-for-sale financial assets - non-current 〃〃〃〃〃〃〃〃〃〃〃〃〃〃	- 244 226 3,000 437 3,774 320 4,962 - 1,300 6,820 - 19,250 7 9,000	US$ 140 $ 77,491 71,820 - - 120,210 101,549 - HK$ 6,152 $ 11,165 68,138 US$ 828 JPY 6,969 JPY 1,425 JPY 5,400	19.90 0.10 0.10 5.91 2.90 0.16 0.14 1.87 - 13.00 9.46 - 0.03 - 14.20	US$ 140 $ 77,491 71,820 - - 120,210 101,549 - HK$ 6,152 $ 11,165 68,138 US$ 828 JPY 6,969 JPY 1,425 JPY 5,400	Note Note Note

(Continued)

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Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account		December 31, 2015	December 31, 2015		Note
				Shares/Units (In Thousands)	Carrying Value (Foreign Currencies in Thousands)	Percentage of Ownership (%)	Fair Value (Foreign Currencies in Thousands)
Lite-On Mobile Oyj (formerly: Perlos Oyj)	Common stock Kontiolahti Golf Oy	-	Available-for-sale financial assets - non-current	1	EUR 9	-	EUR 9

Note: The carrying values of financial instruments were all assessed for impairment.

(Concluded)

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TABLE 4

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES ACQUIRED AND DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2015

(Amounts in Thousands of New Taiwan Dollars or in Thousands of Foreign Currencies)

Company Name	Marketable Securities Type and Name	Financial Statement Account	Counterparty	Nature of Relationship	Beginning Balance	Beginning Balance	Acquisition	Acquisition		Disposal	Disposal		Ending	Balance
					Shares/Units (In Thousands)	Amount	Shares/Units (In Thousands)	Amount	Shares/Units (In Thousands)	Amount	Carrying Amount	Gain (Loss) on Disposal	Shares/Units (In Thousands)	Amount
Lite-On Singapore Pte. Ltd. Lite-On Technology Corporation Lite-On International Holding Co., Ltd. Lite-On China Holding Co., Ltd. Lite-On Electronics Co., Ltd. Lite-On Technology (GZ) Investment Company Ltd. Silitech Technology Corp. Silitech Technology (SuZhou) Co., Ltd.	Lite-On Technology (Shanghai) Ltd. Lite-On International Holding Co., Ltd. Lite-On China Holding Co., Ltd. Lite-On Electronics Co., Ltd. Lite-On Technology (GZ) Investment Company Ltd. Zhuhai Lite-On Mobile Technology Co., Ltd. Allianz Global Investors Taiwan Money Market Fund Yuanta De-Li Money Market Fund Fixed Income Instruments	Investment accounted for using equity method 〃〃〃〃〃 Financial instruments at fair value through profit or loss - current 〃 Debt investments with no active market - current	- - - - - - - - -	- - - - - - - - -	- 285,825 349,442 2,578,633 - - - - -	$ - 23,434,167 US$ 781,049 US$ 734,782 HK$ 373,543 $ - - - -	- 50,000 50,000 387,600 - - 61,617 29,261 -	US$ 70,412 (Note 1) $ 2,239,074 (Note 2) US$ 69,239 (Note 3) US$ 70,869 (Note 4) HK$ 381,110 (Note 5) CNY 461,665 (Note 6) $ 760,000 470,000 424,399 (CNY 83,810 )	- - - - - - 61,617 29,261 -	$ - - - - - - 760,667 470,384 -	$ - 566,837 (Note 2) US$ 22,404 (Note 3) US$ 21,835 (Note 4) HK$ 148,838 (Note 5) CNY121,154 (Note 6) $ 760,000 470,000 -	$ - - - - - - 667 384 -	- 335,825 399,442 2,966,233 - - - - -	US$ 70,412 $ 25,106,404 US$ 827,884 US$ 783,816 HK$ 605,815 US$ 340,511 $ - - 424,399 (CNY 83,810 )

Note 1: The acquisition amount of US$65,000 thousand was the capital injected in the investee during the period.

Note 2: The acquisition amount of $1,555,000 thousand was the capital injected in the investee during the period; the $684,074 thousand is from the gain accounted for using equity method; the $248,776 thousand in the disposal is from the other comprehensive income for using equity method and the $318,061 thousand in the disposal is from the changes in equities for using equity method.

Note 3: The acquisition amount of US$50,000 thousand was the capital injected in the investee during the period; the US$19,239 thousand is from the gain accounted for using equity method; the US$12,250 thousand in the disposal is from the other comprehensive income for using equity method and the US$10,154 thousand in the disposal is from the changes in equities for using equity method.

Note 4: The acquisition amount of US$50,000 thousand was the capital injected in the investee during the period; the US$20,869 thousand is from the gain accounted for using equity method; the US$11,681 thousand in the disposal is from the other comprehensive income for using equity method and the US$10,154 thousand in the disposal is from the changes in equities for using equity method.

Note 5: The acquisition amount of HK$381,110 thousand was the capital injected in the investee during the period; the HK$23,390 thousand in the disposal is from the loss accounted for using equity method, the HK$44,446 thousand in the disposal is from the other comprehensive income for using equity method and the HK$81,002 thousand in the disposal is from the changes in equities for using equity method.

Note 6: The acquisition amount of CNY461,665 thousand was the capital injected in the investee during the period; the CNY26,093 thousand in the disposal is from the loss accounted for using equity method and the CNY95,061 thousand in the disposal is from the changes in equities for using equity method.

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TABLE 5

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES OF AT AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2015

(Amounts in Thousands of New Taiwan Dollars or in Thousands of Foreign Currencies)

Company Name	Related Party	Nature of Relationship		Transaction Details	Transaction Details		Abnormal Transaction	Abnormal Transaction	Notes/Accounts (Payable) or Receivable	Notes/Accounts (Payable) or Receivable	Note
			Purchase/ Sale	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
Lite-On Technology Corporation Lite-On Network Communication (Dongguan) Limited Lite-On Electronics (Dongguan) Co., Ltd. Silitek Elec. (Dongguan) Co., Ltd. Lite-On Electronics (Guangzhou) Co., Ltd. Dong Guan G-Tech Computers Co., Ltd. Lite-On Electronics (Thailand) Co., Ltd. Lite-On Power Technology (Dongguan) Co., Ltd. Lite-On Singapore Pte. Ltd. Lite-On Overseas Trading Co., Ltd.	Lite-On Trading USA, Inc. Lite-On Japan Ltd. Philip & Lite-On Digital Solutions Corp. Lite-On Singapore Pte. Ltd. China Bridge Express (Wuxi) Co., Ltd. Lite-On Sales & Distribution Inc. Lite-On China Holding Co., Ltd. Lite-On Technology (Changzhou) Co., Ltd. Lite-On Technology (Changzhou) Co., Ltd. LET (HK) Ltd. Lite-On Singapore Pte. Ltd. Li Shin International Enterprise Corp. Lite-On Overseas Trading Co., Ltd. Lite-On Automotive Electronics (Guangzhou) Co., Ltd. Lite-On Overseas Trading Co., Ltd. China Bridge Express (Wuxi) Co., Ltd. Lite-On Overseas Trading Co., Ltd. Lite-On Overseas Trading Co., Ltd. Lite-On Overseas Trading Co., Ltd. Dong Guan G-Tech Computers Co., Ltd. Lite-On Overseas Trading Co., Ltd. Lite-On Electronics (Guangzhou) Co., Ltd. Lite-On Singapore Pte. Ltd. Lite-On Electronic Co., Ltd. Lite-On Electronics H.K. Ltd. Lite-On Japan Ltd. Lite-On, Inc. Lite-On Trading USA, Inc. China Bridge Express (Wuxi) Co., Ltd. Leotek Electronics USA LLC Lite-On Overseas Trading Co., Ltd. Philips & Lite-On Digital Solutions USA Inc. Philips & Lite-On Digital Solutions Germany GmbH. Lite-On Sales & Distribution Inc. Lite-On Technology (Changzhou) Co., Ltd. Lite-On Network Communication (Dongguan) Limited Lite-On Technology (Changzhou) Co., Ltd. Lite-On Electronics (Dongguan) Co., Ltd. Silitek Elec. (Dongguan) Co., Ltd. Dong Guan G-Tech Computers Co., Ltd. DongGuan G-Pro Computer Co., Ltd.	Note 2 Note 1 Note 1 Note 1 Note 2 Note 2 Note 2 Note 2 Note 2 Note 1 Note 1 Note 1 Note 1 Note 2 Note 3 Note 4 Note 3 Note 3 Note 3 Note 4 Note 3 Note 4 Note 3 Note 4 Note 3 Note 3 Note 4 Note 4 Note 4 Note 4 Note 3 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4	Sale Sale Sale Sale Sale Sale Sale Sale Purchase Purchase Purchase Purchase Purchase Purchase Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale	$ (3,295,462) (861,796) (12,810,242) (4,697,862) (826,743) (128,049) (141,230) (1,163,932) 1,519,674 10,040,910 24,766,587 3,531,460 57,023,431 735,033 (7,422,514) (244,867) (12,605,138) (8,704,470) (39,788,218) (140,509) (3,054,784) (265,491) (3,148,388) (1,483,284) (2,059,526) (1,559,866) (621,231) (4,725,589) (1,146,671) (1,405,437) (382,058) (9,918,059) (1,836,539) (570,405) (206,086) (6,369,124) (15,216,534) (11,171,663) (6,835,674) (1,968,661) (5,144,551)	(3) (1) (10) (4) (1) - - (1) 1 9 22 3 51 1 (96) (3) (100) (95) (70) - (90) (8) (97) (100) (2) (2) (1) (6) (1) (2) - (12) (2) (1) - (4) (9) (6) (4) (1) (3)	About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days	Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing	No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference	$ 1,082,305 164,723 4,214,601 899,640 304,660 129,288 142,250 479,631 (521,929) (853,098) (8,193,189) (829,029) (8,115,555) (264,241) 1,009,696 101,682 1,107,114 1,199,503 6,627,863 - 311,575 68,476 736,127 - 391,471 536,939 136,069 1,605,131 500,853 532,180 643,670 1,449,385 291,208 206,718 69,014 1,770,962 5,355,946 1,211,482 656,886 645,524 1,298,409	3 1 13 3 1 - - 1 (2) (3) (30) (3) (30) (1) 90 9 100 90 49 - 82 18 95 - 2 2 1 7 2 2 3 6 1 1 - 5 14 3 2 2 4

(Continued)

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Company Name	Related Party	Nature of Relationship		Transaction Details	Transaction Details		Abnormal Transaction	Abnormal Transaction	Notes/Accounts (Payable) or Receivable	Notes/Accounts (Payable) or Receivable	Note
			Purchase/ Sale	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
Lite-On Overseas Trading Co., Ltd. Lite-On Electronics Co., Ltd. LET (HK) Ltd. DongGuan G-Pro Computer Co., Ltd. Lite-On Electronics (Tianjinn) Co., Ltd. Lite-On Auto Electric Technology (Guangzhou) Ltd. Lite-On IT Opto Tech (BH) Co., Ltd. Lite-On Opto Technology (Guangzhou) Co., Ltd. Huizhou Li Shin Electronic Co., Ltd. Lite-On Li Shin Technology (Ganzhou) Co., Ltd. Lite-On Technology (Ying Tan) Co., Ltd. Lite-On Technology (Xianging) Co., Ltd. Lite-On Opto Technology (Changzhou) Co., Ltd. Lite-On Technology (Changzhou) Co., Ltd. Lite-On Automotive (Wuxi) Co., Ltd. Lite-On Automotive Electronics (Guangzhou) Co., Ltd. Lite-On Technology (Shanghai) Ltd. Lite-On Japan Ltd. Shenzhen Lite-On Mobile Precision Molds Co., Ltd. Lite-On Mobile Pte. Ltd. Beijing Lite-On Mobile Electronic and Telecommunication Components Co., Ltd. Guangzhou Lite-On Mobile Electronic Components Co., Ltd.	Lite-On Singapore Pte. Ltd. Lite-On Electronics (Guangzhou) Co., Ltd. I-Solutions Limited Huizhou Li Shin Electronic Co., Ltd. Lite-On Semiconductor Corp. Diodes Taiwan Inc. Lite-On Singapore Pte. Ltd. Lite-On Singapore Pte. Ltd. Lite-On Opto Technology (Guangzhou) Co., Ltd. Lite-On IT Opto Tech (BH) Co., Ltd. Auto Electric Technology (Guangzhou) Ltd. Lite-Space Technology Company Limited Lite-On Overseas Trading Co., Ltd. Lite-On Overseas Trading Co., Ltd. Philip & Lite-On Digital Solutions (Shanghai) Co., Ltd. Lite-On Technology (Shanghai) Ltd. LET (HK) Ltd. LET (HK) Ltd. Lite-On Auto Electric Technology (Guangzhou) Ltd. Li Shin International Enterprise Corp. Li Shin International Enterprise Corp. Li Shin International Enterprise Corp. Li Shin International Enterprise Corp. Lite-On Singapore Pte. Ltd. Lite-On Overseas Trading Co., Ltd. Lite-On Singapore Pte. Ltd. Lite-On Technology (Shanghai) Ltd Lite-On Singapore Pte. Ltd. Lite-On Technology (Shanghai) Ltd Philip & Lite-On Digital Solutions (Shanghai) Co., Ltd. Lite-On Semiconductor Corp. Lite-On Semiconductor Corp. Guangzhou Lite-On Mobile Electronic Components Co., Ltd. Guangzhou Lite-On Mobile Electronic Components Co., Ltd. Lite-On Mobile Oyj (formerly: Perlos Oyj) Lite-On Mobile Pte. Ltd. Lite-On Mobile Oyj (formerly: Perlos Oyj)	Note 3 Note 4 Note 4 Note 4 Note 5 Note 6 Note 3 Note 3 Note 4 Note 4 Note 4 Note 5 Note 3 Note 3 Note 4 Note 4 Note 3 Note 3 Note 4 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 4 Note 3 Note 4 Note 4 Note 5 Note 5 Note 4 Note 4 Note 4 Note 3 Note 4	Sale Sale Sale Sale Purchase Purchase Sale Sale Sale Sale Sale Purchase Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Purchase Sale Sale Sale Sale Sale	$ (29,420,468) (41,278,205) (437,145) (178,268) 536,171 415,916 (1,483,284) (9,698,066) (1,494,368) (12,234,874) (232,412) 3,761,826 (6,514,823) (1,669,705) (280,499) (477,351) (17,591,910) (2,992,426) (101,562) (1,567,066) (578,563) (752,158) (577,179) (3,189,894) (8,782,083) (13,803,594) (132,867) (1,102,906) (174,067) (635,528) JPY (662,058) JPY 1,530,248 $ (605,618) (329,664) (727,809) (456,762) (102,823)	(17) (24) - - - - (100) (28) (4) (35) (1) 10 (100) (100) (36) (60) (100) (96) (3) (76) (100) (100) (100) (100) (36) (57) (18) (34) (5) (60) (4) 9 (85) (20) (39) (9) (2)	About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days	Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-pluspricing	No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference	$ 8,597,033 9,277,765 154,260 181,261 (195,694) (118,820) - 11,280 691,681 5,044,250 62,428 (257,850) - 301,145 - 36,929 1,516,402 646,403 42,103 434,320 224,556 231,985 103,926 173,523 661,207 1,122,616 170,302 359,621 176,933 44,675 JPY 240,826 JPY (283,014) $ 106,272 4,984 14,278 253,851 28,162	23 25 - - - - - - 10 76 1 (4) - 100 - 84 100 94 6 81 100 100 100 95 29 49 49 29 14 12 8 (8) 94 1 24 19 2

(Continued)

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(Concluded)

Company Name	Related Party	Nature of Relationship		Transaction Details	Transaction Details		Abnormal Transaction	Abnormal Transaction	Notes/Accounts (Payable) or Receivable	Notes/Accounts (Payable) or Receivable	Note
			Purchase/ Sale	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
Zhuhai Lite-On Mobile Technology Co., Ltd. China Bridge Express (Wuxi) Co., Ltd. Lite-On Electronics HK Ltd. Philip & Lite-On Digital Solutions Corp. Silitech Technology Corp. Ltd. Xurong Electronic (Shenzhen) Co., Ltd.	Lite-On Mobile Pte. Ltd. Lite-On Technology (Changzhou) Co., Ltd. Lite-On Overseas Trading Co., Ltd. Philips & Lite-On Digital Solutions USA Inc. Philips & Lite-On Digital Solutions Germany GmbH. Silitech Technology Corp. Lite-On Technology (Changzhou) Co., Ltd. Silitech Technology Corp. Ltd.	Note 3 Note 4 Note 3 Note 4 Note 4 Note 3 Note 4 Note 4	Sale Sale Sale Sale Sale Sale Sale Sale	$ (910,798) (183,438) (154,125) (1,064,375) (292,809) US$ (29,397) JPY (37,885) US$ (5,582) US$ (40,732) JPY (37,885)	(31) (7) (8) (8) (2) (70) (13) (56)	About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days	Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing No significant difference No significant difference No significant difference	No significant difference No significant difference No significant difference No significant difference No significant difference 90-120 days 90-120 days 90-120 days	$ 720,724 64,932 62,177 1,074,156 295,639 US$ 8,685 JPY 5,482 US$ 328 US$ 12,138 JPY 5,482	59 8 13 23 6 72 3 70

Note 1: Equity-method investee.

Note 2: Investee of the equity-method investee.

Note 3: The Company’s equity-method investee.

Note 4: Investee of the Company’s equity-method investee.

Note 5: Associate.

Note 6: Other related parties.

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TABLE 6

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL DECEMBER 31, 2015

(Amounts in Thousands of New Taiwan Dollars or in Thousands of Foreign Currencies)

Company Name	Related Party	Nature of Relationship	Ending Balance of Notes Receivable-inter	Ending Balance of Trade Receivables-inter	Ending Balance of Other Receivables-inter	Turnover Rate	Overdue	Overdue	Amounts Received in Subsequent Period	Allowance for Bad Debts
							Amount	Action Taken
Lite-On Technology Corporation Lite-On Network Communication (Dongguan) Limited Dong Guan G-Tech Computers Co., Ltd. Lite-On Electronics (Tianjinn) Co., Ltd. Lite-On Electronics (Dongguan) Co., Ltd. G&W Technology (BVI) Limited Silitek Elec. (Dongguan) Co., Ltd. Lite-On Electronics (Thailand) Co., Ltd. Lite-On Singapore Pte. Ltd.	Philip & Lite-On Digital Solutions Corp. Lite-On Technology (Changzhou) Co., Ltd. China Bridge Express (Wuxi) Co., Ltd. Titanic Capital Services Ltd. Lite-On Singapore Pte. Ltd. Lite-On Japan Ltd. Lite-On Trading USA, Inc. Lite-On Sales & Distribution Inc Philips & Lite-On Digital Solutions USA Inc. Lite-On Overseas Trading Co., Ltd. Lite-On China Holding Co., Ltd. Lite-On Overseas Trading Co., Ltd. China Bridge Express (Wuxi) Co., Ltd. Lite-On Overseas Trading Co., Ltd. Lite-On Overseas Trading Co., Ltd. Lite-On Opto Technology (Guangzhou) Ltd. Lite-On Overseas Trading Co., Ltd. G&W Technology Limited Lite-On Overseas Trading Co., Ltd. Lite-On Singapore Pte. Ltd. Lite-On Electronics H.K. Ltd. Lite-On Japan Ltd. Lite-On Trading USA, Inc. Lite-On Mobile Pte. Ltd. China Bridge Express (Wuxi) Co., Ltd. Lite-On Overseas Trading Co., Ltd. Lite-On, Inc. Leotek Electronics USA LLC Philips & Lite-On Digital Solutions USA Inc. Philips & Lite-On Digital Solutions Germany GmbH. Lite-On Sales & Distribution Inc.	Note 1 Note 2 Note 2 Note 2 Note 1 Note 1 Note 2 Note 2 Note 2 Note 1 Note 2 Note 3 Note 4 Note 3 Note 3 Note 4 Note 3 Note 4 Note 3 Note 3 Note 3 Note 3 Note 4 Note 3 Note 4 Note 3 Note 4 Note 4 Note 4 Note 4 Note 4	$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	$ 4,214,601 479,631 304,660 - 899,640 164,723 1,082,305 129,288 - 3,575,995 142,250 1,009,696 101,682 311,575 301,145 - 1,107,114 - 1,199,503 736,127 391,471 536,939 1,605,131 - 500,853 643,670 136,069 532,180 1,449,385 291,208 206,718	$ 229,265 - - 132,038 166,969 7,847 - 3,707 100,098 2,077 - - - - - 257,316 - 178,546 15,736 9,947 - 1,230 122 1,311,501 - 5 1,793 - - 3,827- -	3.68 2.51 2.19 - 4.34 2.79 3.34 1.98 2.15 0.01 0.94 7.68 4.20 9.57 6.21 - 11.97 - 5.10 4.05 5.28 3.53 2.93 - 2.61 0.66 4.45 2.77 13.69 12.61 5.52	$ - - - - 34 549 - - - - - - - - - - - - - - - - - - - - 29,155 - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	$ 1,887,965 953 136,707 - 127,044 12,238 486,743 - - 1,458,232 142,250 1,009,696 52,364 311,575 301,145 - 1,107,114 - 1,199,503 503,031 17,597 88,435 1,088,630 - 215,467 430,809 114,142 - 1,385,983 291,208 143,025	$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(Continued)

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Lite-On Technology Corporation 2015 Annual Report‧

Company Name	Related Party	Nature of Relationship	Ending Balance of Notes Receivable-inter	Ending Balance of Trade Receivables-inter	Ending Balance of Other Receivables-inter	Turnover Rate	Overdue	Overdue	Amounts Received in Subsequent Period	Allowance for Bad Debts
							Amount	Action Taken
Lite-On Technology (Changzhou) Co., Ltd. Lite-On Opto Technology (Changzhou) Co., Ltd. Lite-On Electronics (Guangzhou) Co., Ltd. Huizhou Li Shin Electronic Co., Ltd. Lite-On Technology (Ying Tan) Co., Ltd. Lite-On Technology (Xianning) Co Ltd. Lite-On Li Shin Technology (Ganzhou) Co., Ltd. LET (HK) Ltd. Lite-On Overseas Trading Co., Ltd. Li-Shin International Enterprise Corp. Philip & Lite-On Digital Solutions Corp. Lite-On Automotive (Wuxi) Co., Ltd. Lite-On Automotive Electronics (Guangzhou) Co., Ltd. Lite-On Opto Technology (Guangzhou) Co., Ltd. Lite-On IT Opto Tech (BH) Co., Ltd. Silitech Technology Corp. Ltd. Silitech (BVI) Holding Ltd.	Lite-On Overseas Trading Co., Ltd. Lite-On Singapore Pte. Ltd. Zhuhai Lite-On Mobile Technology Co., Ltd. Lite-On Singapore Pte. Ltd. Changzhou Leotek New Energy Trade Limited Lite-On Overseas Trading Co., Ltd. Li-Shin International Enterprise Corp. Li-Shin International Enterprise Corp. Li-Shin International Enterprise Corp. Li-Shin International Enterprise Corp. Lite-On Opto Technology (Guangzhou) Co., Ltd. Lite-On IT Opto Tech (BH) Co., Ltd. Lite-On Network Communication (Dongguan) Limited Lite-On Technology (Changzhou) Co., Ltd. Silitek Elec. (Dongguan) Co., Ltd. Lite-On Electronics (Dongguan) Co., Ltd. Dong Guan G-Tech Computers Co., Ltd. I-Solutions Limited DongGuan G-Pro Computer Co., Ltd. Lite-On Electronics (Guangzhou) Co., Ltd. Lite-On Singapore Pte. Ltd. Huizhou Li Shin Electronic Co., Ltd. Huizhou Li Shin Electronic Ltd. Philips & Lite-On Digital Solutions USA Inc. Philips & Lite-On Digital Solutions Germany GmbH Lite-On Technology (Shanghai) Ltd. Lite-On Singapore Pte. Ltd. Lite-On Technology (Shanghai) Ltd. LET (HK) Ltd. LET (HK) Ltd. Silitech (BVI) Holding Ltd. Silitech (Bermuda) Holding Ltd.	Note 3 Note 3 Note 4 Note 3 Note 4 Note 3 Note 3 Note 3 Note 3 Note 3 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 3 Note 4 Note 4 Note 4 Note 4 Note 4 Note 3 Note 4 Note 3 Note 3 Note 3 Note 4	$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	$ 661,207 1,122,616 - 173,523 - 6,627,863 434,320 231,985 103,926 224,556 691,681 5,044,250 1,770,962 5,355,946 656,886 1,211,482 645,524 154,260 1,298,409 9,277,765 8,597,033 181,261 183,563 1,074,156 295,639 170,302 359,621 176,933 646,403 1,516,402 - -	$ - - 1,280,305 - 177,252 - - - - - 1,725 19,128 - - 1,747 - - - 3,303 - - - 282 4,070 - 1,684 193 321 - - 370,404 US$ 10,987	18.47 14.50 - 17.64 - 5.08 4.41 2.91 4.17 3.06 1.16 1.91 3.72 2.54 6.98 9.22 2.83 2.39 4.13 4.25 2.95 1.97 - 1.98 1.98 1.56 3.61 1.97 6.52 5.11 - -	$ - - - - - - - - - - - - - - - - 114,047 - - - - - - - - 4,751 - 595 - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	$ 661,021 1,110,882 - 173,523 - 5,356,048 434,320 171,390 103,926 210,272 373,715 2,851,955 1,446,812 26,712 656,886 1,044,356 201,508 51,418 1,298,409 6,279,178 8,041,598 74,719 183,563 - - 52,772 150,768 64,336 435,794 951,500 - -	$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(Continued)

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Lite-On Technology Corporation 2015 Annual Report‧

Company Name	Related Party	Nature of Relationship	Ending Balance of Notes Receivable-inter	Ending Balance of Trade Receivables-inter	Ending Balance of Other Receivables-inter	Turnover Rate	Overdue	Overdue	Amounts Received in Subsequent Period	Allowance for Bad Debts
							Amount	Action Taken
Silitech Technology Corp. Ltd. Xurong Electronic (Shenzhen) Co., Ltd. Lite-On Mobile Oyj (formerly: Perlos Oyj) Lite-On Mobile Pte. Ltd. Shenzhen Lite-On Mobile Precision Molds Co., Ltd. Guangzhou Lite-On Mobile Electronic Components Co., Ltd. Guangzhou Lite-On Mobile Engineering Plastics Co., Ltd. Zhuhai Lite-On Mobile Technology Co., Ltd.	Silitech Technology Corp. Silitech Technology Corp. Ltd. Lite-On Mobile India Private Limited Lite-On Mobile India Private Limited Guangzhou Lite-On Mobile Electronic Components Co. Ltd. Lite-On Mobile Pte. Ltd. Zhuhai Lite-On Mobile Technology Co., Ltd. Lite-On Mobile Pte. Ltd.	Note 3 Note 4 Note 4 Note 4 Note 4 Note 3 Note 4 Note 3	$ - - - - - - - -	US$ 8,685 JPY 5,482 US$ 12,138 JPY 5,482 $ 22,720 20,548 106,272 253,851 - 720,724	$ - - 160,598 941,659 - - 1,318,408 -	3.02 3.14 - - 11.40 3.60 - 2.53	$ - - - - - - - -	- - - - - - - -	US$ 2,704 JPY 1,194 US$ 2,704 JPY 1,194 - - 106,272 176,291 - 462,597	$ - - - - - - - -

Note 1: Equity-method investee.

Note 2: Investee of the equity-method investee.

Note 3: The Company’s equity-method investee.

Note 4: Investee of the Company’s equity-method investee.

