Spokesperson

Name: Ming-Fan Xie Title: President Tel: 886-2-2758-9599 E-mail:[email protected]

Deputy Spokesperson

Name: Chun-Liang Lin Title: Assistant Vice President of Finance Tel: 886-2-2758-9599 E-mail: [email protected] Name: Da-Chang Tai Title: Manager of Accounting Tel: 886-6-282-1155 E-mail: [email protected]

Stock Transfer Agent

President Security Corp. Address: No.8, Dongxing Rd., Xinyi Dist., Taipei City 110, Taiwan (R.O.C.) Tel: 886-2-2746-3797 Website: www.pscnet.com.tw

Auditors

PriceWaterhouseCooper (PwC) Auditors: Yi-Zhang Lin, Kuo-Hua Wang Address: 22F., No.95, Minzu 2nd Rd., Lingya Dist., Kaohsiung City 802, Taiwan (R.O.C.) Tel.: 886-7-237-3116 Website: www.pwc.com/tw

Overseas Securities Exchange None

Corporate Website http://www. prince.com.tw

Headquarters, Branches and Plant Head Office

Address: 21F., No.11, Songgao Rd., Xinyi Dist., Taipei City 110, Taiwan (R.O.C.) Tel: 886-2- 2758-9599

Taichung Branch

Address: 14F., No.416, Sec. 2, Chongde 2nd Rd., Beitun Dist., Taichung City 406, Taiwan (R.O.C.) Tel: 886-4- 2242-7376

Tainan Branch

Address: 19F., No.30, Zhongzheng S. Rd., Yongkang Dist., Tainan City 710, Taiwan (R.O.C.) Tel: 886-6-282-1155

Kaohsiung Branch

Address: 11F., No.74, Zhongzheng 2nd Rd., Lingya Dist., Kaohsiung City 802, Taiwan (R.O.C.) Tel: 886-7-222-9891

Letter to Shareholders

&RPSDQ\3UR¿le

2.1 Date of Incorporation
2.2 Company History
3.1 Organization
3.2 Directors', Supervisors' and Managers' Information
3.3 Implementation of Corporate Governance
3.4 Information Regarding the Company's Audit Fee and Independence
3.5 CPA Replacement Information
3.6 If the Chairman, President, and Financial or Accounting Manager of the Auditor or the Related Party must be Disclosed
Supervisors, Department Heads and Shareholders of 10% Shareholding or More during the Preceding Fiscal Year or in the Current Fiscal Year up to the Date of Printing of the Annual Report
3.8 The Relationship of the Top Ten Shareholders as De¿ned in the Finance Standard Article 6
Ratio

Corporate Governance Report III

Capital Overview IV

4.1 Capital and Shares
4.2 Issuance of Corporate Bonds
4.3 Issuance of Preferred Shares
4.4 Global Depository Receipts
4.5 Employee Stock Options
4.7 Information on Implementation of the Company's Funds Utilization Plans

I	Letter to Shareholders	4
	&RPSDQ\3UR¿le
	2.1 Date of Incorporation	6
	2.2 Company History	6
	Corporate Governance Report
	3.1 Organization	8
	3.2 Directors', Supervisors' and Managers' Information	11
	3.3 Implementation of Corporate Governance	27
	3.4 Information Regarding the Company's Audit Fee and Independence	44
	3.5 CPA Replacement Information	46
	3.6 If the Chairman, President, and Financial or Accounting Manager of the Company Who had Worked for the Independent Auditor or the Related Party in the Most Recent Year, the Name, Title, and Term with the Independent Auditor or the Related Party must be Disclosed	46
	3.7 Equity Transferred and Equity Pledged (or Changes thereto) by Directors, Supervisors, Department Heads and Shareholders of 10% Shareholding or More during the Preceding Fiscal Year or in the Current Fiscal Year up to the Date of Printing of the Annual Report	46
	3.8 The Relationship of the Top Ten Shareholders as De¿ned in the Finance Standard Article 6	49
	3.9 Investments of Directors, Supervisors, Managers and Directly or Indirectly Controlled Business on the Reinvested Business and the Total Shareholdings Ratio	51

	Capital Overview
	4.1 Capital and Shares	54
	4.2 Issuance of Corporate Bonds	59
	4.3 Issuance of Preferred Shares	61
	4.4 Global Depository Receipts	61
	4.5 Employee Stock Options	61
	4.6 Status of New Shares Issuance in Connection with Mergers and Acquisition 4.7 Information on Implementation of the Company's Funds Utilization Plans	61 61

Review of Financial Conditions, Operating Results, and Risk Management VII

Operational Highlights V

VIII

5.1 Business Activities	63
5.2 Market and Sales Overview	65
5.3 Human Resources	72
5.4 Disbursement of Environmental Protection	73
5.5 Labor Relations	73
5.6 Important Contracts	74

6.1	Five-Year Financial Summary – Consolidated Financial Statements	77
6.2	Five-Year Financial Analysis	85
6.3	Supervisors' Report in the Most Recent Year	89
6.4	Consolidated Financial Statements and Report of Independent Accountants
	for the Years Ended December 31, 2015 and 2014	90
6.5	Non-Consolidated Financial Statements and Report of Independent
	Accountants for the Years Ended December 31, 2015 and 2014	164
6.6	Financial Difficulties	225

7.1	Analysis of Financial Status	227
7.2	Analysis of Operation Results	228
7.3	Analysis of Cash Flow	228
7.4	Major Capital Expenditure Items	229
7.5	Investment Policy in Last Year, Main Causes for Profits or Losses,
	Improvement Plans and the Investment Plans for the Coming Year	229
7.6	Analysis of Risk Management	229
7.7	Other Major Matters	232

Special Disclosure 8.1 Related Party 8.2 Information of Private Offered Securities 8.3 The Shares in the Company Held or Disposed of by Subsidiaries in the Most Recent Years 8.4 Other Necessary Supplement .............................................................................................. ....................................................................................... 234 244 244 244 ...................................................... .........................................................................

Letter to Shareholders

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Looking back on 2015, while the global economy showed signs of chaotic uncertainty, the United States, Japan, and Europe economy performed stably; however, economic growth was less than satisfactory. China, the emerging economy, and Association of Southeastern Asian Nations (ASEAN) JUHZ DW D VORZHGGRZQ SDFH DQG LQ IDFW HQWHUHG D UHFHVVLRQ ,Q WHUPV RI ¿QDQFH WKH 8QLWHG 6WDWHV raise interest rates in spite of all the efforts contributed to go the other direction; also, Europe, China, and Japan ad continued to maintain a loose monetary policy. The difference in monetary policy of all WKH FRXQWULHV LQYROYHG KDG UHVXOWHG LQ PDQ\ YDULDEOHV WR WKH ¿QDQFLDO VLWXDWLRQ ,Q WHUPV RI GRPHVWLF market, the momentum of domestic demand was stable; however, export business had been in recession for several consecutive months; therefore, the industry had held a relatively conservative attitude toward the future economy.

In terms of real estate, while facing the excessive supply of real estate for sale, the Central Bank of the ROC (Taiwan) adopted the targeted credit control measures. In addition, a series of negative factors, including a luxury tax and ownership tax, caused the real estate market sales to decline VLJQL¿FDQWO\ \$FFRUGLQJ WR WKH VWDWLVWLFV WKH QXPEHU RI EXLOGLQJV VROG DQQXDOO\ LQ 7DLZDQ UHDFKHG a record low of the last 14 year. While facing the "high price, large quantity, multi-tax" dilemma, investors exited the market and the first-time house-owner and the house-owner looking for replacement became the major buyers. The housing market was in recession and the Company had striven cautiously to assess the neighboring areas regularly, to obtain the most accurate market research information, and to continue the good sales with the Metropolitan areas characterized by providing the convenient facilities of life and transportation network. In addition, we worked WRJHWKHU WR IRFXV RQ WKH UHLQYHVWPHQW EXVLQHVV DQG WR LPSURYH WKH LQYHVWPHQW SUR¿W RI FRQVWUXFWLRQ real estate, hotel, and BOT dormitories and resorts.

The construction projects completed in current year include: Taipei Prince Fu Project II, Taichung Cloud Century Region A, Hai Yen, Chin Fon Gin, and Tainan Prince Floral Bo Project V. In the entire year, the Company gained operating revenues amounted to NT\$8.763 billion, net profit amounted to NT\$2.237 billion, consolidated revenues amounted to NT\$16.108 billion, and FRQVROLGDWHG QHW SUR¿WV DPRXQWHG WR 17 ELOOLRQ

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/RRNLQJ DKHDG WRZDUG ZKLOH IDFLQJ GHÀDWLRQ WKH JOREDO HFRQRP\ LV EHOLHYHG WR EH ZLWK OLPLWHG growth. In terms of the domestic economy, we hope to see the political situation after the elections become stable and the ruling party and opposing party will work together to come up with a new economic policy, including stimulating private consumption, expanding export business, expanding capital investment, attracting capital to return, and improving the employment environment with top priority. Taiwan must move forward and the government administration, new and old, should work together to maintain economic stability, to revitalize the market, and to keep the country out moving forward.

In regards to real estate markets, the introduction of the integrated property tax and land tax in 2016 has caused the luxury tax to be cancelled. The incentive of construction capacity will be initiated starting from this July; however, if builders rush to have new buildings market launched, a fear of supply and demand imbalance in the housing market will come true and the real estate market will take a downturn. In the Company, we anticipate to see these construction projects to be completed and presented to house buyers in 2016: Taipei Prince Yuan-Ding, Taichung Cloud Century Region A, and Kaohsiung Prince Cloud Region D. In addition, the reinvestment in hotels and inns and LQYHVWPHQW LQ UHDO HVWDWH ZLOO EH ZLWK D VWDEOH UHYHQXH DQG SUR¿W PDLQWDLQHG

III. Prospective development strategies of the Company

Effective cost control, prudent investment decision-making, and talents incubation are the three arrows of the Company used against the housing market downturn. Time changes, technology advances, and the Company repeatedly thinks about innovation with a smart technology and health home cloud service promoted that will be extended to food, clothing, shelter, and transportation service functions in the future in order to create a peace-of-mind, safe, and happy houses that have the name of Prince Housing & Development Corp., come to the mind of buyers when they are buying a house.

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Prince was founded on September 20 by Hsiu-Chi Wu, Yu-Li Hou, Zun-Xian Wu, Jyun-Jie Wu, Ching-Yuan Kao, Kao-Huei Cheng, Sheng-Ju Chuang, Xian-Fu Chuang, and Chang-Xing Wu in 1973. The changes in capital are as follows.

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1973	Founded on September 20 with NT\$37.5 million capital.
1975	Increased Capital to NT\$97.5 million
1976	Increased capital to NT\$120 million.
1977	Increased capital to NT\$150 million.
1981	Increased capital to NT\$195 million.
1983	Increased capital to NT\$273 million.
1984	Increased capital to NT\$327.6 million.
1989	Increased capital to NT\$1,300 million.
1990	Increased capital to NT\$1,950 million
1991	Increased capital to NT\$2,925 million
1992	Increased capital to NT\$3,948.75 million
1993	Increased capital to NT\$5,330.81 million
1994	Increased capital to NT\$6,396.98 million
1995	Increased capital to NT\$7,036.67 million
1996	Increased capital to NT\$7,388.51 million
1997	Increased capital to NT\$7,979.59 million
1998	Increased capital to NT\$8,777.55 million
1999	Increased capital to NT\$9,216.43 million
2002	Decreased capital to NT\$9,150.76 million
2003	Decreased capital to NT\$9,058.40 million
2005	Decreased capital to NT\$9,013.33 million
2006	Decreased capital to NT\$8,654.26 million
2007	Increased capital to NT\$9,300.1 million
2008	Increased capital to NT\$9,579.11 million
2010	Increased capital to NT\$9,962.27 million
2011	Increased capital to NT\$10,858.88 million
2012	Increased capital to NT\$11,944.76 million
2013	Increased capital to NT\$16,139.24 million
2014	Increased capital to NT\$16,623.42 million
2015	Decreased capital to NT\$16,233.26 million

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III. Corporate Governance Report

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Operation: Prepare property sale or lease contracts, arrange contracting
Advertisement: Plan and design the advertising of houses. 3. Market research: Survey the real estate markets, collect, arrange, and
Land purchase: Investigate and analyze land information and conditions,
Land registration: Register buildings, transfer property rights, control
Land asset management: Create and maintain database of the company's land assets, compute land value tax and house tax, etc.
Architectural design: Survey and measure before engineering design, register and manage original engineering design and engineering
Interior design: Assist interior decoration, evaluate and conduct alteration

Department	Functions
Sales I (Taipei) Sales II (Taichung) Sales III (Tainan, Kaohsiung)	and sales matters. 2. Advertisement: Plan and design the advertising of houses. analyze market data. 4. Service: Provide after-sales services.
Land Development	HYDOXDWH SUR¿W DQG ORVV RI ODQG GHYHORSPHQW process and schedule of land registration. land assets, compute land value tax and house tax, etc.
Design	literatures. of interior design.
Engineering	and technique cooperation, survey new techniques.
Administrative	1. Administrative: Responsible for the company stock affairs. 2. General Affairs: Responsible for all general affairs. management.
Finance	consistent with budget estimates. and manage cash and instruments in hand. needs of subsidiaries.

Engineering management: Supervise construction quality and progress, evaluate external construction projects, acquire and develop construction projects, undergo construction acceptance, investigate engineering materials, and collect materials of construction and planning acts.
Technique Development: Research and develop in construction technique and technique cooperation, survey new techniques.
Administrative: Responsible for the company stock affairs.
Human Resource: Responsible for all matters related to human resource
Investment management: Collect and analyze data of the subsidiaries, monitor operations of subsidiaries and ensure their operations are
Finance: Prepare cash budgets, plan for long-term funds, collect and distribute cash to support each branch and each subsidiary, pay salaries,
Finance in Taipei: Manage cash and instruments, deal with housing and land loans, research in financial commodities, and meet the financial

III

Corporate Governance Report

Department	Functions
Accounting	1. Accounting: Examine each kind of vouchers, keep bills and vouchers safely, keep track of account receivables, prepare lists of property, complete affairs pertaining to taxation, and analyze expenses of each department. 2. Cost: Collect and organize each voucher or cost source, prepare different kinds of documents to maintain individual/ summary inventory and cost accounts.
Information Technology	1. Overall information technology and information security. 2. Develop and maintain software programs. 3. Responsible for IT vendor management and the contracts, acquirements, and relationship with strategic IT vendors.
6HFUHWDU\ 2I¿FH	1. Legal: Manage the company's involvement in litigation, draft and review contracts and correspondence, participate in negotiation. 2. Public Relationship: Borden and deepen the company's network of relationship across the foreign investors, the security investment companies, and company associations, serve as the company's central contact for media and disseminate information regarding the company's activities to the public. 3. Secretary: Conduct assignments from the chairman, the supervisors and the board of directors, arrange schedules, and manage artist paintings.
Planning & Strategy	1. Investment Planning: Identify effective investment strategies and conduct investment feasibility evaluation. 2. BOT projects: Operate dormitory BOT of National Taiwan University and National Cheng Kung University.
Cost Control	1. Follow the company policy to purchase and deliver raw materials. 2. Update costs of each project continuously from planning to settlement.
\$XGLW 2I¿FH	3HUIRUP DXGLWLQJ DFWLYLWLHV LGHQWL¿HG E\ WKH ERDUG RI GLUHFWRUV 2. Evaluate the internal control system and identify the effectiveness and WKH HI¿FLHQF\ RI HDFK RSHUDWLRQ F\FOH 3. Report periodically the status of audit plan and provide related recommendations as well as continuous improvement. 4. Make certain that the company is in full compliance with the government laws and regulations.

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Title Nationality/ Country of Origin Name Date Elected Term (Years) Date First Elected Shareholding when Elected Current Shareholding Spouse & Minor Shareholding Shareholding by Nominee Arrangement Education or Experience Positions Held Concurrently at PHD and Other Companies Managers, Directors and Supervisors are Spouse or within 2 Degrees of Consanguinity Each Other Shares % Shares % Shares % Shares % Title Name Relation Chairman R.O.C. Joyful Inv. Co., Ltd. 6.18.2013 3 4.3.1989 19,076,068 1.60 28,136,024 1.73 0 0 0 0 President of Tainan Spinning Co., Ltd. Note 4 - - - R.O.C. Representative: Kao-Huei Cheng 3,511,315 0.29 9,854,994 0.61 2,924,904 0.18 0 0 Vice Chairman R.O.C. Uni-President Enterprises Corp. 6.18.2013 3 8.23.1973 (Note 1) 124,805,850 10.45 162,743,264 10.03 0 0 0 0 MBA, UCLA, USA Note 4 Director Hsiu-Ling Kao Spouse R.O.C. Representative: Chih-Hsien Lo 0 0 0 0 425,013 0.03 0 0 Unit: Shares; 12.31.2015

	Spouse		In-Law	Mother,	Brother, In-Law	Mother,	Brother, In-Law
Chih-Hsien	Lo	Chao-Mei Wu	Tseng, Chien Te Wu, Ping Chih Wu	Chao-Mei Wu Tseng, Ping	Shih-Hung Chih Wu, Chuang	Chao-Mei Wu Tseng, Chien	Hung Chuang Te Wu, Shih
Vice	Chairman		Director		Director		Director
Note 4		CEO of Times International Square	and Independent Hotel Co., Ltd. Joybomb Inc. Director of Netmarble	Director of Kuen Managing Ching	Development Co. International Ltd.	Kuen Ching Director of	Development International Co. Ltd.
Marymount	College, USA		MBA, Boston Univ., USA		MBA	MS of Chemical Engineering and	MS of Industrial Management, USC, USA
0	0	0	0	0	0	0	0
0	0	0	0	0	0	0	0
0	0	0	0	0	0.01	0	0.24
0	0	0	0	0	239,010	0	3,875,760
2.73	0.03	0.14	0.04	4.70	0.59	4.70	0.79
44,237,308	425,013	2,346,491	652,748	76,364,587	9,656,943	76,364,587	12,782,695
2.63	0.03	0.17	0.05	4.46	0.48	4.46	0.74
31,446,866	317,186	2,071,043	576,124	53,287,399	5,736,987	53,287,399	8,850,310
4.3.1989	(Note 1)		6.24.2010		4.3.1989		4.3.1989
3			3		3		3
6.18.2013			6.18.2013		6.18.2013		6.18.2013
Kao Chyuan Inv. Co., Ltd.	Representative: Hsiu-Ling Kao	Hung Yao Inv. Co., Ltd.	Representative: Shih-Hung Chuang	Taipo Inv. Co., Ltd.	Representative: Chien-Te Wu	Taipo Inv. Co., Ltd.	Representative: Ping-Chih Wu
R.O.C.	R.O.C.	R.O.C.	R.O.C.	R.O.C.	R.O.C.	R.O.C.	R.O.C.
Director			Director		Director		Director

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Relation		-	-		In-Law, Son, Son	Brother	Brother	Brother	-	-		Relation	-	Brother		-	-	-	-
Supervisors are Spouse or within 2 Degrees of Consanguinity Each Managers, Directors and Name Other		-	-		Shih-Hung Chien-Te Wu, Ping Chuang, Chih Wu	Po-Yi Hou	Po-Ming Hou	Ying-Nan Chuang	-	-	Supervisors are Spouse or within 2 Degrees of Consanguinity Each Managers, Directors and Other	Name	-	Ying-Chih	Chuang	-	-	-	-
Title		-	-		Director	Director	Director	Supervisor	-	-		Title	-	Director		-	-	-	-
Concurrently at PHD and Other Positions Held Companies	Chairman of San	Shin Spinning Co., Ltd.	Note 4		Tainan Spinning Director of Co., Ltd.	Ltd. , Director of Enterprises Corp. Vice Chairman Uni-President Spinning Co., of Tainan	Cement Co., Ltd. Tainan Spinning Chairman of ,Director of Universal Co., Ltd.	President of Shin Bo Fiber Co., Ltd.	Southern Taiwan Univ. of Science President of and Tech.	-	Concurrently at PHD and Other Positions Held	Companies	Lawyer	Guang Wei Inv. Chairman of	Co., Ltd.	Uni-President Manager of Enterprises Corp.	Director of PHD	President of Ho Development International Co., Ltd. Sing	Note 4
Education or Experience	BS, Dept. of	Chemistry, Fu Jen Catholic Univ.	National Chung BA, Dept. of Accounting,	Yuan Christian Univ.	Junior High School	Chinese Culture Univ.	National Cheng Kung Univ.	Hsing Wu Univ. of Science and Tech.	California, USA PhD, Univ. of	MBA, National Chengchi Univ	Education or Experience		Political Science China Univ. of PhD of Law, and Law	Master, Kinki	Univ., Japan	MBA, Univ. of Michigan, USA	National Chung Mathematics, BS, Dept. of Hsing Univ. Applied	Economics, UC BS, Dept. of Berkeley	MBA, National Chung Cheng Univ.
Shareholding %	0	0	0	0	0	0	0	0	0	0		%	0	0	0	0	0	0	0
Arrangement Nominee by Shares	0	0	0	0	0	0	0	0	0	0	Shareholding Nominee by	Arrangement Shares	0	0	0	0	0	0	0
%	0	0.04	0	0	0	0	0	0.38	0.00	0		%	0	0	0.31	0	0	0.04	0
Spouse & Minor Shareholding Shares	0	657,925	0	0	0	0	0	6,224,933	31,330	0	Spouse & Minor Shareholding	Shares	0	0	5,075,588	0	0	726,150	0
%	0.92	0.32		0	2.40	1.41	0.84	0.04	0	0		%	0	1.24	0.06	0.04	0.85	0.01	0
Shareholding Current Shares	14,969,463	5,209,847	162,743,264 10.03	0	39,020,030	22,923,624	13,701,215	610,020	0	0	Shareholding Current	Shares	0	20,140,496	900,869	601,774	13,806,429	226,600	0
%	0.94	0.33		0	2.45	1.43	1.01	0.05	0	0		%	0	1.26	0.10	0.04	0.98	0.03	0
Shareholding when Elected Shares	11,171,638	3,888,084	124,805,850 10.45	0	29,269,946	17,107,789	12,092,865	538,412	0	0	Shareholding when Elected	Shares	0	15,030,754	1,148,164	449,102	11,758,455	388,441	0
Elected Date First		6.20.2012	8.23.1973 (Note 1)		4.26.1986	6.15.2004	6.15.2004	6.18.2013	6.18.2013	6.18.2013	Date First	Elected	6.18.2013	6.24.2010		6.15.2004 (Note 2)	6.24.2010 (Note 3)	6.18.2013	6.18.2013
(Years) Term		3	3		3	3	3	3	3	3	(Years) Term		3	3		3	3	3	3
Elected Date		6.18.2013	6.18.2013		6.18.2013	6.18.2013	6.18.2013	6.18.2013	6.18.2013	6.18.2013	Elected Date		6.18.2013	6.18.2013		6.18.2013	6.18.2013	6.18.2013	6.18.2013
Name	Young Yuan Inv. Co., Ltd.	Representative: Chung-Ho Wu	Enterprises Corp. Uni-President	Tsung-Ping Wu	Chao-Mei Wu Tseng	Po-Ming Hou	Po-Yi Hou	Ying-Chih Chuang	Chian Tai	Ruei-Ching Lin	Name		Chi-Ming Chang	Guang Wei Inv. Co., Ltd.	Ying-Nan Chuang	Jing-Shin Chen	Chao-Wen Huang	Chien-Hung Chen	Cheng-Yang Lin
Nationality/ Country of Origin	R.O.C.	R.O.C.	R.O.C.	R.O.C.	R.O.C.	R.O.C.	R.O.C.	R.O.C.	R.O.C.	R.O.C.	Country of Nationality/	Origin	R.O.C.	R.O.C.	R.O.C.	R.O.C.	R.O.C.	R.O.C.	R.O.C.
Title		Director	Director		Director	Director	Director	Director	Independent Director	Independent Director	Title		Independent Director	Supervisor		Supervisor	Supervisor	Supervisor	Supervisor

	Relation	-	Brother		-	-
Supervisors are Spouse or within 2 Degrees of Consanguinity Each Managers, Directors and Other	Name	-	Ying-Chih	Chuang	-	-
	Title	-	Director		-	-
Concurrently at PHD and Other Positions Held	Companies	Lawyer	Chairman of	Guang Wei Inv. Co., Ltd.	Uni-President Manager of Enterprises Corp.	Director of PHD
Education or Experience		Political Science China Univ. of PhD of Law, and Law	Master, Kinki	Univ., Japan	MBA, Univ. of Michigan, USA	National Chung Mathematics, BS, Dept. of Hsing Univ. Applied
	%	0	0	0	0	0
Shareholding Arrangement Nominee by	Shares	0	0	0	0	0
	%	0	0	0.31	0	0
Spouse & Minor Shareholding	Shares	0	0	5,075,588	0	0
	%	0	1.24	0.06	0.04	0.85
Shareholding Current	Shares	0	20,140,496	900,869	601,774	13,806,429
	%	0	1.26	0.10	0.04	0.98
Shareholding when Elected	Shares	0	15,030,754	1,148,164	449,102	11,758,455
Elected Date First		6.18.2013	6.24.2010		6.15.2004 (Note 2)	6.24.2010 (Note 3)
(Years) Term		3	3		3	3
Elected Date		6.18.2013	6.18.2013		6.18.2013	6.18.2013
Name		Chi-Ming Chang	Guang Wei Inv. Co., Ltd.	Ying-Nan Chuang	Jing-Shin Chen	Chao-Wen Huang
Country of Nationality/ Origin		R.O.C.	R.O.C.	R.O.C.	R.O.C.	R.O.C.
Title		Independent Director		Supervisor	Supervisor	Supervisor

-	-
-	-
-	-
President of Ho Development International Co., Ltd. Sing	Note 4
Economics, UC BS, Dept. of Berkeley	MBA, National Chung Cheng Univ.
0	0
0	0
0.04	0
726,150	0
0.01	0
226,600	0
0.03	0
388,441	0
6.18.2013	6.18.2013
3	3
6.18.2013	6.18.2013
Chien-Hung Chen	Cheng-Yang Lin
R.O.C.	R.O.C.
Supervisor	Supervisor

III

Note 4: Positions held concurrently at PHD and other companies

mpanies HD and Other Co Held Concurrently at P Positions me Na	Tainan Spinning Co., Ltd., Nan Fan Housing Development Co., Ltd., ScinoPharm Taiwan, Ltd., Ming Da Enterprises Co., Ltd., Tainan Spinning Retail & Distribution Co., Ltd., Dong Feng Enterprises Co., Ltd., Chen Shi Investment Holding Co., Ltd., Times Square International Co., Ltd., Prince Industrial Co., Ltd., Southern Taiwan Univ. of Science and Technology, Prince Real Estate Co., Ltd. Chairman of:	Uni-President Enterprises Corp., Uni-President Development Corp., President International Development Corp., Geng Ding Co., Ltd., Global Venture Capital Co., Ltd., Joyful Inv. Co., Ltd., Uni-President Assets Management Co., Ltd., President Fair Development Corp., Nan Fan Development Co., Ltd., President Securities Corp., Prince Property Management Consulting Co., Ltd. Director of: Kao-Huei Cheng	Uni-President Enterprises Corp., President Chain Store Corp., Uni-President Natural Industrial Corp., Ton Yi Industrial Corp., TTET Union Corp., Kai Yu Investment Co., Ltd., President Packaging Corp., President International Development Corp., Uni-President Cold Chain Corp., Presco Netmarketing Inc., Uni-President Dream Parks Corp., Uni-OAO Travel Service Corp., Kai Nan Investment Co., Ltd., President Century Corp., Ton Yu Investment Inc., Un-President Real Estate Co., Ltd., Uni-President (Vietnam) Co.,Ltd.Uni-President (Thailand) Ltd.Uni-President (Philippines) Corp., Changjiagang President Nisshin Food Co., Ltd., Sanshuijianlibao Commerce Co., Ltd., Uni-President China Holdings Ltd. (Cayman), President Enterprises (China) Investment Co., Ltd., Tong Ren Corp., Beijing President Food Co., Ltd. Chairman of:	President Nisshin Corp., Prince Housing & Development Corp., Times Square International Hotel Co., Ltd., Jinmailang Beverage (Beijing) Co., Ltd. Vice Chairman of:	Corp., Presicarre Corp., Tung Ho Development Corp., President Fair Development Corp., Tainan Spinning Retail & Distribution Co., Ltd., ScinoPharm President Baseball Team Corp., Nanlien International Corp., President Entertainment Corp., Tone Sang Construction Corp., Retail Support International Taiwan Ltd., President Starbucks Coffee Corp., Uni-President Organics Corp., PK Venture Capital Corp., Uni-President Glass Industrial Co., Ltd., Kuang Chuan Dairy Co., Ltd., Kuang Chuan Foods Co., Ltd., Uni-President Development Corp., Tait Marketing & Distribution Co., Ltd., Weilih Food Corp., Ming Da Enterprises Co., Ltd., Geng Ding Co., Ltd., Chen Shi Investment Holding Co., Ltd., Prince Property Management Consulting Co., Ltd., Prince Industrial Co., Ltd., Prince Real Estate Co., Ltd., Uni-Splendor Corp., Uni-President Dream Parks Corp., Shanhai, Kao Chyuan Inv. Corp., President Chain Store (BVI) Holdings Ltd., President Chain Store (Labuan) Holdings Ltd., President Starbucks Coffee (Cayman) Holdings Ltd., Shanghai President Starbucks Coffee Co., Ltd., Cayman President Holdings Ltd.、Kai Yu(BVI) Investment Co.,Ltd、President Packaging Holdings Ltd.、Uni-President Southeast Asia Holdings Ltd.、PT ABC President Indonesia、President Energy Development (Cayman Islands) Ltd.、Uni-President Asia Holdings Ltd., Uni-President International (HK) Co., Ltd., Champ Green Capital Co., Ltd., Champ Green (Shanghai) Consulting Co. Ltd., Yantai North Andre Juice Co., Ltd., Beijing President Enterprises Drinks & Food Co., Ltd. Zixi President Enterprises Drinks & Food Co., Ltd., Wuhan President Enterprises Food Co., Ltd., Kunshan President Enterprises Food Co., Ltd., Kunming President Enterprises Corp., Chengdu President Enterprises Food Co., Ltd., Xinjiang President Enterprises Food Co., Ltd., President (Kunshan) Food Science & Technology Co., Ltd., Beijing President Enterprises Drinks & Food Co., Ltd., Uni-President Enterprises (Shanghai) Drink & Food Co., Ltd., Guangzhou President Enterprises Co., Ltd., Shenyang President Enterprises Co., Ltd., Harbin President Enterprises Co., Ltd., Hefei President Enterprises Co., Fuzhou President Enterprises Co., Ltd. Director of: Chih-Hsien Lo

me Na		mpanies HD and Other Co Held Concurrently at P Positions
Chih-Hsien Lo (Cont.)	Director of:	Ltd., Ningxia President Enterprises Co., Ltd., Inner Mongolia President Enterprises Co., Ltd., Shanxi President Enterprises Co., Ltd., Uni-President Mineral Water Co., Ltd., Bama President Mineral Water Co., Ltd., Wuxue President Mineral Water Co., Ltd., Uni-President Enterprises (Hutubi) Tomato Nanchang President Enterprises Co., Ltd., Zhengzhou President Enterprises Co., Ltd., Changsha President Enterprises Co., Ltd., Zhanjiang President Enterprise Co., Ltd., Nanning President Enterprise Co., Ltd., Taizhou President Enterprises Co., Ltd., Chongqing President Enterprise Co,. Ltd., Changchun President Enterprise Co., Ltd., Shijiezhuanng President Enterprise Co., Ltd., Hainan President Enterprise Co., Ltd., Jinan President Enterprise Co., Ltd., Baiyin President Enterprise Co., Ltd., Xuzhou President Enterprise Co., Ltd., Guiyang President Enterprises Co., Ltd., Akesu President Enterprise Co., Ltd., Hangzhou President Enterprise Co., Ltd., Henan President Enterprises Co., Ltd., Shanxi President Enterprises Corp., Shanghai President Enterprises Co., Enterprises (TianJin) Co., Ltd., Jangsu President Enterprises Co., Ltd., Hunan President Enterprises Co., Ltd., Uni-President Trading (Kunshan) Co., Ltd., Uni-President Trading (Hubei) Co., Ltd., President (Shanghai) Trading Co., Ltd., Jilin President Mineral Water Co., Ltd., Wuyuan President Enterprises Products Technology Co., Ltd., Uni-President Shanghai Pearly Century Co., Ltd., Shanghai Ruxin Leather Products Co., Ltd., Uni-President Research & Development Enterprises Co., Ltd.
	President of:	Uni-President Enterprises Corp., Presco Netmarketing Inc.
	Chairman of:	Kao Chyuan Inv. Corp., President Being Corp., President Fair Development Corp., Uni-President Department Store Corp., President Pharmaceutical Corp., President Drugstore Business Corp., Afternoon Tea Taiwan Corp.
Hsiu-Ling Kao	Director of:	ScinoPharm Taiwan, Ltd., Ton Yi Industrial Corp., President International Development Corp., Uni-President Enterprises Corp., Uni-President Development Corp., President Chain Store Corp., President Securities Corp., Times Square International Hotel Co., Ltd., President Starbucks Coffee Corp., Tainan Spinning Retail & Distribution Co., Ltd.
	Chairman of	Uni-President Assets Management Co., Ltd.
Tsung-Ping Wu	Director of:	President International Trade & Investment Corp.(Tongtai), President Chain Store Corp., Prince Housing & Development Corp., Prince Real Estate Co. Ltd., Times Square International Hotel Co., Ltd., Ton Ren Pharmaceutical Corp., ScinoPharm Taiwan, Ltd., Kuang Chuan Dairy Co., Ltd., Kuang Chuan Foods Co., Ltd., Ton Yu Investment Inc., Uni-President International (HK) Co., Ltd.
	Supervisor of:	President Baseball Team Corp., President Entertainment Corp., Tone Sang Construction Corp., President Kikkoman Inc., President Investment Trust Corp., Kai Yu Investment Co., Ltd., Kai Nan Investment Co., Ltd., President International Development Corp., Uni-Splendor Corp., Un-President Real Estate Co., Ltd., Tait Marketing & Distribution Co., Ltd., President Kikkoman Zhenji Foods Co., Ltd.
	Director of:	Ming Da Enterprises Co., Ltd., Tung Ho Development Corp., Tone Sang Construction Corp.
Cheng-Yang Lin	Supervisor of:	Prince Housing & Development Corp., Times Square International Hotel Co., Ltd.
	President of:	Tone Sang Construction Corp.

III

Major Shareholders of the Institutional Shareholders

12.31.2015

	Na	me of Institutional Shareholders				Major Shareholders of the Institutional Shareholders
		Joyful Investment Co., Ltd.	Cheng (3.5%), Huei-Yi Cheng (3.5%), Bi-Ying Cheng (3%), Kao-Huei Cheng (0.5%), Yu-Cheng Chen (0.5%) Chao-Yuan Cheng (50%),			Miao-Yu Cheng Hung (24.5%), Li-Ling Cheng (6%), Hung-Yi Cheng (5%), Bi-Huei Cheng (3.5%), Kuo-Bi
Prince Housing & Development Corp.		Uni-President Enterprises Corp.	(3.16%), Po-Ming Hou (2.60%), Po-Yu Hou (2.27%), Government of Singapore (2.16%), Hsiu-Ling Kao (1.64%), Vanguard Emerging Markets Stock Index Fund (1.57%), Hsiu-Ren Liu (1.55%), T. Rowe Price Emerging Markets Stock (1.52%) Kao Chyuan Inv. Co., Ltd. (4.64%), Saudi Arabian			Monetary Agency (3.73%), BNP Paribas					Wealth					Management Singapore Branch
		Kao Chyuan Investment Co., Ltd.	Ching-Yuan Kao (0.98%), Lai-Huan Kao (13.41%), Hsiu-Ling Kao (61.61%), Chih-Hsien Lo (20.13%), Han-Di Kao (1.61%), Zi-Yi Kao (1.19%), Shi-Ai Lo (1.07%)
		Hung Yao Investment Co., Ltd.	Shih-Hung Chuang (34%), Hsin-Yi Wu (33%), Yen-Yao Chuang (33%)
		Taipo Investment Co., Ltd.	Huang (8.88%), Cheng Ta Investment Co., Ltd. (1.41%), Ching-Mei Wu (0.31%), Ru-Yu Chiang Wu (0.31%), Jyuan Chiang Wu (0.31%) Chao-Mei	Wu Tseng (8.48%), Ping-Chih		Wu (20.84%), Ping-Yuan	Wu (20.84%), Chien-Te			Wu (18.95%),		Wei-Te				Wu (18.95%), Su-Mei
		Young Yuan Investment Co., Ltd.	(8.5%), Mei-Siang Chen (3.4%), Ai-Gui Huang (3.4%) Chung-Ho	Wu (27.05%), Chung-Chien	Wu (24.5%),	Wu Jyun Jie Charitable Foundation (24.65%), Bao-Huei							Wu (8.5%),		Man-Huei	Wu
		Guang Wei Investment Co., Ltd.	Yun-Jen Chuang (7%), Chih-Chin Chuang (4%), Ting-Ya Chuang (3%), Yu-Hsuan Chuang (4%), Ming Hsuan Chuang (3%) Ying-Chih Chuang (26%), Ying-Nan Chuang (26%),			Mei-Yu Chuang Chen (10%), Jing-Chih Chuang Lin (10%), Yun-Da Chuang (7%),
		Major Shareholders that are Institutional Shareholders														12.31.2015
		Name of Institutional Shareholders	Shareholders Name of	Major Institutional			Major Shareholders of the			Institutional Shareholders	Major
		Uni-President Enterprises Corp.	Kao Chyuan Investment Co., Ltd.		Hsien Lo (20.13 Ching-Yuan	%), Han-Di Kao (1.61 Kao (0.98	%), Lai-Huan		Kao (13.41	%), Zi-Yi Kao (1.19	%), Hsiu-Ling			%), Shi-Ai Lo (1.07 Kao (61.61	%)	%), Chih-
		Taipo Investment Co., Ltd.	Cheng Ta Investment Co., Ltd.		Wei-Te (22.83	Wu Tseng(1.11 %), Chien-Te Chiung-Huei Hung (1.01 Mei Wu (22.83 %), Chao-	%), Ching-	Wu (22.83 Mei	%), Shu-Nu Wu (0.61	%), Ping-Chih	%), Ru-Yu Chiang Wu (1.11	Wu (22.83 %), Su-		Wu (0.61	%), Ping-Yuan Mei Huang (1.01 %)	%), Wu
		Young Yuan Investment Co., Ltd.	Wu Jyun Jie Charitable Foundation		None Available
		,QGHSHQGHQFHDQG3URIHVVLRQDO([SHUWLVHRI%RDUG Criteria		)LYHRU0RUH <hduvri([shulhqfhru3urihvvlrqdo4xdol¿fdwlrq 0H</hduvri([shulhqfhru3urihvvlrqdo4xdol¿fdwlrq		PEHUVDQG6XSHUYLVRUV				Independence Criteria (Note)						12.31.2015
			Lecturer or above in	Procurator, Attorney, CPA, Qualification of Justice,		Experience in Business, Law, Finance,										Directorships Independent Number of Held in
	Title & Name		Accounting or Corporate Business, Law, Finance, Business Related Fields	Corporate Business Related Specialist or Technician of National Examination in Fields		or Corporate Business Related Fields Accounting,	1	3 2	4	5	6	7	8	10 9		Other Public Companies
	Chairman	Joyful Investment Co., Ltd. Kao-Huei Cheng														0
	Chairman Vice	Uni-President Enterprises Corp. Chih-Hsien Lo														0
	Director	Kao Chyuan Inv. Co., Ltd. Hsiu-Ling Kao														0
	Director	Hung Yao Investment Co., Ltd. Shih-Hung Chuang														0
	Director	Taipo Investment Co., Ltd. Chien-Te Wu														0
	Director	Taipo Investment Co., Ltd. Ping-Chih Wu														0
	Director	Young Yuan Investment Co., Ltd. Chung-Ho Wu														0
	Director	Uni-President Enterprises Corp. Tsung-Ping Wu														0
	Director	Chao-Mei Wu Tseng				ˇ	ˇ		ˇ		ˇ	ˇ		ˇ ˇ		0
	Director	Po-Ming Hou				ˇ					ˇ	ˇ		ˇ ˇ		0
	Director	Po-Yi Hou				ˇ	ˇ					ˇ		ˇ ˇ		0
	Independent Director	Ying-Chih Chuang				ˇ	ˇ	ˇ		ˇ	ˇ	ˇ	ˇ	ˇ ˇ		0
Annual Report 2015	Independent Director	Chian Tai	ˇ				ˇ	ˇ ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ ˇ		2
	Independent Director	Ruei-Ching Lin	ˇ			ˇ	ˇ	ˇ ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ ˇ		0
	Director	Chi-Ming Chang	ˇ	ˇ		ˇ	ˇ	ˇ ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ ˇ		0

Name of Institutional Shareholders	Major Institutional Shareholders Name of	Major Institutional Shareholders Major Shareholders of the
Uni-President Enterprises Corp.	Kao Chyuan Investment Co., Ltd.	%), Chih- %) %), Shi-Ai Lo (1.07 Kao (61.61 %), Hsiu-Ling %), Zi-Yi Kao (1.19 Kao (13.41 %), Lai-Huan %), Han-Di Kao (1.61 Kao (0.98 Hsien Lo (20.13 Ching-Yuan
Taipo Investment Co., Ltd.	Cheng Ta Investment Co., Ltd.	Wu %), %), Ping-Yuan Mei Huang (1.01 %) Wu (0.61 Wu (22.83 %), Ru-Yu Chiang %), Su- Wu (1.11 %), Ping-Chih %), Shu-Nu Wu (0.61 Wu (22.83 Mei Wu Tseng(1.11 %), Ching- %), Chien-Te Chiung-Huei Hung (1.01 Mei Wu (22.83 %), Chao- Wei-Te (22.83
Young Yuan Investment Co., Ltd.	Wu Jyun Jie Charitable Foundation	None Available

Major Shareholders that are Institutional Shareholders

,QGHSHQGHQFHDQG3URIHVVLRQDO([SHUWLVHRI%RDUG0HPEHUVDQG6XSHUYLVRUV

III

)LYHRU0RUH <hduvri([shulhqfhru3urihvvlrqdo4xdol¿fdwlrq Corporate Business Related Procurator, Attorney, CPA, Specialist or Technician of National Examination in Qualification of Justice, Fields</hduvri([shulhqfhru3urihvvlrqdo4xdol¿fdwlrq	Accounting or Corporate Business, Law, Finance, Business Related Fields Lecturer or above in Guang Wei Investment Co., Ltd. Criteria Ying-Nan Chuang Chien-Hung Chen Chao-Wen Huang Jing-Shin Chen Title & Name
	Cheng-Yang Lin

Note: Please tick the corresponding boxes if directors or supervisors have been any of the following during the two years prior to being elected or during the term of office:

Not an employee of the Company or any of its affiliates.
1. Not a director or supervisor of the Company or any of its affiliates. The same does not apply, however, in cases where the person is an independent director of the Company, its parent company, or any subsidiary in which the Company holds, directly or indirectly, more than 50% of the voting shares.
1. Not a natural-person shareholder who holds shares, together with those held by the person's spouse, minor children, or held by the person under others' names, in an aggregate amount of 1% or more of the total number of outstanding shares of the Company or ranking in the top 10 in holdings.
1. Not a spouse, relative within the second degree of kinship, or lineal relative within the fifth degree of kinship, of any of the persons in the preceding three subparagraphs.
1. Not a director, supervisor, or employee of a corporate shareholder that directly holds 5% or more of the total number of outstanding shares of the Company or that holds shares ranking in the top five in holdings.
1. Not a director, supervisor, officer, or shareholder holding 5% or more of the share, of a specified company or institution that has a financial or
business relationship with the Company. 7. Not a professional individual who, or an owner, partner, director, supervisor, or officer of a sole proprietorship, partnership, company, or institution
that, provides commercial, legal, financial, accounting services or consultation to the Company or to any affiliate of the Company, or a spouse thereof. 8. Not having a marital relationship, or a relative within the second degree of kinship to any other director of the Company.
- 1. Not been a person of any conditions defined in Article 30 of the Company Law.
- 10.Not a governmental, juridical person or its representative as defined in Article 27 of the Company Law.

	Relation	None	None	None	None	None	None	None	None	None
Spouse or within 2 Degrees of Consanguinity Each Other Managers who are	Name	None	None	None	None	None	None	None	None	None
	Title	None	None	None	None	None	None	None	None	None
Concurrently at PHD Positions Held	and Other Companies	Chairman of Cheng-Shi Prince Security Co., Ltd. Construction Co., Ltd.,	Hotel, Splendor Assets Management Co., Ltd. Director of Splendor	Director of Prince Security Co., Ltd.	President of Ta-Chen &Engineering Corp. Construction	Director of Prince Security Co., Ltd.	Supervisor of Prince Utility Co., Ltd.	Director of Prince Security Co., Ltd.	Director of Nantex Industry Co., Ltd.	Director of Prince Security Co., Ltd.
Education		MS, Dept. of Civil TamKang Univ. Engineering,	BA, Dept. of Accounting, National Chung Hsing Univ.	National Taiwan Univ. of Science & Tech. BS, Dept. of Architecture,	MBA, Boston Univ., USA	Washington Univ., USA MBA, George	MBA, Univ. of South Australia	National Taiwan Univ. of Science & Tech.	Architecture, BS, Dept. of HuaFan Univ.	National Taipei Univ. of Business
Shareholding	%	0	0	0	0	0	0	0	0	0
Arrangement by Nominee	Shares	0	0	0	0	0	0	0	0	0
	%	0.00	0	0	0	0	0	0	0	0
Spouse & Minor Shareholding	Shares	41,908	0	0	0	0	0	0	0	0
	%	0.04	0.01	0.00	0	0.00	0.01	0.01	0.02	0.01
Shareholding	Shares	580,909	154,500	80,221	0	10,300	124,909	206,000	372,860	206,000
Effective Date		07.05.2010	09.01.2013	09.01.2013	09.01.2015	09.01.2013	09.01.2013	09.01.2013	09.01.2013	03.25.2014
Nationality/ Country of	Origin	R.O.C.	R.O.C.	R.O.C.	R.O.C.	R.O.C.	R.O.C.	R.O.C.	R.O.C.	R.O.C.
Name		Ming-Fan Xie	Yi-Chun Su	Wen-Zhen Chiu	Mu-Tsun Hou	Jian-Ying Wu	Chun-Liang Lin	Xiao-Yu Chiang	Chun-Cheng Kuo	Ying-Jie Chuang
Title		President	Vice President of Secretary	Vice President of Sales	Vice President	President of Planning Assistant Vice & Strategy	President of Finance Assistant Vice	Assistant Vice President of Engineering	Assistant Vice Administrative President of	ɒ Assistant Vice 3UHVLGHQW RI 6DOHV

0DQDJHPHQW7HDP 12.31.2015

20 21

Corporate Governance Report

III

C or
po ra te
G ov er na nc e
R ep or t

III

12.31.2015

	Relation	None	None	None	None	None	None	None
Spouse or within 2 Degrees of Consanguinity Each Other Managers who are	Name	None	None	None	None	None	None	None
	Title	None	None	None	None	None	None	None
Concurrently at PHD Positions Held	and Other Companies	None	Xing Plywood Co., Chairman of Jin Yi Ed.	None	None	None	None	None
Education		MBA, Central Michigan Univ., USA	BA, Dept. of Accounting, National Cheng Kung Univ.	MBA, Dept. of Science Management, National Chiao Tung Univ.	MS, Dept. of Architecture, Chung Yuan Christian Univ.	Kainan High School of Commerce and Tech.	National Taiwan Univ. MBA.	Taxation Mgmt., National Kaohsiung Univ. of BA, Dept. of Wealth and Applied Sciences
	$\%$	$\circ$	$\circ$	$\circ$	$\circ$	$\circ$	$\circ$	$\circ$
Shareholding by Nominee Arrangement	Shares	$\circ$	$\circ$	$\circ$	$\circ$	$\circ$	$\circ$	$\circ$
	$\%$	$\circ$	$\circ$	$\circ$	$\circ$	$\circ$	$\circ$	$\circ$
Spouse & Minor Shareholding	Shares	$\circ$	$\circ$	$\circ$	$\circ$	$\circ$	$\circ$	$\circ$
	$\%$	0.55	0.02	0.02	$\circ$	0.01	$\circ$	0.01
Shareholding	Shares	8,960,867	313,517	293,550	$\circ$	154,500	$\circ$	127,720
Effective Date		09.01.2013	R.O.C. 07.01.2006	09.01.2013	R.O.C. 09.01.2013	$\overline{13}$ 09.01.20	R.O.C. 09.01.2013	09.01.2013
Nationality Country of	Origin	R.O.C.		R.O.C.		R.O.C.		R.O.C.
Name		Chuang Yun-Da	Da-Chang Tai	Xi-Fen Chang	Te-Ju Yen	Tsung-Liang Wen	Keng-Wang Chen	Ya-Ting Xue
Title		of Planning & Strategy Manager	Manager of Accounting	Manager of Land Development	Manager of Design	Assistant Manager of Sales II	Assistant Manager of IT	Junior Manager of Audit Office

	None		None	None	None	None	None
None None				None	None	None	None

None None None None None None
Unit: NT\$ thousands; 12.31.2015 Chairman of Jin Yi Xing Plywood Co.,
None None None None None Ltd.

Compensation to Directors Also Serving as Company Employees 9LFH3UHVLGHQWV Taxation Mgmt., National BA, Dept. of Accounting, MS, Dept. of Architecture, BA, Dept. of Wealth and MBA, Dept. of Science Management, National Kainan High School of Chung Yuan Christian National Cheng Kung National Taiwan Univ. Commerce and Tech. Kaohsiung Univ. of Chiao Tung Univ. Applied Sciences Univ., USA MBA. Univ. Univ.

0 0 0 0 0 0
'LUHFWRUV6XSHUYLVRUV3UHVLGHQWDQG 0 0 0 0 0 0
Salary, Bonuses, and 0 0 0 0 0 0
Summation of A, B, C, 0 0 0 0 0 0
and D as % of
0.02 0.02 0.01 0.01 0 0
313,517 293,550 154,500 127,720 0 0 Earnings Distribution

Remuneration 07.01.2006 09.01.2013 09.01.2013 09.01.2013 09.01.2013 09.01.2013
Directors R.O.C. R.O.C. R.O.C. R.O.C. R.O.C. R.O.C.

Xi-Fen Chang Da-Chang Tai Tsung-Liang Keng-Wang Ya-Ting Xue Te-Ju Yen Chuang Chen Wen
PXQHUDWLRQ3DLGWR muneration Paid to Assistant Manager of IT Manager of Accounting of Planning & Strategy
5H	of Sales II	Manager of Land Development	Assistant Manager Manager of Design Junior Manager of Audit Office

III

					Na	me of Directors
	%UDFNHW		Total of (A+B+C+D)						Total of (A+B+C+D+E+F+G)
			PHD		All Consolidated Companies		PHD			All Consolidated Companies
	Under NT\$ 2,000,000		Chih-Hsien Lo, Shih-Hung Chuang, Ping-Chih Wu, Tsung-Ping Wu, Ruei-Ching Lin, Chian Tai Chi-Ming Chang,		Shih-Hung Chuang, Ping-Chih Wu, Tsung-Ping Wu, Chi-Ming Chang, Ruei-Ching Lin, Chian Tai		Shih-Hung Chuang, Ping-Chih Wu, Tsung-Ping Wu, Chi-Ming Chang, Ruei-Ching Lin, Chian Tai			Chi-Ming Chang, Ruei-Ching Lin, Ping-Chih Wu, Tsung-Ping Wu, Hsiu-Ling Kao, Chien-Te Wu Chian Tai
Prince Housing & Development Corp.	NT\$2,000,000 ~ NT\$5,000,000		Chao-Mei Wu Tseng, Po-Ming Hou, Po-Yi Hou, Ying-Chih Chuang Kao Chyuan Inv. Co., Ltd. Young Yuan Inv. Co., Ltd. Hung Yao Inv. Co., Ltd. Kao-Huei Cheng		Chao-Mei Wu Tseng, Po-Ming Hou, Po-Yi Hou, Ying-Chih Chuang Kao Chyuan Inv. Co., Ltd. Young Yuan Inv. Co., Ltd. Hung Yao Inv. Co., Ltd. Chih-Hsien Lo,		Po-Yi Hou, Ying-Chih Chuang Kao Chyuan Inv. Co., Ltd. Young Yuan Inv. Co., Ltd. Hung Yao Inv. Co., Ltd. Chao-Mei Wu Tseng, Chih-Hsien Lo,			Po-Yi Hou, Ying-Chih Chuang, Shih Young Yuan Inv. Co., Ltd. Hung Yao Inv. Co., Ltd. Chao-Mei Wu Tseng, Hung Chuang
	NT\$5,000,000 ~ NT\$10,000,000		Taipo Inv. Co., Ltd.		Taipo Inv. Co., Ltd. Kao-Huei Cheng		Kao-Huei Cheng, Po-Ming Hou, Taipo Inv. Co., Ltd.			Chih-Hsien Lo, Po-Ming Hou, Kao Chyuan Inv. Co., Ltd. Taipo Inv. Co., Ltd.
	NT\$10,000,000 ~ NT\$15,000,000		Uni-President Enterprises Corp. Joyful Inv. Co., Ltd.,		Uni-President Enterprises Corp. Joyful Inv. Co., Ltd.,		Uni-President Enterprises Corp. Joyful Inv. Co., Ltd.,			Joyful Inv. Co., Ltd.
	NT\$15,000,000 ~ NT\$30,000,000		–		–		–			Kao-Huei Cheng
	NT\$30,000,000 ~ NT\$50,000,000		–		–		–			Uni-President Enterprises Corp.
	NT\$50,000,000 ~ NT\$100,000,000		–		–		–			–
	Over NT\$100,000,000		–		–		–			–
	Total		18		18		18			20
	muneration Paid to Supervisors Re									Unit: NT\$ thousands; 12.31.2015
				Re	muneration			and C as P 6X	PDWLRQRI\$% % of Net
	me Na Title		Salary (A)		Earnings Distribution (B)		Allowances (C)		me Inco	Compensation from 2WKHU WKDQ \$I¿OLDWHV
		PHD	All Consolidated Companies	PHD	All Consolidated Companies	PHD	All Consolidated Companies	PHD	All Consolidated Companies	Subsidiaries
	Guang Wei Inv. Co., Ltd. Supervisor
	Ying-Nan Chuang Supervisor
	Jing-Shin Chen Supervisor	–	1,575	20,305	20,305	1,270	1,450	0.96%	1.04%	120
	Chien-Hung Chen Wen Huang Cheng-Yang Lin Chao- Supervisor Supervisor Supervisor

						Na	me of Supervisors
	%UDFNHW						7RWDORI\$%&
					PHD				All Consolidated Co	mpanies
	Under NT\$ 2,000,000				Ying-Nan Chuang				Ying-Nan Chuang
	NT\$2,000,000 ~ NT\$5,000,000				Jing-Shin Chen, Chao-Wen Huang, Chien-Hung Chen, Guang Wei Inv. Co., Ltd. Cheng-Yang Lin				Guang Wei Inv. Co., Ltd. Cheng-Yang Lin	Jing-Shin Chen, Chao-Wen Huang, Chien-Hung Chen,
	NT\$5,000,000 ~ NT\$10,000,000				–				–
	NT\$10,000,000 ~ NT\$15,000,000 NT\$15,000,000 ~ NT\$30,000,000				–				–
	NT\$30,000,000 ~ NT\$50,000,000				– –				– –
Annual Report 2015	NT\$50,000,000 ~ NT\$100,000,000				–				–
	Over NT\$100,000,000				–				–

	Compensation from 2WKHU WKDQ \$I¿OLDWHV	Subsidiaries			120
PDWLRQRI\$% % of Net	me Inco	All Consolidated Companies			1.04%
and C as P 6X		PHD			0.96%
	Allowances (C)	All Consolidated Companies				1,450
		PHD				1,270
muneration	Earnings Distribution (B)	All Consolidated Companies				20,305
Re		PHD				20,305
	Salary (A)	All Consolidated Companies				1,575
		PHD				–
	me Na		Guang Wei Inv. Co., Ltd.	Ying-Nan Chuang	Jing-Shin Chen	Wen Huang Chao-	Chien-Hung Chen	Cheng-Yang Lin
	Title		Supervisor	Supervisor	Supervisor	Supervisor	Supervisor	Supervisor

Remuneration Paid to Supervisors

Under NT\$ 2,000,000		7RWDORI\$%&
	PHD	mpanies All Consolidated Co
	Ying-Nan Chuang	Ying-Nan Chuang
NT\$2,000,000 ~ NT\$5,000,000	Jing-Shin Chen, Chao-Wen Huang, Chien-Hung Chen, Guang Wei Inv. Co., Ltd. Cheng-Yang Lin	Jing-Shin Chen, Chao-Wen Huang, Chien-Hung Chen, Guang Wei Inv. Co., Ltd. Cheng-Yang Lin
NT\$5,000,000 ~ NT\$10,000,000	–	–
NT\$10,000,000 ~ NT\$15,000,000	–	–
NT\$15,000,000 ~ NT\$30,000,000	–	–
NT\$30,000,000 ~ NT\$50,000,000	–	–
NT\$50,000,000 ~ NT\$100,000,000	–	–
Over NT\$100,000,000	–	–
Total	6	6

III

Compensation Paid to President and Vice President

C
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	IURP \$I¿OLDWHV Compensation Subsidiaries Other than		240										% mount as me of Net Inco								% 2.52
(PSOR\HH6WRFN Options	All Consolidated Companies		–	mpanies									Total A
	PHD		–		Mu-Tsun Hou	Yi-Chun Su	Wen-Zhen Chiu	–	Ming-Fan Xie	–	–	– 4
\$%&DQG'DV % of Net Income	All Consolidated Companies		1.64%	All Consolidated Co									Total								56,314
	PHD		1.62%
	All Consolidated Companies	Stock	–	me of Supervisors									3UR¿W6KDULQJ -Cash								56,314
3UR¿W6KDULQJ'	PHD	Cash	29,389	Na
	All Consolidated Companies	Stock	–		Mu-Tsun Hou	Yi-Chun Su	Wen-Zhen Chiu	–	Ming-Fan Xie	–	–	– 4
	PHD	Cash	29,389	PHD									3UR¿W6KDULQJ -Stock								–
	All Consolidated Companies		508
Allowances (C)	PHD		508																								Wen
	All Consolidated Companies		–										me Na	Ming-Fan Xie	Wen-Zhen Chiu	Yi-Chun Su	Mu-Tsun Hou	Wu Jian-Ying	Xiao-Yu Chiang	Chun-Liang Lin	Chun-Cheng Kuo	Ying-Jie Chuang	Yun-Da Chuang	Da-Chang Tai	Xi-Fen Chang	Te-Ju Yen	Tsung-Liang	Wang Chen	Ya-Ting Xue
	PHD		–																									Keng-
	All Consolidated Companies		6,692	%UDFNHW
	PHD		6,452
	Name		Wen-Zhen Chi Ming-Fan Xie Mu-Tsun Hou Yi-Chun Su		Under NT\$ 2,000,000	NT\$2,000,000 ~ NT\$5,000,000	NT\$5,000,000 ~ NT\$10,000,000	NT\$10,000,000 ~ NT\$15,000,000	NT\$15,000,000 ~ NT\$30,000,000	NT\$30,000,000 ~ NT\$50,000,000	NT\$50,000,000 ~ NT\$100,000,000 Over NT\$100,000,000	Total	Title	President	Vice President	Vice President	Vice President	Assistant Vice President	Assistant Vice President	Assistant Vice President	Assistant Vice President	Assistant Vice President	Manager	Manager	Manager	Manager	Manager Assistant Assistant	Manager	Manager Junior
	Title		Vice President Vice President Vice President President

	Name of Supervisors
Bracket	PHD	All Consolidated Companies
Under NT\$ 2,000,000	Mu-Tsun Hou	Mu-Tsun Hou
NT\$2,000,000 < 000,000,000	Yi-Chun Su	Yi-Chun Su
000,000 $\frac{1}{2}$ 0.000,000,000,000,000,000,000,000,000,0	Wen-Zhen Chiu	Wen-Zhen Chiu
000´000´SISLN ~ 000´000´01\$LN
NT\$15,000,000,000,000,000	Ming-Fan Xie	Ming-Fan Xie
000,000,05\$HN ~ 000,000,05\$HN
000'000'001\$HN ~ 000'000'05\$HN	I
Over NT\$100,000,000
Total

Ying-Jie Chuang	Yun-Da Chuang	Da-Chang Tai	Xi-Fen Chang	Te-Ju Yen	Wen Tsung-Liang	Wang Chen Keng-	Ya-Ting Xue
Assistant Vice President	Manager	Manager	Manager	Manager	Manager Assistant	Manager Assistant	Manager Junior

III

&RPSDULVRQ RI5HPXQHUDWLRQ IRU'LUHFWRUV6XSHUYLVRUV3UHVLGHQWV DQG9LFH3UHVLGHQWVLQ WKH3DVW7ZR<HDUV DQG Remuneration Policy for Directors, Supervisors, Presidents and Vice Presidents

Unit: NT\$ thousands

muneration % of Net me Total Inco as Re	% 2.82	% 3.25	% 0.71	% 0.76	% 1.23	% 1.23
me Net Inco				2,398,718
muneration Total Re	67,569	77,840	16,996	18,300	29,427	29,467
muneration % of Net me Total Inco as Re	% 3.69	% 4.39	% 0.96	% 1.04	% 1.62	% 1.64
me Net Inco				2,237,800
muneration Total Re	82,499	98,340	21,575	23,330	36,350	36,590
Title	PHD	All Consolidated mpanies Co	PHD	All Consolidated mpanies Co	PHD	All Consolidated mpanies Co
		Director		Supervisor	President	Vice President

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Board meetings were held 5 times (A) during 2015. Attendances of directors and supervisors are as follows:

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Title	me Na	Attendance in 3HUVRQ%	Attendance 3UR[\	Attendance Rate >%\$@	Representative
Chairman	Joyful Inv. Co., Ltd.	5	0	% 100	Kao-Huei Cheng
Vice Chairman	Uni-President Enterprises. Corp.	5	0	% 100	Chih-Hsien Lo
Director	Kao Chyuan Inv. Co., Ltd.	4	1	% 80	Hsiu-Ling Kao
Director	Hung Yao Inv. Co., Ltd.	4	1	% 80	Shih-Hung Chuang
Director	Taipo Inv. Co., Ltd.	3	2	% 60	Wu Chien-Te
Director	Taipo Inv. Co., Ltd.	3	2	% 60	Wu Ping-Chih
Director	Young Yuan Inv. Co., Ltd.	5	0	% 100	Wu Chung-Ho
Director	Uni-President Enterprises. Corp.	5	0	% 100	Wu Tsung-Ping
Director	Chao-Mei Wu Tseng	4	1	% 80
Director	Po-Ming Hou	4	1	% 80
Director	Po-Yi Hou	5	0	% 100
Director	Ying-Chih Chuang	4	1	% 80
Independent Director	Chian Tai	5	0	% 100
Independent Director	Ruei-Ching Lin	5	0	% 100
Independent Director	Chi-Ming Chang	5	0	% 100
Supervisor	Guang Wei Inv. Co., Ltd.	4	0	% 80	Ying-Nan Chuang
Supervisor	Jing-Shin Chen	5	0	% 100
Supervisor	Wen Huang Chao-	5	0	% 100
Supervisor	Chien-Hung Chen	5	0	% 100
Supervisor	Cheng-Yang Lin	5	0	% 100

III

Other Mentionable Items:

1. If there are the circumstances referred to in Article 14-3 of Securities and Exchange Act and resolutions of the directors' meetings objected by LQGHSHQGHQW GLUHFWRUV RU VXEMHFW WR TXDOL¿HG RSLQLRQ DQG UHFRUGHG RU GHFODUHG LQ ZULWLQJ WKH GDWHV RI PHHWLQJV VHVVLRQV FRQWHQWV RI PRWLRQV DOO LQGHSHQGHQWV¶ RSLQLRQ DQG WKH FRPSDQ\¶V UHVSRQVH WR LQGHSHQGHQW GLUHFWRUV¶ RSLQLRQ VKRXOG EH VSHFL¿HG 1RQH
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1. Measures taken to strengthen the functionality of the board: The board of directors has established an audit committee and a compensation committee to assist the board in carrying out its various duties:
2. Questions and Motions of the 2nd Interim Meeting of the Fourteenth Term Board of Directors: The Company proposes to amend the Corporate Charter in 2016, in order to substitute Audit Committee for the supervisors.
Note: When directors' and supervisors' belong to juridical person shell be showed the company's name and representative.

Note:

(i) If director or supervisor resigned before end of year, company shall show date in note, and attendance rate (%) is attendant times of meeting in incumbent period.
(ii) If there is re-election of director and supervisor, company shall show former, new, reappointed member and date in note. Attendance rate (%) is attendant times of meeting in incumbent period.

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mentation Status mple I	Abstract Illustration	Responsibility Best-Practice Principles and the Ethical Corporate Management Best Practice, and disclose on the company's The board decided to establish the Corporate Social website on May 4, 2015.	The company has designated appropriate departments to handle shareholders' suggestions or disputes.	The Stock Transfer Agency is responsible for collecting the
	No
	Yes
	P (YDOXDWLRQ,WH	Does the company establish and disclose the Corporate Governance Best-Practice Principles based on "Corporate Governance Best-Practice WSE/TPEx Listed Companies"? Principles for T 1.	Does the company establish an internal operating procedure to deal with shareholders' suggestions, doubts, disputes and litigations, Shareholding structure & shareholders' rights and implement based on the procedure? (1) 2.	Does the company possess the list of its major (2)

shareholders as well as the ultimate owners of those shares?	updated information of the list of major shareholders and the ultimate owners of those shares.	None
Does the company establish and execute the risk management and firewall system within (3)	There are dedicated units responsible for operations of the FRPSDQ\¶V DI¿OLDWHV DQG WKH\ DUH FRQWUROOHG DQG DXGLWHG E\ WKH KHDG RI¿FH
Does the company establish internal rules against insiders trading with undisclosed its conglomerate structure? information? (4)	The company has established the internal rules to forbid insiders trading on undisclosed information. The company has also strongly advocated these rules in order to prevent any violations.
Composition and Responsibilities of the Board of Directors 3.
Does the Board develop and implement a diversified policy for the composition of its members? (1)	There are 15 directors including 3 independent directors in the board of directors.	None
Does the company voluntarily establish other functional committees in addition to (2)	The company has not established other functional committees in addition to the Remuneration Committee, but has formulated
the Remuneration Committee and the Audit	complete rules and procedures for each activity.
Committee?

III

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			P (YDOXDWLRQ,WH		Yes	No	Abstract Illustration	:6(73([/LVWHG *RYHUQDQFH%HVW3UDFWLFH &RPSDQLHV´DQG5HDVRQV 3ULQFLSOHVIRU7
	(3) (4)	measure the performance of the Board, and Does the company establish a standard to Does the company regularly evaluate the independence of CPAs? implement it annually?					The company has not established related measures. However the company's board of directors is devoted to corporate governance according to the principle of good faith, in order to ensure the Independence Assessment" on March 20, 2015. The Accounting The board of directors has approved "Financial Reports CPAs' Wu and Y.C. Lin of PwC in 2015, and the result is compliant with the company's independence evaluation criteria, in which Department of the company has evaluated the accountants C.H. they are proved to be competent CPAs. shareholders' rights.	None
	4.	channel and build a designated section on its issues they care for in terms of corporate social Does the company establish a communication website for stakeholders, as well as handle all the responsibilities?					communication channels for its stakeholders, build a designated section on its website, and provide contact information to all The company is dedicated to establish appropriate stakeholders.	None
	5.	Does the company appoint a professional shareholder service agency to deal with shareholder affairs?					The company designates President Securities Corp. to deal with shareholder affairs.	None
	(1) (2) 6.	to disclose both financial standings and the Does the company have a corporate website Does the company have other information disclosure channels (e.g. building an English website, appointing designated people to handle information collection and disclosure, creating a spokesman system, webcasting status of corporate governance? investor conferences)? Information Disclosure					The company has set up a website to disclose the company's its information, and also has established a spokesperson system The company has assigned specialists to collect and disclose Website: http://www.prince.com.tw according to the regulations. relevant information.	None
							mentation Status mple I	'HYLDWLRQVIURP³WKH&RUSRUDWH
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7.		Is there any other important information to			Yes	No	Employee rights: In addition to purchasing insurance and Abstract Illustration	&RPSDQLHV´DQG5HDVRQV 3ULQFLSOHVIRU7
		facilitate a better understanding of the company's corporate governance practices (e.g., including training records, the implementation of risk measures, the implementation of customer but not limited to employee rights, employee wellness, investor relations, supplier relations, rights of stakeholders, directors' and supervisors' management policies and risk evaluation relations policies, and purchasing insurance for directors and supervisors)?					appropriate communication channels for both employees and maintenance, repair, The Company has purchased D&O insurance for its directors and contributing pensions for employees, the Company has built Directors' and supervisors' continuing education: As the Consumer Protection Policy: The Company has established service center to process building community safety and cleaning service. following table. supervisors. employers.	None
8.		report on corporate governance or has it authorized any other professional organization to the opinion from the Board, the result of self or Has the company implemented a self-evaluation conduct such evaluation? If so, please describe authorized evaluation, the major deficiencies, suggestions, or improvements.					on corporate governance or authorized any other professional The company has not implemented a self-evaluation report organization to conduct such evaluation.	corporate governance according The company will implement a self-evaluation report on to the current situation of corporate governance.
		'LUHFWRUV¶DQG6XSHUYLVRUV¶&RQWLQXLQJ(GXFDWLRQ
	Title	me Na	med Date Assu	Period m Fro	To	2UJDQL]DWLRQ Sponsoring	Course	Remarks Conforming to Regulations Training hours
				10.23.2015	10.23.2015	Governance Association Taiwan Corporate	Discussion on Corporate Governance from the View of Board of Directors	Yes 3
	Chairman	Kao-Huei Cheng	6.18.2013	5.8.2015	5.8.2015	Governance Association Taiwan Corporate	Keep Up the Trend of Corporate Governance to Create Win-Win Opportunities	Yes 3
				4.24.2015	4.24.2015	Governance Association Taiwan Corporate	Securities Frauds, Information Dishonest and Assets Depletion Board of Directors' and Managers' Business Judgements V.S.	Yes 3
	Vice			10.23.2015	10.23.2015	Governance Association Taiwan Corporate	Discussion on Corporate Governance from the View of Board of Directors	Yes 3

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P (YDOXDWLRQ,WH	Yes	No	Abstract Illustration	:6(73([/LVWHG &RPSDQLHV´DQG5HDVRQV 3ULQFLSOHVIRU7
corporate governance practices (e.g., including training records, the implementation of risk Is there any other important information to facilitate a better understanding of the company's but not limited to employee rights, employee wellness, investor relations, supplier relations, rights of stakeholders, directors' and supervisors' management policies and risk evaluation measures, the implementation of customer relations policies, and purchasing insurance for directors and supervisors)? 7.			appropriate communication channels for both employees and maintenance, repair, The Company has purchased D&O insurance for its directors and Employee rights: In addition to purchasing insurance and contributing pensions for employees, the Company has built Directors' and supervisors' continuing education: As the Consumer Protection Policy: The Company has established service center to process building community safety and cleaning service. following table. supervisors. employers.	None
authorized any other professional organization to Has the company implemented a self-evaluation report on corporate governance or has it conduct such evaluation? If so, please describe 8.			on corporate governance or authorized any other professional The company has not implemented a self-evaluation report organization to conduct such evaluation.	corporate governance according The company will implement a self-evaluation report on to the current situation of

Title	me Na	med Assu	Period		Sponsoring	Course	Training	Conforming to
		Date	m Fro	To	2UJDQL]DWLRQ		hours	Regulations
			10.23.2015	10.23.2015	Governance Association Taiwan Corporate	Discussion on Corporate Governance from the View of Board of Directors	3	Yes

Chairman	Kao-Huei Cheng	6.18.2013	5.8.2015	5.8.2015	Taiwan Corporate	Keep Up the Trend of Corporate Governance to	3	Yes
					Governance Association	Create Win-Win Opportunities
			4.24.2015	4.24.2015	Taiwan Corporate	Board of Directors' and Managers' Business Judgements V.S.	3	Yes
					Governance Association	Securities Frauds, Information Dishonest and Assets Depletion
			10.23.2015	10.23.2015	Taiwan Corporate	Discussion on Corporate Governance from the	3	Yes
Vice	Chih-Hsien Lo	6.18.2013			Governance Association	View of Board of Directors
Chairman			4.24.2015	4.24.2015	Taiwan Corporate	Board of Directors' and Managers' Business Judgements V.S.	3	Yes
					Governance Association	Securities Frauds, Information Dishonest and Assets Depletion

'LUHFWRUV¶DQG6XSHUYLVRUV¶&RQWLQXLQJ(GXFDWLRQ

III

Title	me Na	med Assu		Period	Sponsoring	Course	Training	Conforming to
		Date	m Fro	To	2UJDQL]DWLRQ		hours	Regulations
			10.23.2015	10.23.2015	Governance Association Taiwan Corporate	Discussion on Corporate Governance from the View of Board of Directors	3	Yes
Director	Hsiu-Ling Kao	6.18.2013	4.24.2015	4.24.2015	Governance Association Taiwan Corporate	Securities Frauds, Information Dishonest and Assets Depletion Board of Directors' and Managers' Business Judgements V.S.	3	Yes
Director	Ping-Chih Wu	6.18.2013	11.6.2015	11.6.2015	Governance Association Taiwan Corporate	11th Corporate Governance International Summit Forum	3	Yes
Director	Chung-Ho Wu	6.18.2013	5.8.2015	5.8.2015	Governance Association Taiwan Corporate	Keep Up the Trend of Corporate Governance to Create Win-Win Opportunities	3	Yes
			10.23.2015	10.23.2015	Governance Association Taiwan Corporate	Discussion on Corporate Governance from the View of Board of Directors	3	Yes
Director	Po-Ming Hou	6.18.2013	5.8.2015	5.8.2015	Governance Association Taiwan Corporate	Keep Up the Trend of Corporate Governance to Create Win-Win Opportunities	3	Yes
Director	Po-Yi Hou	6.18.2013	5.8.2015	5.8.2015	Governance Association Taiwan Corporate	Keep Up the Trend of Corporate Governance to Create Win-Win Opportunities	3	Yes
Director	Shih-Hung Chuang	6.18.2013	1.22.2015	1.22.2015	Securities & Futures Institute	Corporate Social Responsibility Report–The Seminar on Sustainable Development	3	Yes
Director	Ying-Chih Chuang	6.18.2013	5.8.2015	5.8.2015	Governance Association Taiwan Corporate	Keep Up the Trend of Corporate Governance to Create Win-Win Opportunities	3	Yes
			10.23.2015	10.23.2015	Governance Association Taiwan Corporate	Discussion on Corporate Governance from the View of Board of Directors	3	Yes
Director	Tsung-Ping Wu	6.18.2013	7.23.2015	7.23.2015	Department of Accounting, National Cheng Kung University	Continuing Education of Accounting Managers	6	Yes
			4.24.2015	4.24.2015	Governance Association Taiwan Corporate	Securities Frauds, Information Dishonest and Assets Depletion Board of Directors' and Managers' Business Judgements V.S.	3	Yes
Independent Director	Chian Tai	6.18.2013	5.8.2015	5.8.2015	Governance Association Taiwan Corporate	Keep Up the Trend of Corporate Governance to Create Win-Win Opportunities	3	Yes
Supervisor	Chien-Hung Chen	6.18.2013	11.24.2015	11.24.2015	Governance Association Taiwan Corporate	The Skills on Detecting Financial Statement Frauds	3	Yes
			9.17.2015	9.17.2015	Governance Association Taiwan Corporate	The Shareholder Structure Management and the Reelection of Directors and Supervisors of Listed Companies	3	Yes
Supervisor	Ying-Nan Chuang	6.18.2013	5.8.2015	5.8.2015	Governance Association Taiwan Corporate	Keep Up the Trend of Corporate Governance to Create Win-Win Opportunities	3	Yes
Supervisor	Cheng-Yang Lin	6.18.2013	10.23.2015	10.23.2015	Governance Association Taiwan Corporate	Discussion on Corporate Governance from the View of Board of Directors	3	Yes
		6.18.2013	4.24.2015	4.24.2015	Governance Association Taiwan Corporate	Board of Directors' and Managers' Business Judgements V.S. Securities Frauds, Information Dishonest and Assets Depletion	3	Yes

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	)LYHRU0RUH <hduv¶([shulhqfhruehorz3urihvvlrqdo4xdol¿fdwlrqv< th="">					Independence Criteria							Remuneration Number of
Accounting or Corporate Business, Law, Finance, Business Related Fields Lecturer or above in	Examination in Corporate Qualification of Justice, Technician of National Business Related Fields Procurator, Attorney, CPA, Specialist or	Experience in Business, or Corporate Business Law, Finance, Related Fields Accounting,	1	2	3	4	5	6	7	8	9	10	Memberships Other Public Committee Companies Held in
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(2) Responsibility of Compensation Committee: a. Establish the regulations of compensation and performance for boards, supervisors and managers.

b. Evaluate the compensation of directors and supervisors regularly. Committee should refer to the industry payment and consider personal

performance, company's operations and future risk rather than seek the higher compensation.