(Concluded)

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Lite-On Technology Corporation 2015 Annual Report‧

TABLE 7

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES OVER WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE FOR THE YEAR ENDED DECEMBER 31, 2015

(Amounts in Thousands of New Taiwan Dollars or Thousands of Foreign Currencies)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	Balance as	of December 31, 2015	of December 31, 2015	Net Income (Losses) of the Investee	Share of Profits/Losses of Investee	Note
				December 31, 2015	December 31, 2014	Shares (In Thousands)	Percentage of Ownership (%)	Carrying Value
Lite-On Technology Corporation	Silitech Technology Corp. Lite-On Integrated Service Inc. Dragonjet Corporation Logah Technology Corp. Lite-On Capital Corporation Lite-On Electronics H.K. Ltd. Lite-On Electronics (Thailand) Co., Ltd. Lite-On Japan Ltd. Lite-On International Holding Co., Ltd. LTC Group Ltd. Lite-On Technology USA, Inc. Lite-On Electronics (Europe) Ltd. Lite-On Technology (Europe) B.V. Lite-On Overseas Trading Co., Ltd. Lite-On Singapore Pte. Ltd. Lite-On Vietnam Co., Ltd. Lite-On Mobile Pte. Ltd. Li Shin International Enterprise Corp. Eagle Rock Investment Ltd. Lite-On Semiconductor Corp. Canfield Ltd. High Yield Group Co., Ltd. Lite-On Information Technology B.V. Philip & Lite-On Digital Solutions Corp. Lite-On IT Singapore Pte. Ltd. Lite-Space Technology Company Limited LET (HK) Ltd. Leotek Electronics Holding Limited Lite-On Automotive Electronics (Europe) B.V. Lite-On Automotive North America Inc. Lite-On Automotive Service USA Inc. Lite-On Automotive International (Cayman) Co., Ltd. Lar View Technologies Corp. (Samoa) Lite-On Automotive Electronics Mexico, S.A. DE C.V.	New Taipei City, Taiwan Taipei City, Taiwan New Taipei City, Taiwan Kaohsiung, Taiwan Taipei City, Taiwan Hong Kong Thailand Japan British Virgin Islands British Virgin Islands USA United Kingdom Netherlands British Virgin Islands Singapore Vietnam Singapore British Virgin Islands British Virgin Islands New Taipei City, Taiwan Apia, Samoa British Virgin Islands Netherlands Taiwan Singapore Hong Kong Hong Kong Hong Kong Netherlands USA USA Cayman Samoa Mexico	Manufacture and sale of modules and plastic products Information outsourcing and system integrate Manufacture and sale of computer peripherals, printers, digital cameras, modules and plastic products Development, manufacture and sale of LCD TV inverters Investment activities Sale of LED optical products Manufacture and sale of LED optical products Sale of LED optical products and power supplies Investment activities Investment activities Investment activities Manufacture and sale of power supplies Market research and after-sales service Merchandising business Manufacture and supply computer peripheral products Electronic contract manufacturing Manufacture and sale of mobile phone modules and design for assembly line Manufacture and sale of computer and appliance components Import and export business and investment activities Manufacture of image sensor and rectifier Import and export business and investment activities Holding company Market research and customer service Sale of optical disc drives Sale of optical disc drives Sale of computer components Sale of optical disc drives Holding company Sale of automotive parts and other electronic products Sale of automotive parts and other electronic products Sale of automotive parts and other electronic products Investment activities Investment activities Production, manufacture, sale, import and export of photovoltaic device, key electronic components, telecommunications equipment, information technology equipment, semiconductor applications, general lighting, automotive electronics, renewable energy products and systems and maintenance of automotive industry	$ 324,685 25,886 1,069,080 402,787 4,096,367 7,339,481 529,106 248,305 US$ 335,825 $ 1,380,308 US$ 55,172 $ 44,559 2,543,184 168,947 US$ 63,788 US$ 3,000 EUR 250,329 $ 56,929 341 773,618 7,142 2,271,806 1,597,319 267,113 - 149,968 42 US$ 1,010 EUR 1,090 US$ - US$ 60 US$ 100,626 US$ - US$ 4,950	$ 324,685 25,886 1,069,080 402,787 4,096,367 7,339,481 529,106 253,111 US$ 285,825 $ 1,380,308 US$ 50,407 $ 44,559 2,543,184 168,947 US$ 63,788 US$ 3,000 EUR 250,329 $ 56,929 341 773,618 7,142 2,271,806 1,597,319 267,113 2,872 149,968 42 US$ 1,010 EUR 1,090 US$ 600 US$ 60 US$ 100,626 US$ 200 US$ -	60,757 3,400 26,727 31,683 209,545 17,865 5,030 6,162 335,825 41,916 436 300 331 5,143 51,777 - 178,178 1,748 10 57,204 200 68,138 11,018 17,150 - 5,100 10 25,000 24 - 1 11,967 - -	33.87 100.00 29.62 28.10 100.00 100.00 100.00 49.49 100.00 100.00 100.00 100.00 54.00 100.00 100.00 100.00 100.00 100.00 100.00 18.52 33.33 100.00 100.00 49.00 - 39.23 100.00 100.00 100.00 - 100.00 100.00 - 99.00	$ 1,487,387 46,323 1,047,765 245,119 1,598,494 11,231,033 1,304,188 358,234 25,106,404 592,312 2,359,141 53,011 311,079 242,239 15,338,196 70,420 8,790,237 (67,845) 1,410,738 1,544,501 4,713 5,305,483 18,056 337,073 - 41,036 (285,689) 9,668 43,143 - 12,908 1,897,276 - (59,097)	$ 145,977 6,156 27,222 (211,123) 119,625 HK$ 263,289 THB 127,107 JPY 136,647 US$ 19,424 US$ 7,000 US$ 3,972 GBP 118 EUR 3,796 US$ (1,509) US$ 108,286 US$ (246) US$ (36,450) US$ 7 US$ (11,442) $ 476,872 US$ 5 US$ 16,622 EUR (15) $ 51,483 - US$ 3,483 HK$ 3,769 HK$ (2,471) EUR (2) US$ (6) US$ (16) US$ 8,222 US$ (1) MXN (22,049)	$ 48,123 6,156 7,190 (58,772) 90,142 1,083,435 117,040 17,732 684,074 204,426 47,345 5,670 71,041 (51,924) 3,652,054 (7,975) (1,118,948) 232 (373,069) 90,538 26 113,434 (812) 25,227 - 42,924 131,347 (9,913) (86) (195) (533) 274,316 (46) (42,481)	Subsidiary Subsidiary Associate Associate Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Associate Associate Subsidiary Subsidiary Subsidiary Subsidiary (Note 1) Associate Subsidiary Subsidiary Subsidiary Subsidiary (Note 2) Subsidiary Subsidiary Subsidiary (Note 3) Subsidiary

158

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(Continued)

											(Continued)
Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount		Balance as	of December 31, 2015		Net Income (Losses) of the Investee	Share of Profits/Losses of Investee	Note
				December 31, 2015	December 31, 2014	Shares (In Thousands)	Percentage of Ownership (%)	Carrying Value
Lite-On Capital Corporation Lite-On Green Technologies Inc. Lite-On Green Energy (Singapore) Pte. Ltd. Lite-On Green Technologies B.V. Lite-On Green Energy B.V. China Bridge (China) Co., Ltd. Lite-On Electronics (Jiangsu) Co., Ltd. Lite-On Automotive International (Cayman) Co., Ltd. Lite-On Technology USA, Inc. Lite-On International Holding Co., Ltd.	Silitech Technology Corp. Lite-On Green Technologies Inc. Lite-On Green Energy (HK) Limited Lite-On Technology (Europe) B.V. Lite-On Semiconductor Corp. Lite-On Green Energy (Singapore) Pte. Ltd. Logah Technology Corp. Five Dimension Co., Ltd. Lite-On Green Technologies B.V. Lite-On Green Technologies (HK) Limited Lite-On Green Energy B.V. Lite-On Green Energy Kaiserslautern GmbH Kompaktsolar GmbH Romeo Tetti PV1 S.R.L Lite-On Green Energy S.R.L Lite-On Opto Technology (Changzhou) Co., Ltd. China Bridge Express (Wuxi) Co., Ltd. Lite-On Technology (Changzhou) Co., Ltd. Lite-On Opto Technology (Changzhou) Co., Ltd. Lite-On Medical Device (Changzhou) Ltd. Lite-On Automotive Holdings (Hong Kong) Co., Ltd. Lite-On, Inc. Lite-On Trading USA, Inc. Lite-On Service USA, Inc. Leotek Electronics USA LLC. Power Innovations International, Inc. Lite-On Sales & Distribution Inc. Lite-On Technology Service, Inc. Ze Poly Pte. Ltd. Lite-On China Holding Co., Ltd.	New Taipei City, Taiwan Taipei City, Taiwan Hong Kong Netherlands New Taipei City, Taiwan Singapore Kaohsiung, Taiwan Japan Netherlands Hong Kong Netherlands Oldenburg, Germany Berlin, Germany Italy Italy Changzhou, China Wuxi, China Changzhou, China Changzhou, China Changzhou, China Hong Kong USA California USA California USA USA USA USA USA Singapore British Virgin Islands	Manufacture and sale of modules and plastic products Manufacture and wholesale of electronic components and energy technology services Investment activities Market research and after-sales service Manufacture of image sensor and rectifier Investment activities Development, manufacture and sale of LCD TV inverters Development, manufacture and sale of cell phone and camera lens modules Solar energy engineering Solar energy engineering Investment activities Solar energy engineering Solar energy engineering Solar energy engineering Solar energy engineering Development, manufacture of new-type electronic components and provide technology consulting services, maintenance equipment and after-sales services Express and sale of power supplies, printers, display devices and scanners Development, manufacture, sale and installation of power supplies and transformers and provision technology consulting services, maintenance equipment and after-sales services Development, manufacture and sale of new-type electronic components and LED and provision technology consulting services, maintenance equipment and after-sales services Manufacture and sale of medical equipment Investment activities Sales data processing business of optoelectronic products and power supplies Sale of optical products After-sales service of optical products Sale of LED products Development, design and manufacture of power control and energy management Sale of optical disc drives After-sales service of optical products Manufacture and sale of thin-film solar cell Manufacture and sale of computer cases	$ 115,572 1,040,000 US$ 3,000 $ 2,126,479 - 440,974 74,538 JPY 23,340 EUR 16,020 US$ 760 EUR 11,000 EUR - EUR 401 EUR 9,847 EUR 60 CNY 85,015 CNY 36,244 CNY 332,038 CNY 503,977 CNY 30,640 HK$ 41,384 US$ 3,000 US$ 31,500 US$ 1,000 US$ 5,792 US$ 15,756 US$ 4,765 US$ 1,500 - US$ 399,441	$ 115,572 1,040,000 US$ 3,000 $ 2,126,479 - 440,974 89,694 JPY 23,340 EUR 16,020 US$ 760 EUR 11,000 EUR 25 EUR 401 EUR 9,847 EUR 60 CNY 85,015 CNY 36,244 CNY 467,038 CNY 503,977 CNY - HK$ 41,384 US$ 3,000 US$ 31,500 US$ 1,000 US$ 5,792 US$ 13,716 US$ - US$ - US$ 7,700 US$ 349,441	1,153 84,000 3,000 282 6,486 11,150 4,141 11 30 4,000 100 - 51 - 10 - - - - - 100,626 3,000 315 10 - 12,916 1 1 - 399,442	0.64 100.00 100.00 46.00 2.10 100.00 3.67 69.94 100.00 100.00 100.00 - 51.00 100.00 100.00 12.59 100.00 100.00 87.41 100.00 100.00 100.00 100.00 100.00 100.00 95.25 100.00 100.00 - 100.00	$ 109,680 258,199 3,834 263,143 203,653 318,730 32,037 38,187 215,236 (59,373) EUR 8,938 EUR - EUR - EUR 8,317 EUR 2 CNY 72,256 CNY 97,584 CNY 826,279 CNY 501,659 CNY 28,444 US$ 62,003 US$ 4,721 US$ 32,454 US$ 1,087 US$ 8,270 US$ 17,731 US$ 5,084 US$ 1,536 - US$ 827,884	$ 145,977 74,352 US$ (1,510) EUR 3,796 $ 476,872 EUR 26 $ (211,123) JPY (107,189) EUR (356) US$ (599) EUR (174) EUR - EUR - EUR (13) EUR (17) CNY 4,308 CNY 413 CNY 61,895 CNY 4,308 CNY (2,095) HK$ 63,844 US$ 530 US$ 840 US$ 9 US$ 1,257 US$ 1,110 US$ 319 US$ 36 - US$ 19,239	$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	Subsidiary Subsidiary Subsidiary Subsidiary Associate Subsidiary Associate Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary (Note 4) Associate Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary (Note 5) Subsidiary Subsidiary (Note 6) Subsidiary

(Continued)

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Lite-On Technology Corporation 2015 Annual Report‧ 160

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	Balance as	of December 31, 2015	of December 31, 2015	Net Income (Losses) of the Investee	Share of Profits/Losses of Investee	Note
				December 31, 2015	December 31, 2014	Shares (In Thousands)	Percentage of Ownership (%)	Carrying Value
LTC Group Ltd. Lite-On Technology (Europe) B.V. Lite-On Singapore Pte. Ltd. Lite-On Technology (Shanghai) Ltd. Lite-On (Finland) Oy Lite-On China Holding Co., Ltd. G&W Technology (BVI) Limited High Yield Group Co., Ltd. Lite-On Information Technology B.V. Philip & Lite-On Digital Solutions Corp. Five Dimension Co., Ltd. Silitech Technology Corp. Silitech (BVI) Holding Ltd. Silitech (Bermuda) Holding Ltd.	Titanic Capital Services Ltd. LTC International Ltd. Lite-On (Finland) Oy LiteStar JV Holding (BVI) Co., Ltd. Lite-On Automotive Electronics Mexico, S.A. DE C.V. Lite-On Intelligent Technology (Yencheng) Corp. Lite-On Mobile Oyj (formerly: Perlos Oyj) Lite-On Electronics Co., Ltd. Yet Foundate Ltd. I-Solutions Limited Fordgood Electronic Ltd. G&W Technology (BVI) Limited G&W Technology Limited Lite-On IT International (HK) Ltd. Lite-On Information Technology GmbH Philips & Lite-On Digital Solutions Germany GmbH Philips & Lite-On Digital Solutions USA Inc. Philips & Lite-On Digital Solutions Korea Ltd. Philips & Lite-On Digital Solutions Netherlands B.V. FiiDi Optical Co., Ltd. Silitech (BVI) Holding Ltd. Lite-On Japan Ltd. Silitech (Bermuda) Holding Ltd. Silitech Technology Corp. Ltd. Silitech Technology Corp. Sdn. Bhd. Silitech (Hong Kong) Holding Ltd. Silitech International (India) Private Limited	British Virgin Islands British Virgin Islands Finland British Virgin Islands Mexico Yancheng, China Finland Hong Kong Hong Kong British Virgin Islands Hong Kong British Virgin Islands Hong Kong Hong Kong Germany Germany USA South Korea Netherlands Taipei City, Taiwan British Virgin Islands Japan Bermuda Hong Kong Malaysia Hong Kong India	Investment activities Manufacture and sale of system products Manufacture and sale of mobile phone modules and design for assembly line Investment activities Production, manufacture, sale, import and export of photovoltaic device, key electronic components, telecommunications equipment, information technology equipment, semiconductor applications, general lighting, automotive electronics, renewable energy products and systems and maintenance of automotive industry Wholesale, import and export and installation of street lights, signal lights, scenery lights and new-type electronic components Manufacture and sale of mobile phone modules and design for assembly line Investment activities Manufacture of plastic and computer peripheral products Original equipment manufacturer of electronic products Import and export and real estate business Real estate management Leasing business Sale of optical disc drives Sale of optical disc drives Development and sale of modules of automotive recorders Sale of optical disc drives Sale of optical disc drives Sale and design of optical disc drives Wholesale of precision modules Investment activities Sale of LED optical products and power supplies Investment activities Manufacture of plastic and computer peripheral products Manufacture of computer peripheral products Investment activities Development, manufacture and sale of automotive parts	$ 810,662 485,514 EUR 76,674 US$ 27,000 US$ 50 CNY 19,427 EUR 196,618 US$ 360,760 CNY 73,220 US$ 1,500 US$ 13,336 US$ 3,900 US$ 65 US$ 102,400 EUR 25 $ 1,326,996 33 15,376 381,221 - US$ 95,182 JPY 197,040 US$ 95,132 US$ 8,000 US$ 5,632 US$ 77,200 US$ 3,002	$ 810,662 485,514 EUR 76,674 US$ 27,000 US$ - CNY - EUR 196,618 US$ 310,760 CNY 73,220 US$ 1,500 US$ 13,336 US$ 3,900 US$ 65 US$ 102,400 EUR 25 $ 1,326,996 33 15,376 381,221 420,000 US$ 95,182 JPY 199,981 US$ 95,132 US$ 8,000 US$ 5,632 US$ 77,200 US$ 3,002	17,655 15,120 3 2 - - 52,937 2,966,233 68,430 1,500 105,450 3,900 500 102,400 - - 1 18 15 - 95,182 980 95,132 62,400 21,400 77,200 4,173	100.00 100.00 100.00 20.19 1.00 100.00 100.00 100.00 100.00 100.00 100.00 50.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 - 100.00 7.87 100.00 100.00 100.00 100.00 100.00	US$ 10,240 US$ 10,835 EUR 12,978 US$ 27,247 US$ 31 CNY 22,094 EUR 12,687 US$ 783,816 US$ 18,140 US$ 1,500 US$ 13,513 US$ 3,983 US$ 788 US$ 211,250 EUR 39 $ 875,935 229,568 32,214 47,397 JPY - $ 3,811,632 71,595 US$ 113,562 US$ 34,832 US$ 10,867 US$ 59,079 US$ 1,404	US$ 5,512 US$ 355 EUR 3,720 $ 172,933 MXN (22,049) CNY 2,667 EUR 4,172 HK$ 161,809 CNY 14,312 US$ - HK$ 3,719 US$ 175 US$ 272 US$ 16,629 EUR 1 EUR (1,446) US$ 694 KRW 42,424 EUR 21 $ - US$ 5,789 JPY 136,647 US$ 5,566 CNY 6,973 MYR 12,748 CNY 4,633 INR 2,627	$ - - - - - - - - - - - - - - - - - - - - - - - - - - -	Subsidiary Subsidiary Subsidiary Associate Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary (Note 7) Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary

(Continued)

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Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	Balance as	of December 31, 2015	of December 31, 2015	Net Income (Losses) of the Investee	Share of Profits/Losses of Investee	Note
				December 31, 2015	December 31, 2014	Shares (In Thousands)	Percentage of Ownership (%)	Carrying Value
Lite-On Japan Ltd. Lite-On Japan (H.K.) Limited Lite-On Mobile Oyj (formerly: Perlos Oyj) Lite-On Mobile Pte. Ltd. Guangzhou Lite-On Mobile Electronic Components Co., Ltd.	Lite-On Japan (S) Pte. Ltd. L&K Industries Philippines, Inc. Lite-On Japan (H.K.) Limited Lite-On Japan (Korea) Co., Ltd. Lite-On Japan (Thailand) Co., Ltd. NL (Shanghai) Co., Ltd. Lite-On Mobile Sweden AB Lite-On Mobile Indústria e Comércio de Plásticos Ltda. Lite-On Mobile Indústria e Comércio de Plásticos Ltda. Perlos Precision Plastics Moulding Limited Liability Company Lite-On Mobile India Private Limited. Lite-On Young Fast Pte. Ltd. Yamada-Lom Fabricacao De Artefatos De Material Plastico Ltda. Yantai Lite-On Mobile Electronic Components Co., Ltd.	Singapore Philippines Hong Kong South Korea Thailand China Sweden Brazil Brazil Hungary India Singapore Brazil Yantai, China	Import and export business of electronic components Import and export business of electronic components Import and export business of electronic components Import and export business of electronic components Import and export business of electronic components Import and export business of electronic components Manufacture and sale of mobile phone modules and design for assembly line Manufacture and sale of mobile phone modules and design for assembly line Manufacture and sale of mobile phone modules and design for assembly line Manufacture and sale of mobile phone modules and design for assembly line Manufacture and sale of mobile phone modules and design for assembly line Investment activities Manufacture and sale of mobile phone modules and design for assembly line Manufacture and sale of mobile phone modules and design for assembly line	JPY 68,811 JPY 261,944 JPY 70,000 JPY 22,593 JPY 65,939 JPY 35,655 EUR 20,551 EUR 2,509 US$ 104,702 US$ 733 US$ 18,508 US$ 7,864 US$ 540 CNY 20,000	JPY 68,811 JPY 261,944 JPY 70,000 JPY 22,593 JPY 65,939 JPY 35,655 EUR 20,551 EUR 2,509 US$ 97,802 US$ 733 US$ 18,508 US$ 7,864 US$ 540 CNY 20,000	988 1,000 50 20 200 30 20 6,507 200,490 - 59,095 10 - -	100.00 100.00 100.00 100.00 100.00 100.00 100.00 3.14 96.86 100.00 100.00 100.00 25.00 100.00	JPY 68,811 JPY 261,944 JPY 70,000 JPY 22,593 JPY 65,939 JPY 35,655 EUR 291 EUR 234 US$ 8,150 US$ 3,796 US$ (9,652) US$ 3,507 US$ (44) CNY 27,045	JPY (7,407) JPY 118,901 JPY 51,534 JPY - JPY 70,576 JPY 29,215 SEK 585 BRL (25,231) BRL (25,231) EUR 83 INR (1,399,984) US$ 1,002 BRL (815) CNY 7,178	$ - - - - - - - - - - - - - -	Subsidiary (Note 8) Subsidiary (Note 8) Subsidiary (Note 8) Subsidiary (Note 8) Subsidiary (Notes 8 and 9) Subsidiary (Note 8) Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Associate Subsidiary

Note 1: Lite-On IT Singapore Pte. Ltd. was dissolved after merging with Lite-On Singapore Pte. in January 2015.

Note 2: Lite-On Automotive North America Inc. was dissolved after liquidation in May 2015.
Note 3: Lar View Technologies Corp. (Samoa) was dissolved after liquidation in November 2015.
Note 4: Lite-On Green Energy Kaiserslautern GmbH was dissolved after liquidation in September 2015.
Note 5: The Group reorganized its structure and Lite-On Sales & Distribution Inc. became directly held by Lite-On Technology USA, Inc.

Note 6: Ze Poly Pte. Ltd. was dissolved after liquidation in September 2015.

Note 7: FiiDi Optical Co., Ltd. was dissolved after liquidation in April 2015.

Note 8: Investment income/losses and adjustment for changes in equities for using equity method recognized by Lite-On Japan Ltd.

Note 9: The Group reorganized its structure and Lite-On Japan (Thailand) Co., Ltd. became directly held by Lite-On Japan Ltd.

Note 10: Please refer to Table 8 for information on investment in Mainland China.

(Concluded)

163 ‧Lite-On Technology Corporation 2015 Annual Report

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Lite-On Technology Corporation 2015 Annual Report‧

TABLE 8

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENT IN MAINLAND CHINA FOR THE YEAR ENDED DECEMBER 31, 2015

(Amounts in Thousands of New Taiwan Dollars or Thousands of Foreign Currencies)

Investor Company	Investee Company	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2015	Investment of Flows	Investment of Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2015	Net Income (Losses) of the Investee Company (Note 2)	Percentage of Ownership	Share of Profits/Losses (Note 2)	Carrying Amount as of December 31, 2015	Accumulated Inward Remittance of Earnings as of December 31, 2015	Note
						Outflow	Inflow
Lite-On Technology Corporation	Lite-On Computer Tech (Dongguan) Co., Ltd. DongGuan G-Pro Computer Co., Ltd. Lite-On Electronics (Tianjinn) Co., Ltd. Lite-On Electronics (Dongguan) Co., Ltd. Silitek Elec. (Dongguan) Co., Ltd. Lite-On Electronics (Guangzhou) Co., Ltd. China Bridge (China) Co., Ltd. Lite-On Network Communication (Dongguan) Limited Lite-On Communications (Guangzhou) Co., Ltd. Dong Guan G-Tech Computers Co., Ltd. Lite-On Tech (Guangzhou) Co., Ltd. COMMIT Incorporated Lite-On Elec and Wire (Guangzhou) Co., Ltd. Lite-On (Guangzhou) Infortech Co., Ltd. Lite-On (Guangzhou) Precision Tooling Co., Ltd. Lite-On Digital Electronics (Dongguan) Co., Ltd. Lite-On Power Technology (Chang Zhou) Co., Ltd. Lite-On Li Shin Technology (Ganzhou) Co., Ltd. Lite-On Technology (Xianging) Co., Ltd. Lite-On Electronics (Jiangsu) Co., Ltd. Lite-On Technology (Guangzhou) Investment Co., Ltd. Lite-On Technology (Ying Tan) Co., Ltd. Lite-On Power Technology (Dongguan) Co., Ltd.	Manufacture and sale of display device Manufacture and sale of system products ODM services Manufacture of electronic components Manufacture and sale of keyboards Manufacture and sale of printers and scanners Investment, sales agent Manufacture and sale of IT products Manufacture and sale of mobile terminal equipment Manufacture and sale of computer case Manufacture and sale of computer case Manufacture and sale of application software and multimedia product design Manufacture and sale of mobile terminal equipment Information outsourcing Manufacture and sale of modules Manufacture and sale of computer peripheral products Manufacture and sale of new-type electronic components and peripheral materials Manufacture and sale of electronic components Manufacture and sale of electronic components Development, manufacture, sale and installation of power supplies and transformers and provision of technology consulting services, maintenance equipment and precision instruments Investment activities Manufacture and sale of electronic components Development, manufacture and sale of electronic components, power supplies and provision technology consulting services	$ 537,510 (US$ 16,400 ) 747,303 (US$ 22,801 ) 2,179,538 (US$ 66,500 ) 1,160,235 (US$ 35,400 ) 157,320 (US$ 4,800 ) 1,199,565 (US$ 36,600 ) 974,892 (US$ 29,745 ) 464,422 (US$ 14,170 ) 804,954 (US$ 24,560 ) 376,913 (US$ 11,500 ) 1,088,130 (US$ 33,200 ) 1,051,619 (US$ 32,086 ) 518,173 (US$ 15,810 ) 41,624 (US$ 1,270 ) 596,505 (US$ 18,200 ) 98,325 (US$ 3,000 ) 551,276 (US$ 16,820 ) 393,300 (US$ 12,000 ) 213,038 (US$ 6,500 ) 4,949,025 (US$ 151,000 ) 983,250 (US$ 30,000 ) 360,525 (US$ 11,000 ) 523,482 (US$ 15,972 )	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	$ 933,071 (US$ 28,469 ) 747,303 (US$ 22,801 ) 2,179,472 (US$ 66,498 ) 1,160,235 (US$ 35,400 ) 157,320 (US$ 4,800 ) 1,199,565 (US$ 36,600 ) 974,892 (US$ 29,745 ) 464,422 (US$ 14,170 ) 804,954 (US$ 24,560 ) 376,913 (US$ 11,500 ) 1,088,130 (US$ 33,200 ) 19,665 (US$ 600 ) 518,173 (US$ 15,810 ) 76,825 (US$ 2,344 ) 399,855 (US$ 12,200 ) 98,325 (US$ 3,000 ) 589,426 (US$ 17,984 ) 437,087 (US$ 13,336 ) 213,038 (US$ 6,500 ) 4,785,150 (US$ 146,000 ) 983,250 (US$ 30,000 ) 360,525 (US$ 11,000 ) 523,482 (US$ 15,972 )	$ - - - - - - - - - - - - - - - - - - - 163,875 (US$ 5,000 ) 1,638,750 (US$ 50,000 ) - -	$ - - - - - - - - - - - - - - - - - - - - - - -	$ 933,071 (US$ 28,469 ) 747,303 (US$ 22,801 ) 2,179,472 (US$ 66,498 ) 1,160,235 (US$ 35,400 ) 157,320 (US$ 4,800 ) 1,199,565 (US$ 36,600 ) 974,892 (US$ 29,745 ) 464,422 (US$ 14,170 ) 804,954 (US$ 24,560 ) 376,913 (US$ 11,500 ) 1,088,130 (US$ 33,200 ) 19,665 (US$ 600 ) 518,173 (US$ 15,810 ) 76,825 (US$ 2,344 ) 399,855 (US$ 12,200 ) 98,325 (US$ 3,000 ) 589,426 (US$ 17,984 ) 437,087 (US$ 13,336 ) 213,038 (US$ 6,500 ) 4,949,025 (US$ 151,000 ) 2,622,000 (US$ 80,000 ) 360,525 (US$ 11,000 ) 523,482 (US$ 15,972 )	$ (14,656 ) (CNY -2,898 ) 200,336 (CNY 39,614 ) 213,459 (CNY 42,209 ) 80,212 (CNY 15,861 ) 186,080 (CNY 36,795 ) 629,353 (CNY 124,447 ) (80,617 ) (CNY -15,941 ) 240,333 (CNY 47,523 ) - 86,402 (CNY 17,085 ) - - - 7,131 (CNY 1,410 ) - 4,516 (CNY 893 ) 24,391 (CNY 4,823 ) 15,455 (CNY 3,056 ) (41,201 ) (CNY -8,147 ) 317,754 (CNY 62,832 ) (92,122 ) (CNY -18,216 ) 22,231 (CNY 4,396 ) (165,552 ) (CNY -32,736 )	100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 1.87 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00	$ (14,656 ) (CNY -2,898 ) 200,336 (CNY 39,614 ) 213,459 (CNY 42,209 ) 80,212 (CNY 15,861 ) 186,080 (CNY 36,795 ) 629,353 (CNY 124,447 ) (80,617 ) (CNY -15,941 ) 240,333 (CNY 47,523 ) - 86,402 (CNY 17,085 ) - - - 7,131 (CNY 1,410 ) - 4,516 (CNY 893 ) 24,391 (CNY 4,823 ) 15,455 (CNY 3,056 ) (41,201 ) (CNY -8,147 ) 317,754 (CNY 62,832 ) (92,122 ) (CNY -18,216 ) 22,231 (CNY 4,396 ) (165,552 ) (CNY -32,736 )	$ 495,741 (HK$ 117,227 ) 892,903 (HK$ 211,143 ) 2,981,831 (HK$ 705,108 ) 1,236,129 (HK$ 292,305 ) 1,482,132 (HK$ 350,477 ) 14,396,711 (HK$ 3,404,363 ) 1,375,725 (HK$ 325,315 ) 1,208,209 (HK$ 285,703 ) - 744,379 (HK$ 176,022 ) - - - 178,967 (HK$ 42,320 ) - 95,704 (HK$ 22,631 ) - 367,445 (HK$ 86,889 ) 140,998 (US$ 4,302 ) 8,020,151 (HK$ 1,896,510 ) 2,561,931 (HK$ 605,815 ) 444,265 (US$ 13,555 ) 836,163 (HK$ 197,726 )	$ - - - - - - - - - - - - - - - - - - - - - - -	Note 3 Note 3 Note 3 Note 3 Note 3

(Continued)

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Investor Company	Investee Company	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2015	Investment of Flows	Investment of Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2015	Net Income (Losses) of the Investee Company (Note 2)	Percentage of Ownership	Share of Profits/Losses (Note 2)	Carrying Amount as of December 31, 2015	Accumulated Inward Remittance of Earnings as of December 31, 2015	Note
						Outflow	Inflow
Lite-On Technology Corporation Philip & Lite-On Digital Solutions Corp. Silitech Technology Corp.	Beijing Lite-On Mobile Electronic and Telecommunication Components Co., Ltd. Guangzhou Lite-On Mobile Engineering Plastics Co., Ltd. Guangzhou Lite-On Mobile Electronic Components Co., Ltd. Shenzhen Lite-On Mobile Precision Molds Co., Ltd. Zhuhai Lite-On Mobile Technology Company Ltd. Lite-On Young Fast (Huizhou) Co., Ltd. Lite-on Green Technologies (Nanjing) Corporation Changzhou Binhu Thin Film Solar Greenhouse Co., Ltd. Epricrystal (Changzhou) Co., Ltd. Dongguan Lite-On Computer Co., Ltd. Huizhou Li Shin Electronic Co., Ltd. Huizhou Fu Tai Electronic Co., Ltd. Li Shin Technology (Huizhou) Ltd. Lite-On Opto Technology (Guangzhou) Co., Ltd. Lite-On Auto Electric Technology (Guangzhou) Ltd. Lite-On IT Opto Tech (BH) Co., Ltd. Lite-On Automotive (Wuxi) Co., Ltd. Lite-On Automotive Electronics (Guangzhou) Co., Ltd. Changzhou Leotek New Energy Trade Limited LarView Technologies Corp. (Shenzhen) Lite-On Technology (Shanghai) Ltd. Philip & Lite-On Digital Solutions (Shanghai) Co., Ltd. Xurong Electronic (Shenzhen) Co., Ltd. Silitech Technology (SuZhou) Co., Ltd. SuZhou Xulong Mold Producing Co., Ltd.	Manufacture and sale of mobile phone modules and design for assembly line Manufacture and sale of mobile phone modules and design for assembly line Manufacture and sale of mobile phone modules and design for assembly line Manufacture and sale of mobile phone modules and design for assembly line Manufacture and sale of mobile phone modules and design for assembly line Modules of touch panels Solar energy engineering Manufacture and sale of solar energy engineering Manufacture, design and sale of light-emitting diode products Manufacture and sale of computer hosts and components Manufacture of computer peripheral products Manufacture of computer peripheral products Manufacture and sale of new-type electronic components and peripheral materials Manufacture and sale of optical disc drives Manufacture and sale of optical disc drives Manufacture and sale of optical disc drives Manufacture, sale and processing of electronic products Manufacture, sale and processing of electronic products Wholesale, import and export and installation of street lights, signal lights, scenery lights and new-type electronic components Camera modules Manufacture and sale of energy saving equipment Sale of optical disc drives Manufacture of automotive parts, touch panels and plastic & rubber assembly Manufacture and sale of automotive parts Development, manufacture and sale of precision modules and new-type electronic components (chip components, testing elements, hybrid integrated circuits)	$ 524,400 (US$ 16,000 ) 641,407 (US$ 19,570 ) 1,314,278 (US$ 40,100 ) 270,650 (HK$ 64,000 ) 609,681 (US$ 18,602 ) 327,750 (US$ 10,000 ) 24,581 (US$ 750 ) 303,377 (CNY 59,950 ) 4,588,500 (US$ 140,000 ) 65,550 (US$ 2,000 ) 206,728 (US$ 6,308 ) 31,748 (US$ 969 ) 196,650 (US$ 6,000 ) 1,409,325 (US$ 43,000 ) 65,550 (US$ 2,000 ) 1,802,625 (US$ 55,000 ) 163,875 (US$ 5,000 ) 203,205 (US$ 6,200 ) 32,775 (US$ 1,000 ) 6,555 (US$ 200 ) 2,130,375 (US$ 65,000 ) 32,775 (US$ 1,000 ) 91,890 (US$ 2,800 ) 2,559,804 (US$ 78,000 ) 147,681 (US$ 4,500 )	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	$ 1,716,230 (US$ 52,364 ) 2,970,300 (US$ 90,627 ) 3,780,662 (US$ 115,352 ) 427,746 (US$ 13,051 ) 508,963 (US$ 15,529 ) 213,038 (US$ 6,500 ) 24,581 (US$ 750 ) 98,227 (US$ 2,997 ) 884,925 (US$ 27,000 ) 65,550 (US$ 2,000 ) 133,361 (US$ 4,069 ) 2,130 (US$ 65 ) - 1,409,325 (US$ 43,000 ) 65,550 (US$ 2,000 ) 1,802,625 (US$ 55,000 ) 163,875 (US$ 5,000 ) 192,389 (US$ 5,870 ) 32,775 (US$ 1,000 ) 6,555 (US$ 200 ) - 32,775 (US$ 1,000 ) 203,354 2,559,804 (US$ 78,000 ) -	$ - - - - - - - - - - - - - - - - - - - - 2,130,375 (US$ 65,000 ) - - - -	$ - - - - - - - - - - - - - - - - - - - 3,147 (US$ 96 ) - - - - -	$ 1,716,230 (US$ 52,364 ) 2,970,300 (US$ 90,627 ) 3,780,662 (US$ 115,352 ) 427,746 (US$ 13,051 ) 508,963 (US$ 15,529 ) 213,038 (US$ 6,500 ) 24,581 (US$ 750 ) 98,227 (US$ 2,997 ) 884,925 (US$ 27,000 ) 65,550 (US$ 2,000 ) 133,361 (US$ 4,069 ) 2,130 (US$ 65 ) - 1,409,325 (US$ 43,000 ) 65,550 (US$ 2,000 ) 1,802,625 (US$ 55,000 ) 163,875 (US$ 5,000 ) 192,389 (US$ 5,870 ) 32,775 (US$ 1,000 ) 3,408 (US$ 104 ) 2,130,375 (US$ 65,000 ) 32,775 (US$ 1,000 ) 203,354 2,559,804 (US$ 78,000 ) -	$ (508,233 ) (CNY -100,497 ) 74,270 (CNY 14,686 ) 78,179 (CNY 15,459 ) (5,770 ) (CNY -1,141 ) (144,955 ) (CNY -28,663 ) 30,262 (CNY 5,984 ) (18,843 ) (CNY -3,726 ) - 184,042 (CNY 36,392 ) 57,738 (CNY 11,417 ) 36,194 (CNY 7,157 ) 3,677 (CNY 727 ) 5,871 (CNY 1,161 ) (118,723 ) (CNY -23,476 ) 4,410 (CNY 872 ) 636,241 (CNY 125,809 ) 110,070 (CNY 21,765 ) 149,648 (CNY 29,591 ) (15,055 ) (CNY -2,977 ) - 177,852 (CNY 35,168 ) 21,700 (CNY 4,291 ) 100,752 (CNY 19,889 ) 16,332 (CNY 3,224 ) (111,481 ) (CNY -22,007 )	100.00 100.00 100.00 100.00 100.00 100.00 100.00 19.90 22.40 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 60.00	$ (508,233 ) (CNY -100,497 ) 74,270 (CNY 14,686 ) 78,179 (CNY 15,459 ) (5,770 ) (CNY -1,141 ) (144,955 ) (CNY -28,663 ) 30,262 (CNY 5,984 ) (18,843 ) (CNY -3,726 ) - 41,231 (CNY 8,153 ) 57,738 (CNY 11,417 ) 36,194 (CNY 7,157 ) 3,677 (CNY 727 ) 5,871 (CNY 1,161 ) (118,723 ) (CNY -23,476 ) 4,410 (CNY 872 ) 636,241 (CNY 125,809 ) 110,070 (CNY 21,765 ) 149,648 (CNY 29,591 ) (15,055 ) (CNY -2,977 ) - 177,852 (CNY 35,168 ) 21,700 (CNY 4,291 ) 100,752 (CNY 19,889 ) 16,332 (CNY 3,224 ) (66,888 ) (CNY -13,204 )	$ 1,182,522 (US$ 36,080 ) 1,911,897 (US$ 58,334 ) 4,387,009 (US$ 133,852 ) 489,331 (US$ 14,930 ) 1,723,156 (CNY 340,511 ) (18,911 ) (US$ -577 ) (65,124 ) (US$ -1,987 ) 4,589 (US$ 140 ) 957,158 (CNY 189,143 ) 106,589 (CNY 21,063 ) 629,411 (US$ 19,204 ) 67,320 (US$ 2,054 ) 451,934 (US$ 13,789 ) 2,722,980 (US$ 83,081 ) 141,719 (US$ 4,324 ) 4,003,565 (US$ 122,153 ) 635,959 (HK$ 150,384 ) 1,395,359 (HK$ 329,958 ) 14,458 (CNY 2,857 ) - 2,307,753 (US$ 70,412 ) 513,408 1,070,118 (CNY 211,327 ) 1,835,222 (CNY 362,420 ) 13,986 (CNY 2,762 )	$ - - - - - - - - - - - - - - - - - - - - - - 114,895 (CNY 22,681 ) - -	Note 4 Note 5

Accumulated Investment in Mainland China as of December 31, 2015		Investment Amounts Authorized by InvestmentCommission, MOEA		Upper	Limit on Investment
$37,519,738 (US$1,144,767)		$38,410,661 (US$1,171,950)			Note 6

(Continued)

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Lite-On Technology Corporation 2015 Annual Report‧

Note 1: Indirect investment in Mainland China through holding companies.

Note 2: Amount was recognized based on the audited financial statements.
Note 3: Lite-On Electronics (Guangzhou) Co., Ltd. merged with Lite-On Tech (Guangzhou) Co., Ltd., Lite-On (Guangzhou) Precision Tooling Co., Ltd., Lite-On Communications (Guangzhou) Co., Ltd. and Lite-On Elec and Wire (Guangzhou) Co., Ltd., with the Lite-On Electronics (Guangzhou) Co., Ltd. as the survivor entity. Because the merging process was still under way as of December 31, 2015, the change in the amount of investment in Mainland China has not yet been registered with the Ministry of Economic Affairs.
Note 4: Zhuhai Lite-On Mobile Technology Company Ltd. reorganized its structure on March 5, 2015; thus Lite-On Technology (Guangzhou) Investment Co., Ltd. wholly acquired Zhuhai Lite-On Mobile Technology Company Ltd. and injected its own funds CNY 461,665 thousand in the same year in July.
Note 5: LarView Technologies Corp. (Shenzhen) completed its liquidation in July 2015.

Note 6: Under Order No. 09704604680 and Order No. 10420404350 issued by the Ministry of Economic Affairs, R.O.C. on August 29, 2008 and February 16, 2015, respectively, the Parent Company acquired a certification-approved by the Industrial Development Bureau and valid from February 9, 2015 to February 8, 2018 - of its status as operation headquarters in the ROC. Thus, the Parent Company has no limitation on the amount of investing in Mainland China.

(Concluded)

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ABLE 9

LITE-ON TECHNOLOGY CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 2015

(Amounts in Thousands of New Taiwan Dollars)

No. (Note 1)	Company Name	Counter Party	Nature of Relationship (Note 2)		Intercompany Transaction	Intercompany Transaction
				Financial Statements Item	Amount	Terms	% of Consolidated Net Revenue or Total Assets (Note 3)
0	Lite-On Technology Corporation	Philip & Lite-On Digital Solutions Corp. Philip & Lite-On Digital Solutions Corp. Philip & Lite-On Digital Solutions Corp. Lite-On Technology (Changzhou) Co., Ltd. Lite-On Technology (Changzhou) Co., Ltd. Lite-On Technology (Changzhou) Co., Ltd. Lite-On Technology (Changzhou) Co., Ltd. LET (HK) Ltd. LET (HK) Ltd. China Bridge Express (Wuxi) Co., Ltd. China Bridge Express (Wuxi) Co., Ltd. Titanic Capital Services Ltd. Titanic Capital Services Ltd. Lite-On Electronics (Guangzhou) Co., Ltd. Lite-On Singapore Pte. Ltd. Lite-On Singapore Pte. Ltd. Lite-On Singapore Pte. Ltd. Lite-On Singapore Pte. Ltd. Lite-On Singapore Pte. Ltd. Lite-On Japan Ltd. Lite-On Japan Ltd. Lite-On Trading USA, Inc. Lite-On Trading USA, Inc. Lite-On Sales & Distribution Inc. Lite-On Sales & Distribution Inc. Philips & Lite-On Digital Solutions USA Inc. Lite-On Overseas Trading Co., Ltd. Lite-On Overseas Trading Co., Ltd. Lite-On Overseas Trading Co., Ltd. Lite-On China Holding Co., Ltd. Lite-On China Holding Co., Ltd. Li Shin International Enterprise Corp. Li Shin International Enterprise Corp. Lite-On Automotive Electronics (Guangzhou) Co., Ltd. Lite-On Automotive Electronics (Guangzhou) Co., Ltd.	a. a. a. a. a. a. a. a. a. a. a. a. a. a. a. a. a. a. a. a. a. a. a. a. a. a. a. a. a. a. a. a. a. a. a.	Sales Accounts receivable Other receivables Sales Accounts receivable Purchases Accounts payable Purchases Accounts payable Sales Accounts receivable Other receivables Other payables Disposal of property, plant and equipment Sales Accounts receivable Other receivables Purchases Accounts payable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Other receivables Accounts receivable Purchases Accounts payable Sales Accounts receivable Purchases Accounts payable Purchases Accounts payable	$ 12,810,242 4,214,601 229,265 1,163,932 479,631 1,519,674 521,929 10,040,910 853,098 826,743 304,660 132,038 435,879 357,116 4,697,862 899,640 166,969 24,766,587 8,193,189 861,796 164,723 3,295,462 1,082,305 128,049 129,288 100,098 3,575,995 57,023,431 8,115,555 141,230 142,250 3,531,460 829,029 735,033 264,241	Cost-plus pricing Cost-plus pricing No significant difference Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing No significant difference No significant difference No significant difference Cost-plus pricing Cost-plus pricing No significant difference Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing No significant difference Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing	6 2 - 1 - 1 - 5 - - - - - - 2 - - 11 4 - - 2 1 - - - 2 26 4 - - 2 - - -
							(Continued)

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No. (Note 1)	Company Name	Counter Party	Nature of Relationship (Note 2)		Intercompany Transaction	Intercompany Transaction
				Financial Statements Item	Amount	Terms	% of Consolidated Net Revenue or Total Assets (Note 3)
1	Lite-On Electronics (Tianjinn) Co., Ltd.	Lite-On Overseas Trading Co., Ltd. Lite-On Overseas Trading Co., Ltd. Lite-On Opto Technology (Guangzhou) Co., Ltd.	c. c. c.	Sales Accounts receivable Other receivables	$ 1,669,705 301,145 257,316	Cost-plus pricing Cost-plus pricing No significant difference	1 - -
2	Lite-On Network Communication (Dongguan) Limited	Lite-On Overseas Trading Co., Ltd. Lite-On Overseas Trading Co., Ltd. China Bridge Express (Wuxi) Co., Ltd. China Bridge Express (Wuxi) Co., Ltd.	c. c. c. c.	Sales Accounts receivable Sales Accounts receivable	7,422,514 1,009,696 244,867 101,682	Cost-plus pricing No significant difference Cost-plus pricing No significant difference	3 - - -
3	Lite-On Opto Technology (Changzhou) Co., Ltd.	Changzhou Leotek New Energy Trade Limited Lite-On Singapore Pte. Ltd. Lite-On Singapore Pte. Ltd.	c. c. c.	Other receivables Sales Accounts receivable	177,252 3,189,894 173,523	No significant difference Cost-plus pricing No significant difference	- 1 -
4	Lite-On Li Shin Technology (Ganzhou) Co., Ltd.	Li Shin International Enterprise Corp. Li Shin International Enterprise Corp.	c. c.	Sales Accounts receivable	578,563 224,556	Cost-plus pricing Cost-plus pricing	- -
5	Lite-On Technology (Changzhou) Co., Ltd.	Lite-On Singapore Pte. Ltd. Lite-On Singapore Pte. Ltd. Lite-On Overseas Trading Co., Ltd. Lite-On Overseas Trading Co., Ltd. Zhuhai Lite-On Mobile Technology Co., Ltd.	c. c. c. c. c.	Sales Accounts receivable Sales Accounts receivable Other receivables	13,803,594 1,122,616 8,782,083 661,207 1,280,305	Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing No significant difference	6 1 4 - 1
6	Lite-On Technology (Ying Tan) Co., Ltd.	Li Shin International Enterprise Corp. Li Shin International Enterprise Corp.	c. c.	Sales Accounts receivable	752,158 231,985	Cost-plus pricing Cost-plus pricing	- -
7	Lite-On Technology (Xianging) Co., Ltd.	Li Shin International Enterprise Corp. Li Shin International Enterprise Corp.	c. c.	Sales Accounts receivable	577,179 103,926	Cost-plus pricing Cost-plus pricing	- -
8	Lite-On Technology (Shanghai) Ltd.	Philip & Lite-On Digital Solutions (Shanghai) Co., Ltd.	c.	Sales	635,528	Cost-plus pricing	-
9	China Bridge Express (Wuxi) Co., Ltd.	Lite-On Technology (Changzhou) Co., Ltd.	c.	Sales	183,438	Cost-plus pricing	-
10	Lite-On Electronics (Dongguan) Co., Ltd.	Lite-On Overseas Trading Co., Ltd. Lite-On Overseas Trading Co., Ltd.	c. c.	Sales Accounts receivable	12,605,138 1,107,114	Cost-plus pricing Cost-plus pricing	6 1
11	Silitek Elec. (Dongguan) Co., Ltd.	Lite-On Overseas Trading Co., Ltd. Lite-On Overseas Trading Co., Ltd.	c. c.	Sales Accounts receivable	8,704,470 1,199,503	Cost-plus pricing Cost-plus pricing	4 1
12	Lite-On Power Technology (Dongguan) Co., Ltd.	Lite-On Electronics Co., Ltd.	c.	Sales	1,483,284	Cost-plus pricing	1

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No. (Note 1)	Company Name	Counter Party	Nature of Relationship (Note 2)		Intercompany Transaction	Intercompany Transaction
				Financial Statements Item	Amount	Terms	% of Consolidated Net Revenue or Total Assets (Note 3)
13	Lite-On Electronics H.K. Ltd.	Lite-On Overseas Trading Co., Ltd.	c.	Sales	$ 154,125	Cost-plus pricing	-
14	Lite-On Electronics Co., Ltd.	Lite-On Singapore Pte. Ltd.	c.	Sales	1,483,284	Cost-plus pricing	1
15	Dong Guan G-Tech Computers Co., Ltd.	Lite-On Electronics (Guangzhou) Co., Ltd. Lite-On Overseas Trading Co., Ltd. Lite-On Overseas Trading Co., Ltd.	c. c. c.	Sales Sales Accounts receivable	265,491 3,054,784 311,575	Cost-plus pricing Cost-plus pricing Cost-plus pricing	- 1 -
16	Huizhou Li Shin Electronic Co., Ltd.	Li Shin International Enterprise Corp. Li Shin International Enterprise Corp.	c. c.	Sales Accounts receivable	1,567,066 434,320	Cost-plus pricing Cost-plus pricing	1 -
17	DongGuan G-Pro Computer Co., Ltd.	Lite-On Overseas Trading Co., Ltd.	c.	Sales	6,514,823	Cost-plus pricing	3
18	Lite-On Electronics (Guangzhou) Co., Ltd.	Dong Guan G-Tech Computers Co., Ltd. Lite-On Overseas Trading Co., Ltd. Lite-On Overseas Trading Co., Ltd.	c. c. c.	Sales Sales Accounts receivable	140,509 39,788,218 6,627,863	Cost-plus pricing Cost-plus pricing No significant difference	- 18 3
19	Lite-On Opto Technology (Guangzhou) Co., Ltd.	Lite-On Auto Electric Technology (Guangzhou) Ltd. LET (HK) Ltd. LET (HK) Ltd.	c. c. c.	Sales Sales Accounts receivable	101,562 2,992,426 646,403	Cost-plus pricing Cost-plus pricing Cost-plus pricing	- 1 -
20	Lite-On Auto Electric Technology (Guangzhou) Ltd.	Lite-On Technology (Shanghai) Ltd. Philip & Lite-On Digital Solutions (Shanghai) Co., Ltd.	c. c.	Sales Sales	477,351 280,499	Cost-plus pricing Cost-plus pricing	- -
21	Lite-On IT Opto Tech (BH) Co., Ltd.	LET (HK) Ltd. LET (HK) Ltd.	c. c.	Sales Accounts receivable	17,591,910 1,516,402	Cost-plus pricing Cost-plus pricing	8 1
22	LET (HK) Ltd.	Lite-On Opto Technology (Guangzhou) Co., Ltd. Lite-On Opto Technology (Guangzhou) Co., Ltd. Lite-On Auto Electric Technology (Guangzhou) Ltd. Lite-On IT Opto Tech (BH) Co., Ltd. Lite-On IT Opto Tech (BH) Co., Ltd. Lite-On Singapore Pte. Ltd. Lite-Space Technology Company Limited Lite-Space Technology Company Limited	c. c. c. c. c. c. c. c.	Sales Accounts receivable Sales Sales Accounts receivable Sales Purchases Accounts payable	1,494,368 691,681 232,412 12,234,874 5,044,250 9,698,066 3,761,826 257,850	Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing	1 - - 6 2 4 1 -
23	Lite-On Electronics (Thailand) Co., Ltd.	Lite-On Singapore Pte. Ltd. Lite-On Singapore Pte. Ltd.	c. c.	Sales Accounts receivable	3,148,388 736,127	Cost-plus pricing Cost-plus pricing	1 -
							(Continued)

176

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No. (Note 1)	Company Name	Counter Party	Nature of Relationship (Note 2)		Intercompany Transaction	Intercompany Transaction
				Financial Statements Item	Amount	Terms	% of Consolidated Net Revenue or Total Assets (Note 3)
24	Lite-On Singapore Pte. Ltd.	Lite-On Technology (Changzhou) Co., Ltd. China Bridge Express (Wuxi) Co., Ltd. China Bridge Express (Wuxi) Co., Ltd. Lite-On Electronics H.K. Ltd. Lite-On Electronics H.K. Ltd. Lite-On Japan Ltd. Lite-On Japan Ltd. Lite-On, Inc. Lite-On, Inc. Lite-On Trading USA, Inc. Lite-On Trading USA, Inc. Leotek Electronics USA LLC Leotek Electronics USA LLC Lite-On Sales & Distribution Inc. Lite-On Sales & Distribution Inc. Philips & Lite-On Digital Solutions USA Inc. Philips & Lite-On Digital Solutions USA Inc. Philips & Lite-On Digital Solutions Germany GmbH Philips & Lite-On Digital Solutions Germany GmbH Lite-On Overseas Trading Co., Ltd. Lite-On Overseas Trading Co., Ltd. Lite-On Mobile Pte. Ltd.	c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.	Sales Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Other receivables	$ 206,086 1,146,671 500,853 2,059,526 391,471 1,559,866 536,939 621,231 136,069 4,725,589 1,605,131 1,405,437 532,180 570,405 206,718 9,918,059 1,449,385 1,836,539 291,208 382,058 643,670 1,311,501	Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing No significant difference	- 1 - 1 - 1 - - - 2 1 1 - - - 5 1 1 - - - 1
25	G&W Technology (BVI) Limited	G&W Technology Limited	c.	Other receivables	178,546	No significant difference	-
26	Lite-On Overseas Trading Co., Ltd.	Lite-On Network Communication (Dongguan) Limited Lite-On Network Communication (Dongguan) Limited Lite-On Technology (Changzhou) Co., Ltd. Lite-On Technology (Changzhou) Co., Ltd. Lite-On Electronics (Dongguan) Co., Ltd. Lite-On Electronics (Dongguan) Co., Ltd. Silitek Elec. (Dongguan) Co., Ltd. Silitek Elec. (Dongguan) Co., Ltd. Dong Guan G-Tech Computers Co., Ltd. Dong Guan G-Tech Computers Co., Ltd.	c. c. c. c. c. c. c. c. c. c.	Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable	6,369,124 1,770,962 15,216,534 5,335,946 11,171,663 1,211,482 6,835,674 656,886 1,968,661 645,524	Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing	3 1 7 3 5 1 3 - 1 -
							(Continued)

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No. (Note 1)	Company Name	Counter Party	Nature of Relationship (Note 2)		Intercompany Transaction	Intercompany Transaction
				Financial Statements Item	Amount	Terms	% of Consolidated Net Revenue or Total Assets (Note 3)
26	Lite-On Overseas Trading Co., Ltd.	I-Solutions Limited I-Solutions Limited Huizhou Li Shin Electronic Co., Ltd. Huizhou Li Shin Electronic Co., Ltd. DongGuan G-Pro Computer Co., Ltd. DongGuan G-Pro Computer Co., Ltd. Lite-On Electronics (Guangzhou) Co., Ltd. Lite-On Electronics (Guangzhou) Co., Ltd. Lite-On Singapore Pte. Ltd. Lite-On Singapore Pte. Ltd.	c. c. c. c. c. c. c. c. c. c.	Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable	$ 437,145 154,260 178,268 181,261 5,144,551 1,298,409 41,278,205 9,277,765 29,420,468 8,597,033	Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing	- - - - 2 1 19 4 14 4
27	Li Shin International Enterprise Corp.	Huizhou Li Shin Electronic Co., Ltd.	c.	Accounts receivable	183,563	Cost-plus pricing	-
28	Lite-On Mobile Oyj (formerly: Perlos Oyj)	Lite-On Mobile India Private Limited	c.	Other receivables	160,598	No significant difference	-
29	Lite-On Automotive Electronics (Guangzhou) Co., Ltd.	Lite-On Technology (Shanghai) Ltd. Lite-On Technology (Shanghai) Ltd. Lite-On Singapore Pte. Ltd. Lite-On Singapore Pte. Ltd.	c. c. c. c.	Sales Accounts receivable Sales Accounts receivable	174,067 176,933 1,102,906 359,621	Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing	- - 1 -
30	Guangzhou Lite-On Mobile Engineering Plastics Co., Ltd.	Zhuhai Lite-On Mobile Technology Co., Ltd.	c.	Other receivables	1,318,408	No significant difference	1
31	Beijing Lite-On Mobile Electronic and Telecommunications Components Co., Ltd.	Lite-On Mobile Oyj (formerly: Perlos Oyj)	c.	Sales	727,809	Cost-plus pricing	-
32	Shenzhen Lite-On Mobile Precision Molds Co., Ltd.	Guangzhou Lite-On Mobile Electronic Components Co., Ltd. Guangzhou Lite-On Mobile Electronic Components Co., Ltd.	c. c.	Sales Accounts receivable	605,618 106,272	Cost-plus pricing Cost-plus pricing	- -
33	Guangzhou Lite-On Mobile Electronic Components Co., Ltd.	Lite-On Mobile Oyj (formerly: Perlos Oyj) Lite-On Mobile Pte. Ltd. Lite-On MobilePte.Ltd.	c. c. c.	Sales Sales Accounts receivable	102,823 456,762 253,851	Cost-plus pricing Cost-plus pricing Cost-pluspricing	- - -
34	Lite-On Mobile Pte. Ltd.	Lite-On Mobile India Private Limited Guangzhou Lite-On Mobile Electronic Components Co., Ltd.	c. c.	Other receivables Sales	941,659 329,664	No significant difference Cost-plus pricing	- -
35	Zhuhai Lite-On Mobile Technology Co., Ltd.	Lite-On Mobile Pte. Ltd. Lite-On Mobile Pte. Ltd.	c. c.	Sales Accounts receivable	910,798 720,724	Cost-plus pricing Cost-plus pricing	- -
36	Silitech Technology Corp.	Silitech (BVI) Holding Ltd. Silitech Technology Corporation Ltd. Silitech Technology Corporation Ltd.	c. c. c.	Other receivables Purchases Accounts payable	370,404 941,634 286,523	Cost-plus pricing Cost-plus pricing Cost-plus pricing	- - -
							(Continued)

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No. (Note 1)	Company Name	Counter Party	Nature of Relationship (Note 2)		Intercompany Transaction	Intercompany Transaction
				Financial Statements Item	Amount	Terms	% of Consolidated Net Revenue or Total Assets (Note 3)
37	Xurong Electronic (Shenzhen) Co., Ltd.	Silitech Technology Corporation Ltd. Silitech Technology Corporation Ltd.	c. c.	Sales Accounts receivable	$ 1,304,977 399,860	Cost-plus pricing Cost-plus pricing	1 -
38	Silitech Technology Corp. Ltd.	Lite-On Technology (Changzhou) Co., Ltd.	c.	Sales	182,950	Cost-plus pricing	-
39	Silitech (BVI) Holding Ltd. .	Silitech (Bermuda) Holding Ltd.	c.	Other receivables	360,558	Cost-plus pricing	-
40	Philip & Lite-On Digital Solutions Corp.	Philips & Lite-On Digital Solutions USA Inc. Philips & Lite-On Digital Solutions USA Inc. Philips & Lite-On Digital Solutions Germany GmbH Philips & Lite-On Digital Solutions Germany GmbH	c. c. c. c.	Sales Accounts receivable Sales Accounts receivable	1,064,375 1,074,156 292,809 295,639	Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing	1 1 - -
41	Lite-On Automotive (Wuxi) Co., Ltd.	Lite-On Technology (Shanghai) Ltd. Lite-On Technology (Shanghai) Ltd.	c. c.	Sales Accounts receivable	132,867 170,302	Cost-plus pricing Cost-plus pricing	- -

Note 1: The Parent Company and its subsidiaries are coded as follows:

a. The Parent Company is coded “0”.
b. The subsidiaries are coded consecutively beginning from “1” in the order presented in the table above.

Note 2: Nature of relationship is as follows:

a. From the Parent Company to its subsidiary.
b. From a subsidiary to its Parent Company.
c. Between subsidiaries.
Note 3: The percentage calculation is based on the consolidated total operating revenues or total assets. For balance sheet items, each item's period-end balance is shown as a percentage to consolidated total assets as of December 31, 2015. For profit or loss items, cumulative amounts are shown as a percentage to consolidated total operating revenues for the year ended December 31, 2015.

Note 4: The intercompany transactions have been eliminated from consolidation.

Note 5: The above table only discloses the related-party transactions each amounting to at least NT$100 million, relative transactions which under NT$100 million are not disclosed additionally.

(Concluded)

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5.2 Parent Company Only Financial Statements of 2015

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INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Stockholders Lite-On Technology Corporation

Lite-On Technology Corporation

Financial Statements for the Years Ended December 31, 2015 and 2014 and Independent Auditors’ Report

We have audited the accompanying balance sheets of Lite-On Technology Corporation as of December 31, 2015, December 31, 2014 and January 1, 2014, and the related statements of comprehensive income, changes in equity and cash flows for the years then ended. These financial statements are the responsibility of Lite-On Technology Corporation’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the Republic of China. Those rules and standards 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, the financial statements referred to above present fairly, in all material respects, the financial position of Lite-On Technology Corporation as of December 31, 2015, December 31, 2014 and January 1, 2014, and its financial performance and its cash flows for the years then ended, in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

The accompanying schedules of major accounting items of Lite-On Technology Corporation as of and for the year ended December 31, 2015 are presented for the purpose of additional analysis. Such schedules have been subjected to the auditing procedures described in the second paragraph. In our opinion, such schedules are consistent, in all material respects, with the financial statements required to in the first paragraph.

==> picture [181 x 39] intentionally omitted <==

March 25, 2016

Notice to Readers

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

For the convenience of readers, the independent auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and financial statements shall prevail.