(3) Operation of Compensation Committee:
a. Compensation committee was set up on Sep. 30, 2011.
b. Current committee is in the second term, which is from Aug. 12, 2013 to Jun. 17, 2016. The board of directors approved to assign 3 members on Aug. 12, 2013.
c. Committee meetings were held 5 times (A) during 2015. The attendance was as follows:

Title	me Na	\$WWHQGDQFHLQ3HUVRQ%	3UR[\$WWHQGDQFH	Attendance Rate >%\$@
Convener	Chian Tai	5	0	100%
Commissioner	Chi-Ming Chang	5	0	100%
Commissioner	Ruei-Ching Lin	5	0	100%

(1) Information of Compensation Committee:

III

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P (YDOXDWLRQ,WH	Yes	No	Abstract Illustration	:6(73([/LVWHG &RPSDQLHV´DQG5HDVRQV 3ULQFLSOHVIRU7
d e c l a r e i t s corporate social responsibility policy and examine the results of the mpany provide educational c o r p o r a t e s o c i a l e s t a b l i s h exclusively (or concurrently) dedicated managers authorized by the board to be in charge of proposing the corporate social responsibility policies mpany declare a reasonable muneration policy, and mance with its corporate well as establish an effective reward and mentation social responsibility policy, as responsibility on a regular basis? mployee perfor and reporting to the board? c o m p a n y mple c o m p a n y Corporate Governance I m? m disciplinary syste mentation? appraisal syste o n integrate the e D o e s t h e D o e s t h e Does the co Does the co t r a i n i n g salary re first-line mple i (1) (2) (3) (4) 1.			Corporate Social Responsibility Best-Practice Principles mpany carries out regular trainings sessions on corporate social responsibility according to Corporate mplete reward and mportant The board of directors decided to establish the Social Responsibility Best-Practice Principles of the & Strategy ment as dedicated unit, and authorized specialized institution to prepare the 2014 Corporate was published on mployee performance which includes the corporate social muneration mpensation most i mpany has designated the Planning criteria for evaluation. In addition, the re managers is confirmed by the Co responsibility policy as one of the which mpany has established a co m based on the e mpany and related regulations. Social Responsibility Report. m disciplinary syste mpany. appraisal syste October 2015. mmittee. of the co paid to Depart The co The co The co Co co	None

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P (YDOXDWLRQ,WH	Yes	No	Abstract Illustration	:6(73([/LVWHG &RPSDQLHV´DQG5HDVRQV 3ULQFLSOHVIRU7
mpany endeavor to utilize more efficiently and use which have low ment Sustainable Environment Develop mpact on the environment? materials all resources Does the co renewable i (1) 2.			waste of materials through precise control over project mpany selects appropriate materials on the basis of regulations to mpany has effectively decreased the duration. Furthermore, the co renewable raw building The co
mpany establish proper ms based on the characteristics of their ment syste manage mental Does the co industries? environ (2)			mount of green building mphasizes on environmental protection, which water-saving, or NT\$ 74 materials mpany purchased in 2014 is reduce exploitation of natural resources. treasures resources, and purchases the materials, energy conservation. The a are tagged green building materials the co mpany e The co	None
			mpany requires the ment plans to ensure waste pollution situations million. Before constructions, the co manage water and can be effectively controlled. mit site that the air, noise, contractors to sub
mpact mate change on its operations and conduct greenhouse gas inspections, monitor the i mpany Does the co of cli (3)			manage the mate change on the operations, conduct greenhouse gas inspections mpact of cli mpany continually dedicates to construction sites, monitor the i The co
mpany strategies for energy conservation and carbon as well as establish co reduction?			and disclose the information. In 2014, there are 1,580.8 m 13 construction DQG RI¿FH DUHD missions fro P WKH DQG WRQV IUR tons of greenhouse gas e m BOT projects. SURMHFWV tons fro
f o r m u l a t e ment policies and procedures according to relevant regulations and the International Bill of c o m p a n y manage Welfare Human Rights? Preserving Public appropriate D o e s t h e (1) 3.			mployee rights through welfare to protect the mpany respects to e ms and mployees' legal rights. appropriate syste The co e	None
mployee m to with appropriate mechanis mpany set up an e hotline or grievance mplaints Has the co handle co solutions? (2)			mployee hotlines to express their grievances, and the dedicated mpany can use the e ms. unit will appropriately solve the proble mployees of the co All e

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	Yes	No	Abstract Illustration	:6(73([/LVWHG &RPSDQLHV´DQG5HDVRQV 3ULQFLSOHVIRU7
mpany provide a healthy ment and organize training on health and safety working environ Does the co and safe (3)			mpany respects to labor safety and health through requiring that all construction site personnel receive trainings on health and safety. The co
a w i t h well s e t u p mployees on a regular basis? mployees on a regular basis, as c h a n n e l c o m p a n y c o m m u n i c a t i o n D o e s t h e for its e e (4)			mmediate PSRUWDQW SROLFLHV DQG DQ\ LQIRUPDWLRQ website for i mpany has setup an EIP QRWL¿FDWLRQ RQ L The co
mployees of any significant changes in operations that m? mpact on the as reasonably inform e may have an i
p r o v i d e i t s ment with career develop c o m p a n y mployees D o e s t h e e (5)			mpany has provides appropriate internal education training courses, and encourages all The co
mpany establish any and training sessions? Does the co (6)			mail or mpany's website, e- mployees to has continuing education. mers can use the co The custo e	None
ms and appealing procedures regarding ment, purchasing, mechanis producing, operating and service? mer protection research develop consu			telephone to express their suggestions or grievances.
mpany advertise and label its goods and services according to relevant regulations and international Does the co standards? (7)			marketing activities and after-sales services of the mpany policies are according to relevant regulations. The co
mpany evaluate the records mpact on the environment and society before taking on business of suppliers' i partnerships? Does the co (8)			mpany is responsible for appropriate evaluation of the suppliers ment of the co Depart on business partnerships. The Cost Control

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	mpany provide a healthy ment and organize training on health and safety working environ Does the co and safe (3)			mpany respects to labor safety and health through requiring that all construction site personnel receive trainings on health and safety. The co	&RPSDQLHV´DQG5HDVRQV
Prince Housing & Development Corp.	a w i t h s e t u p mployees on a regular basis? c h a n n e l c o m p a n y c o m m u n i c a t i o n D o e s t h e for its e (4)			mmediate PSRUWDQW SROLFLHV DQG DQ\ LQIRUPDWLRQ website for i mpany has setup an EIP QRWL¿FDWLRQ RQ L The co
	well mployees of any significant changes in operations that mployees on a regular basis, as m? mpact on the as reasonably inform e may have an i e
	p r o v i d e i t s ment with career develop c o m p a n y and training sessions? mployees D o e s t h e e (5)			mpany has provides appropriate internal education training courses, and encourages all mployees to has continuing education. The co e
	mpany establish any ms and appealing procedures regarding mechanis mer protection Does the co consu (6)			mail or telephone to express their suggestions or grievances. mpany's website, e- mers can use the co The custo	None
	its goods and services according to ment, purchasing, mpany advertise and label relevant regulations and international producing, operating and service? research develop Does the co (7)			marketing activities and after-sales services of the mpany policies are according to relevant regulations. The co
	mpany evaluate the records mpact on the environment and society before taking on business of suppliers' i partnerships? Does the co standards? (8)			mpany is responsible for appropriate evaluation of the suppliers ment of the co Depart on business partnerships. The Cost Control
				mentation Status mple I	'HYLDWLRQVIURP³WKH&RUSRUDWH
	P (YDOXDWLRQ,WH	Yes	No	Abstract Illustration	6RFLDO5HVSRQVLELOLW\%HVW3UDFWLFH :6(73([/LVWHG &RPSDQLHV´DQG5HDVRQV 3ULQFLSOHVIRU7
	me into mpany major suppliers include force once the suppliers breach the corporate social responsibility policy mpact on the Do the contracts between the co which co environment and society? and cause appreciable i mination clauses and its ter (9)			major suppliers are all confirmed by the legal counsel. The ment mpact on the environ mpany and the caused by the purchase activities. The contracts between the co mpany evaluation the i co	None
	mpany disclose relevant mation regarding its corporate social responsibility on its Market Observation Post Enhancing Information Disclosure and reliable infor Does Does the co MOPS)? website and the m ( Syste 4.			spokesperson and two deputy spokespeople. In addition, mation disclosure Governance Best-Practice mpanies". The mpany has established the internet declaration which includes one RI WKH DQG RSHUDWLRQV WSE/TPEx Listed Co mpany is disclosed on our website. m, mpany enhances infor ¿QDQFH m and spokesperson syste according to "the Corporate WKH LQIRUPDWLRQ UHJDUGLQJ Principles for T The co syste co co	None
	m "the Corporate Social Responsibility Best-Practice Principles for T WSE/TPEx Listed Co deviation fro If the Co for T 5.			mpany has established the corporate social responsibility principles based on "the Corporate Social Responsibility Best-Practice Principles Strategy Department as dedicated unit, and authorized specialized institution to prepare the 2014 Corporate Social Responsibility Report. There is no mentation: The board of directors decided to establish the Corporate Social Responsibility Best-Practice Principles of the co mpanies". mple WSE/TPEx Listed Co mpanies", please describe any discrepancy between the Principles and their i	& mpany, designated the Planning
Annual Report 2015	PSRUWDQW LQIRUPDWLRQ WR IDFLOLWDWH EHWWHU XQGHUVWDQGLQJ RI WKH FR activities and making related donations. mpany cares for the earth and The co 2WKHU L	works hard to pro		mote ecological sustainability through designing green buildings, supporting related green PSDQ\¶V FRUSRUDWH VRFLDO UHVSRQVLELOLW\ SUDFWLFHV
	mpany has designated the Planning Corporate Social Responsibility Report. PHQW VKDOO EH \$ FOHDU VWDWH The co			& Strategy Department as dedicated unit, and authorized specialized institution to prepare the 2014 ZHUH YHUL¿HG E\ H[WHUQDO FHUWL¿FDWLRQ LQVWLWXWLRQV PDGH EHORZ LI WKH FRUSRUDWH VRFLDO UHVSRQVLELOLW\ UHSRUWV

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			mentation Status mple I	'HYLDWLRQVIURP³WKH(WKLFDO
P (YDOXDWLRQ,WH	Yes	No	Abstract Illustration	73([/LVWHG&RPSDQLHV´DQG :6( &RUSRUDWH0DQDJHPHQW%HVW 3UDFWLFH3ULQFLSOHVIRU7 Reasons
Establishment of ethical corporate management Does the company declare its ethical procedures in its guidelines and external documents, as well as the commitment ment policies and from its board to implement the policies? manage policies and programs corporate (1) 1.			The board of directors of the company has approved to Management Best-Practice Management Operation Procedures and Guidelines on May 4, 2015. Principles, Ethical Corporate establish the Ethical Corporate
prevent unethical conduct with clear for violation, rules of appeal, and the Does the company establish policies to statements regarding relevant procedures, ment guidelines of conduct, punish (2)			The company has established the operation procedures and Practice Principles, and implemented punishment for violation Management Best guidelines based on the Ethical Corporate and rules of appeal.	None
precautions against high-potential unethical conducts or listed activities stated in Article 2, Paragraph 7 of the Ethical Corporate Management Best-Practice Principles for Does the company establish appropriate commitment to implement the policies? WSE/TPEx Listed Companies? T (3)			The company has established effective accounting and internal control systems against high-potential unethical operating activities.
Does the company evaluate business partners' ethical records and include ethics related clauses in business contracts? 2 )XO¿OO RSHUDWLRQV LQWHJULW\ SROLF\ (1)			The company includes ethics-related clauses in business contracts of each business partner.
Does the company establish an exclusively (or concurrently) dedicated unit supervised by the Board to be in charge of corporate integrity? (2)			management promotion team supervised by the Board. The company's management promotion team supervises each department's implementation of integrity management based on the Ethical Corporate Management Best-Practice Principles The company has established the integrity of the company and related regulations. integrity	None

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mentation Status mple I	Abstract Illustration	interest, in order to identify, monitor, and manage the risks of activities, which providing appropriate communication 7KH FRPSDQ\ KDV HVWDEOLVKHG SROLFLHV WR SUHYHQW FRQÀLFWV RI XQHWKLFDO FRQGXFWV FDXVHG E\ FRQÀLFWV RI LQWHUHVW ,Q DGGLWLRQ 2I¿FH UHJXODUO\ H[DPLQHV DQG HYDOXDWHV RSHUDWLQJ \$XGLW channels. WKH	The company has established effective systems for accounting, internal control, and risk management, and the Audit Office regularly examines the implementation situation.	The company reviews the audit's reports and the results completed by each department annually, and reports to board of directors and supervisors.	According to Article 21 of the company's Ethical Corporate Management Operation Procedures and Guidelines, there	is confidential integrity hotline set up on the company's website. The specially-assigned person of Audit Office is responsible for the integrity hotline and e-mail, dealing with	the accusations or suggestions provided by the employees, suppliers and customers, and protecting the whistleblowers The integrity hotline and e-mail of the company are listed EDVHG RQ FRQ¿GHQWLDO UHWRUWLQJ V\VWHPV	@exchange.prince.com.tw Tel: (06)282-1155 #5100 E-mail: 0507031 below.
	No
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	P (YDOXDWLRQ,WH	prevent conflicts of interest and provide Does the company establish policies to appropriate communication channels, and implement it? (3)	Has the company established effective systems for both accounting and internal control to facilitate ethical corporate management, and are they audited by either internal auditors or CPAs on a regular basis? (4)	Does the company regularly hold internal and external educational trainings on operational integrity? (5)	m and an integrity Does the company establish both a reward/ Operation of the integrity channel punishment syste (1) 3.	hotline? Can the accused be reached by an Does the company establish standard appropriate person for follow-up? (2)	operating procedures for confidential mpany provide proper reporting on investigating accusation cases? whistleblower protection? D oes the co (3)

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	P (YDOXDWLRQ,WH	Yes	No	Abstract Illustration	73([/LVWHG&RPSDQLHV´DQG :6( &RUSRUDWH0DQDJHPHQW%HVW 3UDFWLFH3ULQFLSOHVIRU7 Reasons
(1) 4.	Does the company disclose its ethical ment policies and the results of its implementation on the Strengthening information disclosure company's website and MOPS? manage corporate			The information regarding finance, operation, and corporate governance of the company is disclosed to the shareholders and stakeholders on our website.	None
T 5. 6.	will conduct the procedures gradually according to the principles. There have been no differences. mportant information to facilitate a better understanding of the co The board of directors has approved the Ethical Corporate mpany has established the ethical corporate WSE/TPEx Listed Co If the co Other i		manage	mpany on Manage mentation. ment policies based on the Ethical Corporate mpany's ethical corporate manage ment Best-Practice Principles of the co mple mpanies, please describe any discrepancy between the policies and their i Manage	ment Best-Practice Principles for mpany ment policies (e.g., Review and amend its May 4, 2015, and the co
	policies). None.
	mpany's website (http://www.prince.co XLGHOLQHVDQG RYHUQDQFH Please refer to the co &RUSRUDWH		5HJXODWLRQV	m.tw/mops/web/index) MOPS (http://mops.twse.co m.tw), or
	directors' and supervisors' terms expire, for the purpose of substituting Audit Co The board of directors decided to establish the Co and Guidelines) in 2015. In the same year, the te Practice Principles and Ethical Corporate PDWLRQ PSRUWDQW,QIRU 2WKHU,	5HJDUGLQJ&RUSRUDWH Manage		mmittee in 2011, and approved the Corporate Social Responsibility Best meeting prepared to amend the articles of incorporation in 2016 while the 14th Manage ment Best-Practice Principles (including Ethical Corporate mmittee for supervisors. *RYHUQDQFH mpensation Co mporary board	ment Operation Procedures
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		Prince		ment Corporation Declaration of Internal Control Housing and Develop
					March 23, 2016
	1.			We understand it is the responsibility of the company's management to have internal control system established, enforced, and maintained. The company LQWHUQDO FRQWURO V\VWHP HVWDEOLVKHG WR SURYLGH D UHDVRQDEOH DVVXUDQFH IRU WKH UHDOL]DWLRQ RI RSHUDWLQJ HIIHFW DQG HI¿FLHQF\LQFOXGLQJ SUR¿WV SHUIRUPDQFH DQG The internal control system in 2015 is with the following declarations made in accordance with self-inspection conducted: DVVHWV VDIHW\? WKH UHOLDELOLW\ WLPHOLQHVV DQG WUDQVSDUHQF\ RI ¿QDQFLDO UHSRUW DQG WKH REHGLHQFH RI UHOHYDQW UHJXODWLRQV
	2.			realization of the aforementioned three objectives. Due to the change of environment and condition, the effectiveness of an international control system could Internal control system is designed with limitations; therefore, no matter how perfect it is designed, an effective internal control system is to ensure the
	identifying any nonconformity.			change at any time. Our internal control system is designed with self-monitoring mechanism; therefore, we are able to have corrective actions initiated upon
	3.			We have based on the internal control criteria of "Governing Rules for handling international; control system by public offering companies" (referred to as
	*RYHUQLQJ ³WKH			1. Environment control, 2. Risk analysis, 3. Control process, 4.Information and communication, and 5. Supervision. Each element is subdivided into several 5XOHV´ KHUHLQDIWHU? WR GHWHUPLQH WKH HIIHFWLYHQHVV RI LQWHUQDO FRQWURO GHVLJQ DQG HQIRUFHPHQW	7KH LQWHUQDO FRQWURO GLYLGHG LQWR ¿YH HOHPHQWV
	items. Please refer to the "Governing Rules" for the details of the said items. 4. 5.			We believe that our audits provide a reasonable basis for our opinion. On December 31, 2012, those standards require that we plan and perform the audit We have based on the aforementioned internal control criteria to inspect the effectiveness of internal control design and enforcement.
				to obtain reasonable assurance about whether the internal control system (including the supervision and management over the subsidiaries) including WKH IXO¿OOPHQW RI EXVLQHVV SHUIRUPDQFH DQG HI¿FLHQF\ WKH UHOLDELOLW\ WLPHOLQHVV DQG WUDQVSDUHQF\ RI ¿QDQFLDO VWDWHPHQWV DQG WKH REHGLHQFH RI JRYHUQLQJ
	aforementioned objectives.			regulations, and the design and enforcement of internal control system is free of material misstatement and is able to ensure the realization of the
	6.			The Declaration of Internal Control is the content of our annual report and prospectus for the information of the public. For any forgery and concealment of the aforementioned information to the public, we will be held responsible by law in accordance with Securities Transaction Regulation No. 20, No.32,
	No.171, and No.174. 7.			We hereby declared the Declaration of Internal Control was approved by Board of Directors on March 23, 2016 unanimously by the directors at the meeting. Prince Housing and Develop	ment Corporation

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Prince Housing and Development Corporation Declaration of Internal Control

March 23, 2016

1. We understand it is the responsibility of the company's management to have internal control system established, enforced, and maintained. The company LQWHUQDO FRQWURO V\VWHP HVWDEOLVKHG WR SURYLGH D UHDVRQDEOH DVVXUDQFH IRU WKH UHDOL]DWLRQ RI RSHUDWLQJ HIIHFW DQG HI¿FLHQF\LQFOXGLQJ SUR¿WV SHUIRUPDQFH DQG DVVHWV VDIHW\? WKH UHOLDELOLW\ WLPHOLQHVV DQG WUDQVSDUHQF\ RI ¿QDQFLDO UHSRUW DQG WKH REHGLHQFH RI UHOHYDQW UHJXODWLRQV
1. Internal control system is designed with limitations; therefore, no matter how perfect it is designed, an effective internal control system is to ensure the realization of the aforementioned three objectives. Due to the change of environment and condition, the effectiveness of an international control system could change at any time. Our internal control system is designed with self-monitoring mechanism; therefore, we are able to have corrective actions initiated upon identifying any nonconformity.
1. We have based on the internal control criteria of "Governing Rules for handling international; control system by public offering companies" (referred to as ³WKH *RYHUQLQJ 5XOHV´ KHUHLQDIWHU? WR GHWHUPLQH WKH HIIHFWLYHQHVV RI LQWHUQDO FRQWURO GHVLJQ DQG HQIRUFHPHQW 7KH LQWHUQDO FRQWURO GLYLGHG LQWR ¿YH HOHPHQWV

0LQJ)DQ;LH PDQ.DR+XHL&KHQJ3UHVLGHQW &KDLU
ment Corporation Prince Housing and Develop
We hereby declared the Declaration of Internal Control was approved by Board of Directors on March 23, 2016 unanimously by the directors at the meeting. 7.
No.171, and No.174.
of the aforementioned information to the public, we will be held responsible by law in accordance with Securities Transaction Regulation No. 20, No.32,
The Declaration of Internal Control is the content of our annual report and prospectus for the information of the public. For any forgery and concealment 6.
aforementioned objectives.
regulations, and the design and enforcement of internal control system is free of material misstatement and is able to ensure the realization of the
WKH IXO¿OOPHQW RI EXVLQHVV SHUIRUPDQFH DQG HI¿FLHQF\ WKH UHOLDELOLW\ WLPHOLQHVV DQG WUDQVSDUHQF\ RI ¿QDQFLDO VWDWHPHQWV DQG WKH REHGLHQFH RI JRYHUQLQJ
to obtain reasonable assurance about whether the internal control system (including the supervision and management over the subsidiaries) including
We believe that our audits provide a reasonable basis for our opinion. On December 31, 2012, those standards require that we plan and perform the audit 5.
We have based on the aforementioned internal control criteria to inspect the effectiveness of internal control design and enforcement. 4.
items. Please refer to the "Governing Rules" for the details of the said items.
1. Environment control, 2. Risk analysis, 3. Control process, 4.Information and communication, and 5. Supervision. Each element is subdivided into several

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7KHSXQLVKPHQWGHOLYHUHGWRWKHFRPSDQ\DQGWKHVWDIIRIWKHFRPSDQ\RUWKHSXQLVKPHQWGHOLYHUHGE\WKHFRPSDQ\ to the staff for a violation of internal control system, the major nonconformity, and the corrective action in the most UHFHQW\HDUVDQGXSWRWKHGDWHRIWKHDQQXDOUHSRUWSULQWHGNone.
0DMRU5HVROXWLRQVRI6KDUHKROGHUV¶0HHWLQJDQG%RDUG0HHWLQJVLQWKH0RVW5HFHQW<HDUVDQGXSWRWKH'DWHRIWKH \$QQXDO5HSRUW3ULQWHG
0DMRU5HVROXWLRQDQG([HFXWLRQVRIWKH5HVROXWLRQRI*HQHUDO6KDUHKROGHUV0HHWLQJ
\$FFHSWHG WKH EXVLQHVV UHSRUWV DQG ¿QDQFLDO VWDWHPHQWV IRU \HDU ,Q DFFRUGDQFH ZLWK WKH FRPSDQ\ ODZ DOO UHODWHG ¿QDQFLDO LQIRUPDWLRQ has been submitted to the government agency to review.
(2) Approved the distribution of retained earnings for year 2014. The available retained earnings for distribution in 2014 were NT\$ 2,615 million. The distribution of cash dividend was NT\$0.8 per share. Cash dividend was distributed on Aug. 28, 2015.
(3) Approved the amendments to parts of Articles of Incorporation: Effective on the resolutions at general shareholders meeting, and the
company has completed the changes registration to the Ministry of Economic Affairs within 15 days according to the regulations. (4) Approved the establishment of Corporate Social Responsibility Best-Practice Principles, Ethical Corporate Management Best-Practice Principles, and Ethical Corporate Management Operation Procedures and Guidelines: Effective on the resolutions at general shareholders meeting.
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(1) Approved the declaration of internal control for year 2014.
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(3) Approved the earning distribution for year 2014.
(4) Approved the evaluation of the CPAs' independence.
(5) Approved to reassign the director representative of the company's subsidiary (President Energy Development (Cayman Islands) Ltd.).
(6) Approved the amendment to the company's Articles of Incorporation.
(7) Approved to hold the 2015 general shareholders meeting.

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(2) Approved to merge a 100% hold subsidiary, Prince Ta-Chen Investments Corp.
(3) Approved to revise the company's Corporate Social Responsibility Best-Practice Principles, Ethical Corporate Management Best-Practice Principles, and Ethical Corporate Management Operation Procedures and Guidelines.

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Approved the cash dividend record date (August 4, 2015) and the cash dividend payment date (August 28, 2015).

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(2) Approved the capital reduction and cancellation of the treasury stocks.
(3) Approved to purchase the land from the company's subsidiary, Jin Yi Xing Plywood Co., Ltd.
(4) Approved the split-off of the company's subsidiary, Jin Yi Xing Plywood Co., Ltd.
(5) Approved to change the location of the company. (6) Approved the appointment of Mu-Tsun Hou as the company's Vice President, which was effective on Sep. 1, 2015.
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(2) Approved the audit plan for year 2016.
(3) Approved the revises of the company's internal control policy.
(4) Approved the capital reduction and cancellation of the treasury stocks.
(5) Approved the Plan for Improving the Company's Own Financial Reporting Skill.
(6) Approved the Application to Trading Halts and Resumption Operation Procedures.
(7) Approved the revises of the Executive Compensation Management Approach.

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(2) Approved the declaration of internal control for year 2015.
(3) Accepted the large contribution for year 2015, and the Tainan earthquake donation.
(4) Approved the distribution of retained earnings for year 2015. The available retained earnings for distribution in 2015 were NT\$ 3,285 million. The distribution of cash dividend will be NT\$1.1 per share.
(5) Approved the amendment to the company's Articles of Incorporation.

III

(6) Approved the amendment the company's Acquisition or Disposal of Assets Operation Procedures, Endorsements and Guarantees Implementation Measures, Loans to Others Operation Procedures, Rules of Regular Shareholders Meeting, Procedures for Board Meeting, Process for the Board of Directions Election, Organizational Rules of Compensation Committee, Corporate Social Responsibility Best-Practice Principles, Ethical Corporate Management Best-Practice Principles, Ethical Corporate Management Operation Procedures and Guidelines, Rules of the Independent Directors' Responsibility, Organizational Rules of Audit Committee, and Ethical Behavior Principles.
(7) Approved the cooperation of constructions between the company and its subsidiary, Prince Real Estate Co., Ltd.
- (8) Approved to hold the 2016 general shareholders meeting.
7KH'LUHFWRUV RU6XSHUYLVRUVZKRKDYH2EMHFWHG WR WKH5HVROXWLRQV5HDFKHGE\ WKH%RDUG RI'LUHFWRUV DQG WKH 2EMHFWLRQVDUH5HFRUGHGRU'HFODUHGLQ:ULWLQJLQWKH0RVW5HFHQW<HDUDQGXSWR'DWHRIWKH\$QQXDO5HSRUW3ULQWHG None.
5HVLJQDWLRQRU'LVPLVVDORIWKH&RPSDQ\¶V.H\,QGLYLGXDOV,QFOXGLQJWKH&KDLUPDQ&(2DQG+HDGVRI\$FFRXQWLQJ )LQDQFH,QWHUQDO\$XGLWDQG5 'LQWKH0RVW5HFHQW<HDUDQGXSWR'DWHRIWKH\$QQXDO5HSRUW3ULQWHGNone.

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7KH QRQDXGLWLQJ IHHV SDLG WR &3\$V &3\$ ¿UP DQG WKH &3\$ IRUP¶V UHODWHG SDUW\ DFFRXQWHG IRU RYHU D TXDUWHU RI WKH WRWDO DXGLWLQJ IHHV WKH auditing amount and non-auditing amount; also, the non-auditing service must be disclosed:

P &3\$¿U	Na	me	Auditing period	Note
WC P	Yi-Chang Lin	Wu Chien-Chih	2015

(2) If the auditing fee paid in the year retaining service from another CPA Firms is less than the auditing fee paid in the year before, the amount of auditing fee before and after the change of CPA Firm and the reasons for the said change must be disclosed: None
(3) If the auditing fee paid in the year retaining service from another CPA Firms is over 15% less than the auditing fee paid in the year before, the amount and ratio of auditing fee reduced and the reasons for the said change must be disclosed: None

	Unit: NT\$ thousands

Audit Fees
Non- Range of Audit fees and

	m Ite Range of Audit Fees	Audit Fees	Non-Audit Fees	Total
1	Under NT\$2,000	-	-	-
2	NT\$2,000~ NT\$3,999	-	-	-
	NT\$4,000~ NT\$5,999	5,511	5,769	11,307
	NT\$6,000~ NT\$7,999	-	-	-
	NT\$8,000~ NT\$9,999	-	-	-
	Over NT\$10,000	-	-	-

Infor	mation of Audit Fees								Unit: NT\$ thousands
CPA		Audit			Non-Audit Fees
P ¿U	CPA	Fees	System Design	Industrial and Commercial Registration	Resource Human	Other	Total	m Ter	mark Re

Transfer Pricing Reports: NT\$765 thousand CSR Reports: NT\$1,201 thousand	Translation of Financial Reports: NT\$980 thousand Others: NT\$195 thousand
2015
5,796
3,141
0
266
2,389
5,511
Yi-Chang Lin	Chien-Chih Wu
WC P

III

Major Shareholders




Managers and










Changes in Shareholding of Directors, Supervisors,

		2015			As of Apr. 20, 2016
Title	Name	(Decrease) Holding Increase	Decrease Holding Increase Pledged	(Decrease) Increase Holding	Decrease Holding Increase Pledged
Chairman	Ed Joyful Investment Co.
Chairman	Ltd., Rep: Kao-Huei Cheng Joyful Investment Co.	$\blacksquare$	$\blacksquare$	$\blacksquare$
Vice Chairman	Uni-President Enterprises Corp. (Note 1)	ı	$\mathbf{I}$	ı
Vice Chairman	ises Corp., Rep: Chih-Hsien Lo Uni-President Enterpri		ı
Director	$\Xi$ Kao Chyuan Inv. Co.,	1,800,000	$\mathbf{I}$	1,200,000
Director	Ltd., Rep: Hsiu-Ling Kao Kao Chyuan Inv. Co.,		ı	ī
Director	Hung Yao Inv. Co., Lto		$\mathbf{I}$
Director	Hung Yao Inv. Co., Ltd., Rep: Shih-Hung Chuang		$\mathbf{I}$	1,035,000
Director	Цd Taipo Investment Co.	4,962,000	Ĭ.	7,376,000
Director	Ltd., Rep: Chien-Te Wu Taipo Investment Co.	1,969,654
Director	Ltd., Rep: Ping-Chih Wu Taipo Investment Co.	622,000	ï	106,000
Director	Ltd. Young Yuan Inv. Co.,
Director	Ltd., Rep: Chung-Ho Wu Young Yuan Inv. $Co1$ .		ı	ı
Director	Uni-President Enterprises Corp., Rep: Tsung-Ping Wu			ı
Director	Chao-Mei Wu Tseng	(197,308)

Changes in Shareholding of Directors, Supervisors, Taipo Investment Co. Ltd. Young Yuan Inv. Co., Ltd. Hung Yao Inv. Co., Ltd. SULQWLQJRIWKHDQQXDOUHSRUW Mei Chao- Vice Chairman Vice Chairman Title Chairman Chairman Director Director Director Director Director Director Director Director Director Director Director	Wu Uni-President Enterprises Corp., Rep: Chih-Hsien Lo Managers and Uni-President Enterprises Corp., Rep: Tsung-Ping Joyful Investment Co. Ltd., Rep: Kao-Huei Cheng Hung Yao Inv. Co., Ltd., Rep: Shih-Hung Chuang Kao Chyuan Inv. Co., Ltd., Rep: Hsiu-Ling Kao Wu Wu Wu Young Yuan Inv. Co., Ltd., Rep: Chung-Ho Taipo Investment Co. Ltd., Rep: Ping-Chih Taipo Investment Co. Ltd., Rep: Chien-Te Uni-President Enterprises Corp. (Note 1) me Na Joyful Investment Co. Ltd. Kao Chyuan Inv. Co., Ltd. Wu Tseng	- - - - 1,800,000 - - - 4,962,000 1,969,654 622,000 - - - (197,308) Major Shareholders (Decrease) Holding Holding Increase	- - - - - - - - - - - - - - - (Decrease) Pledged Holding Increase	- - - - 1,200,000 - - 1,035,000 7,376,000 - 106,000 - - - - (Decrease) Holding Increase	(Decrease) Increase Pledged Holding \$VRI\$SU


















Title	me Na	(Decrease) Increase	(Decrease) Pledged Holding Increase	(Decrease) Holding Increase	(Decrease) Increase Pledged Holding
Ming Hou Po- Director		-	-	-
Po-Yi Hou Director		-	-	-
Ying-Chih Chuang Director		(400,000)	-	(300,000)
Ruei-Ching Lin Chian Tai Independent Director Independent Director		-	-	-
Ming Chang Chi- Independent Director		- -	- -	- -
Guang Supervisor	Wei Inv. Co., Ltd.	-	-	-
Guang Supervisor	Wei Inv. Co., Ltd., Rep: Ying-Nan Chuang	(400,000)	(350,000)	(400,000)
Jing-Shin Chen Supervisor		-	-	-
Wen Huang Chao- Supervisor		-	-	-
Chien-Hung Chen Supervisor		-	-	-
Ming-Fan Xie President		-	-	-
Yi-Chun Su Vice President		-	-	-
Wen-Zhen Chiu Vice President		-	-	-
Mu-Tsun Hou Vice President		-	-	-
Wu Jian-Ying Assistant Vice President		-	-	-
Xiao-Yu Chiang Assistant Vice President		-	-	(180,000)
Chun-Cheng Kuo Chun-Liang Lin Assistant Vice President Assistant Vice President		- -	- -	- -
Ying-Jie Chuang Assistant Vice President		400,000	-	400,000
Yun-Da Chuang Manager		-	-	-
Da-Chang Tai Manager		-	-	-
Xi-Fen Chang Manager		-	-	-
Te-Ju Yen Manager		-	-	-

,IWKH&KDLUPDQ3UHVLGHQWDQG)LQDQFLDORU\$FFRXQWLQJ0DQDJHURIWKH&RPSDQ\ZKRKDG:RUNHGIRUWKH,QGHSHQGHQW Auditor or the Related Party in the Most Recent Year, the Name, Title, and Term with the Independent Auditor or the 5HODWHG3DUW\PXVWEH'LVFORVHGNone
(TXLW\ WUDQVIHUUHG DQG HTXLW\ SOHGJHG RU FKDQJHV WKHUHWR? E\ 'LUHFWRUV 6XSHUYLVRUV 'HSDUWPHQW+HDGV DQG 6KDUHKROGHUVRI6KDUHKROGLQJRU0RUHGXULQJWKHSUHFHGLQJ¿VFDO\HDURULQWKHFXUUHQW¿VFDO\HDUXSWRWKHGDWHRI SULQWLQJRIWKHDQQXDOUHSRUW

Note1: Shareholders with a stake of 10 percent or more, the recipient's name shall be disclosed along with a note explaining.

1RWH :KHUH WKH UHFLSLHQW RI WKH HTXLW\ WUDQVIHU RU HTXLW\ SOHGJH KDV WLHV WR WKH FRPSDQ\ LW KDV WR ¿OO LQ WKH IROORZLQJ WDEXODWLRQ

Note3: Other directors, supervisors, managers and major shareholders have no change in equity.

III

Shares Trading with Related Parties

Transaction Price (NTD)
Shares	400,000	500,000	100,000	400,000	300,000	300,000	98,654	98,654	400,000	300,000	300,000	100,000	500,000	400,000
Directors, Supervisors, Managers and Major Relationship between Transferee and Shareholders	Child of Director	Child of Director	Child of Director	Child of legal representative of Supervisor	Child of legal representative of Supervisor	Child of legal representative of Supervisor	Child of Director	Child of Director	Child of legal representative of Supervisor	Child of legal representative of Supervisor	Ming-Hsuan Chuang Child of legal representative of Supervisor	Child of Director	Child of Director	Child of Director
Transferee	Chih-Chin Chuang	Ting-Ya Chuang	Chih-Chin Chuang	Yun-Ta Chuang	Yu-Hsuan Chuang	Ming-Hsuan Chuang	Chien-Te Wu	Wei-Te Wu	Yun-Ta Chuang	Yu-Hsuan Chuang		Chih-Chin Chuang	Ting-Ya Chuang	Chih-Chin Chuang
Transaction Date of	3.13.2015	3.13.2015	3.13.2015	3.13.2015	3.13.2015	3.13.2015	6.23.2015	6.23.2015	3.23.2016	3.23.2016	3.23.2016	3.23.2016	.2016 3.23.	3.23.2016
Reason of Transfer	Grant	Grant	Grant	Grant	Grant	Grant	Grant	Grant	Grant	Grant	Grant	Grant	Grant	Grant
Name	Ying-Chih Chuang	Ching-Chih Chuang Lin	Ching-Chih Chuang Lin	Ying-Nan Chuang	Mei-Yu Chuang Chen	Mei-Yu Chuang Chen	Chao-Mei Wu Tseng	Chao-Mei Wu Tseng	Ying-Nan Chuang	Mei-Yu Chuang Chen	Mei-Yu Chuang Chen	Ching-Chih Chuang Lin	Ching-Chih Chuang Lin	Ying-Chih Chuang

Pledged Amount	3,500,000
Shares Pledged %	22.34%
Shares holding %	1.24%
Shares	350,000
Managers and Transferee and Directors, Relationship between Major Shareholders Supervisors,	None
Transferee	Mega Bills Finance Corporation
Transaction Date of	6.24.2015
Reason of Transfer	mption Rede
me Na	Wei Inv. Co., Ltd. Guang

	Transaction 3.13.2015 Date of		Chih-Chin Chuang Transferee		Child of Director	Directors, Supervisors,	Relationship between Transferee and Managers and Shareholders	Major	400,000 Shares		Transaction Price (NTD)

3.13.2015 3.13.2015 Grant Grant			Chih-Chin Chuang Ting-Ya Chuang		Child of Director Child of Director				500,000 100,000
3.13.2015 Grant			Yun-Ta Chuang				Child of legal representative of Supervisor		400,000
3.13.2015 Grant			Yu-Hsuan Chuang				Child of legal representative of Supervisor		300,000
3.13.2015 Grant			Ming-Hsuan Chuang				Child of legal representative of Supervisor		300,000
6.23.2015 Grant			Chien-Te	Wu	Child of Director				98,654
6.23.2015 3.23.2016 Grant Grant			Wei-Te	Wu		Child of Director			98,654
3.23.2016 Grant			Yu-Hsuan Chuang Yun-Ta Chuang				Child of legal representative of Supervisor Child of legal representative of Supervisor		400,000 300,000
3.23.2016 Grant			Ming-Hsuan Chuang				Child of legal representative of Supervisor		300,000
3.23.2016 Grant			Chih-Chin Chuang			Child of Director			100,000
3.23.2016 Grant			Ting-Ya Chuang			Child of Director			500,000
3.23.2016 Related Parties Grant			Chih-Chin Chuang			Child of Director			400,000
											Unit: NT\$
Transaction Date of Reason of Transfer			Transferee			Supervisors,	Shares Managers and Transferee and Directors, Relationship between Major Shareholders		Shares holding %	Shares Pledged %	Pledged Amount
6.24.2015 mption Rede			Mega Bills Finance Corporation			None	350,000		1.24%	22.34%	3,500,000
	Shareholding		Spouse &	Minor	Arrangement Shareholding by Nominee			The relationship between Top Ten Share holders DQ\RIWKH&RPSDQ\¶V			Remarks
	Shares	%	Shares	%	Shares	%	Name		Relation
		10.03%	0	0	0	0	Tai-Bo Investment Co. Ltd		Director Director
162,743,264							Kao-Quan Investment Co. Ltd Joyful Inv. Co., Ltd.		Chairman
Uni-President Enterprises Co. (Rep:	0	0	425,013	0.03%	0	0	Kao-Quan Investment Co. Ltd (Rep. Hsiu-Ling Kao)		Spouse
83,740,587		5.16%	0	0	0	0	Uni-President Enterprises Co.		Director
Wu) Wei-De	98,654	% 0.01	0	0	0	0	Wu Zeng Mei Zhao-		Mother and son
75,617,836 Nan Shan Life Insurance Co., Ltd.		4.66%	0	0	0	0	None		None
Nan Shan Life Insurance Co., Ltd.	0	0	0	0	0	0	None		None
59,185,474		3.65%	0	0	0	0	None		None
9,854,994 Tainan Spinning Co, Ltd. (Rep: Kao		% 0.61	2,924,904	0.18%	0	0	(Rep: Li-Ling Cheng) Joyful Inv. Co., Ltd.		Father and daughter
45,437,308 Kao-Quan Investment Co. Ltd		2.80%	0	0	0	0	Uni-President Enterprises Co.		Director
Kao-Quan Investment Co. Ltd (Rep.	425,013	0.03%	0	0	0	0	Uni-President Enterprises Co. (Rep: Chih-Hsien Lo)		Spouse
39,023,030		2.40%	0	0	0	0	Wu We-De		Mother and Son

Shares Pledge with Related Parties Unit: NT\$

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50	51
----	----

III

Shareholding Spouse & Minor

Shareholding by Nominee Arrangement

The relationship between DQ\RIWKH&RPSDQ\¶V

	me Na					Arrange	ment		Top Ten Share holders		marks Re
		Shares	%	Shares	%	Shares	%	Name		Relation
	Joyful Inv. Co., Ltd.	28,136,024	% 1.73	0	0	0	0	Uni-President Enterprises Co.		Director
	Joyful Inv. Co., Ltd. (Rep: Li-Ling Cheng)	0	0	0	0	0	0	Tainan Spinning Co, Ltd. (Rep: Kao-Hui Chen)		Father and daughter
	Xing-Yong-Xing Inv, Co. Ltd,.	26,471,128	% 1.63	0	0	0	0	None		None
Prince Housing & Development Corp.	Xing-Yong-Xing Inv, Co. Ltd,. (Rep: Bo-Yu Hou)	0	0	0	0	0	0	None		None
	Cheng-Long Inv. Co, Ltd.	25,882,643	% 1.59	0	0	0	0	None		None
	Cheng-Long Inv. Co, Ltd. (Rep: Ying-Chih Chuang)	310,020	% 0.02	5,624,933	% 0.35	0	0	None		None
	San Shing Spinning Co., Ltd	23,112,917	% 1.42	0	0	0	0	None		None
	San Shing Spinning Co., Ltd (Rep: Wu) Chung-Ho	5,209,847	% 0.32	657,925	% 0.04	0	0	None		None
	DQGWKHWRWDOVKDUHKROGLQJVUDWLR Total Shareholding Ratio PHQWVRI ,QYHVW	'LUHFWRUV6XSHUYLVRUV					Invest	PDQDJHUVDQGGLUHFWO\RULQGLUHFWO\FRQWUROOHGEXVLQHVVRQWKHUHLQYHVWHGEXVLQHVV m Directors, ments fro	Baseline date: Dec 31, 2015 Unit: Share;		%
	Investees		Invest	ment of the Co		mpany		directly or Indirectly Controlled Managers and %XVLQHVV Supervisors,		Total Invest	ment
				Shares	%		Shares	%		Shares	%
	Cheng-Shi Investment Holding Co., Ltd			97,504,950,		% 100.00		-	-	97,504,950	% 100.00
	Ta-Chen Construction & Engineering Corp			-		-		90,497,528	% 100.00	90,497,528	% 100.00
	Prince Utility Co., Ltd			-		-		3,070,000	% 100.00	3,070,000	% 100.00
	Cheng-Shi Construction Co., Ltd			-		-		20,100,000	% 100.00	20,100,000	% 100.00
	ment Consulting Co. Manage Prince Property			17,146,580		% 100.00			-	17,146,580	% 100.00
	ment Manage Prince Apartment	Maintain Co., Ltd		-		-		3,000,000	% 100.00	3,000,000	% 100.00
	Prince Security Co., Ltd			-		-		13,172,636	% 100.00	13,172,636	% 100.00
	Geng-Ding Co., Ltd			18,000,000		% 30.00		-	-	18,000,000	% 30.00
	Prince Housing Investment Co., Ltd			428		% 100.00		-	-	428	% 100.00
	BioSun Technology Co., Ltd			100,000		% 100.00		-	-	100,000	% 100.00
	Dong-Feng Enterprises Co., Ltd			17,300,000		% 100.00		-	-	17,300,000	% 100.00
	ment Corp. Uni-President Develop			108,000,000		% 30.00		-	-	108,000,000	% 30.00
	The Splendor Hotel Taichung			97,500,000		% 50.00		-	-	97,500,000	% 50.00
Annual Report 2015	me Square International Co., Ltd Ti			73,830,000		% 100.00		-	-	73,830,000	% 100.00
	Jin-Yi-Xing plywood Co., Ltd			3,938,168		% 99.65		-	-	3,938,168	% 99.65
	Ming-Da Enterprise Co., Ltd			9,202,249		% 20.00		-	-	9,202,249	% 20.00

DQGWKHWRWDOVKDUHKROGLQJVUDWLR
Total Shareholding Ratio	% Baseline date: Dec 31, 2015 Unit: Share;

III

Investees	mpany ment of the Co		directly or Indirectly Controlled %XVLQHVV
Shares	%	Shares	%	Shares
1,000,000 Prince Co.	% 100.00	-	-	1,000,000	100.00
11,208,632 Prince Real Estate Corp.	% 99.65	-	-	11,208,632	99.65
- Ta Chen International (Brunei) Co.	-	323,000	% 100.00	323,000	100.00
- PPG Investment Inc.	-	273	% 27.27	273	27.27
- Queen Holdings Ltd.	-	2,730	% 27.27	2,730	27.27
- ment Co., Ltd Manage Zhi-Hwa Assets	-	21,644,062	% 45.21	21,644,062	45.21

Capital Overview

IV. Capital Overview

&DSLWDODQG6KDUHV

6RXUFHRI&DSLWDO

A. Issued Shares

							As of 05/15/2016
		\$XWKRUL]HG&DSLWDO		Paid-in Capital		mark Re
0RQWK Year	(NTD) Value Par	Shares	Amount (NTD)	Shares	Amount (NTD)	Sources of Capital	Assets Other Increased by than Cash Capital	Other
Mar 2003	\$10	905,839,645	9,058,396,450	905,839,645	9,058,396,450	Cancellation of Treasure shares	None
Oct 2005	\$10	1,200,000,000	12,000,000,000	901,333,032	9,013,330,320	Capitalization of retained earnings and cancellation of Treasure shares	None
May 2006	\$10	1,200,000,000	12,000,000,000	865,126,032	8,651,260,320	Cancellation of Treasure shares	None
Oct 2007	\$10	1,200,000,000	12,000,000,000	930,010,484	9,300,104,840	Capitalization of retained earnings	None
Oct 2008	\$10	1,200,000,000	12,000,000,000	957,910,798	9,579,107,980	Capitalization of retained earnings	None
Oct 2010	\$10	1,200,000,000	12,000,000,000	996,227,230	9,962,272,300	capitalization of Treasure shares Surplus and capital reserve –	None
Oct 2011	\$10	1,200,000,000	12,000,000,000	1,085,887,681	10,858,876,810	Capitalization of retained earnings	None
Oct. 2012	\$10	1,200,000,000	12,000,000,000	1,194,476,449	11,944,764,490	Capitalization of retained earnings	None
Sep 2013	\$10	1,600,000,000	16,000,000,000	1,313,924,094	13,139,240,940	Capitalization of retained earnings	None
Apr 2014	\$14.45	2,000,000,000	20,000,000,000	1,613,924,094	16,139,240,940	Capital increase by cash	None
Sept, 2014	\$10	2,000,000,000	20,000,000,000	1,662,341,817	16,623,418,170	Capitalization of retained earnings	None
Nov. 2015	\$10	2,000,000,000	20,000,000,000	1,623,326,147	16,233,261,470	Cancellation of Treasure shares	None

marks Re
	Total Shares	2,000,000,000
\$XWKRUL]HG&DSLWDO	Un-issued Shares	376,673,853
	Issued Shares	1,623,326,147
	Share Type	mmon Stock Co

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As of 04/20/2016

	67,999	1,623,326,147
Total
Natural Persons Institutions & Foreign	193	119,227,918
mestic Natural Persons Do	67,648	756,739,889
2WKHU-XULGLFDO Person	156	747,357,526
Institutions Financial	0	0
ment Agencies Govern	2	814
m Ite	Number of Shareholders	Shareholding (shares)

% 100.00

% 7.34
% 46.62
% 46.04
0
% 0.00
%) Percentage (

Capital Overview

6KDUHKROGLQJ'LVWULEXWLRQ6WDWXV

\$&RPPRQ6KDUHV7KHSDUYDOXHIRUHDFKVKDUHLV17 As of 04/20/2016

Class of Shareholding 8QLW6KDUH	Number of Shareholders	Shareholding (Shares)	Percentage
1 ~ 999	34,893	6,489,693	0.40
1,000 ~ 5,000	20,395	43,557,999	2.68
5,001 ~ 10,000	5,226	37,354,708	2.30
10,001 ~ 15,000	2,520	29,975,973	1.85
15,001 ~ 20,000	1,109	19,517,509	1.20
20,001 ~ 30,000	1,279	30,700,511	1.89
30,001 ~ 50,000	978	37,813,254	2.33
50,001 ~ 100,000	759	52,249,725	3.22
100,001 ~ 200,000	388	53,405,953	3.29
200,001 ~ 400,000	180	49,862,546	3.07
400,001 ~ 600,000	77	37,704,299	2.32
600,001 ~ 800,000	46	30,941,090	1.91
800,001 ~ 1,000,000	21	18,990,864	1.17
1,000,001 or over	128	1,174,753,023	72.37
Total	67,999	1,623,326,147	100.00

/LVWRI0DMRU6KDUHKROGHUV As of 04/20/2015

As of 04/20/2015
------------------

Shareholder's Name		Shareholding
	Shares	Percentage
Uni-President Enterprises Corp.	162,743,264	10.03%
Taipo Inv. Co., Ltd.	83,740,587	5.16%
Nan Shan Life Insurance Co., Ltd	75,617,836	4.66%
Tainan Spinning Co, Ltd.	59,185,474	3.65%
Kao-Quan Investment Co. Ltd	45,437,308	2.80%
Zhao Mei Wu Zeng	39,023,030	2.40%
Joyful Inv. Co., Ltd.	28,136,024	1.73%
Xing-Yong-Xing Inv, Co. Ltd,.	26,471,128	1.63%
Cheng Long Investment Corp	25,882,643	1.59%
San Shing Spinning Co., Ltd	23,112,917	1.42%

0DUNHW3ULFH1HW:RUWK(DUQLQJVDQG'LYLGHQGVSHU6KDUH Unit: NT\$

Item
Market Price per Share
Highest Market Price	17.65	13.45	12.75
Lowest Market Price	10.50	7.90	8.5
Average Market Price	14.10	11.39	10.87
Net Worth per Share
Before Distribution	14.42	15.30	15.31
After Distribution	13.62	Note 4	N/A
(DUQLQJVSHU6KDUH
Weighted Average Shares	1,586,268,983	1,622,670,723	1,662,670,723
Diluted Earnings Per Share	1.51	1.38
Adjusted Diluted Earnings Per Share	1.51	Note 4	0.07
Dividends per Share
Cash Dividends	0.8	Note 4	N/A
Stock Dividends
● Dividends from Retained Earnings	0	Note 4	N/A
● Dividends from Capital Surplus	0	Note 4	N/A
Accumulated Undistributed Dividends	0	0	N/A
Return on Investment
Price / Earnings Ratio (Note 1)	9.34	8.25	N/A
Price / Dividend Ratio (Note 2)	17.63	Note 4	N/A
Cash Dividend Yield Rate (Note 3)	0.06	Note 4	N/A

Note 1: Price / Earnings Ratio = Average Market Price / Earnings per Share Note 2: Price / Dividend Ratio = Average Market Price / Cash Dividends per Share Note 3: Cash Dividend Yield Rate = Cash Dividends per Share / Average Market Price Note 4: Pending Shareholders' Meeting Resolution

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A. Dividend Policy

,I WKHUH DUH HDUQLQJV IRU GLVWULEXWLRQ DW WKH HQG RI HDFK ¿VFDO \HDU DIWHU RIIVHWWLQJ DQ\ ORVV RI SULRU \HDUV? and paying all taxes and dues, 10% of the remaining net earnings shall be set aside as legal reserve, then would be appropriated as special reserve in accordance with Securities Exchange Law. The remaining net earnings can be distributed together with prior accumulated unappropriated retained earnings. The Board of Directors will consider the factors that were mentioned above to make the dividend distribution proposal. The dividend should be set in the range from 50% to 100% of the accumulated unappropriated retained earnings and the amount of cash dividend shall exceed 30% of the total amount of dividends distribution. The dividends could be distributed in accordance with the resolution that is approved by the Board of Directors and the Annual Shareholders' Meeting.

Capital Overview

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Item Year	Cash Dividends	Stock Dividends
	0.55	0.75
	0.3	0.3
	None	None
	0.2	0.4
	0.9	0.9
	0.5	1.0
	0.5	1.0
	0.3	0.3
	0.8	None
	Discussed at Shareholders' meeting	Discussed at Shareholders' meeting

C. Proposed Distribution of Dividend

Available for distribution

a. Undistributed Earnings in the beginning	1,284,992,090
b. Plus: Net income	2.237,799,583
c. Less: Provision for legal reserve	(223,779,958)
G /HVV \$FWXDULDO ORVV RQ GH¿QHG EHQH¿W SODQ
e. Available for distributed earnings	3,284,617,747
2. Items
Payment of cash dividends (\$1.1 per share)	(1,785,658,762)
3. Accumulated un-distributed earnings	1,498,958,985

7KH HIIHFW RI EXVLQHVV SHUIRUPDQFH HDUQLQJV SHU VWRFN DQG UHWXUQ RQ investment by stock dividend.

1R SUHSDUDWLRQ DQG GHFODUDWLRQ RI DQ\ ¿QDQFLDO IRUHFDVW LQ WKHUHIRUH QR QHHG WR GLVFORVH the effect of issuance of bonus shares.

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\$ ,QIRUPDWLRQ5HODWLQJWR(PSOR\HH%RQXVDQG'LUHFWRUV¶DQG6XSHUYLVRUV¶ Remuneration in the Articles of Incorporation

If earnings are available for distribution at the end of a fiscal year, 10% of net earnings – that is, after offsetting any loss from prior year(s) and paying all taxes and dues – shall be set aside as legal reserve and appropriated in accordance with the Securities Exchange Law. The remaining net earnings can be distributed along with prior accumulated unappropriated retained earnings. The Board of Directors will consider the above-mentioned factors when making the dividend distribution

proposal.

The company charter prescribes the following for the employee bonus and compensation for directors and supervisors:

1. not lower than 2 % as a bonus for employees;
1. not over 3 % as compensation for directors and supervisors;

The above-mentioned bonus for employees might be a cash bonus or a stock bonus, The Board of Directors is authorized to work out the conditions and procedures of making such distribution. it may also be distributed to employees of subsidiary companies.

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Employee Bonus – in Cash \$244,705,018 Directors' and Supervisors' Remuneration \$83,250,160

There is no difference from the decided amount and the recognized amount in 2015.

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(1) Recommended Distribution of Employee Bonus and Directors' and Supervisors' Remuneration: Employee Bonus – in Cash \$244,705,018 Directors' and Supervisors' Remuneration \$83,250,160
(2) Ratio of Recommended Employee Stock Bonus to Capitalization of Earnings: None

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A. On Aug 24th, 2011, Board of Directors decided to issue NTD 1-1.5 billion of domestic secured convertible bonds (First time) and NTD 1-1.5 billion of unsecured convertible corporate bonds (Second time). Total is NTD 2-3 billion.
B. On March 26th, 2012, Board of Directors decided to issue NTD 2 billion of domestic secured corporate bonds. This issuance completed on July 12, 2012.
C. On March 15th, 2013, Board of Directors decided to issue NTD 2.5 billion of domestic secured corporate bonds. This issuance completed on Nov. 21, 2013.

7\SHRI&RUSRUDWH%RQGV	1st Domestic Secured Corporate %RQGV	1st Domestic Secured Corporate %RQGV
Issuance Date	2012.7.12	2013.11.21
Par Value	\$100,000	\$100,000
Issuance price	As Par	As Par
Total Price	\$2 billions	\$2.5 billions
Rate	Fixed rate 1.33%	Fixed rate 1.55%
Period	5 years. Mature date:2017.7.12	5 years. Mature date:2018.11.21
Guarantee Agency	Bank of Taiwan	Bank of Taiwan & AgriBank
Trustee	Mega International Commercial Bank	Taipei Fubon Bank
Underwriter	MasterLink Securities Corporate.	Capital Securities Corporate.
Lawyer	Ho Yen, Yen	Ho Yen, Yen
&HUWL¿HG 3XEOLF \$FFRXQWDQW	Yi Cheng, Lin and Su Chung,Cheng	Yi Cheng, Lin and Kao Hwa, Wang
Repayment	Bullet	Bullet
Outstanding	\$2 millions	\$2.5 millions
Redemption or Early Repayment Clause	None	None
Covenants	None	None
Credit Rating	None	None
Other Rights of Bondholders
Conversion Rights	None	None
Amount of Converted or Exchanged Common Shares, ADRs or Other Securities	None	None
Dilution Effect and Other Adverse Effects on Existing Shareholders	None	None
Custodian	None	None

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(a) Description of the plans: The decisions made by Board of Directors of issuance of bonds in 2011

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(b) Status of implementation:

7KH ¿VW VHFXUHG FRUSRUDWH ERQGV KDYH LPSOHPHQWHG RQ -XO\ ZLWK WRWDO 17' billion to payback our short-term loans. This implementation has efficiently lower our debt rate and strengthens our financial structures. The 2013 fist secured corporate bonds have implemented on Nov 21, 2013, with total NTD\$2.5 billion to payback our short-term loans. This LPSOHPHQWDWLRQ KDV HI¿FLHQWO\ ORZHU RXU GHEW UDWH DQG VWUHQJWKHQV RXU ¿QDQFLDO VWUXFWXUHV

Also, we issue 300 million of new common stock to increase the capital by cash, NT\$10 par value with issue price of NT\$14.45. We total raised NT\$ 4.34 billion. The stock has been listed for trading on Mar 21, 2014. The purpose for increasing the capital by cash is to repay the bank loans and reduce interest expense.

Operational Highlights

V. Operational Highlights

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A. Main areas of business operations

Manufacturing, transaction and consignment of construction raw materials; Urban renewal, land rezoning and developing; Any domestic and international construction project, architecture design of

1. Construction: Design, build, operate, rent, and agency of land, commercial and residential buildings; professional building etc.
1. Hotel and Tourism: National Taiwan University and National Cheng Kung University dormitory Resort Kenting as well.
1. Others: Security, Apartment Management and Maintenance, Real Estate Development, Lease and operating act is not prohibited or restricted.

BOT projects which we built, operate and manage them; Also, we enter hotel market by investing, building, and entrust operating and management rights to the professional team. So far, we have Time-Square International hotel (W Hotel) and Splendor Hotel Taichung. We invest Howard Beach

Sale, Utility Facility Design, Design and Construction. In addition to the licensing business, an

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Major Divisions	Total Sales	(%) of total sales
Construction Income	11,578,873	72%
Hotel and Tourism Income	3,447,203	21%
Other Operating Income	1,082,430	7%
Total	16,108,506	100%

Unit;NT\$ Thousands

C. Current product line, future service and new products development

Current products and services would be the basis to develop the future plan.

1. Operating business
A. Products
Core Business: Focus on building and selling residential and commercial projects. - Construction: Mainly on undertake public project and other construction cases.
Leisure service: Howard Beach Resort Kenting, Splendor Hotel Taichung, Time Square
B. Business management
implement performance management system
emphasize on human resources
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1. Hotel and Tourism and other business
International Hotel and BOT projects.
security service and apartment management.
Co., Ltd.
Apartment Management and Lease: Rent out the commercial building, house and land; Integrating
Biochemical Science and Technology: Taiwan Scino Pharm, Prince Tech, and Bio Sun Technology

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&RQVWUXFWLRQ,Q WKH SDVW IHZ \HDUV ZH IRFXV RQ GHYHORSLQJ VXEXUEV DUHDV WKH ODQGV QHDU PDLQ WUDI¿F networks, and rezoned cities.

+RWHO DQG7RXULVP DQG RWKHUVThe occupancy rate of hotels and resorts under Prince Housing has already over 80%. The lease of house and land is providing a stable income as well.

The correlation among upstream, midstream and downstream &RQVWUXFWLRQ

Upstream: The main raw materials of upstream are lands and construction materials.

The source of land is from purchasing, country-owned land releasing, and cooperation method. We are also looking for the new material and facilities to improve our product quality.

Midstream: Contractors of building the project.

Downstream: Real estate breakage is responsible for the sales.

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Research and development is our target to keep pursuing. Because of the shortage of construction workers and lands, Prince focuses on research and improving our construction skills. Also, we dispatch employees to Japan on a regular basis to learn the latest and the most environmental standardized construction method. In internal management, we use digitized and standardized progress to spread the information over the company to lower operation cost.

Besides, Prince is running "Cloud service system" in order to combine all the basis life services to enhance the living environment into a better level.

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A. Short-term Development

&RQVWUXFWLRQ 6HDUFKLQJ WKH ODQGV QHDU PDLQ WUDI¿F QHWZRUNV DQG QHZ GHYHORSLQJ FLWLHV WR ODXQFK WKH projects and planning the perfect products depend on customers' need.

+RWHOVDQG7RXULVPDQGRWKHUV Integrating marketing channel, fashion topic, and market trend to meet customer's need on shopping, lodging, and dinning in order to increase the occupancy rate and margin.

%/RQJWHUP'HYHORSPHQW

&RQVWUXFWLRQFocus on the need of residential and commercial building; keep assets activating; cost control effectively; providing good quality and fair price products to public; nurturing WDOHQWV DQG SUXGHQW LQYHVWPHQW WR PDNH WKH PD[LPXP SUR¿W IRU RXU VKDUHKROGHUV

+RWHOVDQG7RXULVPDQGRWKHUVKeep improving the software/hardware and service quality; providing personalized service and products; nurturing talents and increase HI¿FLHQF\

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A. Sales (Service) Region

Area	Commercial %XLOGLQJ	Housing		Note
Taipei	1. Neihu Financial Center 2. Prince Building 3. President International Tower	1. Prince Global Village 2. Shan Ger Li La 3. Prince International Village 4. Prince Sun Town 5. Prince Phoenix Town 6. Prince Tun Yuan 7. Prince Beauty Hall 8. Prince Mei Sui 9. Prince Vacation 10. Prince 101 11. Sansia International Village 12. Guishan Global Village	13. Prince Jin-Hua 14. Prince Sky Building 15. Prince College 16. Taipei Sinyi 17. Central Park 18. Prince Fu 19. Prince Fu II 20. Prince Fu III 21. Prince YuDing 22. Prince HwaWei 23. Prince W	Taipei Area: 1. Taipei City 2. New Taipei City 3. Taoyoan City/ country 4. Hsinchu City/ Country
Taichung	Wanton Financial Center	1. Prince New Generation 2. Prince Manor 3. Ping Chun Fung Chia 4. Prince Sen Huo 5. Prince Yuan Ye 6. Lin Tung Boulevard 7. Prince Zuo Shin Ming A 8. Chan Chan Prince 9. Prince Culture 10. Prince Yo Life 11. Sung Guan Prince 12. Yun Yun Prince	13. Prince Ju 14. Prince Hui 15. Prince Dau 16. Prince Fu 17. Jing Yun Sian 18. The Cloud Century 19. Prince Hai Yan 20.Ching Fung Jing 21.Prince YuDing 22.The Cloudy Century SA 23.Prince W 24. Prince Chun	Taipei Area: 1. Taichung City 2. Chunghwa City/Country
Tainan	1. Prince Building 2. Prince Finance Building	1. Century Empire 2. Fashion Spring 3. Southern Taiwan Science Splendor 4. Prince Golden Brick 5. Century Splendor 6. Wen Yuan Hall 7. Fashion House 8. Prince Fu Di 9. Prince Wen Yuan 10. Prince. New Culture 11. Golden Age	12. Culture Hall 13. Prince Fung Ho 14. Nan Ger Zi Li 15. Prince New Culture II 16. Prince Hua Bo II 17. Prince Mei Xue 18. Prince Hua Bo III 19. Prince Fung Yun Hui 20. Prince i-Cloud 21. Prince WIN 22. Prince Hua Bo V 23. Prince Chen Fung Hei	Taipei Area: 1. Tainan City 2. Yulinf City/ Country 3. Chiayi City/ Country
Kaohsiung	None	1. Prince Space 2. Prince Harvard 3. Prince Chun Di 4. Prince Dragon House 5. Prince In Mon Hu 6. Prince Chun Pin 7. Prince Chun Pin Haw Chia 8. Prince Dian Sha 9. Prince Sha Lui Di 10. Prince Seattle 11. Prince Tun-Yuan 12. Prince Dragon	13. Prince New York 57th Street 14. Prince Culture 15. Prince Yuan-Shan 16. Prince Town 17. Prince Shi Bo 18. Prince Shi Yun 19. Prince Hua Yang 20. Prince Bon 21. Prince Cloud D 22. Prince Cloud E	Kaohsiung Area: 1. Kaohsiung City 2. Pitung City/ Country

Area	&RPPHUFLDO%XLOGLQJ	Housing	Note
Taipei	1. Taipei City Hall Bus Terminal Station BOT 2. Taoyoan Airport MRT station (partial) 3. Sun Bao Beito project 4. Shin Chung Fu Do Hsin commercial and residential building 5. National Palace Museum (Partial) 6. Canon Business Center	1. NTU Chung Shin Dormitory 2. NTU Shia Yuan Dormitory 3. NTU Hsiu Chi House 4. Time-Square International Hotel	Taipei Area: 1. Taipei City 2. New Taipei City 3. Taoyoan City/country 4. Hsinchu City/Country
Taichung	1. National Taiwan Hospital, Yuling Branch 2. Shi Bin Express (partial) 3. High Speed Railway Chunghwa Station project	1. Splendor Hotel Taichung	Taichung Area: 1. Taichung City 2. Chunghwa City/Country
Tainan	1. Wu Hu Lio Bridge project 2. Tainan Spinning Dream Mall Project 3. Shi Bin Express (partial)	1. NTKU Prince Dormitory 2. ZenDa Suites	Tainan Area: 1. Tainan City 2. Yulinf City/Country 3. Chiayi City/Country
Kaohsiung	1. Kaohsiung MRT (partial) 2. Budda Memorial Center 3. Chia Chao Station 4. Hun Shan Shin Shin Section Project 5. Landscape project of Chen Jin Lo	1. Howard Beach Resort Kenting (investment holdings)	Kaohsiung Area: 1. Kaohsiung City 2. Pitung City/Country

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N/A

C. Market demand and supply

1. Supply

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+RWHO DQG7RXULVP DQG RWKHUVMore hotels have been operated in the metropolitan area and wellknown scenic spot. Total hotel room numbers has grown fast.

2. Demand

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Basic Market: For personal use. The demanders in this category are the real estate demanders because they usually change or buy houses not affected by the economic boom.
Investment Market:
a. Investment market demand: people take the real estate as an investment tool.
b. Speculative market demand: it usually happens during the booming economic period.

+RWHOV DQG7RXULVP DQG RWKHUVTourism industry has grown fast in the past few years and so does

tourists. Besides, government tries hard to push no-chimney industry and allow the tourists from Mainland China. Consequently, the demand for hotel rooms increase.

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&RQVWUXFWLRQPrince already focus on its selling and marketing on integrating real estate and hightech industry. Customers can collect new information, shop, watch entertainment show and understand how Prince manages the communities via internet at home. In the other hand, Prince releases the application system in the smart phone online store which can attract the potential customers to view the case online via smart phone. Customers can also contact us via internet if they have any problem and we could improve the after-sale

service time after time.

+RWHOVDQG7RXULVPDQGRWKHUVAccording to the population and region in Taiwan, tourism industry will have a limited growth. Helping customer either from domestic or international build loyalty is important.

D. Favorable and Unfavorable Factors in the Long-range Future 1. Competitiveness

&RQVWUXFWLRQSince 1973, we insist our spirit of "good location, good design, good quality, and good Taiwan.

price." Also, Tainan Group provides us lot of resource to make the best building in

+RWHOVDQG7RXULVPDQGRWKHUV Hotels that owned or invested by Prince are located in a metropolitan area and well-known scenic spots. Furthermore, we operate hotels with world famous hotel chain stores.

2. Strength

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B. Government opens the real estate market to foreign and China and they can invest the market

C. Consumers ask more about the living quality which make them willing to change or purchase a

A. Under circumstance of limited supply of land, market price will keep stable.
directly.
new house.
D. Administrative region re-design (Taichung, Tainan, and Kaohsiung) and new public transportation expected that will expand the urban living area.

(high speed rail, MRT, and high way) has been completed or extended from original route. We

+RWHOVDQG7RXULVPDQGRWKHUVThe brand positioning and market segmentation of W Hotel is very clear. We have a great and experienced operation team. Those are the reason why we can attract the top consumers. Also, the hotel is Shin-Yi district which is the most modern cosmopolitan district of Taipei.

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A. A lot of pre-sale cases in the past few years made a large amount of inventory. B. Government policies are trying to slow down the selling price and speculation.
& 7KH FRQVXPSWLRQ DELOLW\ GHFOLQH DQG LQÀDWLRQ DIIHFW WKH HFRQRPLF

+RWHOV DQG7RXULVP DQG RWKHUVMore and more new competitors joint the 5 stars hotels market in Taipei, like, Humble House Taipei, Mandarin Oriental Taipei, and Eslite Hotel. Some of the old hotels are remolding and will back to the market soon, like, Grand Hyatt Taipei, and Shangri-La's Far

Eastern Plaza Hotel Taipei.

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&RQVWUXFWLRQV We will focus our project on the spirit of "good location, good design, good quality and good price" plus good after-sale services which will help us keep customers.

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Interior: Keep improving software/hardware, facilities and service quality and strengthening employees' education and training.
External part: Integrating marketing channels. Keep creating tops and making publics to put focus on us.

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A. Major Products and Their Main Uses

&RQVWUXFWLRQPrince's main products are residential buildings, houses, apartments, high-end residential EXLOGLQJV VWRUHV DQG KLJKHQG RI¿FH EXLOGLQJV

+RWHOVDQG7RXULVPDQGRWKHUVlease of commercial building, hotels, shopping plaza, dormitory BOT project and investment income.