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Lite-On Technology Corporation 2015 Annual Report‧ 184

LITE-ON TECHNOLOGY CORPORATION

BALANCE SHEETS (In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash (Note 6) Financial assets at fair value through profit or loss (Notes 5 and 7) Debt instruments with no active market - current (Note 12) Notes receivable, net (Note 8) Trade receivables, net (Notes 5 and 8) Trade receivables from related parties (Note 30) Other receivables Other receivables from related parties (Note 30) Inventories, net (Notes 5 and 9) Prepayments Total current assets NON-CURRENT ASSETS Available-for-sale financial assets (Notes 5 and 10) Debt instruments with no active market - non-current (Note 12) Investments accounted for using equity method (Notes 5 and 13) Property, plant and equipment, net (Notes 5 and 14) Intangible assets, net (Notes 5 and 15) Deferred tax assets (Notes 5 and 22) Refundable deposits Prepayments for investments Net defined benefit assets - non-current (Notes 5 and 18) Other non-current assets Total noncurrent assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Note 16) Derivative financial liabilities for hedging - current (Notes 5 and 11) Notes payable Trade payables Trade payables to related parties (Note 30) Other payables Other payables to related parties (Note 30) Current tax liabilities (Notes 5 and 22) Provisions - current (Notes 5 and 17) Advance receipts Current portion of long-term borrowings (Note 16) Total current liabilities NON-CURRENT LIABILITIES Derivative financial liabilities for hedging - non-current (Notes 5 and 11) Long-term borrowings, net of current portion (Note 16) Deferred tax liabilities (Notes 5 and 22) Net defined benefit liabilities - non-current (Notes 5 and 18) Guarantee deposits Credit balance of investments accounted for using equity method (Note 13) Total noncurrent liabilities Total liabilities EQUITY Share capital Ordinary shares Advance receipts for common stock Total share capital Capital surplus Additional paid-in capital from share issuance in excess of par value Bond conversion Treasury stock transactions Difference between consideration and carry amounts adjusted arising from changes in percentage of ownership in subsidiaries Arising from share of changes in capital surplus of associates Merger Employee share options Total capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Exchange differences on translating foreign operations Unrealized gain (loss) on available-for-sale financial assets Unrealized loss on hedging instruments determined to be the effective portion of cash flow hedging Total other equity Treasury shares Total equity TOTAL		December 31, 2015		December 31, 2014 (Restated)		January 1, 2014 (Restated)
		Amount % $ 4,190,926 3 45,845 - 9,573 - 180 - 21,641,543 15 11,028,957 7 790,721 1 541,785 - 10,458,264 7 807,852 1 49,515,646 34 321,274 - 735 - 80,806,177 55 6,879,323 5 6,742,250 5 2,106,142 1 160,322 - 155,677 - - - 6,444 - 97,178,344 66 $ 146,693,990 100 $ 12,874,375 9 - - 2,597 - 8,103,755 5 18,858,168 13 9,892,335 7 755,682 - 1,270,893 1 853,031 1 1,814,666 1 2,900,000 2 57,325,502 39 - - 9,600,000 7 3,282,201 2 63,935 - 21,210 - 412,631 - 13,379,977 9 70,705,479 48 23,349,283 16 - - 23,349,283 16 9,251,603 7 7,462,138 5 275,516 - 43,236 - 278,747 - 10,015,194 7 - - 27,326,434 19 10,123,042 7 232,213 - 13,011,073 9 23,366,328 16 3,347,902 2 (152,714 ) - - - 3,195,188 2 (1,248,722) (1) 75,988,511 52 $ 146,693,990 100		Amount % $ 6,541,854 5 - - 1,054 - 40,613 - 23,111,141 16 10,832,845 8 658,483 - 559,388 - 8,422,865 6 919,633 1 51,087,876 36 646,291 - 735 - 75,429,489 52 7,378,066 5 7,074,562 5 2,124,934 2 174,804 - - - 17 - 7,278 - 92,836,176 64 $ 143,924,052 100 $ 13,467,121 9 11,989 - 6,715 - 6,005,349 4 20,910,791 15 7,833,883 5 600,100 - 846,665 1 828,287 1 1,958,793 1 5,225,000 4 57,694,693 40 - - 7,700,000 5 2,951,521 2 - - 19,796 - 583,834 1 11,255,151 8 68,949,844 48 23,416,737 16 - - 23,416,737 16 9,238,931 7 7,534,962 5 445,694 - 30,960 - 231,446 - 10,112,934 7 - - 27,594,927 19 9,476,876 7 49,669 - 11,432,541 8 20,959,086 15 4,125,097 3 139,072 - (11,989) - 4,252,180 3 (1,248,722) (1) 74,974,208 52 $ 143,924,052 100		Amount % $ 6,924,714 6 - - - - 7,518 - 18,074,101 14 5,307,083 4 223,612 - 372,160 - 2,575,272 2 453,873 - 33,938,333 26 717,171 1 - - 87,137,080 68 4,758,177 4 646,137 - 921,841 1 87,784 - - - - - 5,512 - 94,273,702 74 $ 128,212,035 100 $ 5,484,120 4 - - 7,134 - 2,408,170 2 20,668,164 16 4,352,868 3 465,963 - 720,462 1 133,230 - 713,778 1 6,350,000 5 41,303,889 32 46,969 - 12,125,000 10 1,523,571 1 11,173 - 16,165 - 144,632 - 13,867,510 11 55,171,399 43 23,246,552 18 29,705 - 23,276,257 18 9,096,489 7 7,540,388 6 430,851 - - - 15,487 - 10,120,217 8 8,587 - 27,212,019 21 8,601,391 7 689,913 1 12,176,414 9 21,467,718 17 2,383,040 2 83,231 - (46,969) - 2,419,302 2 (1,334,660) (1) 73,040,636 57 $ 128,212,035 100

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

(With Deloitte & Touche audit report dated March 25, 2016)

LITE-ON TECHNOLOGY CORPORATION

STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OPERATING REVENUE Sales (Notes 20 and 30) Less: Sales returns Sales allowance Total operating revenue OPERATING COSTS Cost of goods sold (Notes 9, 21 and 30) GROSS PROFIT REALIZED GAIN ON TRANSACTIONS WITH SUBSIDIARIES AND ASSOCIATES GROSS PROFIT, NET OPERATING EXPENSES (Notes 21 and 30) Selling and marketing expenses General and administrative expenses Research and development expenses Total operating expenses OPERATING INCOME NONOPERATING INCOME AND EXPENSES Share of profit of subsidiaries and associates (Note 13) Interest income Dividend income Other income (Note 30) Gain on disposal of property, plant and equipment (Note 30) Gain on disposal of investments Net gain (loss) on foreign currency exchange Gain on financial assets with fair value through profit or loss Finance costs Other expenses Loss on disposal of property, plant and equipment Impairment loss (Note 10) Total nonoperating income and expenses		For the Years Ended December 31	For the Years Ended December 31	For the Years Ended December 31
		2015 Amount % $ 127,877,547 103 827,475 1 2,420,824 2 124,629,248 100 110,580,446 88 14,048,802 12 28,510 - 14,077,312 12 3,030,307 2 4,823,651 4 3,293,023 3 11,146,981 9 2,930,331 3 5,047,718 4 32,065 - 10,844 - 1,185,172 1 39,220 - 20,190 - (27,501) - 45,845 - (341,075) - (555,040) (1) (517) - (54,801) - 5,402,120 4		2014(Restated)
				Amount % $ 118,870,033 103 773,798 1 2,303,987 2 115,792,248 100 104,930,667 91 10,861,581 9 53,749 - 10,915,330 9 2,260,134 2 3,329,509 3 2,609,568 2 8,199,211 7 2,716,119 2 2,744,022 2 41,958 - 20,298 - 1,107,287 1 25,682 - 266,284 - 8,435 - - - (370,659) - (38,949) - (3,405) - (90,348) - 3,710,605 3 (Continued)

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LITE-ON TECHNOLOGY CORPORATION

STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

PROFIT BEFORE INCOME TAX INCOME TAX BENEFIT (EXPENSE) (Notes 5 and 22) NET PROFIT FOR THE YEAR OTHER COMPREHENSIVE INCOME (Notes 18, 19 and 22) Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans Share of other comprehensive loss of subsidiaries and associates accounted for using the equity method Income tax relating to items that will not be reclassified subsequently to profit or loss Items that may be reclassified subsequently to profit or loss: Exchange differences on translating foreign operations Unrealized gain (loss) on available-for-sale financial assets Unrealized Gain on hedging instruments determined to be the effective portion of cash flow hedging Share of other comprehensive loss of subsidiaries and associates accounted for using the equity method Income tax relating to items that may be reclassified subsequently to profit or loss Other comprehensive income (loss) for the year, net of income tax TOTAL COMPREHENSIVE INCOME FOR THE YEAR		For the Years Ended December 31	For the Years Ended December 31	For the Years Ended December 31
		2015 Amount % $ 8,332,451 7 (1,109,552) (1) 7,222,899 6 (76,626) - (21,876) - 13,026 - (85,476) - (818,537) (1) (300,819) - 11,989 - (81,980) - 132,355 - (1,056,992) (1) (1,142,468) (1) $ 6,080,431 5		2014(Restated)
				Amount % $ 6,426,724 5 34,084 - 6,460,808 5 9,908 - (9,935) - (1,684) - (1,711) - 2,394,153 2 39,301 - 34,980 - (216,460) - (404,307) - 1,847,667 2 1,845,956 2 $ 8,306,764 7 (Continued)

LITE-ON TECHNOLOGY CORPORATION

STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

EARNINGS PER SHARE (NEW TAIWAN DOLLARS; Note 23) Basic Diluted	For the Years Ended December 31	For the Years Ended December 31
	2015 Amount % $3.11 $3.07	2014(Restated)
		Amount % $2.78 $2.75

The accompanying notes are an integral part of the financial statements. (With Deloitte & Touche audit report dated March 25, 2016)

(Concluded)

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LITE-ON TECHNOLOGY CORPORATION

STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

	Issue of Share Cap	ital(Note 19)				Capital Surplus	(Note 19)				Retained Earnings (N	otes 19 and 26)		Other Equity (	Note 19)
			Additional Paid-in Capital from Share Excess of Par Value $ 9,096,489 - 9,096,489 - - - - - - - 149,096 - - - - - - - (6,654) 9,238,931 - - - - - - 102,960 - - - - (90,288) $ 9,251,603	Bond Conversion $ 7,540,388 - 7,540,388 - - - - - - - - - - - - - - - (5,426) 7,534,962 - - - - - - - - - - - (72,824) $ 7,462,138	A Treasury Stock Transactions $ 430,851 - 430,851 - - - - - (206 ) (556 ) - - 65,430 - - - - - (49,825) 445,694 - - - - - - - 47,779 - - - (217,957) $ 275,516	Difference Between Consideration and Carry Amounts djusted Arising from Change in Percentage of Ownership in Subsidiaries $ - - - - - - - - 30,960 - - - - - - - - - - 30,960 - - - - 12,276 - - - - - - - $ 43,236	Arising from Share of Changes in Capital Surplus of Associates and Joint Ventures $ 15,487 - 15,487 - - - - - - 215,959 - - - - - - - - - 231,446 - - - - - 47,301 - - - - - - $ 278,747	Merger $ 10,120,217 - 10,120,217 - - - - - - - - - - - - - - - (7,283) 10,112,934 - - - - - - - - - - - (97,740) $ 10,015,194	Employee Stock Options $ 8,587 - 8,587 - - - - - (694 ) (7,893 ) - - - - - - - - - - - - - - - - - - - - - - $ -
													Exchange Differences on Translating Foreign Operations $ 2,383,040 - 2,383,040 - - - - - - - - - - (1,240 ) (13,549 ) - 1,756,846 1,756,846 - 4,125,097 - - - - - - - - - (777,195) (777,195) - $ 3,347,902	Unrealized Gain (Loss) on Available-for- sale Financial Assets $ 83,231 - 83,231 - - - - - - - - - - - - - 55,841 55,841 - 139,072 - - - - - - - - - (291,786) (291,786) - $ (152,714)	Cash Flow Hedges $ (46,969 ) - (46,969 ) - - - - - - - - - - - - - 34,980 34,980 - (11,989 ) - - - - - - - - - 11,989 11,989 - $ -
Shares (In Thousands) 2,324,655 - 2,324,655 - - - 11,638 - - - 4,085 2,971 - - - - - - (1,675) 2,341,674 - - - 11,708 - - 4,333 - - - - (22,787) 2,334,928	Amount $ 23,246,552 - 23,246,552 - - - 116,381 - - - 40,849 29,705 - - - - - - (16,750) 23,416,737 - - - 117,084 - - 43,332 - - - - (227,870) $ 23,349,283	Advance Receipts for Common Stock $ 29,705 - 29,705 - - - - - - - - (29,705 ) - - - - - - - - - - - - - - - - - - - - $ -
										Legal Reserve $ 8,601,391 - 8,601,391 875,485 - - - - - - - - - - - - - - - 9,476,876 646,166 - - - - - - - - - - - $ 10,123,042	Special Reserve $ 689,913 - 689,913 - (640,244 ) - - - - - - - - - - - - - - 49,669 - 182,544 - - - - - - - - - - $ 232,213	Unappropriated Earnings $ 12,172,082 4,332 12,176,414 (875,485 ) 640,244 (6,307,866 ) (116,381 ) (543,482 ) - - - - - - - 6,460,808 (1,711) 6,459,097 - 11,432,541 (646,166 ) (182,544 ) (4,613,097 ) (117,084 ) - - - - 7,222,899 (85,476) 7,137,423 - $ 13,011,073

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

(With Deloitte & Touche audit report dated March 25, 2016)

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LITE-ON TECHNOLOGY CORPORATION

STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Adjustments for: Depreciation expenses Amortization expenses Recognition of impairment loss of trade receivables Net gain on fair value change of financial assets designated as at fair value through profit Finance costs Interest income Dividend income Share of profit of subsidiaries and associates Gain on disposal of property, plant and equipment Gain on disposal of available-for-sale financial assets Gain on disposal of investments accounted for using equity method Impairment loss recognized on financial assets Impairment loss recognized on non-financial assets Realized gain on the transactions with subsidiaries and associates Unrealized loss (gain) on foreign currency exchange Recognition of provisions Changes in operating assets and liabilities Notes receivable Trade receivables Trade receivables from related parties Other receivables Other receivables from related parties Inventories Prepayments Notes payable Trade payables Trade payables to related parties Other payables Other payables to related parties Provisions Advance receipts Net defined benefit liabilities Cash generated from operations Interest received Dividend received Interest paid Income tax paid Net cash generated from operating activities		For the Years Ended December 31	For the Years Ended December 31
		2015 $ 8,332,451 701,807 462,614 13,818 (45,845) 341,075 (32,065) (10,844) (5,047,718) (38,703) (19,926) (264) 54,801 162,974 (28,510) 270,959 263,383 40,433 1,422,153 (196,112) (132,535) 30,664 (2,195,953) 111,781 (4,118) 1,827,447 (2,052,623) 2,146,279 155,582 (238,639) (144,127) (12,674) 6,137,565 32,362 10,844 (343,334) (190,471) 5,646,966	2014 (Restated) $ 6,426,724 479,839 295,400 19,385 - 370,659 (41,958) (20,298) (2,744,022) (22,277) (259,010) (7,274) 90,348 486,882 (53,749) (189,968) 231,972 (32,280) (801,654) (1,128,393) (18,244) (57,980) 614,975 (139,318) (419) (1,735,704) (1,911,615) 134,266 72,716 144,229 881,801 7,165 1,092,198 46,147 20,298 (373,041) (449,136) 336,466 (Continued)

LITE-ON TECHNOLOGY CORPORATION

STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Purchase of available-for-sale financial assets Proceeds from disposal of available-for-sale financial assets Purchase of debt instruments with no active market Acquisition of investments accounted for using equity method Increase in prepayments for long-term investments Net cash inflow from consolidated subsidiaries (Note 27) Proceeds from capital reduction of investments accounted for using equity method Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease (increase) in refundable deposits Payments for intangible assets Decrease (increase) in other noncurrent assets Dividend received from subsidiaries and associates Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Payments for buy-back of ordinary shares Proceeds from short-term borrowings Repayments of short-term borrowings Repayments of long-term borrowings Proceeds from guarantee deposits received Cash dividends Partial acquisition of subsidiaries (Note 26) Net cash used in financing activities NET DECREASE IN CASH CASH AT THE BEGINNING OF THE YEAR CASH AT THE END OF THE YEAR The accompanying notes are an integral part of the financial statements. (With Deloitte & Touche audit report dated March 25, 2016)		For the Years Ended December 31	For the Years Ended December 31
		2015 $ - 22,949 (8,519) (1,555,000) (155,677) - 4,806 (520,263) 383,631 14,482 (133,023) 834 283,994 (1,661,786) (706,679) - (592,746) (425,000) 1,414 (4,613,097) - (6,336,108) (2,350,928) 6,541,854 $ 4,190,926	2014 (Restated) $ (4,620) 445,082 (1,789) (2,637,954) - 4,734,033 2,409,223 (950,967) 3,411 (73,863) (174,255) (1,766) 940,459 4,686,994 - 7,461,128 - (5,550,000) 3,586 (6,307,866) (1,013,168) (5,406,320) (382,860) 6,924,714 $ 6,541,854 (Concluded)

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LITE-ON TECHNOLOGY CORPORATION

NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

Lite-On Technology Corporation (the “Company”) was established in March 1989. The Company’s shares have been listed on the Taiwan Stock Exchange. The Company manufactures and markets (1) computer software, hardware, peripherals and components; (2) monitors, multifunction and all-in-one printers, cameras and Internet systems and image-processing equipment; (3) information storage and process equipment, electronic components and office equipment; (4) electronic coils, transformers, power suppliers and electronic hardware parts; (5) light-emitting diode (LED) products; (6) electronic car products; and (7) optical lens modules and optoelectronic components.

The Company merged with Lite-On Electronics, Inc., Silitek Corp. and GVC Corp., with the Company as the survivor entity. The merger took effect on November 4, 2002, and the Company thus assumed all rights and obligations of the three merged companies on that date. The Company merged with its subsidiary, Lite-On Enclosure Inc., with the Company as the survivor entity. The merger took effect on April 1, 2004, and the Company thus assumed all rights and obligations of its former subsidiary on that date.

The Company separately merged with Li Shin International Enterprise Corp., Lite-On Clean Energy Technology Corp., Lite-On Automotive Corp., Leotek Electronics Corp., Lite-On IT Corporation and LarView Technologies Corp., with the Company as the survivor entity. The merger separately took effect on March 22, 2014, April 15, 2014, June 1, 2014, June 29, 2014, June 30, 2014 and September 1, 2014, and the Company thus assumed all rights and obligations of the six merged companies on those date.

The financial statements are presented in the Company’s functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved by the board of directors and authorized for issue on March 25, 2016.

1) IFRS 12 “Disclosure of Interests in Other Entities”

IFRS 12 is a new disclosure standard and is applicable to entities that have interests in subsidiaries and associates. In general, the disclosure requirements in IFRS 12 are more extensive than in previous standards. Please refer to Note 13 for related disclosures.

2) IFRS 13 “Fair Value Measurement”

The fair value measurements under IFRS 13 are applied prospectively from January 1, 2015. Refer to Note 29 for related disclosure.

3) Amendment to IAS 1 “Presentation of Items of Other Comprehensive Income”

The Company retrospectively applied the above amendments starting from 2015. Items not expected to be reclassified to profit or loss are remeasurements of the defined benefit plans. Items expected to be reclassified to profit or loss are the exchange differences on translating foreign operations, unrealized gains (loss) on available-for-sale financial assets, cash flow hedges, and share of the other comprehensive income (except the share of the remeasurements of the defined benefit plans) of subsidiaries and associates accounted for using the equity method. The application of the above amendments did not result in any impact on the net profit for the year, other comprehensive income for the year (net of income tax), and total comprehensive income for the year.

4) Revision to IAS 19 “Employee Benefits”

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

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

Rule No. 1030029342 and Rule No. 1030010325 issued by the FSC on April 3, 2014, stipulated that the Company should apply the 2013 version of IFRS, IAS, IFRIC and SIC (collectively, the “IFRSs”) endorsed by the FSC and the related amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers starting January 1, 2015.

On initial application of the revised IAS 19 in 2015, the changes in cumulative employee benefit costs as of December 31, 2013 that resulted from the retrospective application in the past are adjusted to investments accounted for using equity method and retained earnings; the carrying amounts of inventories are not adjusted.

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5) Amendment to IFRS 7 “Disclosure - Offsetting Financial Assets and Financial Liabilities”

The impact of the new standards on the current period is set out below:

Adjustments Arising from Initial Application $ 3,481 $ 3,481 $ 4,332 $ 4,332 Adjustments Arising from Initial Application $ (851) $ (851) $ (851) $ - $ -	December 31, 2015 $ 3,170 $ 3,170 For the Year Ended December 31, 2015 $ (443) $ (443) $ (443) Restated $ 75,429,489 $ 11,432,541 $ 87,137,080 $ 12,176,414 Restated $ 2,744,022	December 31, 2015 $ 3,170 $ 3,170 For the Year Ended December 31, 2015 $ (443) $ (443) $ (443) Restated $ 75,429,489 $ 11,432,541 $ 87,137,080 $ 12,176,414 Restated $ 2,744,022
	$
	$
	$
	$
$	$	6,460,808
$	$	8,306,764
		$ 2.78
		$ 2.75

b. New IFRSs in issue but not yet endorsed by FSC

The Company has not applied the following New IFRSs issued by the IASB but not yet endorsed by the FSC.

The New IFRSs Not Included in the 2013 IFRSs Version
Annual Improvements to IFRSs 2010-2012 Cycle

Annual Improvements to IFRSs 2011-2013 Cycle

Annual Improvements to IFRSs 2012-2014 Cycle

IFRS 9 “Financial Instruments”

Amendments to IFRS 9 and IFRS 7 “Mandatory Effective Date of
IFRS 9 and Transition Disclosures”

Amendments to IFRS 10 and IAS 28“Sales or Contribution of Assets
between an Investor and its Associate or Joint Venture”

Amendments to IFRS 10, IAS 12 and IAS 28“Investment Entities:
Applying the Consolidation Exception”

Amendment to IFRS 11“Accounting for Acquisitions of Interests in
Joint Operations”

IFRS 14 “Regulatory Deferral Accounts”

IFRS 15“Revenue from Contracts with Customers”

IFRS 16“Leases”

Amendment to IAS 1 “Disclosure Initiative”

Amendment to IAS 7“Disclosure Initiative”

Amendment to IAS 12“Recognition of Deferred Tax Assets for
Unrealized Losses”

Amendments to IAS 16 and IAS 38“Clarification of Acceptable
Methods of Depreciation and Amortization”

Amendments to IAS 16 and IAS 41 “Agriculture: Bearer Plants”

Amendment to IAS 19 “Defined Benefit Plans: Employee
Contributions”

Amendment to IAS 27 “Equity Method in Separate Financial
Statements”

Amendment to IAS 36 “Impairment of Assets: Recoverable Amount
Disclosures for Non-financial Assets”

Amendment to IAS 39 “Novation of Derivatives and Continuation of
Hedge Accounting”

IFRIC 21 “Levies”

Effective Date
Announced by IASB (Note 1)

July 1, 2014 (Note 2)
July 1, 2014
January 1, 2016 (Note 3)
January 1, 2018
January 1, 2018
January 1, 2016 (Note 3)
To be determined by IASB
January 1, 2016
January 1, 2016
January 1, 2018
January 1, 2019
January 1, 2016
January 1, 2017
January 1, 2017
January 1, 2016
January 1, 2016
July 1, 2014
January 1, 2016
January 1, 2014
January 1, 2014
January 1, 2014

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Note 1: Unless stated otherwise, the above New IFRSs are effective for annual periods beginning on or after their respective effective dates.
Note 2: The amendment to IFRS 2 applies to share-based payment transactions with grant date on or after July 1, 2014; the amendment to IFRS 3 applies to business combinations with acquisition date on or after July 1, 2014; the amendment to IFRS 13 is effective immediately; the remaining amendments are effective for annual periods beginning on or after July 1, 2014.
Note 3: The amendment to IFRS 5 is applied prospectively to changes in a method of disposal that occur in annual periods beginning on or after January 1, 2016; the remaining amendments are effective for annual periods beginning on or after January 1, 2016.

The initial application of the above New IFRSs, whenever applied, would not have any material impact on the Company’s accounting policies, except for the following:

1) IFRS 9 “Financial Instruments”

The impairment of financial assets

For purchased or originated credit-impaired financial assets, the Company takes into account the expected credit losses on initial recognition in calculating the credit-adjusted effective interest rate. Subsequently, any changes in expected losses are recognized as a loss allowance with a corresponding gain or loss recognized in profit or loss.

Recognition and measurement of financial assets

Hedge accounting

For the Company’s debt instruments that have contractual cash flows that are solely payments of principal and interest on the principal amount outstanding, their classification and measurement are as follows:

a) For debt instruments, if they are held within a business model whose objective is to collect the contractual cash flows, the financial assets are measured at amortized cost and are assessed for impairment continuously with impairment loss recognized in profit or loss, if any. Interest revenue is recognized in profit or loss by using the effective interest method;
b) For debt instruments, if they are held within a business model whose objective is achieved by both the collecting of contractual cash flows and the selling of financial assets, the financial assets are measured at fair value through other comprehensive income (FVTOCI) and are assessed for impairment. Interest revenue is recognized in profit or loss by using the effective interest method, and other gain or loss shall be recognized in other comprehensive income, except for impairment gains or losses and foreign exchange gains and losses. When the debt instrument is derecognized or reclassified the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss.

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

2) Amendment to IAS 36 “Recoverable Amount Disclosures for Non-financial Assets”

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

3) IFRS 15 “Revenue from Contracts with Customers”

When applying IFRS 15, an entity shall recognize revenue by applying the following steps:

Identify the contract with the customer;
Identify the performance obligations in the contract;
Determine the transaction price;
Allocate the transaction price to the performance obligations in the contracts; and
Recognize revenue when the entity satisfies a performance obligation.

13 -
14 -

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

The amendments stipulated that, when an entity sells or contributes to an associate assets that constitute a business as defined in IFRS 3 “Business Combinations” or when an entity loses control of a subsidiary that contains a business but retains significant influence or joint control, the gain or loss resulting from the transaction is recognized in full.

Also, when an entity loses control of a subsidiary that does not contain a business as defined in IFRS 3 but retains significant influence or joint control in an associate or a joint venture, the gain or loss resulting from the asset sale or contribution is recognized only to the extent of the unrelated investors’ interest in the associate or joint venture and the entity’s share of the gain or loss is eliminated.

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

When preparing the company’s financial statements, the Company used equity method to account for its investment in subsidiaries, associates and joint ventures. In order for the amounts of the net profit for the year, other comprehensive income for the year and total equity in the company’s financial statements to be the same with the amounts attributable to the owner of the Company in its consolidated financial statements, adjustments arising from the differences in accounting treatment between company only basis and consolidated basis were made to investments accounted for by equity method, share of profit or loss of subsidiaries, associates and joint ventures, share of other comprehensive income of subsidiaries, associates and related equity items, as appropriate, in the parent company only financial statements.

5) IFRS 16 “Leases”
c. Classification of current and non-current assets and liabilities

IFRS 16 sets out the accounting standards for leases that will supersede IAS 17 and a number of related interpretations.

Under IFRS 16, if the Company is a lessee, it shall recognize right-of-use assets and lease liabilities for all leases on the balance sheets except for low-value and short-term leases. The Company may elect to apply the accounting method similar to the accounting for operating lease under IAS 17 to the low-value and short-term leases. On the statements of comprehensive income, the Company should present the depreciation expense charged on the right-of-use asset separately from interest expense accrued on the lease liability; interest is computed by using effective interest method. On the of cash flows, cash payments for the principal portion of the lease liability and interest portion are both classified within operating activities.

When IFRS 16 becomes effective, the Company may elect to apply this Standard either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of the initial application of this Standard recognized at the date of initial application.

Except for the above impact, as of the date the financial statements were authorized for issue, the Company is continuingly assessing the possible impact that the application of other standards and interpretations will have on the Company’s financial position and financial performance, and will disclose the relevant impact when the assessment is complete.

Current assets include:

1) Assets held primarily for the purpose of trading;
2) Assets expected to be realized within 12 months after the reporting period; and
3) Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

1) Liabilities held primarily for the purpose of trading;
2) Liabilities due to be settled within 12 months after the reporting period, and
3) Liabilities for which the Company does not have an unconditional right to defer settlement for at least 12 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.

Assets and liabilities that are not classified as current are classified as non-current.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

d. Business combinations
a. Statement of compliance

The financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and IFRS as endorsed by the FSC.

b. Basis of preparation

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

Acquisitions of businesses are accounted for using the acquisition method. Acquisition-related costs are generally recognized in profit or loss as incurred.

e. Foreign currencies

In preparing the Company’s financial statements, transactions in currencies other than the Company’s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;

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For the purposes of presenting financial statements, the assets and liabilities of the Company’s foreign operations (including of the subsidiaries and associates, in other countries or currencies used different with the Company) are translated into New Taiwan dollars using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising are recognized in other comprehensive income.

On the disposal of a foreign operation (i.e. a disposal of the Company’s entire interest in a foreign operation, or a disposal involving loss of control over a subsidiary that includes a foreign operation, or a partial disposal of an interest in an associate that includes a foreign operation of which the retained interest becomes a financial asset), all of the exchange differences accumulated in equity in respect of that operation are reclassified to profit or loss.

In relation to a partial disposal of a subsidiary that does not result in the Company losing control over the subsidiary, the proportionate share of accumulated exchange differences is included in the calculation of equity transactions but is not recognized in profit or loss. For all other partial disposals, the proportionate share of the accumulated exchange differences recognized in other comprehensive income is reclassified to profit or loss.

f. Inventories

g. Investments accounted for using equity method

Investments in subsidiaries and associates are accounted for using equity method.

1) Investments in subsidiaries

Subsidiaries are the entities controlled by the Company.

Under the equity method, the investment is initially recognized at cost and the carrying amount is increased or decreased to recognize the Company's share of the profit or loss and other comprehensive income of the subsidiary after the date of acquisition. Besides, the Company also recognizes the Company’s share of the change in other equity of the subsidiary.

Changes in the Company’s ownership interests in subsidiaries that do not result in the Company’s loss of control over the subsidiaries are accounted for as equity transactions. Any difference between the carrying amounts of the investment and the fair value of the consideration paid or received is recognized directly in equity.

When the Company’s share of losses of a subsidiary equals or exceeds its interest in that subsidiary, the Company continues recognizing its share of further losses.

The acquisition cost in excess of the acquisition-date fair value of the identifiable net assets acquired is recognized as goodwill. Goodwill is not amortized. The acquisition-date fair value of the net identifiable assets acquired in excess of the acquisition cost is recognized immediately in profit or loss.

The Company assesses its investment for any impairment by comparing the carrying amount with the estimated recoverable amount as assessed based on the entire financial statements of the invested company. Impairment loss is recognized when the carrying amount exceeds the recoverable amount. If the recoverable amount of the investment subsequently increases, the Company recognizes reversal of the impairment loss; the adjusted post-reversal carrying amount should not exceed the carrying amount that would have been recognized (net of amortization or depreciation) had no impairment loss been recognized in prior years. An impairment loss recognized on goodwill cannot be reversed in a subsequent period.

When the Company loses control of a subsidiary, it recognizes the investment retained in the former subsidiary at its fair value at the date when control is lost. The difference between the fair value of the retained investment plus any consideration received and the carrying amount of previous investment at the date when control is lost is recognized as a gain or loss in profit or loss. Besides, the Company accounts for all amounts previously recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required if the Company had directly disposed of the related assets or liabilities.

Profits and losses from downstream transactions are eliminated in full. Profits and losses from upstream and sidestream transactions are recognized in the Company’s financial statements only to the extent of interests in the subsidiary that are not related to the Company.

2) Investments in associates

An associate is an entity over which the Company has significant influence and that is neither a subsidiary nor a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.

Under the equity method, an investment in an associate is initially recognized at cost and adjusted thereafter to recognize the Company’s share of the profit or loss and other comprehensive income of the associate. Besides, the Company also recognizes the Company’s share of the change in equity of the associate.

Any excess of the cost of acquisition over the Company’s share of the net fair value of the identifiable assets and liabilities of an associate recognized at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Company’s share of the net fair value of the identifiable assets and liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.

When the Company subscribes for additional new shares of the associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Company’s proportionate interest in the associate. The Company records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus - changes in the Company’s share of equity of associates. If the Company’s

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ownership interest is reduced due to the additional subscription of the new shares of associate, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate is reclassified to profit or loss on the same basis as would be required if the investee had directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for by the equity method is insufficient, the shortage is debited to retained earnings.

When the Company’s share of losses of an associate equals or exceeds its interest in that associate, the Company discontinues recognizing its share of further losses. Additional losses and liabilities are recognized only to the extent that the Company has incurred legal obligations, or constructive obligations, or made payments on behalf of that associate.