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ability analyzing. If we think the land is workable after evaluating it, we would choose it as our

EXVLQHVV SODQ \$OVR GR VRPH GHWDLO GLVFXVVLRQ DERXW WKH ÀDW VSDFH IDoDGH VWUXFWXUH DQG IDFLOLWLHV RI

/RFDWLRQ %DVH RQ WKH ODQG LQIRUPDWLRQ ZH HYDOXDWH LW E\ UHVHDUFKLQJ D URXJKO\ SODQQLQJ DQG SUR¿W construction site.
1. Plan and design: We will analyze again about the land features, laws, market, product position and the product.
1. Sales: Product cost analyzing, selling price planning, advertisement and promotion, and marketing.
1. Project: After getting permission from government, we would start to construct the site base on the permitted design.
1. Registration: After we receive the license and apply for double checking the area, we could register the land to keep the property right.
1. Turn in house: Customer would check before accept the completed and licensed building. After that, Prince will transfer the property right and building to customer.
of buildings, repair, community safety, and cleanness.
After-sale service: Prince will set up a service center which will provide the services of maintenance

Operational Highlights V

	None 10.55 191,134	None 5.83 105,643	None 5.10 92,421	None 4.86 88,058	1.98 35,834	None 1.80 32,598	None 0.80 14,523	None 0.80 14,501	None None 0.73 0.71 16,163	66.84 1,211,192 12,841	100.00 1,811,908		Relation with Issuer %	None 7.34 107,593	None 5.03 73,691	None 3.52 57,551	None 3.03 44,431	None 2.83 41,552	None 2.69 39,364	None 2.23 32,634	None 1.63 23,876	None 1.62 23,753	None 1.33 19,556	68.75 1,007,878	100.00 1,465,885
Amount												4	Amount
Company Name	Changhua County Government	Sunpower Development & Construction Co., Ltd,	region construction division of Highways, MOTC, middle Directorate general of western highways	Ministry of Transportation and Railway Reconstruction Communications Bureau	Tainan Spinning Co, Ltd.	Ability Enterprise Co., Ltd	Hung-Shan Construction Co. Ltd	Fo Guang Shan	Chen	Others Yang	Net Sales		Company Name	Taiwan Sugar Corporation, Kaohsiung	Marketech International Corp.	Wen-Hung Construction Company	Wen-Li Utility	Shan-Lai interior renovation Company	Guang-Chen Advertising	Ju Lian Construction Corp.	Feng Hsin Steel	Yeh-Shin Corp.	Tung Ho Steel Enterprise Corp.	Others	Total Purchases
Relation with Issuer None		None	None	None		None	None	None	None None				Relation with Issuer	None	None	None	None	None	None	None	None	None	None
3.81 %		3.8	2.98	2.77	2.34	2.19	1.74	1.44	1.28 1.19	76.46	100		%	8.41	6.01	5.82	1.82	1.76	1.75	1.02	0.87	0.85	0.83	70.87	100
613,348 612,271 Amount			480,189	446,051	376,832	352,010	280,850	232,404	206,140	192,208 12,316,203	16,108,506		Amount	960,362	686,480	664,098	207,717	200,692	199,562	116,258	99,822	96,962	94,741	8,093,372	11,420,066
region construction division Railway Reconstruction Bureau Ministry of Transportation and Sunpower Development & Highways, MOTC, middle Company Name Directorate general of Construction Co., Ltd, of western highways Changhua County Communications Government					Tainan Spinning Co, Ltd.	Lee	Grape King Bio	Tung	South Region Water First United Co. Ltd	Resources Others	Net Sales		Company Name	Taiwan Sugar Corporation, Taichung and Chuanghwa	Taiwan Sugar Corporation, Tainan	New Taipei City Gorvenment	China Steel Structure Co., Ltd	Taiwan Sugar Corporation, Kaohsiung	Wen-Hung Construction Company	Shia-Shen-Fa Steel Company	Shin-Chun Advertising	Wen-Chun Mixed Concrete	Wen-Li Utility	Others	Net Purchases
Relation with Related party in substance Issuer None None None None						None	None	None	None None				Relation with Issuer	None	None	None	None	None	None	None	None	None	None
15.01 11.31 %			4.72	1.38	1.26	1.23	1.02	0.79	0.52 0.47	62.31	100		%	9.69	6.11	6.07	5.44	3.35	3.26	2.31	1.78	1.65	1.64	58.69	100.00
2,196,926 2,915,465 267,988 916,051 Amount					243,911	238,635	197,609	153,229	100,455	90,324 12,103,872	19,424,465		Amount	1,302,578	821,060	815,316	731,000	450,389	437,941	309,956	239,244	222,248	221,016	7,885,385	13,436,133
Company Name Tainan Spinning Co, Ltd. Pro Partner Ltd			Railway Reconstruction Bureau Ministry of Transportation and Communications	MOTC, middle region construction Directorate general of Highways, division of western highways	Changhua County Government	Sunpower Development & Construction Co., Ltd,	Ability Enterprise Co., Ltd	First United Co. Ltd	Dun Kuan Redevelopment Zone	South Region Water Resources Others	Net Sales		Company Name	(Lin Kou Li Shin Seciton) Yeh and the other one	Pai Chung Engineering Co., Ltd.	(Taichung Ping Shin Section) Chen and the other one	Liou and the other 4 people (Shin Dien Shin Cheng Section)	Tainan City Government, (Tainan Shin Yin Section) Department of Finance	China Wire & Cable Co. Ltd.	Taiwan Sugar Corporation, Taichung and Chuanghwa	Marketech International Corp.	Lead Fu Industrials Corp.	Fung Yu Construction Corp.	Others	Net Purchases

0DMRU6XSSOLHUVDQG&OLHQWV

A. Major Clients Information for the Last Two Calendar Years

China Wire & Cable Co. Ltd.	437,941	3.26	None	Wen-Hung Construction Company	199,562	1.75	None	Guang-Chen Advertising	39,364	2.69	None
Taiwan Sugar Corporation, Taichung and Chuanghwa	309,956	2.31	None	Shia-Shen-Fa Steel Company	116,258	1.02	None	Ju Lian Construction Corp.	32,634	2.23	None
Marketech International Corp.	239,244	1.78	None	Shin-Chun Advertising	99,822	0.87	None	Feng Hsin Steel	23,876	1.63	None
Lead Fu Industrials Corp.	222,248	1.65	None	Wen-Chun Mixed Concrete	96,962	0.85	None	Yeh-Shin Corp.	23,753	1.62	None
Fung Yu Construction Corp.	221,016	1.64	None	Wen-Li Utility	94,741	0.83	None	Tung Ho Steel Enterprise Corp.	19,556	1.33	None
Others	7,885,385	58.69		Others	8,093,372	70.87		Others	1,007,878	68.75
Net Purchases	13,436,133	100.00		Net Purchases	11,420,066	100		Total Purchases	1,465,885	100.00

Unit;Pin / NTD thousands

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Sales Year
	Local		Local
Major Products	Quantity	Amount	Quantity	Amount
House	38,724.30	8,030,233	49,606.14	9,993,149
Total	38,724.30	8,030,233	49,606.14	9,993,149

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	Year
	Employees	1,624	1,672	1,671
Number of	Technician	829	722	761
Employees	Others	276	270	270
	Total	2,729	2,664	2,702
	Average Age	43.40	42.96	43.14
	Average Years of Service	4.54	5.27	5.33
	Ph.D.	0%	0%	0%
	Masters	7%	6%	6%
Education	Bachelor's Degree	49%	50%	49%
	Senior High School	28%	34%	34%
	Below Senior High School	16%	10%	11%

Unit;Pin / NTD thousands

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Year Output
Major Products	Capacity	Quantity	Capacity	Quantity
House	49,848,10	7,018,471	56,224.49	9,509,691
Total	49,818.10	7,018,471	56,224.49	9,509,691

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Under construction period, mud, sands and litters would result in a mess of the environment pollution. Therefore, Prince dispatches our employees to Japan to learn about the construction skills and environmental management. We always try our best to keep the site area being mess up.

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A. Management System: Promotion, welfare, rewards and punishments, vacations, pension, and redundancy payments etc.
B. Welfare: Employee welfare committee, education grant, employees' children scholarships, employee training, domestic/foreign company trip, site accident insurance, and etc.
C. Prince is in order to enhance the quality of human resources and development advantages, we always hold the education events and training programs in domestic and foreign.
D. The company suffered due to loss of labor disputes as so far: None

Operational Highlights V

,PSRUWDQW&RQWUDFWV

ment Agree	Party	Start Date	Content	Restriction
BOT	National Taiwan University Prince Housing (A) (B)	Mar 17, 2005	B should response for access the ownership and the right of use of the land in this program. A should mplete the construction in 3 years and operate it for 44 years. Students pay the rent and other expense to A. co	During the construction period, the ratio of own funds to invest in this program could not lower During the operation, the ratio of stock equity to %. The ratio of current assets to current liability could not lower total access could lower than 25 None transferable %/ %. than 100 than 30 1. 2. 3.
BOT	National Cheng Kung Prince Housing (A) University (B)	May 10, 2005	B should response for access the ownership and the right of use of the land in this program. A should get the license within 3 years started m the date contract signed. student dormitory is 35 years and shopping Chartered period for mall and hotel is 50years. fro	None transferable
Credit case	mmercial Bank (B) Mega International Prince Housing (A) Co	May 2, 2006	Total amount is 0.785 billion. The m mercial paper. The foundation is provided to establish OT of m-ter mitory B mediu ms are including and operate dor m loans and co NCKU. ite	Current ratio, debt ratio, and interest coverage ratio couldn't lower than the restriction number. Bank will check it once a year.
Syndicated Loan	¿QDQFLDO Mega International Prince Housing (A) mmercial Bank institutions (B) DQG RWKHU Co	Jan 4, 2006	mount is 21.6 billion. The ms are including long-term loans and guarantee receivable. Total a ite	Current ratio, debt ratio, and interest coverage ratio couldn't lower than the restriction number. Bank will check it once a year.

ment		Start Date	Content	Restriction
Agree	Party
the construction Cooperation in of housing	Taiwan Sugar Corporation Prince Housing (A) (B)	May 18, 2007	Koan Mainly for the transaction of An lot No.12-12 (Taichung).	Agreed to pay for the construction and sales reason. According to the contract, need to pay for mpensation for any No co the deposit of \$181,090. related expenses.
Syndicated Loan	Bank SinoPac and other 3 Splendor Hotel Taichung ¿QDQFLDO LQVWLWXWLRQV % (A)	Oct 9, 2013	Total amount is 3.3 billion. Prince Metal are China Housing and guarantors.	Metal Current's ratio, debt ratio, and interest coverage ratio couldn't lower than the restriction number. Either Prince Housing or China
construction of Cooperation housing in the	World Vision United Co., Tsai-Yuan, Fang (B) Prince Housing (A) Ltd (B)	March 5, 2012 July 17, 2012	Zhi San Sec. Lot No. 602 & 572 of Mainly for the transaction of Shi Lin District (Taipei)	According to the contract, need to pay for the deposit of \$350,000 and \$19,570. As of Dec 31, was \$350,000 and 2012, the balance of deposit \$19,570.
Syndicated Loan	Prince Housing (A)	Nov 28, 2013	mount is 2 billion. The m loans. The foundation is provided to establish residential buildings in m-ter mediu Kou An Section, Taichung. ms are including Total a ite	Should pay the balance into a lump sum on the expiration date.
construction of Cooperation housing in the	Taiwan Sugar Corporation Prince Housing (A) (B)	Jan 20, 2014 Feb 10, 2014 Dec 27, 2014	No. Kuan Section Nan Zhi Kou An Section Lot Mainly for the transaction of Kaohsiang Section Lot No. 158. Ho 591-1, Tainan & No. 34 Taichung Lot	Agreed to pay for the construction and sales reason. According to the contract, need to pay for mpensation for any the deposit of \$63,880, \$83,080 and \$125,540. No co related expenses.
construction of Cooperation housing in the	mmercial Bank and other ¿QDQFLDO LQVWLWXWLRQV % Mega International Prince Housing (A) Co	Sept 18, 2015	mount is 1.06 billion. The m loans. The foundation is provided to establish residential buildings Dai-Ping m-ter mediu in Ping-Shin Section, ms are including District, Taichung. Total a ite	Should pay the balance into a lump sum on the expiration date.

Financial Information

VI. Financial Information

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&RQGHQVHG&RQVROLGDWHG%DODQFH6KHHWV

	Year			Five-Year Financial Summary			0DU
Item		2011	2012	2013	2014	2015
Current assets				23,926,299 28,449,122 34,239,845 32,959,394 31,236,374
Property, plant and equipment			7,033,963	7,014,898	6,957,966	6,742,932	6,684,327
Intangible assets			2,494,229	2,425,016	2,362,995	2,362,995	2,286,992
Other assets				15,435,865 14,883,459 12,490,162 12,410,590 12,305,621
Total assets				48,890,356 52,772,495 56,050,968			54,475,911 52,513,314
Current	Before distribution			17,279,283 15,650,361 17,219,734 10,792,433 10,792,433
liabilities	After distribution			17,876,521 16,134,538 18,549,607		N/A	N/A
Non-current liabilities				14,479,541 18,547,636 14,520,290 16,301,581 16,534,274
	Before distribution			31,758,824 34,197,997 31,740,024 29,301,340 27,326,707
Total liabilities	After distribution			32,356,062 34,682,174 33,069,897		N/A	N/A
Equity attributable to owners of the parent		N/A		16,748,974 18,208,759 23,964,652 24,831,076 24,849,865
Share capital				11,944,765 13,139,241 16,623,418 16,233,261 16,233,261
Capital surplus			521,293	521,293	1,929,793	2,260,513	2,260,513
Retained	Before distribution		2,752,909	2,609,054	4,035,662	4,929,196	5,040,654
earnings	After distribution		961,195	1,640,700	2,705,789	N/A	N/A
Other equity			1,590,447	1,999,611	1,436,219	1,409,109	1,316,440
Treasure stock			(60,440)	(60,440)	(60,440)	(1,003)	(1,003)
Non-controlling interest			382,558	365,739	346,292	343,495	336,742
	Before distribution			17,131,532 18,574,498 24,310,944 25,174,571 25,186,607
Total equity	After distribution			16,534,294 18,090,321 22,981,071		N/A	N/A

Unit;NT \$ thousands

78 79 Prince Housing & Development Corp. Annual Report 2015

						Unit;NT \$ thousands
Year			Five-Year Financial Summary			)URP-DQ WR0DU
Item	2010	2011	2012	2013	2014
Operating revenue		25,630,254	17,242,007	19,424,465	16,108,506	1,811,908
*URVV SUR¿W		10,219,210	4,699,497	5,207,579	5,175,160	627,777
Operating income		6,902,737	2,019,543	2,465,294	2,451,399	83,819
Non-operating income and expenses		(56,176)	(288,671)	77,807	70,261	32,772
3UR¿W EHIRUH LQFRPH WD[		6,846,561	1,730,872	2,543,101	2,521,660	116,591
1HW SUR¿W IURP FRQWLQXLQJ operation		6,577,355	1,635,472	2,379,634	2,233,568	104,705
Loss from discontinuing operation		0	0	0	0	0
1HW SUR¿W		6,577,355	1,635,472	2,379,634	2,233,568	104,705
Other comprehensive income (after income tax)	N/A	489,649	404,732	(567,511)	(41,503)	(92,669)
Total comprehensive income		7,067,004	2,040,204	1,812,123	2,192,065	12,036
1HW SUR¿W (owners of the parent)		6,588,833	1,652,753	2,398,718	2,237,800	111,458
1HW SUR¿W (non-controlling interest)		(11,478)	(17,281)	(19,084)	(4,232)	(6,753)
Comprehensive income (owners of the parent)		7,074,483	2,057,023	1,831,570	2,196,297	18,789
Comprehensive income (non-controlling interest)		(7,479)	(16,819)	(19,447)	(4,232)	(6,753)
Earnings per share (NT\$)		5.17	1.26	1.51	1.38	0.07

Condensed Consolidated Statements of Comprehensive Income

		Five-Year Financial Summary			0DU
2011	2012	2013	2014	2015
			20,963,396 24,360,677 28,613,156 26,749,012








N/A					N/A

	Year
Item		2011	2012	2013	2014	2015
Current assets					20,963,396 24,360,677 28,613,156 26,749,012
Property, plant and equipment			539,150	504,988	590,726	596,757
Intangible assets			2,484,197	2,422,945	2,361,692	2,300,439
Other assets				16,104,992 15,576,754		15,048,711 16,206,820
Total assets					40,091,735 42,865,364 46,614,285 45,853,028
Current	Before distribution		13,514,921		11,397,412 13,482,042	9,376,137
liabilities	After distribution		14,112,159	11,881,589	14,811,915	N/A
Non-current liabilities				9,827,840 13,259,193	9,167,591	11,645,815
	Before distribution				23,342,761 24,656,605 22,649,633 21,021,952
Total liabilities	After distribution	N/A		23,939,999 25,140,782 23,979,506		N/A
Share capital					11,944,765 13,139,241 16,623,418 16,233,261
Capital surplus			521,293	521,293	1,929,793	2,260,513
Retained	Before distribution		2,752,909	2,609,054	4,035,662	4,929,196
earnings	After distribution		961,195	1,640,700	2,705,789	N/A
Other equity			1,590,447	1,999,611	1,436,219	1,409,109
Treasure stock			(60,440)	(60,440)	(60,440)	(1,003)
Total equity	Before distribution				16,748,974 18,208,759 23,964,652 24,831,076
	After distribution			16,151,736 17,724,582 22,634,779		N/A

Unit;NT \$ thousands

Year			Five-Year Financial Summary			)URP-DQ WR0DU
Item	2011	2012	2013	2014	2015
Operating revenue		18,865,009	8,571,288	10,892,210	8,763,040
*URVV SUR¿W		8,761,685	2,873,723	3,575,742	3,131,922
Operating income		6,715,088	1,428,187	1,986,869	1,606,015
Non-operating income and expenses		173,661	279,345	514,019	841,035
3UR¿W EHIRUH LQFRPH WD[		6,888,749	1,707,532	2,500,888	2,447,050
1HW SUR¿W IURP FRQWLQXLQJ operation	N/A	6,588,833	1,652,753	2,398,718	2,237,800
Loss from discontinuing operation		0	0	0	0	N/A
1HW SUR¿W		6,588,833	1,652,753	2,398,718	2,237,800
Other comprehensive income (after income tax)		485,650	404,270	(567,148)	(41,503)
Total comprehensive income		7,074,483	2,057,023	1,831,570	2,196,297
Earnings per share (NT\$)		5.17	1.30	1.51	1.38

Condensed Non-Consolidated Statements of Comprehensive Income

Unit;NT \$ thousands

**&RQGHQVHG%DODQFH6KHHWVDQG6WDWHPHQWVRI,QFRPH52&*\$\$3**

**&RQGHQVHG1RQ&RQVROLGDWHG%DODQFH6KHHWV52&*\$\$3** Unit;NT \$ thousands

	Year		Five-Year Financial Summary
Item		2011	2012	2013	2014	2015
Current assets		24,919,460	21,001,978
Funds and Investment		6,444,073	7,908,712
Fixed assets		9,943,368	9,660,797
Intangible assets		0	0
Other assets		1,212,838	1,609,587
Total assets		42,519,739	40,181,074
Current liabilities	Before distribution	17,059,144	13,505,717
	After distribution	17,602,088	14,102,955
Non-current liabilities		10,102,875	9,522,182
Other liabilities	Before distribution		203,348
			23,231,247
	Total liabilities After distribution		23,828,485	N/A	N/A	N/A
Share capital		10,858,877	11,944,765
Capital surplus		521,293	521,293
	Before distribution	3,060,374 3,208,115
Retained earnings	After distribution	1,431,542	1,416,401
8QUHDOL]HG JDLQ RU instruments	ORVV RQ ¿QDQFLDO	851,992	1,416,607
Cumulative translation adjustments		(30,317)	(43,643)
Unrecognized pension cost		(32,928)	(36,870)
Treasury stock		(60,440)	(60,440)
	Before distribution		15,168,851 16,949,827
Total equity	After distribution	14,625,907	16,352,589

Financial Information

Condensed Non-Consolidated Statements of Income-ROC GAAP

Year			Five-Year Financial Summary
Item	2011	2012	2013	2014	2015
Operating revenue	9,023,105	7,892,497
*URVV SUR¿W	3,662,849	3,216,120
Operating income	2,234,846	1,559,811
Non-operating income and gains	497,591	679,538
Non-operating income and losses	(412,080)	(403,376)
Income before income tax from continuing operation	2,320,357	1,835,973
	2,314,131	1,785,930
Income from continuing operation	2,117,626 (Note 1)	1,991,605 (Note 1)
Income(loss) from discontinuing operation	0	0	N/A	N/A	N/A
Extraordinary items	0	0
Cumulative effect of changes in accounting principle	0	0
	2,314,131	1,785,930
Net income	2,117,626 (Note 1)	1,991,605 (Note 1)
Earnings per share (NT\$)	2.00	1.54 (Note 1)
	1.77 (Note 1)	1.67 (Note 1)

Unit;NT \$ thousands

Note 1: Suppose the subsidiaries' shareholdings of the parent company are not recognized as treasury stock.

Unit;NT \$ thousands

**&RQGHQVHG&RQVROLGDWHG%DODQFH6KHHWV52&*\$\$3**

	Year		Five-Year Financial Summary
Item		2011	2012	2013	2014	2015
Current assets			29,597,928 25,497,843
Funds and Investment		4,954,904	5,956,988
Fixed assets			16,228,126 16,138,473
Intangible assets		24,772	13,808
Other assets		416,021	817,409
Total assets			51,221,751 48,424,521
	Before distribution		20,430,847 17,256,863
Current liabilities	After distribution		20,973,791 17,854,101
Non-current liabilities			14,414,454 13,022,748
Other liabilities	Before distribution		810,964
	Total liabilities		35,662,863 31,090,575
	After distribution		36,205,807 31,687,813	N/A	N/A	N/A
Share capital	10,858,877 11,944,765
Capital surplus		521,293	521,293
Retained earnings	Before distribution	3,060,374	3,208,115
	After distribution	1,431,542	1,416,401
8QUHDOL]HG JDLQ RU instruments	ORVV RQ ¿QDQFLDO	851,992	1,416,607
Cumulative translation adjustments		(30,317)	(43,643)
Unrecognized pension cost		(32,928)	(36,870)
Treasury stock		(60,440)	(60,440)
Minority interest		390,037	384,119
Total equity	Before distribution		15,558,888 17,333,946
	After distribution		15,015,944 16,736,708

Financial Information

Condensed Consolidated Statements of Income-ROC GAAP

Year			Five-Year Financial Summary
Item	2011	2012	2013	2014	2015
Operating revenue	14,589,942	14,657,742
*URVV SUR¿W	4,974,125	4,673,645
Operating income	2,577,776	1,889,850
Non-operating income and gains	315,148	436,897
Non-operating income and losses	(629,355)	(508,183)
Income before income tax from continuing operation	2,263,569	1,818,564
Income from continuing operation	2,244,275	1,775,845	N/A	N/A
Income(loss) from discontinuing operation	0	0			N/A
Extraordinary items	0	0
Cumulative effect of changes in accounting principle	0	0
Income before income tax	2,244,275	1,775,845
Consolidated net income	2,314,131	1,785,930
Net income attributable to minority interest	(69,856)	(10,085)
Earnings per share (NT\$)	2.00	1.54

Year	CPA Firm	CPA's Name	Auditing Opinion
2011	PWC Taiwan	Y.C. Lin & S.C. Chang	1RQVWDQGDUG XQTXDOL¿HG RSLQLRQ
2012	PWC Taiwan	Y.C. Lin & K.H. Wang	1RQVWDQGDUG XQTXDOL¿HG RSLQLRQ
2013	PWC Taiwan	Y.C. Lin & K.H. Wang	1RQVWDQGDUG XQTXDOL¿HG RSLQLRQ
2014	PWC Taiwan	Y.C. Lin & C.H. Wu	1RQVWDQGDUG XQTXDOL¿HG RSLQLRQ
2015	PWC Taiwan	Y.C. Lin & C.H. Wu	1RQVWDQGDUG XQTXDOL¿HG RSLQLRQ

\$XGLWRUV¶2SLQLRQVIURPWR

)LYH<HDU)LQDQFLDO\$QDO\VLV )LQDQFLDO\$QDO\VLV,)5V&RQVROLGDWHG

	Year		)LQDQFLDODQDO\VLVLQWKHSDVW¿YH\HDUV
Item		2011	2012	2013	2014	2015
Financial	Ratio of liabilities to assets		65	65	57	53	52
structure (%)	Ratio of long-term FDSLWDO WR ¿[HG DVVHWV		449	529	553	610	619
	Current ratio		138	182	199	253	289
Solvency	Quick ratio		54	52	56	62	51
(%)	Times interest earned ratio		11.81	3.79	5.40	5.97	1.64
	Accounts receivable turnover (turns)		13.19	4.78	3.68	3.84	0.98
	Average collection period		28	76	99	95	91
	Inventory turnover (turns)		1.01	0.86	0.77	0.50	0.05
Operating ability	Accounts payable turnover (turns)		5.70	3.29	3.34	2.57	0.31
	Average days in sales		361	424	472	730	1800
	Fixed assets turnover (turns)	N/A	3.69	2.45	2.78	2.35	0.27
	Total assets turnover (turns)		0.54	0.34	0.36	0.29	0.03
	Return on total assets (%)		14.56	3.83	4.91	4.54	0.30
	Return on stockholders' equity (%)		47.41	9.16	11.29	9.15	0.42
3UR¿WDELOLW\	Pre-tax income to issued capital (%)		57.32	13.17	15.30	15.53	0.71
	3UR¿W UDWLR		25.66	9.49	12.25	13.86	5.77
	Earnings per share (\$)		5.17	1.30	1.51	1.38	0.07
	&DVK ÀRZ UDWLR		49.05	N/A	N/A	28.41	N/A
&DVK ÀRZ	&DVK ÀRZ DGHTXDF\ ratio (%)		163.38	N/A	N/A	41.74	N/A
	Cash reinvestment ratio (%)		41.77	N/A	N/A	7.35	N/A
Leverage	Operating leverage		1.15	1.49	1.54	1.50	3.52
	Financial leverage		1.07	1.23	1.16	1.15	6.74

VI

)LQDQFLDO\$QDO\VLV,)5V1RQ&RQVROLGDWHG

	Year		)LQDQFLDODQDO\VLVLQWKHSDVW¿YH\HDUV
Item		2011	2012	2013	2014	2015
Financial	Ratio of liabilities to assets		58	58	49	45
structure (%)	Ratio of long-term capital to ¿[HG DVVHWV		4929	6231	5609	6112
	Current ratio		155	214	212	285
Solvency (%)	Quick ratio		49	39	43	33
	Times interest earned ratio		13.38	4.23	6.08	6.44
	Accounts receivable turnover (turns)		16.02	3.61	2.83	3.11
	Average collection period		23	101	129	117
	Inventory turnover (turns)		0.66	0.39	0.42	0.27
Operating ability	Accounts payable turnover (turns)		5.78	2.29	2.81	2.07
	Average days in sales		543	936	877	1351
	Fixed assets turnover (turns)		34.08	16.42	19.88	14.75
	Total assets turnover (turns)	N/A	0.49	0.21	0.24	0.19	N/A
	Return on total assets (%)		17.79	4.58	5.87	5.35
	Return on stockholders' equity (%)		48.85	9.46	11.38	9.17
3UR¿WDELOLW\	Pre-tax income to issued capital (%)		57.67	13.00	15.04	15.07
	3UR¿W UDWLR		34.93	19.28	22.02	25.53
	Earnings per share (\$)		5.17	1.30	1.51	1.38
	&DVK ÀRZ UDWLR		61.91	N/A	N/A	30.82
&DVK ÀRZ	&DVK ÀRZ DGHTXDF\ UDWLR (%)		1510.26	N/A	N/A	32.05
	Cash reinvestment ratio (%)		33.50	N/A	N/A	6.00
	Operating leverage		1.07	1.32	1.33	1.35
Leverage	Financial leverage		1.06	1.26	1.16	1.21

)LQDQFLDO\$QDO\VLV

(Domestic Financial Accounting Principle, Non-Consolidated)

		Year		)LQDQFLDODQDO\VLVLQWKHSDVW¿YH\HDUV
Item			2011	2012	2013	2014	2015
Financial	Ratio of liabilities to assets		64	58
structure (%)	5DWLR RI assets	ORQJWHUP FDSLWDO WR ¿[HG	254	274
	Current ratio		146	156
Solvency (%)	Quick ratio		12	54
		Times interest earned ratio	6.74	5.62
		Accounts receivable turnover (turns)	14.01	6.76
		Average collection period	26	54
		Inventory turnover (turns)	0.27	0.26
Operating ability		Accounts payable turnover (turns)	5.74	2.68
	Average days in sales		1352	1404
		Fixed assets turnover (turns)	0.92	0.81
		Total assets turnover (turns)	0.23	0.19	N/A	N/A	N/A
	Return on total assets (%)		6.73	5.12
	Return on stockholders' equity (%)		16	11
	Ratio to issued	Operating income	21	13
3UR¿WDELOLW\	capital (%)	Pre-tax income	21	15
	3UR¿W UDWLR		26	23
			2.00	1.54
	Earnings per share (\$)		1.77	1.67
	&DVK ÀRZ	UDWLR	NA	61.88
&DVK ÀRZ	&DVK ÀRZ	DGHTXDF\ UDWLR	22.6	83.94
		Cash reinvestment ratio (%)	NA	32.84
Leverage	Operating leverage		1.32	1.48
	Financial leverage		1.22	1.34

)LQDQFLDO\$QDO\VLV

(Domestic Financial Accounting Principle, Consolidated)

		Year		)LQDQFLDODQDO\VLVLQWKHSDVW¿YH\HDUV
Item			2011	2012	2013	2014	2015
Financial	Ratio of liabilities to assets		69.6	64.2
structure (%)	5DWLR RI assets	ORQJWHUP FDSLWDO WR ¿[HG	184.7	188.1
	Current ratio		144.9	147.8
Solvency (%)	Quick ratio		18.9	53.8
		Times interest earned ratio	4.8	3.9
		Accounts receivable turnover (turns)	11.5	7.6
		Average collection period	32	48
		Inventory turnover (turns)	0.4	0.5
Operating ability		Accounts payable turnover (turns)	4.7	3.7
	Average days in sales		865	747
		Fixed assets turnover (turns)	0.9	0.9
		Total assets turnover (turns)	0.3	0.3	N/A	N/A	N/A
		Return on total assets (%)	5.8	4.3
		Return on stockholders' equity (%)	15.5	10.8
3UR¿WDELOLW\	Ratio to issued	Operating income	23.7	15.8
	capital (%)	Pre-tax income	20.8	15.2
	3UR¿W UDWLR		15.4	12.1
	Earnings per share (\$)		2.00	1.54
	&DVK ÀRZ	UDWLR	N/A	49.0
&DVK ÀRZ	&DVK ÀRZ	DGHTXDF\ UDWLR	28.8	84.7
		Cash reinvestment ratio (%)	N/A	23.8
	Operating leverage		1.6	2.0
Leverage	Financial leverage		1.2	1.3

6XSHUYLVRUV¶5HSRUWLQWKH0RVW5HFHQW<HDU

**7R7KH*HQHUDO0HHWLQJRI6KDUHKROGHUVDVRI\HDU**

The undersigned has duly audited the Operating Report, Financial Statements

and Schedule of Earnings Distribution prepared by the Board of Directors

for the year of 2015, and found the same to be true and correct. Therefore, the Supervisors' Report is hereby issued in accordance with Article 219 of Company Law.

Prince Housing & Development Corp. Supervisors:

Ying-Nan Chuang Chao-Wen Huang -LQJ6KLQ&KHQ Chien-Hung Chen -KHQJ<DQJ/LQ

March 23, 2016

For the convenience of readers and for information purpose only, the auditors' report and the accompanying ¿QDQFLDO VWDWHPHQWV KDYH EHHQ WUDQVODWHG LQWR (QJOLVK IURP WKH RULJLQDO &KLQHVH YHUVLRQ SUHSDUHG DQG XVHG LQ the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors' report and ¿QDQFLDO VWDWHPHQWV VKDOO SUHYDLO

**35,1&(+286,1* '(9(/230(17 &253\$1'68%6,',\$5,(6**

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5(32572),1'(3(1'(17\$&&2817\$176 75\$16/\$7(')520&+,1(6(

To the Board of Directors and Shareholders of Prince Housing & Development Corp.

We have audited the accompanying consolidated balance sheets of Prince Housing & Development Corp. and its subsidiaries as of December 31, 2015 and 2014, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended. These FRQVROLGDWHG ¿QDQFLDO VWDWHPHQWV DUH WKH UHVSRQVLELOLW\ RI WKH *URXS¶V PDQDJHPHQW 2XU UHVSRQVLELOLW\ LV WR H[SUHVV DQ RSLQLRQ RQ WKHVH FRQVROLGDWHG ¿QDQFLDO VWDWHPHQWV EDVHG RQ RXU DXGLWV :H GLG QRW DXGLW WKH ¿QDQFLDO VWDWHPHQWV RI FHUWDLQ LQYHVWPHQWV DFFRXQWHG IRU XVLQJ HTXLW\ PHWKRG 7KH VKDUH RI SUR¿W (loss) of associates and joint ventures accounted for using equity method for the years ended December 31, 2015 and 2014 was (NT\$71,792) thousand and (NT\$3,185) thousand, respectively, and the balance of these investments was NT\$575,543 thousand and NT\$719,679 thousand as of December 31, 2015 and 2014, respectively. We also did not audit the financial statements of certain subsidiaries, which VWDWHPHQWV UHÀHFW WRWDO DVVHWV RI 17 WKRXVDQG DQG 17 WKRXVDQG FRQVWLWXWLQJ and 1.73% of the consolidated total assets as of December 31, 2015 and 2014, respectively, and net operating income of NT\$534,463 thousand and NT\$508,172 thousand, constituting 3.32% and 2.62% of the consolidated total net operating income for the years then ended, respectively. The financial statements of these investments and subsidiaries and the information disclosed in Note 13 were audited by other independent accountants whose reports thereon have been furnished to us, and our opinion expressed herein is based solely on the audit reports of the other independent accountants.

We conducted our audits in accordance with the "Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants" and generally accepted auditing standards in the Republic of China. Those standards require that we plan and perform the audit to obtain reasonable DVVXUDQFH DERXW ZKHWKHU WKH ¿QDQFLDO VWDWHPHQWV DUH IUHH RI PDWHULDO PLVVWDWHPHQW \$Q DXGLW LQFOXGHV H[DPLQLQJ RQ D WHVW EDVLV HYLGHQFH VXSSRUWLQJ WKH DPRXQWV DQG GLVFORVXUHV LQ WKH ¿QDQFLDO VWDWHPHQWV 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 and the reports of other independent accountants provide a reasonable basis for our opinion.

Financial Information

In our opinion, based on our audits and the reports of other independent accountants, the consolidated ¿QDQFLDO VWDWHPHQWV UHIHUUHG WR LQ WKH ¿UVW SDUDJUDSK SUHVHQW IDLUO\ LQ DOO PDWHULDO UHVSHFWV WKH ¿QDQFLDO position of Prince Housing & Development Corp. and its subsidiaries as of December 31, 2015 and DQG WKHLU ¿QDQFLDO SHUIRUPDQFH DQG FDVK ÀRZV IRU WKH \HDUV WKHQ HQGHG LQ FRQIRUPLW\ ZLWK WKH "Rules Governing the Preparation of Financial Statements by Securities Issuers" and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission.

:H KDYH DOVR DXGLWHG WKH SDUHQW FRPSDQ\ RQO\ ¿QDQFLDO VWDWHPHQWV RI 3ULQFH +RXVLQJ 'HYHORSPHQW Corp. as of and for the years ended December 31, 2015 and 2014 and have expressed a modified XQTXDOL¿HG RSLQLRQ RQ VXFK ¿QDQFLDO VWDWHPHQWV

The accompanying consolidated financial statements are not intended to present the financial position and UHVXOWV RI RSHUDWLRQV DQG FDVK ÀRZV LQ DFFRUGDQFH ZLWK DFFRXQWLQJ SULQFLSOHV JHQHUDOO\ DFFHSWHG LQ FRXQWULHV and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of &KLQD JRYHUQLQJ WKH DXGLW RI VXFK ¿QDQFLDO VWDWHPHQWV PD\ GLIIHU IURP WKRVH JHQHUDOO\ DFFHSWHG LQ FRXQWULHV and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and report of independent accountants are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

\$V WKH ¿QDQFLDO VWDWHPHQWV DUH WKH UHVSRQVLELOLW\ RI WKH PDQDJHPHQW 3ULFHZDWHUKRXVH&RRSHUV FDQQRW DFFHSW any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

PricewaterhouseCoopers, Taiwan

March 23, 2016

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

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS YEARS ENDED DECEMBER 31 PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS YEARS ENDED DECEMBER 31

Assets	Notes		December 31, 2015 AMOUNT	%	December 31, 2014 AMOUNT	%
Current assets
Cash and cash equivalents	6(1)	%	4-911-862		8 % 3-276-917	5
Financial assets at fair value through profit	6(2) and 8
or loss - current			58:-872	2	349-677
Notes receivable, net	6(3)		246-341		259-523
Accounts receivable, net	6(4)		2-972-731	4	6-466-46:	21
Accounts receivable - related parties	7		539-757	2	551-53:	2
Receivables from customers on	6(5)
construction contracts			2-458-:69	3	:66-9:1	3
Other receivables	9		7:-421		396-255
Inventory, net	5(2), 6(6) and 8		33-31:-9:1	52	31-:36-72:	48
Prepayments			421-762		53:-968	2
Other financial assets - current	8		2-:84-816	5	3-883-:6:	6
Other current assets	6(7)		452-983	2	632-915	2
Total current assets			43-:6:-4:5	71	45-34:-956	72
Non-current assets
Financial assets at fair value through profit	6(2) and 8
or loss - non-current			88-::3		88-658
Available-for-sale financial assets -	6(8) and 8
non-current			2-675-:53	4	2-737-189	4
Financial assets carried at cost -	6(9) and 8
non-current			998-63:	3	998-63:	3
Investments accounted for under equity	6(10) and 8
method			3-355-596	5	3-293-353	5
Property, plant and equipment, net	6(11) and 8		7-853-:43	24	7-:68-:77	23
Investment property - net	6(12) and 8		7-154-938	22	7-186-666	22
Intangible assets	6(13)		3-413-634	5	3-473-::6	5
Deferred income tax assets	6(32)		217-56:		219-47:
Refundable deposits	7 and 9		738-695	2	648-488	2
Other financial assets - non-current	8		949-141	3	:22-:99	3
Other non-current assets			91-325		94-588
Total non-current assets			32-627-628	51	32-922-234	4:
Total assets		%	65-586-:22	211 %	67-161-:79	211

(Continued) (Continued)

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

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS CONSOLIDATED BALANCE SHEETS YEARS ENDED DECEMBER 31

The accompanying notes are an integral part of these consolidated financial statements. See report of independent accountants dated March 23, 2016. 7KH DFFRPSDQ\LQJ QRWHV DUH DQ LQWHJUDO SDUW RI WKHVH FRQVROLGDWHG ¿QDQFLDO VWDWHPHQWV See report of independent accountants dated March 23, 2016.

			December 31, 2015		December 31, 2014
Liabilities and Equity	Notes		AMOUNT	%	AMOUNT	%
Current liabilities
Short-term borrowings	6(14) and 8	%	3-737-484		6 % 4-416-695	7
Short-term notes and bills payable	6(15) and 8		2-759-:79	4	3-713-629	6
Notes payable			37-7::		33-138
Accounts payable			5-2:9-:28	9	5-373-429	9
Payables to customers on construction	6(5)
contracts			616-548	2	461-:6:	2
Other payables			2-468-73:	4	2-1:5-924	3
Other payables - related parties	7		27:-116		2:5-112
Current income tax liabilities	6(32)		:7-141		236-713
Receipts in advance	6(16)		2-986-573	4	4-148-246	6
Long-term liabilities, current portion	6(18) and 8		585-6:3	2	3-222-581	5
Other current liabilities			31-758		224-418
Total current liabilities			23-:::-86:	35	28-32:-845	42
Non-current liabilities
Bonds payable	6(17)		5-611-111	9	5-611-111	9
Long-term borrowings	6(18) and 8		:-541-865	28	8-75:-55:	25
Provisions for liabilities – non-current	6(19)		95-628		92-831
Deferred income tax liabilities	6(32)		527-116	2	5:6-439	2
Long-term notes and accounts payable			2-496-:95	4	2-568-362	4
Net defined benefit liability - non-current 6(20)			252-186		23:-4:2
Guarantee deposits received			246-82:		247-658
Other non-current liabilities	6(10)		318-638	2	81-715
Total non-current liabilities			27-412-692	41	25-631-3:1	37
Total liabilities			3:-412-451	65	42-851-135	68
(TXLW\ DWWULEXWDEOH WR RZQHUV RI SDUHQW
Share capital
Common stock	6(22)		27-344-372	41	27-734-529	41
Capital surplus	6(21)(23)
Capital surplus			3-371-624	5	2-:3:-8:4	4
Retained earnings	6(22)(24)(32)
Legal reserve			2-531-8:7	4	2-291-:35	3
Unappropriated retained earnings			4-619-511	7	3-965-849	6
2WKHU HTXLW\ LQWHUHVW	6(25)
Other equity interest			2-51:-21:	3	2-547-32:	4
Treasury stocks	6(22)	)	2-114*	. )	71-551*
(TXLW\ DWWULEXWDEOH WR RZQHUV RI WKH
parent			35-942-187	56	34-:75-763	54
Non-controlling interest			454-5:6	2	457-3:3
7RWDO HTXLW\			36-285-682	57	35-421-:55	54
7RWDO OLDELOLWLHV DQG HTXLW\		%	65-586-:22	211 %	67-161-:79	211

YEARS ENDED DECEMBER 31 (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31

YEARS ENDED DECEMBER 31 (Expressed in thousands of New Taiwan dollars, except as otherwise indicated) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

				Year ended December 31
			2015			2014
Items	Notes		AMOUNT	%		AMOUNT	%
Operating revenue	6(27) and 7	%	27-219-617	211 %		2:-535-576	211
Operating costs	6(6)(31)	)	21-:44-457* )	79* )		25-327-997* )	84*
Gross profit			6-286-271	43		6-318-68:	38
2SHUDWLQJ H[SHQVHV	6(31) and 7
Selling expenses		)	77:-531* )	5* )		747-686* )	4*
General and administrative expenses		)	3-165-452* )	24* )		3-216-821* )	22*
7RWDO RSHUDWLQJ H[SHQVHV		)	3-834-872* )	28* )		3-853-396* )	25*
Operating profit			3-562-4::	26		3-576-3:5	24
1RQRSHUDWLQJ LQFRPH DQG H[SHQVHV
Other income	6(28)		477-329	4		495-883	3
Other gains and losses	6(2)(29)		38-6::	. )		4:-725*
Finance costs	6(6)(30)	)	446-277* )	3* )		461-3:7* )	3*
Share of profit of associates and joint ventures	6(10)
accounted for under equity method			22-721			93-:56
7RWDO QRQRSHUDWLQJ LQFRPH DQG H[SHQVHV			81-372	2		88-918
3URILW EHIRUH LQFRPH WD[			3-632-771	27		3-654-212	24
Income tax expense	6(32)	)	399-1:3* )	3* )		274-578* )	2*
Profit for the year		%	3-344-679		25 %	3-48:-745	23
Other comprehensive income
Components of other comprehensive loss that will not
be reclassified to profit or loss
Actuarial loss on defined benefit plan	6(20)	) %	23-:1:*		. ) %	6-1:8*
Share of other comprehensive (loss) income of
associates and joint ventures accounted for using
equity method, components of other comprehensive
income that will not be reclassified to profit or loss		)	2-595*			2-452
Components of other comprehensive loss that
will not be reclassified to profit or loss		)	25-4:4*	. )		4-867*
Components of other comprehensive loss that will be
reclassified to profit or loss
Exchange differences arising on translation of foreign
operations			27			3-65:
Other comprehensive loss, before tax,	6(8)
available-for-sale financial assets		)	38-237*	. )		677-415* )	4*
Components of other comprehensive loss that
will be reclassified to profit or loss		)	38-221*	. )		674-866* )	4*
Total other comprehensive loss for the year		) %	52-614*		. ) %	678-622* )	4*
Total comprehensive income for the year		%	3-2:3-176		25 %	2-923-234	:
3URILW ORVV? DWWULEXWDEOH WR
Owners of the parent		%	3-348-911		25 %	3-4:9-829	23
Non-controlling interest		)	5-343*	. )		2:-195*
		%	3-344-679		25 %	3-48:-745	23
&RPSUHKHQVLYH LQFRPH DWWULEXWDEOH WR
Owners of the parent		%	3-2:7-3:8		25 %	2-942-681	:
Non-controlling interest		)	5-343*	. )		2:-558*
		%	3-2:3-176		25 %	2-923-234	:
(DUQLQJV SHU VKDUH LQ GROODUV	6(33)
%DVLF HDUQLQJV SHU VKDUH		%		2/49 %			2/62

Diluted earnings per share		%		2/47 %			2/62

See report of independent accountants dated March 23, 2016. ~5~ 7KH DFFRPSDQ\LQJ QRWHV DUH DQ LQWHJUDO SDUW RI WKHVH FRQVROLGDWHG ¿QDQFLDO VWDWHPHQWV See report of independent accountants dated March 23, 2016.

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31 (Expressed in thousands of New Taiwan dollars) PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31

7KH DFFRPSDQ\LQJ QRWHV DUH DQ LQWHJUDO SDUW RI WKHVH FRQVROLGDWHG ¿QDQFLDO VWDWHPHQWV See report of independent accountants dated March 23, 2016. See report of independent accountants dated March 23, 2016. ~6~

					Equity attributable to owners of the parent
					Retained earnings	Other equity interest Exchange	Unrealized gain
		Share capital -			Unappropriated	translation of differences arising on foreign	available-for sale financial loss on or			Non-controlling
	Notes	common stock	Capital surplus	Legal reserve	retained earnings	operations	assets	Treasury stocks	Total	interest	Total equity
2014
Balance at January 1, 2014		% 24-24:-352	632-3:4 %	% 2-133-354	2-697-922 %	96: * )%	3-111-581 %	71-551 * )%	% 29-319-86:	476-84: %	% 29-685-5:9
Distribution of 2013 earnings	6(24)
Legal reserve				269-792	269-792 * )
Cash dividends					595-288 * )				595-288 * )		595-288 * )
Stock dividends		595-288			595-288 * )
Profit (loss) for the year	6(33)				3-4:9-829				3-4:9-829	2:-195 * )	3-48:-745
Other comprehensive (loss) income for the year	6(8)(20)(25)				4-867 * )	3-65:	676-:52 * )		678-259 * ) )	474 * )	678-622 *
Share-based payment transactions	6(21)(23)		84-611						84-611		84-611
Cash capital increase	6(22)(23)	4-111-111	2-446-111						5-446-111		5-446-111
Balance at December 31, 2014		% 27-734-529	% 2-:3:-8:4	% 2-291-:35	3-965-849 %	2-7:1 %	2-545-63: %	71-551 * )%	% 34-:75-763	457-3:3 %	% 35-421-:55
2015
Balance at January 1, 2015		% 27-734-529	% 2-:3:-8:4	% 2-291-:35	3-965-849 %	2-7:1 %	2-545-63: %	71-551 * )%	% 34-:75-763	457-3:3 %	% 35-421-:55
Distribution of 2014 earnings	6(24)
Legal reserve				34:-983	34:-983 * )
Cash dividends					2-43:-984 * )				2-43:-984 * )		2-43:-984 * )
Profit (loss) for the year	6(33)				3-348-911				3-348-911	5-343 * )	3-344-679
Other comprehensive (loss) income for the year	6(8)(20)(25)				25-4:4 * )	27	38-237 * )		52-614 * )		52-614 * )
Treasury stock transactions	6(22)(23)	4:1-268 * )	441-831					6:-548
Changes in non-controlling interest										2-546	2-546
Balance at December 31, 2015		% 27-344-372	% 3-371-624	% 2-531-8:7	4-619-511 %	2-817 %	2-518-514 %	2-114 * )%	% 35-942-187	454-5:6 %	% 36-285-682

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31 PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31

	Notes	2015		2014
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax		% 3-632-771	%	3-654-212
Adjustments
Adjustments to reconcile profit (loss)
Share -based compensation cost	6(21)			84-611
Net (gain) loss on financial assets at fair value through profit or	6(2)(29)
loss		) 8:-416	*	27-:99
Provision (reversal of provision) for bad debts	6(3)(4)		341 )	:3:	*
Write -off of uncollectible accounts	6(3)(4)	)	4-478 * )	3-746	*
Share of profit of associates and joint ventures accounted for	6(10)
under equity method		) 22-721	* )	93-:56	*
Loss on disposal of property, plant and equipment			3-944	5-964
Loss on disposal of investment property			5-389	814
Depreciation	6(31)	468-182		463-8:4
Amortization	6(13)(31)	72-955		74-4:2
Interest expense	6(30)	444-:76		45:-152
Interest income	6(28)	)	9-9:7 * )	8-949	*
Dividend income	6(28)	) 27:-629	* )	338-585	*
Impairment loss on financial assets	6(8)(29)			23-164
Gain on unrealized foreign exchange		) 25-787	* )	33-815	*
Changes in operating assets and liabilities
Changes in operating assets
Financial assets at fair value through profit or loss - current		) 273-446	*
Notes receivable		24-489	)	52-841	*
Accounts receivable		4-5:7-791	)	2-729-473	*
Accounts receivable - related parties		22-894		453-:85
Receivables from customers on construction contracts		) 4:3-179	* )	252-9:5	*
Other receivables Inventories		325-852		33-698
Prepayments		) 2-457-5:5 22:-317	* )	4-114-197 214-2:9	*
Other current assets		28:-:43		314-895
Other non -current assets			4-374	47-684
Changes in operating liabilities
Notes payable			5-783 )	64-416	*
Accounts payable		) 74-512	*	218-615
Payable to customers on construction contracts		265-589		93-579
Other payables		371-347		69-367
Other payables - related parties		) 35-::7	* )	71-6:9	*
Receipts in advance		) 2-272-784	* )	244-6:4	*
Other current liabilities		) :3-771	*	25-3:2
Provisions for liabilities – non -current			3-8:8	3-75:
Long -term notes payable and accounts payable		)	:-:39 *	4-424
Net defined benefit liability - non -current		)	3-81: * )	8-358	*
Other non -current liabilities		)	:6 * )	288	*
Cash inflow (outflow) generated from operations		5-2::-427	)	2-121-5:8	*
Interest received			:-:9:	7-927
Cash dividend received		321-669		35:-185
Interest paid		) 442-496	* )	459-1:2	*
Income tax paid		) 4:6-188	* )	211-375	*
Net cash flows from (used in) operating activities		4-7:4-512	)	2-313-:73	*

Profit before tax Adjustments Adjustments to reconcile profit (loss) Share -based compensation cost 6(21) Net (gain) loss on financial assets at fair value through profit or loss Provision (reversal of provision) for bad debts 6(3)(4) 341 Write -off of uncollectible accounts 6(3)(4) Share of profit of associates and joint ventures accounted for under equity method Interest income 6(28) Dividend income 6(28) Impairment loss on financial assets 6(8)(29) Gain on unrealized foreign exchange Changes in operating assets and liabilities Changes in operating assets Financial assets at fair value through profit or loss - current Notes receivable 24-489 Accounts receivable 4-5:7-791 Accounts receivable Receivables from customers on construction contracts Inventories Other non Changes in operating liabilities Notes payable 5-783 Accounts payable Other payables - related parties Receipts in advance Other current liabilities Provisions for liabilities – non Long -term notes payable and accounts payable Net defined benefit liability - non -current Other non -current liabilities Cash inflow (outflow) generated from operations 5-2::-427 Interest paid Income tax paid Net cash flows from (used in) operating activities 4-7:4-512

(Continued) (Continued)

(Expressed in thousands of New Taiwan dollars)

Financial Information

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31 (Expressed in thousands of New Taiwan dollars) PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31 (Expressed in thousands of New Taiwan dollars)

	Notes		2015		2014
CASH FLOWS FROM INVESTING ACTIVITIES
Decrease in other financial assets - current		%	8::-365	%	483-:26
Decrease in available-for-sale financial assets - non-current			42-584		2-867
Return of share capital from available-for-sale financial assets -
non-current					36-111
Return of share capital from investments accounted for under
equity method			67-919		41-472
Acquisition of property, plant and equipment	6(11)	)	69-7:6 * )		223-525 *
Proceeds from disposal of property, plant, equipment and
investment property			5-693		5-991
Acquisition of investment property	6(12)	)	2-195 * )		4-399 *
Increase in intangible assets	6(13)	)	2-483 * )		2-481 *
Increase in refundable deposits		)	:1-318 * )		2-167 *
Decrease (increase) in other financial assets - non-current			84-:69	)	542-531 *
Net cash flows from (used in) investing activities			925-828	)	225-747 *
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in short-term borrowings		)	78:-322 * )		88:-527 *
(Decrease) increase in short-term notes and bills payable		)	:64-661 *		569-968
Repayment of long-term borrowings		)	5-:6:-781 * )		7-86:-988 *
Proceeds from long-term borrowings			6-215-1:8		5-66:-169
Decrease in long-term notes and accounts payable		)	72-44: * )		21-881 *
Decrease in guarantee deposits received		)	939 * )		8-692 *
Cash dividends paid	6(24)	)	2-43:-984 * )		595-288 *
Proceeds from cash capital increase	6(22)				5-446-111
Changes in non-controlling interest			2-546
Net cash flows (used in) from financing activities		)	3-989-:4: *		2-422-1:5
Effect of exchange rate changes on cash and cash equivalents			6-877		4-691
Net increase (decrease) in cash and cash equivalents			2-745-:56	)	3-:35 *
Cash and cash equivalents at beginning of year			3-276-917		3-279-841
Cash and cash equivalents at end of year		%	4-911-862	%	3-276-917

**35,1&(+286,1* '(9(/230(17&253\$1'68%6,',\$5,(6 127(6727+(&2162/,'\$7('),1\$1&,\$/67\$7(0(176 )257+(<(\$56(1'(''(&(0%(5\$1'**

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

1. HISTORY AND ORGANIZATION

A. Prince Housing & Development Corp. (the "Company") was established in September 1973, under the Company Act and other related regulations. The Company is primarily engaged in the construction, leasing and sale of public housing, commercial building, tourism/recreation place (children's playground, water park, etc.) and parking lot/parking tower, and leasing and sale of real estate. The common shares of the Company have been listed on the Taiwan Stock Exchange

since April 1991.
B. The main activities of the Company and its subsidiaries (collectively referred herein as the "Group") are provided in Note 4(3)B.

2. 7+( '\$7( 2)\$87+25,=\$7,21 )25 ,668\$1&( 2)7+( &2162/,'\$7(' ),1\$1&,\$/67\$7(0(176\$1'352&('85(6)25\$87+25,=\$7,21

7KHVH FRQVROLGDWHG ¿QDQFLDO VWDWHPHQWV ZHUH DXWKRUL]HG IRU LVVXDQFH E\ WKH %RDUG RI 'LUHFWRUV RQ March 23, 2016.

\$33/,&\$7,212)1(:67\$1'\$5'6\$0(1'0(176\$1',17(535(7\$7,216

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards ("IFRS") as endorsed by the Financial Supervisory Commission ("FSC") adopting the 2013 version of IFRSs is listed below:
\$ ,\$6 UHYLVHG? µ(PSOR\HH EHQH¿WV¶

According to Financial-Supervisory-Securities-Auditing No. 1030010325 issued by FSC on April 3, 2014, commencing 2015, companies with shares listed on the TWSE or traded on the Taipei Exchange or Emerging Stock Market shall adopt the 2013 version of IFRS (not including IFRS 9, 'Financial instruments') as endorsed by the FSC and Regulations Governing the Preparation of Financial Reports by Securities Issuers effective January 1, 2015 (collectively referred herein as WKH ³ YHUVLRQ RI ,)56V´? LQ SUHSDULQJ WKH FRQVROLGDWHG ¿QDQFLDO VWDWHPHQWV 7KH LPSDFW RI

The revised standard makes amendments that net interest amount, calculated by applying the discount rate to the net defined benefit asset or liability, replaces the finance charge and expected return on plan assets. The revised standard eliminates the accounting policy choice that the actuarial gains and losses could be recognized based on corridor approach or UHFRJQL]HG LQ SUR¿W RU ORVV 7KH UHYLVHG VWDQGDUG UHTXLUHV WKDW WKH DFWXDULDO JDLQV DQG ORVVHV can only be recognized immediately in other comprehensive income when incurred. Past service cost will be recognized immediately in the period incurred and will no longer be DPRUWL]HG XVLQJ VWUDLJKWOLQH EDVLV RYHU WKH DYHUDJH SHULRG XQWLO WKH EHQH¿WV EHFRPH YHVWHG \$Q HQWLW\ LV UHTXLUHG WR UHFRJQL]H WHUPLQDWLRQ EHQH¿WV DW WKH HDUOLHU RI ZKHQ WKH HQWLW\ FDQ QR ORQJHU ZLWKGUDZ DQ RIIHU RI WKRVH EHQH¿WV DQG ZKHQ LW UHFRJQL]HV DQ\ UHODWHG UHVWUXFWXULQJ costs, rather than when the entity is demonstrably committed to a termination. Based on the

Financial Information

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% ,\$6 µ3UHVHQWDWLRQ RI ¿QDQFLDO VWDWHPHQWV¶

The amendment requires entities to separate items presented in OCI classified by nature into two groups on the basis of whether they are potentially reclassifiable to profit or loss VXEVHTXHQWO\ ZKHQ VSHFL¿F FRQGLWLRQV DUH PHW ,I WKH LWHPV DUH SUHVHQWHG EHIRUH WD[ WKHQ WKH WD[ UHODWHG WR HDFK RI WKH WZR JURXSV RI 2&, LWHPV WKRVH WKDW PLJKW EH UHFODVVL¿HG DQG WKRVH WKDW ZLOO QRW EH UHFODVVL¿HG? PXVW EH VKRZQ VHSDUDWHO\ \$FFRUGLQJO\ WKH *URXS KDV DGMXVWHG its presentation of the statement of comprehensive income.

C. IFRS 12, 'Disclosure of interests in other entities'

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

D. IFRS 13, 'Fair value measurement'

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

None.

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

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

The Group is assessing the potential impact of the new standards, interpretations and amendments above. The impact will be disclosed when the assessment is complete. 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Group is assessing the potential impact of the new standards, interpretations and amendments above. The impact will be disclosed when the assessment is complete.

The principal accounting policies applied in the preparation of these consolidated financial statements **6800\$5<2)6,1,),&\$17\$&&2817,132/,&,(6**

are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated. (1) Compliance statement 7KH SULQFLSDO DFFRXQWLQJ SROLFLHV DSSOLHG LQ WKH SUHSDUDWLRQ RI WKHVH FRQVROLGDWHG ¿QDQFLDO VWDWHPHQWV are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

	Effective date by International
New Standards, Interpretations and Amendments	Accounting Standards Board
IFRS 9, 'Financial instruments'	January 1, 2018
Sale of contribution of assets between an investor and its associate or joint venture (amendments to IFRS 10 and IAS 28)	To be determined by International Accounting Standards Board
Investment Entities: Applying the Consolidation Exception (IFRS 10, IFRS 12 and IAS 28)	January 1, 2016
Accounting for acquisition of interests in joint operations (amendments to IFRS 11)	January 1, 2016
IFRS 14, 'Regulatory deferral accounts'	January 1, 2016
IFRS 15, 'Revenue from contracts with customers'	January 1, 2018
IFRS 16, 'Leases'	January 1, 2019
Disclosure initiative (amendments to IAS 1)	January 1, 2016
Disclosure initiative (amendments to IAS 7)	January 1, 2017
Recognition of deferred tax assets for unrealised losses (amendments to IAS 12)	January 1, 2017
Clarification of acceptable methods of depreciation and amortization (amendments to IAS 16 and IAS 38)	January 1, 2016
Agriculture: bearer plants (amendments to IAS 16 and IAS 41)	January 1, 2016
Defined benefit plans: employee contributions (amendments to IAS 19R)	July 1, 2014
Equity method in separate financial statements (amendments to IAS 27)	January 1, 2016
Recoverable amount disclosures for non-financial assets (amendments to IAS 36)	January 1, 2014
Novation of derivatives and continuation of hedge accounting (amendments to IAS 39)	January 1, 2014
IFRIC 21, 'Levies'	January 1, 2014
Improvements to IFRSs 2010-2012	July 1, 2014
Improvements to IFRSs 2011-2013	July 1, 2014
Improvements to IFRSs 2012-2014	January 1, 2016

The consolidated financial statements of the Group have been prepared in accordance with the (1) Compliance statement

"Rules Governing the Preparation of Financial Statements by Securities Issuers", International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the "IFRSs"). 7KH FRQVROLGDWHG ¿QDQFLDO VWDWHPHQWV RI WKH *URXS KDYH EHHQ SUHSDUHG LQ DFFRUGDQFH ZLWK WKH "Rules Governing the Preparation of Financial Statements by Securities Issuers", International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the "IFRSs").

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(2) Basis of preparation
22 under the historical cost convention:
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Financial Information VI
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(c) Liabilities on cash-settled share-based payment arrangements measured at fair value.
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% 7KH SUHSDUDWLRQ RI ¿QDQFLDO VWDWHPHQWV LQ FRQIRUPLW\ ZLWK ,)56V UHTXLUHV WKH XVH RI FHUWDLQ critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group's accounting policies. The areas involving a higher degree RI MXGJPHQW RU FRPSOH[LW\ RU DUHDV ZKHUH DVVXPSWLRQV DQG HVWLPDWHV DUH VLJQL¿FDQW WR WKH FRQVROLGDWHG ¿QDQFLDO VWDWHPHQWV DUH GLVFORVHG LQ 1RWH

(3) Basis of consolidation

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D? \$OO VXEVLGLDULHV DUH LQFOXGHG LQ WKH *URXS¶V FRQVROLGDWHG ¿QDQFLDO VWDWHPHQWV 6XEVLGLDULHV are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.
(b) Inter-company transactions, balances and unrealised gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.
F? 3UR¿W RU ORVV DQG HDFK FRPSRQHQW RI RWKHU FRPSUHKHQVLYH LQFRPH DUH DWWULEXWHG WR WKH owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this UHVXOWV LQ WKH QRQFRQWUROOLQJ LQWHUHVWV KDYLQJ D GH¿FLW EDODQFH
(d) Changes in a parent's ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity.
(e) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair YDOXH RQ LQLWLDO UHFRJQLWLRQ RI D ¿QDQFLDO DVVHW RU WKH FRVW RQ LQLWLDO UHFRJQLWLRQ RI WKH associate or joint venture. Any difference between fair value and carrying amount is UHFRJQLVHG LQ SUR¿W RU ORVV \$OO DPRXQWV SUHYLRXVO\ UHFRJQLVHG LQ RWKHU FRPSUHKHQVLYH LQFRPH LQ UHODWLRQ WR WKH VXEVLGLDU\ DUH UHFODVVL¿HG WR SUR¿W RU ORVV RQ WKH VDPH EDVLV DV would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognised in other FRPSUHKHQVLYH LQFRPH LQ UHODWLRQ WR WKH VXEVLGLDU\ VKRXOG EH UHFODVVL¿HG IURP HTXLW\ WR SUR¿W RU ORVV LI VXFK JDLQV RU ORVVHV ZRXOG EH UHFODVVL¿HG WR SUR¿W RU ORVV ZKHQ WKH related assets or liabilities are disposed of.

% 6XEVLGLDULHV LQFOXGHG LQ WKH FRQVROLGDWHG ¿QDQFLDO VWDWHPHQWV B. Subsidiaries included in the consolidated financial statements:

24 Investment Co., Ltd. as the dissolved company.
Note 2: The Group does not directly or indirectly own above 50% of voting shares of The Splendor FRPSDQ\ LW LV LQFOXGHG LQ WKH FRQVROLGDWHG ¿QDQFLDO VWDWHPHQWV
on September 1, 2015.

nancial statements:

		Main business		Ownership (%)
Name of investor	Name of subsidiary	activities		December 31, 2015 December 31, 2014 Description
Prince Housing & Development Corp.	Prince Property Management Consulting Co., Ltd.	Real estate managers	100	100
	Cheng-Shi Investment Holdings Co., Ltd.	General investments	100	100
	Prince Housing Investment Co., Ltd.	Overseas investment	100	100
	BioSun Technology Co., Ltd.	Anti-mildew's import and export	100	100
	Prince Ta-Chen Investment Co., Ltd.	General investments	-	99.97	Note 1
	Dong-Feng Enterprises Co., Ltd.	Housebuilders and sales	100	100
	The Splendor Hotel Taichung Hotels and catering		50	50	Note 2
	Time Square International Co., Ltd.	Hotels and catering	100	100
	Jin-Yi-Xing Plywood Co., Ltd.	Manufacture of plywood	99.65	99.65	Note 3
	Early Success Investments Ltd.	Overseas investment	-	100	Note 4
	Prince Industrial Co., Ltd.	Development of public housing and building	100	100
	Prince Real Estate Co., Ltd. Real estate trading	and leasing	99.65	-	Note 3
Prince Property Management Consulting Co., Ltd.	Prince Apartment Management Maintain Co., Ltd.	Management of apartment	100	100
	Prince Security Co., Ltd.	Security	100	100
Cheng-Shi Investment Holdings Co., Ltd.	Ta-Chen Construction & Engineering Corp.	Construction	100	100
	Prince Utility Co., Ltd.	Electricity and water pipe maintenance	100	100
	Cheng-Shi Construction Co., Ltd.	Construction	100	100
Prince Ta-Chen Investment Co., Ltd.	Prince Capital Inc.	Overseas investment	-	100	Notes 1 and 4
Ta-Chen Construction & Engineering Corp.	Ta-Chen International (Brunei) Corp.	Overseas investment	100	100	Note 5
Prince Capital Inc.	Prince Ventures USA Inc.	Overseas investment	-	100	Note 4
Ta-Chen International (Brunei) Corp.	Ta Chen Construction & Engineering (Vietnam) Corp.	Construction	100	100	Note 5

Note 1: The Company entered into a merger agreement with its subsidiary, Prince Ta-Chen Investment Co., Ltd. in May 2015, with the Company as the surviving company and Prince Ta-Chen

Hotel Taichung. However, as the Group has control over the finance and operations of the

Note 3: The subsidiary was newly established from the land division of Jm-Yi-Xing Plywood Co., Ltd.

Note 4: Liquidation of Early Success Investments Ltd., Prince Capital Inc. and Prince Ventures USA Inc. were completed in December 2015.
Note 5: Ta-Chen International (Brunei) Corp. and Ta-Chen Construction & Engineering (Vietnam) Corp. are now in the dissolution process.
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D. Adjustments for subsidiaries with different balance sheet dates: None.
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F. Subsidiaries that have non-controlling interests that are material to the Group: The Group's non-controlling interest is not material and thus, is not applicable.
(4) Foreign currency translation

Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the "functional FXUUHQF\´? 7KH FRQVROLGDWHG ¿QDQFLDO VWDWHPHQWV DUH SUHVHQWHG LQ 1HZ 7DLZDQ GROODUV ZKLFK LV the Company's functional and the Group's presentation currency.

A. Foreign currency transactions and balances
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(d) All foreign exchange gains and losses are presented in the statement of comprehensive income within 'other gains and losses'.
B. Translation of foreign operations
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iii. All resulting exchange differences are recognised in other comprehensive income. (b) When the foreign operation partially disposed of or sold is an associate or jointly

controlled

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joint control of the former jointly controlled entity, such transactions should be accounted

addition, if the Group retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as

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(a) Assets arising from operating activities that are expected to be realised, or are intended to

entity, exchange differences that were recorded in other comprehensive income are for as disposal of all interest in these foreign operations.
exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In disposal of all interest in the foreign operation.
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(c) Assets that are expected to be realised within twelve months from the balance sheet date; (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those

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

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the purpose of selling in the short-term.

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(9) Receivables

Accounts receivable are loans and receivables originated by the entity. They are created by the entity by selling goods or providing services to customers in the ordinary course of business. Accounts receivable are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. However, short-term accounts receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(10) ,PSDLUPHQW RI ¿QDQFLDO DVVHWV
A. The Group assesses at each balance sheet date whether there is objective evidence that a ¿QDQFLDO DVVHW RU D JURXS RI ¿QDQFLDO DVVHWV LV LPSDLUHG DV D UHVXOW RI RQH RU PRUH HYHQWV that occurred after the initial recognition of the asset (a 'loss event') and that loss event (or HYHQWV? KDV DQ LPSDFW RQ WKH HVWLPDWHG IXWXUH FDVK ÀRZV RI WKH ¿QDQFLDO DVVHW RU JURXS RI ¿QDQFLDO DVVHWV WKDW FDQ EH UHOLDEO\ HVWLPDWHG
B. The criteria that the Group uses to determine whether there is objective evidence of an impairment loss is as follows:
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- (b) A breach of contract, such as a default or delinquency in interest or principal payments;
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local economic conditions that correlate with defaults on the assets in the group;

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impairment loss has occurred, accounting for impairment is made as follows according to the

The amount of the impairment loss is measured as the difference between the asset's FDUU\LQJ DPRXQW DQG WKH SUHVHQW YDOXH RI HVWLPDWHG IXWXUH FDVK ÀRZV GLVFRXQWHG DW WKH ¿QDQFLDO DVVHW¶V RULJLQDO HIIHFWLYH LQWHUHVW UDWH DQG LV UHFRJQLVHG LQ SUR¿W RU ORVV ,I LQ D subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment loss was recognised, the SUHYLRXVO\ UHFRJQLVHG LPSDLUPHQW ORVV LV UHYHUVHG WKURXJK SUR¿W RU ORVV WR WKH H[WHQW WKDW the carrying amount of the asset does not exceed its amortised cost that would have been at the date of reversal had the impairment loss not been recognised previously. Impairment loss is recognised and reversed by adjusting the carrying amount of the asset through the

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allowance account.
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(12) Inventories

Except for gains or losses occurring from construction contracts that are recognised using the percentage of completion method, "land held for construction", "construction in progress", and "buildings and land held for sale" are stated at cost and evaluated at the lower of cost or net realisable value at the end of period. The individual item approach is used in the comparison of cost and net realisable value. The calculation of net realisable value is based on the estimated selling price in the normal course of business, net of estimated costs of completion and related adjusted selling expenses. The interest costs related to construction in progress are capitalised during the construction.

(13) Construction contracts

\$ ,\$6 µ&RQVWUXFWLRQ &RQWUDFWV¶ GH¿QHV D FRQVWUXFWLRQ FRQWUDFW DV D FRQWUDFW VSHFL¿FDOO\ negotiated for the construction of an asset. If the outcome of a construction contract can be HVWLPDWHG UHOLDEO\ DQG LW LV SUREDEOH WKDW WKLV FRQWUDFW ZRXOG PDNH D SUR¿W FRQWUDFW UHYHQXH should be recognised by reference to the stage of completion of the contract activity, using the percentage-of-completion method of accounting, over the contract term. Contract costs are expensed as incurred. The stage of completion of a contract is measured by the proportion of contract costs incurred for work performed to date to the estimated total costs for the contract. An expected loss where total contract costs will exceed total contract revenue on a construction contract should be recognised as an expense as soon as such loss is probable. If the outcome of a construction contract cannot be estimated reliably, contract revenue should be recognised only to the extent of contract costs incurred that it is probable will be recoverable.
B. Contract revenue should include the revenue arising from variations from the original contract work, claims and incentive payments that are agreed by the customer and can be measured reliably.
& 7KH H[FHVV RI WKH FXPXODWLYH FRVWV LQFXUUHG SOXV UHFRJQLVHG SUR¿WV OHVV UHFRJQLVHG ORVVHV? over the progress billings on each construction contract is presented as an asset within 'receivables from customers on construction contracts'. While, the excess of the progress ELOOLQJV RYHU WKH FXPXODWLYH FRVWV LQFXUUHG SOXV UHFRJQLVHG SUR¿WV OHVV UHFRJQLVHG ORVVHV? on each construction contract is presented as a liability within 'payables to customers on construction contracts'.
D. In accordance with IFRIC 15, 'Agreements for the Construction of Real Estate', if the buyer is able to specify the major structural elements of the design of the real estate before construction begins and/or specify major structural changes once construction is in progress, WKH FRQVWUXFWLRQ FRQWUDFW PHHWV WKH GH¿QLWLRQ RI FRQVWUXFWLRQ FRQWUDFW DQG FULWHULD LQ ,\$6 'Construction Contracts'. In accordance with the recognition criteria on the sale of goods as provided in IAS 18, 'Revenue', the Group recognises sales revenue for contracts of pre-VHOOLQJ RI EXLOGLQJV WKDW GR QRW PHHW WKH GH¿QLWLRQ RI FRQVWUXFWLRQ FRQWUDFWV )RU WUDQVDFWLRQV WKDW PHHW WKH GH¿QLWLRQ RI FRQVWUXFWLRQ FRQWUDFWV WKH *URXS UHFRJQLVHV FRQWUDFW UHYHQXH LQ accordance with IAS 11.

(14) Investments accounted for using equity method / associates

\$ \$VVRFLDWHV DUH DOO HQWLWLHV RYHU ZKLFK WKH *URXS KDV VLJQL¿FDQW LQÀXHQFH EXW QRW FRQWURO ,Q

JHQHUDO LW LV SUHVXPHG WKDW WKH LQYHVWRU KDV VLJQL¿FDQW LQÀXHQFH LI DQ LQYHVWRU KROGV GLUHFWO\ or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognised at cost.

% 7KH *URXS¶V VKDUH RI LWV DVVRFLDWHV¶ SRVWDFTXLVLWLRQ SUR¿WV RU ORVVHV LV UHFRJQLVHG LQ SUR¿W or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Group's share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred legal or constructive

C. When changes in an associate's equity are not recognised in profit or loss or other comprehensive income of the associate and such changes do not affect the Group's ownership percentage of the associate, the Group recognises change in ownership interests in the

D. Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group's interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the

E. In the case that an associate issues new shares and the Group does not subscribe or acquire new shares proportionately, which results in a change in the Group's ownership percentage of the associate but maintains significant influence on the associate, then 'capital surplus' and 'investments accounted for under the equity method' shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Group's ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognised in other comprehensive income in relation to the associate DUH UHFODVVL¿HG WR SUR¿W RU ORVV SURSRUWLRQDWHO\ RQ WKH VDPH EDVLV DV ZRXOG EH UHTXLUHG LI WKH

obligations or made payments on behalf of the associate.
associate in 'capital surplus' in proportion to its ownership.
policies adopted by the Group.
relevant assets or liabilities were disposed of.
) 8SRQ ORVV RI VLJQL¿FDQW LQÀXHQFH RYHU DQ DVVRFLDWH WKH *URXS UHPHDVXUHV DQ\ LQYHVWPHQW FDUU\LQJ DPRXQW LV UHFRJQLVHG LQ SUR¿W RU ORVV
aforementioned approach.
SUR¿W RU ORVV SURSRUWLRQDWHO\

retained in the former associate at its fair value. Any difference between fair value and

* :KHQ WKH *URXS GLVSRVHV LWV LQYHVWPHQW LQ DQ DVVRFLDWH DQG ORVHV VLJQL¿FDQW LQÀXHQFH RYHU this associate, the amounts previously recognised in other comprehensive income in relation WR WKH DVVRFLDWH DUH UHFODVVL¿HG WR SUR¿W RU ORVV RQ WKH VDPH EDVLV DV ZRXOG EH UHTXLUHG LI WKH UHOHYDQW DVVHWV RU OLDELOLWLHV ZHUH GLVSRVHG RI ,I LW UHWDLQV VLJQL¿FDQW LQÀXHQFH RYHU WKLV associate, then the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the

:KHQ WKH *URXS GLVSRVHV LWV LQYHVWPHQW LQ DQ DVVRFLDWH DQG ORVHV VLJQL¿FDQW LQÀXHQFH RYHU this associate, the amounts previously recognised as capital surplus in relation to the associate DUH WUDQVIHUUHG WR SUR¿W RU ORVV ,I LW UHWDLQV VLJQL¿FDQW LQÀXHQFH RYHU WKLV DVVRFLDWH WKHQ WKH amounts previously recognised as capital surplus in relation to the associate are transferred to

(15) Property, plant and equipment

A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during

the construction period are capitalised.

B. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, DV DSSURSULDWH RQO\ ZKHQ LW LV SUREDEOH WKDW IXWXUH HFRQRPLF EHQH¿WV DVVRFLDWHG ZLWK WKH LWHP ZLOO ÀRZ WR WKH *URXS DQG WKH FRVW RI WKH LWHP FDQ EH PHDVXUHG UHOLDEO\ 7KH FDUU\LQJ DPRXQW RI WKH UHSODFHG SDUW LV GHUHFRJQLVHG \$OO RWKHU UHSDLUV DQG PDLQWHQDQFH DUH FKDUJHG WR SUR¿W RU ORVV GXULQJ WKH ¿QDQFLDO SHULRG LQ ZKLFK WKH\ DUH LQFXUUHG
C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful OLYHV (DFK SDUW RI DQ LWHP RI SURSHUW\ SODQW DQG HTXLSPHQW ZLWK D FRVW WKDW LV VLJQL¿FDQW LQ relation to the total cost of the item must be depreciated separately.
D. The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each balance sheet date. If expectations for the assets' residual values and useful lives differ from previous estimates or the patterns of consumption of the assets' future HFRQRPLF EHQH¿WV HPERGLHG LQ WKH DVVHWV KDYH FKDQJHG VLJQL¿FDQWO\ DQ\ FKDQJH LV DFFRXQWHG for as a change in estimate under IAS 8, 'Accounting Policies, Changes in Accounting Estimates and Errors', from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

Buildings	50 ~ 60 years
Machinery and equipment	2 ~ 10 years
Computer and communication equipment	5 years
Transportation equipment	3 ~ 5 years
2I¿FH HTXLSPHQW	a \HDUV
Leasehold improvements	5 years
Other equipment	5 ~ 15 years

(16) Operating leases (lessor/ lessee)

5HQWDO LQFRPH IURP RSHUDWLQJ OHDVHV H[FOXGLQJ DQ\ EHQH¿WV SURYLGHG WR OHVVHH? RU SD\PHQWV IRU RSHUDWLQJ OHDVHV H[FOXGLQJ DQ\ EHQH¿WV UHFHLYHG IURP OHVVRU? DUH UHFRJQLVHG DV SUR¿W RU ORVV IRU the period over the leasing period on a straight line basis.

(17) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Except for land, investment property is depreciated on a straight-line basis over its estimated useful life of 44 ~ 60 years.

(18) Intangible assets

Goodwill, patent rights, computer software cost and service concession are stated at acquisition cost and amortised on a straight line basis. The useful life of major intangible assets is 3~5 years, while service concession is 44 years.

(19) ,PSDLUPHQW RI QRQ¿QDQFLDO DVVHWV

The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell or value in use. Except for goodwill, when the circumstances or reasons for recognising impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised.

A. Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of WUDQVDFWLRQ FRVWV? DQG WKH UHGHPSWLRQ YDOXH LV UHFRJQLVHG LQ SUR¿W RU ORVV RYHU WKH SHULRG RI

(20) Borrowings
the borrowings using the effective interest method.
(21) Notes and accounts payable

B. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.

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

(22) 'HUHFRJQLWLRQ RI ¿QDQFLDO OLDELOLWLHV

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

(23) 2IIVHWWLQJ ¿QDQFLDO LQVWUXPHQWV

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

(24) Financial liabilities

Bonds payable

Ordinary corporate bonds issued by the Group are initially recognised at fair value, net of transaction costs incurred. Ordinary corporate bonds are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is accounted for as the premium or discount on bonds payable and presented as an addition to or GHGXFWLRQ IURP ERQGV SD\DEOH ZKLFK LV DPRUWLVHG LQ SUR¿W RU ORVV DV DQ DGMXVWPHQW WR WKH µ¿QDQFH costs' over the period of bond circulation using the effective interest method.

(25) Provisions

Provisions are recognised when the Group has a present legal or constructive obligation as a UHVXOW RI SDVW HYHQWV DQG LW LV SUREDEOH WKDW DQ RXWÀRZ RI HFRQRPLF UHVRXUFHV ZLOO EH UHTXLUHG WR settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date, which is discounted using a pre-tax discount rate that reflects the FXUUHQW PDUNHW DVVHVVPHQWV RI WKH WLPH YDOXH RI PRQH\ DQG WKH ULVNV VSHFL¿F WR WKH REOLJDWLRQ When discounting is used, the increase in the provision due to passage of time is recognised as interest expense. Provisions are not recognised for future operating losses. (26) (PSOR\HH EHQH¿WV

\$ 6KRUWWHUP HPSOR\HH EHQH¿WV

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

B. Pensions
D? 'H¿QHG FRQWULEXWLRQ SODQV

)RU GH¿QHG FRQWULEXWLRQ SODQV WKH FRQWULEXWLRQV DUH UHFRJQLVHG DV SHQVLRQ H[SHQVHV ZKHQ they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments.

E?'H¿QHG EHQH¿W SODQV
L 1HW REOLJDWLRQ XQGHU D GH¿QHG EHQH¿W SODQ LV GH¿QHG DV WKH SUHVHQW YDOXH RI DQ DPRXQW RI SHQVLRQ EHQH¿WV WKDW HPSOR\HHV ZLOO UHFHLYH RQ UHWLUHPHQW IRU WKHLU VHUYLFHV with the Group in current period. The liability recognised in the balance sheet in UHVSHFW RI GH¿QHG EHQH¿W SHQVLRQ SODQV LV WKH SUHVHQW YDOXH RI WKH GH¿QHG EHQH¿W REOLJDWLRQ DW WKH EDODQFH VKHHW GDWH OHVV WKH IDLU YDOXH RI SODQ DVVHWV 7KH GH¿QHG EHQH¿W QHW REOLJDWLRQ LV FDOFXODWHG DQQXDOO\ E\ LQGHSHQGHQW DFWXDULHV XVLQJ WKH projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet) of a currency and term consistent ZLWK WKH FXUUHQF\ DQG WHUP RI WKH HPSOR\PHQW EHQH¿W REOLJDWLRQV
LL 5HPHDVXUHPHQW DULVLQJ RQ GH¿QHG EHQH¿W SODQV DUH UHFRJQLVHG LQ RWKHU comprehensive income in the period in which they arise and are recorded as retained earnings.
LLL 3DVWVHUYLFH FRVWV DUH UHFRJQLVHG LPPHGLDWHO\ LQ SUR¿W RU ORVV
C. Employees' compensation and directors' and supervisors' remuneration Employees' compensation and directors' and supervisors' remuneration are recognised as expenses and liabilities, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is distributed by shares, the Group calculates the number of shares based on the closing price at the previous day of the board meeting resolution.
(27) Employee shared-based payment

For the equity-settled share-based payment arrangements, the employee services received are measured at the fair value of the equity instruments granted at the grant date, and are recognized as compensation cost over the vesting period, with a corresponding adjustment to equity. The fair YDOXH RI WKH HTXLW\ LQVWUXPHQWV JUDQWHG VKDOO UHÀHFW WKH LPSDFW RI PDUNHW YHVWLQJ FRQGLWLRQV DQG non-market vesting conditions. Compensation cost is subject to adjustment based on the service FRQGLWLRQV WKDW DUH H[SHFWHG WR EH VDWLV¿HG DQG WKH HVWLPDWHV RI WKH QXPEHU RI HTXLW\ LQVWUXPHQWV that are expected to vest under the non-market vesting conditions at each balance sheet date. And ultimately, the amount of compensation cost recognised is based on the number of equity instruments that eventually vest.

(28) Income tax
A. The tax expense for the period comprises current and deferred tax. Tax is recognised in SUR¿W RU ORVV H[FHSW WR WKH H[WHQW WKDW LW UHODWHV WR LWHPV UHFRJQLVHG LQ RWKHU FRPSUHKHQVLYH

income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.

substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional 10% tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain

C. Deferred income tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred income tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting QRU WD[DEOH SUR¿W RU ORVV 'HIHUUHG LQFRPH WD[ LV SURYLGHG RQ WHPSRUDU\ GLIIHUHQFHV DULVLQJ on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the

B. The current income tax expense is calculated on the basis of the tax laws enacted or the earnings.
deferred income tax liability is settled.
reassessed.
against which the unused tax credits can be utilised.
H[SHQVH EHQH¿W? GHIHUUHG LQFRPH WD[ DQG WD[ SD\DEOH WD[ UHIXQG UHFHLYDEOH? (29) Share capital

D. Deferred income tax assets are recognised only to the extent that it is probable that future WD[DEOH SUR¿W ZLOO EH DYDLODEOH DJDLQVW ZKLFK WKH WHPSRUDU\ GLIIHUHQFHV FDQ EH XWLOLVHG At each balance sheet date, unrecognised and recognised deferred income tax assets are

E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred income tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realise the asset and settle the liability simultaneously. F. A deferred tax asset shall be recognised for the carryforward of unused tax credits resulting from acquisitions of equipment or technology, research and development expenditures and HTXLW\ LQYHVWPHQWV WR WKH H[WHQW WKDW LW LV SRVVLEOH WKDW IXWXUH WD[DEOH SUR¿W ZLOO EH DYDLODEOH

* &RQVROLGDWHG LQFRPH WD[ UHWXUQ IRU WD[ ¿OLQJV RI FHUWDLQ GRPHVWLF VXEVLGLDULHV LQ WKH *URXS accounted for in accordance with individual reporting situations. And subsidiaries have VHOHFWHG WKH FRQVROLGDWHG LQFRPH WD[ UHWXUQ IRU WD[ ¿OLQJV DQG SD\ DGGLWLRQDO WD[ RQ their undistributed retained earnings. If there is any tax effect due to the adoption of the consolidated tax system, the subsidiaries can proportionately allocate the effects on tax

2UGLQDU\ VKDUHV DUH FODVVL¿HG DV HTXLW\ ,QFUHPHQWDO FRVWV GLUHFWO\ DWWULEXWDEOH WR WKH LVVXH RI QHZ shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.

(30) Dividends

Dividends are recorded in the Company's financial statements in the period in which they are approved by the Company's shareholders. Cash dividends are recorded as liabilities; stock GLYLGHQGV DUH UHFRUGHG DV VWRFN GLYLGHQGV WR EH GLVWULEXWHG DQG DUH UHFODVVL¿HG WR RUGLQDU\ VKDUHV on the effective date of new shares issuance.

(31) Revenue recognition

A. Sales of goods

The Group handles entrusted construction, sale and lease of public housings and business buildings. Revenue arising from the sales of goods is recognised when the Group has delivered the goods to the customer, the amount of sales revenue can be measured reliably DQG LW LV SUREDEOH WKDW WKH IXWXUH HFRQRPLF EHQH¿WV DVVRFLDWHG ZLWK WKH WUDQVDFWLRQ ZLOO ÀRZ to the entity. The delivery of goods is completed when the significant risks and rewards of ownership have been transferred to the customer, the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold, and the customer has accepted the goods based on the sales contract or WKHUH LV REMHFWLYH HYLGHQFH VKRZLQJ WKDW DOO DFFHSWDQFH SURYLVLRQV KDYH EHHQ VDWLV¿HG )RU pre-selling of housing that the Group has entrusted to construction companies to build, as stated in Note 4(13), sales revenue is recognised in accordance with IAS 18, 'Revenue'. Thus, the Group has carried over costs and recognised profit or loss when it completes transfer of title and settlement of housing. Only when housing was actually settled (or only when ownership was transferred) before balance sheet date, and related risk return was transferred would sales revenue be recognised.

B. Sales of services

The Group serves as real estate agency, manages apartment buildings and provides security. Revenue is recognised when transactions of service rendered can be reliably measured and IXWXUH HFRQRPLF EHQH¿W PD\ EHFRPH LQÀRZV WR WKH *URXS

C. Construction contract revenue

Please refer to Note 4(13) for construction contract services provided by the Group.

D. Service concession revenue

Please refer to Note 4(32) for service concession contracts provided by the Group.

(32) Service concession arrangements

A. The Group contracted with National Taiwan University (grantor) to provide construction of the government's infrastructure assets for public services and operate those assets for Changxing St. Campus for 44 years and 6 months, and for Shuiyuan Campus for 44 years and 4 months after construction is completed. When the term of operating period expires, the underlying infrastructure assets will be transferred to National Taiwan University without consideration. The Group allocates the fair value of the consideration received or receivable in respect of the service concession arrangement between construction services and operating services provided based on their relative fair values, and recognises such allocated amounts as revenues in accordance with IAS 11, 'Construction Contracts', and IAS 18, 'Revenue', respectively.
B. Costs incurred on provision of construction services or upgrading services under a service

concession arrangement are accounted for in accordance with IAS 11, 'Construction

Contracts'.

C. The consideration received or receivable from the grantor in respect of the service concession arrangement is recognised at its fair value. Such considerations are recognised as an intangible asset based on how the considerations from the grantor to the operator are made as

VSHFL¿HG LQ WKH DUUDQJHPHQW
(33) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker is responsible for allocating resources and assessing performance of the operating segments.

**&5,7,&\$/\$&&2817,1* -8'*(0(176(67,0\$7(6\$1'.(< 6285&(62) \$668037,2181&(57\$,17<**

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group's accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates are continually evaluated and adjusted based RQ KLVWRULFDO H[SHULHQFH DQG RWKHU IDFWRUV 6XFK DVVXPSWLRQV DQG HVWLPDWHV KDYH D VLJQL¿FDQW ULVN RI FDXVLQJ D PDWHULDO DGMXVWPHQW WR WKH FDUU\LQJ DPRXQWV RI DVVHWV DQG OLDELOLWLHV ZLWKLQ WKH QH[W ¿QDQFLDO year. The above information is addressed below:

investment is impaired. This determination requires significant judgement. In making this judgement, the Group evaluates, among other factors, the duration and extent to which the fair value of an equity investment is less than its cost and the financial health of and short-term business outlook for the investee, including factors such as industry and sector

(1) Critical judgements in applying the Group's accounting policies
A. Financial assets—impairment of equity investments 7KH *URXS IROORZV WKH JXLGDQFH RI ,\$6 WR GHWHUPLQH ZKHWKHU D ¿QDQFLDO DVVHW²HTXLW\ SHUIRUPDQFH FKDQJHV LQ WHFKQRORJ\ DQG RSHUDWLRQDO DQG ¿QDQFLQJ FDVK ÀRZ LQ SUR¿W RU ORVV
B. Investment property

If the decline of the fair value of an individual equity investment below cost was considered significant or prolonged, the Group would suffer an additional loss in its financial statements, being the transfer of the accumulated fair value adjustments recognised in other FRPSUHKHQVLYH LQFRPH RQ WKH LPSDLUHG DYDLODEOHIRUVDOH ¿QDQFLDO DVVHWV WR SUR¿W RU ORVV RU EHLQJ WKH UHFRJQLWLRQ RI WKH LPSDLUPHQW ORVV RQ WKH LPSDLUHG ¿QDQFLDO DVVHWV PHDVXUHG DW FRVW

The Group uses a portion of the property for its own use and another portion to earn rentals or for capital appreciation. When these portions cannot be sold separately and cannot be leased RXW VHSDUDWHO\ XQGHU D ¿QDQFH OHDVH WKH SURSHUW\ LV FODVVL¿HG DV LQYHVWPHQW SURSHUW\ RQO\ LI WKH RZQXVH SRUWLRQ DFFRXQWV IRU LQVLJQL¿FDQW SRUWLRQ RI WKH SURSHUW\

(2) Critical accounting estimates and assumptions Evaluation of inventories

As inventories are stated at the lower of cost and net realisable value, the Group must determine the net realisable value of inventories on balance sheet date using judgements and estimates. If the Group assessed that the net realisable value of inventories on balance sheet date was lower than the cost, the Group would write down the cost of inventories to the net realisable value.

As of December 31, 2015, the carrying amount of inventories was \$22,209,890. cost, the Group would write down the cost of inventories to the net realisable value.

**'(7\$,/62)6,*1,),&\$17\$&&28176** 6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents (1) Cash and cash equivalents

38 % 7KH UHSXUFKDVH ERQGV KHOG E\ WKH *URXS KDV KLJK OLTXLGLW\ VR WKH\ ZHUH FODVVL¿HG DV FDVK equivalents. equivalents. equivalents. C. Details of the Group's cash and cash equivalents pledged to others as collateral are provided in
C. Details of the Group's cash and cash equivalents pledged to others as collateral are provided in Note 8. C. Details of the Group's cash and cash equivalents pledged to others as collateral are provided in Note 8. Note 8. (2) Financial assets at fair value through profit or loss
(2) )LQDQFLDO DVVHWV DW IDLU YDOXH WKURXJK SUR¿W RU ORVV (2) Financial assets at fair value through profit or loss

	December 31, 2015		December 31, 2014
Cash on hand and revolving funds	\$	8,989 \$	55,943
Checking accounts and demand deposits		2,861,201	1,642,033
Time deposits		590,561	387,825
Repurchase bonds		340,000	80,005
	\$	3,800,751 \$	2,165,806

A. The Group transacts with a variety of financial institutions all with high credit quality to disperse A. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote. credit risk, so it expects that the probability of counterparty default is remote. B. The repurchase bonds held by the Group has high liquidity, so they were classified as cash credit risk, so it expects that the probability of counterparty default is remote. B. The repurchase bonds held by the Group has high liquidity, so they were classified as cash

A.The Group recognized net (loss) gain of \$79,305 and (\$16,988) for the years ended December 31, 2015 and 2014, respectively. A. The Group recognized net (loss) gain of \$79,305 and (\$16,988) for the years ended December 31, 2015 and 2014, respectively. A.The Group recognized net (loss) gain of \$79,305 and (\$16,988) for the years ended December 31, 2015 and 2014, respectively.

B.Details of the Group's financial assets at fair value through profit or loss pledged to others as % 'HWDLOV RI WKH *URXS¶V ¿QDQFLDO DVVHWV DW IDLU YDOXH WKURXJK SUR¿W RU ORVV SOHGJHG WR RWKHUV DV collateral are provided in Note 8. B.Details of the Group's financial assets at fair value through profit or loss pledged to others as collateral are provided in Note 8.

collateral are provided in Note 8. (3) Notes receivable, net (3) Notes receivable, net (3) Notes receivable, net

Items Items		December 31, 2015 December 31, 2015	December 31, 2014 December 31, 2014
Current items: Current items: Financial assets held for trading Financial assets held for trading	\$	264,520 \$	264,520
Listed (TSE and OTC) stocks Listed (TSE and OTC) stocks	\$	264,520 \$	264,520
Beneficiary certificates Beneficiary certificates		200,000 200,000	37,665 37,665
		464,520 464,520	302,185 302,185
Valuation adjustments Valuation adjustments		15,241 ( 15,241 (	63,619) 63,619)
	\$ \$	479,761 \$ 479,761 \$	238,566 238,566
Non-current items: Non-current items: Financial assets held for trading
Financial assets held for trading Beneficiary certificates	\$	76,000 \$	76,000
Beneficiary certificates	\$	76,000 \$ 1,992	76,000 1,547
Valuation adjustments Valuation adjustments		1,992	1,547
	\$ \$	77,992 \$ 77,992 \$	77,547 77,547

		December 31, 2015 December 31, 2015
Notes receivable Notes receivable	\$ \$	135,574 \$ 135,574 \$	148,952 148,952
Less: Allowance for doubtful Less: Allowance for doubtful
accounts accounts	( (	344) ( 344) (	540) 540)
	\$ \$	135,230 \$ 135,230 \$	148,412 148,412

A. The Group's notes receivable that were neither past due nor impaired were fully performing in line with the credit standards prescribed based on counterparties' industrial characteristics,

VFDOH RI EXVLQHVV DQG SUR¿WDELOLW\
notes receivable) is as follows:

% 0RYHPHQW DQDO\VLV RI ¿QDQFLDO DVVHWV WKDW ZHUH LPSDLUHG DOORZDQFH IRU GRXEWIXO DFFRXQWV RI

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

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

(4) Accounts receivable, net (4) Accounts receivable, net (4) Accounts receivable, net (4) Accounts receivable, net

of business and profitability. Accounts receivable are classified into 3 categories: of business and profitability. Accounts receivable are classified into 3 categories: (a) Sale of real estate: collection of customers' loans from banks. categories: line with the credit standards prescribed based on counterparties' industrial characteristics, scale of business and profitability. Accounts receivable are classified into 3 categories:
(a) Sale of real estate: collection of customers' loans from banks. (b) Construction contracts and sales of service: from customers with optimal collection record. (c) Receivables from travel department: mainly from credit card payments. (b) Construction contracts and sales of service: from customers with optimal collection record. (c) Receivables from travel department: mainly from credit card payments. (a) Sale of real estate: collection of customers' loans from banks. record. (a) Sale of real estate: collection of customers' loans from banks. (b) Construction contracts and sales of service: from customers with optimal collection record. (a) Sale of real estate: collection of customers' loans from banks. (b) Construction contracts and sales of service: from customers with optimal collection record. (c) Receivables from travel department: mainly from credit card payments.

December 31, 2015 December 31, 2014 B. The ageing analysis of accounts receivable that were past due but not impaired is as follows:

A.The Group's accounts receivable that were neither past due nor impaired were fully performing in line with the credit standards prescribed based on counterparties' industrial characteristics, scale \$ 1,861,620 \$ 5,355,359 A.The Group's accounts receivable that were neither past due nor impaired were fully performing in line with the credit standards prescribed based on counterparties' industrial characteristics, scale A. The Group's accounts receivable that were neither past due nor impaired were fully performing in line with the credit standards prescribed based on counterparties' industrial FKDUDFWHULVWLFV VFDOH RI EXVLQHVV DQG SUR¿WDELOLW\ \$FFRXQWV UHFHLYDEOH DUH FODVVL¿HG LQWR A.The Group's accounts receivable that were neither past due nor impaired were fully performing in \$ 1,861,620 \$ 5,355,359 A.The Group's accounts receivable that were neither past due nor impaired were fully performing in line with the credit standards prescribed based on counterparties' industrial characteristics, scale \$ 1,861,620 \$ 5,355,359

B.The ageing analysis of accounts receivable that were past due but not impaired is as follows: B.The ageing analysis of accounts receivable that were past due but not impaired is as follows: (c) Receivables from travel department: mainly from credit card payments. (c) Receivables from travel department: mainly from credit card payments. B.The ageing analysis of accounts receivable that were past due but not impaired is as follows:

(b) Construction contracts and sales of service: from customers with optimal collection

	Years ended December 31, Years ended December 31, 2015 2014 Years ended December 31,
At January 1	\$	2015 2015 540 \$ 2015	2014 2014 3,703 2014
At January 1 At January 1 Reversal of impairment At January 1	\$ \$ \$	540 \$ 540 \$ - ( 540 \$	3,703 3,703 1,078) 3,703
Reversal of impairment Reversal of impairment Write-offs during the year Reversal of impairment	(	- ( 196) ( - ( - (	1,078) 1,078) 2,085) 1,078)
Write-offs during the year Write-offs during the year At December 31 Write-offs during the year	( ( \$ (	196) ( 196) ( 344 \$ 196) (	2,085) 2,085) 540 2,085)
At December 31 At December 31 At December 31	\$ \$ \$	344 \$ 344 \$ 344 \$	540 540 540

(4) Accounts receivable, net	December 31, 2015		December 31, 2014
Accounts receivable	\$	December 31, 2015 December 31, 2015 1,865,724 \$ December 31, 2015	December 31, 2014 December 31, 2014 5,362,404 December 31, 2014
Accounts receivable Accounts receivable Less: Allowance for doubtful accounts Accounts receivable	\$ \$ ( \$	1,865,724 \$ 1,865,724 \$ 4,104) ( 1,865,724 \$	5,362,404 5,362,404 7,045) 5,362,404
Less: Allowance for doubtful accounts Less: Allowance for doubtful accounts Less: Allowance for doubtful accounts	( ( \$ (	4,104) ( 4,104) ( 1,861,620 \$ 4,104) (	7,045) 7,045) 5,355,359 7,045)

\$	December 31, 2014 December 31, 2014 37,257 December 31, 2014
\$ 696	37,257 37,257 2,996 37,257
108 696	2,996 2,996 866 2,996
1,895 108	866 866 1,836 866
\$ 1,895	1,836 1,836 42,955 1,836
\$	42,955 42,955 42,955
\$ \$ \$ \$ The above ageing analysis was based on past due date.	December 31, 2015 December 31, 2015 30,121 \$ December 31, 2015 30,121 \$ 30,121 \$ 30,121 \$ 696 696 108 108 1,895 1,895 32,820 \$ 32,820 \$ 32,820 \$ 32,820 \$

of business and profitability. Accounts receivable are classified into 3 categories:

	Years ended December 31, Years ended December 31, 2015 2014 Years ended December 31,
At January 1	2015 2015 \$ 2015	7,045 \$	2014 2014 7,446 2014
At January 1 At January 1 Provision for impairment loss At January 1	\$ \$ \$	7,045 \$ 7,045 \$ 230 7,045 \$	7,446 7,446 149 7,446
Provision for impairment loss Provision for impairment loss Write-offs during the year Provision for impairment loss	(	230 230 3,171) ( 230	149 149 550) 149
Write-offs during the year Write-offs during the year At December 31 Write-offs during the year	( ( \$ (	3,171) ( 3,171) ( 4,104 \$ 3,171) (	550) 550) 7,045 550)
At December 31 At December 31 At December 31	\$ \$ \$	4,104 \$ 4,104 \$ 4,104 \$	7,045 7,045 7,045

C. Movement analysis of financial assets that were impaired (allowance for doubtful accounts of & 0RYHPHQW DQDO\VLV RI ¿QDQFLDO DVVHWV WKDW ZHUH LPSDLUHG DOORZDQFH IRU GRXEWIXO DFFRXQWV RI

B.The ageing analysis of accounts receivable that were past due but not impaired is as follows:
The above ageing analysis was based on past due date. C. Movement analysis of financial assets that were impaired (allowance for doubtful accounts of C. Movement analysis of financial assets that were impaired (allowance for doubtful accounts of accounts receivable) is as follows: The above ageing analysis was based on past due date. The above ageing analysis was based on past due date. The above ageing analysis was based on past due date. C. Movement analysis of financial assets that were impaired (allowance for doubtful accounts of
accounts receivable) is as follows: accounts receivable) is as follows: accounts receivable) is as follows: accounts receivable) is as follows:
D. The Group does not hold any collateral as security. D. The Group does not hold any collateral as security. D. The Group does
(5) Construction contracts receivable (payable) (5) Construction contracts receivable (payable) Construction contracts

(6) Inventories (6) Inventories

		December 31, December 31, 2015	December 31, 2014 31, 2014
Aggregate cost incurred plus recognised cost incurred
profits (less recognised losses) recognised losses)	\$	19,550,455 \$	24,567,420
Less: progress billings	( (	18,707,934) (	23,962,489)
Net balance sheet position for construction balance sheet position for construction
in progress	\$	842,521 \$	604,931 604,931
Presented as:
Due from customers for contract work work	\$	1,347,958 \$	955,890
Due to customers for contract work	(	505,437) (	350,959)
	\$	842,521 \$	604,931
As of December 31, 2015 and 2014, the retainage relating to construction contracts amounted to As of December 31, 2015 and 2014, the retainage relating to construction contracts amounted to 31, 2015		construction contracts
\$1,384,110 and \$1,517,237, respectively; the advances received before the related construction \$1,384,110 and \$1,384,110 and \$1,517,237, respectively; the advances received before the related construction			related construction
contracts are performed amounted to \$719,619. contracts are performed amounted to \$719,619. are performed amounted to

The Group analyses based on any changes to credit quality in accounts receivable of individual The Group analyses based on any changes to credit quality in accounts receivable of customers from the initial granting date until the financial period-end, historical experience and LQGLYLGXDO FXVWRPHUV IURP WKH	date until LQLWLDO JUDQWLQJ	to credit quality in GDWH	WKH ¿QDQFLDO		SHULRGHQG KLVWRULFDO
current financial condition, to estimate the amount that may not be recovered. financial condition, estimate the H[SHULHQFH DQG FXUUHQW ¿QDQFLDO	FRQGLWLRQ WR	HVWLPDWH	may not be WKH DPRXQW WKDW	PD\	QRW EH UHFRYHUHG
D. The Group does D. The Group does not hold any collateral as security. D. The Group does not hold any collateral as security.
(5) Construction contracts receivable (payable) Construction contracts Construction contracts receivable (payable)
			December 31, December 31, 2015		December 31, 2014 31, 2014
Aggregate cost incurred plus recognised cost incurred
profits (less recognised losses) recognised losses)		\$	19,550,455 \$		24,567,420
Less: progress billings		( (	18,707,934) (		23,962,489)
Net balance sheet position for construction balance sheet position for construction
in progress		\$	842,521 \$		604,931 604,931
Presented as:
Due from customers for contract work	work	\$	1,347,958 \$		955,890
Due to customers for contract work to customers work		( (	505,437) (		350,959)
		\$	842,521 \$		604,931 604,931
As of December 31, 2015 and 2014, the retainage relating to construction contracts amounted to As of December 31, 2015 and 2014, the retainage relating to construction contracts amounted to 31, 2015 \$1,384,110 and \$1,517,237, respectively; the advances received before the related construction \$1,384,110 and \$1,384,110 and \$1,517,237, respectively; the advances received before the related construction contracts are performed amounted to \$719,619. contracts are performed amounted to \$719,619. are performed amounted to			construction contracts		related construction
			December December 31, 2015
			Allowance for
	Cost		valuation loss loss		Book value
Land held Land held for construction site	\$ 12,765,560 (\$		65,372) \$		12,700,188
Construction in progress	2,457,025 2,457,025			-	2,457,025
Buildings and land held for sale held for	5,882,639 (		49,432)		5,833,207
Prepayment for land for land		223,700 223,700		- -	223,700
Prepayment for buildings and for buildings land		947,991		-	947,991 947,991
Merchandise Merchandise		47,779 47,779		-	47,779 47,779
	\$ 22,324,694 (\$		114,804) \$		22,209,890
			December 31, 2014
			Allowance for
	Cost		valuation loss		Book value
Land held for construction site	\$ 12,227,731 (\$		65,372) \$		12,162,359
Construction in progress	2,407,057			-	2,407,057
Buildings and land held for sale	4,357,942 (		51,446)		4,306,496
Prepayment for land	1,509,913 41 41			-	1,509,913

	December 31, 2014
		Allowance for
	Cost	valuation loss	Book value
Land held for construction site	\$ 12,227,731 (\$	65,372) \$	12,162,359
Construction in progress	2,407,057	-	2,407,057
Buildings and land held for sale	4,357,942 (	51,446)	4,306,496
Prepayment for land	1,509,913	-	1,509,913
Prepayment for buildings and land	41 510,880	-	510,880
Merchandise	28,914	-	28,914
	\$ 21,042,437 (\$	116,818) \$	20,925,619

B. Details of the Group's inventories pledged to others as collateral are provided in Note 8. B. Details of the Group's inventories pledged to others as collateral are provided in Note 8.

for as cost of goods sold. that the Group wrote down from cost to net realizable value accounted for as cost of goods sold. that the Group wrote down from cost to net realizable value accounted for as cost of goods sold.
B. Details of the Group's inventories pledged to others as collateral are provided in Note 8.
C. The interest capitalized as cost of inventory is as follows: C. The interest capitalized as cost of inventory is as follows: C. The interest capitalized as cost of inventory is as follows:

A. The cost of inventories recognized as expense for the years ended December 31, 2015 and 2014 was \$10,933,346 and \$14,216,886, respectively, including the amount of \$2,014 and \$21,758, respectively that the Group wrote down from cost to net realizable value accounted A.The cost of inventories recognized as expense for the years ended December 31, 2015 and 2014 was \$10,933,346 and \$14,216,886, respectively, including the amount of \$2,014 and \$21,758, respectively \$ 21,042,437 (\$ 116,818) \$ 20,925,619 A.The cost of inventories recognized as expense for the years ended December 31, 2015 and 2014 was \$10,933,346 and \$14,216,886, respectively, including the amount of \$2,014 and \$21,758, respectively \$ 21,042,437 (\$ 116,818) \$ 20,925,619

D. Details of significant inventories: (a)Buildings and land in progress ' 'HWDLOV RI VLJQL¿FDQW LQYHQWRULHV (a) Buildings and land in progress D. Details of significant inventories: (a)Buildings and land in progress

Prepayment for buildings and land 510,880 - 510,880 Prepayment for buildings and land 510,880 - 510,880

		Years ended December 31, Years ended December 31,
		2015 2015	2014 2014
Interest paid before capitalization Interest paid before capitalization	\$ \$	478,106 \$ 478,106 \$	535,576 535,576
Interest capitalized Interest capitalized	\$ \$	144,141 \$ 144,141 \$	186,535 186,535
Annual interest rate used for capitalization Annual interest rate used for capitalization		1.61%-3.20% 1.61%-3.20%	1.63%-3.25% 1.63%-3.25%
D. Details of significant inventories: D. Details of significant inventories: ' 'HWDLOV RI VLJQL¿FDQW LQYHQWRULHV (a)Buildings and land in progress (a) Buildings and land in progress (a)Buildings and land in progress

Taipei branch	December 31, 2015	December 31, 2014
Taipei branch	December 31, 2015	December 31, 2014
Prince Yun Ding (XinZhuang Fuduxin) Prince Yun Ding (XinZhuang Fuduxin)	\$ 1,736,845 \$ \$ 1,736,845 \$	1,501,814 1,501,814
Ling Ko Dist. Li Shing Section No. 1209, etc.	1,376,328	1,322,911
Ling Ko Dist. Li Shing Section No. 1209, etc.	1,376,328	1,322,911
Prince Fu III (Taoyuan Qing Sun Section No. 446)	1,131,432	971,180
Prince Fu III (Taoyuan Qing Sun Section No. 446)	1,131,432	971,180
W Prince (New Taipei City Shing Jheng Section W Prince (New Taipei City Shing Jheng Section No. 883, etc.) No. 883, etc.)	962,064 962,064	945,978 945,978
Bali Dist Chung Chang Section No. 2222 and 211-1, etc.	685,665	-
Bali Dist Chung Chang Section No. 2222 and 211-1, etc.	685,665	-
Jhong Li City Shuang Ling Section No. 1449, etc.	328,796	297,100
Jhong Li City Shuang Ling Section No. 1449, etc.	328,796	297,100
Prince Hua Wei (Shilin Dist. Zhishan Section No. 602, etc.)	106,680	48,855
Prince Hua Wei (Shilin Dist. Zhishan Section No. 602, etc.)	106,680	48,855
Prince Fu II (Taoyuan Qing Xi Section No. 462) Prince Fu II (Taoyuan Qing Xi Section No. 462)	-	1,230,016 - 1,230,016
Others Others	-	30 - 30
	\$ 6,327,810 \$ \$ 6,327,810 \$	6,317,884 6,317,884

Taichung branch	December 31, 2015	December 31, 2014
Ping Hsin Section No. 694, etc.	\$ 862,840 \$	858,448
Prince Yu Ding (Hui Li Section No. 195)	707,080	620,697
The Cloud Century A (Kao An Section No. 12-16)	698,401	294,659
Chaotun Section No. 755, etc.	250,571	249,147
Jin Shuei Dist. Wu Show Section No. 1037, No. 1038, No. 1040, etc.	195,947	195,758
Hsinfuliao Section No. 1096, No. 1098, No. 1108, etc.	159,160	-
Chin Fon Gin (Tu Ku Section No. 8-2, etc.)	-	575,092
Hai Yan (Tai Huo Section No. 29)	-	489,564
The Cloud Century A (Kao An Section No. 12-12)	-	403,567
Others	21,900	7,909
	\$ 2,895,899 \$	3,694,841
Tainan branch
Jin Hua Section No. 1361	\$ 688,190 \$	687,232
Prince Feng Yun )Hsin Ying Section No. 841-9)	564,433	485,101
Jum Fon Huei (Yu Ming Section No. 681-8)	266,825	183,812
Shan Chia Section No. 939, etc.	148,499	-
Chin An Section No. 296, No. 297, etc.	95,703	-
Bei An Lot No. 56-10, etc.	-	62,073
Flower Bo Five (Hou Guan Section No. 34, No. 34-1, etc.)	-	51,010
Others	3,524	7,364
	\$ 1,767,174 \$	1,476,592
Kaohsiung branch
Ren Wu New Hougang West Section No. 42, etc. (Prince Cloud B) \$	378,865 \$	3,736
Ren Wu New Hougang West Section No .52, etc. (Prince Cloud C)	416,940	-
Ren Wu New Hougang West Section No. 88 experimental house	73,050	-
Nanzi subsection No. 158	28,177	-
	\$ 897,032 \$	3,736
Total buildings and land in progress	\$ 11,887,915 \$	11,493,053

(b) Land held for construction site (b)Land held for construction site

Taichung branch

Tainan branch

Taipei branch	December 31, 2015	December 31, 2014
Zhong Li Pu Ren Lot No. 720, etc.	\$ 140,156 \$	140,156
Others	5,978	6,274
	\$ 146,134 \$	146,430
Taichung branch
Song Quan Lot No. 164 etc.	\$ 176,296 \$	176,296
Wu Feng Lot No. 365~855 etc.	175,661	175,661
Tu Ku Section No. 9-7, etc.	55,167	-
Song Chang Lot No. 557 etc.	19,912	19,912
Hou Long Zi Section No. 133-004	19,513	19,513
Xi Zhou Lot No. 112-54 etc.	11,941	11,941
Others	20,446	24,134
	\$ 478,936 \$	427,457
Tainan branch
Shan Zhong Lot No. 1468, 1475 & 1476 etc.	\$ 234,699 \$	234,699
Xue Zhong Lot No. 679, etc.	50,798	50,798
Yong Kang Ding An Lot No. 879, etc.	28,610	28,610
Bei An Section No. 54-3, etc.	15,344	15,344
Chin An Section No. 373, etc	15,139	15,139
Bao An Lot No. 882, etc.	10,325	10,325
Ren Wu New Hougang West Section	-	112,876
No. 69, No. 70, etc. Shan Chia Section No. 939, etc.	-	108,111
Chin An Section No. 297, etc.	-	78,928
Others	14,550	19,360
	\$ 369,465 \$	674,190
Kaohsiung branch
Ren Wu New Hougang West Section No. 53, etc.	\$ 986,221 \$	-
Ren Wu New Hougang West Section No. 30 & 52-74	408,037	-
Da Hua Lot No. 434 & 436	13,923	13,923
	\$ 1,408,181 \$	13,923
Total land held for construction site	\$ 2,402,716 \$	1,262,000

Kaohsiung branch

(c) Buildings and land held for sale (c)Buildings and land held for sale

Taipei branch	December 31, 2015	December 31, 2014
Prince Tanmei	\$ 2,270,855 \$	2,458,201
Prince Fu II	641,311	-
Taipei Shinyi	106,741	178,874
Prince Dragon House III	42,432	42,432
Prince Da Din	12,446	12,657
Prince Guo Boa	5,738	5,738
Prince Central Park	-	56,530
Others	546	546
	\$ 3,080,069 \$	2,754,978
Taichung branch
Chin Fon Gin	\$ 516,970 \$	-
The Cloud Century A	452,895	-
Hai Yan	64,657	-
Prince Fu	39,528	67,815
Jing Yun Sian	13,418	458,590
The Cloud Century B	-	441,774
The Cloud Century C	-	374,356
Others	10,889	10,889
	\$ 1,098,357 \$	1,353,424
Tainan branch
Flower Bo Five	\$ 1,625,272 \$	-
Tun Sha Building III	28,376	28,376
Jun Chan LV	19,725	19,725
Prince Golden Age	19,572	19,572
Prince WIN-I Mansion Prince WIN-W Suite (A)	- -	61,350 10,439
Prince Dragon	-	1,081
Others	2,188	11,961
	\$ 1,695,133 \$	152,504
Kaohsiung branch
Prince Hua Yang	\$ 79,875 \$	156,111
Prince Dai Din	10,431	11,736
	\$ 90,306 \$	167,847
Total buildings and land held for sale	\$ 5,963,865 \$	4,428,753

Taipei branch Taipei branch		December 31, 2015 December 31, 2015		December 31, 2014 December 31, 2014
Bail Dist. Chung Chang Section No. 222 Bail Dist. Chung Chang Section No. 222	\$ \$	- -	\$ \$	66,260 66,260
Taichung branch Taichung branch
Chaotun Township HsinFuLiao Section Chaotun Township HsinFuLiao Section No. 1097, etc. No. 1097, etc.	\$	-	\$	16,000 16,000
Tainan branch Tainan branch
Ren Wu New Hougang West Section No. 20, etc. Ren Wu New Hougang West Section No. 20, etc.	\$ \$	223,700 \$ 223,700 \$		- -
Ren Wu Dist. Hai Lot No. 978, etc. Ren Wu Dist. Xia Hai Lot No. 978, etc.		-		1,685,715
Others Others		- -		2,665 2,665
	\$ \$	223,700 \$ 223,700 \$		1,688,380 1,688,380
Total prepayment for land Total prepayment for land	\$ \$	223,700 \$ 223,700 \$		1,770,640 1,770,640
(e) Prepayment for buildings and land (e)Prepayment for buildings and land (e)Prepayment for buildings and land
		December 31, 2015 December 31, 2015		December 31, 2014 December 31, 2014
Taisugar Kao An Section Taisugar Kao An Section	\$ \$	651,397 \$ 651,397 \$		252,098 252,098
Taisugar Nanzi Section Taisugar Nanzi Section		258,794 258,794		62,940 62,940
Prince Yun Ding Prince Yun Ding		37,800 37,800		37,800 37,800
Taisugar He Guan Section Taisugar He Guan Section		- -		158,042 158,042
	\$ \$	947,991 \$ 947,991 \$		510,880 510,880

Taipei branch Taipei branch	December 31, 2015 December 31, 2015	December 31, 2014 December 31, 2014
Bail Dist. Chung Chang Section No. 222 Bail Dist. Chung Chang Section No. 222	\$ - \$ -	\$ 66,260 \$ 66,260
Taichung branch Taichung branch
Chaotun Township HsinFuLiao Section Chaotun Township HsinFuLiao Section No. 1097, etc. No. 1097, etc.	\$ -	16,000 \$ 16,000
Tainan branch Tainan branch
Ren Wu New Hougang West Section No. 20, etc. Ren Wu New Hougang West Section No. 20, etc.	\$ 223,700 \$ \$ 223,700 \$	- -
Ren Wu Dist. Hai Lot No. 978, etc. Ren Wu Dist. Xia Hai Lot No. 978, etc.	-	1,685,715
Others Others	- -	2,665 2,665
	\$ 223,700 \$ \$ 223,700 \$	1,688,380 1,688,380
Total prepayment for land Total prepayment for land	\$ 223,700 \$ \$ 223,700 \$	1,770,640 1,770,640
Prepayment for buildings and land (e)Prepayment for buildings and land
	December 31, 2015 December 31, 2015	December 31, 2014 December 31, 2014
Taisugar Kao An Section Taisugar Kao An Section	\$ 651,397 \$ \$ 651,397 \$	252,098 252,098
Taisugar Nanzi Section	258,794	62,940
Prince Yun Ding	37,800	37,800

After the land consolidation, abovementioned Ren Wu Dist. Xia Hai Lot No. 978, etc. became New Hougang West Section No. 20~144-1, etc. became New Hougang West Section No. 20~144-1, etc. After the land consolidation, abovementioned Ren Wu Dist. Xia Hai Lot No. 978, etc. became New Hougang West Section No. 20~144-1, etc.

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( 'LVFORVXUH RI VLJQL¿FDQW FRQVWUXFWLRQV E. Disclosure of significant constructions: (a) As of December 31, 2015, significant constructions are set forth below: E. Disclosure of significant constructions:

(b) As of December 31, 2014, significant constructions are set forth below: E?\$V RI 'HFHPEHU VLJQL¿FDQW FRQVWUXFWLRQV DUH VHW IRUWK EHORZ (b) As of December 31, 2014, significant constructions are set forth below:

mber 31, 2015, significant constructions are set forth belo (a) As of Dece	w:
		Estimated	Percentage	Accumulated
Name of construction contract	Contract amount	construction cost Estimated	of completion Percentage	construction profit/(loss) Accumulated
Name of construction contract Tainan Spinning Dream Mall	4,842,473 Contract amount \$	construction cost 4,742,532 \$	of completion % 97.51	construction profit/(loss) 97,452 \$
New Construction of Chaojhou Railway Station Tainan Spinning Dream Mall	4,274,219 4,842,473 \$	4,742,532 4,104,868 \$	% % 97.55 97.51	165,202 97,452 \$
New Construction of Chaojhou Railway Station Wen Reservoir Tseng-	4,274,219 3,178,480	4,104,868 2,862,176	% 99.37% 97.55	165,202 314,311
West Coast Expressway 130K FangLi to Dia An Construction Wen Reservoir Tseng-	2,058,381 3,178,480	1,969,484 2,862,176	34.69% 99.37%	30,838 314,311
West Coast Expressway 130K FangLi to Dia An Construction Taoyuan MRT Airport Line - CU03	2,058,381 1,631,685	1,969,484 1,570,640	34.69% 99.36%	30,838 60,654
San Bau Bei Tou DaYe - New Construction Taoyuan MRT Airport Line - CU03	1,631,685 1,599,813	1,570,640 1,515,723	99.36% 46.70%	39,270 60,654
Improvement plan for High Speed Railway ground access road San Bau Bei Tou DaYe - New Construction	1,210,476 1,599,813	1,156,005 1,515,723	70.82% 46.70%	38,576 39,270
Improvement plan for High Speed Railway ground access road in Changhua	1,210,476	1,156,005	70.82%	38,576

		Estimated	Percentage	Accumulated
Name of construction contract	Contract amount	construction cost Estimated	of completion Percentage	construction profit/(loss) Accumulated
Name of construction contract	Contract amount \$	construction cost \$	of completion 86.39%	construction profit/(loss) \$
Tainan Spinning Dream Mall Tainan Spinning Dream Mall Taipei City Hall Bus Station	4,785,639 5,029,591 5,029,591 \$	4,898,454 4,898,454 4,677,757 \$	86.39% 99.86%	113,289 113,289 107,731 \$
New Construction of Chaojhou Railway Station Taipei City Hall Bus Station	4,785,639 3,888,161	4,677,757 3,698,014	99.86% 91.50%	173,985 107,731
New Construction of Chaojhou Railway Station Wen Reservoir Tseng-	3,010,793 3,888,161	3,698,014 2,834,474	91.50% 98.52%	173,985 173,709
West Coast Expressway 130K FangLi to Dia An Construction Wen Reservoir Tseng-	3,010,793 2,058,381	2,834,474 1,969,741	98.52% 13.02%	173,709 11,541
West Coast Expressway 130K FangLi to Dia An Construction Taoyuan MRT Airport Line - CU03	1,595,537 2,058,381	1,969,741 1,554,941	13.02% % 99.85	40,536 11,541
San Bau Bei Tou DaYe - New Construction Taoyuan MRT Airport Line - CU03	1,595,537 1,521,905	1,430,405 1,554,941	% 17.49% 99.85	40,536 16,003
San Bau Bei Tou DaYe - New Construction Western Coast Express - WH53-1	1,521,905 1,307,465	1,310,496 1,430,405	100.00% 17.49%	3,031) 16,003 (
Improvement plan for High Speed Railway ground access road Western Coast Express - WH53-1	1,210,476 1,307,465	1,310,496 1,156,005	100.00% % 20.15	3,031) 10,976 (
Improvement plan for High Speed Railway ground access road in Changhua	1,210,476	1,156,005	% 20.15	10,976
in Changhua

(7) Other current assets (7) Other current assets (7) Other current assets (7) Other current assets

(8) Available-for-sale financial assets (8) \$YDLODEOHIRUVDOH ¿QDQFLDO DVVHWV (8) Available-for-sale financial assets (8) Available-for-sale financial

for the years ended December 31, 2015 and 2014, respectively. for the years ended December 31, 2015 and 2014, respectively. for the years ended December 31, 2015 and 2014, respectively.
B. The fair value of some of the Group's available-for-sale financial assets declined significantly below or loss. B. The fair value of some of the Group's available-for-sale financial assets declined significantly HTXLW\ WR SUR¿W RU ORVV or loss. December 31, 2014, amount of \$12,053 that was transferred from equity profitC. Details of the Group's available-for-sale pledged to as collateral are
provided in Note 8. provided in Note 8. provided in Note 8. provided in
(9) Financial assets measured at cost (9) Financial assets measured at cost (9) Financial assets measured at cost (9) Financial assets measured at cost

Items Items Items	December 31,	December 31, 2015 December 31, 2015	December 31,	December 31, 2014 December 31, 2014
Deferred sales commission Deferred sales commission commission	\$ \$ \$	324,072 324,072	\$ \$ \$	507,245 507,245
Others Others Others		17,800 17,800 17,800		14,559 14,559 14,559
	\$ \$ \$	341,872 \$ 341,872 \$		521,804 521,804 521,804
(8) Available-for-sale financial assets (8) \$YDLODEOHIRUVDOH ¿QDQFLDO DVVHWV (8) Available-for-sale financial (8) Available-for-sale financial assets
Items Items Items	December 31,	December 31, 2015 December 31, 2015	December 31,	December 31, 2014 December 31, 2014
Non-current items: Non-current items: Non-current items:
Listed ( TSE and OTC ) stocks Listed ( TSE and OTC ) stocks Listed ( TSE and OTC ) stocks	\$ \$ \$	121,852 121,852	\$ \$ \$	153,845 153,845
Emerging stocks Emerging stocks Emerging stocks		- - -		3,940 3,940 3,940
Unlisted stocks Unlisted stocks Unlisted stocks		44,561 44,561 44,561		40,101 40,101 40,101
		166,413 166,413		197,886 197,886
Valuation adjustment of available Valuation adjustment of available adjustment of available		1,398,529 1,398,529 1,398,529		1,428,192 1,428,192 1,428,192
for-sale financial assets for-sale financial assets for-sale financial assets
	\$ \$ \$	1,564,942 1,564,942 1,564,942	\$ \$ \$	1,626,078 1,626,078 1,626,078
below its initial investment cost. The Group therefore recognized impairment loss of \$12,053 for its initial investment cost. The Group therefore recognized impairment loss of \$12,053 for the year its initial investment cost. The Group therefore recognized impairment loss of \$12,053 for the year initial investment cost. The Group therefore recognized impairment loss of the year ended December 31, 2014, including the amount of \$12,053 that was transferred from ended December 31, 2014, including the amount of \$12,053 that was transferred from equity to profit ended December 31, 2014, including the amount of \$12,053 that was transferred from equity to profit December 31, 2014, HTXLW\ WR SUR¿W RU ORVV or loss. or loss. C. Details of the Group's available-for-sale financial assets pledged to others as collateral are C. Details of the Group's available-for-sale financial assets pledged to others as collateral are C. Details of the Group's available-for-sale C. Details of the Group's available-for-sale financial assets pledged to others as collateral are provided in Note 8. provided in Note 8. provided in provided in Note 8. (9) Financial assets measured at cost (9) Financial assets measured at cost (9) Financial assets measured at cost (9) Financial assets measured at cost		pledged to		the year amount of \$12,053 that was transferred from equity profit as collateral are
Items Items Items	December 31,	December 31, 2015 December 31, 2015		December 31, 2014 December 31, 2014 December 31, 2014
Non-current items: Non-current items: Non-current items:
Unlisted stocks Unlisted stocks	\$ \$ \$	887,529 887,529	\$ \$	887,529 887,529
A. Based on the Group's intention, its investment in President Energy Development Ltd. and A.Based on the Group's intention, its investment A. Based on the Group's intention, its investment in President Energy Development Ltd. and Based on the Group's intention, its investment in President Energy Development Ltd. and President International Development Corp. should be classified as 'available-for-sale financial President International Development Corp. should be classified as 'available-for-sale financial Corp. should President International Development Corp. should be classified as 'available-for-sale financial assets'. However, as President Energy Development Ltd. and President International assets'.However,as assets'. However, as President Energy Development Ltd. and President International Energy Development assets'. However, as President Energy Development Ltd. and President International Development Development Corp. stocks are not traded in an active market, and no sufficient industry Development Corp. stocks are not traded in an active market, and no sufficient industry not traded Corp. stocks are not traded in an active market, and no sufficient industry information of information of companies similar to President Energy Development Ltd. and President information of companies similar to President Energy Development Ltd. and President information of companies similar to President Energy Development Ltd. and President companies similar to President Energy Development Ltd. and President International Development International Development Corp. can be obtained, the fair value of the investment in President International Development Corp. can be obtained, the fair value of the investment in President Development Corp. can be Corp. can be obtained, the fair value of the investment in President Energy Development Ltd. and Energy Development Ltd. and President International Development Corp. stocks cannot be Energy Development Ltd. and President International Development Corp. stocks cannot be Development Ltd. International Development Corp. stocks cannot be President International Development Corp. stocks cannot be measured reliably. Accordingly, the		an active market, and		Energy Development Ltd. and as 'available-for-sale financial International industry

Items Items Items	December 31, 2015 December 31, December 31, 2015		December 31, 2014 December 31, 2014 December 31, 2014
Non-current items: Non-current items: Non-current items:
Unlisted stocks Unlisted stocks	\$ \$ \$	887,529 887,529	\$ \$	887,529 887,529

at cost'. *URXS FODVVL¿HG WKRVH VWRFNV DV µ¿QDQFLDO DVVHWV PHDVXUHG DW FRVW¶
B. Details of the Group's financial assets measured at cost pledged to others as collateral are at cost'. B. Details of the Group's financial assets measured at cost pledged to others as collateral are in Note 8.

Associates Associates Associates

(10) Investments accounted for under the equity method (10) Investments accounted for under equity method (10) Investments accounted for under equity method provided in Note 8.(10) Investments accounted for under equity method

Balance sheet Balance sheet Balance sheet

Company name Company name	Principal place Principal place of business of business	Nature of Nature of relationship relationship	Method of Method of measurement measurement
Uni President Uni President	Taiwan Taiwan	The Group holds The Group holds	Equity method Equity method
Development Corp. Development Corp.		more than 20% of more than 20% of
		voting rights voting rights

			December 31, 2015 December 31, 2015 December 31, 2015		December 31, 2014 December 31, 2014 December 31, 2014
		Carrying Carrying Carrying	Percentage of Percentage of Percentage of		Carrying Carrying Carrying	Percentage of Percentage of Percentage of
Name of associates Name of associates Name of associates		amount amount amount	ownership ownership ownership		amount amount amount	ownership ownership ownership
Geng-Ding Co., Ltd. Geng-Ding Co., Ltd. Geng-Ding Co., Ltd.	\$	\$ 326,189 \$ 326,189 326,189	30.00% 30.00% 30.00%	\$ \$ \$	326,959 326,959 326,959	30.00% 30.00% 30.00%
Uni-President Development Corp. Uni-President Development Corp.		1,365,037 1,365,037	30.00% 30.00%		1,311,431 1,311,431	30.00% 30.00%
PPG Investment Inc. PPG Investment Inc. PPG Investment Inc.		13,621 13,621 13,621	27.27% 27.27% 27.27%		17,859 17,859 17,859	27.27% 27.27% 27.27%
Queen Holdings Ltd. Queen Holdings Ltd. Queen Holdings Ltd.		372,751 372,751 372,751	27.27% 27.27% 27.27%		338,663 338,663 338,663	27.27% 27.27% 27.27%
Ming-Da Enterprise Co., Ltd. Ming-Da Enterprise Co., Ltd. Ming-Da Enterprise Co., Ltd.		166,887 166,887 166,887	20.00% 20.00% 20.00%		151,132 151,132 151,132	20.00% 20.00% 20.00%
Amida Truslink Assets Management Amida Truslink Assets Management Co., Ltd. (Note) Co., Ltd. (Note) Co., Ltd. (Note)			45.21% 45.21% 45.21% - - -		36,198 36,198 36,198	45.21% 45.21% 45.21%
		\$ 2,244,485 \$ 2,244,485 \$ 2,244,485			\$ 2,182,242 \$ 2,182,242 \$ 2,182,242
Note : As of December 31, 2015, the book value of the Company's investment in Amida Truslink Note : As of December 31, 2015, the book value of the Company's investment in Amida Truslink Note : As of December 31, 2015, the book value of the Company's investment in Amida Truslink Note : As of December 31, 2015, the book value of the Company's investment in Amida Truslink
Assets Management Co., Ltd. was below zero thus, the investment was transferred to Assets Management Co., Ltd. was below zero thus, the investment was transferred to other Assets Management Co., Ltd. was below zero thus, the investment was transferred to other
other non-current liabilities which amounted to \$137,018. non-current liabilities which amounted to \$137,018. non-current liabilities which amounted to \$137,018. non-current liabilities which amounted to \$137,018.
Associates Associates Associates Associates
A. The basic information of the associate that is material to the Group is as follows: A. The basic information of the associate that is material to the Group is as follows: A. The basic information of the associate that is material to the Group is as follows:

Company name Company name Company name		Principal place Principal place Principal place of business of business of business	Nature of Nature of Nature of relationship relationship relationship			Method of Method of Method of measurement measurement measurement
Uni President Uni President Uni President		Taiwan Taiwan Taiwan	The Group holds The Group holds The Group holds			Equity method Equity method Equity method
Development Corp. Development Corp. Development Corp.			more than 20% of more than 20% of more than 20% of
			voting rights voting rights
B. The summarized financial information of the associate that is material to the Group is as B. The summarized financial information of the associate that is material to the Group is as % 7KH VXPPDUL]HG ¿QDQFLDO	LQIRUPDWLRQ	RI WKH	DVVRFLDWH WKDW LV	PDWHULDO	WR WKH	*URXS LV DV
follows: follows: follows: follows:
Balance sheet Balance sheet Balance sheet Balance sheet

			Uni President Development Corp.			Uni President Development Corp.
			December 31, 2015 December 31, 2015 December 31, 2015			December 31, 2014 December 31, 2014 December 31, 2014

		Uni President Development Corp. Uni President Development Corp. Uni President Development Corp.
		December 31, 2015 December 31, 2015	December 31, 2014 December 31, 2014
Current assets Current assets Current assets	\$ \$ \$	315,715 \$ 315,715 \$ 315,715 \$	1,157,049 1,157,049 1,157,049
Non-current assets Non-current assets Non-current assets		9,622,107 9,622,107 9,622,107	9,209,813 9,209,813 9,209,813
Current liabilities Current liabilities Current liabilities	( ( (	3,627,239) ( 3,627,239) ( 3,627,239) (	2,898,391) 2,898,391) 2,898,391)
Non-current liabilities Non-current liabilities Non-current liabilities	( ( (	1,760,396)( 1,760,396) ( 1,760,396) (	3,097,036) 3,097,036) 3,097,036)
Total net assets Total net assets Total net assets	\$ \$ \$	4,550,187 \$ 4,550,187 \$ 4,550,187 \$	4,371,435 4,371,435 4,371,435
Share in associate's net assets Share in associate's net assets Share in associate's net assets Statements of comprehensive income	\$ \$ \$	1,365,037\$ 1,365,037 \$ 1,365,037 \$	1,311,431 1,311,431 1,311,431

Statements of comprehensive income

	Years ended December 31,
	2015		2014
Revenue 49 49	\$ 1,066,653	\$	1,073,558
Profit for the year from continuing operations	\$ 221,365 \$		226,607
Total comprehensive income	\$ 221,365 \$		226,607

C. The carrying amount of the Group's interests in all individually immaterial associates and the Group's share of the operating results are summarized below: As of December 31, 2015 and 2014, the carrying amount of the Group's individually immaterial associates amounted to \$742,430 and \$870,811, respectively. C. The carrying amount of the Group's interests in all individually immaterial associates and the Group's share of the operating results are summarized below: As of December 31, 2015 and 2014, the carrying amount of the Group's individually immaterial associates amounted to \$742,430 and \$870,811, respectively. Group's share of the operating results are summarized below: As of December 31, 2015 and 2014, the carrying amount of the Group's individually immaterial associates amounted to \$742,430 and \$870,811, respectively.

E. Share of profit of associates and joint ventures accounted for using equity method was \$11,610 ( 6KDUH RI SUR¿W RI DVVRFLDWHV DQG MRLQW YHQWXUHV DFFRXQWHG IRU XVLQJ HTXLW\ PHWKRG ZDV E. Share of profit of associates and joint ventures accounted for using equity method was \$11,610

D. The Group's investments had no quoted market price. D. The Group's investments had no quoted market price. D. The Group's investments had no quoted market price.
and \$82,945 for the years ended December 31, 2015 and 2014, respectively. and \$82,945 for the years ended December 31, 2015 and 2014, respectively. and \$82,945 for the years ended December 31, 2015 and 2014, respectively.
F. Details of the Group's investments accounted for under equity method pledged to others as collateral are provided in Note 8. collateral are provided in Note 8. collateral are provided in Note 8.
(11) Property, plant and equipment (11) Property, plant and equipment (11) Property, plant and equipment
A. Details of book values are as follows: A. Details of book values are as follows: A. Details of book values are as follows:

	Years ended December 31, Years ended December 31,
	2015 2015		2014 2014
\$ Profit for the year from continuing operations Profit for the year from continuing operations	\$ 56,593 \$ 56,593	\$	435,881 435,881
\$ Total comprehensive income Total comprehensive income	\$ 56,593 \$ 56,593	\$	435,881 435,881

F. Details of the Group's investments accounted for under equity method pledged to others as F. Details of the Group's investments accounted for under equity method pledged to others as

	December 31, 2015 December 31, 2015	December 31, 2014 December 31, 2014
Land Land	\$ 2,858,947 \$ \$ 2,858,947 \$	2,858,947 2,858,947
Buildings	3,391,429	3,557,664
Buildings	3,391,429	3,557,664
Machinery and equipment	8,373	9,809
Machinery and equipment	8,373	9,809
Computer and communication equipment	15,605	19,727
Computer and communication equipment	15,605	19,727
Transportation equipment	4,788	4,333
Transportation equipment	4,788	4,333
Office equipment	366,507	434,321
Office equipment	366,507	434,321
Leasehold improvements	25,648	-
Leasehold improvements	25,648	-
Other equipment	66,339	70,571
Other equipment	66,339	70,571
Construction in progress and equipment Construction in progress and equipment
under acceptance	5,296	2,594
under acceptance	5,296	2,594
	\$ 6,742,932 \$ \$ 6,742,932 \$	6,957,966 6,957,966

Construction in progress and equipment Construction in progress and equipment

B. Changes in property, plant and equipment for the year are as follows: B. Changes in property, plant and equipment for the year are as follows:

				Year ended December 31, 2015
	Opening net					Closing net
Cost	book amount	Additions		Disposals	Reclassifications	book amount
Land	\$ 2,858,947 \$		- \$	- \$	- \$	2,858,947
Buildings	4,465,549	3,809	(	23,429)	-	4,445,929
Machinery and equipment	14,476	-		-	-	14,476
Computer and communication equipment	59,714	1,948		-	-	61,662
Transportation equipment	11,729	1,200 (		272)	-	12,657
Office equipment	788,300	18,529	(	6,273)	388	800,944
Leasehold improvements	47,000	-		-	26,533	73,533
Other equipment	90,999	3,586	(	2,817)	167	91,935
Construction in progress and
equipment under acceptance	2,594	29,623		- (	26,921)	5,296
	\$ 8,339,308 \$	58,695 (\$		32,791) \$	167 \$	8,365,379
				Year ended December 31, 2014
	Opening net					Closing net
Cost	book amount	Additions		Disposals	Reclassifications	book amount
Land	\$ 2,790,924 \$		- (\$	1,204) \$	69,227 \$	2,858,947
Buildings	4,355,227	27,406	(	28,642)	111,558	4,465,549
Machinery and equipment	14,286	190		-	-	14,476
Computer and communication equipment	52,016	8,004 (		306)	-	59,714
Transportation equipment	11,587	1,142	(	1,000)	-	11,729
Office equipment	785,304	70,076	(	95,601)	28,521	788,300
Leasehold improvements	47,000	-		-	-	47,000
Other equipment	95,208	4,418	(	9,498)	871	90,999
Construction in progress and
prepayments for equipment	105,344	1,178		- (	103,928)	2,594
	\$ 8,256,896 \$	112,414 (\$		136,251) \$	106,249 \$	8,339,308
				Year ended December 31, 2015
	Opening net					Closing net
Accumulated depreciation	book amount	Additions		Disposals	Reclassifications	book amount
Buildings	\$ 907,885 \$	170,044 (\$		23,429) \$	- \$	1,054,500
Machinery and equipment	4,667	1,436		-	-	6,103
Computer and communication equipment	39,987	6,070		-	-	46,057
Transportation equipment	7,396	691 (		218)	-	7,869
Office equipment	353,979	86,705 (		6,247)	-	434,437
Leasehold improvements	47,000	885		-	-	47,885
Other equipment	20,428	5,168		-	-	25,596
	\$ 1,381,342 \$	270,999 (\$		29,894)	\$ -	\$ 1,622,447

C. Details of the Group's property, plant and equipment pledged to others as collateral are C. Details of the Group's property, plant and equipment pledged to others as collateral are

provided in Note 8. provided in Note 8. C. Details of the Group's property, plant and equipment pledged to others as collateral are provided in Note 8. C. Details of the Group's property, plant and equipment pledged to others as collateral are provided in Note 8.

(12) Investment property (12) Investment property (12) Investment property (12) Investment property

A. Details of book values are as follows: A. Details of book values are as follows: A. Details of book values are as follows: A. Details of book values are as follows:

B. Changes in investment property for the year are as follows: B. Changes in investment property for the year are as follows: B. Changes in investment property for the year are as follows: B. Changes in investment property for the year are as follows:

	Opening net Opening net		Year ended December 31, 2014		Closing net Closing net
Accumulated depreciation Accumulated depreciation	Opening net book amount book amount	Additions Additions	Disposals Disposals	Reclassifications Reclassifications	Closing net book amount book amount
Accumulated depreciation Buildings Buildings	book amount \$ 769,370 \$ \$ 769,370 \$	Additions 167,157 (\$ 167,157 (\$	Disposals 28,642) \$ 28,642) \$	Reclassifications - \$ - \$	book amount 907,885 907,885
Buildings Machinery and equipment Machinery and equipment	\$ 3,255 3,255	769,370 \$ 1,412 1,412	167,157 (\$ 28,642) \$ - -	- -	- \$ 907,885 4,667 4,667
Machinery and equipment Computer and communication Computer and communication equipment Computer and communication equipment	34,673 34,673	3,255 1,412 5,620 ( 5,620 ( 34,673	306) 306) 5,620 ( 306)	- - - - -	4,667 39,987 39,987 39,987
equipment Transportation equipment Transportation equipment	7,182 7,182	785 ( 785 (	571) 571)	- -	7,396 7,396
Transportation equipment Office equipment Office equipment	363,515 363,515	7,182 85,830 ( 85,830 (	785 ( 571) 95,366) 95,366)	- - -	7,396 353,979 353,979
Office equipment Leasehold improvements Leasehold improvements	363,515 47,000 47,000	- -	85,830 ( 95,366) - -	- - -	353,979 47,000 47,000
Leasehold improvements Other equipment Other equipment	17,003 17,003	47,000 5,058 ( 5,058 ( 17,003	- 1,633) 1,633) 5,058 ( 1,633)	- - - -	47,000 20,428 20,428 20,428
Other equipment	\$ 1,241,998 \$ \$ 1,241,998 \$ \$	265,862 (\$ 265,862 (\$ 1,241,998 \$	126,518) 126,518) 265,862 (\$ 126,518)	- \$ - \$ - \$ -	\$ 1,381,342 \$ 1,381,342 \$ 1,381,342

	Year ended December 31, 2014 Year ended December 31, 2014

	December 31, 2015 December 31, 2015 December 31, 2015	December 31, 2014 December 31, 2014 December 31, 2014
Land Land \$ Land \$	\$ 265,550 \$ 265,550 \$ 265,550 \$	203,494 203,494 203,494
Leased assets-land Leased assets-land	2,592,206 2,592,206	2,592,342 2,592,342
Leased assets-land Leased assets-buildings Leased assets-buildings	2,592,206 3,186,071 3,186,071	2,592,342 3,279,719 3,279,719
Leased assets-buildings \$	\$ 3,186,071 6,043,827 \$ 6,043,827	\$ 3,279,719 6,075,555 6,075,555
\$	6,043,827	\$ 6,075,555

		Year ended December 31, 2015 Year ended December 31, 2015 Opening net
Cost	Opening net Opening net book amount	Additions	Disposals	Reclassifications	Closing net Closing net Closing net book amount
Cost Cost Land	book amount book amount \$	Additions Additions 203,494 \$	Disposals Disposals - \$	Reclassifications Reclassifications - \$ 62,056 \$	book amount book amount 265,550
Land Land Leased assets-land	\$ 203,494 \$ \$ 203,494 \$ 2,592,341	- \$ - \$	- \$ - \$ - ( 135)	62,056 \$ 62,056 \$ -	265,550 265,550 2,592,206
Leased assets-land Leased assets-land Leased assets-buildings	2,592,341 3,941,751 2,592,341	- ( - (	135) 1,084 ( 10,337) 135)	- - -	2,592,206 3,932,498 2,592,206
Leased assets-buildings Leased assets-buildings	3,941,751 \$ 3,941,751	1,084 ( 6,737,586 \$ 1,084 (	10,337) 1,084 (\$ 10,472) \$ 10,337)	- 62,056 \$ -	3,932,498 6,790,254 3,932,498
	\$ 6,737,586 \$ \$ 6,737,586 \$	1,084 (\$ 1,084 (\$	10,472) \$ 10,472) \$ Year ended December 31, 2014	62,056 \$ 62,056 \$	6,790,254 6,790,254

Cost		book amount Opening net Opening net	Additions		Disposals		Reclassifications	book amount Closing net Closing net
Land Cost Cost		\$ 1,741,924 \$ book amount book amount	Additions Additions	- \$	Disposals Disposals	- (\$	1,538,430) \$ Reclassifications Reclassifications	203,494 book amount book amount
Leased assets-land Land Land	\$ \$	3,204,530 1,741,924 \$ 1,741,924 \$ 3,949,804	- \$ - \$ 3,288 (	-	- (\$ - (\$ 8,440) (	- (	612,189) 1,538,430) \$ 1,538,430) \$ 2,901)	2,592,341 203,494 203,494 3,941,751
Leased assets-buildings Leased assets-land Leased assets-land		3,204,530 3,204,530 \$ 8,896,258 \$	- - 3,288 (\$		- ( - ( 8,440) (\$		612,189) 612,189) 2,153,520) \$	2,592,341 2,592,341 6,737,586
Leased assets-buildings Leased assets-buildings		3,949,804 3,949,804	3,288 ( 3,288 (		8,440) ( 8,440) (		2,901) 2,901)	3,941,751 3,941,751
	\$ \$	8,896,258 \$ 8,896,258 \$	3,288 (\$ 3,288 (\$		8,440) (\$ 8,440) (\$		2,153,520) \$ 2,153,520) \$	6,737,586 6,737,586

Year ended December 31, 2014 Opening net Closing net Year ended December 31, 2014

			e as follows:
--	--	--	---------------

D. As of December 31, 2015 and 2014, the fair value of the investment property held by the Group was \$12,932,299 and \$12,935,936, respectively. The Group management estimated the fair value based on market evidence on transaction price of similar property and assessed value. E. Information about the investment property that was pledged to others as collateral is provided D. As of December 31, 2015 and 2014, the fair value of the investment property held by the Group was \$12,932,299 and \$12,935,936, respectively. The Group management estimated the fair value based on market evidence on transaction price of similar property and assessed value. E. Information about the investment property that was pledged to others as collateral is provided D. As of December 31, 2015 and 2014, the fair value of the investment property held by the Group was \$12,932,299 and \$12,935,936, respectively. The Group management estimated the fair value based on market evidence on transaction price of similar property and assessed value. D. As of December 31, 2015 and 2014, the fair value of the investment property held by the Group was \$12,932,299 and \$12,935,936, respectively. The Group management estimated the fair value based on market evidence on transaction price of similar property and assessed value. period -\$ -\$
in Note 8. (13) Intangible assets in Note 8. (13) Intangible assets E. Information about the investment property that was pledged to others as collateral is provided in Note 8. E. Information about the investment property that was pledged to others as collateral is provided in Note 8.