The entire carrying amount of the investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is deducted from investment and the carrying amount of investment is net of impairment loss. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

When the Company transacts with its associate, profits and losses resulting from the transactions with the associate are recognized in the Company’s financial statements only to the extent of interests in the associate that are not related to the Company.

h. Property, plant and equipment

Property, plant and equipment are stated at cost, less recognized accumulated depreciation and accumulated impairment loss.

Properties in the course of construction for production, supply or administrative purposes are carried at cost, less any recognized impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Such properties are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for intended use.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

i. Goodwill

For the purposes of impairment testing, goodwill is allocated to each of the Company’s cash-generating units or groups of cash-generating units (referred to as cash-generating units) that is expected to benefit from the synergies of the combination.

A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired, by comparing its carrying amount, including the attributed goodwill, with its recoverable amount. However, if the goodwill allocated to a cash-generating unit was acquired during the current annual period, that unit shall be tested for impairment before the end of the current annual period. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss is recognized directly in profit or loss. An impairment loss recognized for goodwill is not reversed in subsequent periods.

If goodwill has been allocated to a cash-generating unit and the entity disposes of an operation within that unit, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal.

j. Intangible assets

1) Intangible assets acquired separately

2) Intangible assets acquired in a business combination

Intangible assets acquired in a business combination and recognized separately from goodwill are initially recognized at their fair value at the acquisition date. Subsequent to initial recognition, they are measured on the same basis as intangible assets that are acquired separately.

3) Derecognition of intangible assets

On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset are recognized in profit or loss.

k. Impairment of tangible and intangible assets other than goodwill

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets, excluding goodwill, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the individual cash-generating units on a reasonable and consistent basis of allocation.

Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount. An impairment loss is recognized in profit or loss.

l. Financial instruments

Financial assets and financial liabilities are recognized in Balance Sheets when a company becomes a party to the contractual provisions of the instruments.

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1) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

a) Measurement category

Financial assets are classified into the following categories: Financial assets at fair value through profit or loss, available-for-sale financial assets, and loans and receivables.

i. Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss are derivatives that do not meet the criteria for hedge accounting and are measured at fair value with any gains or losses arising from remeasurement recognized in profit or loss.

ii. Available-for-sale financial assets

Dividends on available-for-sale equity instruments are recognized in profit or loss when the Company’s right to receive the dividends is established.

iii. Loans and receivables

Except for financial assets at fair value through profit or loss, loans and receivables (primarily including cash, note receivables, debt instruments with no active market, trade receivables, and other receivables) are measured at amortized cost using the effective interest method, less any impairment, except for short-term receivables when the effect of discounting is immaterial.

For available-for-sale equity investments, a significant or prolonged decline in the fair value of the security below its cost is considered to be objective evidence of impairment.

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the carrying amount is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognized in profit or loss except for uncollectible trade receivables that are written off against the allowance account.

c) Derecognition of financial assets

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

2) Financial liabilities and equity instruments

Debt and equity instruments issued by a company entity are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

b) Impairment of financial assets

a) Financial liabilities subsequent measurement

Financial assets are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.

Financial liabilities are measured at amortized cost using the effective interest method.

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b) Derecognition of financial liabilities

The difference between the carrying amount of the financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

c) Equity instruments

An equity instrument is any contract 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.

a) The Company has transferred to the buyer the significant risks and rewards of ownership of the goods;
b) The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
c) The amount of revenue can be measured reliably;
d) It is probable that the economic benefits associated with the transaction will flow to the Company; and
e) The costs incurred or to be incurred in respect of the transaction can be measured reliably.

m. Hedge accounting

The Company designates derivative hedging instruments to conduct cash flow hedges. The effective portion of changes in the fair value of derivatives is recognized in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss. The associated gains or losses that were recognized in other comprehensive income are reclassified from equity to profit or loss as a reclassification adjustment in the line item relating to the hedged item in the same period when the hedged item affects profit or loss.

Hedge accounting is discontinued prospectively when the Company revokes the designated hedging relationship, or when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer meets the criteria for hedge accounting. The cumulative gain or loss on the hedging instrument that has been previously recognized in other comprehensive income from the period when the hedge was effective remains separately in equity until the forecast transaction occurs. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in profit or loss.

n. Provisions

The Company does not recognize sales revenue on materials delivered to subcontractors because this delivery does not involve a transfer of risks and rewards of materials ownership.

2) Rendering of services

Service income is recognized when services are provided.

3) Royalties

Royalty revenue is recognized on an accrual basis in accordance with the substance of the relevant agreement provided that it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably. Royalties determined on a time basis are recognized on a straight-line basis over the period of the agreement. Royalty arrangements that are based on production, sales and other measures are recognized by reference to the underlying arrangement.

4) Rental revenue

5) Dividend and interest income

Provisions for the expected cost of warranty obligations are recognized at the date of sale of the relevant products, at the best estimate of the expenditure required to settle the Company’s obligation by the management of the Company

Dividend income from investments is recognized when the shareholder’s right to receive payment has been established provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably.

o. Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances. Sales returns are recognized at the time of sale provided the seller can reliably estimate future returns and recognizes a liability for returns based on previous experience and other relevant factors.

Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable.

p. Leasing

1) Sale of goods

Revenue from the sale of goods is recognized when the goods are delivered and titles have passed, at which time all the following conditions are satisfied:

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1) The Company as lessor

Rental income from operating leases is recognized on a straight-line basis over the term of the relevant lease.

2) The Company as lessee

Operating lease payments are recognized as an expense on a straight-line basis over the lease term.

2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences, research and development expenditures, and personnel training expenditures to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

q. Employee benefits

1) Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.

2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as an expense when employees have rendered service entitling them to the contributions.

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

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

3) Termination benefits

A liability for a termination benefit is recognized at the earlier of when the Company can no longer withdraw the offer of the termination benefit and when the Company recognizes any related restructuring costs.

r. Taxation

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets 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.

3) Current and deferred tax for the year

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Income tax expense represents the sum of the tax currently payable and deferred tax.

1) Current tax

According to the Income Tax Law, an additional tax at 10% of unappropriated earnings is provided for as income tax in the year the shareholders approve to retain the earnings.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

In the application of the Company's accounting policies (Note 4), management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

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a. Impairment of goodwill

g. Impairment of investment in the associate

The Company immediately recognizes impairment loss on its net investment in the associate when there is any indication that the investment may be impaired and the carrying amount may not be recoverable. The Company also takes into consideration the market conditions and industry development to evaluate the appropriateness of assumptions.

h. Recognition and measurement of defined benefit plans

b. Estimated impairment of trade receivables

When there is objective evidence of impairment loss, the Company takes into consideration the estimation of future cash flows. The amount of the impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. Where the actual future cash flows are less than expected, a material impairment loss may arise.

c. Income taxes

Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which those deferred tax assets can be utilized. Assessment of the realization of the deferred tax assets requires the Company’s subjective judgment and estimation, including the future revenue growth and profitability, tax holidays, the amount of tax credits that can be utilized and feasible tax planning strategies. Any changes in the global economic environment, industry trends and relevant laws and regulations could result in significant adjustments to the deferred tax assets.

6. CASH

CASH
Cash on hand Demand deposits		December 31
		2015 $ 1,352 4,189,574 $ 4,190,926	2014 $ 1,340 6,540,514 $ 6,541,854

d. Fair value measurements and valuation processes

If some of the Company's assets and liabilities measured at fair value have no quoted prices in active markets, the Company’s management uses its judgment in selecting an appropriate valuation technique for financial instruments or to determine whether to engage third party qualified valuers and to determine the appropriate valuation techniques for fair value measurements.

Where Level 1 inputs are not available, the Company or engaged valuers would determine appropriate inputs by referring to prices of same equity instruments not quoted in active markets and market prices or rates and specific features of derivatives. If the actual changes of inputs in the future differ from expectation, fair value might vary accordingly. The Company updates inputs every quarter to confirm the appropriateness of fair value measurement.

Information about the valuation techniques and inputs used in determining the fair value of various assets and liabilities is disclosed in Note 29.

e. Impairment of property, plant and equipment

f. Write-down of inventory

7. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

Financial assets held for trading Derivative financial assets (not under hedge accounting) Cross-currency swap contracts		December	31
		2015 $ 45,845	2014 $ -

At the end of the reporting period, cross-currency swap contracts not under hedge accounting were as follows:

pg p, follows:	y		g g
			Notional Amount
	Currency	Maturity Date	(In Thousands)
December 31, 2015
Cross-currency swap contracts	USD/NTD	2016.11.09	USD100,000/NTD3,212,900
December 31, 2014:None.

The Company entered into cross-currency swap contracts during the year ended December 31, 2015 to manage exposures due to fluctuations of foreign exchange rates. The derivative contracts entered into by the Company did not meet the criteria for hedge accounting. Thus, the derivative contracts classified as financial assets or financial liabilities at fair value through profit or loss. The financial risk management objectives of the Company were to minimize risks due to changes in fair value or cash flows.

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On financial instruments with fair value through profit or loss (FVTPL), the Company had (a) net gains of $45,845 thousand for the year ended December 31, 2015.

8. TRADE RECEIVABLES, NET

TRADE RECEIVABLES, NET
Notes receivable Notes receivable - operating Allowance for impairment loss Trade receivables Trade receivables Allowance for impairment loss Unrealized interests revenue		December 31
		2015 $ 180 - $ 180 $ 21,751,209 (68,241) (41,425) $ 21,641,543	2014 $ 40,613 - $ 40,613 $ 23,212,545 (54,423) (46,981) $ 23,111,141

The aging of receivables was as follows:

Not overdue Overdue 1-60 days 61-210 days 211-240 days Over 241 days		December 31	December 31
		2015 $ 21,312,911 304,692 73,030 1,026 59,550 438,298 $ 21,751,209	2014 $ 22,678,151 382,757 63,945 - 87,692 534,394 $ 23,212,545

The above aging schedule was based on the past due date.

At the end of the reporting period, trade receivables from sales on installments by the Company were as follows:

December 31 2015 2014 Gross amounts trade receivables $ 966,328 $ 789,720 Unrealized interests revenue (41,425) (46,981) $ 924,903 $ 742,739 The amounts of the above trade receivables expected to be recovered were $161,055 thousand per year from 2016 to 2021.		December 31

9. INVENTORIES, NET

December 31 2015 2014 Merchandise $ 6,265,512 $ 4,770,066 Raw materials 2,388,627 1,906,659 Finished good 985,689 884,640 Work in progress 818,436 445,210 Inventory in transit - 416,290 $ 10,458,264 $ 8,422,865 Movements in the allowance for inventory write-down were as follows: For the Year Ended December 31 2015 2014 Balance at January 1 $ 1,159,243 $ 218,025 Allowance for inventory write-downs 162,974 486,882 Acquired from business combination - 454,336 Balance at December 31 $ 1,322,217 $ 1,159,243		December 31	December 31
		2015 $ 1,159,243 162,974 - $ 1,322,217	2014 $ 218,025 486,882 454,336 $ 1,159,243

The cost of inventories recognized as cost of goods sold for the years ended December 31, 2015 and 2014 was $110,580,446 thousand and $104,930,667 thousand, respectively.

As of December 31, 2015 and 2014, the Company did not have the age of the trade receivables that were past due but not impaired.

10. AVAILABLE-FOR-SALE FINANCIAL ASSETS

Movements in the allowance for impairment loss recognized on trade receivables were as follows:

Balance at January 1 Allowance for impairment loss Acquired from business combination Balance at December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2015 $ 54,423 13,818 - $ 68,241	2014 $ 21,109 19,385 13,929 $ 54,423

AVAILABLE-FOR-SALE FINANCIAL ASSETS
Non-current Domestic investments Listed shares Unlisted shares		December 31
		2015 $ 287,229 4,620 291,849	2014 $ 591,405 4,620 596,025 (Continued)

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12. DEBT INSTRUMENTS WITH NO ACTIVE MARKET

Foreign investments Unlisted shares Listed shares		December 31	December 31
		2015 $ 20,163 9,262 29,425 $ 321,274	2014 $ 41,337 8,929 50,266 $ 646,291 (Concluded)

Refer to Note 29 for information relating to the fair values of on available-for-sale financial assets determined.

There was objective evidence that the fair values of some financial assets were below their carrying costs and will permanently decline. As a result, the Company recognized impairment losses of $54,801 thousand and $90,348 thousand respectively in the statements of comprehensive income for the years ended December 31, 2015 and 2014.

11. DERIVATIVE FINANCIAL INSTRUMENTS FOR HEDGING

DERIVATIVE FINANCIAL INSTRUMENTS FOR HEDGING
Derivative financial assets under hedge accounting-current Cash flow hedges - interest rate swaps		December	31
		2015 $ -	2014 $ 11,989

The Company’s liabilities with floating interest rate might be affected by changes in the market rate. Thus, future cash flows on those liabilities might fluctuate, exposing the Company to cash flow risk. To hedge against this risk, the Company entered into an interest rate swap contract with a bank to change the floating rate of its liabilities to fixed rate. The cash flow hedge transactions are deemed sufficient.

The outstanding interest rate swap contracts of the Company at the end of the reporting period were as follows:

December 31, 2015: None.

December 31, 2014

December 31, 2014
Notional Amounts		Range of	Range of Interest
(In Thousands)	Maturity Date	Interest Rates Paid	Rates Received
NT$2,400,000	2008.9.23-2015.9.23	1.895%	0.888%

DEBT INSTRUMENTS WITH NO ACTIVE MARKET
Pledged deposits Current Non-current		December	31
		2015 $ 10,308 $ 9,573 735 $ 10,308	2014 $ 1,789 $ 1,054 735 $ 1,789

Refer to Note 31 for information on debt instruments with no active market pledged as security.

13. INVESTMENTS ACCOUNTED FOR BY THE EQUITY METHOD

Investments in subsidiaries Investments in associates a. Investments in subsidiaries Lite-On International Holding Co., Ltd. Lite-On Singapore Pte. Ltd. Lite-On Electronics H.K. Ltd. Lite-On Mobile Pte. Ltd. High Yield Group Co., Ltd. Lite-On Technology USA, Inc. Lite-On Automotive International (Cayman) Co., Ltd. Lite-On Capital Corp. Silitech Technology Corp. Eagle Rock Investment Ltd. Lite-On Electronics (Thailand) Co., Ltd. LTC Group Ltd. (BVI) Lite-On Japan Ltd. Philip & Lite-On Digital Solutions Corp. Lite-On Technology (Europe) B.V. Lite-On Overseas Trading Co., Ltd. Lite-On Vietnam Co., Ltd. Lite-On Electronics (Europe) Ltd. Lite-On Integrated Service Inc. Lite-On Automotive Electronics (Europe) B.V. Lite-On Information Technology B.V. Lite-On Automotive Service USA Inc. Leotek Electronics Holding Limited Lite-On IT Singapore Pte. Ltd.		December 31
		2015 2014 $ 77,923,043 $ 72,554,730 2,883,134 2,874,759 $ 80,806,177 $ 75,429,489 December 31
		2015 2014 $ 25,106,404 $ 23,434,167 15,338,196 11,059,029 11,231,033 10,381,190 8,790,237 10,248,622 5,305,483 5,436,169 2,359,141 1,930,753 1,897,276 1,637,335 1,598,494 1,499,284 1,487,387 1,523,632 1,410,738 1,768,331 1,304,188 1,252,123 592,312 349,883 358,234 337,901 337,073 467,959 311,079 216,138 242,239 281,227 70,420 71,623 53,011 47,877 46,323 45,290 43,143 45,626 18,056 11,355 12,908 12,955 9,668 15,526 - 397,240 (Continued)

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Lite-On Sales & Distribution Inc. Lite-On Automotive North America Inc. LarView Technologies Corporation (Samoa) Lite-On Automotive Electronics Mexico, S.A. DE C.V. Li Shin International Enterprise Corp. LET (HK) Ltd. Add: Credit balance on the carrying value of investments accounted for using equity method Lite-On International Holding Co., Ltd. Lite-On Electronics H.K. Ltd. Lite-On Capital Corp. Lite-On Singapore Pte. Ltd. Lite-On Technology USA, Inc. Lite-On Electronics (Thailand) Co., Ltd. LTC Group Ltd. (BVI) Lite-On Overseas Trading Co., Ltd. Lite-On Electronics (Europe) Ltd. Lite-On Integrated Service Inc. Lite-On Mobile Pte. Ltd. Lite-On Vietnam Co., Ltd. Li Shin International Enterprise Corp. Eagle Rock Investment Ltd. LET (HK) Ltd. High Yield Group Co., Ltd. Lite-On Information Technology B.V. Leotek Electronics Holding Limited Lite-On Automotive Electronics (Europe) B.V. Lite-On Automotive Service USA Inc. Lite-On Automotive International (Cayman) Co., Ltd. Lite-On Automotive Electronics Mexico, S.A. DE C.V. Lite-On Technology (Europe) B.V. Lite-On Japan Ltd. Philip & Lite-On Digital Solutions Corp. Silitech Technology Corp. LarView Technologies Corporation (Samoa) Lite-On Automotive North America Inc. Lite-On Sales & Distribution Inc. Lite-On IT Singapore Pte. Ltd.		December 31
		2015 2014 $ - $ 69,816 - 10,291 - 3,388 (59,097) - (67,845) (65,643) (285,689) (518,191) 77,510,412 71,970,896 412,631 583,834 $ 77,923,043 $ 72,554,730 (Concluded) Proportion of Ownership and Voting Rights
		December 31
		2015 2014 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 99.00% - 54.00% 54.00% 49.49% 49.49% 49.00% 49.00% 33.87% 32.08% - 100.00% - 100.00% - 100.00% - 100.00%

The Company and the subsidiary - Lite-On Singapore Pte. Ltd. set up a subsidiary - Lite-On Automotive Electronics Mexico, S.A. DE C.V. and acquired all equity interest on January 2015.

Due to the reorganization within the group, Lite-On Technology USA, Inc. acquired all equity of Lite-On Sales & Distribution Inc. in January 2015. In addition, Lite-On Singapore Pte. Ltd. merged with Lite-On IT Singapore Pte. Ltd., with Lite-On Singapore Pte. Ltd. as the survivor entity. The merger took effect in January 2015, and Lite-On Singapore Pte. Ltd. thus assumed all rights and obligations of Lite-On IT Singapore Pte. Ltd. on that date.

Lite-On Automotive North America Inc. and LarView Technologies Corporation (Samoa) were liquidated in May and November 2015, respectively.

The Company holds less than 50% equity interest in Lite-On Japan Ltd. and Silitech Technology Corp. Base on the contractual arrangements between the Company and other investors, the Company has the power to direct the relevant activities of Lite-On Japan Ltd. and Silitech Technology Corp. Therefore, the directors of the Company concluded that the Company has the practical ability to direct the relevant activities of Lite-On Japan Ltd. and Silitech Technology Corp. unilaterally and hence the Company has control over Lite-On Japan Ltd. and Silitech Technology Corp.

The investments accounted for by the equity method including the share of profit or loss and other comprehensive income of those investments for the years ended December 31, 2015 and 2014 were based on the subsidiaries’ financial statements audited by auditors for the same years.

b. Investments in associates

Investments in associates
Material associates Lite-On Semiconductor Corp. Dragonjet Corporation Logah Technology Corp. Associates that are not individually material		December 31
		2015 $ 1,544,501 1,047,765 245,119 2,837,385 45,749 $ 2,883,134	2014 $ 1,499,910 1,060,414 304,447 2,864,771 9,988 $ 2,874,759

Material associates:

p. Dragonjet Corporation Logah Technology Corp. Associates that are not individually material Material associates:	,, ,, 1,047,765 1,060,414 245,119 304,447 2,837,385 2,864,771 45,749 9,988 $ 2,883,134 $ 2,874,759
Name of Associate Lite-On Semiconductor Corp. Dragonjet Corporation Logah Technology Corp.	December 31
	2015 2014 18.52% 18.17% 29.62% 29.62% 28.10% 28.10%

Refer to Table 6 “Names, locations, and related information of investees over which the company exercises significant influence” for the nature of activities, principal place of business and country of incorporation of the associates.

The combined equities of the Company and its subsidiaries were more than 20% of the outstanding common stocks of Lite-On Semiconductor Corp. as of December 31, 2015 and 2014. Thus, the investee was accounted for by the equity method.

The financial statements used as basis for calculating the equity-method investments, the Company’s share of profit or loss, and the other comprehensive income attributable the Company had all been audited.

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

summarized as follows:		p p q	p p q
Name of Company Lite-On Semiconductor Corp. Logah Technology Corp.		December 31
		2015 $ 1,227,021 $ 286,735	2014 $ 1,284,225 $ 518,024

The Company’s investments of the above mentioned associates are measured by equity method.

Summarized financial information in respect of each of the Company’s material associates is set out below. The summarized financial information below represents amounts shown in the associates’ financial statements prepared in accordance with IFRSs adjusted by the Company for equity accounting purposes.

Lite-On Semiconductor Corp.

Current assets Non-current assets Current liabilities Non-current liabilities Equity Proportion of the Company’s ownership Equity attributable to the Company Other Carrying amount Operating revenue Operating loss Net profit for the year Other comprehensive income (loss) Total comprehensive income (loss) for the year Dividends received		December 31	December 31
	2015 2014 $ 2,482,368 $ 2,764,367 13,683,914 13,122,985 (5,385,781) (4,012,552) (2,498,858) (3,608,178) $ 8,281,643 $ 8,266,622 18.52% 18.17% $ 1,533,760 $ 1,502,045 10,741 (2,135) $ 1,544,501 $ 1,499,910 For the Year Ended December 31
		2015 $ 6,305,194 $ (382,835) $ 476,872 (93,012) $ 383,860 $ 57,051	2014 $ 7,185,708 $ (183,501) $ 428,587 355,747 $ 784,334 $ 24,298

Dragonjet Corporation

	December 31	December 31
2015 2014 $ 407,198 $ 372,673 2,217,343 2,232,755 (559,090) (494,104) (227,940) (234,066) $ 1,837,511 $ 1,877,258 29.62% 29.62% $ 544,337 $ 556,043 503,428 503,428 - 943 $ 1,047,765 $ 1,060,414 For the Year Ended December 31
	2015 2014 $ 235,792 $ 263,396 $ (2,077) $ 3,902 $ 27,222 $ 56,511 (21,858) 89,400 $ 5,364 $ 145,911 $ 13,364 $ 13,364 December 31
	2015 $ 161,760 792,453 (63,927) (18,048) $ 872,238 28.10% $ 245,119 - $ 245,119	2014 $ 143,537 1,042,939 (80,610) (17,883) $ 1,087,983 28.10% $ 305,723 (1,276) $ 304,447

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Operating revenue Operating loss Net loss for the year Other comprehensive income (loss) Total comprehensive income (loss) for the year Dividends received	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2015 $ 96,107 $ (45,532) $ (211,123) (4,622) $ (215,745) $ -	2014 $ 90,199 $ (55,749) $ (206,774) 23,627 $ (185,147) $ -

Aggregate information of associates that are not individually material:

The Company’s shareof: Net profit for the year Other comprehensive income (loss) Total comprehensive income (loss) for the year	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2015 $ 42,950 (7,189) $ 35,761	2014 $ 23,966 1,842 $ 25,808

Investments accounted for by the equity method and the share of profit or loss and other comprehensive income from those investments in associates that are not individually material are calculated based on the financial statements that have not been audited. Management believes there is no material impact on the equity method accounting or the calculation of the share of profit or loss and other comprehensive income from the financial statements of associates that are not individually material that have not been audited.

14. PROPERTY, PLANT AND EQUIPMENT, NET

PROPERTY, PLANT AND EQUIPMENT, NET
Carrying amounts of each class Freehold land Buildings Machinery equipment Tooling equipment Transportation equipment Office equipment Equipment held under finance lease Other equipment		December 31
		2015 $ 2,226,499 3,118,967 1,080,507 106,959 353 177,409 20,253 148,376 $ 6,879,323	2014 $ 2,226,499 2,935,988 1,413,967 80,239 519 168,000 47,405 505,449 $ 7,378,066

Cost Freehold land Buildings Machinery equipment Tooling equipment Transportation equipment Office equipment Equipment held under finance lease Other equipment Accumulated depreciation Buildings Machinery equipment Tooling equipment Transportation equipment Office equipment Equipment held under finance lease Other equipment Accumulated impairment Freehold land Buildings Machinery equipment Tooling equipment Transportation equipment Office equipment Equipment held under finance lease Other equipment Cost Freehold land Buildings Machinery equipment Tooling equipment Transportation equipment Office equipment Equipment held under finance lease Other equipment Accumulated depreciation Buildings Machinery equipment Tooling equipment Transportation equipment Office equipment Equipment held under finance lease Other equipment			For	the Year Ended December 31, 2015
		January 1, 2015 $ 2,226,499 4,491,518 3,903,005 575,356 4,605 800,410 87,081 1,073,239 13,161,713 1,550,320 2,489,038 495,117 4,086 632,410 39,676 567,790 5,778,437 - 5,210 - - - - - - 5,210 $ 7,378,066	Additions $ - 300,983 247,928 96,690 - 103,957 - 76,863 $ 826,421 $ 136,617 329,991 51,026 166 97,654 23,108 63,245 $ 701,807 $ - - - - - - - - $ - For	Disposals Acquired from Business Combination Reclassification December 31, 2015 $ - $ - $ - $ 2,226,499 22,421 - 116,998 4,887,078 583,721 - 259,327 3,826,539 14,898 - (2 ) 657,146 - - (709 ) 3,896 68,921 - (32,769 ) 802,677 16,624 - 865 71,322 22,765 - (607,811) 519,526 $ 729,350 $ - $ (264,101) 12,994,683 $ 22,375 $ - $ 98,339 1,762,901 218,574 - 145,577 2,746,032 14,091 - 18,135 550,187 - - (709 ) 3,543 68,635 - (36,161 ) 625,268 4,818 - (6,897 ) 51,069 22,633 - (237,252) 371,150 $ 351,126 $ - $ (18,968) 6,110,150 $ - $ - $ - - - - - 5,210 - - - - - - - - - - - - - - - - - - - - - - - - $ - $ - $ - 5,210 $ 6,879,323 the Year Ended December 31, 2014
		January 1, 2014 $ 2,033,482 3,240,213 2,270,617 266,286 827 518,017 5,515 460,298 8,795,255 1,016,138 2,053,972 260,679 770 402,842 5,250 290,480 4,030,131	Additions $ - - 652,863 27,895 93 70,072 - 232,233 $ 983,156 105,367 197,205 36,404 149 67,835 5,462 67,417 $ 479,839	Disposals Acquired from Business Combination Reclassification December 31, 2014 $ - $ 193,017 $ - $ 2,226,499 - 1,251,305 - 4,491,518 86,196 1,202,399 (136,678 ) 3,903,005 32,795 316,321 (2,351 ) 575,356 993 4,678 - 4,605 11,030 224,501 (1,150 ) 800,410 - 81,566 - 87,081 22,142 402,850 - 1,073,239 $ 153,156 $ 3,676,637 $ (140,179) 13,161,713 - 428,815 - 1,550,320 82,770 370,500 (49,869 ) 2,489,038 32,754 233,139 (2,351 ) 495,117 993 4,160 - 4,086 10,844 174,520 (1,943 ) 632,410 - 28,964 - 39,676 19,328 229,221 - 567,790 $ 146,689 $ 1,469,319 $ (54,163) 5,778,437

(Continued)

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Accumulated impairment Freehold land Buildings Machinery equipment Tooling equipment Transportation equipment Office equipment Equipment held under finance lease Other equipment			For	the Year Ended December 31, 2014
		January 1, 2014 $ - - 6,947 - - - - - 6,947 $ 4,758,177	Additions $ - - - - - - - - $ -	Disposals Acquired from Business Combination Reclassification December 31, 2014 $ - $ - $ - $ - - 5,210 - 5,210 - - (6,947 ) - - - - - - - - - - - - - - - - - - - - - $ - $ 5,210 $ (6,947) 5,210 $ 7,378,066 (Concluded)

No impairment assessment was performed for the years ended 2015 and 2014 as there was no indication of impairment.

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

Buildings 2-60 years Machinery equipment 2-10 years Tooling equipment 2-10 years Transportation equipment 3-10 years Office equipment 2-10 years Equipment held under finance lease 3-5 years Other equipment 2-10 years

15. INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET
Carrying amounts of each class Goodwill Patents Software Client relationships		December 31
		2015 $ 5,953,418 568,420 220,412 - $ 6,742,250	2014 $ 5,926,156 860,597 287,809 - $ 7,074,562

Cost Goodwill Patents Software Client relationships Accumulated amortization Goodwill Patents Software Client relationships Accumulated impairment Goodwill Patents Software Client relationships Cost Goodwill Patents Software Client relationships Accumulated amortization Goodwill Patents Software Client relationships Accumulated impairment Goodwill Patents Software Client relationships			For the Year Ended December 31, 2015	For the Year Ended December 31, 2015
		January 1, 2015 $ 6,003,390 4,332,221 1,045,410 163,819 11,544,840 77,234 3,471,624 757,601 163,819 4,470,278 - - - - - $ 7,074,562	Additions Disposals Acquired from Business Combination Reclassification December 31, 2015 $ 27,262 $ - $ - $ - $ 6,030,652 - 946,176 - 22,032 3,408,077 103,001 36,121 - 8,231 1,120,521 - - - - 163,819 $ 130,263 $ 982,297 $ - $ 30,263 10,723,069 $ - $ - $ - $ - 77,234 292,219 946,176 - 21,990 2,839,657 170,395 36,121 - 8,234 900,109 - - - - 163,819 $ 462,614 $ 982,297 $ - $ 30,224 3,980,819 $ - $ - $ - $ - - - - - - - - - - - - - - - - - $ - $ - $ - $ - - $ 6,742,250 (Concluded) For the Year Ended December 31, 2014
		January 1, 2014 $ 622,152 27,134 638,731 163,819 1,451,836 77,234 21,481 543,165 163,819 805,699 - - - - - $ 646,137	Additions $ - 543 252,781 - $ 253,324 $ - 165,897 129,503 - $ 295,400 $ - - - - $ -	Disposals Acquired from Business Combination Reclassification $ - $ 5,381,238 $ - - 4,304,544 - 15,324 177,155 (7,933 ) - - - $ 15,324 $ 9,862,937 $ (7,933) $ - $ - $ - - 3,284,246 - 15,324 108,190 (7,933 ) - - - $ 15,324 $ 3,392,436 $ (7,933) $ - $ - $ - - - - - - - - - - $ - $ - $ -	December 31, 2014 $ 6,003,390 4,332,221 1,045,410 163,819 11,544,840 77,234 3,471,624 757,601 163,819 4,470,278 - - - - - $ 7,074,562

The above items of other intangible assets were amortized on a straight-line basis over the estimated useful life of the asset:

Patents 6 years Software 1-14 years Client relationships 4 years

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a. The Company acquired an asset group from SEEnergy Corp. in September 2015. IFRS 3 “Business Combinations” and IAS 38 “Intangible Assets” define recognized goodwill as the sum of the acquisition cost plus other direct transaction costs minus the fair value of the identifiable net assets acquired. Thus, goodwill was calculated as follows:

Acquisition price Fair value of acquired identifiable net assets: Inventories Property, plant and equipment Software Goodwill	$ 2,420 340 71	$ 30,093 2,831 $ 27,262

To integrate its overall resources and enhance the efficiency of operations, the Company had short-form mergers - in accordance with Article 19 of the Business Mergers and Acquisitions Act - with Li Shin International Enterprise Corp., Lite-On Automotive Corp., Leotek Electronics Corp., Lite-On IT Corp. and LarView Technologies Corp. on March 22, 2014, June 1, 2014, June 29, 2014, June 30, 2014 and September 1, 2014, respectively, under the board of directors’ approval. The Company was the survivor entity in all of these mergers. The investment premium due to merger from Li Shin International Enterprise Corp., Lite-On Automotive Corp., Leotek Electronics Corp., were $1,708,258 thousand, $165,424 thousand, and $220,170 thousand, respectively. The investment premium from acquisition of LarView Technologies Corp. was $368,462 thousand. The goodwill from Lite-On IT Corporation, and Lite-On Automotive Corp. acquiring other companies was $2,806,508 thousand and $112,416 thousand, respectively. The total amount of $5,381,238 thousand was transferred to the Company and recorded as intangible assets - goodwill.

The Company completed the purchase of some assets of the IrDA Department of Avago Technologies Limited. Statement of IFRS 3 - “Business Combinations” and IAS 38 - “Intangible Assets” define recognized goodwill as the sum of the acquisition cost plus other direct transaction costs minus the fair value of the identifiable net assets acquired. Thus, the goodwill generated was calculated at $411,932 thousand as of December 31, 2009.

The goodwill arising from the Company’s acquisition of Lite-On Enclosure Inc. in 2004 was $210,220 thousand was amortized for about five years. However, under the Guidelines Governing the Preparation of Financial Reports, effective January 1, 2006, goodwill need no longer be amortized. As of December 31, 2015 and 2014, the carrying value of goodwill was $132,986 thousand.

b. Goodwill is allocated to the Company’s recoverable amount of cash-generating units. The recoverable amount of all cash-generating units has been determined based on value-in-use calculations. These calculations use pre-tax cash flow projections based on financial budgets approved by the management covering the future five-year period. As of December 31, 2015 and 2014, the recoverable amount of all cash-generating units calculated using the value-in-use exceeded their carrying amount, so goodwill was not impaired. The key assumptions used for value-in-use calculations are gross margin, growth rate and discount rate.

16. BORROWINGS

a. Short-term borrowings

RROWINGS Short-term borrowings
Unsecured borrowings Line of credit borrowings		December 31
		2015 $ 12,874,375	2014 $ 13,467,121

The range of interest rate on bank loans was 0.70%-1.17% and 0.82%-1.16% per annum as of December 31, 2015 and 2014, respectively.

b. Long-term borrowings

.. December 31, 2015 and 2014, respectively. Long-term borrowings	..
Unsecured borrowings Syndicated loan with Citi Bank Chang Hwa Bank Taiwan Cooperative Bank Current portion Long-term borrowings: Non-current	December 31
	2015 2014 $ 12,000,000 $ 12,000,000 500,000 500,000 - 425,000 12,500,000 12,925,000 (2,900,000) (5,225,000) $ 9,600,000 $ 7,700,000

As of December 31, 2015 and 2014, the Company had 2 and 4 long-term bank loans respectively with contract terms between October 19, 2011 and September 23, 2018. The floating interest rates are (1.5789% to 1.59067% and 1.520% to 1.703% as of December 31, 2015 and 2014, respectively) payable monthly or quarterly. These loans should be repaid in 5 or 8 installments or at lump sum on loan maturity.

On September 23, 2008, the Company signed a contract for a five-year syndicated loan with Citibank and 14 other financial institutions, and on May 16, 2011, changed the contract period to seven years from 2008. The repayment period is between September 23, 2008 and September 22, 2015. The credit line is $15 billion, consisting of (a) $12 billion and (b) $3 billion of the credit line of the above syndicated loan. The Company had repaid the syndicated loan in September 2015.

On September 12, 2013, the Company signed another contract for a five-year syndicated loan with Citibank and 16 other financial institutions. The credit line was $15 billion, which was for Company to repay the former syndicated loan with Citibank signed on September 23, 2008, consisting of (a) $12 billion and (b) $3 billion of the credit line of the above syndicated loan. It should be used as a medium-term loan but may not be used on a revolving basis.

The principal of this syndication loan should be repaid three years after September 23, 2013 in five semiannual installments with the first payment paid on September 23, 2016, and the interest rate is the 90-day Taipei Interbank Offered Rate plus 61 points. Under the syndicated loan agreement, the Company should maintain the agreed financial ratios based on the most recent semiannual or annual financial statements. As of December 31, 2015 and 2014, the Company used $12 billion of the credit line of the above syndicated loan.

As of December 31, 2015 and 2014, the Company did not violate the financial ratio agreement stated above.

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The amounts included in the balance sheets in respect of the Company’s defined benefit plans were as follows:

17. PROVISIONS

PROVISIONS
Current Warranties		December 31
		2015 $ 853,031	2014 $ 828,287

Movements in the provisions were as follows:

Current Warranties Movements in the provisions were as follows:	2015 $ 853,031	2015 $ 853,031	2014 $ 828,287
Balance at January 1 Recognition of provisions Usage Acquired from business combination Balance at December 31	For the Year Ended		December 31
		2015 $ 828,287 263,383 (238,639) - $ 853,031	2014 $ 133,230 231,972 (109,217) 572,302 $ 828,287

The provision for warranty claims represents the present value of management’s best estimate of the futu outflow of economic benefits that will be required under the Company’s obligations for warranties under local sale of goods legislation. The estimate had been made on the basis of historical warranty trends and may vary as a result of the entry of new materials, altered manufacturing processes or other events affecting product quality.

18. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

The Company adopted a pension plan under the Labor Pension Act (the “LPA”), which is a state-managed defined contribution plan. Under the LPA, an entity makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages.

b. Defined benefit plans

The defined benefit plan adopted by the Company in accordance with the Labor Standards Law is operated by the government. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the six months before retirement. The Company contributes amounts equal to 2% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name. Before the end of each year, the Company assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (“the Bureau”); the Company has no right to influence the investment policy and strategy.

The amounts included in the balance sheets in respect of the Com follows:	pa	ny’s defined benefit plans were as	ny’s defined benefit plans were as
Present value of defined benefit obligation Fair value of plan assets Net defined benefit liability (asset)		December 31
		2015 $ 1,154,819 (1,090,884) $ 63,935	2014 $ 1,072,976 (1,072,993) $ (17)

Movements in net defined benefit liability (asset) were as follows:

	Present Value	Present Value
	of	the Defined			Net Defined
		Benefit	Fair Value of			Benefit
	Obligation		the	Plan Assets	Liability (Asset)
Balance at January 1, 2014	$	870,102	$	(858,929)	$	11,173
Current service cost		7,661		-		7,661
Net interest expense (income)		17,292		(17,439)		(147)
Recognized in profit or loss		24,953		(17,439)		7,514
Remeasurement
Return on plan assets (excluding amounts
included in net interest)		-		(4,794)		(4,794)
Actuarial loss - changes in financial
assumptions		4,572		-		4,572
Actuarial gain - experience adjustments		(9,686)		-		(9,686)
Recognized in other comprehensive income
(loss)		(5,114)		(4,794)		(9,908)
Contributions from the employer		-		(17,243)		(17,243)
Benefits paid		(16,619)		16,619		-
Business combinations		199,654		(191,207)		8,447
Balance at December 31, 2014	$	1,072,976	$	(1,072,993)	$	(17)
Balance at January 1, 2015	$	1,072,976	$	(1,072,993)	$	(17)
Current service cost		7,717		-		7,717
Net interest expense (income)		17,964		(18,137)		(173)
Recognized in profit or loss		25,681		(18,137)		7,544
Remeasurement
Return on plan assets (excluding amounts
included in net interest)		-		(10,538)		(10,538)
Actuarial loss - changes in financial
assumptions		68,088		-		68,088
Actuarial loss - experience adjustments		19,076		-		19,076
Recognized in other comprehensive income
(loss)		87,164		(10,538)		76,626
Contributions from the employer		-		(20,218)		(20,218)
Benefits paid		(31,002)		31,002		-
Balance at December 31, 2015	$	1,154,819	$	(1,090,884)	$	63,935

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Through the defined benefit plans under the Labor Standards Law, the Company is exposed to the following risks:

19. EQUITY

a. Share capital
1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for a 2-year time deposit with local banks.
2) Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plan’s debt investments.
3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

q . g p p as follows:
Discount rate Expected rate of salary increase	December 31
	2015 2014 1.10% 1.70% 3.00% 3.00%

Discount rate 0.25% increase 0.25% decrease Expected rate of salary increase 0.25% increase 0.25% decrease		December	31
		2015 $ (29,099) $ 30,194 $ 28,997 $ (28,114)	2014 $ (29,014) $ 30,170 $ 29,304 $ (28,341)

1) Ordinary shares

Y re capital Ordinary shares
Numbers of shares authorized (in thousands) Shares authorized Number of shares issued and fully paid (in thousands) Shares issued		December 31
		2015 3,500,000 $ 35,000,000 2,334,928 $ 23,349,283	2014 3,500,000 $ 35,000,000 2,341,674 $ 23,416,737

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

Of the Company’s authorized shares, 100,000 thousand shares had been reserved for the issuance of employee share options.

2) Issued global depositary receipts

On September 25, 1996, the Company issued 4,900 thousand units of global depositary receipts (GDRs) on the London Stock Exchange. These GDRs represented 49,000 thousand common shares of the Company.

On April 3, 1995, GVC Corp. issued 5,000 units of GDRs on the London Stock Exchange. These GDRs represented 25,000 thousand common shares of GVC Corp., which later issued more shares. As of November 4, 2002, the outstanding GDRs were 7,627 thousand units, or 38,136 thousand common shares of GVC Corp. For merger purposes, these GDRs were exchanged for the Company’s 1,478 thousand marketable equity securities, which represented the Company’s 14,781 thousand common shares.

As of December 31, 2015 and 2014, the outstanding marketable equity securities were 5,217 thousand units and 5,213 thousand units, representing 52,168 thousand common share and 52,127 thousand common shares of the Company, respectively. The rights and obligation of security holders are the same as those of common shareholders, except for voting rights. As of December 31, 2015 and 2014, the unredeemed GDRs amounted to 816 thousand units and 994 thousand units.

b. Capital surplus

The expected contributions to the plan for the next year The average duration of the defined benefit obligation		December	31
	2015 2014 $ 19,920 $ 20,400 10.32 years 11.32 years

The capital surplus arising from share of changes in equities of subsidiaries, changes in equities of associates and joint ventures accounted for by the equity method and treasury share transactions from dividends according to the Company’s shares holding by subsidiaries may only be used to offset a deficit.

c. Retained earnings and dividend policy

To ensure the availability of cash for the Company’s present and future expansion plans and to meet shareholders’ cash flow requirements, the Company prefers to distribute more stock dividends. In principle, cash dividends are limited to 10% of total dividends distributed.

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The Company’s Articles of Incorporation provide that the annual net income, less any deficit, and 10% legal reserve as well as special reserve equal to the debit balances of the shareholders’ equity accounts, together with the distributable unappropriated earnings of prior years, can be retained partially on the basis of operating requirements. The remainder should be distributed as follows:

1) Bonus to employees: At least 1%.

The appropriations of earnings for 2015 are subject to the resolution of the shareholders’ meeting to be held on June 24, 2016.

d. Others equity items

Movements in others equity items were as follows:

2) Bonus to directors: 1.5% or less.
3) Others, as dividends.

In accordance with the amendments to the Company Act in May 2015, the recipients of dividends and bonuses are limited to shareholders and do not include employees. The consequential amendments to the Company’s Articles of Incorporation had been proposed by the Company’s board of directors on March 25, 2016 and are subject to the resolution of the shareholders in their meeting to be held on June 24, 2016. For information about the accrual basis of the employees’ compensation and remuneration to directors and supervisors and the actual appropriations, please refer to Note 21 (b).

Under Rule No. 1010012865, Rule No. 1010047490 and Rule No. 1030006415 issued by the FSC and the directive titled “Questions and Answers for Special Reserves Appropriated Following Adoption of IFRSs”, the Company should appropriate or reverse a special reserve.

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

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

, , , follows:	.
Legal reserve Special reserve Reversal of special reserve Share dividends Cash dividends	Appropriation of Earnings 2014 2013 $ 646,166 $ 875,485 182,544 - - 640,244 117,084 116,381 4,613,097 6,307,866	Dividends Per Share (NT$)
		2014 2013 $ 0.05 $ 0.05 1.97 2.71

The appropriations of earnings for 2015 had been proposed by the Company’s board of directors on March 25, 2016. The appropriations and dividends per share were as follows:

ppp g March 25, 2016. The appropriations and	pp y py dividends per share were as follows:	pp y py dividends per share were as follows:
	Appropriation		Dividends Per
	of	Earnings	Share	(NT$)
Legal reserve	$	722,290
Special reserve		166,389
Share dividends		116,746	$	0.05
Cash dividends		5,113,493		2.19

Balance at January 1 Exchange differences arising on translating the financial statements of foreign operations Loss arising on changes in the fair value of available-for- sale financial assets Reclassification to income from disposal of available-for-sale financial assets Gain arising on changes in the fair value of hedging instruments Share of other comprehensive income of subsidiaries and associates Income tax effect Balance at December 31 Balance at January 1 Exchange differences arising on translating the financial statements of foreign operations Gain arising on changes in the fair value of available-for- sale financial assets Reclassification to income from disposal of available-for-sale financial assets		2015
		Foreign Currency Translation Reserve Unrealized Gain (Loss) from Available-for- sale Financial Assets Cash Flow Hedges Reserve $ 4,125,097 $ 139,072 $ (11,989) (818,537) - - - (280,893) - - (19,926) - - - 11,989 (91,013) 9,033 - 132,355 - - $ 3,347,902 $ (152,714) $ - 2014	Total $ 4,252,180 (818,537) (280,893) (19,926) 11,989 (81,980) 132,355 $ 3,195,188
		Foreign Currency Translation Reserve Unrealized Gain from Available-for- sale Financial Assets Cash Flow Hedges Reserve $ 2,383,040 $ 83,231 $ (46,969) 2,394,153 - - - 298,311 - - (259,010) -	Total $ 2,419,302 2,394,153 298,311 (259,010) (Continued)

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Gain arising on changes in the fair value of hedging instruments Share of other comprehensive income of subsidiaries and associates The proportionate share of other comprehensive income reclassified to profit or loss upon partial disposal of associates Effect of deconsolidation of subsidiary (Note 25) Income tax effect Balance at December 31		2014
		Foreign Currency Translation Reserve Unrealized Gain from Available-for- sale Financial Assets Cash Flow Hedges Reserve Total $ - $ - $ 34,980 $ 34,980 (233,000) 16,540 - (216,460) (1,240) - - (1,240) (13,549) - - (13,549) (404,307) - - (404,307) $ 4,125,097 $ 139,072 $ (11,989) $ 4,252,180 (Concluded)

The exchange differences arising on translation of foreign operation’s net assets from its functional currency to the Company’s presentation currency are recognized directly in other comprehensive income and also accumulated in the foreign currency translation reserve.

e. Treasury shares

Unit: In Thousands of Shares

	Number of	Increase	Decrease	Number of
	Shares at	During the	During the	Shares at
Purpose of Buyback	January 1	Period	Period	December 31
For the year ended December 31, 2015
Shares held by its subsidiaries	26,575	133	-	26,708
Shares buyback for cancellation	-	22,787	22,787	-
	26,575	22,920	22,787	26,708
				(Continued)

	Number of	Increase	Decrease	Number of
	Shares at	During the	During the	Shares at
Purpose of Buyback	January 1	Period	Period	December 31
For the year ended December 31, 2014
Shares held by its subsidiaries	28,118	132	1,675	26,575

(Concluded)

The Company’s shares held by its subsidiaries at the end of the reporting periods were as follows:

Name of Subsidiary Number of Shares Held (In Thousands) December 31, 2015 Lite-On Capital Corp. 15,041 LTC International Ltd. 6,969 Yet Foundate Ltd. 2,260 Lite-On Electronics Co., Ltd. 2,438 December 31, 2014 Lite-On Capital Corp. 14,966 LTC International Ltd. 6,935 Yet Foundate Ltd. 2,248 Lite-On Electronics Co., Ltd. 2,426	Carrying Amount Market Price $ 718,857 $ 479,049 297,469 221,759 126,881 71,820 105,515 77,491 $ 1,248,722 $ 850,119 $ 718,857 $ 544,761 297,469 272,328 126,881 95,922 105,515 103,497 $ 1,248,722 $ 1,016,508

On July 20, 2015, the Company’s Board of Directors approved the repurchase of up to 100,000 thousand shares listed on the Taiwan Stock Exchange between July 21, 2015 and September 20, 2015, with the buyback price ranging from $25.34 to $53.97. By the end of the repurchase period, the Company had bought back 22,787 thousand shares for $706,679 thousand. The Company has already registered with the Ministry of Economic Affairs to cancel those buy-back shares.

Under the Securities and Exchange Act, the Company shall neither pledge treasury shares nor exercise shareholders’ rights on these shares, such as rights to dividends and to vote. The subsidiaries holding treasury shares, however, retain shareholders’ rights, except the rights to participate in any share issuance for cash and to vote.

20. REVENUE

REVENUE
Revenue from the sale of goods Royalty income Revenue from management services Rental income from property	For the Year Ended December 31
		2015 $ 122,362,953 1,332,439 830,524 103,332 $ 124,629,248	2014 $ 113,855,987 1,054,983 766,148 115,130 $ 115,792,248

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21. ADDITIONAL INFORMATION ON EXPENSES

Net income included the following items:

a. Depreciation and amortization Property, plant and equipment Intangible assets Depreciation expenses summarized by function Recognized in cost of revenue Recognized in operating expenses Amortization expenses summarized by function Recognized in cost of revenue Recognized in operating expenses b. Employee benefit expenses Post-employment benefits (Note 18) Defined contribution plans Defined benefit plans Termination benefits Other employee benefits Employee benefit expenses summarized by function Recognized in cost of revenue Recognized in operating expenses	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2015 $ 701,807 462,614 $ 1,164,421 $ 212,606 489,201 $ 701,807 $ 3,084 459,530 $ 462,614 $ 213,948 7,544 221,492 32,500 6,001,944 $ 6,255,936 $ 807,678 5,448,258 $ 6,255,936	2014 $ 479,839 295,400 $ 775,239 $ 107,948 371,891 $ 479,839 $ 11,772 283,628 $ 295,400 $ 171,589 7,514 179,103 17,770 4,943,380 $ 5,140,253 $ 462,255 4,677,998 $ 5,140,253

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

The appropriations of bonuses to employees and remuneration to directors for 2014 and 2013, which have been approved in the shareholders’ meetings on June 24, 2015 and June 19, 2014, respectively, were as follows:

Bonus to employees Remuneration of directors	For the Year Ended December 31	For the Year Ended December 31
	2014 Cash Dividends Share Dividends $ 768,033 $ 146,292 54,924 -	2013
		Cash Dividends Share Dividends $ 997,212 $ 189,945 70,039 -

There was no difference between the amounts of the bonus to employees and the remuneration to directors approved in the shareholders’ meeting on June 24, 2015 and June 19, 2014 and the amounts recognized in the Company’s financial statements for the years ended December 31, 2014 and 2013, respectively.

Information on the employees’ compensation and remuneration to directors resolved by the Company’s board of directors in 2016 and bonus to employees and directors resolved by the shareholders' meeting in 2015 and 2014 are available on the Market Observation Post System website of the Taiwan Stock Exchange.

22. INCOME TAX

To be in compliance with the Company Act as amended in May 2015, the proposed amended Articles of Incorporation of the Company stipulate to distribute employees’ compensation and remuneration to directors at a certain percentage of net profit before income tax, employees’ compensation, and remuneration to directors. The employees’ compensation and remuneration to directors for the year ended December 31, 2015 have been approved by the Company’s board of directors on March 25, 2016 and are subject to the resolution and adoption of the amendments to the Company’s Articles of Incorporation by the shareholders in their meeting to be held on June 24, 2016, and in addition thereto a report of such distribution shall be submitted to the shareholders' meeting. The details were as follows:

Employees’compensation Remuneration to directors	For the Year Ended December 31, 2015
	Cash Share $ 858,514 $ 163,526 61,395 -

a. Income tax recognized in profit or loss

The major components of tax expense (benefit) were as follows:

COME TAX Income tax recognized in profit or loss The major components of tax expense (benefit) were as follows:
Current income tax expense (benefit) Current tax expense recognized in the current year Adjustment forprior years’tax Deferred tax The origination and reversal of temporary differences Income tax expense recognized in profit or loss	For the Year Ended December 31
		2015 $ 768,721 (154,022) 614,699 494,853 $ 1,109,552	2014 $ 833,181 (76,196) 756,985 (791,069) $ (34,084)

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A reconciliation of income before income tax and income tax expense (benefit) recognized in profit or loss was as follows:

loss was as follows:
Income before tax Income tax expense at the statutory rate Tax effect of adjusting items: Deductible items in determining taxable income Additional income tax on unappropriated earnings The origination and reversal of temporary differences Adjustment forprior years’tax Income tax expense (benefit) recognized in profit or loss	For the Year Ended December 31
		2015 $ 8,332,451 $ 1,416,517 (738,895) 91,099 494,853 (154,022) $ 1,109,552	2014 $ 6,426,724 $ 1,092,543 (468,898) 209,536 (791,069) (76,196) $ (34,084)

The applicable tax rate used above is the corporate tax rate of 17% payable by the Company.

As the status of 2016 appropriations of earnings is uncertain, the potential income tax consequences of 2015 unappropriated earnings are not reliably determinable.

b. Income tax expense recognized in other comprehensive income

Deferred income tax expense (benefit) Translation of foreign operations Related to actuarial gain/loss from defined benefit plans	For the Year Ended	For the Year Ended	December 31
		2015 $ (132,355) (13,026) $ (145,381)	2014 $ 404,307 1,684 $ 405,991

c. Deferred income tax balance

The analysis of deferred income tax assets was as follows:


Temporary differences Investment accounted for using equity method Impairment loss on assets Unrealized loss on inventories Unrealized loss and expense Accrued warranty expense Net defined benefit liability Unrealized sales profit Unrealized exchange loss net Accumulated compensated absences		December 31
		2015 $ 1,109,952 328,940 224,777 190,948 145,015 47,346 38,615 12,699 7,850 $ 2,106,142	2014 $ 1,266,944 325,877 197,071 117,257 113,095 36,465 40,835 - 27,390 $ 2,124,934

2015
Temporary differences
Investment accounted for
using equity method

Impairment loss on assets
Unrealized loss on
inventories
Unrealized loss and
expense
Accrued warranty expense
Net defined benefit
liability
Unrealized sales profit
Unrealized exchange loss
net
Accumulated
compensated absences

2014
Temporary differences
Investment accounted for
using equity method

Impairment loss on assets
Unrealized loss on
inventories
Unrealized loss and
expense
Accrued warranty expense
Unrealized sales profit
Net defined benefit
liability
Accumulated
compensated absences
Available-for-sale
financial assets

Opening
Balance
Recognized in
Profit (Loss)
Recognized in
Other
Comprehensive
Income (Loss)
Acquired from
Business
Combination Closing Balance
$ 1,266,944
$ (156,992) $ -
$ -
$ 1,109,952

325,877
3,063
-
-
328,940
197,071
27,706
-
-
224,777
117,257
73,691
-
-
190,948

113,095
31,920
-
-
145,015
36,465
(2,145)
13,026
-
47,346
40,835
(2,220)
-
-
38,615
-
12,699
-
-
12,699

27,390

(19,540)

-

-

7,850
$ 2,124,934
$ (31,818)
$ 13,026
$ -
$ 2,106,142
$ 374,803
$ 477,908 $ -
$ 414,233
$ 1,266,944

298,231
15,359
-
12,287
325,877
37,064
88,805
-
71,202
197,071
107,152
5,164
-
4,941
117,257

22,649
(32,423)
-
122,869
113,095
51,236
(42,152)
-
31,751
40,835
24,590
1,654
(1,684)
11,905
36,465

1,596
25,794
-
-
27,390

4,520

(4,771)

-

251

-
$ 921,841
$ 535,338
$ (1,684)
$ 669,439
$ 2,124,934

The analysis of deferred income tax liabilities was as follows:

The analysis of deferred income tax liabilities was as follows:
Temporary differences Investment accounted for using equity method Unrealized amortization of goodwill Land value increment tax Unrealized exchange gains net		December 31
		2015 $ 2,698,177 353,808 230,216 - $ 3,282,201	2014 $ 2,355,715 353,808 230,216 11,782 $ 2,951,521

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2015
Temporary differences
Investment accounted for
using equity method

Unrealized amortization
of goodwill
Land value increment tax
Unrealized exchange
gains net

2014
Temporary differences
Investment accounted for
using equity method

Unrealized amortization
of goodwill
Land value increment tax
Unrealized exchange
gains net

Opening
Balance
Recognized in
(Profit) Loss
Recognized in
Other
Comprehensive
(Income) Loss
Acquired from
Business
Combination Closing Balance
$ 2,355,715
$ 474,817
$ (132,355) $ -
$ 2,698,177
353,808
-
-
-
353,808

230,216
-
-
-
230,216

11,782

(11,782)

-

-

-
$ 2,951,521
$ 463,035
$ (132,355)
$ -
$ 3,282,201
$ 1,212,198
$ (238,275) $ 404,307
$ 977,485
$ 2,355,715
35,737
-
-
318,071
353,808

230,216
-
-
-
230,216

45,420

(17,456)

-

(16,182)

11,782
$ 1,523,571
$ (255,731)
$ 404,307
$ 1,279,374
$ 2,951,521

d. The aggregate amount of temporary difference associated with investments for which deferred tax liabilities have not been recognized

As of December 31, 2015 and 2014, the aggregate deductible temporary differences for which no deferred income tax assets have been recognized amounted to $663,496 thousand and $223,496 thousand, respectively.

e. Integrated income tax

thousand, respectively. Integrated income tax		, ,	, ,
Unappropriated earnings Unappropriated earnings generated before January 1, 1998 Unappropriated earnings generated on and after January 1, 1998 Imputation credits accounts		December 31
		2015 $ 2,215 13,008,858 $ 13,011,073 $ 1,485,076	2014 $ 2,215 11,430,326 $ 11,432,541 $ 1,308,623

The estimated and actual creditable ratio for distribution of earnings of 2015 and 2014 were 11.41% and 11.18%, respectively.

Under the Income Tax Law, for distribution of earnings generated after January 1, 1998, the imputation credits allocated to ROC resident shareholders of the Company was calculated based on the creditable ratio as of the date of dividend distribution. The actual imputation credits allocated to shareholders of the Company was based on the balance of the Imputation Credit Accounts (ICA) as of the date of dividend distribution. Therefore, the expected creditable ratio for the 2015 earnings may differ from the actual creditable ratio to be used in allocating imputation credits to the shareholders.

f. Income tax assessments

The tax returns through all years, except 2012 to 2014, have been assessed by the tax authorities. The Company disagreed with the tax authorities’ assessment of 2013 tax return and applied for a reexamination. Nevertheless, to be conservative, the Company provided for the possible income tax.

23. EARNINGS PER SHARE

Unit: NT$ Per Share

EARNINGS PER SHARE	Unit: NT$ Per Share	Unit: NT$ Per Share	Unit: NT$ Per Share
Basic earnings per share Diluted earnings per share	For the Year Ended December 31
		2015 $ 3.11 $ 3.07	2014 $ 2.78 $ 2.75

The earnings and weighted average number of ordinary shares outstanding in the computation of earnings per share from continuing operations were as follows:

2015
Basic EPS
The net income of common shareholders

Effect of dilutive potential common stock:
Employees’compensation

Diluted EPS
The net income of common shareholders plus
the effect of potential dilutive common stock
2014
Basic EPS
The net income of common shareholders

Effect of dilutive potential common stock:
Bonus issue to employees

Diluted EPS
The net income of common shareholders plus
the effect of potential dilutive common stock

Amounts
(Numerator)
Shares
(Denominator)
(Thousands)
Earnings
Per Share
(NT$)
$ 7,222,899
2,320,208
$ 3.11

-

34,377
$ 7,222,899
2,354,585
$ 3.07
$ 6,460,808
2,323,511
$ 2.78

-

27,413
$ 6,460,808
2,350,924
$ 2.75

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Since the Company is allowed to settle the bonuses or remuneration paid to employees in cash or shares, the Company presumed that the entire amount of the bonus or remuneration would be settled in shares and the resulting potential shares were included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. The dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

24. ACQUISITION OF SUBSIDIARIES - WITH OBTAINED CONTROL

			Proportion of
			Voting Equity
		Date of	Interests	Consideration
	Principal Activity	Acquisition	Acquired (%)	Transferred
LarView	Manufacture of optical	April 2014	83.33	$ 500,000
Technologies	instruments, general
Corp.	Instruments, computers
	and peripherals.

LarView Technologies Corp. was acquired not only to upgrade its capability in the automated processing of camera modules but also to expand the market for this product. For details about the acquisition of LarView Technologies Corp., please refer to Note 29 to the consolidated financial statements for the year ended December 31, 2015.

25. DISPOSAL OF SUBSIDIARIES - WITH LOSS OF CONTROL

On March 28, 2014, the Company lost its power to govern the financial and operating policies of Logah Technology Corp. because of the loss of power to cast the majority of votes at meetings of the Board of Directors. For details about the disposal of Logah Technology Corp., please refer to Note 30 to the consolidated financial statements for the year ended December 31, 2015.

26. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS

In January to June 2014, the Company acquired an additional 0.87% equity interest in Lite-On IT Corporation, and increased the equity interest from 99.13 % to 100%.

In April 2014, the Company acquired an additional 17.74% equity interest in Lite-On Automotive Corp., and increased the equity interest from 82.26 % to 100%.