C. Rental income from the lease of the investment property and direct operating expenses arising from the investment property are shown below: C. Rental income from the lease of the investment property and direct operating expenses arising from the investment property are shown below: C. Rental income from the lease of the investment property and direct operating expenses arising from the investment property are shown below: C. Rental income from the lease of the investment property and direct operating expenses arising Leased assets-buildings \$ 583,226 \$ 86,931 (\$ 7,737) (\$ 389) \$ 662,031

A. Details of book values are as follows: A. Details of book values are as follows: (13) Intangible assets (13) Intangible assets

	Year ended December 31, 2015
	Opening net		Year ended December 31, 2015		Closing net
Accumulated depreciation	book amount	Additions	Disposals	Reclassifications	book amount
Leased assets-buildings Accumulated depreciation	Opening net \$ 662,031 \$ book amount	86,072 (\$ Additions	Year ended December 31, 2015 1,676) Disposals	\$ - Reclassifications	Closing net \$ 746,427 book amount
	Opening net				Closing net
Leased assets-buildings	\$	662,031 \$	Year ended December 31, 2014 86,072 (\$ 1,676)	\$ -	\$ 746,427
Accumulated depreciation Leased assets-buildings	book amount Opening net \$	Additions 662,031 \$	Disposals 86,072 (\$ 1,676) Year ended December 31, 2014	Reclassifications \$ -	book amount Closing net \$ 746,427
Accumulated depreciation	book amount Opening net	Additions	Disposals Year ended December 31, 2014	Reclassifications	book amount Closing net

from the investment property are shown below:	Years ended December 31, 2015 2014
	2015	2014 Years ended December 31,
Rental revenue from the lease of the investment Rental revenue from the lease of the investment \$ property	2015 295,085	2014 \$ 299,911
property Rental revenue from the lease of the investment Direct operating expenses arising from the investment	\$ 295,085 \$	299,911
Direct operating expenses arising from the investment property \$ property that generated rental income in the period property that generated rental income in the period Direct operating expenses arising from the investment	\$ 295,085 \$ 157,872 \$ 157,872 \$	299,911 \$ 165,200 165,200
Direct operating expenses arising from the investment property that generated rental income in the period Direct operating expenses arising from the investment property that did not generate rental income in the property that did not generate rental income in the Direct operating expenses arising from the investment	\$ 157,872 \$	165,200
period period \$ property that did not generate rental income in the	- \$ -	\$ - \$ -

Service concession	\$	December 31, 2015 2,300,439 \$ December 31, 2015	December 31, 2014 2,361,692 December 31, 2014
Service concession Software Service concession	\$ \$	2,300,439 1,870 2,300,439 \$	\$ 2,361,692 803 2,361,692
Software Trademarks and licences Software		1,870 214 1,870	803 500 803
Trademarks and licences Trademarks and licences	\$	214 2,302,523 \$ 214	500 2,362,995 500
	\$ \$	2,302,523 2,302,523 \$	\$ 2,362,995 2,362,995

A. Details of book values are as follows: A. Details of book values are as follows:

B. Changes in intangible assets for the year are as follows: B. Changes in intangible assets for the year are as follows:

C. Details of amortization on intangible assets are as follows: C. Details of amortization on intangible assets are as follows: C. Details of amortization on intangible assets are as follows:

B. Changes in intangible assets for the year are as follows:				Year ended December 31, 2015
	Opening net			Year ended December 31, 2015			Closing net
Cost	Opening net book amount	Additions		Disposals	Reclassifications		Closing net book amount
Cost Service concession	book amount \$ 2,868,372 \$	Additions - \$		Disposals - \$	Reclassifications - \$		book amount 2,868,372
Service concession Software	\$ 2,868,372 \$ 19,559	1,372	(	- \$ 17,169)	- \$ -	- \$	2,868,372 3,762
Software Trademarks and licences	19,559 3,139	1,372 -		( 17,169) -	- -		3,762 3,139
Trademarks and licences	3,139 \$ 2,891,070 \$	1,372 (\$	-	- 17,169)	- \$ -	\$	3,139 2,875,273
	\$ 2,891,070 \$	1,372 (\$		17,169) Year ended December 31, 2014	\$ -	\$	2,875,273
	Opening net			Year ended December 31, 2014			Closing net
Cost	Opening net book amount	Additions		Disposals	Reclassifications		Closing net book amount
Cost Service concession Service concession	book amount \$ 2,868,372 \$ \$ 2,868,372 \$	Additions - \$		Disposals - \$ - \$	Reclassifications - \$ - \$	- \$	book amount 2,868,372 2,868,372
Software Software	18,189 18,189	1,370 1,370		- -	- -		19,559 19,559
Trademarks and licences Trademarks and licences	3,139 3,139	-	-	- -	- -		3,139 3,139
	\$ 2,889,700 \$ \$ 2,889,700 \$	1,370 1,370		\$ - \$ -	\$ - \$ -	\$ \$	2,891,070 2,891,070
				Year ended December 31, 2015 Year ended December 31, 2015
	Opening net Opening net						Closing net Closing net
Accumulated Amortization Accumulated Amortization	book amount book amount	Additions Additions		Disposals Disposals	Reclassifications Reclassifications		book amount book amount
Service concession Service concession	\$ 506,680 \$ \$ 506,680 \$	61,253 \$ 61,253 \$		- \$	- \$ - \$	- \$	567,933 567,933
Software Software	18,756 18,756	305 305	(	17,169) ( 17,169)	- -		1,892 1,892
Trademarks and licences Trademarks and licences	2,639 2,639	286 286		- -	- -		2,925 2,925
	\$ 528,075 \$ \$ 528,075 \$	61,844 (\$ 61,844 (\$		17,169) 17,169)	\$ - \$ -	\$ \$	572,750 572,750
				Year ended December 31, 2014 Year ended December 31, 2014
	Opening net Opening net						Closing net Closing net
Accumulated Amortization Accumulated Amortization	book amount book amount	Additions Additions		Disposals Disposals	Reclassifications Reclassifications		book amount book amount
Service concession Service concession	\$ 445,427 \$ \$ 445,427 \$	61,253 \$ 61,253 \$		- \$	- \$ - \$	- \$	506,680 506,680
Software Software	16,902 16,902	1,854 1,854		- -	- -		18,756 18,756
Trademarks and licences Trademarks and licences	2,355 2,355	284 284		- -	- -		2,639 2,639
	\$ 464,684 \$ \$ 464,684 \$	63,391 63,391		\$ - \$ -	\$ - \$ -	\$ \$	528,075 528,075

		Years ended December 31, Years ended December 31,
		2015 2015	2014 2014
Operating costs Operating costs	\$ \$	61,253 \$ 61,253	\$	61,253 61,253
Administrative expenses Administrative expenses		591 591		2,138 2,138
	\$ \$	61,844 \$ 61,844	\$	63,391 63,391

54 For details of pledged assets, please refer to Note 8. For details of pledged assets, please refer to Note 8.

(14) Short-term borrowings (14) Short-term borrowings

	December 31, 2015	December 31, 2014
Unsecured borrowings	\$ 635,000 \$	1,623,084
Secured borrowings	1,991,373	1,682,500
	\$ 2,626,373 \$	3,305,584
Interest rate range	1.92%~2.51%	1.92%~2.59%

Financial Information

(15) Short-term notes payable (15) Short-term notes payable

B. For details of pledged assets, please refer to Note 8. B. For details of pledged assets, please refer to Note 8. B. For details of pledged assets, please refer to Note 8.

A. The above commercial papers were issued by banks and bills financial institutions. \$ 7KH DERYH FRPPHUFLDO SDSHUV ZHUH LVVXHG E\ EDQNV DQG ELOOV ¿QDQFLDO LQVWLWXWLRQV B. For details of pledged assets, please refer to Note 8.

(16) Receipts in advance (16) Receipts in advance (16) Receipts in advance (16) Receipts in advance

		December 31, 2015 December 31, 2015	December 31, 2014 December 31, 2014
Commercial papers Commercial papers Commercial papers Less: Unamortized discount	\$ \$ \$ (	1,649,600 \$ 1,649,600 \$ 1,649,600 \$ 632) (	2,605,000 2,605,000 2,605,000 2,482)
Less: Unamortized discount Less: Unamortized discount	( ( \$ \$	632) ( 632) ( 1,648,968 \$ 1,648,968 \$	2,482) 2,482) 2,602,518 2,602,518
Interest rate range	\$	1,648,968 \$ 0.55%~2.25% 0.55%~2.25%	2,602,518 0.79%~2.48% 0.79%~2.48%
Interest rate range Interest rate range A. The above commercial papers were issued by banks and bills financial institutions.		0.55%~2.25%	0.79%~2.48%

(17) Bonds payable (17) Bonds payable (17) Bonds payable

Items Items	December 31, 2015 December 31, 2015	December 31, 2014 December 31, 2014
Items Advance real estate receipts Advance real estate receipts	December 31, 2015 \$ 1,592,844 \$ \$ 1,592,844 \$	December 31, 2014 2,728,482 2,728,482
Advance real estate receipts Advance rent Advance rent	\$ 1,592,844 \$ 158,283 158,283	2,728,482 192,169 192,169
Advance rent Other advance receipts Other advance receipts	158,283 124,335 124,335	192,169 116,484 116,484
Other advance receipts	124,335 \$ 1,875,462 \$ \$ 1,875,462 \$	116,484 3,037,135 3,037,135
	\$ 1,875,462 \$	3,037,135

		December 31, 2014 December 31, 2014
\$		December 31, 2014 2,000,000 2,000,000
2,500,000		2,000,000 2,500,000 2,500,000
\$ 2,500,000 4,500,000	\$	2,500,000 4,500,000 4,500,000
\$ \$ \$	December 31, 2015 December 31, 2015 December 31, 2015 2,500,000 4,500,000	2,000,000 \$ 2,000,000 \$ 2,000,000 \$ \$

A. The Group issued secured ordinary bonds payable in July 2012. The significant terms of the \$ 4,500,000 \$ 4,500,000 A. The Group issued secured ordinary bonds payable in July 2012. The significant terms of the A. The Group issued secured ordinary bonds payable in July 2012. The significant terms of the bonds are as follows: \$ 7KH *URXS LVVXHG VHFXUHG RUGLQDU\ ERQGV SD\DEOH LQ -XO\ 7KH VLJQL¿FDQW WHUPV RI WKH bonds are as follows:
bonds are as follows: bonds are as follows: (a) Total issue amount: \$2,000,000
(a)Total issue amount: \$2,000,000 (a)Total issue amount: \$2,000,000 (a)Total issue amount: \$2,000,000 (b) Issue price: At par value of \$100 per bond
(b)Issue price: At par value of \$100 per bond (b)Issue price: At par value of \$100 per bond (c) Coupon rate: 1.33%
(b)Issue price: At par value of \$100 per bond (c)Coupon rate: 1.33% (c)Coupon rate: 1.33% (c)Coupon rate: 1.33% (d) Terms of interest repayment: The bonds interest is calculated on simple rate every year starting July 2012 based on the coupon rate.
(d)Terms of interest repayment: The bonds interest is calculated on simple rate every year (d)Terms of interest repayment: The bonds interest is calculated on simple rate every year (e) Repayment term: The bonds are repaid upon the maturity of the bonds.
(d)Terms of interest repayment: The bonds interest is calculated on simple rate every year (f) Period: 5 years, from July 12, 2012 to July 12, 2017
55 55 (g) The way of security: The bonds are secured by Bank of Taiwan.
55 (h) Guarantee Bank: The bonds are guaranteed by Mega International Commercial Bank.
% 7KH *URXS LVVXHG VHFXUHG RUGLQDU\ ERQGV SD\DEOH LQ 1RYHPEHU 7KH VLJQL¿FDQW WHUPV of the bonds are as follows:
(a) Total issue amount: \$2,500,000
(b) Issue price: At par value of \$100 per bond
(c) Coupon rate: 1.55%
(d) Terms of interest repayment: The bonds interest is calculated on simple rate every year starting November 2013 based on the coupon rate.
(e) Repayment term: The bonds are repaid upon the maturity of the bonds.
(f) Period: 5 years, from November 21, 2013 to November 21, 2018
(g) The way of security: \$1.5 billion and \$1 billion secured by Bank of Taiwan and Agricultural Bank of Taiwan , respectively.

(h) Guarantee Bank: The bonds are guaranteed by Taipei Fubon Commercial Bank. (18) Long-term borrowings (18) Long-term borrowings

(h)Guarantee Bank: The bonds are guaranteed by Taipei Fubon Commercial Bank.

A. For details of pledged assets, please refer to Note 8. A. For details of pledged assets, please refer to Note 8.

		December 31, 2015	December 31, 2014
Secured bank borrowings	\$	9,635,346 \$	9,313,419
Unsecured bank borrowings		270,000	447,500
		9,905,346	9,760,919
Less: Current portion	(	474,592) (	2,111,470)
	\$	9,430,754 \$	7,649,449
Range of maturity dates		2016.06.24~2027.11.02 2015.03.18~2027.11.02
Range of maturity rates		1.74%~3.16%	1.82%~3.16%

B. For details of restrictive covenants, please refer to Note 9. B. For details of restrictive covenants, please refer to Note 9.
(19) Provisions-replacement cost (19) Provisions-replacement cost (19) Provisions-replacement cost

(20) Pension (20) Pension (20) Pension

A.(a) The Company and its domestic subsidiaries have a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees' service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company and its domestic subsidiaries contribute monthly an amount equal to 2% of the employees' monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company and its domestic subsidiaries would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is not enough to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company and its domestic subsidiaries will make contribution for the deficit by next March. (b) The amounts recognised in the balance sheet are determined as follows: \$ D? 7KH &RPSDQ\ DQG LWV GRPHVWLF VXEVLGLDULHV KDYH D GH¿QHG EHQH¿W SHQVLRQ SODQ LQ accordance with the Labor Standards Law, covering all regular employees' service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism XQGHU WKH /DZ 8QGHU WKH GH¿QHG EHQH¿W SHQVLRQ SODQ WZR XQLWV DUH DFFUXHG IRU HDFK \HDU RI VHUYLFH IRU WKH ¿UVW \HDUV DQG RQH XQLW IRU HDFK DGGLWLRQDO \HDU WKHUHDIWHU VXEMHFW WR D PD[LPXP RI XQLWV 3HQVLRQ EHQH¿WV DUH EDVHG RQ WKH QXPEHU RI XQLWV DFFUXHG and the average monthly salaries and wages of the last 6 months prior to retirement. The Company and its domestic subsidiaries contribute monthly an amount equal to 2% of the employees' monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company and its domestic subsidiaries would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is not enough to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company and its domestic VXEVLGLDULHV ZLOO PDNH FRQWULEXWLRQ IRU WKH GH¿FLW E\ QH[W 0DUFK A.(a) The Company and its domestic subsidiaries have a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees' service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company and its domestic subsidiaries contribute monthly an amount equal to 2% of the employees' monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company and its domestic subsidiaries would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is not enough to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company and its domestic subsidiaries will make contribution for the deficit by next March.

		Years ended December 31, Years ended December 31,
		2015	2014
At January 1	\$	2015 81,720 \$	2014	79,071
At January 1 Additions	\$	81,720 \$ 30,394		79,071 27,210
Additions Used	56 (	30,394 27,597) (		27,210 24,561)
Used At December 31 At December 31	( \$ \$	27,597) ( 84,517 \$ 84,517 \$		24,561) 81,720 81,720

		December 31, 2015 December 31, 2015		December 31, 2014 December 31, 2014
Present value of defined benefit obligation (\$ Present value of defined benefit obligation (\$		199,398) (\$ 199,398) (\$		180,831) 180,831)
Fair value of plan assets Fair value of plan assets		58,323 58,323		51,440 51,440
Net defined benefit liability Net defined benefit liability	(\$ (\$	141,075) 141,075)	(\$ (\$	129,391) 129,391)

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

F? &KDQJHV LQ QHW GH¿QHG EHQH¿W OLDELOLW\ DUH DV IROORZV (c) Changes in net defined benefit liability are as follows: (c) Changes in net defined benefit liability are as follows:

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

	Present value of
	Present value of defined benefit	Fair value of	Net defined
	defined benefit obligation	Fair value of plan assets	Net defined benefit liability
Year ended December 31, 2015	obligation	plan assets	benefit liability
Year ended December 31, 2015 At January 1	(\$ 180,831) \$	51,440 (\$	129,391)
At January 1 Current service cost	(\$ 180,831) \$ ( 1,667)	51,440 (\$ - (	129,391) 1,667)
Current service cost Interest (expense) income	( 1,667) ( 3,552) ( 3,552)	1,424 ( 1,424 (	- ( 1,667) 2,128) 2,128)
Interest (expense) income	( 186,050)	52,864 (	133,186)
Remeasurement:	( 186,050)	52,864 (	133,186)
Remeasurement: Change in financial assumptions (	5,280)	- (	5,280)
Change in financial assumptions ( Experience adjustments	5,280) ( 8,068) ( 8,068)	439 ( 439 (	- ( 5,280) 7,629) 7,629)
Experience adjustments	( 13,348)	439 (	12,909)
Pension fund contribution	( 13,348) -	439 ( 5,020	12,909) 5,020
Pension fund contribution At December 31	- (\$ 199,398) \$ (\$ 199,398) \$	5,020 58,323 (\$ 58,323 (\$	5,020 141,075) 141,075)
At December 31
	Present value of Present value of
	defined benefit defined benefit obligation	Fair value of Fair value of plan assets	Net defined Net defined benefit liability
Year ended December 31, 2014	obligation	plan assets	benefit liability
Year ended December 31, 2014 At January 1	(\$ 183,336) \$	53,987 (\$	129,349)
At January 1 Current service cost	(\$ 183,336) \$ ( 1,558)	53,987 (\$ - (	129,349) 1,558)
Current service cost Interest (expense) income	( 1,558) ( 3,773)	1,225 (	- ( 1,558) 2,548)
Interest (expense) income	( 3,773) ( 188,667)	1,225 ( 55,212 (	2,548) 133,455)
Remeasurement:	( 188,667)	55,212 (	133,455)
Remeasurement: Experience adjustments	( 5,097)	- (	5,097)
Experience adjustments Pension fund contribution	( 5,097) -	5,142	- ( 5,097) 5,142
Pension fund contribution Paid pension	- 12,933 (	5,142 8,914)	5,142 4,019
Paid pension At December 31	12,933 ( (\$ 180,831) \$	8,914) 51,440 (\$	4,019 129,391)

	Years ended December 31, Years ended December 31, 2015 2014
	2015 1.70%	2014 1.80%~2.00%
Discount rate Discount rate	1.70% 1.50%~2.00%	1.80%~2.00% 1.50%~2.00%
Future salary increases Future salary increases	1.50%~2.00%	1.50%~2.00%
Future mortality rate was estimated based on the 5th Taiwan Standard Ordinary Experience

Mortality Table. Mortality Table. Future mortality rate was estimated based on the 5th Taiwan Standard Ordinary Experience Mortality Table.

At December 31 (\$ 180,831) \$ 51,440 (\$ 129,391)

(e)Expected contributions to the defined benefit pension plans of the Group for the year ending (e) Expected contributions to the defined benefit pension plans of the Group for the year

%HFDXVH WKH PDLQ DFWXDULDO DVVXPSWLRQ FKDQJHG WKH SUHVHQW YDOXH RI GH¿QHG EHQH¿W obligation is affected. The analysis was as follows: Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows: Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

The sensitivity analysis above was arrived at based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension The sensitivity analysis above was arrived at based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same. the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension

B. (a)Effective July 1, 2005, the Company and its domestic subsidiaries have established a defined contribution pension plan (the "New Plan") under the Labor Pension Act (the "Act"), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiaries contribute monthly an amount based on 6% of the employees' monthly salaries and wages to the employees' individual pension accounts at the Bureau of Labor B. (a) Effective July 1, 2005, the Company and its domestic subsidiaries have established a defined contribution pension plan (the "New Plan") under the Labor Pension Act (the "Act"), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiaries contribute monthly an amount based on 6% of the employees' monthly salaries and wages to the employees' individual pension accounts DW WKH %XUHDX RI /DERU ,QVXUDQFH 7KH EHQH¿WV DFFUXHG DUH SDLG PRQWKO\ RU LQ OXPS VXP contribution pension plan (the "New Plan") under the Labor Pension Act (the "Act"), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiaries contribute monthly an amount based on 6% of the employees' monthly salaries and wages to the employees' individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of

liability in the balance sheet are the same. December 31, 2016 are \$4,561. ending December 31, 2016 are \$4,561. (e)Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2016 are \$4,561.
Insurance. The benefits accrued are paid monthly or in lump sum upon termination of upon termination of employment. B. (a)Effective July 1, 2005, the Company and its domestic subsidiaries have established a defined employment.
employment. domestic subsidiaries for the years ended December 31, 2015 and 2014 were \$60,853 and \$68,720, respectively. \$68,720, respectively. \$68,720, respectively.
(21) Share-based payment-employee compensation plan (21) Share-based payment-employee compensation plan
(21) Share-based payment-employee compensation plan A. For the year ended December 31, 2015, the Group's share-based payment: None. A. For the year ended December 31, 2015, the Group's share-based payment: None. A. For the year ended December 31, 2015, the Group's share-based payment: None.
B. For the year ended December 31, 2014, the Group's share-based payment arrangement was as follows: B. For the year ended December 31, 2014, the Group's share-based payment arrangement was as follows:

(b)The pension costs under the defined contribution pension plans of the Company and its E? 7KH SHQVLRQ FRVWV XQGHU WKH GH¿QHG FRQWULEXWLRQ SHQVLRQ SODQV RI WKH &RPSDQ\ DQG LWV domestic subsidiaries for the years ended December 31, 2015 and 2014 were \$60,853 and (b)The pension costs under the defined contribution pension plans of the Company and its domestic subsidiaries for the years ended December 31, 2015 and 2014 were \$60,853 and

B. For the year ended December 31, 2014, the Group's share-based payment arrangement was as

	Discount rate	Discount rate	Future salary increases	Future salary increases
	Increase Increase	Decrease Decrease	Increase Increase	Decrease Decrease
	1.00% 1.00%	1.00% 1.00%	1.00% 1.00%	1.00% 1.00%
December 31, 2015 December 31, 2015
Effect on present value of Effect on present value of defined benefit obligation defined benefit obligation	(\$ 18,167) \$ (\$ 18,167) \$	20,951 20,951	\$ 18,629 \$ 18,629	(\$ 16,569) (\$ 16,569)

C. The fair value of stock options granted on grant date is measured using the Black-Scholes C. The fair value of stock options granted on grant date is measured using the Black-Scholes C. The fair value of stock options granted on grant date is measured using the Black-Scholes

option-pricing model. Relevant information is as follows: option-pricing model. Relevant information is as follows: option-pricing model. Relevant information is as follows:

Type of		Quantity	Contract	Vesting
Type of arrangements arrangements	Grant date Grant date	Quantity granted granted	Contract period period	Vesting conditions conditions
Cash capital increase reserved for Cash capital increase reserved for	2014.01.13 2014.01.13	30,000 30,000	NA NA	Immediately Immediately
employees employees		(In thousand shares) (In thousand shares)

The sensitivity analysis above was arrived at based on one assumption which changed while liability in the balance sheet are the same.

year before the grant date D. For the year ended December 31, 2014, the Group's salary expense arising from share-based year before the grant date

59 Note: Expected volatility is estimated based on the Company's average stock price for the latest Note: Expected volatility is estimated based on the Company's average stock price for the latest

reserved for employees		(Note)

D. For the year ended December 31, 2014, the Group's salary expense arising from sharebased payment transactions of cash capital increase reserved for employees pre-emption was \$73,500. D. For the year ended December 31, 2014, the Group's salary expense arising from share-based payment transactions of cash capital increase reserved for employees pre-emption was \$73,500.

(22) Share capital (22) Share capital

	Years ended December 31,
	2015	2014
At January 1	1,622,671	1,274,253
Stock dividends	-	48,418
Capital increase	-	300,000
At December 31	1,622,671	1,622,671

B. On January 13, 2014, the Board of Directors has resolved to increase capital by \$3,000,000 with a par value of NT\$10. The issuance price is NT\$14.45. The capital increase was approved by the Financial Supervisory Commission and the registration had been completed. B. On January 13, 2014, the Board of Directors has resolved to increase capital by \$3,000,000 with a par value of NT\$10. The issuance price is NT\$14.45. The capital increase was approved by the Financial Supervisory Commission and the registration had been completed.
C. On June 20, 2014, the shareholders have resolved to issue new shares amounting to 48,418 thousand shares using unappropriated retained earnings of \$484,117. The capital increase was approved by the Financial Supervisory Commission and the registration had been completed. C. On June 20, 2014, the shareholders have resolved to issue new shares amounting to 48,418 thousand shares using unappropriated retained earnings of \$484,117. The capital increase was approved by the Financial Supervisory Commission and the registration had been completed.
D. The Company's subsidiary, Ta-Chen Construction & Engineering Corp. (Ta-Chen) has acquired the Company's shares in an open market to maintain the equity interest of the Company's shareholders. In order to strengthen management through eliminating interlocking shareholding, the Board of Directors of Ta-Chen has resolved to reduce capital of \$435,025 (elimination of 43,502 thousand shares) by returning the Company's shares (of 39,016 thousand shares) to Cheng-Shi Investment Holdings Co., Ltd. (Cheng-Shi Investment), and set the effective capital reduction date as August 5, 2015. Cheng-Shi Investment's Board of Directors has resolved the capital reduction and set the reduction effective on September 21, 2015, and returned shares to the Company. The registration of changes in capital and capital reduction as approved by the competent authority has been completed on November 18, 2015. D. The Company's subsidiary, Ta-Chen Construction & Engineering Corp. (Ta-Chen) has acquired the Company's shares in an open market to maintain the equity interest of the Company's shareholders. In order to strengthen management through eliminating interlocking shareholding, the Board of Directors of Ta-Chen has resolved to reduce capital of \$435,025 (elimination of 43,502 thousand shares) by returning the Company's shares (of 39,016 thousand shares) to Cheng-Shi Investment Holdings Co., Ltd. (Cheng-Shi Investment), and set the effective capital reduction date as August 5, 2015. Cheng-Shi Investment's Board of Directors has resolved the capital reduction and set the reduction effective on September 21, 2015, and returned shares to the Company. The registration of changes in capital and capital reduction as approved by the competent authority has been completed on November 18, 2015.
E. As of December 31, 2015, the Company's authorized capital was \$20,000,000, and the paidin capital was \$16,233,261 with a par value of NT\$10 per share, consisting of 1,623,326 thousand shares of ordinary stock.
5: F. As of December 31, 2015 and 2014, the Company's subsidiaries – Ta-Chen Construction & Engineering Corp. and Prince Apartment Management Maintain Co., Ltd. held the Company's stocks to maintain equity interest in the Company. The amount of shares held by the subsidiaries was 655 thousand and 39,671 thousand, the average par value was both NT\$1.52 per share, and the fair value was NT\$9.40 and NT\$12.70 per share, respectively.

(23) Capital surplus

(24) Retained earnings (22) Retained earnings

	Capital surplus
	Share			Treasury share
2015	premium			transaction		Others			Total
At January 1	\$ 1,408,500 \$				514,061 \$		7,232 \$		1,929,793
Treasury stock transactions	(	33,058)			363,778		-		330,720
At December 31	\$	1,375,442 \$			877,839 \$		7,232 \$		2,260,513
	Capital surplus
	Share		Treasury share			Employee
2014	premium		transaction			stock options	Others		Total
At January 1	\$	- \$		514,061 \$		-	7,232\$		521,293\$
Share-based payment of cash capital
increase reserved for employee pre-emption	-			-		73,500		-	73,500
Cash capital increase	1,408,500			- (		73,500)		-	1,335,000
At December 31	\$ 1,408,500 \$			514,061	\$	-	7,232\$		1,929,793\$

61 A.In accordance with the Company's Articles of Incorporation, the Company will take into FRQGLWLRQV DQG DUH TXDOL¿HG DV WKH &RPSDQ\¶V HPSOR\HHV
the portion in excess of 25% of the Company's paid-in capital.
per share.
supervisors' remuneration, please refer to Note 6(31).

consideration its future business plans and capital expenditures in determining the amount of earnings to be retained and to be distributed. In accordance with the Company Law, 10% of the current year's earnings, after payment of all taxes and after offsetting accumulated deficit, shall be set aside as legal reserve until the balance of legal reserve is equal to that of issued share capital. Afterwards, an amount shall be appropriated or reversed as special reserve in accordance with applicable legal or regulatory requirements, along with prior years' accumulated unappropriated retained earnings, and then distribution should be in the following order: stock dividend and bonus A. In accordance with the Company's Articles of Incorporation, the Company will take into consideration its future business plans and capital expenditures in determining the amount of earnings to be retained and to be distributed. In accordance with the Company Law, 10% of the current year's earnings, after payment of all taxes and after offsetting accumulated GH¿FLW VKDOO EH VHW DVLGH DV OHJDO UHVHUYH XQWLO WKH EDODQFH RI OHJDO UHVHUYH LV HTXDO WR WKDW of issued share capital. Afterwards, an amount shall be appropriated or reversed as special reserve in accordance with applicable legal or regulatory requirements, along with prior years' accumulated unappropriated retained earnings, and then distribution should be in the following order: stock dividend and bonus to shareholders are 50%~100% of the accumulated distributable earnings, and cash dividend is at least 30% of the total stock dividend and bonus; the appropriation of earnings is proposed by the Board of Directors and resolved by the shareholders. Employees' bonus includes employees of subsidiaries who satisfy certain

B. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to

C. The Company recognized dividends distributed to owners amounting to \$1,329,873 (\$0.8 (in dollars) per share) and \$968,354 (\$0.6 (in dollars) per share) for the years ended December 31, 2015 and 2014, respectively. On March 23, 2016, the Board of Directors proposed that total dividends for the distribution of earnings for 2015 was \$1,785,659 with \$1.1 (in dollars)

D. For the information relating to employees' compensation (bonuses) and directors' and

(25) Other equity items (25) Other equity items

	Available-for-sale		Currency
		investment		translation Treasury stocks	Total
At January 1, 2015	\$	1,434,529	\$ 1,690	(\$ 60,440)	\$ 1,375,779
Available-for-sale investment:
-Loss on fair value	(	27,126)	-	-	( 27,126)
Treasury stock transactions		-	-	59,437	59,437
Currency translation differences:
-Group		-	16	-	16
At December 31, 2015	\$	1,407,403	\$ 1,706	(\$ 1,003)	\$ 1,408,106
		Available-for-sale	Currency
		investment		translation Treasury stocks	Total
At January 1, 2014	\$	2,000,470 (\$	859) (\$	60,440)	\$ 1,939,171
Available-for-sale investment:
-Loss on fair value	(	565,941)	-	- (	565,941)
Currency translation differences:
-Group		-	2,549	-	2,549
At December 31, 2014	\$	1,434,529	\$ 1,690	(\$ 60,440)	\$ 1,375,779

(26) Maturity analysis of assets and liabilities (26) Maturity analysis of assets and liabilities

7KH FRQVWUXFWLRQ UHODWHG DVVHWV DQG OLDELOLWLHV DUH FODVVL¿HG DV FXUUHQW DQG QRQFXUUHQW EDVHG RQ the operating cycle. Related recognized amount expected to be recovered or repaid within or after 12 months from the balance sheet date is as follows: The construction related assets and liabilities are classified as current and non-current based on the operating cycle. Related recognized amount expected to be recovered or repaid within or after 12

	Within 12 months	Over 12 months	Total
December 31, 2015
Assets
Notes receivable, net	\$ 44,980 \$	671 \$	45,651
Accounts receivable, net (including related parties)	1,582,837	597,393	2,180,230
Inventories	8,635,309	13,526,802	22,162,111
Construction contract receivables	931,727	416,231	1,347,958
	\$ 11,194,853 \$	14,541,097 \$	25,735,950
	Within 12 months	Over 12 months	Total
December 31, 2015
Liabilities
Notes payable	\$ 11,094 \$	- \$	11,094
Accounts payable	2,510,158	1,529,999	4,040,157
Construction contract payables	406,921	98,516	505,437
	\$ 2,928,173 \$	1,628,515 \$	4,556,688
	Within 12 months	Over 12 months	Total
December 31, 2014
Assets
Notes receivable, net	\$ 123,283 \$	247 \$	123,530
Accounts receivable, net (including related parties)	4,832,468	813,984	5,646,452
Inventories	7,115,640	13,781,065	20,896,705
Construction contract receivables	496,106	459,784	955,890
	\$ 12,567,497 \$	15,055,080 \$	27,622,577
December 31, 2014
Liabilities
Notes payable	\$ 10,437 \$	- \$	10,437
Accounts payable	2,087,175	2,060,403	4,147,578
Construction contract payables	26,829	324,130	350,959
	\$ 2,124,441 \$	2,384,533 \$	4,508,974

-Operating service revenue 373,279 370,142

\$ 366,218 \$ 384,772

Years ended December 31,

Others 187,804 149,460

Years ended December 31,

(31) Expenses by nature (31) Expenses by nature

(29) Other gains and losses (29) Other gains and losses (29) Other gains and losses

Note 1: Please refer to Note 9(15) for details. Note 2: Please refer to Note 6(8) for details. (30) Finance costs Note 1: Please refer to Note 9(15) for details. Note 2: Please refer to Note 6(8) for details. (30) Finance costs Note 1: Please refer to Note 9(15) for details. Note 2: Please refer to Note 6(8) for details. (30) Finance costs (30) Finance costs Note 2: Please refer to Note 6(8) for details. (30) Finance costs

(27) Operating revenue		Years ended December 31,
(27) Operating revenue		Years ended December 31, 2015 2014
(27) Operating revenue Sales revenue	\$	2015 11,683,972 \$	Years ended December 31, 2014 13,506,415 Years ended December 31,
Sales revenue Service revenue	\$	2015 11,683,972 \$ 502,615 2015	2014 13,506,415 507,754 2014
Sales revenue Service revenue Construction contract revenues Sales revenue	\$ \$	11,683,972 \$ 502,615 3,548,640 11,683,972 \$	13,506,415 507,754 5,040,154 13,506,415
Service revenue Construction contract revenues Service concession revenue Service revenue		502,615 3,548,640 502,615	507,754 5,040,154 507,754
Construction contract revenues Service concession revenue -Operating service revenue Construction contract revenues		3,548,640 373,279 3,548,640	5,040,154 370,142 5,040,154
Service concession revenue -Operating service revenue	\$	373,279 16,108,506 \$	370,142 19,424,465

-Operating service revenue	\$	373,279 16,108,506 \$	370,142 19,424,465
	\$	16,108,506 \$	Years ended December 31, 19,424,465
		2015	Years ended December 31, 2014
Interest income	\$	2015 8,896 \$	Years ended December 31, 2014 7,838 Years ended December 31,
Interest income Dividend income	\$	2015 8,896 \$ 169,518 2015	2014 7,838 227,474 2014
Interest income Dividend income Others	\$	8,896 \$ 169,518 187,804	7,838 227,474 149,460
Interest income Dividend income Others	\$ \$	8,896 \$ 169,518 187,804 366,218 \$	7,838 227,474 149,460 384,772
Dividend income Others	\$	169,518 187,804 366,218 \$	227,474 149,460 384,772

Net gain (loss) on financial assets at fair		2015		2014
value through profit or loss Net gain (loss) on financial assets at fair value through profit or loss	\$ \$	2015 79,305 (\$ 79,305 (\$		2014 16,988) 16,988)
Net gain (loss) on financial assets at fair Net currency exchange gains value through profit or loss Net currency exchange gains	\$	18,168 79,305 (\$ 18,168		23,460 16,988) 23,460
Arbitration expenses and value through profit or loss Net currency exchange gains Arbitration expenses and	\$	79,305 (\$ 18,168		16,988) 23,460
compensation loss (Note 1) Net currency exchange gains Arbitration expenses and compensation loss (Note 1)	( (	56,278) 18,168 56,278)		- 23,460 -
Arbitration expenses and Impairment loss on financial assets (Note 2) compensation loss (Note 1) Impairment loss on financial assets (Note 2)	(	- ( 56,278)	- (	12,053) - 12,053)
Others compensation loss (Note 1) Impairment loss on financial assets (Note 2) Others	( ( (	13,596) ( 56,278) - ( 13,596) (		34,033) - 12,053) 34,033)
Impairment loss on financial assets (Note 2) Others Note 1: Please refer to Note 9(15) for details.	\$ ( \$	27,599 (\$ - ( 13,596) ( 27,599 (\$		39,614) 12,053) 34,033) 39,614)
Others Note 2: Please refer to Note 6(8) for details. 1: Please refer to Note 9(15) for details.	( \$	13,596) ( 27,599 (\$		34,033) 39,614)
	\$	27,599 (\$		39,614)

Interest expense:		Years ended December 31, 2015 2014 Years ended December 31,
Interest expense: Bank borrowings Interest expense: Bank borrowings Interest expense: Commercial paper Bank borrowings		2015 2015 \$ 171,706 \$ \$	2014 2014 174,035
		171,706 \$ 36,603 171,706 \$	174,035 47,313 174,035
Commercial paper Bank borrowings Ordinary bond Commercial paper	\$ \$	36,603 171,706 \$ 123,953 36,603	47,313 174,035 126,138 47,313
Ordinary bond Commercial paper Others Ordinary bond		123,953 36,603 1,703 123,953	126,138 47,313 1,555 126,138
Others Ordinary bond Other finance expenses Others		1,703 1,201 123,953 1,703	1,555 1,255 126,138 1,555
Other finance expenses Others Other finance expenses	\$	1,201 335,166 \$ 1,703 1,201	1,255 350,296 1,555 1,255
Other finance expenses	\$ \$	335,166 \$ 1,201 335,166 \$	350,296 1,255 350,296
	\$	335,166 \$	350,296

Year ended December 31, 2015

	Year ended December 31, 2015
		Operating costs	Operating expenses	Total
Employee benefit expense
Wages and salaries	\$	790,765 \$	813,870 \$	1,604,635
Labor and health insurance fees		64,300	61,452	125,752
Pension costs		30,200	34,448	64,648
Other employee benefit expense		15,572	51,552	67,124
	\$	900,837 \$	961,322 \$	1,862,159
Depreciation	\$	86,072 \$	270,999 \$	357,071
Amortization	\$	61,253 \$	591 \$	61,844
		Year ended December 31, 2014
		Operating costs	Operating expenses	Total
Employee benefit expense
Wages and salaries	\$	902,957 \$	909,338 \$	1,812,295
Labor and health insurance fees		71,843	64,358	136,201
Pension costs		25,695	47,131	72,826
Other employee benefit expense		12,430	48,884	61,314
	\$	1,012,925 \$	1,069,711 \$	2,082,636
Depreciation	\$	86,931 \$	265,862 \$	352,793

Company shall distribute bonus to the employees and pay remuneration to the directors and supervisors that account for at least 2% and 3%, respectively, of the total distributed amount. A. According to the Articles of Incorporation of the Company, when distributing earnings, the Company shall distribute bonus to the employees and pay remuneration to the directors and

2015 2014

(28) Other income (28) Other income (28) Other income

65 A. According to the Articles of Incorporation of the Company, when distributing earnings, the supervisors that account for at least 2% and 3%, respectively, of the total distributed amount. meeting in 2016.

However, in accordance with the Company Act amended on May 20, 2015, a company shall distribute employee remuneration, based on the current year's profit condition, in a fixed amount or a proportion of profits. If a company has accumulated deficit, earnings should be channeled to cover losses. Aforementioned employee remuneration could be paid by cash or stocks. Specifics of the compensation are to be determined in a board meeting that registers two-thirds of directors in attendance, and the resolution must receive support from half of participating members. The resolution should be reported to the shareholders at the shareholders' meeting. Qualification requirements of employees, including the employees of subsidiaries of the company meeting certain specific requirements, entitled to receive aforementioned stock or cash may be specified in the Articles of Incorporation. The Board of Directors of the Company has approved the amended Articles of Incorporation of the Company on March 23, 2016. According to the amended articles, a ratio of profit of the current year However, in accordance with the Company Act amended on May 20, 2015, a company shall distribute employee remuneration, based on the current year's profit condition, in a fixed amount or a proportion of profits. If a company has accumulated deficit, earnings should be channeled to cover losses. Aforementioned employee remuneration could be paid by FDVK RU VWRFNV 6SHFL¿FV RI WKH FRPSHQVDWLRQ DUH WR EH GHWHUPLQHG LQ D ERDUG PHHWLQJ WKDW registers two-thirds of directors in attendance, and the resolution must receive support from half of participating members. The resolution should be reported to the shareholders at the shareholders' meeting. Qualification requirements of employees, including the employees of subsidiaries of the company meeting certain specific requirements, entitled to receive DIRUHPHQWLRQHG VWRFN RU FDVK PD\ EH VSHFL¿HG LQ WKH \$UWLFOHV RI ,QFRUSRUDWLRQ 7KH %RDUG of Directors of the Company has approved the amended Articles of Incorporation of the Company on March 23, 2016. According to the amended articles, a ratio of profit of the current year distributable, after covering accumulated losses, shall be distributed as employees' compensation and directors and supervisors remuneration. The ratio shall not be lower than 2% for employees' compensation and shall not be higher than 3% for directors' and supervisors' remuneration. The amended articles will be resolved in the shareholders'

\$ 16,108,506 \$ 19,424,465

2015 2014

VI

B. For the years ended December 31, 2015 and 2014, employees' compensation (bonus) was accrued at \$244,705 and \$43,177, respectively; while directors' and supervisors' remuneration was accrued at \$83,250 and \$64,765, respectively. The aforementioned amounts were recognised in salary expenses.

The employees' compensation and supervisors' and directors' remuneration were accrued EDVHG RQ WKH SHUFHQWDJH DV SUHVFULEHG LQ WKH &RPSDQ\¶V \$UWLFOHV RI ,QFRUSRUDWLRQ DQG SUR¿W of current year distributable for the year ended December 31, 2015. The distributed amounts resolved by the Board of Directors were in agreement with the accrued amounts. The employees' compensation will be distributed in the form of cash.

The expenses recognised for 2014 were accrued based on the net income for 2014 and the percentage of 2% and 3% for employees and directors/supervisors, respectively, taking into account other factors such as legal reserve. Where the accrued amounts for employees' bonus and directors' and supervisors' remuneration are different from the actual distributed amounts as resolved by the stockholders at their stockholders' meeting subsequently, the differences are accounted for as changes in estimates. Employees' bonus and directors' and supervisors' remuneration for 2014 as resolved by the shareholders during their meeting were LQ DJUHHPHQW ZLWK WKRVH DPRXQWV UHFRJQLVHG LQ WKH SUR¿W RU ORVV IRU

Information about the appropriation of employees' compensation (bonus) and directors' and supervisors' remuneration by the Company as proposed by the Board of Directors and resolved by the stockholders will be posted in the "Market Observation Post System" at the website of the Taiwan Stock Exchange.

Current tax:

(a) Components of income tax expense:		Years ended December 31,
	2015 Years ended December 31,		2014
Current tax:		2015	2014
Current tax on profits for the year Current tax:	\$	110,958 \$	50,659
Additional 10% tax on undistributed earnings Current tax on profits for the year	\$	85,214 110,958 \$	47,785 50,659
Under (over) provision of prior year's income tax Additional 10% tax on undistributed earnings		31,079 ( 85,214	4,909) 47,785
Land value increment tax recognized in income tax Under (over) provision of prior year's income tax for the year Land value increment tax recognized in income tax		31,079 ( 138,254	4,909) 70,218
Total current tax for the year		365,505 138,254	163,753 70,218
Deferred tax: Total current tax		365,505	163,753
Origination and reversal of temporary differences Deferred tax:	(	77,413) (	286)
Income tax expense Origination and reversal of temporary differences	\$ (	288,092 \$ 77,413) (	163,467 286)

(b) Reconciliation between income tax expense and accounting profit: Deferred tax: Under (over) provision of prior year's income tax Land value increment tax recognized in income tax for the year Origination and reversal of temporary differences Current tax: Deferred tax: Income tax expense \$ 288,092 \$ 163,467 Under (over) provision of prior year's income tax Land value increment tax recognized in income tax for the year Origination and reversal of temporary differences

Years ended December 31, ^E 5HFRQFLOLDWLRQ EHWZHHQ LQFRPH WD[ H[SHQVH DQG DFFRXQWLQJ SUR¿W

(32) Income tax A. Income tax expense (a) Components of income tax expense: (32) Income tax A. Income tax expense (a) Components of income tax expense:

Effects recognised from adjustments under tax Tax calculated based on profit before tax and
Effects recognised from adjustments under tax

	2015 2014 Years ended December 31,
Tax calculated based on profit before tax and	2015		2014
statutory tax rate Tax calculated based on profit before tax and Effects recognised from adjustments under tax statutory tax rate	\$ \$	428,682 \$ 428,682 \$	432,327 432,327
regulations Effects recognised from adjustments under tax Additional 10% tax on undistributed earnings regulations	( (	301,656) ( 85,214 301,656) (	348,384) 47,785 348,384)
Effect from investment tax credits Additional 10% tax on undistributed earnings	(	59,211) ( 85,214	33,570) 47,785
Prior year's income tax under (over) estimation Effect from investment tax credits	(	59,211) ( 31,079 (	33,570) 4,909)
Land value increment tax Prior year's income tax under (over) estimation		138,254 31,079 (	70,218 4,909)
Loss carryforward Land value increment tax	(	34,270) 138,254	- 70,218
Income tax expense Loss carryforward	\$ (	288,092 \$ 34,270)	163,467 -
Income tax expense	\$	288,092 \$	163,467

(32) Income tax

B. Amounts of deferred tax assets or liabilities as a result of temporary differences are as follows:

			Year ended December 31, 2015
			Recognised in
		Recognised	other
		in profit or	comprehensive
	January 1	loss	income	December 31
Deferred tax assets:
Temporary difference:
Rent adjusted using the straight-line method	\$ 106,693	(\$ 1,702)	\$ -	\$ 104,991
Pensions	1,268	( 54)	-	1,214
Employee benefits	408	( 154)	-	254
	\$ 108,369	(\$ 1,910)	\$ -	\$ 106,459
Deferred tax liabilities:
Temporary difference:
Provision for land revaluation
increment tax	\$ 495,328	(\$ 79,323)	\$ -	\$ 416,005
			Year ended December 31, 2014
			Recognised in
		Recognised	other
		in profit or	comprehensive
	January 1	loss	income	December 31
Deferred tax assets:
Temporary difference:
Rent adjusted using the straight-line method	\$ 106,334	\$ 359	\$ -	\$ 106,693
Pensions	1,137	131	-	1,268
Employee benefits	612	( 204)	-	408
	\$ 108,083	\$ 286	\$ -	\$ 108,369
Deferred tax liabilities:
Temporary difference:
Provision for land revaluation
increment tax	\$ 495,328	\$ -	\$ -	\$ 495,328

C. AmounC. According to Act for Promotion of Private Participation in Infrastructure Projects, details of the Company's investment tax credit and unrecognised deferred tax assets are as follows:ts of deferred tax assets or liabilities as a result of temporary differences are as C. According to Act for Promotion of Private Participation in Infrastructure Projects, details of the C. According to Act for Promotion of Private Participation in Infrastructure Projects, details of the

follows: Company's investment tax credit and unrecognised deferred tax assets are as follows: Company's investment tax credit and unrecognised deferred tax assets are as follows:

D.Expiration dates of loss carryforward and amounts of unrecognised deferred tax assets are as follows: follows: D.Expiration dates of loss carryforward and amounts of unrecognised deferred tax assets are as follows:

December 31, 2015 December 31, 2015
		Unrecognised Unrecognised	Tax credit of investment Tax credit of investment
Qualifying items Qualifying items	Unused tax credits Unused tax credits	deferred tax assets deferred tax assets	usable until usable until
Investment Investment	\$ 21,578 \$ \$ 21,578 \$	21,578 21,578	2016 2016
		December 31, 2014 December 31, 2014
		Unrecognised Unrecognised	Tax credit of investment Tax credit of investment
Qualifying items Qualifying items	Unused tax credits Unused tax credits	deferred tax assets deferred tax assets	usable until usable until
Investment Investment	\$ 77,883 \$ \$ 77,883 \$	77,883 77,883	2016 2016

D. Expiration dates of loss carryforward and amounts of unrecognised deferred tax assets are as

December 31, 2015 December 31, 2015

	Amount filed /		deferred tax
Year incurred	assessed	Unused amount	assets	Usable until
In and before 2011	Amount assessed	\$ 2,259,959	\$ 2,259,959	2021
Year ended December 31, 2012	Amount filed	12,976	12,976	2022
Year ended December 31, 2013	Amount filed	168,281	168,281	2023
Year ended December 31, 2014	Amount filed	37,676 -	37,676 -	2024
	69	\$ 2,478,892 \$ 69	2,478,892

		Unrecognised Unrecognised
assessed assessed	Unused amount Unused amount	assets assets	Usable until Usable until
Amount assessed Amount assessed	\$ 2,297,232 \$ 2,297,232	\$ 2,297,232 \$ 2,297,232	2021 2021
Amount filed Amount filed	12,976 12,976	12,976 12,976	2022 2022
Amount filed Amount filed	220,453 220,453	220,453 220,453	2023 2023
Amount filed Amount filed	37,676 37,676	37,676 37,676	2024 2024
Amount filed Amount filed	16,571 16,571 -	16,571 16,571 -	2025 2025
	\$ \$	2,584,908 2,584,908

		Unrecognised
Amount filed /		deferred tax
	Amount filed / Amount filed /	- December 31, 2014	deferred tax deferred tax - 2,584,908 \$ 2,584,908 \$

E. The Company participated in 'National Taiwan University Chang Hsing and Shui Yuan BOT Dorms', which was handled and assessed as major infrastructure by the Ministry of Education. Thus, in accordance with 'Regulations Governing Application for Exemption from profit-seeking Enterprise Income Tax by Private Institutions Participating in Public Infrastructure Projects', the Group is entitled to the income tax exemption for 5 consecutive years (until December 2014). E. The Company participated in 'National Taiwan University Chang Hsing and Shui Yuan BOT Dorms', which was handled and assessed as major infrastructure by the Ministry of Education. Thus, in accordance with 'Regulations Governing Application for Exemption from profit-seeking Enterprise Income Tax by Private Institutions Participating in Public Infrastructure Projects', the Group is entitled to the income tax exemption for 5 consecutive years (until December 2014).

F. As of December 31, 2015, the Company's income tax returns through 2013 have been assessed and approved by the Tax Authority. F. As of December 31, 2015, the Company's income tax returns through 2013 have been assessed
G. Unappropriated retained earnings: and approved by the Tax Authority. G. Unappropriated retained earnings:

H.As of December 31, 2015 and 2014, the balance of the imputation tax credit account was \$53,573 and \$9,524 , respectively. The creditable tax rate was 1.81% for 2014 and is estimated to be 3.19% for 2015. The tax credits to be allocated to the stockholders are calculated based on the balance of the imputation tax credit account on the day of distribution of dividends. Therefore, the creditable tax rate applicable to the stockholders for the appropriation of earnings generated in and after 1998 shall be adjusted to take into account the tax credits that might incur under the income tax laws up to the distribution date of dividends or earnings. H. As of December 31, 2015 and 2014, the balance of the imputation tax credit account was \$53,573 and \$9,524 , respectively. The creditable tax rate was 1.81% for 2014 and is estimated to be 3.19% for 2015. The tax credits to be allocated to the stockholders are calculated based on the balance of the imputation tax credit account on the day of distribution of dividends. Therefore, the creditable tax rate applicable to the stockholders for the appropriation of earnings generated in and after 1998 shall be adjusted to take into account the tax credits that might incur under the income tax laws up to the distribution date of dividends or earnings.

December 31, 2014 Amount filed 37,676 37,676 2024

	December 31, 2015	December 31, 2014
Earnings generated in and after 1998	\$ 3,508,400 \$	2,854,738

(33) Earnings per share (33) Earnings per share

(34) Operating leases (34) Operating leases

		Year ended December 31, 2015
		Weighted average
		number of ordinary	Earnings
		shares outstanding	per share
Basic earnings per share		Amount after tax (shares in thousands) (in dollars)
Profit attributable to ordinary shareholders of the parent	\$ 2,237,800	1,622,671	\$	1.38
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	\$ 2,237,800	1,622,671
Assumed conversion of all dilutive
potential ordinary shares
Employees' compensation	-	27,220
Profit attributable to ordinary shareholders of the parent plus assumed conversion
of all dilutive potential ordinary shares	\$ 2,237,800	1,649,891	\$	1.36
		Year ended December 31, 2014
		Weighted average
		number of ordinary	Earnings
		shares outstanding	per share
Basic earnings per share		Amount after tax (shares in thousands) (in dollars)
Profit attributable to ordinary shareholders of the parent	\$ 2,398,718	1,586,268	\$	1.51
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	\$ 2,398,718	1,586,268
Assumed conversion of all dilutive

potential ordinary shares
Employees' bonus	-	3,510
Profit attributable to ordinary shareholders of the parent plus assumed conversion

71 The Company's subsidiary leases office and business area under non-cancellable operating lease agreements. The lease terms are between 2011 and 2035, and all these lease agreements are renewable at the end of the lease period. Rental payment is calculated based on an agreed upon rate of revenue. The Company's subsidiary recognized annual rental expense of \$387,246 for the 7KH &RPSDQ\¶V VXEVLGLDU\ OHDVHV RI¿FH DQG EXVLQHVV DUHD XQGHU QRQFDQFHOODEOH RSHUDWLQJ OHDVH agreements. The lease terms are between 2011 and 2035, and all these lease agreements are renewable at the end of the lease period. Rental payment is calculated based on an agreed upon rate of revenue. The Company's subsidiary recognized annual rental expense of \$387,246 for the years ended December 31, 2015 and 2014. The future aggregate minimum lease payments under non-cancellable operating leases are as follows:

Profit attributable to ordinary shareholders
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent \$ 2,398,718 1,586,268
Assumed conversion of all dilutive
potential ordinary shares
Profit attributable to ordinary shareholders of the parent plus assumed conversion

2015 2014

(a) (a) (1) 6LJQL¿FDQW UHODWHG SDUW\ WUDQVDFWLRQV DQG EDODQFHV (1) Significant related party transactions and balances
A. Sales of goods: A. Sales of goods: (a)

(35) Non-cash transactions Investing and financing activities with no cash flow effects: (35) Non-cash transactions (35) Non-cash transactions Later than five years 5,977,475 6,388,205

non-cancellable operating leases are as follows: years ended December 31, 2015 and 2014. The future aggregate minimum lease payments under	December 31, 2015	December 31, 2014
Not later than one year non-cancellable operating leases are as follows:	\$ December 31, 2015 400,563 \$	December 31, 2014 397,174
Not later than one year Later than one year but not later than five years	\$ 400,563 \$ 2,034,162 December 31, 2015	397,174 2,023,995 December 31, 2014
Later than one year but not later than five years Later than five years Not later than one year	\$ 2,034,162 5,977,475 400,563 \$	2,023,995 6,388,205 397,174
Later than five years Later than one year but not later than five years	\$ 5,977,475 8,412,200 \$ 2,034,162	6,388,205 8,809,374 2,023,995

A. Sales of goods: (1) Significant related party transactions and balances 5(/\$7('3\$57<75\$16\$&7,216 7. RELATED PARTY TRANSACTIONS investment property \$ 62,056 -\$

\$ 8,412,200 \$ 8,809,374

2015 2014

(a) Construction subcontracting		2015 Years ended December 31,	2014
Construction subcontracting ɡAssociates ɡAssociates		152,071 \$ 2015	318,364 2014
ɡOther related parties Construction subcontracting	\$	152,071 \$ 388,903	318,364 2,214,044
ɡOther related parties ɡAssociates	\$ \$	388,903 152,071 \$ 540,974 \$	2,214,044 318,364 2,532,408
ɡOther related parties The contract prices of construction for related parties are based on expected construction cost	\$	540,974 \$ 388,903	2,532,408 2,214,044
The contract prices of construction for related parties are based on expected construction cost plus reasonable management expenses and profit, and are determined based on mutual	\$	540,974 \$	2,532,408

construction site -\$ \$ 2,150,619 1.Investment property reclassified to land held for construction site -\$ \$ 2,150,619
2.Investment property reclassified to buildings and land held for sale -\$ \$ 2,512 3.Buildings and land held for sale reclassified to 2.Investment property reclassified to buildings and land held for sale -\$ \$ 2,512 1.Investment property reclassified to land held for construction site -\$ \$ 2,150,619
property, plant and equipment -\$ \$ 106,249 4.Merchandise inventory reclassified to property, 3.Buildings and land held for sale reclassified to property, plant and equipment -\$ \$ 106,249 2.Investment property reclassified to buildings and land held for sale -\$ \$ 2,512
plant and equipment 5.Land held for construction site reclassified to 4.Merchandise inventory reclassified to property, plant and equipment 3.Buildings and land held for sale reclassified to property, plant and equipment -\$ \$ 106,249 4.Merchandise inventory reclassified to property,
1. RELATED PARTY TRANSACTIONS investment property \$ 62,056 -\$ 5.Land held for construction site reclassified to investment property \$ 62,056 -\$ plant and equipment 5.Land held for construction site reclassified to

agreements. The construction payments are collected based on the contract terms. plus reasonable management expenses and profit, and are determined based on mutual agreements. The construction payments are collected based on the contract terms. The contract prices of construction for related parties are based on expected construction cost plus reasonable management expenses and profit, and are determined based on mutual agreements. The construction payments are collected based on the contract terms. The contract prices of construction for related parties are based on expected construction FRVW SOXV UHDVRQDEOH PDQDJHPHQW H[SHQVHV DQG SUR¿W DQG DUH GHWHUPLQHG EDVHG RQ PXWXDO agreements. The construction payments are collected based on the contract terms.

,QYHVWLQJ DQG ¿QDQFLQJ DFWLYLWLHV ZLWK QR FDVK ÀRZ HIIHFWV Investing and financing activities with no cash flow effects: \$ 8,412,200 \$ 8,809,374

167\$ -\$

Years ended December 31,

Investing and financing activities with no cash flow effects:

2015 2014

167\$ -\$

Years ended December 31,

As of December 31, 2015 and 2014, the status of the construction of the associates undertaken by the Group was as follows: As of December 31, 2015 and 2014, the status of the construction of the associates undertaken by the Group was as follows: As of December 31, 2015 and 2014, the status of the construction of the associates undertaken by the Group was as follows:

73 73

Rent is determined by mutual agreements and is collected monthly. Rent is determined by mutual agreements and is collected monthly. Rent is determined by mutual agreements and is collected monthly.
B. Accounts receivable B. Accounts receivable B. Accounts receivable
Total amount of construction contracts that Total amount of construction contracts that
Other related parties Other related parties
Total amount of construction contracts that Total amount of construction contracts that
(b) (b) (b)

Associates: Associates:

C. Other payables C. Other payables C. Other payables
D. Others (a) D. Others D. Others
(a) (a)

(b) (b) (b)

		December 31, 2015 December 31, 2015	December 31, 2014 December 31, 2014
Associates: Associates:
Total amount of construction contracts that Total amount of construction contracts that
were signed but had not been settled yet were signed but had not been settled yet	\$ \$	5,435,312 \$ 5,435,312 \$	5,680,215 5,680,215
Construction payments received Construction payments received	( (	4,972,256) ( 4,972,256) (	5,331,850) 5,331,850)
Construction payments receivable Construction payments receivable	\$ \$	463,056 \$ 463,056 \$	348,365 348,365
Other related parties Other related parties
Total amount of construction contracts that Total amount of construction contracts that
were signed but had not been settled yet were signed but had not been settled yet	\$ \$	5,427,516 \$ 5,427,516 \$	5,393,477 5,393,477
Construction payments received Construction payments received	( (	5,042,157) ( 5,042,157) (	4,551,072) 4,551,072)
Construction payments receivable Construction payments receivable	\$ \$	385,359 \$ 385,359 \$	842,405 842,405

		Years ended December 31, Years ended December 31,
Rental income: Rental income:		2015 2015	2014 2014
ɡAssociates ɡAssociates	\$ \$	47,334 \$ 47,334 \$	46,206 46,206
Rent is determined by mutual agreements and is collected monthly. Rent is determined by mutual agreements and is collected monthly. Rent is determined by mutual agreements and is collected monthly.

		December 31, 2015 December 31, 2015	December 31, 2014 December 31, 2014
Accounts receivable - related parties: Accounts receivable - related parties:
炼Associates 炼Associates	\$ \$	428,646 \$ 428,646 \$	440,429 440,429

		December 31, 2015 December 31, 2015	December 31, 2014 December 31, 2014
Rental payable: Rental payable:
炼Associates	\$	169,005 \$	194,001

Accounts receivable - related parties: Accounts receivable - related parties:

E. On June 20, 2006, the Company and Company and China Metal Products Co., Ltd. ("A party") jointly signed a creditor's rights transfer contract with Amida Trustlink Assets Management Co., Ltd. ("B party"). Under the contract, the Group and A party should pay \$2,100,000 each (totaling E. On June 20, 2006, the Company and Company and China Metal Products Co., Ltd. ("A party") jointly signed a creditor's rights transfer contract with Amida Trustlink Assets Management Co., Ltd. ("B party"). Under the contract, the Group and A party should pay \$2,100,000 each (totaling E. On June 20, 2006, the Company and Company and China Metal Products Co., Ltd. ("A party") jointly signed a creditor's rights transfer contract with Amida Trustlink Assets Management Co., Ltd. ("B party"). Under the contract, the Group and A party should pay \$2,100,000 each (totaling \$4,200,000) to jointly acquire whole creditor's rights of mortgages, security interests and other dependent claims (collectively referred herein as the creditor's rights) on the Splendor Hotel Taichung Building, and each bears 50% rights and obligations of this acquisition; when all creditor's rights of this object turn into property rights, the

Rental payable: Rental payable:

Rental expenses: Rental expenses:

		Years ended December 31, Years ended December 31,
		2015 2015	2014 2014
Rental expenses: Rental expenses:
炼Associates 炼Associates	\$ \$	562,271 \$ 562,271 \$		568,926 568,926
		December 31, 2015 December 31, 2015		December 31, 2014 December 31, 2014
Refundable deposits: Refundable deposits:
炼Associates 炼Associates	\$ \$	66,266 \$ 66,266 \$		65,695 65,695

Refundable deposits: Refundable deposits:

Company and A party should pay B party totaling \$1,000,000 as the cost and reward of B party for it is entrusted with the task to help turn the creditor's rights as stated above into property rights, but any excess cost over \$1,000,000 if incurred on this task shall be borne by B party on its own; the Company should pay B party \$300,000 before June 30, 2006, and the Company and A party should jointly issue a promissory note of \$1,800,000 to B party on the signing date; payment should be done before July 15, 2006. The title to the creditor's rights as stated above had been transferred to the Company and A party on August 2, 2006. Total acquisition price of the creditor's rights amounted to \$5,200,000, which the Company and A party bear 50% of the price each. The Company had paid its share. party totaling \$1,000,000 as the cost and reward of B party for it is entrusted with the task to help turn the creditor's rights as stated above into property rights, but any excess cost over \$1,000,000 if incurred on this task shall be borne by B party on its own; the Company should pay B party \$300,000 before June 30, 2006, and the Company and A party should jointly issue a promissory note of \$1,800,000 to B party on the signing date; payment should be done before July 15, 2006. The title to the creditor's rights as stated above had been transferred to the Company and A party on August 2, 2006. Total acquisition price of the creditor's rights amounted to \$5,200,000, which the Company and A party bear 50% of the price each. The Company had paid its share.

creditor's rights of this object turn into property rights, the Company and A party should pay B

F. Certain short and long-term borrowings of the Company were guaranteed by its Chairman and General Manager. F. Certain short and long-term borrowings of the Company were guaranteed by its Chairman and General Manager.

(2) Key management compensation (2)Key management compensation

		Years ended December 31,
	2015		2014
Salaries and other short-term employee benefits	\$	140,260 \$	150,972
Termination benefit		-	-
Post-employment benefits		-	-
Other long-term benefits		-	-
Share-based payment		-	35,403
	\$	140,260 \$	186,375

**3/('*('\$66(76**

The Group's assets pledged as collateral are as follows: 8. PLEDGED ASSETS The Group's assets pledged as collateral are as follows:

Pledged asset	December 31, 2015	December 31, 2014	Purpose
Demand deposits, certificate of deposit and	\$ 2,811,735 \$		3,684,947 To obtain a higher credit for client, performance
checking deposit (shown as "other financial			guarantee, construction performance guarantee,
assets - current" and "other financial assets -			short-term and long-term borrowings,
non-current")			short-term commercial papers issue, member
			reward points and gift coupons trust account
Financial assets at fair value through profit	320,992		238,547 Construction performance guarantees,
or loss			short-term and long-term borrowings
Land held for construction	6,974,863		6,300,506 Short-term borrowings, notes and
			bills payable and long-term borrwings
Construction in progress	2,133,843		1,918,634 Short-term borrowings, notes and
			bills payable and long-term borrwings
Available-for-sale financial assets	1,028,798		1,033,280 Short-term borrowings, notes and
			bills payable
Financial assets carried at cost	575,426		575,426 Short-term borrowings, notes and
			bills payable
Investments accounted for under equity method	1,582,560		1,120,379 Short-term borrowings, notes and
			bills payable
Land	2,729,051	74	2,729,051 Construction performance guarantees,
			short-term borrowings, notes and bills
			payable and long-term borrowings
Buildings	2,042,803		2,103,423 Short-term borrowings, notes and bills
			payable and long-term borrowings
Investment property	4,047,218		4,807,921 Construction performance guarantees,
			short-term borrowings, notes and bills
			payable and long-term borrowings
	\$ 24,247,289 \$	24,512,114

(1) 6XPPDU\ RI HQGRUVHPHQWV DQG JXDUDQWHHV DQG ¿QDQFLDO VXSSRUW FRPPLWPHQWV LV DV IROORZV A. Summary of endorsements and guarantees provided by the Company to subsidiaries is as A. Summary of endorsements and guarantees provided by the Company to subsidiaries is as

follows: (1) Summary of endorsements and guarantees and financial support commitments is as follows: follows:

**6,1,),&\$17 &217,1(17/,\$%,/,7,(6\$1' 815(&2*1,=(' &2175\$&7 &200,70(176** 9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS \$ 24,247,289 \$ 24,512,114

	December 31, 2015		December 31, 2014
	Total		Total
	endorsement	Amount	endorsement	Amount
Name of company	amount	drawn	amount	drawn
The Splendor Hotel Taichung	\$ 2,000,000	\$ 1,708,520	\$ 2,000,000	\$ 1,773,973
Ta-Chen Construction & Engineering Corp.	1,900,000	-	1,900,000	160,256
	\$ 3,900,000	\$ 1,708,520	\$ 3,900,000	\$ 1,934,229

B. Summary of endorsements and guarantees provided by subsidiaries to the Company is as follows: B. Summary of endorsements and guarantees provided by subsidiaries to the Company is as follows:

C. Summary of endorsements and guarantees provided by subsidiaries to subsidiaries is as follows: December 31, 2015 December 31, 2014 C. Summary of endorsements and guarantees provided by subsidiaries to subsidiaries is as \$ 6,138,778 4,535,850\$ \$ 6,138,778 4,535,850\$

		Total	December 31, 2015		December 31, 2014
	Subsidiaries being	endorsement Total	Amount	endorsement Total	Amount
Name of subsidiaries	endorsed/guaranteed Subsidiaries being	amount endorsement	drawn Amount	amount endorsement	drawn Amount
Prince Apartment Name of subsidiaries Management	endorsed/guaranteed	amount	drawn	amount	drawn
Prince Apartment Maintain Co., Ltd. Management Prince Property	Prince Security Co., Ltd. \$	20,000 \$	10,000 \$	- \$	-
Maintain Co., Ltd. Management Prince Property Consulting Co., Ltd. Management	Prince Security Co., Ltd. \$ Prince Security Co., Ltd.	20,000 \$ 56,000	10,000 \$ 10,000	- \$ -	- -
Consulting Co., Ltd.	Prince Security Co., Ltd.	\$ 76,000 56,000	\$ 20,000 10,000	\$ - -	\$ - -
	D. The accumulated operating losses of the subsidiary, the Splendor Hotel, had exceeded 50% of its	\$ 76,000	\$ 20,000	\$ -	\$ -

follows: C. Summary of endorsements and guarantees provided by subsidiaries to subsidiaries is as follows:

paid-in capital and its current liabilities were greater than current assets. The Company was committed to give the Splendor Hotel financial support for its continuing operations for one year (2)Capital expenditures contracted for at the balance sheet date but not yet incurred are as follows: D. The accumulated operating losses of the subsidiary, the Splendor Hotel, had exceeded 50% of its paid-in capital and its current liabilities were greater than current assets. The Company was committed to give the Splendor Hotel financial support for its continuing operations for one year D. The accumulated operating losses of the subsidiary, the Splendor Hotel, had exceeded 50% of its paid-in capital and its current liabilities were greater than current assets. The Company ZDV FRPPLWWHG WR JLYH WKH 6SOHQGRU +RWHO ¿QDQFLDO VXSSRUW IRU LWV FRQWLQXLQJ RSHUDWLRQV IRU

B. Summary of endorsements and guarantees provided by subsidiaries to the Company is as		December 31, 2015		December 31, 2014
follows:	Total December 31, 2015		Total December 31, 2014
	endorsement Total	Amount	endorsement Total	Amount
Name of company	amount	drawn	amount	drawn
	endorsement	Amount	endorsement	Amount
Prince Real Estate Co., Ltd. Name of company	75 \$ 2,500,000 amount	\$ 2,086,198 drawn	\$ - amount	\$ - drawn
Dong-Feng Enterprises Co., Ltd. Prince Real Estate Co., Ltd.	1,810,889 \$ 2,500,000	1,810,889 \$ 2,086,198	1,810,889 \$ -	1,810,889 \$ -
Ta-Chen Construction & Engineering Corp.	927,889	-	927,889	-
Dong-Feng Enterprises Co., Ltd.	1,810,889	1,810,889	1,810,889	1,810,889
Prince Utility Co., Ltd.	900,000	638,763	900,000	638,763
Ta-Chen Construction & Engineering Corp.	927,889	-	927,889	-
Jin Yi Xing Plywood Co., Ltd.	-	-	2,500,000	2,086,198
Prince Utility Co., Ltd.	900,000	638,763	900,000	638,763
Jin Yi Xing Plywood Co., Ltd.	\$	\$	\$	\$
	6,138,778	4,535,850	6,138,778	4,535,850
	-	-	2,500,000	2,086,198

from the date of the financial support letter. from the date of the financial support letter. RQH \HDU IURP WKH GDWH RI WKH ¿QDQFLDO VXSSRUW OHWWHU

(2) Capital expenditures contracted for at the balance sheet date but not yet incurred are as follows: from the date of the financial support letter. (2)Capital expenditures contracted for at the balance sheet date but not yet incurred are as follows:

	December 31, 2015		December 31, 2014
Property, plant and equipment	\$	9,517 \$	337,710

(3)Operating leases agreements: (3) Operating leases agreements:
Please refer to Note 6 (34) for details.
(4)According to the sale contracts, the Company should provide warranty on the house structure and major facilities for one year from the handover day for the houses it sold. However, any damage to the houses caused by disasters, additions to the houses made by the buyers, or events that are not attributed to the Company is not included in the scope of warranty. Please refer to Note 6 (34) for details.(4) According to the sale contracts, the Company should provide warranty on the house structure and major facilities for one year from the handover day for the houses it sold. However, any damage to the houses caused by disasters, additions to the houses made by the buyers, or events that are not attributed to the Company is not included in the scope of warranty.
(5)On March 17, 2005, the Company ("A party") signed a contract with National Taiwan University ("B party") relating to the construction and operation of dormitories on Chang-Hsing St. and (5) On March 17, 2005, the Company ("A party") signed a contract with National Taiwan University ("B party") relating to the construction and operation of dormitories on Chang-Hsing St. and Shui-Yuan Campus. The major terms of the contract are as follows:
76 A. Under the contract, B party should be responsible for acquiring the ownership or land-use right for this project, and let A party use the land; A party must complete the construction ZLWKLQ \HDUV IURP WKH UHJLVWUDWLRQ RI WKH VXSHU¿FLHV DQG PD\ RSHUDWH WKH GRUPLWRULHV IRU 44 years, collect dormitory rentals and use fees of other facilities from students, and should return the related assets to B party on the expiry of the contract.
B. A party should give B party a performance guarantee of \$60,000 for the construction on the signing date and \$30,000 for operations before the start of operation. As of December 31, 2015 and 2014, A party had provided performance guarantee with a guarantee letter issued by the bank, all amounting to \$30,000.
C. A party should pay B party land rentals from the registration of the superficies, according to the terms of the contract, and pay B party operating royalties from the third year of the operation, based on 0.5% of dormitory rentals and use fees of other facilities collected from students.
D. Terms of restrictions for A party:
- (a) The ratio of A party's own capital utilized in this project to total construction cost of this project should be at least 30%;
- (b) During the operation period, the ratio of shareholders' equity to total assets should be at least 25%; and current ratio (current assets/current liabilities) should be at least 100%;
- F? \$OO ULJKWV DFTXLUHG E\ \$ SDUW\ XQGHU WKH FRQWUDFW H[FHSW IRU RWKHU FRQGLWLRQV VSHFL¿HG LQ the contract and approved by B party, should not be transferred, leased, registered as a liability/obligation or become an executed object of civil litigation.
(6) On May 10, 2005, the Company ("A party") signed a contract with National Cheng Kung University ("B party") relating to the construction and operation of student dormitories and alumni hall. The major terms of the contract are as follows:
A. Under the contract, B party should be responsible for acquiring the ownership or land-use ULJKW IRU WKLV SURMHFW DQG OHW \$ SDUW\ XVH WKH ODQG E\ ZD\ RI UHJLVWUDWLRQ RI WKH VXSHU¿FLHV \$ party must obtain the user license within 3 years after the signing date, and may operate the dormitories and motorcycle parking lots for 35 years from the start of operation and collect dormitory rentals and use fees of other facilities from students for 50 years from the start of construction, and should return the related assets to B party on the expiry of the contract.
B. A party should give B party performance guarantee of \$50,000 for this project on the

signing date, which will be returned in installment according to the contractual terms. As of December 31, 2015 and 2014, A party had provided performance guarantee with a guarantee letter issued by the bank, both amounting to \$20,000.

C. During the operation period, A party should pay B party dormitory operating royalties based on 2% of annual operating revenue of the dormitories and auxiliary facilities operating royalties based on 4% of annual operating revenue of the auxiliary facilities. A party should pay such operating UR\DOWLHV IRU SULRU \HDU EHIRUH WKH HQG RI -XQH HYHU\ \HDU )XUWKHU DFFRUGLQJ WR WKH VXSHU¿FLHV contract signed by the two parties, A party should pay B party land rentals from the registration of

D. All rights acquired by A party under the contract, except for other conditions specified in the contract and approved by B party, should not be transferred, leased, registered as a liability/

(7) The Company signed a syndicated loan contract with 7 banks - Mega International Commercial Bank as the lead bank for a credit line of \$2.16 billion. The syndicated loans include longterm (secured) loans and guarantee payments receivable (secured), which are used to fund the construction of dormitories in Changxing St. Campus and Shuiyuan Campus of National Taiwan 8QLYHUVLW\ 'XULQJ WKH ORDQ SHULRG WKH &RPSDQ\ VKRXOG PDLQWDLQ ¿QDQFLDO FRPPLWPHQWV VXFK as current ratio, liability ratio and interest coverage; those financial ratios/restrictions shall be reviewed at least once every year, based on the Company's audited annual parent company only ¿QDQFLDO VWDWHPHQWV ,I WKH &RPSDQ\ YLRODWHV WKH DERYH ¿QDQFLDO FRPPLWPHQWV LW VKDOO LPSURYH LWV ¿QDQFLDO SRVLWLRQ E\ FDSLWDO LQFUHDVH RU RWKHU ZD\V EHIRUH WKH HQG RI 2FWREHU RI WKH IROORZLQJ year from the year of violation; it would not be regarded as a default if the managing bank FRQ¿UPV WKDW LWV ¿QDQFLDO SRVLWLRQ KDV LPSURYHG FRPSOHWHO\ ,Q FDVH RI YLRODWLRQ LQWHUHVW RQ WKH ORDQV ZRXOG EH FKDUJHG DW WKH ORDQ UDWH VSHFL¿HG LQ WKH FRQWUDFW SOXV DGGLWLRQDO SHU DQQXP IURP WKH QRWL¿FDWLRQ GDWH RI WKH PDQDJLQJ EDQN WR WKH FRPSOHWLRQ GDWH RI ¿QDQFLDO LPSURYHPHQW

VXSHU¿FLHV
obligation or become an executed object of civil litigation.
or to the date the Company gains the relief from the consortium for its violation.
from the bank for its violation.
(9) The Company signed a syndicated loan contract with 10 banks Bank of Taiwan Co., Ltd. as the

(8) The Company signed a loan contract with Mega International Commercial Bank for a credit line of \$785 million. The loans include long-term (secured) loans and guarantee payments receivable (secured), which are used to fund the construction of student dormitories and alumnus hall of 1DWLRQDO &KHQJ .XQJ 8QLYHUVLW\ 'XULQJ WKH ORDQ SHULRG WKH &RPSDQ\ VKRXOG PDLQWDLQ ¿QDQFLDO commitments such as current ratio, liability ratio and interest coverage; those financial ratios/ restrictions shall be reviewed at least once every year. Current ratio and liability ratio shall be reviewed based on the Company's audited annual non-consolidated financial statements, and interest coverage based on the Company's revenue and expenditure table for the related project. ,I WKH &RPSDQ\ YLRODWHV WKH DERYH ¿QDQFLDO FRPPLWPHQWV LW VKDOO LPSURYH LWV ¿QDQFLDO SRVLWLRQ by capital increase or other ways before the end of October of the following year from the year of YLRODWLRQ LW ZRXOG QRW EH UHJDUGHG DV D GHIDXOW LI WKH EDQN FRQ¿UPV WKDW LWV ¿QDQFLDO SRVLWLRQ KDV improved completely. In case of violation, interest on the loans would be charged at the loan rate VSHFL¿HG LQ WKH FRQWUDFW SOXV DGGLWLRQDO SHU DQQXP IURP WKH QRWL¿FDWLRQ GDWH RI WKH EDQN to the completion date of financial improvement or to the date the Company obtains a waiver

lead bank for a credit line of \$2 billion. The syndicated loans are medium-term (secured) loans, and are used for residential building construction cooperated by the Company and Taiwan Sugar

Corporation ("TSC") on Guo--An Sec., Xitun District, Taichung City. Furthermore, the Company shall repay in full for the balance of unpaid principal on maturity date. However, when the buildings in the case are completed and sold or when handling buyer's household debt, borrower should repay the balance of used and unpaid principal for the syndicated loans with 70% of selling consideration.

7KH &RPSDQ\ VLJQHG D V\QGLFDWHG ORDQ FRQWUDFW ZLWK ¿QDQFLDO LQVWLWXWLRQV 0HJD ,QWHUQDWLRQDO Commercial Bank as the lead bank for a credit line of \$1.06 billion. The syndicated loans include medium-term (secured) loans and commercial paper guarantees, which are used for purchases of 4 tracts of PingHsin Sections No. 694,706, 708 and 709 in Taiping Dist., Taichung City and construction payment of residential buildings. Furthermore, the Company shall repay in full for the balance of unpaid principal on maturity date.
(11) On May 18, 2007, the Company signed a contract with Taiwan Sugar Corporation ("TSC") in relation to cooperative construction of houses. According to the contract, TSC shall provide Lot No. 12-12, Guo-An Sec., Xitun District, Taichung City; the Company shall provide funding for those projects and repurchase houses and land allocated to TSC amounting to \$1,810,889 and shall bear all improvement fees of houses, public facilities and land, selling expenses, and other expenses or contributed expenses required under the decrees. The Company shall not ask for any FRPSHQVDWLRQ IRU SULFH ÀXFWXDWLRQV RU RWKHU UHDVRQV )XUWKHU XQGHU WKH FRQWUDFW WKH &RPSDQ\ shall give TSC performance guarantee amounting to \$181,090, on the signing date, which will be returned in installments according to the contractual terms. The Company had provided performance guarantee with a guarantee letter of the bank as follows:
(12) On January 20, February 10 and December 27, 2014, the Company signed a contract with Taiwan Sugar Corporation ("TSC") in relation to cooperative construction of houses. According to the contracts, TSC shall provide Taichung City Koan An Section No. 591-1 and Tainan City Hou Guan Section No.34 and Nanzi Dist., Kaohsiung City Nanzi 1st Section No. 158, etc; the Company shall provide funding for those projects and repurchase houses and land allocated to TSC amounting to \$638,763, \$830,889 and \$1,255,300, and shall bear all improvement fees of houses, public facilities and land, selling expenses, and other expenses or contributed expenses required under the decrees. The Company shall not ask for any compensation for price fluctuations or other reasons. Further, under the contract, the Company shall give TSC performance guarantee amounting to \$63,880, \$83,080 and \$125,540, respectively, on the signing date, which will be returned in instalments according to the contractual terms. The Company had provided such performance guarantee with guarantee letter of the bank as follows: performance guarantee amounting to \$63,880, \$83,080 and \$125,540, respectively, on the signing date, which will be returned in instalments according to the contractual terms. The Company had provided such performance guarantee with guarantee letter of the bank as follows:

	December 31, 2015	December 31, 2014
Taichung City Koan An Section No. 591-1	\$ 63,880 \$	63,880
Tainan City Hou Guan Section No. 34	\$ 83,100 \$	83,100
Nanzi Dist., Kaohsiung City Nanzi 1st Section No. 158, etc	\$ 125,600	\$ -

respectively, and the Company is responsible for the construction; the houses built would be allocated to both sides based on the specified proportion. In addition, the Company shall give performance bond in the amount of \$350,000 and \$19,570 to Mr. Fang Tsai-Yuan and World Vision United Co., Ltd., respectively, which would be returned to the Group in installments. As of December 31, 2015 and 2014, balance of the performance bonds were as follows: respectively, and the Company is responsible for the construction; the houses built would be allocated to both sides based on the specified proportion. In addition, the Company shall give performance bond in the amount of \$350,000 and \$19,570 to Mr. Fang Tsai-Yuan and World Vision United Co., Ltd., respectively, which would be returned to the Group in installments. As of December 31, 2015 and 2014, balance of the performance bonds were as follows:

(14)As of December 31, 2015 and 2014, performance guarantee letters issued for construction undertaking, warranty and leases of subsidiary, Ta-Chen Construction & Engineering Corp., (14) As of December 31, 2015 and 2014, performance guarantee letters issued for construction undertaking, warranty and leases of subsidiary, Ta-Chen Construction & Engineering Corp.,

7: Furthermore, Ta-Chen has paid the settlement on behalf of the joint contractors. Ta-Chen planned to request Evergreen to pay all payments of \$221,000 on behalf of other joint contractors. As WKH MRLQW FRQWUDFWRUV KDYH GLVDJUHHPHQW UHJDUGLQJ WKH FRQWUDFW 7D&KHQ KDV ¿OHG DQ DUELWUDWLRQ application with the Chinese Arbitration Association, Taipei, and received an arbitration award on March 27, 2015 wherein, Evergreen International Engineering shall pay Ta-Chen a total amount of \$169,765 plus interest at 5% per annum from December 17, 2013 until the date of payment. Additionally, on June 15, 2015, the arbitration court corrected the payment to \$201,427. Ta-Chen reached an agreement with Evergreen on June 18, 2015 that Evergreen shall pay \$195,000 and both sides shall withdraw revocation proceedings or application for compulsory enforcement. 7KHUHIRUH 7D&KHQ KDV ZULWWHQ RII RWKHU UHFHLYDEOHV DQG UHFRJQL]HG ORVV RI LQ WKH ¿UVW

	December 31, 2015	December 31, 2014
No. 602, Sec. Zhi-Shan 1, Shilin
District, Taipei City	\$ 350,000 \$	350,000
No. 572, Sec. Zhi-Shan 1, Shilin
District, Taipei City	\$ 19,570 \$	19,570

(15)The Subsidiary, Ta-Chen Construction & Engineering Corp. ("Ta-Chen"), Hung-Yi Construction Corp. and Evergreen International Engineering Corp. ("Evergreen") (collectively referred herein as the "joint contractors") jointly undertook the construction of the new office building of the American Institute in Taiwan. As the joint contractors and the owner of this project both claim the counterparty defaulted on the contract, they terminated the contract and referred the dispute to arbitration. A settlement was reached in August 2013, and the joint contractors would together pay a reconciliation payment amounting to US\$16.4 million, which Ta-Chen pays 68.24%. Ta-Chen has estimated and recognized related arbitration expenses, reconciliation payment and construction loss. Furthermore, the settlement agreement between Ta-Chen and the owner, including tax on settlement of \$30,178 paid to the Taxation Bureau on behalf of the owner, has been reached. As 2 years have passed from the application of tax refunds and the probability of (15) The Subsidiary, Ta-Chen Construction & Engineering Corp. ("Ta-Chen"), Hung-Yi Construction Corp. and Evergreen International Engineering Corp. ("Evergreen") (collectively referred herein as the "joint contractors") jointly undertook the construction of the new office building of the American Institute in Taiwan. As the joint contractors and the owner of this project both claim the counterparty defaulted on the contract, they terminated the contract and referred the dispute to arbitration. A settlement was reached in August 2013, and the joint contractors would together pay a reconciliation payment amounting to US\$16.4 million, which Ta-Chen pays 68.24%. Ta-Chen has estimated and recognized related arbitration expenses, reconciliation payment and construction loss. Furthermore, the settlement agreement between Ta-Chen and the owner, including tax on settlement of \$30,178 paid to the Taxation Bureau on behalf of the owner, has been reached. As 2 years have passed from the application of tax refunds and the probability of tax refund is remote, the related other receivables were written off and loss of \$30,178 was

amounted to \$572,960 and \$780,581, respectively. amounted to \$572,960 and \$780,581, respectively.
recognised (shown as other gains and losses) in 2015. half of the year (shown as other gains and losses). Ta-Chen received the above payment of \$195,000 from Evergreen and the case was closed.
construction is not completed within the prescribed period.

(16) Certain construction contracts undertaken by subsidiary, Ta-Chen Construction & Engineering Corp., specify that default penalty shall be computed according to the contractual terms if the

(17) On October 9, 2013, the subsidiary, The Splendor Hotel Taichung, signed a syndicated loan contract with 5 financial institutions, Taiwan Cooperative Bank, etc., in the amount of \$3.3

million, with Prince Housing & Development Corp. and China Metal Products Co., Ltd. as guarantors. Under the contract, the subsidiary promised its tangible net equity shall not be negative and current ratio, liability ratio, tangible net equity and interest coverage of Prince Housing & Development Corp. and China Metal Products Co., Ltd. shall conform to certain FULWHULD DV VSHFL¿HG LQ WKH FRQWUDFW ,I WKH VXEVLGLDU\ YLRODWHV DERYH ¿QDQFLDO FRPPLWPHQWV WKH managing bank has the right to take the following actions, including but not limited, according to the contract or the resolution of majority of the consortium: 1) request the subsidiary to stop drawing down all or part of the loans; 2) cancel all or part of the credit line of the contract which has not been drawn down yet; 3) announce that all outstanding principal, interest and other accrued expenses payable to the consortium in relation to the loan contract should mature immediately; 4) inform the managing bank of the demand for subsidiary's payment of the promissory note acquired under the loan contract; 5) inform the managing bank to exercise creditor's right of mortgage; 6) exercise contract transfer right, or other rights given by the laws, the loan contract or other relevant documents; 7) take other actions as resolved by the majority of the consortium.

**6,*1,),&\$17',6\$67(5/266**

None.

**11. 6,*1,),&\$17(9(176\$)7(57+(%\$/\$1&(6+((7'\$7(**

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12. 27+(56

(1) Capital management

7KH *URXS¶V FDSLWDO PDQDJHPHQW LV WR HQVXUH LW KDV VXI¿FLHQW ¿QDQFLDO UHVRXUFH DQG RSHUDWLQJ plans to meet operational capital for future needs, capital expenditure, obligation repayment and dividend distribution. The Group adjusts borrowing amount in accordance with construction progress and capital needed for operations.

(2) Financial instruments

\$ )DLU YDOXH LQIRUPDWLRQ RI ¿QDQFLDO LQVWUXPHQWV

The carrying amount of cash and cash equivalents and financial instruments measured at amortized cost (including notes and accounts receivable, other receivables, refundable deposits short-term borrowings, short-term notes and bills payable, notes and accounts payable, other payables corporate bonds payable, long-term borrowings and guarantee deposits received) are approximate to their fair values. Furthermore, the Group's management believes the carrying amounts of financial assets and liabilities not measured at fair value are approximate to their fair value or their fair value cannot be reliably measured. Thus, the carrying amount is the estimated fair value. The fair value information of financial instruments measured at fair value is provided in Note 12(3).

B. Financial risk management policies
D? 7KH *URXS KDV DFWLYLWLHV H[SRVH LW WR D YDULHW\ RI ¿QDQFLDO ULVNV PDUNHW ULVN LQFOXGLQJ foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Group's overall risk management program focuses on the unpredictability of financial PDUNHWV DQG VHHNV WR PLQLPL]H SRWHQWLDO DGYHUVH HIIHFWV RQ WKH *URXS¶V ¿QDQFLDO SRVLWLRQ

DQG ¿QDQFLDO SHUIRUPDQFH

(b) Risk management is carried out by a central treasury department (Group's finance & DFFRXQWLQJ GLYLVLRQ? XQGHU SROLFLHV DSSURYHG E\ WKH %RDUG RI 'LUHFWRUV *URXS V ¿QDQFH & accounting division evaluates and hedges financial risks in close cooperation with the Group's operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as IRUHLJQ H[FKDQJH ULVN LQWHUHVW UDWH ULVN FUHGLW ULVN XVH RI GHULYDWLYH ¿QDQFLDO LQVWUXPHQWV

DQG QRQGHULYDWLYH ¿QDQFLDO LQVWUXPHQWV DQG LQYHVWPHQW RI H[FHVV OLTXLGLW\
& 6LJQL¿FDQW ¿QDQFLDO ULVNV DQG GHJUHHV RI ¿QDQFLDO ULVNV (a) Market risk

Foreign exchange risk

The Group operates internationally and the currencies primarily used are NTD and USD. Foreign exchange risk arises from recognized assets and liabilities and net investments in foreign operations. Management has set up a policy to require the Group entities to manage their foreign exchange risk against their functional currency. The Group entities DUH UHTXLUHG WR PDQDJH WKHLU HQWLUH IRUHLJQ H[FKDQJH ULVN H[SRVXUH ZLWK WKH *URXS ¿QDQFH & accounting division. Foreign exchange risk does not have significant impact to the Group.

Interest rate risk

The Group's interest rate risk arises from short-term and long-term borrowings. %RUURZLQJV LVVXHG DW YDULDEOH UDWHV H[SRVH WKH *URXS WR FDVK ÀRZ LQWHUHVW UDWH ULVN ZKLFK is partially offset by cash and cash equivalents held at variable rates. Borrowings issued DW ¿[HG UDWHV H[SRVH WKH *URXS WR IDLU YDOXH LQWHUHVW UDWH ULVN 7KH *URXS¶V ERUURZLQJV DW variable rate were denominated in the NTD. If interest rates on borrowings had been 0.1% EDVLV SRLQW KLJKHUORZHU ZLWK DOO RWKHU YDULDEOHV KHOG FRQVWDQW SUHWD[ SUR¿W IRU WKH \HDUV ended December 31, 2015 and 2014 would have been \$12,532 and \$13,067 lower/higher, respectively.

Price risk

The Group has investments in equity instruments, and the prices would change due to the change of the future value of investee companies. However, the Group has set a stop-loss SRLQW DQG LW ZDV DVVHVVHG WKDW WKH *URXS ZDV QRW H[SRVHG WR VLJQL¿FDQW SULFH ULVN ,I WKH prices of these equity securities had increased/decreased by 10% with all other variables KHOG FRQVWDQW SUHWD[ SUR¿W IRU WKH \HDUV HQGHG 'HFHPEHU DQG ZRXOG KDYH increased/decreased by \$54,052 and \$37,819, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by \$16,641 and \$19,789, respectively, as a result RI JDLQVORVVHV RQ HTXLW\ VHFXULWLHV FODVVL¿HG DV DYDLODEOHIRUVDOH

L &UHGLW ULVN UHIHUV WR WKH ULVN RI ¿QDQFLDO ORVV WR WKH *URXS DULVLQJ IURP GHIDXOW E\ WKH FOLHQWV RU FRXQWHUSDUWLHV RI ¿QDQFLDO LQVWUXPHQWV RQ WKH FRQWUDFW REOLJDWLRQV &UHGLW risk arises from cash and deposits with banks and financial institutions, including

(b) Credit risk
outstanding receivables.

ii. The Group's receivables, which are the receivables from pre-selling of housing before completing construction and transferring the title, are installments received from

customers of pre-construction real estate. Therefore, it was assessed that the Group ZDV QRW H[SRVHG WR VLJQL¿FDQW FUHGLW ULVN IURP UHFHLYDEOHV

iii. For the years ended December 31, 2015 and 2014, the management does not expect DQ\ VLJQL¿FDQW ORVVHV IURP QRQSHUIRUPDQFH E\ WKHVH FRXQWHUSDUWLHV

(c) Liquidity risk (c) Liquidity risk

i. Cash flow forecasting is performed in the operating entities of the Group and DJJUHJDWHG E\ *URXS¶V ¿QDQFH DFFRXQWLQJ GLYLVLRQ *URXS V ¿QDQFH DFFRXQWLQJ division monitors rolling forecasts of the Group's liquidity requirements to ensure it KDV VXI¿FLHQW FDVK WR PHHW RSHUDWLRQDOQHHGV ZKLOH PDLQWDLQLQJ VXI¿FLHQW KHDGURRP on its undrawn committed borrowing facilities at all times. i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group's finance & accounting division. Group's finance & accounting division monitors rolling forecasts of the Group's liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn
LL 7KH WDEOH EHORZ DQDO\VHV WKH *URXS¶V QRQGHULYDWLYH ¿QDQFLDO OLDELOLWLHV LQWR UHOHYDQW maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities. The amounts GLVFORVHG LQ WKH WDEOH DUH WKH FRQWUDFWXDO XQGLVFRXQWHG FDVK ÀRZV committed borrowing facilities at all times. ii. The table below analyses the Group's non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities. The amounts disclosed in

		December 31, 2015
	Within 1 year	Between 1 to 3 years	Over 3 years
Non-derivative financial liabilities:
Short-term borrowings	\$ 2,659,883 \$		- \$ -
Short-term notes and bills payable	1,649,600	-	-
Notes payable	26,692	7	-
Accounts payable	2,668,918	654,635	875,364
Other payables (including related parties)	1,520,467	5,461	706
Guarantee deposits received	72,591	27,678	35,450
Bonds payable	65,350	2,104,100	2,500,000
Long-term borrowings (including current portion)	487,551	3,489,212	6,858,565
		December 31, 2014
	Within 1 year	Between 1 to 3 years	Over 3 years
Non-derivative financial liabilities:
Short-term borrowings	\$ 3,347,853 \$		- \$ -
Short-term notes and bills payable	2,605,000	-	-
Notes payable	22,027	-	-
Accounts payable	2,043,595	1,479,166	739,557
Other payables (including related parties)	1,287,066	1,638	110
Guarantee deposits received	90,482	14,355	31,710
Bonds payable	65,350	2,119,617	2,535,521
Long-term borrowings (including current portion)	2,195,189	2,301,089	6,218,921

(3) Fair value information

\$ 'HWDLOV RI WKH IDLU YDOXH RI WKH *URXS¶V ¿QDQFLDO DVVHWV DQG ¿QDQFLDO OLDELOLWLHV QRW PHDVXUHG at fair value are provided in Note 12(2)A. Details of the fair value of the Group's investment A. Details of the fair value of the Group's financial assets and financial liabilities not measured at

B. The different levels that the inputs to valuation techniques are used to measure fair value of fair value are provided in Note 12(2)A. Details of the fair value of the Group's investment A. Details of the fair value of the Group's financial assets and financial liabilities not measured at

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The IDLU YDOXH RI WKH *URXS¶V LQYHVWPHQW LQ OLVWHG VWRFNV DQG EHQH¿FLDU\ FHUWL¿FDWHV LV B. The different levels that the inputs to valuation techniques are used to measure fair value of Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient fair value are provided in Note 12(2)A. Details of the fair value of the Group's investment B. The different levels that the inputs to valuation techniques are used to measure fair value of Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a

property measured at cost are provided in Note 6(12). (3) Fair value information
¿QDQFLDO DQG QRQ¿QDQFLDO LQVWUXPHQWV KDYH EHHQ GH¿QHG DV IROORZV property measured at cost are provided in Note 6(12). (3) Fair value information
included in Level 1. financial and non-financial instruments have been defined as follows: frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group's investment in listed stocks and beneficiary certificates is included property measured at cost are provided in Note 6(12). financial and non-financial instruments have been defined as follows: market in which transactions for the asset or liability take place with sufficient
asset or liability, either directly or indirectly. in Level 1.
or liability, either directly or indirectly. in Level 1.
December 31, 2015 and 2014 is as follows: in equity investment without active market is included in Level 3. or liability, either directly or indirectly. in equity investment without active market is included in Level 3.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group's investment in listed stocks and beneficiary certificates is included

Level 3: Unobservable inputs for the asset or liability. The fair value of the Group's investment in equity investment without active market is included in Level 3. Level 3: Unobservable inputs for the asset or liability. The fair value of the Group's investment Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset

C. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities at C. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities at December Level 3: Unobservable inputs for the asset or liability. The fair value of the Group's investment

85 Listed shares Open-end fund Market quoted price Closing price Net asset value

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

(a) The instruments the Group used market quoted prices as their fair values (that is, Level 1) are (a)The instruments the Group used market quoted prices as their fair values (that is, Level 1) \$ 1,665,594 \$ - \$ 276,597 \$ 1,942,191

level on the basis of the nature, characteristics and risks of the assets and liabilities at December December 31, 2015	Level 1	Level 2	Level 3	Total
31, 2015 and 2014 is as follows: Assets:
December 31, 2015 Recurring fair value measurements	Level 1	Level 2	Level 3	Total
Assets: Financial assets at fair value
Recurring fair value measurements through profit or loss
Financial assets at fair value Equity securities	\$ 557,753	\$ -	\$ -	\$ 557,753
through profit or loss Available-for-sale financial assets
Equity securities Equity securities	\$ 557,753 1,364,796	\$ - -	\$ - 200,146	\$ 557,753 1,564,942
Available-for-sale financial assets	\$ 1,922,549 \$			- \$ 200,146 \$ 2,122,695
Equity securities December 31, 2014	1,364,796 Level 1	- Level 2	200,146 Level 3	1,564,942 Total
Assets:	\$ 1,922,549 \$			- \$ 200,146 \$ 2,122,695
December 31, 2014 Recurring fair value measurements	Level 1	Level 2	Level 3	Total
Assets: Financial assets at fair value
Recurring fair value measurements through profit or loss
Financial assets at fair value Equity securities	\$ 316,113	\$ -	\$ -	\$ 316,113
through profit or loss Available-for-sale financial assets
Equity securities Equity securities	\$ 316,113 1,349,481	\$ - -	\$ - 276,597	\$ 316,113 1,626,078
Available-for-sale financial assets	\$ 1,665,594 \$			- \$ 276,597 \$ 1,942,191

Market quoted price Closing price Net asset value listed below by characteristics:

(b)The Group takes into account adjustments for credit risks to measure the fair value of ¿QDQFLDO DQG QRQ¿QDQFLDO LQVWUXPHQWV WR UHÀHFW FUHGLW ULVN RI WKH FRXQWHUSDUW\ DQG WKH Group's credit quality. (b)The Group takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty and the (b)The Group takes into account adjustments for credit risks to measure the fair value of
E. For the years ended December 31, 2015 and 2014, there was no transfer between Level 1 and Level 2. Group's credit quality. E. For the years ended December 31, 2015 and 2014, there was no transfer between Level 1 and financial and non-financial instruments to reflect credit risk of the counterparty and the Group's credit quality.
F. The following chart is the movement of Level 3 for the years ended December 31, 2015 and 2014: Level 2. F. The following chart is the movement of Level 3 for the years ended December 31, 2015 and 2014: E. For the years ended December 31, 2015 and 2014, there was no transfer between Level 1 and Level 2.

Note: Recorded as unrealised valuation gain or loss of available-for-sale financial assets. 1RWH 5HFRUGHG DV XQUHDOLVHG YDOXDWLRQ JDLQ RU ORVV RI DYDLODEOHIRUVDOH ¿QDQFLDO DVVHWV Note: Recorded as unrealised valuation gain or loss of available-for-sale financial assets.

G. For the years ended December 31, 2015 and 2014, there was no transfer into or out from Level 3. H. Finance and Accounting segment is in charge of valuation procedures for fair value G. For the years ended December 31, 2015 and 2014, there was no transfer into or out from Level 3. G. For the years ended December 31, 2015 and 2014, there was no transfer into or out from Level 3.
measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently assessing valuation results and making any other necessary adjustments to the fair value. I. The following is the qualitative information of significant unobservable inputs and sensitivity H. Finance and Accounting segment is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently assessing valuation results and making any other necessary adjustments to the fair value. H. Finance and Accounting segment is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently assessing valuation results and making any other necessary adjustments to the fair value.
analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement: , 7KH IROORZLQJ LV WKH TXDOLWDWLYH LQIRUPDWLRQ RI VLJQL¿FDQW XQREVHUYDEOH LQSXWV DQG VHQVLWLYLW\ DQDO\VLV RI FKDQJHV LQ VLJQL¿FDQW XQREVHUYDEOH LQSXWV WR YDOXDWLRQ PRGHO XVHG LQ /HYHO IDLU value measurement: I. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair

86 value; therefore, the fair value measurement is reasonable. However, use of different valuation models or assumptions may result in different measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets and liabilities categorized within J. The Group has carefully assessed the valuation models and assumptions used to measure fair value; therefore, the fair value measurement is reasonable. However, use of different valuation models or assumptions may result in different measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets and liabilities categorized within J. The Group has carefully assessed the valuation models and assumptions used to measure fair value; therefore, the fair value measurement is reasonable. However, use of different valuation models or assumptions may result in different measurement. The following is the HIIHFW RI SUR¿W RU ORVV RU RI RWKHU FRPSUHKHQVLYH LQFRPH IURP ¿QDQFLDO DVVHWV DQG OLDELOLWLHV categorized within Level 3 if the inputs used to valuation models have changed:

value measurement:	Fair value at		Significant	Range
	Fair value at December	Valuation	Significant unobservable	Range (weighted	Relationship of
	December 31, 2015	Valuation technique	unobservable input	(weighted average)	Relationship of inputs to fair value
Non-derivative equity	31, 2015	technique	input	average)	inputs to fair value
Non-derivative equity Unlisted shares	\$	200,146 Net asset	Net asset	N/A	The higher the net
Unlisted shares	\$	200,146 Net asset value value	Net asset value value	N/A	The higher the net asset value, the asset value, the higher the fair value higher the fair value J. The Group has carefully assessed the valuation models and assumptions used to measure fair

F. The following chart is the movement of Level 3 for the years ended December 31, 2015 and 2014:		Years ended December 31,
	Years ended December 31, 2015	2014
	2015 Non-derivative equity	2014 Non-derivative equity
	Non-derivative equity instruments	Non-derivative equity instruments
At January 1	instruments \$ 276,597 \$	instruments 285,365
At January 1 (Loss) gain recognised in other (Loss) gain recognised in other comprehensive income (Note )	\$ 276,597 \$ ( 76,451)	285,365 16,232
( comprehensive income (Note ) Proceeds from capital reduction	76,451) - (	16,232 25,000)
Proceeds from capital reduction December 31	- ( \$ 200,146 \$	25,000) 276,597

(1) Significant transactions information 6833/(0(17\$5<',6&/2685(6

D. Acquisition or sale of the same security with the accumulated cost exceeding \$300 million or C. Holding of marketable securities at the end of the period (not including subsidiaries,

E. Acquisition of real estate reaching \$300 million or 20% of paid-in capital or more: Please refer D. Acquisition or sale of the same security with the accumulated cost exceeding \$300 million or

			December 31, 2015
						Recognised in other
				Recognised in profit or loss		comprehensive income
			Favourable	Unfavourable	Favourable	Unfavourable
	Input	Change	change	change	change	change
Financial assets
Equity instruments	44,561 ±1%		ĥ Į	ĥ Į	\$ 446	(\$ 446)
					December 31, 2014
						Recognised in other
				Recognised in profit or loss		comprehensive income
			Favourable	Unfavourable	Favourable	Unfavourable
	Input	Change	change	change	change	change
Financial assets
Equity instruments	44,041 ±1%		ĥ Į	ĥ Į	\$ 440	(\$ 440)

A. Loans to others: Please refer to table 1. (1) 6LJQL¿FDQW WUDQVDFWLRQV LQIRUPDWLRQ
B. Provision of endorsements and guarantees to others: Please refer to table 2. A. Loans to others: Please refer to table 1.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates B. Provision of endorsements and guarantees to others: Please refer to table 2.
and joint ventures): Please refer to table 3. associates and joint ventures): Please refer to table 3.
20% of the Company's paid-in capital: None. 20% of the Company's paid-in capital: None.
to table 4. refer to table 4.
F. Disposal of real estate reaching \$300 million or 20% of paid-in capital or more: None. F. Disposal of real estate reaching \$300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching \$100 million or 20% of paid-in capital or more: Please refer to table 5. G. Purchases or sales of goods from or to related parties reaching \$100 million or 20% of paid-in capital or more: Please refer to table 5.
Please refer to table 6. Please refer to table 6.
I. Trading in derivative instruments undertaken during the reporting periods: None. I. Trading in derivative instruments undertaken during the reporting periods: None.
J. Significant inter-company transactions during the reporting periods: Please refer to table 7.
(2) Information on investees Names, locations and other information of investee companies (not including investees in (2) Information on investees Mainland China): Please refer to table 8.
Mainland China): Please refer to table 8. (3) Information on investments in Mainland China (3) Information on investments in Mainland China None.

H. Receivables from related parties reaching \$100 million or 20% of paid-in capital or more: H. Receivables from related parties reaching \$100 million or 20% of paid-in capital or more:

E. Acquisition of real estate reaching \$300 million or 20% of paid-in capital or more: Please

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Names, locations and other information of investee companies (not including investees in

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(1) General information

Management has determined the reportable operating segments based on the reports reviewed by the chief operating decision-maker that are used to make strategic decisions. The Group's corporate composition, basis for segmentation, and basis for measurement of segment's

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information had no significant changes for the period. The chief operating decision-maker considers the business from a product perspective. considers the business from a product perspective. (2) Measurement of segment information

(2) Measurement of segment information The chief operating decision-maker assesses the performance of the operating segments based on

The chief operating decision-maker assesses the performance of the operating segments based RQ WKH SUR¿W ORVV? EHIRUH WD[HV 7KLV PHDVXUHPHQW EDVLV H[FOXGHV WKH HIIHFWV RI QRQUHFXUULQJ revenues/expenditures from the operating segments. Accounting policies of operating segments are the same as the summary of significant accounting policies in Note 4 to the consolidated ¿QDQFLDO VWDWHPHQWV the profit (loss) before taxes. This measurement basis excludes the effects of non-recurring revenues/expenditures from the operating segments. Accounting policies of operating segments are the same as the summary of significant accounting policies in Note 4 to the consolidated financial statements.

(3) ,QIRUPDWLRQ DERXW VHJPHQW SUR¿W RU ORVV DQG DVVHWV (3) Information about segment profit or loss and assets

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

				Year ended December 31, 2015
						Write-off and
Item		Construction	Hotel	Others		Adjustment		Total
External operating revenue-net	\$	11,578,873	\$ 3,447,203 \$	1,082,430 \$		- \$		16,108,506
Internal operating revenue-net		1,262,640	-	885,033 (		2,147,673)		-
Total segment revenue		12,841,513	3,447,203	1,967,463		-		16,108,506
Costs and expenses	(	11,394,730) (	2,943,106) (	1,049,533)		1,730,262 (		13,657,107)
Segment income		1,446,783	504,097	917,930		-		2,451,399
Other income		328,161	8,081	464,599	(	434,623)		366,218
Other gains and losses	(	9,595) (	2,326) (	20,955)		60,475		27,599
Finance costs	(	308,054) (	63,615) (	373)		36,876	(	335,166)
Share of (loss)/profit of associates and joint ventures accounted for under equity method		842,977	- (	99,611) (		731,756)		11,610
Profit from continuing operations before tax		2,300,272	446,237	1,261,590		-		2,521,660
Income tax expense	(	210,276) (	47,380) (	27,619) (		2,817) (		288,092)
Net income for the year	\$	2,089,996 \$	398,857 \$	1,233,971	\$	-		\$ 2,233,568
Segment assets	\$	49,716,149 \$	7,461,278 \$	2,670,001 (\$		5,366,741) \$		54,480,687

The chief operating decision-maker considers the business from a product type perspective. The chief operating decision-maker considers the business from a product type perspective.

The revenue from external parties, segment income and segment assets reported to the chief operating decision-maker are measured in a manner consistent with the revenue, profit before taxes, and total assets in the financial statements. Information on adjusted consolidated total profit (loss), reportable segment profit after taxes and total assets, and reconciliation for reportable The revenue from external parties, segment income and segment assets reported to the chief operating decision-maker are measured in a manner consistent with the revenue, profit before WD[HV DQG WRWDO DVVHWV LQ WKH ¿QDQFLDO VWDWHPHQWV ,QIRUPDWLRQ RQ DGMXVWHG FRQVROLGDWHG WRWDO SUR¿W (loss), reportable segment profit after taxes and total assets, and reconciliation for reportable operating decision-maker are measured in a manner consistent with the revenue, profit before taxes, and total assets in the financial statements. Information on adjusted consolidated total profit (loss), reportable segment profit after taxes and total assets, and reconciliation for reportable

(4) Reconciliation for segment income (loss) and assets segment assets for this period is provided in Note 14(3). (4) Reconciliation for segment income (loss) and assets segment assets for this period is provided in Note 14(3). The revenue from external parties, segment income and segment assets reported to the chief segment assets for this period is provided in Note 14(3). (5) Information on product and service
(5) Information on product and service Information about product is provided in Note 6(27) and 14(3). (5) Information on product and service Information about product is provided in Note 6(27) and 14(3). The chief operating decision-maker considers the business from a product type perspective. Information about product is provided in Note 6(27) and 14(3). (6) Geographical information
(6) Geographical information (6) Geographical information The Group operates mainly in Taiwan and it has no external customer revenue from other regions.
The Group operates mainly in Taiwan and it has no external customer revenue from other regions. (7) Major customer information (7) Major customer information
(7) Major customer information Major customer information of the Group for the years ended December 31, 2015 and 2014 is as follows: follows:

The Group operates mainly in Taiwan and it has no external customer revenue from other regions.

			Year ended December 31, 2014
			Year ended December 31, 2014	Write-off and
Item	Construction	Hotel	Others	Write-off and Adjustment	Total
External operating revenue-net Item	\$ 15,188,696 Construction	\$ 3,496,351 \$ Hotel	739,418 \$ Others	Adjustment	- \$ 19,424,465 Total
External operating revenue-net Internal operating revenue-net	\$ 15,188,696 1,270,039	\$ 3,496,351 \$ -	739,418 \$ 64,259 (	1,334,298)	- \$ 19,424,465 -
Internal operating revenue-net Total segment revenue	1,270,039 16,458,735	- 3,496,351	64,259 ( 803,677	1,334,298) -	- 19,424,465
Total segment revenue Costs and expenses	16,458,735 ( 14,723,134) (	3,496,351 2,999,933) (	803,677 598,172)	- 1,362,068 (	19,424,465 16,959,171)
Costs and expenses Segment income	( 14,723,134) ( 1,735,601	2,999,933) ( 496,418	598,172) 205,505	1,362,068 ( -	16,959,171) 2,465,294
Segment income Other income	1,735,601 407,291	496,418 10,534	205,505 31,454 (	- 64,507)	2,465,294 384,772
Other income Other gains and losses	407,291 ( 193,301) (	10,534 1,739) (	31,454 ( 45,965)	64,507) 201,391 (	384,772 39,614)
Other gains and losses Finance costs	( 193,301) ( ( 316,545) (	1,739) ( 65,010) (	45,965) 1)	201,391 ( 31,260	39,614) ( 350,296)
Finance costs Share of (loss)/profit of	( 316,545) ( 421,552	65,010) ( -	1) - (	31,260 338,607)	( 350,296) 82,945
associates and joint ventures Share of (loss)/profit of accounted for under equity associates and joint ventures method accounted for under equity method Profit from continuing	421,552 2,054,598	- 440,203	- ( 190,993	338,607) -	82,945 2,543,101
operations before tax Profit from continuing Income tax expense operations before tax	2,054,598 ( 103,110) (	440,203 49,987) (	190,993 10,370)	-	2,543,101 - ( 163,467)
Income tax expense Net income for the year	( 103,110) ( \$ 1,951,488 \$	49,987) ( 390,216 \$	10,370) 180,623	- ( \$ -	163,467) \$ 2,379,634
Net income for the year Segment assets	\$ 1,951,488 \$ \$ 50,936,218\$	390,216 \$ 7,576,215\$	180,623 2,601,053 (\$	\$ - 5,062,518) \$	\$ 2,379,634 56,050,968
Segment assets (4) Reconciliation for segment income (loss) and assets	\$ 50,936,218 \$	7,576,215 \$	2,601,053 (\$	5,062,518) \$	56,050,968

Major customer information of the Group for the years ended December 31, 2015 and 2014 is as Major customer information of the Group for the years ended December 31, 2015 and 2014 is as

	2015		2014 Years ended December 31,
	Revenue 2015	Segment		Revenue 2014	Segment
A Company	\$ 280,850 Revenue	Construction Segment	\$	2,915,465 Revenue	Construction Segment
A Company	\$ 280,850	segment Construction	\$	2,915,465	segment Construction
		segment			segment

Years ended December 31,

For the convenience of readers and for information purpose only, the auditors' report and the DFFRPSDQ\LQJ ¿QDQFLDO VWDWHPHQWV KDYH EHHQ WUDQVODWHG LQWR (QJOLVK IURP WKH RULJLQDO &KLQHVH YHUVLRQ prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-ODQJXDJH DXGLWRUV¶ UHSRUW DQG ¿QDQFLDO VWDWHPHQWV VKDOO SUHYDLO

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To the Board of Directors and Shareholders of Prince Housing & Development Corp.

We have audited the accompanying parent company only balance sheets of Prince Housing & Development Corp. as of December 31, 2015 and 2014, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended. These parent company only financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these parent company only financial statements based on RXU DXGLWV :H GLG QRW DXGLW WKH ¿QDQFLDO VWDWHPHQWV RI FHUWDLQ LQYHVWPHQWV DFFRXQWHG IRU XVLQJ HTXLW\ method. The investments accounted for using equity method amounted to NT\$979,024 thousand and 17 WKRXVDQG DV RI 'HFHPEHU DQG UHVSHFWLYHO\ DQG WKH VKDUH RI SUR¿W ORVV? RI subsidiaries, associates and joint ventures accounted for using equity method was (NT\$27,182) thousand and NT\$13,657 thousand for the years then ended, respectively. Those financial statements and the information disclosed in Note 13 were audited by other independent accountants whose reports thereon have been furnished to us, and our opinion expressed herein is based solely on the audit reports of the other independent accountants.

We conducted our audits in accordance with the "Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants" and generally accepted auditing standards in the Republic of China. Those 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 H[DPLQLQJ RQ D WHVW EDVLV HYLGHQFH VXSSRUWLQJ WKH DPRXQWV DQG GLVFORVXUHV LQ WKH ¿QDQFLDO VWDWHPHQWV An audit also includes assessing the accounting principles used and significant estimates made by PDQDJHPHQW DV ZHOO DV HYDOXDWLQJ WKH RYHUDOO ¿QDQFLDO VWDWHPHQW SUHVHQWDWLRQ :H EHOLHYH WKDW RXU DXGLWV and the reports of the other independent accountants provide a reasonable basis for our opinion.

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	of New Taiwan dollars)

In our opinion, based on our audits and the reports of other independent accountants, the parent company only financial statements referred to in the first paragraph present fairly, in all material respects, the ¿QDQFLDO SRVLWLRQ RI 3ULQFH +RXVLQJ 'HYHORSPHQW &RUS DV RI 'HFHPEHU DQG DQG LWV ¿QDQFLDO SHUIRUPDQFH DQG FDVK ÀRZV IRU WKH \HDUV WKHQ HQGHG LQ FRQIRUPLW\ ZLWK WKH ³5XOHV *RYHUQLQJ the Preparation of Financial Statements by Securities Issuers".

7KH DFFRPSDQ\LQJ SDUHQW FRPSDQ\ RQO\ ¿QDQFLDO VWDWHPHQWV DUH QRW LQWHQGHG WR SUHVHQW WKH ¿QDQFLDO position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures DQG SUDFWLFHV LQ WKH 5HSXEOLF RI &KLQD JRYHUQLQJ WKH DXGLW RI VXFK ¿QDQFLDO VWDWHPHQWV PD\ GLIIHU IURP those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, WKH DFFRPSDQ\LQJ QRQFRQVROLGDWHG ¿QDQFLDO VWDWHPHQWV DQG UHSRUW RI LQGHSHQGHQW DFFRXQWDQWV DUH QRW intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

PricewaterhouseCoopers, Taiwan

March 23, 2016

Assets	Notes	December 31, 2015 AMOUNT	%	December 31, 2014 AMOUNT	%
Current assets
Cash and cash equivalents	6(1)	% 3-267-9:1		6 % 2-27:-323	3
Notes receivable, net	6(3)	222-699		252-362
Accounts receivable, net	6(4) and 7	937-895	3	5-657-999	21
Other receivables		2-829		4-674
Other receivables - related parties	7	72-849		2-:96
Inventories, net	5(2), 6(5), 7 and 8	32-423-:37	57	2:-45:-987	52
Prepayments		335-938		411-:29	2
Other financial assets - current	8	2-865-::1	5	3-6:3-329	7
Other current assets	6(6)	3:8-662	2	618-356	2
Total current assets		37-85:-123	69	39-724-267	72
Non-current assets
Financial assets at fair value through profit	6(2) and 8
or loss - non-current		88-::3		88-658
Available-for-sale financial assets -	6(7) and 8
non-current		2-653-4:3	4	2-693-766	5
Financial assets carried at cost -	6(8) and 8
non-current		998-63:	3	987-154	3
Investments accounted for under equity	6(9) and 8
method		6-887-589	24	5-493-181	21
Property, plant and equipment, net	6(10) and 8	6:7-868	2	6:1-837	2
Investment property - net	6(11) and 8	7-16:-763	24	7-1:3-291	24
Intangible assets	6(12)	3-411-54:	6	3-472-7:3	6
Refundable deposits	9	5:4-5::	2	525-743	2
Other financial assets - non-current	8	843-749	3	632-277	2
Other non-current assets	7 and 8	747-751	3	2-213-529	3
Total non-current assets		2:-215-127	53	29-112-23:	4:
Total assets		% 56-964-139	211 %	57-725-396	211

PRINCE HOUSING & DEVELOPMENT CORP. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31 PRINCE HOUSING & DEVELOPMENT CORP. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31 (Expressed in thousands of New Taiwan dollars)

Pricewaterhouse Coopers, Taiwan

(Continued)

Financial Information

PRINCE HOUSING & DEVELOPMENT CORP. PARENT COMPANY ONLY BALANCE SHEETS PRINCE HOUSING & DEVELOPMENT CORP. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31

DECEMBER 31 (Expressed in thousands of New Taiwan dollars)

			December 31, 2015		December 31, 2014
Liabilities and Equity	Notes		AMOUNT	%	AMOUNT	%
Current liabilities
Short-term borrowings	6(13) and 8	%	3-375-985		6 % 3-:56-695	7
Short-term notes and bills payable	6(14) and 8		2-57:-142	4	2-:79-193	5
Notes payable			22-1:5		21-486
Accounts payable			3-459-834	6	3-461-189	6
Accounts payable - related parties	7		445-4:4	2	4:9-829	2
Other payables			866-716	3	818-159	3
Other payables - related parties	7		228-561
Current income tax liabilities	6(31)		84-285		92-18:
Receipts in advance	6(15)		2-745-366	5	3-:32-358	7
Long-term liabilities, current portion	6(17) and 8		473-981	2	3-172-581	6
Other current liabilities			5-779		49-472
Total current liabilities			:-487-248	32	24-593-153	3:
Non-current liabilities
Bonds payable	6(16)		5-611-111	21	5-611-111	21
Long-term borrowings	6(17) and 8		7-3:9-267	25	5-478-73:	21
Provisions for liabilities - non-current	6(18)		95-628		92-831
Net defined benefit liability - non-current 6(19)			217-825		9:-6:7
Guarantee deposits received			238-582		239-757
Other non-current liabilities	6(9)		639-:68	2
Total non-current liabilities			22-756-926	36	:-278-6:2	31
Total liabilities			32-132-:63	57	33-75:-744	5:
(TXLW\
Share capital
Common stock	6(21)		27-344-372	46	27-734-529	47
Capital surplus	6(20)(22)
Capital surplus			3-371-624	6	2-:3:-8:4	5
Retained earnings	6(21)(23)(31)
Legal reserve			2-531-8:7	4	2-291-:35	3
Unappropriated retained earnings			4-619-511	9	3-965-849	7
2WKHU HTXLW\ LQWHUHVW	6(24)
Other equity interest			2-51:-21:	4	2-547-32:	4
Treasury stocks	6(21)	)	2-114*		. ) 71-551*
7RWDO HTXLW\			35-942-187	65	34-:75-763	62
7RWDO OLDELOLWLHV DQG HTXLW\		%	56-964-139	211 %	57-725-396	211

~4~ 7KH DFFRPSDQ\LQJ QRWHV DUH DQ LQWHJUDO SDUW RI WKHVH SDUHQW FRPSDQ\ RQO\ ¿QDQFLDO VWDWHPHQWV See report of independent accountants dated March 23, 2016.

PRINCE HOUSING & DEVELOPMENT CORP. PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME PRINCE HOUSING & DEVELOPMENT CORP. PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31

				Year ended December 31
			2015		2014
Items	Notes		AMOUNT	%	AMOUNT	%
Operating revenue	6(26) and 7	%	9-874-151	211 %	21-9:3-321	211
Operating costs	6(5)(12)(30) and 7 )		6-742-229* )	75* )	8-427-579* )	78*
Gross profit			4-242-:33	47	4-686-853	44
2SHUDWLQJ H[SHQVHV	6(30)
Selling expenses		)	629-2::* )	7* )	616-82:* )	6*
General and administrative expenses		)	2-118-819* )	23* )	2-194-265* )	21*
7RWDO RSHUDWLQJ H[SHQVHV		)	2-636-:18* )	29* )	2-699-984* )	26*
Operating profit			2-717-126	29	2-:97-97:	29
Non-RSHUDWLQJ LQFRPH DQG H[SHQVHV
Other income	6(27)		379-397	4	472-127	4
Other gains and losses	6(2)(28)		24-596		8-:24
Finance costs	6(5)(29) and 7	)	394-824* )	4* )	387-573* )	3*
Share of profit of subsidiaries,associates	6(9)
and joint ventures accounted for using
equity method, net			953-:88	21	532-663	5
Total non-operating revenue and
H[SHQVHV			952-146	21	625-12:	6
Profit EHIRUH LQFRPH WD[			3-558-161	39	3-611-999	34
Income tax expense	6(31)	)	31:-361* )	3* )	213-281* )	2*
Profit for the year		%	3-348-911	37 %	3-4:9-829	33
Other comprehensive income
Components of other comprehensive loss
that will not be reclassified to profit or loss
Actuarial loss on defined benefit plan	6(19)	) %	27-173*	. ) %	5-817*
Share of other comprehensive income of
subsidiaries, associates and joint ventures
accounted for under equity method,
components of other comprehensive
income that will not be reclassified to
profit or loss			2-77:		:61
Components of other comprehensive
loss that will not be reclassified to
profit or loss		)	25-4:4*	. )	4-867*
Components of other comprehensive loss
that will be reclassified to profit or loss
Other comprehensive loss, before tax,	6(7)
available-for-sale financial assets		)	4:-387* )	2* )	668-291* )	6*
Share of other comprehensive income
(loss) of subsidiaries, associates and joint
ventures accounted for under equity
method, components of other
comprehensive income that will not be
reclassified to profit or loss			23-277	. )	7-323*
Components of other comprehensive
loss that will be reclassified to profit
or loss		)	38-221* )	2* )	674-4:3* )	6*
Other comprehensive loss for the year		) %	52-614* )	2* ) %	678-259* )	6*
Total comprehensive income for the year		%	3-2:7-3:8	36 %	2-942-681	28

(DUQLQJV SHU 6KDUH LQ GROODUV	6(32)
%DVLF HDUQLQJV SHU VKDUH		%		2/49 %		2/62
Diluted earnings per share		%		2/47 %		2/62
Assuming the Company treated the stocks held by a subsidiary as long-term investments rather than treasury stock, the pro forma
LQIRUPDWLRQ LV DV IROORZV
Net income		%		3-288-437 %		3-33:-546
(DUQLQJV SHU 6KDUH LQ GROODUV
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FOR THE YEARS ENDED DECEMBER 31 (Expressed in thousands of New Taiwan dollars, except for earnings per share amounts) (Expressed in thousands of New Taiwan dollars, except for earnings per share amounts)

~5~ 7KH DFFRPSDQ\LQJ QRWHV DUH DQ LQWHJUDO SDUW RI WKHVH SDUHQW FRPSDQ\ RQO\ ¿QDQFLDO VWDWHPHQWV See report of independent accountants dated March 23, 2016.

170 171

Financial Information

PRINCE HOUSING & DEVELOPMENT CORP. PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31 (Expressed in thousands of New Taiwan dollars) PRINCE HOUSING & DEVELOPMENT CORP. PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31 (Expressed in thousands of New Taiwan dollars)

	Total	595-288 678-259 % 29-319-86: 3-4:9-829 84-611 5-446-111 % 34-:75-763 % 34-:75-763 ) )	2-43:-984 52-614 3-348-911 % 35-942-187 ) )		PRINCE HOUSING & DEVELOPMENT CORP. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31 PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS (Expressed in thousands of New Taiwan dollars)	PRINCE HOUSING & DEVELOPMENT CORP. FOR THE YEARS ENDED DECEMBER 31
		71-551 71-551 71-551 *	2-114 * 6:-548			(Expressed in thousands of New Taiwan dollars) Notes	2015	2014
	Treasury stocks	)% )% )%	)%		CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss)		% 3-558-161
	available-for-sal Unrealized gain e financial or loss on assets	676-:52 * 3-111-581 2-545-63: 2-545-63:	38-237 * 2-518-514		Share -based compensation cost Gain on financial assets at fair value through profit or loss Provision for bad debts expense transferred to revenue 6(3)	6(20) 6(2)(28)	) 556 *	84-611
	Other equity interest translation of differences operations Exchange arising on foreign	% % % ) 96: * 3-65: 2-7:1 2-7:1	% ) 27 2-817		Write -off of uncollectible accounts Share of profit of subsidiaries, associates and joint ventures accounted for under equity method Loss on disposal of property, plant and equipment Depreciation Amortization Interest expense	6(3)(4) 6(9) 6(28) 6(30) 6(12)(30) 6(29)	) 4-461 ) 953-:88 5-418 224-586 72-364 394-824	228-17: 72-364 387-573
PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY (Expressed in thousands of New Taiwan dollars) MBER 31	retained earnings Unappropriated	)% % % 269-792 595-288 595-288 4-867 3-4:9-829 3-965-849 3-965-849 2-697-922 % % %	% 34:-983 2-43:-984 25-4:4 * 3-348-911 4-619-511 %	The accompanying notes are an integral part of these parent company only financial statements.	7KH DFFRPSDQ\LQJ QRWHV DUH DQ LQWHJUDO SDUW RI WKHVH SDUHQW FRPSDQ\ RQO\ ¿QDQFLDO VWDWHPHQWV See report of independent accountants dated March 23, 2016. Interest income Dividend income Impairment loss on financial assets Gain on disposal of long -term investments Gain on unrealised foreign exchange Changes in operating assets and liabilities Changes in operating assets	6(27) 6(27) 6(7)(28)	) 8-683 ) 245-223 ) 57: ) 25-787	22-925
(Expressed in thousands of New Taiwan dollars) FOR THE YEARS ENDED DECEMBER 31 FOR THE YEARS ENDED DECE	Retained Earnings Legal reserve	) ) ) ) 2-291-:35 2-291-:35 2-133-354 269-792 % % %	) ) ) 34:-983 2-531-8:7 %	See report of independent accountants dated March 23, 2016. ~6~	Notes receivable Accounts receivable Other receivables Other receivables - related parties Inventories Prepayments Other current assets		3:-96: 4-834-369 2-685 ) 6:-864 ) 2-9::-::8 87-1:2 31:-7:5	44-214 48-743 312-3:1
	Capital surplus	84-611 2-446-111 632-3:4 2-:3:-8:4 2-:3:-8:4 % % %	441-831 3-371-624 %		Other non -current assets Changes in operating liabilities Notes payable Accounts payable Accounts payable - related parties Other payables		451-77: 82: ) 2-466 ) 75-436 59-::4	8-261 393-558 45-128 87-284
	common stock Share capital -	595-288 4-111-111 % 27-734-529 % 27-734-529 % 24-24:-352	4:1-268 * % 27-344-372 )		Other payables - related parties Receipts in advance Other current liabilities Provisions for liabilities - non -current Net defined benefit liability - non -current Cash inflow (outflow) generated from operations		228-561 ) 2-397-::3 ) 44-7:4 3-8:8 2-167 4-223-353	3-75:
	Notes	6(7)(19)(24) 6(20)(22) 6(21)(22) 6(23) 6(32)	6(7)(19)(24) 6(21)(22) 6(23) 6(32)		Interest received Cash dividends received Interest paid Income tax paid Net cash flows from (used in) operating activities		8-954 381-:88 ) 395-25: ) 328-266 3-99:-869	23-559 342-168
		Other comprehensive (loss) income for Distribution of 2013 earnings (Note 1) Share-based payment transactions Balance at December 31, 2014 Balance at January 1, 2014 Balance at January 1, 2015 Cash capital increase Stock dividends Profit for the year Cash dividends Legal reserve the year 2014 2015	Other comprehensive (loss) income for Distribution of 2014 earnings (Note 2) Balance at December 31, 2015 Treasury stock transactions Profit for the year Cash dividends Legal reserve the year	Note 1: Employees' bonus of \$29,753 and directors' and supervisors' remuneration of \$44,629 have been deducted from the parent company only statement of comprehensive income. The differences, employees' bonus of \$1,191 and directors' and supervisors' remuneration of \$1,785, with the amounts approved at the stockholders' meeting for appropriation were recognised in Note 2: Employees' bonus of \$43,177 and directors' and supervisors' remuneration of \$64,765 have been deducted from the parent company only statement of comprehensive income. There is no Note 1: Employees' bonus of \$29,753 and directors' and supervisors' remuneration of \$44,629 have been deducted from the parent company only statement of comprehensive income. The differences, employees' bonus of \$1,191 and directors' and supervisors' remuneration of Note 2: Employees' bonus of \$43,177 and directors' and supervisors' remuneration of \$64,765 have been deducted from the parent company only statement of comprehensive income. There is no difference with the amounts approved at the stockholders' meeting for \$1,785, with the amounts approved at the stockholders' meeting for appropriation were recognised in the 2014 parent company only statement of comprehensive income. difference with the amounts approved at the stockholders' meeting for appropriation. the 2014 parent company only statement of comprehensive income. appropriation.		(Continued) (Continued) ~7~
		Prince Housing & Development Corp.					Annual Report 2015

	Notes		2015		2014
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax		%	3-558-161	%	3-611-999
Adjustments
Adjustments to reconcile profit (loss)
Share -based compensation cost	6(20)				84-611
Gain on financial assets at fair value through profit or	6(2)(28)
loss		)	556 *	)	558 *
Provision for bad debts expense transferred to revenue 6(3)				)	2-189 *
Write -off of uncollectible accounts	6(3)(4)	)	4-461 *	)	3-1:5 *
Share of profit of subsidiaries, associates and joint	6(9)
ventures accounted for under equity method		)	953-:88 *	)	532-663 *
Loss on disposal of property, plant and equipment	6(28)		5-418		843
Depreciation	6(30)		224-586		228-17:
Amortization	6(12)(30)		72-364		72-364
Interest expense	6(29)		394-824		387-573
Interest income	6(27)	)	8-683 *	)	23-378 *
Dividend income	6(27)	)	245-223 *	)	31:-567 *
Impairment loss on financial assets	6(7)(28)				22-925
Gain on disposal of long -term investments		)	57: *
Gain on unrealised foreign exchange		)	25-787 *	)	33-815 *
Changes in operating assets and liabilities
Changes in operating assets
Notes receivable			3:-96:	)	53-15: *
Accounts receivable Other receivables			4-834-369 2-685	)	2-736-536 * 44-214
Other receivables - related parties		)	6:-864 *	)	2-:96 *
Inventories		)	2-9::-::8 *	)	4-156-96: *
Prepayments			87-1:2		48-743
Other current assets			31:-7:5		312-3:1
Other non -current assets			451-77:		8-261
Changes in operating liabilities
Notes payable			82:	)	3-865 *
Accounts payable		)	2-466 *		393-558
Accounts payable - related parties		)	75-436 *		45-128
Other payables			59-::4		87-284
Other payables - related parties			228-561
Receipts in advance		)	2-397-::3 *	)	231-983 *
Other current liabilities		)	44-7:4 *	)	48-931 *
Provisions for liabilities - non -current			3-8:8		3-75:
Net defined benefit liability - non -current			2-167	)	3-823 *
Cash inflow (outflow) generated from operations			4-223-353	)	2-943-9:6 *
Interest received			8-954		23-559
Cash dividends received			381-:88		342-168
Interest paid		)	395-25: *	)	385-811 *
Income tax paid		)	328-266 *	)	74-554 *
Net cash flows from (used in) operating activities			3-99:-869	)	2-:38-644 *

PRINCE HOUSING & DEVELOPMENT CORP. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31 PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS (Expressed in thousands of New Taiwan dollars)

PRINCE HOUSING & DEVELOPMENT CORP. FOR THE YEARS ENDED DECEMBER 31

Financial Information

PRINCE HOUSING & DEVELOPMENT CORP. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31 PRINCE HOUSING & DEVELOPMENT CORP. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31 (Expressed in thousands of New Taiwan dollars)

	Notes		2015		2014

CASH FLOWS FROM INVESTING ACTIVITIES
Decrease in other financial assets - current		%	948-339	%	59:-642
Return of share capital from available-for-sale financial
assets - non-current					36-111
Decrease in available-for-sale financial assets - non-current			4-284
Increase in investments accounted for under equity method		)	311-111 *
Return of share capital from investments accounted for
under equity method			25-397		31-228
Proceeds from disposal of investment accounted for under
equity method					562
Acquisition of cash from consolidation			52-794
Acquisition of property, plant and equipment	6(10)	)	44-858 * )		21-482 *
Proceeds from disposal of property, plant and equipment			5-629		53:
(Increase) decrease in deposits out		)	89-978 *		22-2:2
Increase in other financial assets - non-current		)	322-583 * )		49:-17: *
Net cash flows from investing activities			487-913		258-38:
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in short-term borrowings		)	791-821 * )		622-527 *
(Decrease) increase in short-term notes and bills payable		)	5::-162 *		674-9:7
Repayment of long-term borrowings		)	5-983-281 * )		7-858-488 *
Proceeds from of long-term borrowings			6-215-1:8		5-52:-461
Decrease in guarantee deposits received		)	2-286 * )		8-859 *
Cash dividends paid	6(23)	)	2-43:-984 * )		595-288 *
Proceeds from cash capital increase	6(21)				5-446-111
Net cash flows (used in) from financing activities		)	3-389-993 *		2-678-639
Net increase (decrease) in cash and cash equivalents			:98-789	)	323-837 *
Cash and cash equivalents at beginning of year			2-27:-323		2-492-:49
Cash and cash equivalents at end of year		%	3-267-9:1	%	2-27:-323

See report of independent accountants dated March 23, 2016. ~8~ 7KH DFFRPSDQ\LQJ QRWHV DUH DQ LQWHJUDO SDUW RI WKHVH SDUHQW FRPSDQ\ RQO\ ¿QDQFLDO VWDWHPHQWV See report of independent accountants dated March 23, 2016.

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

1. HISTORY AND ORGANIZATION

Prince Housing & Development Corp. (the "Company") was established in September 1973, under the Company Act and other related regulations. The Company is primarily engaged in the construction, leasing and sale of public housing, commercial building, tourism/recreation place (children's playground, water park, etc.) and parking lot/parking tower, and leasing and sale of real estate. The common shares of the Company have been listed on the Taiwan Stock Exchange since April 1991.

2. 7+( '\$7(2)\$87+25,=\$7,21 )25 ,668\$1&(2)7+( 3\$5(17 &203\$1< 21/<),1\$1&,\$/67\$7(0(176\$1'352&('85(6)25\$87+25,=\$7,21

These parent company only financial statements were authorized for issuance by the Board of Directors on March 23, 2016.

\$33/,&\$7,212)1(:67\$1'\$5'6\$0(1'0(176\$1',17(535(7\$7,216

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting

According to Financial-Supervisory-Securities-Auditing No. 1030010325 issued by FSC on April 3, 2014, commencing 2015, companies with shares listed on the TWSE or traded on the Taipei Exchange or Emerging Stock Market shall adopt the 2013 version of IFRS (not including IFRS 9, 'Financial instruments') as endorsed by the FSC and Regulations Governing the Preparation of Financial Reports by Securities Issuers effective January 1, 2015 (collectively referred herein DV WKH ³ YHUVLRQ RI ,)56V´? LQ SUHSDULQJ WKH SDUHQW FRPSDQ\ RQO\ ¿QDQFLDO VWDWHPHQWV 7KH

Standards ("IFRSs") as endorsed by the Financial Supervisory Commission ("FSC") impact of adopting the 2013 version of IFRSs is listed below:
\$ ,\$6 UHYLVHG? µ(PSOR\HH EHQH¿WV¶ DERXW GH¿QHG EHQH¿W SODQV DFFRUGLQJO\

C. IFRS 12, 'Disclosure of interests in other entities'

% ,\$6 µ3UHVHQWDWLRQ RI ¿QDQFLDO VWDWHPHQWV¶ groups on the basis of whether they are potentially reclassifiable to profit or loss subsequently

The amendment requires entities to separate items presented in OCI classified by nature into two groups on the basis of whether they are potentially reclassifiable to profit or loss subsequently when specific conditions are met. If the items are presented before tax then WKH WD[ UHODWHG WR HDFK RI WKH WZR JURXSV RI 2&, LWHPV WKRVH WKDW PLJKW EH UHFODVVL¿HG DQG WKRVH WKDW ZLOO QRW EH UHFODVVL¿HG? PXVW EH VKRZQ VHSDUDWHO\ \$FFRUGLQJO\ WKH &RPSDQ\ KDV adjusted its presentation of the statement of comprehensive income. when specific conditions are met. If the items are presented before tax then the tax related to each of the two groups of OCI items (those that might be reclassified and those that will not be reclassified) must be shown separately. Accordingly, the Company has adjusted its presentation of the statement of comprehensive income. C. IFRS 12, 'Disclosure of interests in other entities' The standard integrates the disclosure requirements for subsidiaries, joint arrangements,

The standard integrates the disclosure requirements for subsidiaries, joint arrangements, associates and unconsolidated structured entities. Also, the Company has disclosed additional information about its interests in consolidated entities and unconsolidated entities accordingly. associates and unconsolidated structured entities. Also, the Company has disclosed additional information about its interests in consolidated entities and unconsolidated entities accordingly. D. IFRS 13, 'Fair value measurement'

D. IFRS 13, 'Fair value measurement' The standard defines fair value as the price that would be received to sell an asset or paid to

7KH VWDQGDUG GH¿QHV IDLU YDOXH DV WKH SULFH WKDW ZRXOG EH UHFHLYHG WR VHOO DQ DVVHW RU SDLG WR transfer a liability in an orderly transaction between market participants at the measurement date. The standard sets out a framework for measuring fair value from market participants' SHUVSHFWLYH DQG UHTXLUHV GLVFORVXUHV DERXW IDLU YDOXH PHDVXUHPHQWV )RU QRQ¿QDQFLDO DVVHWV only, fair value is determined based on the highest and best use of the asset. Based on the &RPSDQ\¶V DVVHVVPHQW WKH DGRSWLRQ RI WKH VWDQGDUG KDV QR VLJQL¿FDQW LPSDFW RQ LWV SDUHQW company only financial statements, and the Company has disclosed additional information about fair value measurements accordingly. transfer a liability in an orderly transaction between market participants at the measurement date. The standard sets out a framework for measuring fair value from market participants' perspective, and requires disclosures about fair value measurements. For non-financial assets only, fair value is determined based on the highest and best use of the asset. Based on the Company's assessment, the adoption of the standard has no significant impact on its parent company only financial statements, and the Company has disclosed additional information about fair value measurements accordingly.

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

None. None.

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

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

	Effective date by International
New Standards, Interpretations and Amendments	Accounting Standards Board
IFRS 9, 'Financial instruments'	January 1, 2018
Sale of contribution of assets between an investor and its associate or joint venture (amendments to IFRS 10 and IAS 28)	To be determined by International Accounting Standards Board
Investment Entities: Applying the Consolidation Exception	January 1, 2016
(IFRS 10, IFRS 12 and IAS 28)

unless otherwise stated. (1) Compliance statement (1) Compliance statement the "Rules Governing the Preparation of Financial Statements by Securities Issuers".
These parent company only financial statements are prepared by the Company in accordance with (2) Basis of preparation
(2) Basis of preparation prepared under the historical cost convention:
prepared under the historical cost convention: WKURXJK SUR¿W RU ORVV
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profit or loss.
(b)Available-for-sale financial assets measured at fair value.
~11~

amendments above. The impact will be disclosed when the assessment is complete. **6800\$5<2)6,1,),&\$17\$&&2817,132/,&,(6**

Effective date by International
Accounting Standards Board






January 1, 2017
January 1, 2016

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies applied in the preparation of these parent company only financial statements are set out below. These policies have been consistently applied to all the periods presented, 7KH SULQFLSDO DFFRXQWLQJ SROLFLHV DSSOLHG LQ WKH SUHSDUDWLRQ RI WKHVH SDUHQW FRPSDQ\ RQO\ ¿QDQFLDO statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

New Standards, Interpretations and Amendments Accounting for acquisition of interests in joint operations (amendments to IFRS 11) January 1, 2016 IFRS 14, 'Regulatory deferral accounts' January 1, 2016 IFRS 15, 'Revenue from contracts with customers' January 1, 2018 IFRS 16, 'Leases' January 1, 2019 Disclosure initiative (amendments to IAS 1) January 1, 2016 Disclosure initiative (amendments to IAS 7) January 1, 2017 Recognition of deferred tax assets for unrealised losses (amendments to IAS 12) Clarification of acceptable methods of depreciation and amortization (amendments to IAS 16 and IAS 38) Agriculture: bearer plants (amendments to IAS 16 and IAS 41) January 1, 2016 Defined benefit plans: employee contributions (amendments to IAS 19R) July 1, 2014 Equity method in separate financial statements (amendments to IAS 27) January 1, 2016 Recoverable amount disclosures for non-financial assets (amendments to IAS 36) January 1, 2014 Novation of derivatives and continuation of hedge accounting (amendments to IAS 39) January 1, 2014 IFRIC 21, 'Levies' January 1, 2014 Improvements to IFRSs 2010-2012 July 1, 2014 Improvements to IFRSs 2011-2013 July 1, 2014

the "Rules Governing the Preparation of Financial Statements by Securities Issuers". A. Except for the following items, these parent company only financial statements have been

A.Except for the following items, these parent company only financial statements have been (a) Financial assets and financial liabilities (including derivative instruments) at fair value

(a)Financial assets and financial liabilities (including derivative instruments) at fair value through (c) Liabilities on cash-settled share-based payment arrangements measured at fair value.

Improvements to IFRSs 2012-2014 January 1, 2016

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B. The preparation of financial statements in compliance with the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the "IFRSs") requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company's accounting policies. The areas involving

a higher degree of judgment or complexity, or areas where assumptions and estimates are VLJQL¿FDQW WR WKH SDUHQW FRPSDQ\ RQO\ ¿QDQFLDO VWDWHPHQWV DUH GLVFORVHG LQ 1RWH

(3) Foreign currency translation

7KH SDUHQW FRPSDQ\ RQO\ ¿QDQFLDO VWDWHPHQWV DUH SUHVHQWHG LQ 1HZ 7DLZDQ GROODUV ZKLFK LV WKH Company's functional and presentation currency.

A. Foreign currency transactions and balances
(a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such WUDQVDFWLRQV DUH UHFRJQLVHG LQ SUR¿W RU ORVV LQ WKH SHULRG LQ ZKLFK WKH\ DULVH
(b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences DULVLQJ XSRQ UHWUDQVODWLRQ DW WKH EDODQFH VKHHW GDWH DUH UHFRJQLVHG LQ SUR¿W RU ORVV
(c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.
(d) All foreign exchange gains and losses are presented in the statement of comprehensive income within 'other gains and losses'.
B. Translation of foreign operations
D? 7KH RSHUDWLQJ UHVXOWV DQG ¿QDQFLDO SRVLWLRQ RI DOO WKH &RPSDQ\ HQWLWLHV DVVRFLDWHV DQG jointly controlled entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
- i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;
- ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and
- iii. All resulting exchange differences are recognised in other comprehensive income.
(b) When the foreign operation partially disposed of or sold is an associate or jointly controlled entity, exchange differences that were recorded in other comprehensive LQFRPH DUH SURSRUWLRQDWHO\ UHFODVVL¿HG WR SUR¿W RU ORVV DV SDUW RI WKH JDLQ RU ORVV RQ VDOH In addition, even when the Company still retains partial interest in the former foreign associate or jointly controlled entity after losing significant influence over the former foreign associate, or losing joint control of the former jointly controlled entity, such transactions should be accounted for as disposal of all interest in these foreign operations.
(c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, if the Company retains partial interest in the former foreign subsidiary after

losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation.

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(a) Assets arising from operating activities that are expected to be realised, or are intended to

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(d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to pay off liabilities more than twelve months after the

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A. Financial assets at fair value through profit or loss are financial assets held for trading. )LQDQFLDO DVVHWV DUH FODVVL¿HG LQ WKLV FDWHJRU\ RI KHOG IRU WUDGLQJ LI DFTXLUHG SULQFLSDOO\ IRU

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the purpose of selling in the short-term.
recognised and derecognised using trade date accounting.
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Related transaction costs are expensed in profit or loss. These financial assets are subsequently remeasured and stated at fair value, and any changes in the fair value of these

A. Available-for-sale financial assets are non-derivatives that are either designated in this

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(8) Receivables

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A. The Company assesses at each balance sheet date whether there is objective evidence that D ¿QDQFLDO DVVHW RU D JURXS RI ¿QDQFLDO DVVHWV LV LPSDLUHG DV D UHVXOW RI RQH RU PRUH HYHQWV that occurred after the initial recognition of the asset (a 'loss event') and that loss event (or HYHQWV? KDV DQ LPSDFW RQ WKH HVWLPDWHG IXWXUH FDVK ÀRZV RI WKH ¿QDQFLDO DVVHW RU JURXS RI ¿QDQFLDO DVVHWV WKDW FDQ EH UHOLDEO\ HVWLPDWHG
B. The criteria that the Company uses to determine whether there is objective evidence of an impairment loss is as follows:
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- (b) A breach of contract, such as a default or delinquency in interest or principal payments;
- (c) The disappearance of an active market for that financial asset because of financial GLI¿FXOWLHV
- (d) It becomes probable that the borrower will enter bankruptcy or other financial reorganisation;
- (e) Observable data indicating that there is a measurable decrease in the estimated future cash ÀRZV IURP D JURXS RI ¿QDQFLDO DVVHWV VLQFH WKH LQLWLDO UHFRJQLWLRQ RI WKRVH DVVHWV DOWKRXJK the decrease cannot yet be identified with the individual financial asset in the group, including adverse changes in the payment status of borrowers in the group or national or local economic conditions that correlate with defaults on the assets in the group;
- I? ,QIRUPDWLRQ DERXW VLJQL¿FDQW FKDQJHV ZLWK DQ DGYHUVH HIIHFW WKDW KDYH WDNHQ SODFH LQ WKH technology, market, economic or legal environment in which the issuer operates, and indicates that the cost of the investment in the equity instrument may not be recovered; or a significant or prolonged decline in the fair value of an investment in an equity instrument below its cost.
C. When the Company assesses that there has been objective evidence of impairment and an impairment loss has occurred, accounting for impairment is made as follows according to the FDWHJRU\ RI ¿QDQFLDO DVVHWV
- (a) Financial assets measured at amortised cost

The amount of the impairment loss is measured as the difference between the asset's FDUU\LQJ DPRXQW DQG WKH SUHVHQW YDOXH RI HVWLPDWHG IXWXUH FDVK ÀRZV GLVFRXQWHG DW WKH ¿QDQFLDO DVVHW¶V RULJLQDO HIIHFWLYH LQWHUHVW UDWH DQG LV UHFRJQLVHG LQ SUR¿W RU ORVV,I LQ a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment loss was recognised, the SUHYLRXVO\ UHFRJQLVHG LPSDLUPHQW ORVV LV UHYHUVHG WKURXJK SUR¿W RU ORVV WR WKH H[WHQW WKDW the carrying amount of the asset does not exceed its amortised cost that would have been at the date of reversal had the impairment loss not been recognised previously. Impairment loss is recognised and reversed by adjusting the carrying amount of the asset through the use of an impairment allowance account. (b) Financial assets measured at cost

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

use of an impairment allowance account.
F? \$YDLODEOHIRUVDOH ¿QDQFLDO DVVHWV asset through the use of an impairment allowance account.

The amount of the impairment loss is measured as the difference between the asset's acquisition cost (less any principal repayment and amortisation) and current fair value, OHVV DQ\ LPSDLUPHQW ORVV RQ WKDW ¿QDQFLDO DVVHW SUHYLRXVO\ UHFRJQLVHG LQ SUR¿W RU ORVV DQG LV UHFODVVL¿HG IURP µRWKHU FRPSUHKHQVLYH LQFRPH¶ WR µSUR¿W RU ORVV¶,I LQ D VXEVHTXHQW period, the fair value of an investment in a debt instrument increases, and the increase can be related objectively to an event occurring after the impairment loss was recognised, then VXFK LPSDLUPHQW ORVV LV UHYHUVHG WKURXJK SUR¿W RU ORVV,PSDLUPHQW ORVV RI DQ LQYHVWPHQW LQ DQ HTXLW\ LQVWUXPHQW UHFRJQLVHG LQ SUR¿W RU ORVV VKDOO QRW EH UHYHUVHG WKURXJK SUR¿W RU loss. Impairment loss is recognised and reversed by adjusting the carrying amount of the

(10) 'HUHFRJQLWLRQ RI ¿QDQFLDO DVVHWV

7KH &RPSDQ\ GHUHFRJQLVHV D ¿QDQFLDO DVVHW ZKHQ RQH RI WKH IROORZLQJ FRQGLWLRQV LV PHW

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% 7KH FRQWUDFWXDO ULJKWV WR UHFHLYH FDVK ÀRZV RI WKH ¿QDQFLDO DVVHW KDYH EHHQ WUDQVIHUUHG DQG WKH &RPSDQ\ KDV WUDQVIHUUHG VXEVWDQWLDOO\ DOO ULVNV DQG UHZDUGV RI RZQHUVKLS RI WKH ¿QDQFLDO asset.
KRZHYHU WKH &RPSDQ\ KDV QRW UHWDLQHG FRQWURO RI WKH ¿QDQFLDO DVVHW
(11) Inventories

C. The contractual rights to receive cash flows of the financial asset have been transferred;

Inventories including"land held for construction", "construction in progress", and "buildings and land held for sale" are stated at cost and evaluated at the lower of cost or net realisable value at the end of period. The individual item approach is used in the comparison of cost and net realisable value. The calculation of net realisable value is based on the estimated selling price in the normal course of business, net of estimated costs of completion and related adjusted selling expenses. The interest costs related to construction in progress are capitalised during the construction.