The above transactions were accounted for as equity transactions, since the Company did not cease to have control over these subsidiaries.

q control over these subsidiaries.	y	,	py	py
Cash consideration paid The proportionate share of the carrying amount of the net assets of the subsidiary transferred from non-controlling interests Differences arising from equity transaction (reductions of unappropriated earnings)		For the Year	Ended December 31, 2014
		Lite-On Automotive Corporation $ 808,800 (297,970) $ 510,830	Lite-On IT Corporation $ 204,368 (171,716) $ 32,652	Total $ 1,013,168 (469,686) $ 543,482

27. ACQUISITION OF SUBSIDIARIES

a. Subsidiaries acquired

Subsidiaries acquired
			Ownership
			with
		Date of	Direct/Indirect	Consideration
	Principal Activity	Acquisition	Voting Rights		Transfer
Li Shin International	Manufacture of business	March 22, 2014	100%	$		-
Enterprise Corp.	machinery equipment and
	electronic components
Lite-On Clean Energy	Manufacture of business	April 15, 2014	100%			-
Technology Corp.	machinery equipment, power
	supplies, batteries and modules
Lite-On Automotive	Manufacture and sale of	June 1, 2014	100%			-
Corporation	automotive electronic
	components
Leotek Electronics	Development, manufacture and	June 29, 2014	100%		1,264,985
Corp.	sale of LED products,
	including display panel, light
	bulb, streetlight, emergency
	flasher, traffic light, warning
	light and etc.
Lite-On IT	Manufacture and sale of data	June 30, 2014	100%			-
Corporation	storage and processing
	equipment, electronic
	components and business
	machinery equipment
LarView	Manufacture of optical	September 1,	100%		85,075
Technologies Corp.	instruments, general	2014
	instruments, electronic
	components, computers and
	peripherals.
				$	1,350,060

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b. Assets acquired and liabilities assumed at the date of acquisition

Current assets Cash Trade and other receivables Inventories, net Other Non-current assets Available-for-sale financial asset - noncurrent Investments accounted for by the equity method Property, plant and equipment, net Intangible assets, net Deferred tax assets Prepayments for pension fund Current liabilities Short-term borrowings Trade and other payables Current tax liabilities Provisions Other Non-current liabilities Deferred tax liabilities Other Net identifiable assets	Li Shin International Enterprise Corp. $ 726,692 945,002 69,153 15,079 13 1,711,495 130,978 2,758 9,775 8,360 - (922,972 ) (25,877 ) - (219 ) (20,497 ) - $ 2,649,740	Lite-On Clean Energy Technology Corp. $ 5,939 26,886 33,776 2,846 - - 24,550 2,515 110 - (207,948 ) (57,522 ) - (3,893 ) (1,766 ) (110 ) - $ (174,617)	Lite-On Automotive Corp. $ 174,865 553,011 254,702 37,361 202,324 1,517,774 72,344 112,416 25,607 - (15,000 ) (811,729 ) (44,725 ) (121,119 ) (58,986 ) (159,779 ) - $ 1,739,066	Leotek Electronics Corp. $ 709,079 584,255 136,576 41,605 36,644 40,040 227,384 - 39,349 87 - (505,974 ) (35,717 ) (52,194 ) (38,952 ) (5,300 ) (45) $ 1,176,837	Lite-On IT Corporation $ 4,404,246 6,505,987 5,830,823 258,325 256,026 5,771,412 1,457,601 3,890,498 594,598 - - (7,087,200 ) (95,245 ) (395,096 ) (429,170 ) (1,093,688 ) - $ 19,869,117	LarView Technologies Corp. $ 63,272 507,553 309,495 52,524 - 3,204 289,251 - - - (298,925 ) (780,416 ) - - (3,540 ) - - $ 142,418	Total $ 6,084,093 9,122,694 6,634,525 407,740 495,007 9,043,925 2,202,108 4,008,187 669,439 8,447 (521,873 ) (10,165,813 ) (201,564 ) (572,302 ) (532,633 ) (1,279,374 ) (45)
							$ 25,402,561

c. Net cash inflow from consolidated subsidiaries

Net cash inflow from consolidated subsidiaries
	For the Year
	Ended
	December 31,
	2014
Obtaining cash	$ 6,084,093
Transfer consideration of cash payments	(1,350,060)
	$ 4,734,033

28. CAPITAL MANAGEMENT

The Company manages its capital to ensure that entities in the Company will be able to continue as going concerns while maximizing the return to shareholders through the optimization of the debt and equity balance.

The Company’s capital management system aims to ensure that the necessary financial resources and operating plan are enough to meet the next 12 months’ requirements for working capital, capital expenditures, research and development expenses, debt repayment, dividend expenses and other need.

29. FINANCIAL INSTRUMENTS

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

For certain financial instruments-including notes receivable, trade receivables including related parties, other receivables including related parties, debt investments with no active market, short-term borrowings, notes payable, trade payables including related parties, other receivables including related parties, and other payables including related parties - the Company’s management considers the carrying amounts of these financial instruments recognized in the financial statements as approximating their fair values. For long-term loans (including their current portion) with floating rates, the carrying amounts of long-term loans are used as basis to estimate their fair value.

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

Level 1 fair value measurements are those derived from quoted prices in active markets for identical assets or liabilities;
Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).
1) Fair value hierarchy

December 31, 2015

Financial assets at FVTPL Cross-currency swap contracts Available-for-sale financial assets Securities listed in ROC - equity securities Securities listed in other countries - equity securities Unlisted securities - ROC - equity securities Unlisted securities - other countries - equity securities December 31, 2014 Available-for-sale financial assets Securities listed in ROC - equity securities Securities listed in other countries - equity securities Unlisted securities - ROC - equity securities Unlisted securities - other countries - equity securities Derivative financial liabilities for hedging - noncurrent Cash flow hedges - interest rate swaps	Level 1 $ - $ 287,229 9,262 - - $ 296,491 Level 1 $ 591,405 8,929 - - $ 600,334 $ -	Level 2 $ 45,845 $ - - - - $ - Level 2 $ - - - - $ - $ 11,989	Level 3 $ - $ - - 4,620 20,163 $ 24,783 Level 3 $ - - 4,620 41,337 $ 45,957 $ -	Total $ 45,845
				$ 287,229 9,262 4,620 20,163
				$ 321,274
				Total $ 591,405 8,929 4,620 41,337
				$ 646,291
				$ 11,989

There were no transfers between Levels 1 and 2 in the current and prior periods.

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

December 31, 2015 Financial assets Balance at January 1, 2015 Total gains or losses In profit or loss Additions Balance at December 31, 2015 December 31, 2014 Financial assets Balance at January 1, 2014 Total gains or losses In profit or loss Additions Acquired from business combination Balance at December 31, 2014	Investments on Equity Instruments
	Unlisted Quotes $ 45,957 (54,801) 33,627 $ 24,783 $ 19,009 (90,348) 4,620 112,676 $ 45,957

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

q p measurement	pp pp g
Financial Instruments Financial assets at FVTPL - Cross-currency swap contracts	Valuation Techniques and Inputs
	Estimation of fair value of a currency swap contract is based on its principal and interest rate on mutual agreement and the suitable discount rate that reflects the credit risk of various counterparties at the end of the reporting period.

4) Valuation techniques and inputs applied for the purpose of measuring Level 3 fair value measurement

c. Categories of financial instruments

Categories of financial instruments
Financial assets Designated as at FVTPL Loans and receivables (1) Available-for-sale financial assets Financial liabilities Derivative instruments in designated hedge accounting relationships Measured at amortized cost Short-term borrowings Long-term loans (included current portion of long-term debts) Payables (2)	December 31
	2015 2014 $ 45,845 $ - 38,204,420 41,746,113 321,274 646,291 - 11,989 12,874,375 13,467,121 12,500,000 12,925,000 37,612,537 35,356,838

1) The balances included loans and receivables measured at amortized cost, which comprise cash, debt instruments with no active market, notes receivable, trade receivables, trade receivables - inter, other receivables and other receivables - inter.
2) The balances included financial liabilities measured at amortized cost, which comprise notes payable, trade payables, trade payables - inter, other payables and other payables - inter.
d. Financial risk management objectives and policies

The Company’s major financial instruments included equity investments, trade receivable, trade payables and borrowings. The Company’s Corporate Treasury function provides services to the business, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company sought to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives was governed by the Company’s policies approved by the board of directors, which provided written principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits was reviewed by the internal auditors on a continuous basis. The Company did not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

1) Market risk

The Company’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see a) below) and interest rates (see b) below). The Company entered into a variety of derivative financial instruments to manage its exposure to foreign currency risk and interest rate risk, including:

Forward foreign exchange contracts to hedge the exchange rate risk arising on the export;
Interest rate swaps to mitigate the risk of rising interest rates.

There had been no change to the Company’s exposure to market risks or the manner in which these risks were managed and measured.

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iii. The balances included demand deposits.

a) Foreign currency risk

The Company had foreign currency sales and purchases, which exposed the Company to foreign currency risk. The Company is an international electronics manufacturing entity with stable foreign currency income that covers foreign currency expense; exchange rate exposures were managed through foreign currency loans.

The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities and of the derivatives exposing to foreign currency risk at the end of the reporting period are set out in Note 33.

iv. The balances included financial liabilities exposed to cash flow risk from interest rate fluctuation.

The Company was also exposed to cash flow interest rate risk in relation to variable-rate bank borrowings and pay-fixed/receive-floating interest rate swaps. The Company’s cash flow interest rate risk was mainly concentrated in the fluctuation of the average rate for 90-day notes in Taiwan’s secondary market arising from the Company’s New Taiwan dollars denominated borrowings.

Sensitivity analysis

The Company was mainly exposed to the currency USD.

The following table details the Company’s sensitivity to a 5% increase and decrease in New Taiwan dollars (the functional currency) against the U.S. dollars. The sensitivity analysis included only outstanding foreign currency denominated monetary items. A positive number below indicates an increase in pre-tax profit and other equity associated with New Taiwan dollars strengthen 5% against the U.S. dollars. For a 5% weakening of New Taiwan dollars against the U.S. dollars, there would be an equal and opposite impact on pre-tax profit and other equity and the balances below would be negative.

.. , equity and the balances below would be negative.
Profit or loss	Currency USD Impact
	For the Year Ended December 31
		2015 $ (33,750)	2014 $ (25,245)

b) Interest rate risk

The Company was exposed to interest rate risk because entities in the Company borrowed funds at both fixed and floating interest rates. The risk is managed by the Company by maintaining an appropriate mix of fixed and floating rate borrowings, and using interest rate swap contracts. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite, ensuring the most cost-effective hedging strategies are applied.

The sensitivity analyses below were determined based on the Company’s exposure to interest rates for both derivatives and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year.

If interest rates had been 25 basis points higher and all other variables were held constant, the Company’s pre-tax profit years ended December 31, 2015 and 2014 would decrease by $25,276 thousand and $23,424 thousand.

c) Other price risk

The Company was exposed to equity price risk through its investments in listed equity securities. Equity investments are held for strategic rather than trading purposes. The Company does not actively trade these investments.

Sensitivity analysis

The sensitivity analyses below were determined based on the exposure to equity price risks at the end of the reporting period.

If equity prices had been 10% higher, the pre-tax other comprehensive income years ended December 31, 2015 and 2014 would increase by $29,649 thousand and $60,033 thousand as a result of the changes in fair value of available-for-sale shares.

2) Credit risk

The carrying amount of the Company’s financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:

Fair value interest rate risk Financial assets (i) Financial liabilities (ii) Cash flow interest rate risk Financial assets (iii) Financial liabilities (iv)	December 31
	2015 2014 $ 10,308 $ 1,789 11,074,375 10,481,921 4,189,574 6,540,514 14,300,000 15,910,200

i. The balances included debt instruments with no active market.

ii. The balances included financial liabilities exposed to fair value risk from interest rate fluctuation.

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company.

The Company is exposed to credit risk from trade receivables, deposits and other financial instruments. Credit risks on business-related exposures are managed separately from that on financial-related exposures.

a) Business related credit risk

To maintain the quality of receivables, the Company has established operating procedures to manage credit risk.

For individual customers, risk factors considered include the customer’s financial position, credit rating agency rating, the Company’s internal credit rating, and transaction history as well as current economic conditions that may affect the customer’s ability to pay. The Company also has the right to use some credit protection enhancement tools, such as requiring advance payments, to reduce the credit risks involving certain customers.

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b) Financial related credit risk

Bank deposits and other financial instruments are credit risk sources required by the Company’s department of finance department to be measured and monitored. However, since the Company’s counter-parties are all reputable financial institutions and government agencies, there is no significant financial credit risk.

30. TRANSACTIONS WITH RELATED PARTIES

Significant transactions with related parties are summarized below.

a. Sales of goods

3) Liquidity risk

The Company manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Company’s operations.

The table below summarizes the maturity profile of the Company’s non-derivative financial liabilities based on contractual undiscounted payments.

December 31, 2015

Weighted Average Effective Interest Rate (%) Non-derivative financial liabilities Non-interest bearing - Fixed interest rate liabilities 0.7-1.17 Variable interest rate liabilities 0.89-1.5907 December 31, 2014 Weighted Average Effective Interest Rate (%) Non-derivative financial liabilities Non-interest bearing - Fixed interest rate liabilities 0.83-1.16 Variable interest rate liabilities 0.82-1.703	On Demand or Less than 1 Year $ 37,612,537 11,074,375 4,700,000 $ 53,386,912 On Demand or Less than 1 Year $ 35,356,838 10,481,921 8,210,200 $ 54,048,959	1-3 Years $ 21,210 - 9,600,000 $ 9,621,210 1-3 Years $ 19,796 - 7,700,000 $ 7,719,796	3 Years to 5 Years $ - - - $ - 3 Years to 5 Years $ - - - $ -	5+ Years $ - - -
				$ -
				5+ Years $ - - -
				$ -

The table below summarizes the maturity profile of the Company’s derivative financial instruments based on contractual undiscounted payments.

December 31, 2015

On Demand or Less than 1 Year Currency swap contracts Inflows $ 3,235,000 Outflows (3,212,900) $ 22,100	1-3 Years $ - - $ -	3 Years to 5 Years $ - - $ -	5+ Years $ - - $ -

Related Parties Categories Subsidiaries Other related parties Purchases of goods Related Parties Categories Subsidiaries Other related parties	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
	2015 2014 $ 23,938,054 $ 24,745,344 462 479 $ 23,938,516 $ 24,745,823 For the Year Ended December 31
		2015 $ 97,618,457 19 $ 97,618,476	2014 $ 102,990,258 343 $ 102,990,601

b. Purchases of goods

The sales prices and payment terms to related parties were not significantly different from those of sales to third parties. For other related party transactions, price and terms were determined in accordance with mutual agreements.

c. Receivables from related parties

Related Parties Categories Trade receivables Subsidiaries Other related parties Other receivables Subsidiaries Associates Other related parties		December 31	December 31
		2015 $ 11,028,955 2 $ 11,028,957 $ 540,848 918 19 $ 541,785	2014 $ 10,832,845 - $ 10,832,845 $ 559,185 - 203 $ 559,388

The outstanding trade receivables from related parties are unsecured. For the years ended December 31, 2015 and 2014, no impairment loss was recognized for trade receivables from related parties.

December 31, 2014: None.

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d. Payables to related parties

Related Parties Categories Accounts payable Subsidiaries Other related parties Associates Other payable Subsidiaries Other related parties Associates		December 31	December 31
		2015 $ 18,782,250 75,918 - $ 18,858,168 $ 748,387 7,295 - $ 755,682	2014 $ 20,882,049 27,220 1,522 $ 20,910,791 $ 595,372 4,317 411 $ 600,100

The outstanding trade payables from related parties are unsecured.

h. Other revenues

Other revenues
Related Parties Categories Subsidiaries Associates Other related parties Compensation of management personnel Related Parties Categories Short-term employee benefits Post-employment benefits	For the Year Ended December 31
	2015 2014 $ 160,635 $ 120,342 3,748 4,053 648 617 $ 165,031 $ 125,012 For the Year Ended December 31
		2015 $ 511,862 22,062 $ 533,924	2014 $ 522,938 18,421 $ 541,359

i. Compensation of management personnel

The remuneration of directors and key executives was determined by the remuneration committee having regard to the performance of individuals and market trends.

e. Acquisition of property, plant and equipment

Related Parties Categories Subsidiaries	Purchase Price	Purchase Price	Purchase Price
	For the Year Ended December 31
		2015 $ 30,632	2014 $ 807

f. Disposal of property, plant and equipment

Related Parties Categories Subsidiaries		For the Year Ended	For the Year Ended	For the Year Ended	December 31
		2015	Gains $ 36		2014
		Proceeds $ 359,680			Proceeds $ 269	Gains $ -

g. Operating expense

2015 Related Parties Categories Proceeds Gains Subsidiaries $ 359,680 $ 36 Operating expense	2014 Proceeds Gains $ 269 $ -	2014 Proceeds Gains $ 269 $ -	2014 Proceeds Gains $ 269 $ -
Related Parties Categories Subsidiaries Other related parties	For the Year Ended December 31
		2015 $ 915,022 61,107 $ 976,129	2014 $ 266,300 57,008 $ 323,308

31. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

December 31 2015 2014 Pledge-time deposits $ 10,308 $ 1,789 Pledged assets - noncurrent included the refundable deposits that had been provided for a government projects.		December	31

32. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

a. CMP Consulting Service, Inc., KI, Inc., Aaron Wagner, The Stereo Shop, David Carney, Jr., Tina Corse, Cynthia R. Rall, Richard R. Rall, Aaron Deshaw and Don Cheung filed an antitrust group lawsuit against the Company and its subsidiaries - Philips & Lite-On Digital Solutions Corporation, Philips & Lite-On Digital Solutions USA, Inc. and other companies with related businesses - with a court in California, from October 2009 to September 2010. The Company has assigned lawyers in the United States as its representative in these lawsuits. In September 2015, the Company has reached a settlement with the direct plaintiff group. The lawsuit with indirect plaintiff group is still in progress. The Company already accrued a reasonable amount in case of a loss on this lawsuit and will continue to recognize the losses quarterly on the basis of a reasonable estimation of the lawsuit until the settlement of this lawsuit.
b. In the second quarter of 2013, the Attorney General of the State of Florida filed antitrust lawsuits against the Company and its subsidiaries - Philips & Lite-On Digital Solutions Corporation and Philips & Lite-On Digital Solutions USA, Inc. - as well as other companies with related businesses with the U.S. District Court for the Northern District of California (USDC-NDC). The Company assigned lawyers in the United States as its representative in these lawsuits. In the second quarter of 2014, the USDC-NDC allowed the plaintiff to proceed with the lawsuits but dismissed certain parts of these lawsuits. Although the outcome of the proceedings had not been determined, the Company already

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accrued a reasonable amount in case of a loss on this lawsuit and will continue to recognize the losses quarterly at this reasonably estimated amount until the settlement of this lawsuit.

c. In the second quarter of 2013, Dell Inc. and Dell Products L.P. filed a complaint with the United States District Court for Western District of Texas. In the fourth quarter of 2013, Acer Inc., Acer America Corporation, Gateway Inc. and Gateway U.S. Retail, Inc. filed a complaint with the United States District Court for the Northern District of California. In the fourth quarter of 2013, Ingram Micro Inc., and Synnex Corporation filed a complaint with the United States District Court for the Central District of California. In the third quarter of 2015, Alfred H. Siegel, the bankruptcy trustee of Circuit City Stores, Inc., filed a complaint with the United States District Court for the Northern District of California. In the fourth quarter of 2015, Peter Kravitz, the bankruptcy trustee of RadioShack Corporation, filed a complaint with the United States District Court for the Northern District of California. All these complaints constituted an antitrust group lawsuit against the Company and other companies with related businesses. The Company assigned lawyers as its representative in these lawsuits. Although the outcome of the proceedings had not been determined, the Company already accrued a reasonable amount in case of a loss on this lawsuit and will continue to recognize losses quarterly at this reasonably estimated amount until the settlement of this lawsuit.
d. From the second quarter of 2010 to the second quarter of 2014, petitioner Carlos Fogelman filed a motion for authorization to institute class action antitrust proceedings with the Superior Court of Quebec in the district of Montreal. The Fanshawe College of Applied Arts and Technology filed a statement of claim in Ontario court. Neil Godfrey filed a statement of claim with the Superior Court of British Columbia. Donald Woligroski filed a statement of claim in Manitoba court. Cindy Retallick filed a statement of claim in Saskatchewan court. All plaintiffs filed the antitrust group lawsuit against the Company and its subsidiaries - Philips & Lite-On Digital Solutions Corporation, Philips & Lite-On Digital Solutions USA, Inc. and other companies with related businesses. The Company assigned lawyers as its representative in these lawsuits. Although the outcome of the proceedings had not been determined, the Company accrued a reasonable amount in case of a loss on this lawsuit and will continue to recognize the losses quarterly on the basis of a reasonable estimation of the lawsuit until the settlement of this lawsuit.

33. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

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

December 31, 2015

Foreign Currencies Exchange Rate Financial assets Monetary items USD $ 1,049,145 32.775 (USD:NTD) EUR 2,162 35.8034 (EUR:NTD) HKD 7,184 4.2289 (HKD:NTD) CZK 5,805 1.3261 (CZK:NTD) JPY 5,513 0.2723 (JPY:NTD)	Carrying Amount $ 34,385,727 77,406 30,382 7,698 1,501 $ 34,502,714 (Continued)

Foreign
Currencies
Exchange Rate
Non-monetary items

Investments accounted for using equity
method

USD
$ 1,866,396
32.775 (USD:NTD)
HKD

2,658,071
4.2289 (HKD:NTD)
EUR

10,398 35.8034 (EUR:NTD)
JPY

1,315,588
0.2723 (JPY:NTD)

Financial liabilities

Monetary items

USD

1,069,740
32.775 (USD:NTD)
CZK

13,733
1.3261 (CZK:NTD)
JPY

64,068
0.2723 (JPY:NTD)
EUR

484 35.8034 (EUR:NTD)
HKD

3,764
4.2289 (HKD:NTD)

Non-monetary items

Investments accounted for using equity
method

HKD

67,556
4.2289 (HKD:NTD)
USD

2,070
32.775 (USD:NTD)

Carrying
Amount
$ 61,171,129

11,240,716

372,284

358,235
$ 73,142,364
$ 35,060,726

18,211

17,446

17,338

15,917
$ 35,129,638
$ 285,688

67,844
$ 353,532
(Concluded)

December 31, 2014 Foreign Currencies Exchange Rate Financial assets Monetary items USD $ 962,334 31.6 (USD:NTD) EUR 4,580 38.4003 (EUR:NTD) CZK 14,214 1.3862 (CZK:NTD) HKD 2,787 4.0748 (HKD:NTD) JPY 30,231 0.2641 (JPY:NTD)	Carrying Amount $ 30,409,765 175,873 19,703 11,357 7,984 $ 30,624,682 (Continued)

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Foreign Currencies Exchange Rate Non-monetary items Investments accounted for using equity method USD $ 1,794,963 31.6 (USD:NTD) HKD 2,551,466 4.0748 (HKD:NTD) THB 1,305,246 0.9593 (THB:NTD) EUR 7,113 38.4003 (EUR:NTD) JPY 1,279,443 0.2641 (JPY:NTD)	Carrying Amount $ 56,720,841 10,396,714 1,252,122 273,141 337,901 $ 68,980,719

6) Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital: None.
7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: Please see Table 4 attached.
8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Please see Table 5 attached.
9) Trading in derivative instruments: Note 7, Note 11 and Note 29 to the financial statements.
10) Information on investees: Please see Table 6 attached.
b. Information on investments in mainland China:

Financial liabilities

Monetary items USD 978,312 31.6 (USD:NTD) EUR 2,318 38.4003 (EUR:NTD) HKD 3,792 4.0748 (HKD:NTD) CZK 10,562 1.3862 (CZK:NTD) JPY 29,990 0.2641 (JPY:NTD)	$ 30,914,646 89,012 15,452 14,641 7,920 $ 31,041,671

1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area. Please see Table 7 attached.
2) Significant direct or indirect transactions with the investee, prices, payment terms and unrealized gain or loss: Note 30 to the financial statements.

Non-monetary items Investments accounted for using equity method HKD 127,170 4.0748 (HKD:NTD) USD 2,070 31.6 (USD:NTD)	$ 518,191 65,643 $ 583,834 (Concluded)

For the years ended December 31, 2015 and 2014 net foreign exchange gains (loss) were $(27,501) thousand and $8,435 thousand. It is impractical to disclose net foreign exchange gains or losses by each significant foreign currency due to the variety of the foreign currency transactions of the group entities.

34. SEPARATELY DISCLOSED ITEMS

a. Information on significant transactions and information on investees:
1) Financing provided to others: None.
2) Endorsements/guarantees provided: Please see Table 1 attached.
3) Marketable securities held (excluding investment in subsidiaries, associates and joint ventures): Please see Table 2 attached.
4) Marketable securities acquired and disposed at costs or prices at least NT$300 million or 20% of the paid-in capital: Please see Table 3 attached.
5) Acquisition of individual real estate at costs of at least NT $300 million or 20% of the paid-in capital: None.

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TABLE 1

LITE-ON TECHNOLOGY CORPORATION

ENDORSEMENT/GUARANTEE PROVIDED FOR THE YEAR ENDED DECEMBER 31, 2015 (Amounts in Thousands of New Taiwan Dollars)

No.	Endorsement/ Guarantee Provider	Guaranteed Party		Limits on Endorsement/ Guarantee Amount Provided to Each Guaranteed Party (Note 2)	Maximum Balance for the Period	Ending Balance	Amount Actually Drawn	Amount of Endorsement/ Guarantee Collateralized by Properties	Ratio of Accumulated Endorsement/ Guarantee to Net Equity Per Latest Financial Statements (%)	Maximum Endorsement/ Guarantee Amount Allowable (Note 2)	Guarantee Provided by Parent Company	Guarantee Provided by A Subsidiary	Guarantee Provided to Subsidiaries In Mainland China	Note
		Name	Nature of Relationship (Note 1)
0	Lite-On Technology Corporation	Lite-On Technology (Europe) B.V. Lite-On Mobile Pte. Ltd. (Note 3) Silitek Elec. (Dongguan) Co., Ltd. Guangzhou Lite-On Mobile Electronic Components Co., Ltd.	b b c c	$ 7,598,851 7,598,851 7,598,851 7,598,851	$ 140,006 10,064,000 2,490,900 1,320,900	$ 68,026 7,866,000 2,490,900 852,150	$ 68,026 6,555,000 1,311,000 524,400	$ - - - -	0.09 10.35 3.28 1.12	$ 30,395,404 30,395,404 30,395,404 30,395,404	Yes Yes Yes Yes	No No No No	No No Yes Yes

Note 1: Relationship between the Company and endorsee/guarantee are as follows:

a. Business relationship.
b. A subsidiary in which the Company holds directly over 50% of equity interest.
c. An investee in which the Company and its subsidiaries hold over 50% of equity interest.
Note 2: a. The aggregate amount of guarantees/endorsements by Lite-On Technology Corporation should not exceed 40% of its net worth, and the amount of guarantees/endorsements for any single entity should not exceed 10% of its net worth.

b. Limits on endorsement/guarantee amount provided to each guaranteed party and maximum endorsement/guarantee amount allowable were calculated on the basis of the net worth of the endorsement/guarantee provider, as shown in its most recent audited financial statements.

Note 3: The guarantee provided by the Company to Lite-On Mobile Pte. Ltd. is for the repayment of the latter’s syndicated loan obtained in December 2013.

258

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TABLE 2

LITE-ON TECHNOLOGY CORPORATION

MARKETABLE SECURITIES HELD DECEMBER 31, 2015 (In Thousands of New Taiwan Dollars)

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account		December 31, 2015	December 31, 2015		Note
				Units (In Thousands)	Carrying Value	Percentage of Ownership (%)	Fair Value
Lite-On Technology Corporation	Common stock EPISTAR Corporation Wistron Corporation CO-TECH Development Corp. Com2B Corp. Avamax Corp. Aetas Technology, Inc. AuriaSolar Co., Ltd. Z-Com, Inc. Fong Han Electronics Co., Ltd. Xepex Electronics Co., Ltd. AOPEN, Inc. Oplink Communications, Inc. North America Micro-Electronic & Software, Incorporated Action Media Technologies, Inc. Taiwan Changxing Technology Co., Ltd. Preferred stock Arkologic Holdings Limited PI-CORAL Convertible bond Xepex Electronics Co., Ltd.	Member of the board of directors - Chairman of the board is the same person - - Member of the board of directors - - - - - - - - - - - -	Available-for-sale financial assets - non-current 〃〃〃〃〃〃〃〃〃〃〃〃〃〃〃〃 Debt investments with no active market - non-current	5,908 4,981 1,530 5,000 559 4,026 41,400 3,245 1,167 - 100 12 5 38 462 11,111 1,139 150	$ 150,653 92,648 14,535 19,009 - - - 28,490 - - 903 9,262 1,154 - 4,620 - - -	0.54 0.19 0.73 11.11 6.99 8.07 19.71 4.10 6.67 - 0.08 0.07 2.67 - 15.40 7.66 10.65 -	$ 150,653 92,648 14,535 19,009 - - - 28,490 - - 903 9,262 1,154 - 4,620 - - -	Note Note Note Note Note Note Note Note Note

Note: The carrying value of financial instruments were all assessed for impairment.

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TABLE 3

LITE-ON TECHNOLOGY CORPORATION

MARKETABLE SECURITIES ACQUIRED AND DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2015

(Amounts in Thousands of New Taiwan Dollars)

Company Name	Marketable Securities Type and Name	Financial Statement Account	Counterparty	Nature of Relationship	Beginning Balance	Beginning Balance	Acquisition	Acquisition		Disposal	Disposal		Ending	Balance
					Shares/Units (In Thousands)	Amount	Shares/Units (In Thousands)	Amount	Shares/Units (In Thousands)	Amount	Carrying Amount	Gain (Loss) on Disposal	Shares/Units (In Thousands)	Amount
Lite-On Technology Corporation	Lite-On International Holding Co., Ltd.	Investment accounted for using equity method	-	Subsidiary	285,825	$ 23,434,167	50,000	$ 2,239,074 (Note)	-	$ -	$ 566,837 (Note)	$ -	$ 335,825	$ 25,106,404

Note: The acquisition amount of $1,555,000 thousand was the capital injected in the investee during the period; the $684,074 thousand is from the gain accounted for using equity method; the $248,776 thousand is from the other comprehensive loss for using equity method and the $318,061 thousand in the disposal is from the changes in equities for using equity method.

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TABLE 4

LITE-ON TECHNOLOGY CORPORATION

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES OF AT AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2015

(Amounts in Thousands of New Taiwan Dollars)

Company Name	Related Party	Nature of Relationship		Transaction Details	Transaction Details		Abnormal Transaction	Abnormal Transaction	Notes/Accounts (Payable) or Receivable	Notes/Accounts (Payable) or Receivable	Note
			Purchase/ Sale	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
Lite-On Technology Corporation	Lite-On Trading USA, Inc. Lite-On Japan Ltd. Philip & Lite-On Digital Solutions Corp. Lite-On Singapore Pte. Ltd. China Bridge Express (Wuxi) Co., Ltd. Lite-On Technology (Changzhou) Co., Ltd. Lite-On Sales & Distribution Inc. Lite-On China Holding Co., Ltd. Lite-On Technology (Changzhou) Co., Ltd. LET (HK) Ltd. Lite-On Singapore Pte. Ltd. Li Shin International Enterprise Corp. Lite-On Overseas Trading Co., Ltd. Lite-On Automotive Electronics (Guangzhou) Co., Ltd.	Note 2 Note 1 Note 1 Note 1 Note 2 Note 2 Note 2 Note 2 Note 2 Note 1 Note 1 Note 1 Note 1 Note 2	Sale Sale Sale Sale Sale Sale Sale Sale Purchase Purchase Purchase Purchase Purchase Purchase	$ (3,295,462) (861,796) (12,810,242) (4,697,862) (826,743) (1,163,932) (128,049) (141,230) 1,519,674 10,040,910 24,766,587 3,531,460 57,023,431 735,033	(3) (1) (10) (4) (1) (1) - - 1 9 22 3 51 1	About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days About 90 days	Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing Cost-plus pricing	No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference	$ 1,082,305 164,723 4,214,601 899,640 304,660 479,631 129,288 142,250 (521,929) (853,098) (8,193,189) (829,029) (8,115,555) (264,241)	3 1 13 3 1 1 - - (2) (3) (30) (3) (30) (1)

Note 1: Equity-method investee.