(12) Construction contracts

In accordance with IFRIC 15, 'Agreements for the Construction of Real Estate', if the buyer is able to specify the major structural elements of the design of the real estate before construction begins and/or specify major structural changes once construction is in progress, the construction contract meets the definition of construction contract and criteria in IAS 11, 'Construction Contracts'. In accordance with IAS 18, 'Revenue', the Company recognises sales revenue for contracts of pre-sell of buildings that do not meet the definition of construction contract. For WUDQVDFWLRQV WKDW PHHW WKH GH¿QLWLRQ RI FRQVWUXFWLRQ FRQWUDFW WKH &RPSDQ\ UHFRJQLVHV FRQWUDFW revenue in accordance with IAS 11.

(13) Investments accounted for using equity method / subsidiaries, associates

A. Subsidiaries refer to the entities (including special purpose entities) that the Company has FRQWURO RYHU WKHLU ¿QDQFLDO DQG RSHUDWLQJ SROLFLHV DQG RZQ PRUH WKDQ RI YRWLQJ VKDUHV directly or indirectly. The Company evaluates investments in subsidiaries accounted under HTXLW\ PHWKRG LQ WKHVH SDUHQW FRPSDQ\ RQO\ ¿QDQFLDO VWDWHPHQWV
% 8QUHDOLVHG SUR¿W ORVV? DULVLQJ IURP WKH WUDQVDFWLRQV EHWZHHQ WKH &RPSDQ\ DQG VXEVLGLDULHV have been offset. The accounting policies of the subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Company.
& 7KH &RPSDQ\¶V VKDUH RI LWV VXEVLGLDULHV¶ SRVWDFTXLVLWLRQ SUR¿WV RU ORVVHV LV UHFRJQLVHG LQ SUR¿W RU ORVV DQG LWV VKDUH RI SRVWDFTXLVLWLRQ PRYHPHQWV LQ RWKHU FRPSUHKHQVLYH LQFRPH is recognised in other comprehensive income. When the Company's share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company continues to recognise losses proportionate to its ownership.
D. If changes in shareholdings in subsidiaries do not result to a loss on control (transaction with non-controlling interest), transactions shall be considered as equity transactions, which are transactions between owners. Difference of adjustment of non-controlling interest and fair value of consideration paid or received is recognised in equity.
E. When the Company loses its control in a subsidiary, the Company revalues the remaining investment in the prior subsidiary at fair value, and recognises the difference between fair value and book value in the profit or loss for the period. The accounting treatment on the previously recognised amount related to the subsidiary in other comprehensive income is the same as the basis if the Company directly disposes related assets or liabilities, which means if the Company has recognised gain or loss in other comprehensive income, the Company VKRXOG UHFODVVLI\ WKH JDLQ RU ORVV RQ GLVSRVDO RI UHODWHG DVVHWV RU OLDELOLWLHV WR SUR¿W RU ORVV DQG ZKHQ WKH &RPSDQ\ ORVHV FRQWURO LQ WKH VXEVLGLDU\ WKH JDLQ RU ORVV VKRXOG EH UHFODVVL¿HG IURP HTXLW\ WR SUR¿W RU ORVV
) \$VVRFLDWHV DUH DOO HQWLWLHV RYHU ZKLFK WKH &RPSDQ\ KDV VLJQL¿FDQW LQÀXHQFH EXW QRW FRQWURO In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognised at cost.
G. The Company's share of its associates' post-acquisition profits or losses is recognised in SUR¿W RU ORVV DQG LWV VKDUH RI SRVWDFTXLVLWLRQ PRYHPHQWV LQ RWKHU FRPSUHKHQVLYH LQFRPH is recognised in other comprehensive income. When the Company's share of losses in an associate equals or exceeds its interest in the associate, the Company does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on

behalf of the associate.

comprehensive income of the associate and such changes do not affect the Company's ownership percentage of the associate, the Company recognises the Company's share of

I. Unrealised gains on transactions between the Company and its associates are eliminated to the extent of the Company's interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the

J. In the case that an associate issues new shares and the Company does not subscribe or acquire new shares proportionately, which results in a change in the Company's ownership SHUFHQWDJH RI WKH DVVRFLDWH EXW PDLQWDLQV VLJQL¿FDQW LQÀXHQFH RQ WKH DVVRFLDWH WKHQ µFDSLWDO surplus' and 'investments accounted for under the equity method' shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Company's ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognised in other comprehensive income in relation to the associate DUH UHFODVVL¿HG WR SUR¿W RU ORVV SURSRUWLRQDWHO\ RQ WKH VDPH EDVLV DV ZRXOG EH UHTXLUHG LI WKH

. 8SRQ ORVV RI VLJQL¿FDQW LQÀXHQFH RYHU DQ DVVRFLDWH WKH &RPSDQ\ UHPHDVXUHV DQ\ LQYHVWPHQW retained in the former associate at its fair value. Any difference between fair value and

H. When changes in an associate's equity are not recognised in profit or loss or other change in equity of the associate in 'capital surplus' in proportion to its ownership.
policies adopted by the Company.
relevant assets or liabilities were disposed of.
FDUU\LQJ DPRXQW LV UHFRJQLVHG LQ SUR¿W RU ORVV
the aforementioned approach.
WUDQVIHUUHG WR SUR¿W RU ORVV SURSRUWLRQDWHO\
N. Pursuant to the "Regulations Governing the Preparation of Financial Reports by Securities SDUHQW LQ WKH ¿QDQFLDO VWDWHPHQWV SUHSDUHG ZLWK EDVLV IRU FRQVROLGDWLRQ
(14) Property, plant and equipment
the construction period are capitalised.

L. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be UHTXLUHG LI WKH UHOHYDQW DVVHWV RU OLDELOLWLHV ZHUH GLVSRVHG RI ,I LW UHWDLQV VLJQL¿FDQW LQÀXHQFH over this associate, the amounts previously recognised in other comprehensive income in UHODWLRQ WR WKH DVVRFLDWH DUH UHFODVVL¿HG WR SUR¿W RU ORVV SURSRUWLRQDWHO\ LQ DFFRUGDQFH ZLWK

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

Issuers," profit (loss) of the current period and other comprehensive income in the parent company only financial statements shall equal to the amount attributable to owners of the SDUHQW LQ WKH ¿QDQFLDO VWDWHPHQWV SUHSDUHG ZLWK EDVLV IRU FRQVROLGDWLRQ 2ZQHUV¶ HTXLW\ LQ WKH SDUHQW FRPSDQ\ RQO\ ¿QDQFLDO VWDWHPHQWV VKDOO HTXDO WR HTXLW\ DWWULEXWDEOH WR RZQHUV RI WKH

A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during

B. Subsequent costs are included in the asset's carrying amount or recognised as a separate DVVHW DV DSSURSULDWH RQO\ ZKHQ LW LV SUREDEOH WKDW IXWXUH HFRQRPLF EHQH¿WV DVVRFLDWHG ZLWK WKH LWHP ZLOO ÀRZ WR WKH &RPSDQ\ DQG WKH FRVW RI WKH LWHP FDQ EH PHDVXUHG UHOLDEO\7KH carrying amount of the replaced part is derecognised. All other repairs and maintenance are FKDUJHG WR SUR¿W RU ORVV GXULQJ WKH ¿QDQFLDO SHULRG LQ ZKLFK WKH\ DUH LQFXUUHG B.Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.
C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful OLYHV (DFK SDUW RI DQ LWHP RI SURSHUW\ SODQW DQG HTXLSPHQW ZLWK D FRVW WKDW LV VLJQL¿FDQW LQ relation to the total cost of the item must be depreciated separately. C.Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.
D. The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each balance sheet date. If expectations for the assets' residual values and useful lives differ from previous estimates or the patterns of consumption of the assets' future HFRQRPLF EHQH¿WV HPERGLHG LQ WKH DVVHWV KDYH FKDQJHG VLJQL¿FDQWO\ DQ\ FKDQJH LV DFFRXQWHG for as a change in estimate under IAS 8, 'Accounting Policies, Changes in Accounting Estimates and Errors', from the date of the change. The estimated useful lives of property, plant and equipment are as follows: D.The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each balance sheet date. If expectations for the assets' residual values and useful lives differ from previous estimates or the patterns of consumption of the assets' future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, 'Accounting Policies, Changes in Accounting Estimates and Errors', from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

~19~ Intangible assets consist of service concession, which are stated at acquisition cost and amortised on a straight line basis over its useful life of 44 years.

Buildings	50 ɴ 60 years
Computer and communication equipment	5 years
Transportation equipment	5 years
Office equipment	5 ɴ 10 years
Leasehold improvements	5 years

Other equipment 5 years (15) Operating leases (lessor/ lessee)

(15) Operating leases (lessor/ lessee) Rental income from operating leases (excluding any benefits provided to lessee) or payments for operating leases (excluding any benefits received from lessor) are recognised as profit or loss for 5HQWDO LQFRPH IURP RSHUDWLQJ OHDVHV H[FOXGLQJ DQ\ EHQH¿WV SURYLGHG WR OHVVHH? RU SD\PHQWV IRU RSHUDWLQJ OHDVHV H[FOXGLQJ DQ\ EHQH¿WV UHFHLYHG IURP OHVVRU? DUH UHFRJQLVHG DV SUR¿W RU ORVV IRU the period over the leasing period on a straight line basis.

the period over the leasing period on a straight line basis. (16) Investment property

(16) Investment property An investment property is stated initially at its cost and measured subsequently using the cost An investment property is stated initially at its cost and measured subsequently using the cost model. Except for land, investment property is depreciated on a straight-line basis over its estimated useful life of 44 ~ 60 years.

(17) Intangible assets

(18) ,PSDLUPHQW RI QRQ¿QDQFLDO DVVHWV

The Company assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell or value in use. Except for goodwill, when the circumstances or reasons for recognising impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised.

(19) Borrowings

A. Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings

are subsequently stated at amortised cost; any difference between the proceeds (net of WUDQVDFWLRQ FRVWV? DQG WKH UHGHPSWLRQ YDOXH LV UHFRJQLVHG LQ SUR¿W RU ORVV RYHU WKH SHULRG RI

B. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawdedown, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.

(20) Notes and accounts payable

A financial liability is derecognised when the obligation under the liability specified in the

(21) 'HUHFRJQLWLRQ RI ¿QDQFLDO OLDELOLWLHV contract is discharged or cancelled or expires.
(22) 2IIVHWWLQJ ¿QDQFLDO LQVWUXPHQWV

(23) Financial liabilities

Bonds payable

Ordinary corporate bonds issued by the Company are initially recognised at fair value, net of transaction costs incurred. Ordinary corporate bonds are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is accounted for as the premium or discount on bonds payable and presented as an addition to or GHGXFWLRQ IURP ERQGV SD\DEOH ZKLFK LV DPRUWLVHG LQ SUR¿W RU ORVV DV DQ DGMXVWPHQW WR WKH µ¿QDQFH costs' over the period of bond circulation using the effective interest method. (24) Provisions

Provisions are recognised when the Company has a present legal or constructive obligation as a UHVXOW RI SDVW HYHQWV DQG LW LV SUREDEOH WKDW DQ RXWÀRZ RI HFRQRPLF UHVRXUFHV ZLOO EH UHTXLUHG WR settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date, which is discounted using a pre-tax discount rate that reflects the FXUUHQW PDUNHW DVVHVVPHQWV RI WKH WLPH YDOXH RI PRQH\ DQG WKH ULVNV VSHFL¿F WR WKH REOLJDWLRQ When discounting is used, the increase in the provision due to passage of time is recognised as interest expense. Provisions are not recognised for future operating losses. (25) (PSOR\HH EHQH¿WV

\$ 6KRUWWHUP HPSOR\HH EHQH¿WV

VI
Financial Information

B. Pensions

D? 'H¿QHG FRQWULEXWLRQ SODQ

)RU GH¿QHG FRQWULEXWLRQ SODQ WKH FRQWULEXWLRQV DUH UHFRJQLVHG DV SHQVLRQ H[SHQVHV ZKHQ they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments.

E?'H¿QHG EHQH¿W SODQ
L 1HW REOLJDWLRQ XQGHU D GH¿QHG EHQH¿W SODQ LV GH¿QHG DV WKH SUHVHQW YDOXH RI DQ DPRXQW RI SHQVLRQ EHQH¿WV WKDW HPSOR\HHV ZLOO UHFHLYH RQ UHWLUHPHQW IRU WKHLU VHUYLFHV ZLWK the Company in current period or prior periods. The liability recognised in the balance VKHHW LQ UHVSHFW RI WKH GH¿QHG EHQH¿W SHQVLRQ SODQ LV WKH SUHVHQW YDOXH RI WKH GH¿QHG benefit obligation at the balance sheet date less the fair value of plan assets. The GH¿QHG EHQH¿W QHW REOLJDWLRQ LV FDOFXODWHG DQQXDOO\ E\ LQGHSHQGHQW DFWXDULHV XVLQJ the projected unit credit method. The rate used to discount is determined by using interest rates of high-quality corporate bonds that are denominated in the currency in ZKLFK WKH EHQH¿WV ZLOO EH SDLG DQG WKDW KDYH WHUPV WR PDWXULW\ DSSUR[LPDWLQJ WR WKH terms of the related pension liability; when there is no deep market in high-quality corporate bonds, the Company uses interest rates of government bonds (at the balance sheet date) instead.
ii. Remeasurement arising on defined benefit plans are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings.
LLL 3DVWV VHUYLFH FRVWV DUH UHFRJQLVHG LPPHGLDWHO\ LQ SUR¿W RU ORVV
C. Employees' compensation and directors' and supervisors' remuneration

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

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

(26) Employee share-based payment

(27) Income tax

A. The tax expense for the period comprises current and deferred tax. Tax is recognised in SUR¿W RU ORVV H[FHSW WR WKH H[WHQW WKDW LW UHODWHV WR LWHPV UHFRJQLVHG LQ RWKHU FRPSUHKHQVLYH income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.

B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional 10% tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain

C. Deferred income tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the parent company only balance sheet. However, the deferred income tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting QRU WD[DEOH SUR¿W RU ORVV 'HIHUUHG LQFRPH WD[ LV SURYLGHG RQ WHPSRUDU\ GLIIHUHQFHV DULVLQJ on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the

the earnings.
deferred income tax liability is settled.
reassessed.
intend to settle on a net basis or realise the asset and settle the liability simultaneously.
against which the unused tax credits can be utilised.

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

F. A deferred tax asset shall be recognised for the carryforward of unused tax credits resulting from acquisitions of equipment or technology, research and development expenditures and HTXLW\ LQYHVWPHQWV WR WKH H[WHQW WKDW LW LV SRVVLEOH WKDW IXWXUH WD[DEOH SUR¿W ZLOO EH DYDLODEOH

(28) Share capital

2UGLQDU\ VKDUHV DUH FODVVL¿HG DV HTXLW\ ,QFUHPHQWDO FRVWV GLUHFWO\ DWWULEXWDEOH WR WKH LVVXH RI QHZ shares or stock options are shown in equity as a deduction, net of tax, from the proceeds. (29) Dividends

on the effective date of new shares issuance.

(30) Revenue recognition

A. Sales of goods

The Company handles entrusted construction, sale and lease of public housings and business buildings. Revenue arising from the sales of goods is recognised when the Company has delivered the goods to the customer, the amount of sales revenue can be measured reliably DQG LW LV SUREDEOH WKDW WKH IXWXUH HFRQRPLF EHQH¿WV DVVRFLDWHG ZLWK WKH WUDQVDFWLRQ ZLOO ÀRZ WR WKH HQWLW\ 7KH GHOLYHU\ RI JRRGV LV FRPSOHWHG ZKHQ WKH VLJQL¿FDQW ULVNV DQG UHZDUGV RI ownership have been transferred to the customer, the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold, and the customer has accepted the goods based on the sales contract or WKHUH LV REMHFWLYH HYLGHQFH VKRZLQJ WKDW DOO DFFHSWDQFH SURYLVLRQV KDYH EHHQ VDWLV¿HG )RU pre-selling of housing that the Company has entrusted to construction companies to build, as stated in Note 4(12), sales revenue is recognised in accordance with IAS 18, 'Revenue'. Thus, WKH &RPSDQ\ KDV FDUULHG RYHU FRVWV DQG UHFRJQLVHG SUR¿W RU ORVV ZKHQ LW FRPSOHWHV WUDQVIHU of title and settlement of housing. Only when housing was actually settled (or only when ownership was transferred) before balance sheet date, and related risk return was transferred would sales revenue be recognised.
B. Service concession revenue

Please refer to Note 4(31) for service concession contracts provided by the Company.

(31) Service concession arrangements
A. The Company contracted with National Taiwan University (grantor) to provide construction of the government's infrastructure assets for public services and operate those assets for Chang Hsing St. Campus for 44 years and 6 months, and for Shui Yuan Campus for 44 years and 4 months after construction is completed. When the term of operating period expires, the underlying infrastructure assets will be transferred to National Taiwan University without consideration. The Company allocates the fair value of the consideration received or receivable in respect of the service concession arrangement between construction services and operating services provided based on their relative fair values, and recognises such allocated amounts as revenues in accordance with IAS 11, 'Construction Contracts', and IAS 18, 'Revenue', respectively.
B. Costs incurred on provision of construction services or upgrading services under a service concession arrangement are accounted for in accordance with IAS 11, 'Construction Contracts'.
C. The consideration received or receivable from the grantor in respect of the service concession DUUDQJHPHQW LV UHFRJQLVHG DW LWV IDLU YDOXH 6XFK FRQVLGHUDWLRQV DUH UHFRJQLVHG DV D ¿QDQFLDO asset or an intangible asset based on how the considerations from the grantor to the operator DUH PDGH DV VSHFL¿HG LQ WKH DUUDQJHPHQW

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The preparation of these parent company only financial statements requires management to make critical judgements in applying the Company's accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates are continually evaluated and adjusted EDVHG RQ KLVWRULFDO H[SHULHQFH DQG RWKHU IDFWRUV 6XFK DVVXPSWLRQV DQG HVWLPDWHV KDYH D VLJQL¿FDQW

risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next ¿QDQFLDO \HDU 7KH DERYH LQIRUPDWLRQ LV DGGUHVVHG EHORZ

7KH &RPSDQ\ IROORZV WKH JXLGDQFH RI ,\$6 WR GHWHUPLQH ZKHWKHU D ¿QDQFLDO DVVHW²HTXLW\ LQYHVWPHQW LV LPSDLUHG7KLV GHWHUPLQDWLRQ UHTXLUHV VLJQL¿FDQW MXGJHPHQW,Q PDNLQJ WKLV judgement, the Company evaluates, among other factors, the duration and extent to which the fair value of an equity investment is less than its cost and the financial health of and short-term business outlook for the investee, including factors such as industry and sector

(1) Critical judgements in applying the Company's accounting policies
A. Financial assets—impairment of equity investments SHUIRUPDQFH FKDQJHV LQ WHFKQRORJ\ DQG RSHUDWLRQDO DQG ¿QDQFLQJ FDVK ÀRZ LQ SUR¿W RU ORVV
B. Investment property
(2) Critical accounting estimates and assumptions

If the decline of the fair value of an individual equity investment below cost was considered significant or prolonged, the Company would suffer an additional loss in its financial statements, being the transfer of the accumulated fair value adjustments recognised in other FRPSUHKHQVLYH LQFRPH RQ WKH LPSDLUHG DYDLODEOHIRUVDOH ¿QDQFLDO DVVHWV WR SUR¿W RU ORVV RU EHLQJ WKH UHFRJQLWLRQ RI WKH LPSDLUPHQW ORVV RQ WKH LPSDLUHG ¿QDQFLDO DVVHWV PHDVXUHG DW FRVW

The Company uses a portion of the property for its own use and another portion to earn rentals or for capital appreciation. When these portions cannot be sold separately and cannot be leased out separately under a finance lease, the property is classified as investment SURSHUW\ RQO\ LI WKH RZQXVH SRUWLRQ DFFRXQWV IRU DQ LQVLJQL¿FDQW SRUWLRQ RI WKH SURSHUW\

Evaluation of inventories As inventories are stated at the lower of cost and net realisable value, the Company must determine the net realisable value of inventories on balance sheet date using judgements and estimates. If the Company assessed that the net realisable value of inventories on balance sheet date was lower than the cost, the Company would write down the cost of inventories to the net realisable value. As of December 31, 2015, the carrying amount of inventories was \$21,312,926.

**'(7\$,/62)6,*1,),&\$17\$&&28176** 6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents (1) Cash and cash equivalents

disperse credit risk, so it expects that the probability of counterparty default is remote. B. The repurchase bonds held by the Company has high liquidity, so they were classified as cash \$ 7KH &RPSDQ\ WUDQVDFWV ZLWK D YDULHW\ RI ¿QDQFLDO LQVWLWXWLRQV DOO ZLWK KLJK FUHGLW TXDOLW\ WR disperse credit risk, so it expects that the probability of counterparty default is remote.

Cash:

	December 31, 2015 December 31, 2014

Cash on hand and revolving funds	\$ 2,548 \$	3,397
Checking accounts and demand deposits	1,954,342	1,165,815
	1,956,890	1,169,212
Cash equivalents:
Repurchase bonds	200,000	-
	\$ 2,156,890 \$	1,169,212

Cash equivalents:

A. The Company recognized net gain of \$445 and \$447 for the years ended December 31, 2015 and 2014, respectively. A. The Company recognized net gain of \$445 and \$447 for the years ended December 31, 2015 and 2014, respectively. gain of for the December 31,
B.Details of the Company's financial assets at fair value through profit or loss pledged to others as collateral are provided in Note 8. % 'HWDLOV RI WKH &RPSDQ\¶V ¿QDQFLDO DVVHWV DW IDLU YDOXH WKURXJK SUR¿W RU ORVV SOHGJHG WR RWKHUV as collateral are provided in Note 8. B.Details of the Company's financial assets at fair value through profit or loss pledged to others as provided in
(3) Notes receivable, net (3) Notes receivable, net

Checking accounts and demand deposits Checking accounts and demand deposits		1,954,342
		1,956,890 1,956,890		1,165,815 1,169,212 1,169,212
Cash equivalents: Cash equivalents:
Repurchase bonds	\$ \$	200,000 200,000 2,156,890 \$ 2,156,890 \$		- - 1,169,212 1,169,212
A. The Company transacts with a variety of financial institutions all with high credit quality to of financial		all with
disperse credit risk, so it expects that the probability of counterparty default is remote. expects that probability of			is remote.
B. The repurchase bonds held by the Company has high liquidity, so they were classified as cash B. repurchase bonds Company has % 7KH UHSXUFKDVH ERQGV KHOG E\ WKH &RPSDQ\ KDV KLJK	liquidity, so OLTXLGLW\	VR WKH\	ZHUH FODVVL¿HG	were classified as cash DV FDVK
equivalents. equivalents.
C. Details of the Company's cash and cash equivalents pledged to others as collateral are provided C. C. Details of the Company's cash and cash equivalents pledged to others as collateral are			as collateral
in Note 8. in Note 8. provided in Note 8.
)LQDQFLDO DVVHWV DW IDLU YDOXH WKURXJK SUR¿W RU ORVV (2) Financial assets at fair value through profit or loss
Items Items		December 31, 2015 December 31, 2014 December 31, 2015		31, 2014
Non-current items: Financial assets held for trading Financial assets held for trading
Benficiary certificates	\$	76,000 \$ 76,000		76,000 76,000
Financial assets held for trading Financial assets held for trading
valuation adjustments adjustments		1,992		1,547 1,547
	\$	77,992 \$		77,547
A. The Company recognized net gain of \$445 and \$447 for the years ended December 31, 2015 A. The Company recognized net gain of \$445 and \$447 for the years ended December 31, 2015 gain of	for the		December 31,
and 2014, respectively. and 2014, respectively.
% 'HWDLOV RI WKH &RPSDQ\¶V ¿QDQFLDO DVVHWV DW IDLU YDOXH B.Details of the Company's financial assets at fair value through profit or loss pledged to others as B.Details of the Company's financial assets at fair value through profit or loss pledged to others as	WKURXJK	SUR¿W RU	ORVV SOHGJHG	WR RWKHUV
as collateral are provided in Note 8. collateral are provided in Note 8. provided in Notes receivable, net
(3) Notes receivable, net
		December 31, 2015 December 31, 2014
Notes receivable receivable	\$	111,932 \$		141,791
Less: Allowance for doubtful accounts	( ( \$ \$	344) ( 344)( 111,588 \$ 111,588 \$		540) 540) 141,251 141,251


A. The Company's notes receivable that were neither past due nor impaired were fully performing A. The receivable that were A. The Company's notes receivable that were neither past due nor impaired were fully in line with the credit standards prescribed based on counterparties' industrial characteristics, performing in line with the credit standards prescribed based on counterparties' industrial in line with the credit standards prescribed based on counterparties' industrial characteristics,	due nor

		December 31, 2015 December 31, 2014
Notes receivable receivable	\$	111,932 \$	141,791
Less: Allowance for doubtful accounts	( (	344) ( 344)(	540) 540)
	\$ \$	111,588 \$ 111,588 \$	141,251 141,251

A. The Company's notes receivable that were neither past due nor impaired were fully performing in line with the credit standards prescribed based on counterparties' industrial characteristics, scale of business and profitability. A. The receivable that were due nor A. The Company's notes receivable that were neither past due nor impaired were fully performing in line with the credit standards prescribed based on counterparties' industrial FKDUDFWHULVWLFV VFDOH RI EXVLQHVV DQG SUR¿WDELOLW\ B. Movement analysis of financial assets the were impaired (allowance for doubtful accounts of
% 0RYHPHQW DQDO\VLV RI ¿QDQFLDO DVVHWV WKH ZHUH LPSDLUHG DOORZDQFH IRU GRXEWIXO DFFRXQWV RI notes receivable) is as follows: notes receivable) is as follows: B. Movement analysis of financial assets the were impaired (allowance for doubtful accounts of notes receivable) is as follows:

C. The Company does not hold any collateral as security. C. The Company does not hold any collateral as security. C. The Company does not hold any collateral as security.

)5* Accounts receivable, net (4) Accounts receivable, net )5* Accounts receivable, net

Years ended December 31 Years ended December 31
2015	2014 2014
\$ 540	\$ 3,703 \$ 3,703
-	( 1,078) ( 1,078)
(	( 2,085) ( 2,085)
\$ 344	\$ 540 \$ 540
	2015 \$ 540 - 196) ( 196) \$ 344


Accounts receivable	\$	830,527 \$	4,553,785
Accounts receivable	\$	830,527 \$	4,553,785
Less: Allowance for doubtful accounts	(	3,743) (	6,897)
Less: Allowance for doubtful accounts	(	3,743) (	6,897)
	\$ \$	826,784 \$ 826,784 \$	4,546,888 4,546,888

equivalents. of financial all with expects that probability of is remote.B.repurchase bonds Company has liquidity, so were classified as cashC.as collateral in Note 8.% 7KH UHSXUFKDVH ERQGV KHOG E\ WKH &RPSDQ\ KDV KLJK OLTXLGLW\ VR WKH\ ZHUH FODVVL¿HG DV FDVK equivalents.
C. Details of the Company's cash and cash equivalents pledged to others as collateral are provided in Note 8. C. Details of the Company's cash and cash equivalents pledged to others as collateral are provided in Note 8.
(2) Financial assets at fair value through profit or loss (2) )LQDQFLDO DVVHWV DW IDLU YDOXH WKURXJK SUR¿W RU ORVV

A. The Company's accounts receivable that were neither past due nor impaired were fully performing in line with the credit standards prescribed based on counterparties' industrial FKDUDFWHULVWLFV VFDOH RI EXVLQHVV DQG SUR¿WDELOLW\ \$FFRXQWV UHFHLYDEOH DUH FODVVL¿HG LQWR A.The Company's accounts receivable that were neither past due nor impaired were fully performing in line with the credit standards prescribed based on counterparties' industrial characteristics, scale

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

categories: of business and profitability. Accounts receivable are classified into 2 categories:

(a) Sale of real estate: collection of customers' loans from banks. (b) Receivables from travel department: mainly from credit card payments. (a) Sale of real estate: collection of customers' loans from banks. (b) Receivables from travel department: mainly from credit card payments.

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

		December 31, 2015 December 31, 2014
Up to 60 days	\$ - \$	-
61 to 120 days	-	-
121 to 180 days	63	15
Over 180 days	1,085	1,066
	\$ 1,148 \$	1,081

& 0RYHPHQW DQDO\VLV RI ¿QDQFLDO DVVHWV WKDW ZHUH LPSDLUHG DOORZDQFH IRU GRXEWIXO DFFRXQWV RI C.Movement analysis of financial assets that were impaired (allowance for doubtful accounts of

~27~ The Company analyses based on any changes to credit quality in accounts receivable of individual customers from the initial grant date until the financial period-end, historical H[SHULHQFH DQG FXUUHQW ¿QDQFLDO FRQGLWLRQ WR HVWLPDWH WKH DPRXQW WKDW PD\ QRW EH UHFRYHUHG

The above ageing analysis was based on past due date. The above ageing analysis was based on past due date. C.Movement analysis of financial assets that were impaired (allowance for doubtful accounts of

accounts receivable) is as follows: accounts receivable) is as follows: accounts receivable) is as follows:

The Company analyses based on any changes to credit quality in accounts receivable of individual customers from the initial grant date until the financial period-end, historical experience and current financial condition, to estimate the amount that may not be recovered. D. The Company does not hold any collateral as security. D. The Company does not hold any collateral as security. The Company analyses based on any changes to credit quality in accounts receivable of individual customers from the initial grant date until the financial period-end, historical experience and current financial condition, to estimate the amount that may not be recovered. D. The Company does not hold any collateral as security.

(5) Inventories (5) Inventories (5) Inventories

		Years ended December 31, Years ended December 31,
		2015 2015	2014 2014
At January 1 At January 1	\$ \$ (	6,897 \$ 6,897 \$ 3,154) (	6,906 6,906 9)
Write-offs during the year Write-offs during the year	( \$	3,154) ( 3,743 \$	9) 6,897
At December 31 At December 31	\$	3,743 \$	6,897

	December 31, 2015
		December 31, 2015 Allowance for
	Cost	Allowance for valuation loss	Book value
Land held for construction site	Cost \$ 11,833,606 (\$	valuation loss 65,372) \$	Book value 11,768,234
Land held for construction site Construction in progress	\$ 11,833,606 (\$ 2,457,025	65,372) \$ -	11,768,234 2,457,025
Construction in progress Buildings and land held for sale	2,457,025 5,963,865 (	- 49,432)	2,457,025 5,914,433
Buildings and land held for sale Prepayment for land	5,963,865 ( 223,700	49,432) -	5,914,433 223,700
Prepayment for land Prepayment for buildings and	223,700	-	223,700
Prepayment for buildings and land land	947,991	-	947,991
Merchandise	947,991 1,543	- -	947,991 1,543
Merchandise	1,543 \$ 21,427,730 (\$ \$ 21,427,730 (\$	- 114,804) \$ 114,804) \$	1,543 21,312,926 21,312,926

Prepayment for buildings and Prepayment for buildings and

VI

	December 31, 2014
		Allowance for
	Cost	valuation loss	Book value
Land held for construction site	\$ 10,347,996 (\$	65,372) \$	10,282,624
Construction in progress	2,407,057	-	2,407,057
Buildings and land held for sale	4,428,753 (	51,446)	4,377,307
Prepayment for land	1,770,640	-	1,770,640
Prepayment for buildings and
land	510,880	-	510,880
Merchandise	1,368	-	1,368
	\$ 19,466,694 (\$	116,818) \$	19,349,876

~28~ A. The cost of inventories recognised as expense for the years ended December 31, 2015 and 2014 was \$5,631,118 and \$7,316,468, respectively, including the amount of \$2,014 and \$21,758, respectively that the Company wrote down from cost to net realisable value accounted for as cost of goods sold. A.The cost of inventories recognised as expense for the years ended December 31, 2015 and 2014 was \$5,631,118 and \$7,316,468, respectively, including the amount of \$2,014 and \$21,758, respectively that the Company wrote down from cost to net realisable value accounted for as cost of goods sold. A.The cost of inventories recognised as expense for the years ended December 31, 2015 and 2014 was \$5,631,118 and \$7,316,468, respectively, including the amount of \$2,014 and \$21,758, respectively that the Company wrote down from cost to net realisable value accounted for as cost of goods sold.

B. Details of the Company's inventories pledged to others as collateral are provided in Note 8. B. Details of the Company's inventories pledged to others as collateral are provided in Note 8. B. Details of the Company's inventories pledged to others as collateral are provided in Note 8.

C. The interest capitalized as cost of inventory is as follows: C.The interest capitalized as cost of inventory is as follows: C.The interest capitalized as cost of inventory is as follows:

D. Details of significant inventories: ' 'HWDLOV RI VLJQL¿FDQW LQYHQWRULHV D. Details of significant inventories:

(a)Buildings and land in progress (a) Buildings and land in progress (a)Buildings and land in progress

		Years ended December 31, Years ended December 31,
		2015 2015	2014 2014
Interest paid before capitalization Interest paid before capitalization	\$ \$	424,018 424,018	\$ \$	456,925 456,925
Interest capitalized Interest capitalized	\$ \$	140,305 140,305	\$ \$	180,463 180,463
Annual interest rate used for capitalization Annual interest rate used for capitalization		2.51%-3.20% 2.51%-3.20%		2.52%-3.25% 2.52%-3.25%

Taipei branch	December 31, 2015	December 31, 2014
Taipei branch	December 31, 2015	December 31, 2014
Prince Yun Ding (XinZhuang Fuduxin) Prince Yun Ding (XinZhuang Fuduxin)	\$ 1,736,845 \$ \$ 1,736,845 \$	1,501,814 1,501,814
Ling Ko Dist. Li Shing Section No. 1209, etc.	1,376,328	1,322,911
Ling Ko Dist. Li Shing Section No. 1209, etc.	1,376,328	1,322,911
Prince Fu III (Taoyuan Qing Sun Section No. 446)	1,131,432	971,180
Prince Fu III (Taoyuan Qing Sun Section No. 446)	1,131,432	971,180
Prince W (New Taipei City Shing Jheng Section No. 883, etc.)	962,064	945,978
Prince W (New Taipei City Shing Jheng Section No. 883, etc.)	962,064	945,978
Bali Dist Chung Chang Section No. 2222 and 211-1, etc.	685,665	-
Bali Dist Chung Chang Section No. 2222 and 211-1, etc.	685,665	-
Jhong Li City Shuang Ling Section No. 1449, etc.	328,796	297,100
Jhong Li City Shuang Ling Section No. 1449, etc.	328,796	297,100
Prince Hua Wei (Shilin Dist. Zhishan Section No. 602, etc.)	106,680	48,855
Prince Hua Wei (Shilin Dist. Zhishan Section No. 602, etc.)	106,680	48,855
Prince Fu II (Taoyuan Qing Xi Section No. 462)	-	1,230,016
Prince Fu II (Taoyuan Qing Xi Section No. 462)	-	1,230,016
Others	-	30
Others	-	30
	\$ 6,327,810 \$ \$ 6,327,810 \$	6,317,884 6,317,884

Jin Shuei Dist. Wu Show Section No. 1037, No. 1038,

Tainan branch

Taichung branch	December 31, 2015	December 31, 2014
Ping Hsin Section No. 694, etc.	\$ 862,840 \$	858,448
Prince Yu Ding (Hui Li Section No. 195)	707,080	620,697
The Cloud Century (Kao An Section No. 12-16, etc.)	698,401	294,659
Chaotun Section No. 755, etc.	250,571	249,147
Jin Shuei Dist. Wu Show Section No. 1037, No. 1038, No. 1040, etc.	195,947	195,758
Hsinfuliao Section No. 1096, No. 1098, No. 1108, etc.	159,160	-
Chin Fon Gin (Tu Ku Section No. 8-2, etc.)	-	575,092
Hai Yan (Tai Huo Section No. 29)	-	489,564
The Cloud Century A (Kao An Section No. 12-12)	-	403,567
Others	21,900	7,909
	\$ 2,895,899 \$	3,694,841
Tainan branch
Jin Hua Section No. 1361	\$ 688,190 \$	687,232
Prince Feng Yun (Hsin Ying Section No. 841-9)	564,433	485,101
Jum Fon Huei (Yu Ming Section No. 681-8)	266,825	183,812
Shan Chain Section No. 939, etc.	148,499	-
Chin An Section No. 296, No. 297, etc.	95,703	-
Bei An Lot No. 56-10, etc.	-	62,073
Flower Bo Five (Hou Guan Section No. 34, No. 34-1, etc.)	-	51,010
Others	3,524	7,364
	\$ 1,767,174 \$	1,476,592

Kaohsiung branch
Ren Wu New Hougang West Section No .42, etc. (Prince Cloud B) Ren Wu New Hougang West Section No. 52, etc.	\$ 378,865 \$	3,736
(Prince Cloud D) Ren Wu New Hougang West Section No. 88 experimental house	416,940	-
Nanzi Subsection No. 158	73,050 28,177	- -
	\$ 897,032 \$	3,736

Kaohsiung branch

Total buildings and land in progress \$ 11,887,915 \$ 11,493,053

Taipei branch	December 31, 2015	December 31, 2014
Zhong Li Pu Ren Lot No. 720, etc.	\$ 140,156 \$	140,156
Others	5,978	6,274
	\$ 146,134 \$	146,430
Taichung branch
Song Quan Lot No. 164, etc.	\$ 176,296 \$	176,296
Wu Feng Lot No. 365~ 855, etc.	175,661	175,661
Tu Ku Section No. 9-7, etc.	55,167	-
Song Chang Lot No. 557, etc.	19,912	19,912
Hong Long Zub Section No. 133-004	19,513	19,513
Xi Zhou Lot No. 112-54, etc.	11,941	11,941
Others	20,446	24,134
	\$ 478,936 \$	427,457
Tainan branch
Shan Zhong Lot No. 1468, 1475 & 1476, etc.	\$ 234,699 \$	234,699
Xue Zhong Lot No. 679, etc.	50,798	50,798
Yong Kang Ding An Lot No. 879, etc.	28,610	28,610
Bei An Section No. 54-3, etc.	15,344	15,344
Chin An Section No. 373, etc.	15,139	15,139
Bao An Lot No. 882, etc.	10,325	10,325
Ren Wu New Hougang West Section No. 69, No.70 etc.	-	112,876
Shan Chia Section No. 939, etc.	-	108,111
Chin An Section No. 297, etc.	-	78,928
Others	14,550	19,360
	\$ 369,465 \$	674,190
Kaohsiung branch
Ren Wu New Hougang West Section No. 53, etc.	\$ 986,221 \$	-
Ren Wu New Hougang West Section No. 30 & 52-74	408,037	-
Da Hua Lot No. 434 & 436	13,923	13,923
	\$ 1,408,181 \$	13,923
Total land held for construction site	\$ 2,402,716 \$	1,262,000

(b)Land held for construction site (b) Land held for construction site

Taichung branch

(c)Buildings and land held for sale (c) Buildings and land held for sale

Taipei branch		December 31, 2015	December 31, 2014
Prince Tanmei	\$	2,270,855 \$	2,458,201
Prince Fu II		641,311	-
Taipei Shinyi		106,741	178,874
Prince Dragon House III		42,432	42,432
Prince Da Din		12,446	12,657
Prince Guo Boa		5,738	5,738
Prince Central Park		-	56,530
Others		546	546
	\$	3,080,069 \$	2,754,978
Taichung branch
Chin Fon Gin	\$	516,970 \$	-
The Cloud Century A		452,895	-
Hai Yan		64,657	-
Prince Fu		39,528	67,815
Jing Yun Sian		13,418	458,590
The Cloud Century B		-	441,774
The Cloud Century C		-	374,356
Others		10,889	10,889
	\$	1,098,357 \$	1,353,424
Tainan branch
Flower Bo Five Tun Sha Building III Jun Chan LV Prince Golden Age Prince WIN-I Mansion Prince WIN-W Swite (A) Prince Dragon Others	\$ \$	1,625,272 \$ 28,376 19,725 19,572 - - - 2,188 1,695,133 \$	- 28,376 19,725 19,572 61,350 10,439 1,081 11,961 152,504
Kaohsiung branch
Prince Hua Yang	\$	79,875 \$	156,111
Prince Dai Din		10,431	11,736
	\$	90,306 \$	167,847
Total buildings and land held for sale	\$	5,963,865 \$	4,428,753

Tainan branch

Kaohsiung branch

Fi





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(d) Prepayment for land (d) Prepayment for land (d) Prepayment for land (d) Prepayment for land (d) Prepayment for land

(e) Prepayment for buildings and land (e) Prepayment for buildings and land (e) Prepayment for buildings and land (e) Prepayment for buildings and land (e) Prepayment for buildings and land

After the land consolidation, abovementioned Ren Wu Dist. Xia Hai Lot No. 978, etc. became New Hougang West Section No. 20~144-1, etc. After the land consolidation, abovementioned Ren Wu Dist. Xia Hai Lot No. 978, etc. became New Hougang West Section No. 20~144-1, etc. After the land consolidation, abovementioned Ren Wu Dist. Xia Hai Lot No. 978, etc. became New Hougang West Section No. 20~144-1, etc. After the land consolidation, abovementioned Ren Wu Dist. Xia Hai Lot No. 978, etc. became New Hougang West Section No. 20~144-1, etc. After the land consolidation, abovementioned Ren Wu Dist. Xia Hai Lot No. 978, etc. became New Hougang West Section No. 20~144-1, etc.

(6) Other current assets (6) Other current assets (6) Other current assets (6) Other current assets (6) Other current assets

(7) Available-for-sale financial assets (7) Available-for-sale financial assets (7) Available-for-sale financial assets (7) \$YDLODEOHIRUVDOH ¿QDQFLDO DVVHWV (7) Available-for-sale financial assets

Taipei branch Taipei branch Taipei branch Taipei branch	December 31, 2015 December 31, 2015 December 31, 2015 December 31, 2015	December 31, 2014 December 31, 2014 December 31, 2014 December 31, 2014
Bail Dist. Chung Chang Section No. 222 Bail Dist. Chung Chang Section No. 222 Bail Dist. Chung Chang Section No. 222 Bail Dist. Chung Chang Section No. 222	\$ - \$ - \$ - \$ -	\$ 66,260 \$ 66,260 \$ 66,260 \$ 66,260
Taichung branch Taichung branch Taichung branch Taichung branch
Chaotun Township HsinFuLiao Section No. 1097, etc. Chaotun Township HsinFuLiao Section No. 1097, etc. Chaotun Township HsinFuLiao Section No. 1097, etc. Chaotun Township HsinFuLiao Section No. 1097, etc.	\$ - \$ - \$ - \$ -	\$ 16,000 \$ 16,000 \$ 16,000 \$ 16,000
Tainan branch Tainan branch Tainan branch Tainan branch
Ren Wu New Hougang West Section No. 20, etc. Ren Wu New Hougang West Section No. 20, etc. Ren Wu New Hougang West Section No. 20, etc. Ren Wu New Hougang West Section No. 20, etc.	\$ 223,700 \$ \$ 223,700 \$ \$ 223,700 \$ \$ 223,700 \$	- - - -
Ren Wu Dist. Xia Hai Lot No. 978, etc. Ren Wu Dist. Xia Hai Lot No. 978, etc. Ren Wu Dist. Xia Hai Lot No. 978, etc. Ren Wu Dist. Xia Hai Lot No. 978, etc.	- - - -	1,685,715 1,685,715 1,685,715 1,685,715
Others Others Others Others	- - - -	2,665 2,665 2,665 2,665
	\$ 223,700 \$ \$ 223,700 \$ \$ 223,700 \$ \$ 223,700 \$	1,688,380 1,688,380 1,688,380 1,688,380
Total prepayment for land Total prepayment for land	\$ 223,700 \$ \$ 223,700 \$	1,770,640 1,770,640
Total prepayment for land Total prepayment for land	\$ 223,700 \$ \$ 223,700 \$	1,770,640 1,770,640

A. The Company recognised \$27,126 and \$565,941 in other comprehensive loss for fair value change for the years ended December 31, 2015 and 2014, respectively. A. The Company recognised \$27,126 and \$565,941 in other comprehensive loss for fair value change A. The Company recognised \$27,126 and \$565,941 in other comprehensive loss for fair value change A. The Company recognised \$27,126 and \$565,941 in other comprehensive loss for fair value change for the years ended December 31, 2015 and 2014, respectively. A. The Company recognised \$27,126 and \$565,941 in other comprehensive loss for fair value change for the years ended December 31, 2015 and 2014, respectively.

	December 31, 2015 December 31, 2015 December 31, 2015 December 31, 2015		December 31, 2014 December 31, 2014 December 31, 2014 December 31, 2014
Taisugar Kao An Section	\$	651,397 \$	252,098
Taisugar Kao An Section	\$	651,397 \$	252,098
Taisugar Kao An Section	\$	651,397 \$	252,098
Taisugar Kao An Section	\$	651,397 \$	252,098
Taisugar Nanzi Section		258,794	62,940
Taisugar Nanzi Section		258,794	62,940
Taisugar Nanzi Section		258,794	62,940
Taisugar Nanzi Section		258,794	62,940
Prince Yun Ding		37,800	37,800
Prince Yun Ding		37,800	37,800
Prince Yun Ding		37,800	37,800
Prince Yun Ding		37,800	37,800
Taisugar He Guan Section		-	158,042
Taisugar He Guan Section		-	158,042
Taisugar He Guan Section		-	158,042
Taisugar He Guan Section		-	158,042
	\$	947,991 \$	510,880
	\$	947,991 \$	510,880
	\$	947,991 \$	510,880
	\$	947,991 \$	510,880

~33~ ~33~ for the years ended December 31, 2015 and 2014, respectively. for the years ended December 31, 2015 and 2014, respectively. ~33~ B. The fair value of the Company's certain available-for-sale financial assets declined VLJQL¿FDQWO\ EHORZ LWV LQLWLDO LQYHVWPHQW FRVW 7KHUHIRUH WKH &RPSDQ\ UHFRJQLVHG LPSDLUPHQW loss of \$11,814 for the year ended December 31, 2014, including the amount of \$11,814 that ZDV WUDQVIHUUHG IURP HTXLW\ WR SUR¿W RU ORVV
& 'HWDLOV RI WKH &RPSDQ\¶V DYDLODEOHIRUVDOH ¿QDQFLDO DVVHWV SOHGJHG WR RWKHUV DV FROODWHUDO DUH provided in Note 8.

Items Items Items Items	December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014	December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014
Deferred sales commission Deferred sales commission Deferred sales commission Deferred sales commission	\$ 297,551 \$ \$ 297,551 \$ \$ 297,551 \$ 297,551 \$ \$	507,245 507,245 507,245 507,245

Items Items Items Items	December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014	December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014
Non-current items: Non-current items: Non-current items: Non-current items:
Listed ( TSE and OTC ) stocks Listed ( TSE and OTC ) stocks Listed ( TSE and OTC ) stocks Listed ( TSE and OTC ) stocks	\$ 106,684 \$ \$ 106,684 \$ \$ 106,684 \$ \$ 106,684 \$	109,857 109,857 109,857 109,857
Emerging stocks Emerging stocks Emerging stocks Emerging stocks	- - - -	558 558 558 558
Unlisted stocks Unlisted stocks Unlisted stocks Unlisted stocks	29,594 29,594 29,594 29,594	26,850 26,850 26,850 26,850
	136,278 136,278 136,278 136,278	137,265 137,265 137,265 137,265
Valuation adjustment of available-for-sale financial Valuation adjustment of available-for-sale financial Valuation adjustment of available-for-sale financial Valuation adjustment of available-for-sale financial
assets assets assets assets	1,406,114 1,406,114 1,406,114 1,406,114	1,445,390 1,445,390 1,445,390 1,445,390
	\$ 1,542,392 \$ \$ 1,542,392 \$ \$ 1,542,392 \$ \$ 1,542,392 \$	1,582,655 1,582,655 1,582,655 1,582,655

(8) Financial assets measured at cost (8) Financial assets measured at cost (8) Financial assets measured at cost

A.Based on the Company's intention, its investment in President Energy Development Ltd. and President International Development Corp. should be classified as 'available-for-sale financial assets'. However, as President Energy Development Ltd. and President International Development Corp. stocks are not traded in an active market, and no sufficient industry information of companies similar to President Energy Development Ltd. and President International Development Corp. can be obtained, the fair value of the investment in President Energy Development Ltd. and President International Development Corp. stocks cannot be measured reliably. Accordingly, the Company A. Based on the Company's intention, its investment in President Energy Development Ltd. and President International Development Corp. should be classified as 'available-for-sale ¿QDQFLDO DVVHWV¶ +RZHYHU DV 3UHVLGHQW (QHUJ\ 'HYHORSPHQW /WG DQG 3UHVLGHQW ,QWHUQDWLRQDO Development Corp. stocks are not traded in an active market, and no sufficient industry information of companies similar to President Energy Development Ltd. and President International Development Corp. can be obtained, the fair value of the investment in President Energy Development Ltd. and President International Development Corp. stocks FDQQRW EH PHDVXUHG UHOLDEO\ \$FFRUGLQJO\ WKH &RPSDQ\ FODVVL¿HG WKRVH VWRFNV DV µ¿QDQFLDO A.Based on the Company's intention, its investment in President Energy Development Ltd. and President International Development Corp. should be classified as 'available-for-sale financial assets'. However, as President Energy Development Ltd. and President International Development Corp. stocks are not traded in an active market, and no sufficient industry information of companies similar to President Energy Development Ltd. and President International Development Corp. can be obtained, the fair value of the investment in President Energy Development Ltd. and President International Development Corp. stocks cannot be measured reliably. Accordingly, the Company

B.Details of the Company's financial assets measured at cost pledged to others as collateral are % 'HWDLOV RI WKH &RPSDQ\¶V ¿QDQFLDO DVVHWV PHDVXUHG DW FRVW SOHGJHG WR RWKHUV DV FROODWHUDO DUH B.Details of the Company's financial assets measured at cost pledged to others as collateral are

classified those stocks as 'financial assets measured at cost'. assets measured at cost'. classified those stocks as 'financial assets measured at cost'.
provided in Note 8. provided in Note 8. provided in Note 8.
(9) Investments accounted for under the equity method (9) Investments accounted for under the equity method (9) Investments accounted for under the equity method
A. Details of investments accounted for under the equity method are set forth below: A. Details of investments accounted for under the equity method are set forth below: A. Details of investments accounted for under the equity method are set forth below:

~34~ Note 2:As of December 31, 2015, the book value of the Company's investment in Jin Yi Xing Plywood Co., Ltd. and Dong-Feng Enterprises Co., Ltd. was (\$503,466) and (\$25,491), respectively, which was below zero. Thus, the investments were

Items Items		December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014
Non-current items: Non-current items:
Unlisted stocks Unlisted stocks	\$ \$	887,529 \$ 887,529 \$	876,043 876,043

Non-current items: Non-current items:

		December 31, 2015 December 31, 2015	December 31, 2014 December 31, 2014
	Carrying	Percentage of	Carrying	Percentage of
	Carrying	Percentage of	Carrying	Percentage of
Name of subsidiaries and associates	amount	ownership	amount	ownership
Name of subsidiaries and associates	amount	ownership	amount	ownership
Prince Real Estate Co., Ltd.(Note 1) Prince Real Estate Co., Ltd.(Note 1)	\$ 1,497,188 \$ 1,497,188	99.65% 99.65%	\$ - \$	- - -
Uni-President Development Corp.	1,365,037	30.00%	1,311,431	30.00%
Uni-President Development Corp.	1,365,037	30.00%	1,311,431	30.00%
Cheng-shi Investment Holdings Co., Ltd.	904,767	100.00%	463,520	100.00%
Cheng-shi Investment Holdings Co., Ltd.	904,767	100.00%	463,520	100.00%
Time Square International Hotel	488,834	100.00%	360,569	100.00%
Time Square International Hotel	488,834	100.00%	360,569	100.00%
Prince Housing Investment Co., Ltd.	408,008	100.00%	345,454	100.00%
Prince Housing Investment Co., Ltd.	408,008	100.00%	345,454	100.00%
The Splendor Hotel Taichung	338,669	50.00%	345,108	50.00%
The Splendor Hotel Taichung	338,669	50.00%	345,108	50.00%
Geng-Ding Co., Ltd.	326,189	30.00%	326,959	30.00%
Geng-Ding Co., Ltd.	326,189	30.00%	326,959	30.00%
Prince Property Management Consulting Co., Ltd.	270,318	100.00%	257,096	100.00%
Prince Property Management Consulting Co., Ltd.	270,318	100.00%	257,096	100.00%
Ming-Da Enterprise Co., Ltd.	166,887	20.00%	151,132	20.00%
Ming-Da Enterprise Co., Ltd.	166,887	20.00%	151,132	20.00%
Jin Yi Xing Plywood Co., Ltd. (Note 1,2) Jin Yi Xing Plywood Co., Ltd. (Note 1,2)	-	99.65% - 99.65%	673,989 673,989	99.65% 99.65%
Dong-Feng Enterprises Co., Ltd. (Note 2) Dong-Feng Enterprises Co., Ltd. (Note 2)	-	100.00% - 100.00%	73,589	100.00% 73,589 100.00%
Others (individually less than 2%) Others (individually less than 2%)	10,581	- 10,581 -	73,223	- 73,223 -
	\$ 5,776,478 \$ 5,776,478		\$ 4,382,070 \$ 4,382,070

Note 1ǺA newly established company arising from land division of Jin Yi Xing Plywood Co., Ltd. Note 1ǺA newly established company arising from land division of Jin Yi Xing Plywood Co., Ltd. Ltd. on September 1, 2015.
on September 1, 2015. ~34~ on September 1, 2015. transferred to other non-current liabilities at \$528,957.
B. Subsidiaries

Note 1:A newly established company arising from land division of Jin Yi Xing Plywood Co.,

Please refer to Note 4(3) of the Company's consolidated financial statements for the subsidiaries' information.

D 7KH VXPPDUL]HG ¿QDQFLDO LQIRUPDWLRQ RI WKH DVVRFLDWHV WKDW DUH PDWHULDO WR WKH &RPSDQ\

C. Associates
is as follows: Balance sheet

Statements of comprehensive income

Uni President Development Corp.

b. The carrying amount of the Company's interests in all individually immaterial associates and the Company's share of the operating results are summarized below: b. The carrying amount of the Company's interests in all individually immaterial associates and the Company's share of the operating results are summarized below: the Company's share of the operating results are summarized below:

As of December 31, 2015 and 2014, the carrying amount of the Company's individually immaterial associates amounted to \$493,076 and \$478,091, respectively. As of December 31, 2015 and 2014, the carrying amount of the Company's individually immaterial associates amounted to \$493,076 and \$478,091, respectively. As of December 31, 2015 and 2014, the carrying amount of the Company's individually immaterial associates amounted to \$493,076 and \$478,091, respectively.

		Uni President Development Corp. Uni President Development Corp.
			December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014
Current assets	\$	315,715 \$	1,157,049
Current assets	\$	315,715 \$	1,157,049
Non-current assets		9,622,107	9,209,813
Non-current assets		9,622,107	9,209,813
Current liabilities	(	3,627,239) (	2,898,391)
Current liabilities	(	3,627,239) (	2,898,391)
Non-current liabilities	(	1,760,396) (	3,097,036)
Non-current liabilities	(	1,760,396) (	3,097,036)
Total net assets	\$	4,550,187 \$	4,371,435
Total net assets	\$	4,550,187 \$	4,371,435
Share in associate's net assets	\$	1,365,037 \$	1,311,431
Share in associate's net assets	\$	1,365,037 \$	1,311,431
Statements of comprehensive income

	2015 2015	2014 2014
Revenue	\$ 1,066,653 \$	1,073,558
Revenue	\$ 1,066,653 \$	1,073,558
Profit for the year from continuing operations	\$ 221,365 \$	226,607
Profit for the year from continuing operations	\$ 221,365 \$	226,607
Total comprehensive income	\$ 221,365 \$	226,607
Total comprehensive income	\$ 221,365 \$	226,607

	Years ended December 31, Years ended December 31,
		2015	2014
Profit for the year from continuing operations	\$ \$	2015 276,233 \$ 276,233 \$	2014 203,338 203,338
Profit for the year from continuing operations Total comprehensive income	\$	276,233 \$	203,338
Total comprehensive income	\$	276,233 \$	203,338

D. Share of profit of associates and joint ventures accounted for using equity method was \$842,977 D. Share of profit of associates and joint ventures accounted for using equity method was \$842,977 D. Share of profit of associates and joint ventures accounted for using equity method was \$842,977 and \$421,552 for the years ended December 31, 2015 and 2014, respectively.
~35~ ~35~ E. The investment income of certain investees for the years ended December 31, 2015 and DFFRXQWHG IRU XQGHU WKH HTXLW\ PHWKRG ZDV EDVHG RQ WKHLU ¿QDQFLDO VWDWHPHQWV IRU WKH corresponding periods, which were audited by other auditors. The investment (loss) income recognized for these investees for the years ended December 31, 2015 and 2014 was (\$27,182) and \$13,657, respectively. As of December 31, 2015 and 2014, investment balance accounted for under the equity method in these investees were \$979,024 and \$1,016,089, respectively.

Uni President Development Corp.

7KH LQYHVWHHV ZKRVH ¿QDQFLDO VWDWHPHQWV ZHUH DXGLWHG E\ RWKHU DXGLWRUV IRU WKH \HDUV HQGHG December 31, 2015 and 2014 were as follows:

Prince Property Management Consulting Co., Ltd., Geng-Ding Co., Ltd., Prince Housing Investment Co., Ltd., Dong-Feng Enterprises Co., Ltd., Early Success Investments Ltd. (Note 1) and Bio Sun Technology Co., Ltd. (Note 2).

Note 1:On December 14, 2015, Early Success Investments Limited has been liquidated, and WKXV GLG QRW LVVXH ¿QDQFLDO VWDWHPHQWV DXGLWHG E\ LQGHSHQGHQW DFFRXQWDQWV IRU WKH year ended December 31, 2015.
Note 2:Bio Sun Technology Co., Ltd. has ceased operations since 2014, and thus did not LVVXH ¿QDQFLDO VWDWHPHQWV DXGLWHG E\ LQGHSHQGHQW DFFRXQWDQWV IRU WKH \HDUV HQGHG

F. Details of the Company's investments accounted for under equity method pledged to others

December 31, 2015 and 2014. F. Details of the Company's investments accounted for under equity method pledged to others as
as collateral are provided in Note 8. collateral are provided in Note 8.
(10) Property, plant and equipment (10) Property, plant and equipment
A. Details of book values are as follows: A. Details of book values are as follows:

	Opening net				Closing net
Cost	book amount	Additions	Disposals	Reclassifications book amount
Land	\$ 191,884 \$	- \$ ~36~	- \$	- \$	191,884
Buildings	438,331	-	-	-	438,331
Computer and communication equipment	57,556	1,948	-	-	59,504
Transportation equipment	9,567	1,200	-	-	10,767
Office equipment	171,640	4,219	-	-	175,859
Leasehold improvements	47,000	-	-	26,532	73,532
Other equipment	1,943	- (	29)	-	1,914
Construction in progress	152	26,380	- (	26,532)	-
	\$ 918,073 \$	33,747 (\$	29)	\$ -	\$ 951,791

		December 31, 2015 December 31, 2014
Land	\$ 191,884 \$	191,884
Buildings	310,533	318,692
Computer and communication equipment	14,340	17,909
Transportation equipment	4,397	3,822
Office equipment	49,493	57,502
Leasehold improvements	25,648	-
Other equipment	462	765
Construction in progress and prepayments
for equipment	-	152
	\$ 596,757 \$	590,726

Construction in progress and prepayments

B. Changes in property, plant and equipment for the year are as follows: B. Changes in property, plant and equipment for the year are as follows:

Year ended December 31, 2015

	Opening net				Closing net
Cost	book amount	Additions	Disposals	Reclassifications book amount
Land	\$ 122,657 \$	- \$	- \$	69,227 \$	191,884
Buildings	401,309	-	-	37,022	438,331
Computer and communication equipment	51,119	6,437	-	-	57,556
Transportation equipment	9,567	1,000	( 1,000)	-	9,567
Office equipment	168,868	2,782 (	10)	-	171,640
Leasehold improvements	47,000	-	-	-	47,000
Other equipment	1,963	- (	20)	-	1,943
Construction in progress	-	152	-	-	152
	\$ 802,483 \$	10,371 (\$	1,030) \$	106,249 \$	918,073

Year ended December 31, 2014

Opening net Closing net

(11) Investment property (11) Investment property (11) Investment property

Accumulated depreciation Accumulated depreciation Accumulated depreciation Buildings	Opening net Opening net Opening net book amount book amount book amount \$ 111,460 \$		Additions Additions Additions 8,179 \$		Disposals Disposals Disposals	Reclassifications book amount Reclassifications book amount - \$	Closing net Closing net Closing net Reclassifications book amount - \$ 119,639
Buildings Buildings Computer and communication	\$ \$ 111,460 \$	111,460 \$ ~37~	8,179 \$ 8,179 \$		- \$	- \$ - \$	- \$ 119,639 119,639
Computer and communication equipment Computer and communication equipment equipment Transportation equipment	34,313 34,313	34,313 5,596	5,334 5,334 5,334 720 (		- - - 571)	- - - -	39,647 39,647 39,647 5,745
Transportation equipment Transportation equipment Office equipment	5,596 98,223	5,596	720 ( 720 ( 15,916 (		571) 571) 1)	- - -	5,745 5,745 114,138
Office equipment Office equipment Leasehold improvements	98,223 47,000	98,223	15,916 ( 15,916 ( -		1) 1) -	- - -	114,138 114,138 47,000
Leasehold improvements Leasehold improvements Other equipment	47,000	47,000 903 903	- 275 275	-	- - - -	- - -	47,000 47,000 1,178 1,178
Other equipment Other equipment	903 \$ 297,495 \$ \$	297,495 \$	275 30,424 (\$ 30,424 (\$		- 572) 572)	- - \$ - \$ -	1,178 \$ 327,347 \$ 327,347
C. Details of the Company's property, plant and equipment pledged to others as collateral are	\$ 297,495 \$		30,424 (\$		572)	\$ -	\$ 327,347

C. Details of the Company's property, plant and equipment pledged to others as collateral are provided in Note 8. C. Details of the Company's property, plant and equipment pledged to others as collateral are provided in Note 8. C. Details of the Company's property, plant and equipment pledged to others as collateral are provided in Note 8. provided in Note 8. (11) Investment property

			Year ended December 31, 2015
	Opening net				Closing net
Accumulated depreciation	book amount	Additions	Disposals	Reclassifications book amount
Buildings	\$ 119,639 \$	8,159 \$	- \$	- \$	127,798
Computer and communication equipment	39,647	5,517	-	-	45,164
Transportation equipment	5,745	625	-	-	6,370
Office equipment	114,138	12,228	-	-	126,366
Leasehold improvements	47,000	884	-	-	47,884
Other equipment	1,178	274	-	-	1,452
	\$ 327,347 \$	27,687	\$ - Year ended December 31, 2014	\$ -	\$ 355,034
			Year ended December 31, 2014 Year ended December 31, 2014

A. Details of book values are as follows: A. Details of book values are as follows: A. Details of book values are as follows: A. Details of book values are as follows:

		December 31, 2015 December 31, 2015	December 31, 2014 December 31, 2014
Land Land	\$ \$	December 31, 2015 265,550 \$ 265,550 \$	December 31, 2014 203,494 203,494
Land Leased assets-land Leased assets-land	\$	265,550 \$ 2,567,486 2,567,486	203,494 2,567,621 2,567,621
Leased assets-land Leased assets-buildings Leased assets-buildings		2,567,486 3,226,616 3,226,616	2,567,621 3,321,065 3,321,065
Leased assets-buildings	\$ \$	3,226,616 6,059,652 \$ 6,059,652 \$	3,321,065 6,092,180 6,092,180
	\$	6,059,652	\$ 6,092,180

Changes in investment property for the year are as follows:			Year ended December 31, 2015 Year ended December 31, 2015
	Opening net Opening net		Year ended December 31, 2015		Closing net Closing net
Cost Cost	book amount Opening net book amount	Additions Additions	Disposals Disposals	Reclassifications Reclassifications	book amount Closing net book amount
Land Cost Land	\$ book amount 203,494 \$ \$ 203,494 \$	Additions - \$	Disposals - \$ - \$	Reclassifications 62,056 \$ - \$ 62,056 \$	book amount 265,550 265,550
Land Leased assets-land Leased assets-land	\$ 203,494 \$ 2,567,621 2,567,621	- \$ - (	- \$ 135) - ( 135)	62,056 \$ - -	265,550 2,567,486 2,567,486
Leased assets-land Leased assets-buildings Leased assets-buildings	2,567,621 3,977,875 3,977,875	- ( - (	135) 10,337) - ( 10,337)	- - -	2,567,486 3,967,538 3,967,538
Leased assets-buildings	\$ 3,977,875 6,748,990 \$ 6,748,990	\$ - ( - \$ -	(\$ 10,337) 10,472) \$ (\$ 10,472) \$	62,056 \$ - 62,056 \$	3,967,538 6,800,574 6,800,574
	\$ 6,748,990	\$ -	(\$ 10,472) \$ Year ended December 31, 2014 Year ended December 31, 2014	62,056 \$	6,800,574
	Opening net Opening net		Year ended December 31, 2014		Closing net Closing net
Cost Cost	book amount book amount Opening net	Additions Additions	Disposals Disposals	Reclassifications Reclassifications	book amount book amount Closing net
Land Land Cost	\$ \$ 203,494 \$ 203,494 \$ book amount	- \$ Additions	- \$ - \$ Disposals	- \$ - \$ Reclassifications	- \$ 203,494 203,494 book amount
Leased assets-land Leased assets-land Land	3,179,810 3,179,810 \$ 203,494 \$	- - - \$	- ( - ( - \$	612,189) 612,189) - \$	2,567,621 2,567,621 203,494
Leased assets-land Leased assets-buildings Leased assets-buildings	3,179,810 3,989,216 3,989,216	- - (	- ( 8,440) ( 8,440) ( - (	612,189) 2,901) 2,901)	2,567,621 3,977,875 3,977,875
Leased assets-buildings	\$ \$ 7,372,520 7,372,520 3,989,216	\$ \$ - - - (	(\$ (\$ 8,440) (\$ 8,440) (\$ 8,440) (	615,090) \$ 615,090) \$ 2,901)	6,748,990 6,748,990 3,977,875

B. Changes in investment property for the year are as follows: B. Changes in investment property for the year are as follows: B. Changes in investment property for the year are as follows:

C. Rental income from the lease of the investment property and direct operating expenses arising C. Rental income from the lease of the investment property and direct operating expenses arising C. Rental income from the lease of the investment property and direct operating expenses arising C. Rental income from the lease of the investment property and direct operating expenses arising

from the investment property are shown below: from the investment property are shown below: from the investment property are shown below: from the investment property are shown below: C. Rental income from the lease of the investment property and direct operating expenses arising
Rental revenue from the lease of the investment Rental revenue from the lease of the investment Rental revenue from the lease of the investment Rental revenue from the lease of the investment
Direct operating expenses arising from the investment property that generated rental Direct operating expenses arising from the investment property that generated rental Direct operating expenses arising from the investment property that generated rental Direct operating expenses arising from the investment property that generated rental
Direct operating expenses arising from the investment property that did not generate rental income in the period -\$ -\$ Direct operating expenses arising from the investment property that did not generate rental income in the period -\$ -\$ Direct operating expenses arising from the investment property that did not generate Direct operating expenses arising from the investment property that did not generate
estimated the fair value based on market evidence on transaction price of similar property and assessed value. assessed value. assessed value. Company was \$12,948,124 and \$12,952,561, respectively. The Company's management estimated the fair value based on market evidence on transaction price of similar property and
assessed value. E. Information about the investment property that was pledged to others as collateral is provided E. Information about the investment property that was pledged to others as collateral is provided in Note 8. in Note 8. in Note 8. assessed value.

B.Changes in intangible assets for the year are as follows: B.Changes in intangible assets for the year are as follows: B. Changes in intangible assets for the year are as follows:

December 31, 2015 December 31, 2014

in Note 8. (12) Intangible assets (12) Intangible assets (12) Intangible assets E. Information about the investment property that was pledged to others as collateral is provided

(12) Intangible assets A.Details of book values are as follows: A. Details of book values are as follows: A.Details of book values are as follows: in Note 8.