Note 2: Investee of the equity-method investee.

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TABLE 5

LITE-ON TECHNOLOGY CORPORATION

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL DECEMBER 31, 2015

(Amounts in Thousands of New Taiwan Dollars)

Company Name	Related Party	Nature of Relationship	Ending Balance of Notes Receivable-inter	Ending Balance of Trade Receivables-inter	Ending Balance of Other Receivables-inter	Turnover Rate	Overdue	Overdue	Amounts Received in Subsequent Period	Allowance for Bad Debts
							Amount	Action Taken
Lite-On Technology Corporation	Philip & Lite-On Digital Solutions Corp. Lite-On Technology (Changzhou) Co., Ltd. China Bridge Express (Wuxi) Co., Ltd. Titanic Capital Services Ltd. Lite-On Singapore Pte. Ltd. Lite-On Japan Ltd. Lite-On Trading USA, Inc. Lite-On Sales & Distribution Inc. Philips & Lite-On Digital Solutions USA Inc. Lite-On Overseas Trading Co., Ltd. Lite-On China Holding Co., Ltd.	Note 1 Note 2 Note 2 Note 2 Note 1 Note 1 Note 2 Note 2 Note 2 Note 1 Note 2	$ - - - - - - - - - - -	$ 4,214,601 479,631 304,660 - 899,640 164,723 1,082,305 129,288 - 3,575,995 142,250	$ 229,265 - - 132,038 166,969 7,847 - 3,707 100,098 2,077 -	3.68 2.51 2.19 - 4.34 2.79 3.34 1.98 2.15 0.01 0.94	$ - - - - 34 549 - - - - -	- - - - - - - - - - -	$ 1,887,965 953 136,707 - 127,044 12,238 486,743 - - 1,458,232 142,250	$ - - - - - - - - - - -

Note 1: Equity-method investee.

Note 2: Investee of the equity-method investee.

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TABLE 6

LITE-ON TECHNOLOGY CORPORATION

NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES OVER WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE FOR THE YEAR ENDED DECEMBER 31, 2015

(Amounts in Thousands of New Taiwan Dollars or Thousands of Foreign Currencies)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	Balance as	of December 31, 2015	of December 31, 2015	Net Income (Loss) of the Investee	Share of Profits/Loss of Investee	Note
				December 31, 2015	December 31, 2014	Shares (In Thousands)	Percentage of Ownership (%)	Carrying Value
Lite-On Technology Corporation	Silitech Technology Corp. Lite-On Integrated Service Inc. Dragonjet Corporation Logah Technology Corp. Lite-On Capital Corp. Lite-On Electronics H.K. Ltd. Lite-On Electronics (Thailand) Co., Ltd. Lite-On Japan Ltd. Lite-On International Holding Co., Ltd. LTC Group Ltd. Lite-On Technology USA, Inc. Lite-On Electronics (Europe) Ltd. Lite-On Technology (Europe) B.V. Lite-On Overseas Trading Co., Ltd. Lite-On Singapore Pte. Ltd. Lite-On Vietnam Co., Ltd. Lite-On Mobile Pte. Ltd. Li Shin International Enterprise Corp. Eagle Rock Investment Ltd. Lite-On Semiconductor Corp. Canfield Ltd. High Yield Group Co., Ltd. Lite-On Information Technology B.V. Philip & Lite-On Digital Solutions Corp. Lite-On IT Singapore Pte. Ltd. Lite-Space Technology Company Limited LET (HK) Ltd. Leotek Electronics Holding Limited Lite-On Automotive Electronics (Europe) B.V. Lite-On Automotive North America Inc. Lite-On Automotive Service USA Inc. Lite-On Automotive International (Cayman) Co., Ltd. Lar View Technologies Corp. (Samoa) Lite-On Automotive Electronics Mexico, S.A. DE C.V.	New Taipei City, Taiwan Taipei City, Taiwan New Taipei City, Taiwan Kaohsiung City, Taiwan Taipei City, Taiwan Hong Kong Thailand Japan British Virgin Islands British Virgin Islands USA United Kingdom Netherlands British Virgin Islands Singapore Vietnam Singapore British Virgin Islands British Virgin Islands New Taipei City, Taiwan Apia, Samoa British Virgin Islands Netherlands Taipei City, Taiwan Singapore Hong Kong Hong Kong Hong Kong Netherlands USA USA Cayman Samoa Mexico	Manufacture and sale of modules and plastic products Information outsourcing and system integrate Manufacture and sale of computer peripherals, printers, digital cameras, modules and plastic products Development, manufacture and sale of LCD TV inverters Investment activities Sale of LED optical products Manufacture and sale of LED optical products Sale of LED optical products and power supplies Investment activities Investment activities Investment activities Manufacture and sale of power supplies Market research and after-sales service Merchandising business Manufacture and supply computer peripheral products Electronic contract manufacturing Manufacture and sale of mobile phone modules and design for assembly line Manufacture and sale of computer and appliance components Import and export business and investment activities Manufacture of image sensor and rectifier Import and export business and investment activities Holding company Market research and customer service Sale of optical disc drives Sale of optical disc drives Sale of computer components Sale of optical disc drives Holding company Sale of automotive parts and other electronic products Sale of automotive parts and other electronic products Sale of automotive parts and other electronic products Investment activities Investment activities Production, manufacture, sale, import and export of photovoltaic device, key electronic components, telecommunications equipment, information technology equipment, semiconductor applications, general lighting, automotive electronics, renewable energy products and services and maintenance of automotive system	$ 324,685 25,886 1,069,080 402,787 4,096,367 7,339,481 529,106 248,305 US$ 335,825 $ 1,380,308 US$ 55,172 $ 44,559 2,543,184 168,947 US$ 63,788 US$ 3,000 EUR 250,329 $ 56,929 341 773,618 7,142 2,271,806 1,597,319 267,113 - 149,968 42 US$ 1,010 EUR 1,090 US$ - US$ 60 US$ 100,626 US$ - US$ 4,950	$ 324,685 25,886 1,069,080 402,787 4,096,367 7,339,481 529,106 253,111 US$ 285,825 $ 1,380,308 US$ 50,407 $ 44,559 2,543,184 168,947 US$ 63,788 US$ 3,000 EUR 250,329 $ 56,929 341 773,618 7,142 2,271,806 1,597,319 267,113 2,872 149,968 42 US$ 1,010 EUR 1,090 US$ 600 US$ 60 US$ 100,626 US$ 200 US$ -	60,757 3,400 26,727 31,683 209,545 17,865 5,030 6,162 335,825 41,916 436 300 331 5,143 51,777 - 178,178 1,748 10 57,204 200 68,138 11,018 17,150 - 5,100 10 25,000 24 - 1 11,967 - -	33.87 100.00 29.62 28.10 100.00 100.00 100.00 49.49 100.00 100.00 100.00 100.00 54.00 100.00 100.00 100.00 100.00 100.00 100.00 18.52 33.33 100.00 100.00 49.00 - 39.23 100.00 100.00 100.00 - 100.00 100.00 - 99.00	$ 1,487,387 46,323 1,047,765 245,119 1,598,494 11,231,033 1,304,188 358,234 25,106,404 592,312 2,359,141 53,011 311,079 242,239 15,338,196 70,420 8,790,237 (67,845) 1,410,738 1,544,501 4,713 5,305,483 18,056 337,073 - 41,036 (285,689) 9,668 43,143 - 12,908 1,897,276 - (59,097)	$ 145,977 6,156 27,222 (211,123) 119,625 HK$ 263,289 THB 127,107 JPY 136,647 US$ 19,424 US$ 7,000 US$ 3,972 GBP 118 EUR 3,796 US$ (1,509) US$ 108,286 US$ (246) US$ (36,450) US$ 7 US$ (11,442) $ 476,872 US$ 5 US$ 16,622 EUR (15) $ 51,483 - US$ 3,483 HK$ 3,769 HK$ (2,471) EUR (2) US$ (6) US$ (16) US$ 8,222 US$ (1) MXN (22,049)	$ 48,123 6,156 7,190 (58,772) 90,142 1,083,435 117,040 17,732 684,074 204,426 47,345 5,670 71,041 (51,924) 3,652,054 (7,975) (1,118,948) 232 (373,069) 90,538 26 113,434 (812) 25,227 - 42,924 131,347 (9,913) (86) (195) (533) 274,316 (46) (42,481)	Subsidiary Subsidiary Associate Associate Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary (Note 4) Subsidiary Associate Associate Subsidiary Subsidiary Subsidiary Subsidiary (Note 1) Associate Subsidiary (Note 4) Subsidiary Subsidiary Subsidiary (Note 2) Subsidiary Subsidiary Subsidiary (Note 3) Subsidiary (Note 4)

(Continued)

268

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Lite-On Technology Corporation 2015 Annual Report‧

Note 1: Lite-On IT Singapore Pte. Ltd. was dissolved after merging with Lite-On Singapore Pte. in January 2015.

Note 2: Lite-On Automotive North America Inc. was dissolved after liquidation in May 2015.

Note 3: Lar View Technologies Corp. (Samoa) was dissolved after liquidation in November 2015.
Note 4: Credit balance of Long-Term Equity Investment under the equity method has been transferred to the credit balance of Other Liabilities – Investment Using the Equity Method for Li Shin International Enterprise Corp., LET (HK) Ltd. and Lite-On Automotive Electronics Mexico, S.A. DE C.V.

Note 5: Please refer to Table 7 for information on investment in Mainland China.

(Concluded)

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TABLE 7

LITE-ON TECHNOLOGY CORPORATION

INFORMATION ON INVESTMENT IN MAINLAND CHINA FOR THE YEAR ENDED DECEMBER 31, 2015

(Amounts in Thousands of New Taiwan Dollars or Thousands of Foreign Currencies)

Investor Company	Investee Company	Main Businesses and Products	Total Amount of Paid-in Capital (Note 2)	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2015	Investment of Flows	Investment of Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2015	Net Income (Loss) of the Investee Company (Note 2)	Percentage of Ownership	Share of Profits/Loss (Note 2)	Carrying Amount as of December 31, 2015 (Note 2)	Accumulated Inward Remittance of Earnings as of December 31, 2015	Note
						Outflow	Inflow
Lite-On Technology Corporation	Lite-On Computer Tech (Dongguan) Co., Ltd. DongGuan G-Pro Computer Co., Ltd. Lite-On Electronics (Tianjinn) Co., Ltd. Lite-On Electronics (Dongguan) Co., Ltd. Silitek Elec. (Dongguan) Co., Ltd. Lite-On Electronics (Guangzhou) Co., Ltd. China Bridge (China) Co., Ltd. Lite-On Network Communication (Dongguan) Limited Lite-On Communications (Guangzhou) Co., Ltd. Dong Guan G-Tech Computers Co., Ltd. Lite-On Tech (Guangzhou) Co., Ltd. COMMIT Incorporated Lite-On Elec and Wire (Guangzhou) Co., Ltd. Lite-On (Guangzhou) Infortech Co., Ltd. Lite-On (Guangzhou) Precision Tooling Co., Ltd. Lite-On Digital Electronics (Dongguan) Co., Ltd. Lite-On Power Technology (Chang Zhou) Co., Ltd. Lite-On Li Shin Technology (Ganzhou) Co., Ltd. Lite-On Technology (Xianging) Co., Ltd. Lite-On Technology (Jiangsu) Co., Ltd. Lite-On Technology (Guangzhou) Investment Co., Ltd. Lite-On Technology (Ying Tan) Co., Ltd. Lite-On Power Technology (Dongguan) Co., Ltd.	Manufacture and sale of display device Manufacture and sale of system products ODM services Manufacture of electronic components Manufacture and sale of keyboards Manufacture and sale of printers and scanners Investment, sales agent Manufacture and sale of IT products Manufacture and sale of mobile terminal equipment Manufacture and sale of computer case Manufacture and sale of computer case Manufacture and sale of application software and multimedia product design Manufacture and sale of mobile terminal equipment Information outsourcing Manufacture and sale of modules Manufacture and sale of computer peripheral products Manufacture and sale of electronic components and peripheral materials Manufacture and sale of electronic components Manufacture and sale of electronic components Development, manufacture, sale and installation of power supplies and transformers and provision of technology consulting services, maintenance equipment and precision instruments Investment activities Manufacture and sale of new-type electronic components Development, manufacture and sale of electronic components, power supplies and provision technology consulting services	$ 537,510 (US$ 16,400 ) 747,303 (US$ 22,801 ) 2,179,538 (US$ 66,500 ) 1,160,235 (US$ 35,400 ) 157,320 (US$ 4,800 ) 1,199,565 (US$ 36,600 ) 974,892 (US$ 29,745 ) 464,422 (US$ 14,170 ) 804,954 (US$ 24,560 ) 376,913 (US$ 11,500 ) 1,088,130 (US$ 33,200 ) 1,051,619 (US$ 32,086 ) 518,173 (US$ 15,810 ) 41,624 (US$ 1,270 ) 596,505 (US$ 18,200 ) 98,325 (US$ 3,000 ) 551,276 (US$ 16,820 ) 393,300 (US$ 12,000 ) 213,038 (US$ 6,500 ) 4,949,025 (US$ 151,000 ) 983,250 (US$ 30,000 ) 360,525 (US$ 11,000 ) 523,482 (US$ 15,972 )	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	$ 933,071 (US$ 28,469 ) 747,303 (US$ 22,801 ) 2,179,472 (US$ 66,498 ) 1,160,235 (US$ 35,400 ) 157,320 (US$ 4,800 ) 1,199,565 (US$ 36,600 ) 974,892 (US$ 29,745 ) 464,422 (US$ 14,170 ) 804,954 (US$ 24,560 ) 376,913 (US$ 11,500 ) 1,088,130 (US$ 33,200 ) 19,665 (US$ 600 ) 518,173 (US$ 15,810 ) 76,825 (US$ 2,344 ) 399,855 (US$ 12,200 ) 98,325 (US$ 3,000 ) 589,426 (US$ 17,984 ) 437,087 (US$ 13,336 ) 213,038 (US$ 6,500 ) 4,785,150 (US$ 146,000 ) 983,250 (US$ 30,000 ) 360,525 (US$ 11,000 ) 523,482 (US$ 15,972 )	$ - - - - - - - - - - - - - - - - - - - 163,875 (US$ 5,000 ) 1,638,750 (US$ 50,000 ) - -	$ - - - - - - - - - - - - - - - - - - - - - - -	$ 933,071 (US$ 28,469 ) 747,303 (US$ 22,801 ) 2,179,472 (US$ 66,498 ) 1,160,235 (US$ 35,400 ) 157,320 (US$ 4,800 ) 1,199,565 (US$ 36,600 ) 974,892 (US$ 29,745 ) 464,422 (US$ 14,170 ) 804,954 (US$ 24,560 ) 376,913 (US$ 11,500 ) 1,088,130 (US$ 33,200 ) 19,665 (US$ 600 ) 518,173 (US$ 15,810 ) 76,825 (US$ 2,344 ) 399,855 (US$ 12,200 ) 98,325 (US$ 3,000 ) 589,426 (US$ 17,984 ) 437,087 (US$ 13,336 ) 213,038 (US$ 6,500 ) 4,949,025 (US$ 151,000 ) 2,622,000 (US$ 80,000 ) 360,525 (US$ 11,000 ) 523,482 (US$ 15,972 )	$ (14,656 ) (CNY -2,898 ) 200,336 (CNY 39,614 ) 213,459 (CNY 42,209 ) 80,212 (CNY 15,861 ) 186,080 (CNY 36,795 ) 629,353 (CNY 124,447 ) (80,617 ) (CNY -15,941 ) 240,333 (CNY 47,523 ) - 86,402 (CNY 17,085 ) - - - 7,131 (CNY 1,410 ) - 4,516 (CNY 893 ) 24,391 (CNY 4,823 ) 15,455 (CNY 3,056 ) (41,201 ) (CNY -8,147 ) 317,754 (CNY 62,832 ) (92,122 ) (CNY -18,216 ) 22,231 (CNY 4,396 ) (165,552 ) (CNY -32,736 )	100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 1.87 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00	$ (14,656 ) (CNY -2,898 ) 200,336 (CNY 39,614 ) 213,459 (CNY 42,209 ) 80,212 (CNY 15,861 ) 186,080 (CNY 36,795 ) 629,353 (CNY 124,447 ) (80,617 ) (CNY -15,941 ) 240,333 (CNY 47,523 ) - 86,402 (CNY 17,085 ) - - - 7,131 (CNY 1,410 ) - 4,516 (CNY 893 ) 24,391 (CNY 4,823 ) 15,455 (CNY 3,056 ) (41,201 ) (CNY -8,147 ) 317,754 (CNY 62,832 ) (92,122 ) (CNY -18,216 ) 22,231 (CNY 4,396 ) (165,552 ) (CNY -32,736 )	$ 495,741 (HK$ 117,227 ) 892,903 (HK$ 211,143 ) 2,981,831 (HK$ 705,108 ) 1,236,129 (HK$ 292,305 ) 1,482,132 (HK$ 350,477 ) 14,396,711 (HK$ 3,404,363 ) 1,375,725 (HK$ 325,315 ) 1,208,209 (HK$ 285,703 ) - 744,379 (HK$ 176,022 ) - - - 178,967 (HK$ 42,320 ) - 95,704 (HK$ 22,631 ) - 367,445 (HK$ 86,889 ) 140,998 (US$ 4,302 ) 8,020,151 (HK$ 1,896,510 ) 2,561,931 (HK$ 605,815 ) 444,265 (US$ 13,555 ) 836,163 (HK$ 197,726 )	$ - - - - - - - - - - - - - - - - - - - - - - -	Note 3 Note 3 Note 3 Note 3 Note 3

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Investor Company	Investee Company	Main Businesses and Products	Total Amount of Paid-in Capital (Note 2)	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2015	Investment of Flows	Investment of Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2015	Net Income (Loss) of the Investee Company (Note 2)	Percentage of Ownership	Share of Profits/Loss (Note 2)	Carrying Amount as of December 31, 2015	Accumulated Inward Remittance of Earnings as of December 31, 2015	Note
						Outflow	Inflow
Lite-On Technology Corporation	Beijing Lite-On Mobile Electronic and Telecommunication Components Co., Ltd. Guangzhou Lite-On Mobile Engineering Plastics Co., Ltd. Guangzhou Lite-On Mobile Electronic Components Co., Ltd. Shenzhen Lite-On Mobile Precision Molds Co., Ltd. Zhuhai Lite-On Mobile Technology Company Ltd. Lite-On Young Fast (Huizhou) Co., Ltd. Lite-on Green Technologies (Nanjing) Corporation Changzhou Binhu Thin Film Solar Greenhouse Co., Ltd. Epricrystal (Changzhou) Co., Ltd. Dongguan Lite-On Computer Co., Ltd. Huizhou Li Shin Electronic Co., Ltd. Huizhou Fu Tai Electronic Co., Ltd. Li Shin Technology (Huizhou) Ltd. Lite-On Opto Technology (Guangzhou) Co., Ltd. Lite-On Auto Electric Technology (Guangzhou) Ltd. Lite-On IT Opto Tech (BH) Co., Ltd. Lite-On Automotive (Wuxi) Co., Ltd. Lite-On Automotive Electronics (Guangzhou) Co., Ltd. Changzhou Leotek New Energy Trade Limited LarView Technologies Corp. (Shenzhen) Lite-On Technology (Shanghai) Ltd.	Manufacture and sale of mobile phone modules and design for assembly line Manufacture and sale of mobile phone modules and design for assembly line Manufacture and sale of mobile phone modules and design for assembly line Manufacture and sale of mobile phone modules and design for assembly line Manufacture and sale of mobile phone modules and design for assembly line Modules of touch panels Solar energy engineering Manufacture and sale of solar energy equipment Manufacture, design and sale of light-emitting diode products Manufacture and sale of computer hosts and components Manufacture of computer peripheral products Manufacture of computer peripheral products Manufacture and sale of electronic components and peripheral materials Manufacture and sale of optical disc drives Manufacture and sale of optical disc drives Manufacture and sale of optical disc drives Manufacture, sale and processing of electronic products Manufacture, sale and processing of electronic products Wholesale, import and export and installation of street lights, signal lights, scenery lights and new-type electronic components Camera lens modules Manufacture and sale of energy saving equipment	$ 524,400 (US$ 16,000 ) 641,407 (US$ 19,570 ) 1,314,278 (US$ 40,100 ) 270,650 (HK$ 64,000 ) 609,681 (US$ 18,602 ) 327,750 (US$ 10,000 ) 24,581 (US$ 750 ) 303,377 (CNY 59,950 ) 4,588,500 (US$ 140,000 ) 65,550 (US$ 2,000 ) 206,728 (US$ 6,308 ) 31,748 (US$ 969 ) 196,650 (US$ 6,000 ) 1,409,325 (US$ 43,000 ) 65,550 (US$ 2,000 ) 1,802,625 (US$ 55,000 ) 163,875 (US$ 5,000 ) 203,205 (US$ 6,200 ) 32,775 (US$ 1,000 ) 6,555 (US$ 200 ) 2,130,375 (US$ 65,000 )	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	$ 1,716,230 (US$ 52,364 ) 2,970,300 (US$ 90,627 ) 3,780,662 (US$ 115,352 ) 427,746 (US$ 13,051 ) 508,963 (US$ 15,529 ) 213,038 (US$ 6,500 ) 24,581 (US$ 750 ) 98,227 (US$ 2,997 ) 884,925 (US$ 27,000 ) 65,550 (US$ 2,000 ) 133,361 (US$ 4,069 ) 2,130 (US$ 65 ) - 1,409,325 (US$ 43,000 ) 65,550 (US$ 2,000 ) 1,802,625 (US$ 55,000 ) 163,875 (US$ 5,000 ) 192,389 (US$ 5,870 ) 32,775 (US$ 1,000 ) 6,555 (US$ 200 ) -	$ - - - - - - - - - - - - - - - - - - - - 2,130,375 (US$ 65,000 )	$ - - - - - - - - - - - - - - - - - - - 3,147 (US$ 96 ) -	$ 1,716,230 (US$ 52,364 ) 2,970,300 (US$ 90,627 ) 3,780,662 (US$ 115,352 ) 427,746 (US$ 13,051 ) 508,963 (US$ 15,529 ) 213,038 (US$ 6,500 ) 24,581 (US$ 750 ) 98,227 (US$ 2,997 ) 884,925 (US$ 27,000 ) 65,550 (US$ 2,000 ) 133,361 (US$ 4,069 ) 2,130 (US$ 65 ) - 1,409,325 (US$ 43,000 ) 65,550 (US$ 2,000 ) 1,802,625 (US$ 55,000 ) 163,875 (US$ 5,000 ) 192,389 (US$ 5,870 ) 32,775 (US$ 1,000 ) 3,408 (US$ 104 ) 2,130,375 (US$ 65,000 )	$ (508,233 ) (CNY -100,497 ) 74,270 (CNY 14,686 ) 78,179 (CNY 15,459 ) (5,770 ) (CNY -1,141 ) (144,955 ) (CNY -28,663 ) 30,262 (CNY 5,984 ) (18,843 ) (CNY -3,726 ) - 184,042 (CNY 36,392 ) 57,738 (CNY 11,417 ) 36,194 (CNY 7,157 ) 3,677 (CNY 727 ) 5,871 (CNY 1,161 ) (118,723 ) (CNY -23,476 ) 4,410 (CNY 872 ) 636,241 (CNY 125,809 ) 110,070 (CNY 21,765 ) 149,648 (CNY 29,591 ) (15,055 ) (CNY -2,977 ) - 177,852 (CNY 35,168 )	100.00 100.00 100.00 100.00 100.00 100.00 100.00 19.90 22.40 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00	$ (508,233 ) (CNY -100,497 ) 74,270 (CNY 14,686 ) 78,179 (CNY 15,459 ) (5,770 ) (CNY -1,141 ) (144,955 ) (CNY -28,663 ) 30,262 (CNY 5,984 ) (18,843 ) (CNY -3,726 ) - 41,231 (CNY 8,153 ) 57,738 (CNY 11,417 ) 36,194 (CNY 7,157 ) 3,677 (CNY 727 ) 5,871 (CNY 1,161 ) (118,723 ) (CNY -23,476 ) 4,410 (CNY 872 ) 636,241 (CNY 125,809 ) 110,070 (CNY 21,765 ) 149,648 (CNY 29,591 ) (15,055 ) (CNY -2,977 ) - 177,852 (CNY 35,168 )	$ 1,182,522 (US$ 36,080 ) 1,911,897 (US$ 58,334 ) 4,387,009 (US$ 133,852 ) 489,331 (US$ 14,930 ) 1,723,156 (CNY 340,551 ) (18,911 ) (US$ -577 ) (65,124 ) (US$ -1,987 ) 4,589 (US$ 140 ) 957,158 (CNY 189,143 ) 106,589 (CNY 21,063 ) 629,411 (US$ 19,204 ) 67,320 (US$ 2,054 ) 451,934 (US$ 13,789 ) 2,722,980 (US$ 83,081 ) 141,719 (US$ 4,324 ) 4,003,565 (US$ 122,153 ) 635,959 (HK$ 150,384 ) 1,395,359 (HK$ 329,958 ) 14,458 (CNY 2,857 ) - 2,307,753 (US$ 70,412 )	$ - - - - - - - - - - - - - - - - - - - - -	Note 4 Note 5

Accumulated Investment in Mainland China as of December 31, 2015 (Note 2)		Investment Amounts Authorized by Investment Commission, MOEA(Note	2)	Upper	Limit on Investment
$37,519,738 (US$1,144,767)		$38,410,661 (US$1,171,950)			Note 6

Note 1: Indirect investment in Mainland China through holding companies.

Note 2: Amount was recognized based on the audited financial statements.

Note 3: Lite-On Electronics (Guangzhou) Co., Ltd. merged with Lite-On Tech (Guangzhou) Co., Ltd., Lite-On (Guangzhou) Precision Tooling Co., Ltd., Lite-On Communications (Guangzhou) Co., Ltd. and Lite-On Elec and Wire (Guangzhou) Co., Ltd., with the Lite-On Electronics (Guangzhou) Co., Ltd. as the survivor entity. Because the merging process was still under way as of December 31, 2015, the change in the amount of investment in Mainland China has not yet been registered with the Ministry of Economic Affairs.

Note 4: Zhuhai Lite-On Mobile Technology Company Ltd. reorganized its structure on March 5, 2015; thus Lite-On Technology (Guangzhou) Investment Co., Ltd. wholly acquired Zhuhai Lite-On Mobile Technology Company Ltd. and injected its own funds CNY461,665 thousand in the same year in July.

Note 5: LarView Technologies Corp. (Shenzhen) completed its liquidation in July 2015.

Note 6: Under Order No. 09704604680 and Order No. 10420404350 issued by the Ministry of Economic Affairs, R.O.C. on August 29, 2008 and February 16, 2015, respectively, the Company acquired a certification-approved by the Industrial Development Bureau and valid from February 9, 2015 to February 8, 2018 - of its status as operation headquarters in the ROC. Thus, the Company has no limitation on the amount of investing in Mainland China.

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Lite-On Technology Corporation

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Chairman: Raymond Soong

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www.liteon.com

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AI assistant

LTC — Annual Report 2015

51997_rns_2016-07-07_3d73eb3c-e509-4cc1-8b2f-38863791f291.pdf

CONTACT INFORMATION

Spokesperson:

Acting Spokesperson:

Global Headquarter:

Major Factory:

Stock Affairs Department:

CPAs:

GDR and related information:

Table of Contents

Contact Information

1. Letter to Shareholders

3. Corporate Governance

4. Capital and Shares

2. Corporate Overview

5. Financial Information

Members of Top Management

Business Philosophy

Spirit

Vision

Mission

Belief

Letter to Shareholders

Dear Shareholders,

Operating Performance

Corporate Social Responsibility

Future Outlook

Corporate Overview

2.1 COMPANY PROFILE

2.2 Lite-On Corporate Values

Customer Satisfaction

About Lite-On Technology

Excellence in Execution

Innovation

Integrity

Corporate Governance

2.3 Organization Chart

3.1 Introduction

3.1.1 Major Resolutions of the General Meeting

i. Adoption of 2014 Financial Statements

3.1.2 Board of Directors

1. Major Resolutions of the Board Meetings

2. The Board and the Functional Committees

3.1.3 Audit Committee

3. Board Meetings Attendance

Important Notice:

Chairperson: Independent Director Kuo-Feng Wu

Members: Independent Director Harvey Chang, Independent Director Edward Yao-Wu Yang

(1) The operation of the Audit Committee

Important Notice:

3.1.4 The Compensation Committee

Note:

(2) The participation of the supervisors in the Board

Chairperson: Independent Director Harvey Chang

Members: Independent Director Kuo-Feng Wu, Independent Director Edward Yang

3.1.5 The Growth Strategic Committee

Chairperson: Independent Director Edward Yao-Wu Yang

Members: Director Raymond Soong, Director David Lin, Director Warren Chen, Director Keh-Shew Lu

3.2 Anti-corruption

1. Gifts and hospitality:

2. Principles governing business-related payments:

3.3 Corporate Risk Management

The Risk Management Framework

Risk Management Life Cycle

Continued improvement in risk management through PDCA cycle (see chart)

‧ Risk Management Projects

‧ Raising Safety Awareness

‧ Protecting Critical Assets

‧ Establishing Safety Systems and Rules

3.4 Information Regarding Board Members and Management Team

3.4.1 The profiles of the directors and the independent directors

Note 1: Chairman, Lite-On Technology Corp., Lite-On Semiconductor Corp., DIODES,INC. and G-Pro Electronics (SH) Co., Ltd.

Note 2: Vice Chairman, representative of Lite-On Technology Corp.

Director, Lite-On Singapore Pte. Ltd. and Lite-On Mobile Pte. Ltd.

Note 3: Director, Lite-On Technology Corp.

Note 7: Vice Chairman, DIODES, INC. and Lite-On Semiconductor Corp.

3.5 Statement of Internal Control System

Capital and Shares

LTC Annual Report 2015