		Year ended December 31, 2015 Year ended December 31, 2015
Accumulated depreciation Accumulated depreciation	Opening net Opening net Opening net book amount book amount	Additions Additions	Year ended December 31, 2015 Disposals Disposals	Reclassifications Reclassifications	Closing net Closing net Closing net book amount book amount
Accumulated depreciation	Opening net book amount	Additions	Disposals	Reclassifications	Closing net book amount
Leased assets-buildings Leased assets-buildings Accumulated depreciation Leased assets-buildings	\$ 656,810 \$ \$ 656,810 \$ book amount \$ 656,810 \$	85,788 (\$ 85,788 (\$ Additions 85,788 (\$	1,676) 1,676) Disposals 1,676)	\$ - \$ - Reclassifications \$ -	\$ 740,922 \$ 740,922 book amount \$ 740,922
Leased assets-buildings	\$ 656,810 \$	85,788 (\$	1,676)	\$ -	\$ 740,922
			Year ended December 31, 2014 Year ended December 31, 2014 Year ended December 31, 2014

D. As of December 31, 2015 and 2014, the fair value of the investment property held by the Company was \$12,948,124 and \$12,952,561, respectively. The Company's management D. As of December 31, 2015 and 2014, the fair value of the investment property held by the Company was \$12,948,124 and \$12,952,561, respectively. The Company's management estimated the fair value based on market evidence on transaction price of similar property and D. As of December 31, 2015 and 2014, the fair value of the investment property held by the Company was \$12,948,124 and \$12,952,561, respectively. The Company's management estimated the fair value based on market evidence on transaction price of similar property and D.As of December 31, 2015 and 2014, the fair value of the investment property held by theCompany was \$12,948,124 and \$12,952,561, respectively. The Company's management estimated on market evidence on transaction price of similar property and D. As of December 31, 2015 and 2014, the fair value of the investment property held by the rental income in the period -\$ -\$

	~39~ ~39~

	~39~
	~39~

Accumulated depreciation Accumulated depreciation	Opening net Opening net Opening net book amount book amount	Additions Additions	Year ended December 31, 2014 Disposals Disposals	Reclassifications Reclassifications	Closing net Closing net Closing net book amount book amount
Accumulated depreciation	Opening net book amount	Additions	Disposals	Reclassifications	Closing net book amount
Leased assets-buildings Leased assets-buildings Accumulated depreciation Leased assets-buildings	\$ 578,291 \$ \$ 578,291 \$ book amount \$ 578,291 \$	86,645 (\$ 86,645 (\$ Additions 86,645 (\$	7,737) (\$ 7,737) (\$ Disposals 7,737) (\$	389) \$ 389) \$ Reclassifications 389) \$	656,810 656,810 book amount 656,810

from the investment property are shown below:		Years ended December 31, Years ended December 31, Years ended December 31,
		2015 2015 Years ended December 31,		2014 2014
Rental revenue from the lease of the investment Rental revenue from the lease of the investment Rental revenue from the lease of the investment property property Rental revenue from the lease of the investment property	\$ \$ \$	2015 2015 294,612 \$ 294,612 \$ 294,612 \$		2014 2014 299,476 299,476 299,476
Direct operating expenses arising from the Direct operating expenses arising from the property Direct operating expenses arising from the investment property that generated rental investment property that generated rental Direct operating expenses arising from the investment property that generated rental income in the period income in the period investment property that generated rental income in the period	\$ \$ \$	294,612 \$ 157,872 \$ 157,872 \$		299,476 165,200 165,200
Direct operating expenses arising from the Direct operating expenses arising from the income in the period Direct operating expenses arising from the investment property that did not generate investment property that did not generate Direct operating expenses arising from the investment property that did not generate	\$ \$	157,872 \$ 157,872 \$		165,200 165,200
rental income in the period rental income in the period	\$ \$	- -	\$ \$	- -

E. Information about the investment property that was pledged to others as collateral is provided E. Information about the investment property that was pledged to others as collateral is provided

December 31, 2015 December 31, 2014

A.Details of book values are as follows:

Service concession \$ 506,680 \$ 61,253 -\$ -\$ \$ 567,933

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

(13) Short-term borrowings (13) Short-term borrowings (13) Short-term borrowings (13) Short-term borrowings (13) Short-term borrowings

(14) Short-term notes payable (14) Short-term notes payable (14) Short-term notes payable (14) Short-term notes payable (14) Short-term notes payable (14) Short-term notes payable

(15) Receipts in advance (15) Receipts in advance (15) Receipts in advance (15) Receipts in advance (15) Receipts in advance (15) Receipts in advance

		Year ended December 31, 2015 Year ended December 31, 2015 Year ended December 31, 2015 Year ended December 31, 2015 Year ended December 31, 2015
	Opening net Opening net Opening net Opening net Opening net				Closing net Closing net Closing net Closing net Closing net
Accumulated Amortisation Accumulated Amortisation Accumulated Amortisation Accumulated Amortisation Accumulated Amortisation	book amount book amount book amount book amount book amount	Additions Additions Additions Additions Additions	Disposals Disposals Disposals Disposals Disposals	Reclassifications Reclassifications Reclassifications Reclassifications Reclassifications	book amount book amount book amount book amount book amount
Service concession Service concession Service concession Service concession Service concession	\$ 506,680 \$ \$ \$ 506,680 \$ 506,680 \$ \$ 506,680 \$ \$ 506,680 \$	61,253 61,253 61,253 61,253 61,253	\$ - \$ \$ - - \$ - \$ -	\$ - \$ \$ - - \$ - \$ -	\$ 567,933 \$ \$ 567,933 567,933 \$ 567,933 \$ 567,933
			Year ended December 31, 2014 Year ended December 31, 2014 Year ended December 31, 2014 Year ended December 31, 2014 Year ended December 31, 2014
	Opening net Opening net Opening net Opening net Opening net				Closing net Closing net Closing net Closing net Closing net
Accumulated Amortisation Accumulated Amortisation Accumulated Amortisation Accumulated Amortisation Accumulated Amortisation	book amount book amount book amount book amount book amount	Additions Additions Additions Additions Additions	Disposals Disposals Disposals Disposals Disposals	Reclassifications Reclassifications Reclassifications Reclassifications Reclassifications	book amount book amount book amount book amount book amount
Service concession Service concession Service concession Service concession Service concession	\$ 445,427 \$ \$ \$ 445,427 \$ 445,427 \$ \$ 445,427 \$ \$ 445,427 \$	61,253 61,253 61,253 61,253 61,253	\$ - \$ \$ - - \$ - \$ -	\$ - \$ \$ - - \$ - \$ -	\$ 506,680 \$ \$ 506,680 506,680 \$ 506,680 \$ 506,680

		For the years ended December 31, For the years ended December 31, For the years ended December 31, For the years ended December 31, For the years ended December 31,
		2015 2015 2015 2015 2015		2014 2014 2014 2014 2014
Operating costs-amortization expenses Operating costs-amortization expenses Operating costs-amortization expenses Operating costs-amortization expenses Operating costs-amortization expenses	\$ \$ \$ \$ \$	61,253 \$ 61,253 \$ 61,253 \$ 61,253 \$ 61,253 \$		61,253 61,253 61,253 61,253 61,253

	December 31, 2015 December 31, 2014	December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014
Secured borrowings Secured borrowings Secured borrowings Secured borrowings Secured borrowings	\$ 505,000 \$ \$ \$ 505,000 \$ 505,000 \$ \$ 505,000 \$ \$ 505,000 \$	1,580,000 1,580,000 1,580,000 1,580,000 1,580,000
Unsecured borrowings Unsecured borrowings Unsecured borrowings Unsecured borrowings Unsecured borrowings	1,759,874 1,759,874 1,759,874 1,759,874 1,759,874	1,365,584 1,365,584 1,365,584 1,365,584 1,365,584
	\$ 2,264,874 \$ \$ \$ 2,264,874 \$ 2,264,874 \$ \$ 2,264,874 \$ \$ 2,264,874 \$	2,945,584 2,945,584 2,945,584 2,945,584 2,945,584
Interest rate range Interest rate range Interest rate range Interest rate range Interest rate range	1.92%~2.51% 1.92%~2.51% 1.92%~2.51% 1.92%~2.51% 1.92%~2.51%	1.95%~2.51% 1.95%~2.51% 1.95%~2.51% 1.95%~2.51% 1.95%~2.51%

		December 31, 2015 December 31, 2014	December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 December 31, 2015December 31, 2014 December 31, 2015 December 31, 2014
Commercial papers Commercial papers Commercial papers Commercial papers Commercial papers	\$ \$ \$ \$ \$	1,469,600 \$ 1,469,600 \$ 1,469,600 \$ 1,469,600 \$ 1,469,600 \$	1,970,000 1,970,000 1,970,000 1,970,000 1,970,000
Less: Unamortized discount Less: Unamortized discount Less: Unamortized discount Less: Unamortized discount Less: Unamortized discount	( ( ( ( (	569) ( 569) ( 569) ( 569) ( 569) (	1,918) 1,918) 1,918) 1,918) 1,918)
	\$ \$ \$ \$ \$	1,469,031 \$ 1,469,031 \$ 1,469,031 \$ 1,469,031 \$ 1,469,031 \$	1,968,082 1,968,082 1,968,082 1,968,082 1,968,082
Interest rate range Interest rate range Interest rate range Interest rate range Interest rate range		0.55%~1.25% 0.55%~1.25% 0.55%~1.25% 0.55%~1.25% 0.55%~1.25%	0.79%~1.20% 0.79%~1.20% 0.79%~1.20% 0.79%~1.20% 0.79%~1.20%

(13) Short-term borrowings (13) Short-term borrowings (13) Short-term borrowings (13) Short-term borrowings (13) Short-term borrowings (13) Short-term borrowings
	December 31, 2015 December 31, 2014	December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014
Secured borrowings Secured borrowings Secured borrowings Secured borrowings Secured borrowings	\$ 505,000 \$ \$ \$ 505,000 \$ 505,000 \$ \$ 505,000 \$ \$ 505,000 \$	1,580,000 1,580,000 1,580,000 1,580,000 1,580,000
Unsecured borrowings Unsecured borrowings Unsecured borrowings Unsecured borrowings Unsecured borrowings	1,759,874 1,759,874 1,759,874 1,759,874 1,759,874	1,365,584 1,365,584 1,365,584 1,365,584 1,365,584
	\$ 2,264,874 \$ \$ \$ 2,264,874 \$ 2,264,874 \$ \$ 2,264,874 \$ \$ 2,264,874 \$	2,945,584 2,945,584 2,945,584 2,945,584 2,945,584
Interest rate range Interest rate range Interest rate range Interest rate range Interest rate range	1.92%~2.51% 1.92%~2.51% 1.92%~2.51% 1.92%~2.51% 1.92%~2.51%	1.95%~2.51% 1.95%~2.51% 1.95%~2.51% 1.95%~2.51% 1.95%~2.51%
For details of pledged assets, please refer to Note 8. For details of pledged assets, please refer to Note 8. For details of pledged assets, please refer to Note 8. For details of pledged assets, please refer to Note 8. For details of pledged assets, please refer to Note 8. For details of pledged assets, please refer to Note 8.
(14) Short-term notes payable (14) Short-term notes payable (14) Short-term notes payable (14) Short-term notes payable (14) Short-term notes payable (14) Short-term notes payable
	December 31, 2015 December 31, 2014	December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 December 31, 2015December 31, 2014 December 31, 2015 December 31, 2014
Commercial papers Commercial papers Commercial papers Commercial papers Commercial papers	\$ 1,469,600 \$ \$ \$ 1,469,600 \$ 1,469,600 \$ \$ 1,469,600 \$ \$ 1,469,600 \$	1,970,000 1,970,000 1,970,000 1,970,000 1,970,000
( Less: Unamortized discount Less: Unamortized discount Less: Unamortized discount Less: Unamortized discount Less: Unamortized discount	( 569) ( ( 569) ( 569) ( ( 569) ( ( 569) (	1,918) 1,918) 1,918) 1,918) 1,918)
	\$ 1,469,031 \$ \$ \$ 1,469,031 \$ 1,469,031 \$ \$ 1,469,031 \$ \$ 1,469,031 \$	1,968,082 1,968,082 1,968,082 1,968,082 1,968,082
Interest rate range Interest rate range Interest rate range Interest rate range Interest rate range	0.55%~1.25% 0.55%~1.25% 0.55%~1.25% 0.55%~1.25% 0.55%~1.25%	0.79%~1.20% 0.79%~1.20% 0.79%~1.20% 0.79%~1.20% 0.79%~1.20%
A.The above commercial papers were issued by banks and bills financial institutions. A.The above commercial papers were issued by banks and bills financial institutions. A.The above commercial papers were issued by banks and bills financial institutions. A.The above commercial papers were issued by banks and bills financial institutions. \$ 7KH DERYH FRPPHUFLDO SDSHUV ZHUH LVVXHG E\ EDQNV A.The above commercial papers were issued by banks and bills financial institutions.	DQG ELOOV ¿QDQFLDO	LQVWLWXWLRQV
B. For details of pledged assets, please refer to Note 8. B. For details of pledged assets, please refer to Note 8. B. For details of pledged assets, please refer to Note 8. B. For details of pledged assets, please refer to Note 8. B. For details of pledged assets, please refer to Note 8. B. For details of pledged assets, please refer to Note 8.
(15) Receipts in advance (15) Receipts in advance (15) Receipts in advance (15) Receipts in advance (15) Receipts in advance (15) Receipts in advance
Item Item Item Item Item		December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 December 31, 2015December 31, 2014 December 31, 2015 December 31, 2014
Advance real estate receipts Advance real estate receipts Advance real estate receipts Advance real estate receipts Advance real estate receipts	\$ 1,475,394 \$ \$ \$ 1,475,394 \$ 1,475,394 \$ \$ 1,475,394 \$ \$ 1,475,394 \$	2,728,482 2,728,482 2,728,482 2,728,482 2,728,482
Advance rent Advance rent Advance rent Advance rent Advance rent	158,054 158,054 158,054 158,054 158,054	192,055 192,055 192,055 192,055 192,055
Other advance receipts Other advance receipts Other advance receipts Other advance receipts Other advance receipts	807 807 807 807 807	710 710 710 710 710
	\$ 1,634,255 \$ \$ \$ 1,634,255 \$ 1,634,255 \$ \$ 1,634,255 \$ \$ 1,634,255 \$	2,921,247 2,921,247 2,921,247 2,921,247 2,921,247
(16) Bonds payable (16) Bonds payable
~40~ ~40~ ~40~ ~40~ ~40~		December 31, 2015 December 31, 2014
2012 1st secured ordinary bonds payable	\$ 2,000,000 \$	2,000,000
2013 1st secured ordinary bonds payable	2,500,000	2,500,000

A. The Company issued secured ordinary bonds payable in July 2012. The significant terms of the bonds are as follows: \$ 7KH &RPSDQ\ LVVXHG VHFXUHG RUGLQDU\ ERQGV SD\DEOH LQ -XO\ 7KH VLJQL¿FDQW WHUPV RI the bonds are as follows: (a) Total issue amount: \$2,000,000

\$ 4,500,000 \$ 4,500,000

(h) Guarantee Bank: The bonds are guaranteed by Taipei Fubon Commercial Bank.

(17)	Long-term borrowings (17) Long-term borrowings

(b) Issue price: At par value of \$100 per bond
(c) Coupon rate: 1.33%
(d) Terms of interest repayment: The bonds interest is calculated on simple rate every year starting July 2012 based on the coupon rate.
(e) Repayment term: The bonds are repaid upon the maturity of the bonds.
(f) Period: 5 years, from July 12, 2012 to July 12, 2017
(g) The way of security: The bonds are secured by Bank of Taiwan.
(h) Guarantee Bank: The bonds are guaranteed by Mega International Commercial Bank.
B. The Company issued secured ordinary bonds payable in November 2013. The significant terms of the bonds are as follows:
(a) Total issue amount: \$2,500,000
(b) Issue price: At par value of \$100 per bond
(c) Coupon rate: 1.55%
(d) Terms of interest repayment: The bonds interest is calculated on simple rate every year starting November 2013 based on the coupon rate.
(e) Repayment term: The bonds are repaid upon the maturity of the bonds.
(f) Period: 5 years, from November 21, 2013 to November 21, 2018
(g) The way of security: \$1.5 billion and \$1 billion secured by Bank of Taiwan and Agricultural Bank of Taiwan, respectively.
(17) Long-term borrowings

A. For details of pledged assets, please refer to Note 8. B. For details of restrictive covenants, please refer to Note 9. B.For details of restrictive covenants, please refer to Note 9.

B.For details of restrictive covenants, please refer to Note 9. (18) Provisions-replacement cost (18) Provisions-replacement cost (18) Provisions-replacement cost

A. For details of pledged assets, please refer to Note 8. A. For details of pledged assets, please refer to Note 8.

	December 31, 2015 December 31, 2015	December 31, 2014 December 31, 2014
Secured bank borrowings Secured bank borrowings	\$ 6,391,026 \$ \$ 6,391,026 \$	6,019,099 6,019,099
Unsecured bank borrowings Unsecured bank borrowings	270,000 270,000	410,000 410,000
	6,661,026 6,661,026	6,429,099 6,429,099
Less: Current portion Less: Current portion	( 362,870) ( ( 362,870) (	2,061,470) 2,061,470)
	\$ 6,298,156 \$ \$ 6,298,156 \$	4,367,629 4,367,629
Range of maturity dates Range of maturity dates	2016.06.24~2027.11.02 2016.06.24~2027.11.02	2015.03.18~2027.11.02 2015.03.18~2027.11.02
Range of interest rates Range of interest rates	2.16%~3.16% 2.16%~3.16%	2.29%~3.16% 2.29%~3.16%

		Years ended December 31, Years ended December 31,
		2015 2015	2014 2014
At January 1	\$	81,720 \$	79,071
At January 1	\$	81,720 \$	79,071
Additions Additions		30,394 30,394	27,210 27,210
Used	(	27,597) (	24,561)
Used	(	27,597) (	24,561)
At December 31	\$	84,517 \$	81,720
At December 31	\$	84,517 \$	81,720

(19) Pension

\$ D? 7KH &RPSDQ\ KDV D GH¿QHG EHQH¿W SHQVLRQ SODQ LQ DFFRUGDQFH ZLWK WKH /DERU 6WDQGDUGV Law, covering all regular employees' service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to FRQWLQXH WR EH VXEMHFW WR WKH SHQVLRQ PHFKDQLVP XQGHU WKH /DZ 8QGHU WKH GH¿QHG EHQH¿W SHQVLRQ SODQ WZR XQLWV DUH DFFUXHG IRU HDFK \HDU RI VHUYLFH IRU WKH ¿UVW \HDUV DQG RQH XQLW IRU HDFK DGGLWLRQDO \HDU WKHUHDIWHU VXEMHFW WR D PD[LPXP RI XQLWV 3HQVLRQ EHQH¿WV are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 2% of the employees' monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is not enough to pay the pension calculated by the aforementioned method to the employees expected to qualify IRU UHWLUHPHQW LQ WKH IROORZLQJ \HDU WKH &RPSDQ\ ZLOO PDNH FRQWULEXWLRQ IRU WKH GH¿FLW E\ next March. (b)The amounts recognised in the balance sheet are determined as follows:
(b) The amounts recognised in the balance sheet are determined as follows: (b)The amounts recognised in the balance sheet are determined as follows:

(c)Changes in net defined benefit liability are as follows: F? &KDQJHV LQ QHW GH¿QHG EHQH¿W OLDELOLW\ DUH DV IROORZV (c)Changes in net defined benefit liability are as follows:

		December 31, 2015 December 31, 2015	December 31, 2014 December 31, 2014
Present value of defined benefit obligations	(\$	111,723) (\$	93,186)
Present value of defined benefit obligations	(\$	111,723) (\$	93,186)
Fair value of plan assets Fair value of plan assets		5,009 5,009	3,590 3,590
Net defined benefit liability	(\$	106,714) (\$	89,596)
Net defined benefit liability	(\$	106,714) (\$	89,596)

	Present value of Present value of
	defined benefit defined benefit	Fair value Fair value	Net defined Net defined
	obligations obligations	of plan assets of plan assets	benefit liability benefit liability
Year ended December 31, 2015 Year ended December 31, 2015
At January 1 At January 1	(\$ 93,186) \$ (\$ 93,186) \$	3,590 (\$ 3,590 (\$	89,596) 89,596)
Current service cost Current service cost	( 522) ( 522)	- (	522) - ( 522)
Interest (expense) income Interest (expense) income	( 1,864) ( 1,864)	72 ( 72 (	1,792) 1,792)
	( 95,572) ( 95,572)	3,662 ( 3,662 (	91,910) 91,910)
Remeasurements: Remeasurements:
Change in financial assumptions ( Change in financial assumptions (	3,526) 3,526)	- (	3,526) - ( 3,526)
Experience adjustments Experience adjustments	( 12,625) ( 12,625)	89 ( 89 (	12,536) 12,536)
	( 16,151) ( 16,151)	89 ( 89 (	16,062) 16,062)
Pension fund contribution Pension fund contribution	- -	1,258 1,258	1,258 1,258
At December 31 At December 31	(\$ 111,723) \$ (\$ 111,723) \$	5,009 (\$ 5,009 (\$	106,714) 106,714)

Year ended December 31, 2014 Remeasurements:

	Present value of
	defined benefit	Fair value	Net defined
	obligations	of plan assets	benefit liability
Year ended December 31, 2014
At January 1	(\$ 94,114) \$	6,512 (\$	87,602)
Current service cost	( 504)	- (	504)
Interest (expense) income	( 1,895)	144 (	1,751)
	( 96,513)	6,656 (	89,857)
Remeasurements:
Experience adjustments	( 4,706)	- (	4,706)
Pension fund contribution	-	948	948
Paid pension	8,033 (	4,014)	4,019
At December 31	(\$ 93,186) \$	3,590 (\$	89,596)

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

ending December 31, 2016 are \$874. ending December 31, 2016 are \$874.
sum upon termination of employment. or in lump sum upon termination of employment.
ended December 31, 2015 and 2014 were \$7,499 and \$8,123, respectively.

Mortality Table. Mortality Table.

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

	Discount rate			Future salary increases
	Increase 1%	Decrease 1%	Increase 1%	Decrease 1%
December 31, 2015
Effect on present value of
defined benefit obligation	(\$ 11,175) \$	12,970 \$	11,645 (\$	10,299)

	Years ended December 31,
~43~	2015	2014
Discount rate	1.70%	2.00%
Future salary increases	1.50%	1.50%

Future mortality rate was estimated based on the 5th Taiwan Standard Ordinary Experience Future mortality rate was estimated based on the 5th Taiwan Standard Ordinary Experience

The sensitivity analysis above was arrived at based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same. The sensitivity analysis above was arrived at based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

(e)Expected contributions to the defined benefit pension plans of the Company for the year H? ([SHFWHG FRQWULEXWLRQV WR WKH GH¿QHG EHQH¿W SHQVLRQ SODQV RI WKH &RPSDQ\ IRU WKH \HDU

B.(a)Effective July 1, 2005, the Company has established a defined contribution pension plan (the "New Plan") under the Labor Pension Act (the "Act"), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees' monthly salaries and wages to the employees' individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump % D? (IIHFWLYH -XO\ WKH &RPSDQ\ KDV HVWDEOLVKHG D GH¿QHG FRQWULEXWLRQ SHQVLRQ SODQ (the "New Plan") under the Labor Pension Act (the "Act"), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees' monthly salaries and wages to the employees' individual SHQVLRQ DFFRXQWV DW WKH %XUHDX RI /DERU ,QVXUDQFH 7KH EHQH¿WV DFFUXHG DUH SDLG PRQWKO\

(b)The pension costs under the defined contribution pension plan of the Company for the years (b) The pension costs under the defined contribution pension plan of the Company for the years ended December 31, 2015 and 2014 were \$7,499 and \$8,123, respectively.

Financial Information

(20) Share-based payment-employee compensation plan (20) Share-based payment-employee compensation plan

A. For the year ended December 31, 2015, the Company's share-based payment: None. A. For the year ended December 31, 2015, the Company's share-based payment: None.
B. For the year ended December 31, 2014, the Company's share-based payment arrangement was as follows: B. For the year ended December 31, 2014, the Company's share-based payment arrangement was as follows:

Type of		Quantity	Contract	Vesting
arrangement	Grant date	granted	period	conditions
Cash capital increase reserved	2014.01.13	30,000	NA	Immediately
for employees C. The fair value of stock options granted on grant date is measured using the Black-Scholes		(In thousand shares)

Arrangement type			Grant date (in dollars) (in dollars) volatility duration dividend interest				Stock price Exercise price Expected Expected Expected Risk-free Fair price per unit (in dollars)
Arrangement type Cash capital increase	2014.01.13	\$16.85	Grant date (in dollars) (in dollars) volatility duration dividend interest ~44~ \$14.45		23.50% 0.19 year	- 0.40%	(in dollars) \$2.45
Cash capital increase reserved for employees	2014.01.13	\$16.85	\$14.45	(Note)	23.50% 0.19 year	- 0.40%	\$2.45
reserved for employees				(Note)
Note: Expected volatility is estimated based on the Company's average stock price for the latest year before the grant date.

Note: Expected volatility is estimated based on the Company's average stock price for the latest year before the grant date. D. For the year ended Demember 31, 2014, the Company's salary expense arising from

D. For the year ended Demember 31, 2014, the Company's salary expense arising from share-based payment transactions of cash capital increase reserved for employees pre-emption was \$73,500. D. For the year ended Demember 31, 2014, the Company's salary expense arising from sharebased payment transactions of cash capital increase reserved for employees pre-emption was \$73,500. share-based payment transactions of cash capital increase reserved for employees pre-emption was \$73,500.

(21) Share capital (21) Share capital (21) Share capital

A. Movements in the number of the Company's ordinary shares outstanding are as follows: (Units: in thousand shares) A. Movements in the number of the Company's ordinary shares outstanding are as follows: (Units: in thousand shares) A. Movements in the number of the Company's ordinary shares outstanding are as follows: (Units: in thousand shares)

C. The fair value of stock options granted on grant date is measured using the Black-Scholes option-pricing model. Relevant information is as follows: C. The fair value of stock options granted on grant date is measured using the Black-Scholes option-pricing model. Relevant information is as follows: option-pricing model. Relevant information is as follows: Stock price Exercise price Expected Expected Expected Risk-free Fair price per unit

B. On January 13, 2014, the Board of Directors has resolved to increase capital by \$3,000,000 with a par value of NT\$10. The issuance price is NT\$14.45. The capital increase was approved by the B. On January 13, 2014, the Board of Directors has resolved to increase capital by \$3,000,000 with a par value of NT\$10. The issuance price is NT\$14.45. The capital increase was approved by the Financial Supervisory Commission and the registration had been completed. B. On January 13, 2014, the Board of Directors has resolved to increase capital by \$3,000,000 with a par value of NT\$10. The issuance price is NT\$14.45. The capital increase was approved by the Financial Supervisory Commission and the registration had been completed.
Financial Supervisory Commission and the registration had been completed. C. On June 20, 2014, the shareholders have resolved to issue new shares amounting to 48,418 thousand shares using unappropriated retained earnings of \$484,177. The capital increase was C. On June 20, 2014, the shareholders have resolved to issue new shares amounting to 48,418 thousand shares using unappropriated retained earnings of \$484,177. The capital increase was approved by the Financial Supervisory Commission and the registration had been completed. C. On June 20, 2014, the shareholders have resolved to issue new shares amounting to 48,418 thousand shares using unappropriated retained earnings of \$484,177. The capital increase was approved by the Financial Supervisory Commission and the registration had been completed.
approved by the Financial Supervisory Commission and the registration had been completed. D. The Company's subsidiaries, Ta-Chen Construction & Engineering Corp. (Ta-Chen) has acquired the Company's shares in an open market to maintain the equity interest of the Company's shareholders. In order to strengthen management through eliminating interlocking shareholding, the Board of Directors of Ta-Chen has resolved to reduce capital of \$435,025 (elimination of 43,502 thousand shares) by returning the Company's shares (of 39,016 thousand shares) to Cheng-Shi Investment Holdings Co., Ltd. (Cheng-Shi Investment), and set the effective capital reduction date as August 5, 2015. Cheng-Shi Investment's Board of Directors has resolved the capital reduction and set the reduction effective on September 21, 2015, and returned shares to the Company. The registration of changes in capital and capital reduction as approved by the competent authority had been completed on November 18, 2015. D. The Company's subsidiaries, Ta-Chen Construction & Engineering Corp. (Ta-Chen) has acquired the Company's shares in an open market to maintain the equity interest of the Company's shareholders. In order to strengthen management through eliminating interlocking shareholding, the Board of Directors of Ta-Chen has resolved to reduce capital of \$435,025 (elimination of 43,502 thousand shares) by returning the Company's shares (of 39,016 thousand shares) to Cheng-Shi Investment Holdings Co., Ltd. (Cheng-Shi Investment), and set the effective capital reduction date as August 5, 2015. Cheng-Shi Investment's Board of Directors has resolved the capital reduction and set the reduction effective on September 21, 2015, and returned shares to the Company. The registration of changes in capital and capital reduction as approved by the competent authority had been completed on November 18, 2015. D. The Company's subsidiaries, Ta-Chen Construction & Engineering Corp. (Ta-Chen) has acquired the Company's shares in an open market to maintain the equity interest of the Company's shareholders. In order to strengthen management through eliminating interlocking shareholding, the Board of Directors of Ta-Chen has resolved to reduce capital of \$435,025 (elimination of 43,502 thousand shares) by returning the Company's shares (of 39,016 thousand shares) to Cheng-Shi Investment Holdings Co., Ltd. (Cheng-Shi Investment), and set the effective capital reduction date as August 5, 2015. Cheng-Shi Investment's Board of Directors has resolved the capital reduction and set the reduction effective on September 21, 2015, and returned shares to the Company. The registration of changes in capital and capital reduction as approved by the competent authority had been completed on November 18, 2015.

	Years ended December 31
	Years ended December 31 2015	2014
At January 1	2015 1,622,671	2014 1,274,253
At January 1 Stock dividends	1,622,671 -	1,274,253 48,418
Stock dividends Capital increase	- -	48,418 300,000
Capital increase At December 31	- 1,622,671	300,000 1,622,671
At December 31	1,622,671	1,622,671

E. As of December 31, 2015, the Company's authorized capital was \$20,000,000 and the paidin capital was \$16,233,261, with a par value of NT\$10 per share, consisting of 1,623,326

F. As of December 31, 2015 and 2014, the Company's subsidiaries - Ta-Chen Construction & Engineering Corp. and Prince Apartment Management Maintain Co., Ltd. held the Company's stocks to maintain equity interest in the Company. The amount of shares held by the subsidiaries was 655 thousand and 39,671 thousand, the average par value was both NT\$1.52 per share, and the fair value was NT\$9.40 and NT\$12.70 per share, respectively. Engineering Corp. and Prince Apartment Management Maintain Co., Ltd. held the Company's stocks to maintain equity interest in the Company. The amount of shares held by the subsidiaries was 655 thousand and 39,671 thousand, the average par value was both NT\$1.52

thousand shares of ordinary stock. F. As of December 31, 2015 and 2014, the Company's subsidiaries - Ta-Chen Construction &
per share, and the fair value was NT\$9.40 and NT\$12.70 per share, respectively.

(22) Capital surplus (22) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par YDOXH RQ LVVXDQFH RI FRPPRQ VWRFNV DQG GRQDWLRQV FDQ EH XVHG WR FRYHU DFFXPXODWHG GH¿FLW RU WR issue new stocks or cash to shareholders in proportion to their share ownership, provided that the &RPSDQ\ KDV QR DFFXPXODWHG GH¿FLW )XUWKHU WKH 52& 6HFXULWLHV DQG ([FKDQJH /DZ UHTXLUHV that the amount of capital surplus to be capitalized mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit XQOHVV WKH OHJDO UHVHUYH LV LQVXI¿FLHQW Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Law requires that the amount of capital surplus to be capitalized mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

(23) Retained earnings (23) Retained earnings

~46~ A.In accordance with the Company's Articles of Incorporation, the Company will take into consideration its future business plans and capital expenditures in determining the amounts of earnings to be retained and to be distributed. In accordance with the Company Law, 10% of the current year's earnings, after payment of all taxes and after offsetting accumulated deficit, shall be set aside as legal reserve until the balance of legal reserve is equal to that of issued share capital. Afterwards, an amount shall be appropriated or reversed as special reserve in accordance with applicable legal or regulatory requirements, along with prior years' accumulated unappropriated retained earnings, and then distribution should be in the following order: stock dividend and bonus to shareholders are 50%~100% of the accumulated A. In accordance with the Company's Articles of Incorporation, the Company will take into consideration its future business plans and capital expenditures in determining the amounts of earnings to be retained and to be distributed. In accordance with the Company Law, 10% of the current year's earnings, after payment of all taxes and after offsetting accumulated GH¿FLW VKDOO EH VHW DVLGH DV OHJDO UHVHUYH XQWLO WKH EDODQFH RI OHJDO UHVHUYH LV HTXDO WR WKDW of issued share capital. Afterwards, an amount shall be appropriated or reversed as special reserve in accordance with applicable legal or regulatory requirements, along with prior years' accumulated unappropriated retained earnings, and then distribution should be in the following order: stock dividend and bonus to shareholders are 50%~100% of the accumulated distributable earnings, and cash dividend is at least 30% of the total stock dividend and bonus; the appropriation of earnings is proposed by the Board of Directors and resolved by the shareholders. Employees' bonus includes employees of subsidiaries who satisfy certain

		Captial surplus
		Share	Treasury share
		premium	transaction	Others	Total
2015
At January 1	\$	1,408,500 \$	514,061 \$	7,232 \$	1,929,793
Treasury share transactions	(	33,058)	363,778	-	330,720
At December 31	\$	1,375,442 \$	877,839 \$	7,232 \$	2,260,513

	Captial surplus
	Share	Treasury share	Employee
	premium	transaction	stock options Others		Total
2014
At January 1	-\$ \$	514,061	\$ -	7,232\$	521,293\$
Share-based payment of cash capital
increase reserved for employee pre-emption	-	-	73,500	-	73,500
Cash capital increase	1,408,500	- (	73,500)	-	1,335,000
At December 31	1,408,500\$ \$	514,061	\$ -	7,232\$	1,929,793\$

VI

FRQGLWLRQV DQG DUH TXDOL¿HG DV WKH &RPSDQ\¶V HPSOR\HHV B.Except for covering accumulated deficit or issuing new stocks or cash to shareholders in

B. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company's paid-in capital. proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company's paid-in capital.
C. The Company recognized dividends distributed to owners amounting to \$1,329,873 (\$0.8 (in dollars) per share) and \$968,354 (\$0.6 (in dollars) per share) for the years ended December 31, 2015 and 2014, respectively. On March 23, 2016, the Board of Directors proposed that total dividends for the distribution of earnings for 2015 was \$1,785,659 with \$1.1 (in dollars) per share. C.The Company recognized dividends distributed to owners amounting to \$1,329,873 (\$0.8 (in dollars) per share) and \$968,354 (\$0.6 (in dollars) per share) for the years ended December 31, 2015 and 2014, respectively. On March 23, 2016, the Board of Directors proposed that total dividends for the distribution of earnings for 2015 was \$1,785,659 with \$1.1 (in dollars) per share.
D. For information relating to employees' compensation (bonuses) and directors' and supervisors' remunerations, please refer to Note 6(30). D.For information relating to employees' compensation (bonuses) and directors' and supervisors' remunerations, please refer to Note 6(30).
(24) Other equity items (24) Other equity items

		Available-for-sale	Currency		Treasury
		investment	translation		stocks	Total
At January 1, 2015	\$	1,434,529 \$	1,690 (\$			60,440) \$ 1,375,779
Available-for-sale investment:
-Loss at fair value	(	27,126)	-		- (	27,126)
Treasury stock transactions		-			59,437	59,437
Currency translation differences:
-Group		-	16		-	16
At December 31, 2015	\$	1,407,403	\$ 1,706	(\$	1,003)	\$ 1,408,090

		Available-for-sale	Currency		Treasury
		investment	translation		stocks	Total
At January 1, 2014	\$	2,000,470 (\$	859) (\$			60,440) \$ 1,939,171
Available-for-sale investment:
-Loss at fair value	(	565,941)	-		- (	565,941)
Currency translation differences:
-Group		-	2,549		-	2,549
At December 31, 2014	\$	1,434,529	\$ 1,690	(\$	60,440)	\$ 1,375,779

(25) Maturity analysis of assets and liabilities

months from the balance sheet date is as follows: months from the balance sheet date is as follows:
		Within 12 months Within 12 months	Over 12 months Over 12 months		Total Total
December 31, 2015 December 31, 2015
Assets Assets
Notes receivable, net Notes receivable, net	\$ \$	37,603 \$ 37,603 \$	671 \$ 671 \$		38,274 38,274
Accounts receivable, net Accounts receivable, net		854,336 854,336	3,722 3,722		858,058 858,058
Inventories Inventories		8,904,870 8,904,870	12,406,513 12,406,513		21,311,383 21,311,383
	\$ \$	9,796,809 \$ 9,796,809 \$	12,410,906 \$ 12,410,906 \$		22,207,715 22,207,715
Liabilities Liabilities
Notes payable Notes payable	\$ \$	11,094 \$ 11,094 \$		- \$ - \$	11,094 11,094
Accounts payable Accounts payable		2,016,244 2,016,244	596,364 596,364		2,612,608 2,612,608
(including related parties) (including related parties)
	\$ \$	2,027,338 \$ 2,027,338 \$	596,364 \$ 596,364 \$		2,623,702 2,623,702
		Within 12 months Within 12 months	Over 12 months Over 12 months		Total Total
December 31, 2014 December 31, 2014
Assets Assets
Notes receivable, net Notes receivable, net	\$ \$	123,188 \$ 123,188 \$	247 \$ 247 \$		123,435 123,435
Accounts receivable, net Accounts receivable, net		4,536,347 4,536,347	6,876 6,876		4,543,223 4,543,223
Inventories Inventories		7,105,888 7,105,888	12,242,620 12,242,620		19,348,508 19,348,508
	\$ \$	11,765,423 \$ 11,765,423 \$	12,249,743 \$ 12,249,743 \$		24,015,166 24,015,166
Liabilities Liabilities
Notes payable Notes payable	\$ \$	10,375 \$ 10,375 \$	- \$ - \$		10,375 10,375
Accounts payable Accounts payable		1,677,564 1,677,564	1,002,592 1,002,592		2,680,156 2,680,156
(including related parties) (including related parties)	\$ \$	1,687,939 \$ 1,687,939 \$	1,002,592 \$ 1,002,592 \$		2,690,531 2,690,531

(26) Operating revenue (26) Operating revenue (26) Operating revenue

		Years ended December 31, Years ended December 31,
		2015 2015	2014 2014
Construction revenues Construction revenues	\$ \$	8,030,232 \$ 8,030,232 \$	10,148,543 10,148,543
Rental revenues Rental revenues		356,161 356,161	369,454 369,454
Service concession revenue Service concession revenue
-Operating service revenue -Operating service revenue		373,279 373,279	370,142 370,142
Other revenues Other revenues		3,368 3,368	4,071 4,071
	\$ \$	8,763,040 \$ 8,763,040 \$	10,892,210 10,892,210

(27) Other income (27) Other income

	Years ended December 31,
	2015	2014
~48~ ~48~ Interest income	\$ 7,572 \$	12,267
Dividend income	134,112	209,456
Others	126,602	139,293
	\$ 268,286 \$	361,016

(28) Other gains and losses (28) Other gains and losses (28) Other gains and losses

(29) Finance costs (29) Finance costs (29) Finance costs

	Years ended December 31, Years ended December 31,
		2015 2015	2014 2014
Net currency exchange gain Net currency exchange gain	\$ \$	14,676 \$ 14,676 \$	22,704 22,704
Net gain on financial assets at fair value Net gain on financial assets at fair value
through profit or loss through profit or loss		445 445	447 447
Loss on disposal of property, plant and equipment Loss on disposal of property, plant and equipment
(including investment property) (including investment property)	( (	4,307) ( 4,307) (	732) 732)
Impairment loss on financial assets Impairment loss on financial assets		- ( - (	11,814) 11,814)
Others Others		2,671 ( 2,671 (	2,692) 2,692)
	\$ \$	13,485 \$ 13,485 \$	7,913 7,913

	Years ended December 31, Years ended December 31,
	2015 2015		2014 2014
Interest expense: Interest expense:
Bank borrowings Bank borrowings	\$ \$	91,341 \$ 91,341 \$	82,580 82,580
Commercial paper Commercial paper		30,373 30,373	39,537 39,537
Ordinary bond Ordinary bond		123,953 123,953	126,138 126,138
Endorsement and guarantee Endorsement and guarantee		36,345 36,345	27,289 27,289
Others Others		1,701 1,701	918 918
	\$ \$	283,713 \$ 283,713 \$	276,462 276,462

(30) Finance costs (30) Expenses by nature

Year ended December 31, 2014 ~49~ ~49~
Total

575,184
19,740
10,378
28,901
634,203
117,069
61,253

	Year ended December 31, 2015
	Operating costs	Operating expenses	Total
Employee benefit expense
Wages and salaries	\$ 1,351 \$	484,465 \$	485,816
Labor and health insurance fees	-	17,208	17,208
Pension costs	-	9,813	9,813
Other employee benefit expense	-	29,336	29,336
	\$ 1,351 \$	540,822 \$	542,173
Depreciation	\$ 85,788 \$	27,687 \$	113,475
Amortization	\$ 61,253	\$ -	\$ 61,253

A. According to the Articles of Incorporation of the Company, when distributing earnings, the Company shall distribute bonus to the employees and pay remuneration to the directors and

supervisors that account for at least 2% and 3%, respectively, of the total distributed amount. meeting in 2016.
were recognized in salary expenses. employees' remuneration will be distributed in the form of cash. LQ DJUHHPHQW ZLWK WKRVH DPRXQWV UHFRJQLVHG LQ SUR¿W RU ORVV IRU website of the Taiwan Stock Exchange.'

The employees' compensation and supervisors' and directors' remuneration were accrued EDVHG RQ WKH SHUFHQWDJH DV SUHVFULEHG LQ WKH &RPSDQ\¶V \$UWLFOHV RI ,QFRUSRUDWLRQ RI SUR¿W of current year distributable for the year ended December 31, 2015. The distributed amounts resolved by the Board of Directors were in agreement with the accrued amounts. The

Financial Information

(31) Income tax (31) Income tax

A. Income tax expense A. Income tax expense

(a) Components of income tax expense: (a) Components of income tax expense:

	Years ended December 31,
		2015	2014
Current tax:
Current tax on profits for the year	(\$	23,311) (\$	12,407)
Additional 10% tax on undistributed earnings		82,522	45,978
Under (over) provision of prior period's income tax		11,785 (	1,619)
Land value increment tax recognized in income
tax for the year		138,254	70,218
Total current tax		209,250	102,170
Deferred tax:
Origination and reversal of temporary differences		-	-
Income tax expense	\$	209,250 \$	102,170

E? 5HFRQFLOLDWLRQ EHWZHHQ LQFRPH WD[ H[SHQVH DQG DFFRXQWLQJ SUR¿W (b) Reconciliation between income tax expense and accounting profit: (b) Reconciliation between income tax expense and accounting profit:

B. According to Act for Promotion of Private Participation in Infrastructure Projects, details of the Company's investment tax credits and unrecognized deferred tax assets are as follows: B. According to Act for Promotion of Private Participation in Infrastructure Projects, details of the Company's investment tax credits and unrecognized deferred tax assets are as follows: B. According to Act for Promotion of Private Participation in Infrastructure Projects, details of the Company's investment tax credits and unrecognized deferred tax assets are as follows:

	Years ended December 31, Years ended December 31,
~51~		2015 2015	2014 2014
Tax calculated based on profit before tax and Tax calculated based on profit before tax and \$ statutory tax rate statutory tax rate	\$	415,999 \$ 415,999 \$	425,151 425,151
Effects recognized from adjustments under tax Effects recognized from adjustments under tax ( regulations regulations	(	380,099) ( 380,099) (	403,988) 403,988)
Additional 10% tax on undistributed earnings Additional 10% tax on undistributed earnings		82,522 82,522	45,978 45,978
Effect from investment tax credits Effect from investment tax credits (	(	59,211) ( 59,211) (	33,570) 33,570)
Prior year income tax under (over) estimation Prior year income tax under (over) estimation		11,785 ( 11,785 (	1,619) 1,619)
Land value increment tax Land value increment tax		138,254 138,254	70,218 70,218
Income tax expense \$ Income tax expense	\$	209,250 \$ 209,250 \$	102,170 102,170

C.The Company participated in 'National Taiwan University Chang Hsing and Shui Yuan BOT Dorms', which was handled and assessed as major infrastructure by the Ministry of Education. Thus, in accordance with 'Regulations Governing Application for Exemption in from Profit-seeking Enterprise Income Tax by Private Institutions Participating in Public Infrastructure Projects', the Company is entitled to the income tax exemption for 5 consecutive years (ends in December 2014). C.The Company participated in 'National Taiwan University Chang Hsing and Shui Yuan BOT Dorms', which was handled and assessed as major infrastructure by the Ministry of Education. Thus, in accordance with 'Regulations Governing Application for Exemption in from Profit-seeking Enterprise Income Tax by Private Institutions Participating in Public Infrastructure Projects', the Company is entitled to the income tax exemption for 5 consecutive years (ends in December 2014). C. The Company participated in 'National Taiwan University Chang Hsing and Shui Yuan BOT Dorms', which was handled and assessed as major infrastructure by the Ministry of Education. Thus, in accordance with 'Regulations Governing Application for Exemption in from Profit-seeking Enterprise Income Tax by Private Institutions Participating in Public Infrastructure Projects', the Company is entitled to the income tax exemption for 5 consecutive years (ends in December 2014).

December 31, 2015 December 31, 2015
		Unrecognised Unrecognised	Tax credit of investment Tax credit of investment
Qualifying items Qualifying items	Unused tax credits Unused tax credits	deferred tax assets deferred tax assets	usable until usable until
Investment Investment	\$ \$ 21,578 \$	21,578 \$ 21,578 21,578	2016 2016
December 31, 2014 December 31, 2014
		Unrecognised Unrecognised	Tax credit of investment Tax credit of investment
Qualifying items Qualifying items	Unused tax credits Unused tax credits	deferred tax assets deferred tax assets	usable until usable until
Investment Investment	\$ \$ 77,883 \$	77,883 \$ 77,883 77,883	2016 2016

D. As of December 31, 2015, the Company's income tax returns through 2013 have been assessed and approved by the Tax Authority D. As of December 31, 2015, the Company's income tax returns through 2013 have been assessed and approved by the Tax Authority D. As of December 31, 2015, the Company's income tax returns through 2013 have been assessed and approved by the Tax Authorit

E. Unappropriated retained earnings: E. Unappropriated retained earnings: E. Unappropriated retained earnings:

F. As of December 31, 2015 and 2014, the balance of the imputation tax credit account was \$53,573 and \$9,524, respectively. The creditable tax rate was 1.81% for 2014 and is estimated to be 3.19% for 2015. The tax credits to be allocated to the stockholders are calculated based on the balance of the imputation tax credit account on the day of distribution of dividends. Therefore, the creditable tax rate applicable to the stockholders for the appropriation of earnings generated in and after 1998 shall be adjusted to take into account the tax credits that might incur under the income tax laws up to the distribution date of dividends or earnings. (32) Earnings per share F. As of December 31, 2015 and 2014, the balance of the imputation tax credit account was \$53,573 and \$9,524, respectively. The creditable tax rate was 1.81% for 2014 and is estimated to be 3.19% for 2015. The tax credits to be allocated to the stockholders are calculated based on the balance of the imputation tax credit account on the day of distribution of dividends. Therefore, the creditable tax rate applicable to the stockholders for the appropriation of earnings generated in and after 1998 shall be adjusted to take into account the tax credits that might incur under the income tax laws up to the distribution date of dividends or earnings. (32) Earnings per share F. As of December 31, 2015 and 2014, the balance of the imputation tax credit account was \$53,573 and \$9,524, respectively. The creditable tax rate was 1.81% for 2014 and is estimated to be 3.19% for 2015. The tax credits to be allocated to the stockholders are calculated based on the balance of the imputation tax credit account on the day of distribution of dividends. Therefore, the creditable tax rate applicable to the stockholders for the appropriation of earnings generated in and after 1998 shall be adjusted to take into account the tax credits that might incur under the income tax laws up to the distribution date of dividends or earnings. (32) Earnings per share

	December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014
Earnings generated in and after 1998	\$ 3,508,400	\$ 2,854,738
Earnings generated in and after 1998	\$ 3,508,400	\$ 2,854,738

	Year ended December 31, 2015 Year ended December 31, 2015
		Weighted average
		Weighted average number of ordinary	Earnings
		number of ordinary shares outstanding	Earnings per share
Basic earnings per share	Amount after tax	shares outstanding (shares in thousands) (shares in thousands)	per share (in dollars) (in dollars)
Basic earnings per share Profit attributable to ordinary shareholders Profit attributable to ordinary shareholders	Amount after tax \$ 2,237,800 \$ 2,237,800	1,622,671 1,622,671	\$ 1.38 \$ 1.38
Diluted earnings per share Diluted earnings per share
Profit attributable to ordinary shareholders Profit attributable to ordinary shareholders	\$ 2,237,800 \$ 2,237,800	1,622,671 1,622,671
Assumed conversion of all dilutive Assumed conversion of all dilutive
potential ordinary shares potential ordinary shares
Employees'compensations Employees'compensations	-	- 27,220 27,220
Profit attributable to ordinary shareholders Profit attributable to ordinary shareholders
plus assumed conversion of all dilutive plus assumed conversion of all dilutive
potential ordinary shares potential ordinary shares	\$ 2,237,800 \$ 2,237,800	1,649,891 1,649,891	\$ 1.36 \$ 1.36
		Year ended December 31, 2014
		Weighted average
		number of ordinary	Earnings
		shares outstanding	per share
Basic earnings per share		Amount after tax (shares in thousands) (in dollars)

Profit attributable to ordinary shareholders	\$ 2,398,718	1,586,268	\$ 1.51
Diluted earnings per share
Profit attributable to ordinary shareholders	\$ 2,398,718	1,586,268
Assumed conversion of all dilutive
potential ordinary shares
Employees' bonus		- 3,510
Profit attributable to ordinary shareholders	~53~
~53~ plus assumed conversion of all dilutive potential ordinary shares	\$ 2,398,718	1,589,778	\$ 1.51

For the years ended December 31,

(33) Non-cash transactions (33) Non-cash transactions

,QYHVWLQJ DQG ¿QDQFLQJ DFWLYLWLHV ZLWK QR FDVK ÀRZ HIIHFWV Investing and financing activities with no cash flow effects:

Prince Housing & Development Corp. Annual Report 2015 Company had no material transaction, please refer to Note 13 for related information.

	For the years ended December 31,
	2015	2014
1.Investment property reclassified to land held for	\$	\$
construction site	-	612,189
2.Investment property reclassified to buildings and	\$	\$
land held for sale	-	2,512
3.Buildings and land held for sale reclassified to	\$	\$
property, plant and equipment	-	106,249
4.Land held for construction site reclassfied to	\$	\$
investment property	62,056	-
5.Available-for-sale financial assets – non-current,	\$	\$
acquired from combinations	2,186	-
6.Financial assets measured at cost – non-current,	\$	\$
acquired from combinations	11,486	-

5(/\$7('3\$57<75\$16\$&7,216 7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and their relationship with the Company (1) Names of related parties and their relationship with the Company

(2) Significant related party transactions and balances

Names of related parties	Relationship with the Company
Cheng-Shi Investment Holdings Co., Ltd. (CSIHC)	The Company's subsidiary
Prince Property Management Consulting Co., Ltd. (PPMCC)	The Company's subsidiary
Dong-Feng Enterprises Co., Ltd.	The Company's subsidiary
~54~ Time Square International Co., Ltd.	The Company's subsidiary
Prince Industrial Co., Ltd.	The Company's subsidiary
Prince Real Estate Co., Ltd. (Prince Real Estate)	The Company's subsidiary
Jin Yi Xing Plywood Co., Ltd. (Jin Yi Xing)	The Company's subsidiary
The Splendor Hotel Taichung (The Splendor)	The Company's subsidiary
Ta-Chen Construction & Engineering Corp. (Ta-Chen Construction & Engineering)	The subsidiary of CSIHC
Prince Utility Co., Ltd. (Prince Utility)	The subsidiary of CSIHC
Cheng-Shi Construction Co., Ltd. (Cheng-Shi Construction)	The subsidiary of CSIHC
Prince Security Co., Ltd. (Prince Security)	The subsidiary of PPMCC
Prince Apartment Management Maintain Co., Ltd. (Prince Apartment)	The subsidiary of PPMCC
Uni-President Development Corp.	The Company's associates
Tainan Spinning Co., Ltd.	The Company's other related party
President Chain Store Corporation	The Company's other related party
Chen Kao-Hui	The Company's Chairman
Hsieh, Ming-Fan	The Company's General Manager

)RU RWKHU UHODWHG SDUWLHV RYHU ZKLFK WKH &RPSDQ\ H[HUFLVHV VLJQL¿FDQW LQÀXHQFH EXW ZLWK ZKLFK For other related parties over which the Company exercises significant influence but with which the

A. Sales of goods (a) Rental income: A.Sales of goods (a)Rental income:

~55~ (a) Details of the Company's subcontracting to related parties and its purchases from related

Rent is determined by mutual agreements and is collected monthly. Rent is determined by mutual agreements and is collected monthly. B. Purchases B.Purchases (a) Details of the Company's subcontracting to related parties and its purchases from related

	Years ended December 31,
	2015	2014
- Other related parties	\$ 47,334 \$	46,206
- Subsidiaries	3,115	1,630
	\$ 50,449 \$	47,836

parties for the years ended December 31, 2015 and 2014 are as follows: parties for the years ended December 31, 2015 and 2014 are as follows:

Note:On August 3, 2015, the Company purchased the land of Ren Wu New Hougang West Section No. 52, etc. from Jin Yi Xing. The total purchase amount was \$829,021 and Note:On August 3, 2015, the Company purchased the land of Ren Wu New Hougang West Section No. 52, etc. from Jin Yi Xing. The total purchase amount was \$829,021 and obligation receivable was used to offset partial payment.

obligation receivable was used to offset partial payment. The Company subcontracted building construction and utilities engineering to related parties, Ta-Chen Construction Company, Prince Utility Company and Chen-Shi Construction Company. Under those subcontracts, acceptance would be done according to the progress of the construction and engineering; payments would be made based on agreed-upon terms of the two parties. Purchases from related parties, Prince Security Company, BioSun Technology Company and Prince Apartment, are based on negotiated terms because the related purchase transactions are unique and not available from third parties. The Company subcontracted building construction and utilities engineering to related parties, Ta-Chen Construction Company, Prince Utility Company and Chen-Shi Construction Company. Under those subcontracts, acceptance would be done according to the progress of the construction and engineering; payments would be made based on agreed-upon terms of the two parties. Purchases from related parties, Prince Security Company, BioSun Technology Company and Prince Apartment, are based on negotiated terms because the related purchase transactions are unique and not available from third parties.

Construction subcontracting: Purchases of services: Purchases of goods: Land held for construction site:

	Years ended December 31,
	2015	2014
Construction subcontracting:
炼Subsidiaries	\$ 1,275,486 \$	1,254,029
Purchases of services:
炼Subsidiaries	10,828	28,126
Purchases of goods:
炼Subsidiaries	13,232	14,837
Land held for construction site:
炼Subsidiaries (Note)	829,021	-
	\$ 2,128,567 \$	1,296,992

(b)As of December 31, 2015 and 2014, unsettled construction contracts that were signed by the Company and Chen-Shi Construction Company totaled \$1,709,505 and \$1,623,540, respectively; payments already made for those contracts amounted to \$232,839 and \$315,971, respectively; and future payments required under those contracts amounted to \$1,476,666 and (b) As of December 31, 2015 and 2014, unsettled construction contracts that were signed by the Company and Chen-Shi Construction Company totaled \$1,709,505 and \$1,623,540, respectively; payments already made for those contracts amounted to \$232,839 and \$315,971, respectively; and future payments required under those contracts amounted to

\$1,307,569, respectively. \$1,476,666 and \$1,307,569, respectively.

(c)As of December 31, 2015 and 2014, unsettled construction contracts that were signed by the Company and Ta-Chen Construction Company totaled \$259,621 and \$745,320, respectively; (c)As of December 31, 2015 and 2014, unsettled construction contracts that were signed by the Company and Ta-Chen Construction Company totaled \$259,621 and \$745,320,

respectively; payments already made for those contracts amounted to \$121,373 and \$20,770, respectively; and future payments required under those contracts amounted to \$138,248 and \$724,550, respectively.

(d) As of December 31, 2015 and 2014, unsettled construction contracts that were signed by the Company and Prince Utility Company totaled \$489,411 and \$575,521, respectively; payments already made for those contracts amounted to \$24,500 and \$78,750, respectively; and future payments required under those contracts amounted to \$464,911 and \$496,771, respectively. payments required under those contracts amounted to \$464,911 and \$496,771, respectively.
C. Prepayment for land purchases (included in "Inventories") C.Prepayment for land purchases (included in "Inventories")
D.Other assets D. Other assets
(a) On June 20, 2006, the Company and China Metal Products Co., Ltd. ("A party") jointly signed a creditor's rights transfer contract with Amida Trustlink Assets Management Co., Ltd. ("B party"). Under the contract, the Company and A party should pay \$2,100,000 each (totaling \$4,200,000) to jointly acquire whole creditor's rights of mortgages, security interests and other dependent claims (collectively referred herein as the creditor's rights) on the Splendor Hotel Taichung Building, and each bears 50% rights and obligations of this acquisition; when all creditor's rights of this object turn into property rights, the Company and A party should pay B party totaling \$1,000,000 as the cost and reward of B party for it is entrusted with the task to help turn the creditor's rights as stated above into property rights, but any excess cost over \$1,000,000 if incurred on this task shall be borne by B party on its own; the Company should pay B party \$300,000 before June 30, 2006, and the Company and A party should jointly issue a promissory note of \$1,800,000 to B party on the signing date; payment should be done before July 15, 2006. The title to the creditor's rights as stated above had been transferred to the Company and A party on August 2, 2006. The acquisition price of the creditor's rights amounted to \$5,200,000, which the Company and A party bear 50% of the price each. The Company had paid its share. Furthermore, the Company and A party jointly established the Splendor Hotel Taichung and \$450,000 invested in the share capital was drawn down from the abovementioned price of the creditor's rights. (a) On June 20, 2006, the Company and China Metal Products Co., Ltd. ("A party") jointly signed a creditor's rights transfer contract with Amida Trustlink Assets Management Co., Ltd. ("B party"). Under the contract, the Company and A party should pay \$2,100,000 each (totaling \$4,200,000) to jointly acquire whole creditor's rights of mortgages, security interests and other dependent claims (collectively referred herein as the creditor's rights) on the Splendor Hotel Taichung Building, and each bears 50% rights and obligations of this acquisition; when all creditor's rights of this object turn into property rights, the Company and A party should pay B party totaling \$1,000,000 as the cost and reward of B party for it is entrusted with the task to help turn the creditor's rights as stated above into property rights, but any excess cost over \$1,000,000 if incurred on this task shall be borne by B party on its own; the Company should pay B party \$300,000 before June 30, 2006, and the Company and A party should jointly issue a promissory note of \$1,800,000 to B party on the signing date; payment should be done before July 15, 2006. The title to the creditor's rights as stated above had been transferred to the Company and A party on August 2, 2006. The acquisition price of the creditor's rights amounted to \$5,200,000, which the Company and A party bear 50% of the price each. The Company had paid its share. Furthermore, the Company and A party jointly established the Splendor Hotel Taichung and \$450,000 invested in the share capital was drawn down from the abovementioned price of the creditor's rights.
(b) The Company and China Metal Products Co., Ltd. jointly established The Splendor Hotel Taichung ("A party") by contributing 50% of the investment each. On November 1, 2006, A party signed a certain assets transfer contract with The Splendor Hotel Chunggang ("B party"). Under the contract, A party should pay B party for employees' services, goods purchases and taxes. The above payments of \$352,310 required of A party were made from the share capital of its initial establishment. (b) The Company and China Metal Products Co., Ltd. jointly established The Splendor Hotel Taichung ("A party") by contributing 50% of the investment each. On November 1, 2006, A party signed a certain assets transfer contract with The Splendor Hotel Chunggang ("B party"). Under the contract, A party should pay B party for employees' services, goods purchases and taxes. The above payments of \$352,310 required of A party were made from the share capital of its initial establishment.

	December 31, 2015	December 31, 2014
Subsidaries	\$ -	\$ 260,727

The Company's creditor's rights above amounting to \$2,375,000 were originally receivable from B party. After B party and A party signed a certain assets transfer contract in December, 2006, the creditor's right to the above receivables were transferred to A party. And A party repaid \$1,800,000 to the Company in June 2007. As of December 31, 2015 and 2014, the Company's creditor's rights receivable from A party both amounted to \$575,000. The Company's creditor's rights above amounting to \$2,375,000 were originally receivable from B party. After B party and A party signed a certain assets transfer contract in December, 2006, the creditor's right to the above receivables were transferred to A party. And A party repaid \$1,800,000 to the Company in June 2007. As of December 31, 2015 and 2014, the Company's creditor's rights receivable from A party both amounted to \$575,000.

are as follows: follows: 2006 \$ 225,000 follows: 2006 \$ 225,000 follows: 2006 \$ 225,000 2008 105,000 2006 \$ 225,000 2008 105,000 2009 615,000 2008 105,000 2009 615,000
amounted to \$0 and \$465,778, respectively. amounted to \$0 and \$465,778, respectively. Yi Xing amounted to \$0 and \$465,778, respectively. (d) On January 16, 2007, the Company acquired 99.65% ownership in Jin Yi Xing by cash. As of amounted to \$0 and \$465,778, respectively. amounted to \$0 and \$465,778, respectively. amounted to \$0 and \$465,778, respectively. received the payment for pre-sale of Prince Cloud on behalf of Prince Real Estate Co., Ltd.
(shown as other payables related parties), respectively. (shown as other payables – related parties), respectively. \$117,450 (shown as other payables – related parties), respectively. (shown as other payables – related parties), respectively. (shown as other payables – related parties), respectively. E. Accounts payable (shown as other payables – related parties), respectively. E. Accounts payable
E. Accounts payable E. Accounts payable E. Accounts payable E. Accounts payable

F. Rent expense F. Rent expense F. Rent expense F. Rent expense

(d) On January 16, 2007, the Company acquired 99.65% ownership in Jin Yi Xing by cash. As of December 31, 2015 and 2014, the Company's creditor's rights receivable from Jin Yi Xing (d) On January 16, 2007, the Company acquired 99.65% ownership in Jin Yi Xing by cash. As of December 31, 2015 and 2014, the Company's creditor's rights receivable from Jin Yi Xing (d) On January 16, 2007, the Company acquired 99.65% ownership in Jin Yi Xing by cash. As of December 31, 2015 and 2014, the Company's creditor's rights receivable from Jin December 31, 2015 and 2014, the Company's creditor's rights receivable from Jin Yi Xing December 31, 2015 and 2014, the Company's creditor's rights receivable from Jin Yi Xing (e) As of December 31, 2015, the Company paid for the construction of Prince Cloud and (e) As of December 31, 2015, the Company paid for the construction of Prince Cloud and

(c) Details of the Company's capital investment in The Splendor Hotel Taichung in the past (c) Details of the Company's capital investment in The Splendor Hotel Taichung in the past are as (c) Details of the Company's capital investment in The Splendor Hotel Taichung in the past are as 2006 \$ 225,000

(e) As of December 31, 2015, the Company paid for the construction of Prince Cloud and received the payment for pre-sale of Prince Cloud on behalf of Prince Real Estate Co., Ltd. which amounted to \$60,680 (shown as other receivables – related parties) and \$117,450 (e) As of December 31, 2015, the Company paid for the construction of Prince Cloud and received the payment for pre-sale of Prince Cloud on behalf of Prince Real Estate Co., Ltd. which amounted to \$60,680 (shown as other receivables – related parties) and \$117,450 (e) As of December 31, 2015, the Company paid for the construction of Prince Cloud and received the payment for pre-sale of Prince Cloud on behalf of Prince Real Estate Co., Ltd. which amounted to \$60,680 (shown as other receivables – related parties) and (e) As of December 31, 2015, the Company paid for the construction of Prince Cloud and received the payment for pre-sale of Prince Cloud on behalf of Prince Real Estate Co., Ltd. which amounted to \$60,680 (shown as other receivables – related parties) and \$117,450 received the payment for pre-sale of Prince Cloud on behalf of Prince Real Estate Co., Ltd. which amounted to \$60,680 (shown as other receivables – related parties) and \$117,450 which amounted to \$60,680 (shown as other receivables – related parties) and \$117,450 December 31, 2015 December 31, 2014

G. The information on endorsement and guarantees and financial support commitment among Associates \$ 29,349 \$ 24,868 G. The information on endorsement and guarantees and financial support commitment among Associates \$ 29,349 \$ 24,868 G. The information on endorsement and guarantees and financial support commitment among Associates \$ 29,349 \$ 24,868 G. The information on endorsement and guarantees and financial support commitment among * 7KH LQIRUPDWLRQ RQ HQGRUVHPHQW DQG JXDUDQWHHV DQG ¿QDQFLDO VXSSRUW FRPPLWPHQW DPRQJ H. Certain short and long-term borrowings of the Company were guaranteed by its Chairman G. The information on endorsement and guarantees and financial support commitment among H. Certain short and long-term borrowings of the Company were guaranteed by its Chairman and

2006 2006 2009		\$ \$	225,000 225,000 615,000
2008 2009 2008 2008 2010			105,000 615,000 105,000 105,000 30,000
2009 2010 2009 2009 Total		\$	615,000 30,000 615,000 615,000 975,000
2010 Total 2010 2010		\$	30,000 975,000 30,000 30,000
(d) On January 16, 2007, the Company acquired 99.65% ownership in Jin Yi Xing by cash. As of Total (d) On January 16, 2007, the Company acquired 99.65% ownership in Jin Yi Xing by cash. As of Total Total	December 31, 2015 and 2014, the Company's creditor's rights receivable from Jin Yi Xing	\$ \$ \$	975,000 975,000 975,000

	\$ 334,393 \$	398,718
Subsidiaries E. Accounts payable E. Accounts payable Subsidiaries	\$ 334,393 \$	398,718 December 31, 2015 December 31, 2014
F. Rent expense Subsidiaries F. Rent expense	December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 \$ 334,393 \$	398,718
Subsidiaries Subsidiaries	\$ \$ 334,393 \$ 334,393 \$	398,718 398,718

	Years ended December 31, Years ended December 31,
	2015 Years ended December 31, 2015	2014 2014
Associates Associates	\$ Years ended December 31, Years ended December 31, 29,349 \$ \$ 2015 29,349 \$ 2015 2015	24,868 2014 24,868 2014 2014

2015 2014 Salaries and other short-term employee benefits \$ 140,260 \$ 150,972 Termination benefits - - Post-employment benefits - - Other long-term benefits - - Years ended December 31, 2015 2014 Salaries and other short-term employee benefits \$ 140,260 \$ 150,972 Termination benefits - - Post-employment benefits - - Other long-term benefits - - Years ended December 31, 2015 2014 Salaries and other short-term employee benefits \$ 140,260 \$ 150,972 Termination benefits - - Post-employment benefits - - Other long-term benefits - - Share-based payments - 35,403 Years ended December 31, 2015 2014 Salaries and other short-term employee benefits \$ 140,260 \$ 150,972 Termination benefits - - Post-employment benefits - - Other long-term benefits - - Share-based payments - 35,403 \$ 140,260 \$ 186,375 Years ended December 31, 2015 2014 Salaries and other short-term employee benefits \$ 140,260 \$ 150,972 Termination benefits - - Post-employment benefits - - Other long-term benefits - - Share-based payments - 35,403 \$ 140,260 \$ 186,375 Years ended December 31,

F. Rent expense F. Rent expense

related parties is described in Note 9(1). related parties is described in Note 9(1). related parties is described in Note 9(1).
related parties is described in Note 9(1). related parties is described in Note 9(1). related parties is described in Note 9(1). H. Certain short and long-term borrowings of the Company were guaranteed by its Chairman and H. Certain short and long-term borrowings of the Company were guaranteed by its Chairman and General Manager. and General Manager. General Manager.
H. Certain short and long-term borrowings of the Company were guaranteed by its Chairman and H. Certain short and long-term borrowings of the Company were guaranteed by its Chairman and General Manager. (3) Key management compensation (3) Key management compensation (3) Key management compensation

**3/('*('\$66(76** 8. PLEDGED ASSETS

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

A. Summary of endorsements and guarantees provided by the Company to subsidiaries is as follows: ? 6XPPDU\ RI HQGRUVHPHQWV DQG JXDUDQWHHV DQG ¿QDQFLDO VXSSRUW FRPPLWPHQWV LV DV IROORZV COMMITMENTS (1)Summary of endorsements and guarantees and financial support commitments is as follows: (1)Summary of endorsements and guarantees and financial support commitments is as follows:
December 31, 2015 December 31, 2014 A. Summary of endorsements and guarantees provided by the Company to subsidiaries is as follows: A. Summary of endorsements and guarantees provided by the Company to subsidiaries is as follows: A. Summary of endorsements and guarantees provided by the Company to subsidiaries is as follows:

follows: B. Summary of endorsements and guarantees provided by subsidiaries to the Company is as B. Summary of endorsements and guarantees provided by subsidiaries to the Company is as B. Summary of endorsements and guarantees provided by subsidiaries to the Company is as

COMMITMENTS (1)Summary of endorsements and guarantees and financial support commitments is as follows: **6,1,),&\$17 &217,1(17/,\$%,/,7,(6\$1' 815(&2*1,6(' &2175\$&7 &200,70(176** 9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT \$ 19,757,922 \$ 18,740,169 9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS \$ 19,757,922 \$ 18,740,169

8. PLEDGED ASSETS 8. PLEDGED ASSETS Pledged asset	December 31, 2015	December 31, 2014	Purpose
The Company's assets pledged as collateral are as follows: Demand deposits, certificate of deposit and The Company's assets pledged as collateral are as follows:	\$ 2,487,628 \$		3,113,384 To obtain a higher credit for client, performance
checking deposit (shown as "other financial Pledged asset	December 31, 2015	December 31, 2014	guarantee, construction performance guarantee, Purpose
Pledged asset assets - current" and "other financial assets - Demand deposits, certificate of deposit and	December 31, 2015 \$ 2,487,628 \$	December 31, 2014	Purpose short-term and long-term borrowings. 3,113,384 To obtain a higher credit for client, performance
Demand deposits, certificate of deposit and non-current") checking deposit (shown as "other financial	\$ 2,487,628 \$		3,113,384 To obtain a higher credit for client, performance guarantee, construction performance guarantee,
checking deposit (shown as "other financial Financial assets at fair value through profit or loss assets - current" and "other financial assets -	77,992		guarantee, construction performance guarantee, 77,547 Long-term borrowings short-term and long-term borrowings.
assets - current" and "other financial assets - Land held for construction non-current")	6,974,863		short-term and long-term borrowings. 4,762,059 Short-term borrowings, notes and bills
non-current") Financial assets at fair value through profit or loss	77,992		payable and long-term borrowings 77,547 Long-term borrowings
Financial assets at fair value through profit or loss Construction in progress Land held for construction	77,992 2,133,843 6,974,863		77,547 Long-term borrowings 1,918,634 Short-term borrowings, notes and bills 4,762,059 Short-term borrowings, notes and bills
Land held for construction	6,974,863		4,762,059 Short-term borrowings, notes and bills payable and long-term borrowings payable and long-term borrowings payable and long-term borrowings
Available-for-sale financial assets Construction in progress Construction in progress	1,028,798 2,133,843 2,133,843		1,033,280 Short-term borrowings, notes and bills payable 1,918,634 Short-term borrowings, notes and bills 1,918,634 Short-term borrowings, notes and bills
Financial assets carried at cost	575,426		575,426 Short-term borrowings, notes and bills payable payable and long-term borrowings payable and long-term borrowings
Investments accounted for under equity method Available-for-sale financial assets Available-for-sale financial assets	1,582,560 1,028,798 1,028,798		1,120,379 Short-term borrowings, notes and bills payable 1,033,280 Short-term borrowings, notes and bills payable 1,033,280 Short-term borrowings, notes and bills payable
Land Financial assets carried at cost Financial assets carried at cost	91,782 575,426 575,426		91,782 Short-term borrowings, notes and bills 575,426 Short-term borrowings, notes and bills payable 575,426 Short-term borrowings, notes and bills payable
Investments accounted for under equity method Investments accounted for under equity method	1,582,560 1,582,560		payable and long-term borrowings 1,120,379 Short-term borrowings, notes and bills payable 1,120,379 Short-term borrowings, notes and bills payable
Buildings Land Land	217,972 91,782 91,782		227,274 Short-term borrowings, notes and bills 91,782 Short-term borrowings, notes and bills 91,782 Short-term borrowings, notes and bills
			payable and long-term borrowings payable and long-term borrowings payable and long-term borrowings
Investment property Buildings Buildings	4,012,058 217,972 217,972		4,772,476 Short-term borrowings, notes and bills 227,274 Short-term borrowings, notes and bills 227,274 Short-term borrowings, notes and bills
			payable and long-term borrowings payable and long-term borrowings payable and long-term borrowings
Other miscellaneous assets (shown as "Other non Investment property Investment property	4,012,058 4,012,058		4,772,476 Short-term borrowings, notes and bills 4,772,476 Short-term borrowings, notes and bills
current assets-others")	575,000		1,047,928 Long-term borrowings payable and long-term borrowings payable and long-term borrowings
Other miscellaneous assets (shown as "Other non	\$ 19,757,922 \$	18,740,169

	Total December 31, 2015 endorsement	December 31, 2015 Amount	Total December 31, 2014 endorsement	December 31, 2014 Amount
Name of company	Total Total amount	drawn	Total Total amount	drawn
The Splendor Hotel Taichung \$	endorsement endorsement 2,000,000 \$	Amount Amount 1,708,520 \$	endorsement endorsement 2,000,000 \$	Amount Amount 1,773,973
Name of company Name of company Ta-Chen Construction & Engineering Corp.	amount amount 1,900,000	drawn drawn -	amount amount 1,900,000	drawn drawn 160,256
The Splendor Hotel Taichung The Splendor Hotel Taichung \$	\$ 2,000,000 \$ \$ 2,000,000 \$ 3,900,000 \$	1,708,520 \$ 1,708,520 \$ 1,708,520 \$	2,000,000 \$ 2,000,000 \$ 3,900,000 \$	1,773,973 1,773,973 1,934,229
Ta-Chen Construction & Engineering Corp. Ta-Chen Construction & Engineering Corp.	1,900,000 1,900,000	- -	1,900,000 1,900,000	160,256 160,256
B. Summary of endorsements and guarantees provided by subsidiaries to the Company is as	\$ 3,900,000 \$ \$ 3,900,000 \$	1,708,520 \$ 1,708,520 \$	3,900,000 \$ 3,900,000 \$	1,934,229 1,934,229

~59~ ~59~ C. The accumulated operating losses of the subsidiary, The Splendor Hotel, had exceeded 50% of C. The accumulated operating losses of the subsidiary, The Splendor Hotel, had exceeded 50% of C. The accumulated operating losses of the subsidiary, The Splendor Hotel, had exceeded 50% of its paid-in capital and its current liabilities were greater than current assets. The Company ZDV FRPPLWWHG WR JLYH WKH 6SOHQGRU +RWHO ¿QDQFLDO VXSSRUW IRU LWV FRQWLQXLQJ RSHUDWLRQV IRU RQH \HDU IURP WKH GDWH RI WKH ¿QDQFLDO VXSSRUW OHWWHU

follows: follows: follows:	December 31, 2015		December 31, 2014
	Total December 31, 2015	December 31, 2015	Total December 31, 2014 December 31, 2014
	endorsement Total Total	Amount	endorsement Total Total	Amount
Name of company	amount endorsement endorsement	drawn Amount Amount	amount endorsement endorsement	drawn Amount Amount
Prince Real Estate Co., Ltd. Name of company Name of company	amount amount	\$ 2,500,000 \$ 2,086,198 \$ drawn drawn	- amount amount	\$ - drawn drawn
Dong-Feng Enterprises Co., Ltd. Prince Real Estate Co., Ltd. Prince Real Estate Co., Ltd.	1,810,889	1,810,889 \$ 2,500,000 \$ 2,086,198 \$ \$ 2,500,000 \$ 2,086,198 \$	1,810,889 - -	1,810,889 \$ - \$ -
Ta-Chen Construction & Engineering Corp. Dong-Feng Enterprises Co., Ltd. Dong-Feng Enterprises Co., Ltd.	927,889 1,810,889 1,810,889	- 1,810,889 1,810,889	927,889 1,810,889 1,810,889	- 1,810,889 1,810,889
Prince Utility Co., Ltd. Ta-Chen Construction & Engineering Corp. Ta-Chen Construction & Engineering Corp.	900,000 927,889 927,889	638,763 - -	900,000 927,889 927,889	638,763 - -
Jin Yi Xing Plywood Co., Ltd. Prince Utility Co., Ltd. Prince Utility Co., Ltd.	- 900,000 900,000	- 638,763 638,763	2,500,000 900,000 900,000	2,086,198 638,763 638,763
Jin Yi Xing Plywood Co., Ltd. Jin Yi Xing Plywood Co., Ltd.	- -	\$ 6,138,778 \$ 4,535,850 \$ 6,138,778 \$ 4,535,850 - -	2,500,000 2,500,000	2,086,198 2,086,198
C. The accumulated operating losses of the subsidiary, The Splendor Hotel, had exceeded 50% of		\$ 6,138,778 \$ 4,535,850 \$ 6,138,778 \$ 4,535,850 \$ 6,138,778 \$ 4,535,850 \$ 6,138,778 \$ 4,535,850

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

(4) Information on the commitments of the Company relating to financial support to related parties is

major facilities for one year from the handover day for the houses it sold. However, any damage to the houses caused by disasters, additions to the houses made by the buyers, or events that are not major facilities for one year from the handover day for the houses it sold. However, any damage to the houses caused by disasters, additions to the houses made by the buyers, or events that are

(5) On March 17, 2005, the Company ("A party") signed a contract with National Taiwan University ("B party") relating to the construction and operation of dormitories on Chang-Hsing St. and described in Note 7(2).(5) On March 17, 2005, the Company ("A party") signed a contract with National Taiwan University ("B party") relating to the construction and operation of dormitories on Chang-Hsing St. and

A. Under the contract, B party should be responsible for acquiring the ownership or land-use right for this project, and let A party use the land; A party must complete the construction within 3 years from the registration of the superficies, and may operate the dormitories for 44 years, collect dormitory rentals and use fees of other facilities from students, and should return the A. Under the contract, B party should be responsible for acquiring the ownership or land-use right for this project, and let A party use the land; A party must complete the construction ZLWKLQ \HDUV IURP WKH UHJLVWUDWLRQ RI WKH VXSHU¿FLHV DQG PD\ RSHUDWH WKH GRUPLWRULHV IRU 44 years, collect dormitory rentals and use fees of other facilities from students, and should

	December 31, 2015 December 31, 2014
Property, plant and equipment	\$	952 \$	322,248

B. A party should give B party a performance guarantee of \$60,000 for the construction on the signing date and \$30,000 for operations before the start of operation. As of December 31, 2015 B. A party should give B party a performance guarantee of \$60,000 for the construction on the signing date and \$30,000 for operations before the start of operation. As of December 31, 2015 and 2014, A party had provided performance guarantee with a guarantee letter issued by

(3) According to the sale contracts, the Company should provide warranty on the house structure and attributed to the Company is not included in the scope of warranty. (3) According to the sale contracts, the Company should provide warranty on the house structure and not attributed to the Company is not included in the scope of warranty.
described in Note 7(2). ? ,QIRUPDWLRQ RQ WKH FRPPLWPHQWV RI WKH &RPSDQ\ UHODWLQJ WR ¿QDQFLDO VXSSRUW WR UHODWHG SDUWLHV LV
Shui-Yuan Campus. The major terms of the contract are as follows: Shui-Yuan Campus. The major terms of the contract are as follows:
related assets to B party on the expiry of the contract. return the related assets to B party on the expiry of the contract.
and 2014, A party had provided performance guarantee with a guarantee letter issued by the bank, the bank, both amounting to \$30,000.
both amounting to \$30,000. based on 0.5% of dormitory rentals and use fees of other facilities collected from students. students.
D. Terms of restrictions for A party: D. Terms of restrictions for A party:
project should be at least 30%; project should be at least 30%;
25%; and current ratio (current assets/current liabilities) should be at least 100%;
liability/obligation or become an executed object of civil litigation. liability/obligation or become an executed object of civil litigation.
(6) On May 10, 2005, the Company ("A party") signed a contract with National Cheng Kung alumni hall. The major terms of the contract are as follows:
~60~ contract.

C. A party should pay B party land rentals from the registration of the superficies, according to the terms of the contract, and pay B party operating royalties from the third year of the operation, C. A party should pay B party land rentals from the registration of the superficies, according to the terms of the contract, and pay B party operating royalties from the third year of the operation, based on 0.5% of dormitory rentals and use fees of other facilities collected from

(a)The ratio of A party's own capital utilized in this project to total construction cost of this (a) The ratio of A party's own capital utilized in this project to total construction cost of this

(b)During the operation period, the ratio of shareholders' equity to total assets should be at least (b) During the operation period, the ratio of shareholders' equity to total assets should be at least 25%; and current ratio (current assets/current liabilities) should be at least 100%;

(c) All rights acquired by A party under the contract, except for other conditions specified in the contract and approved by B party, should not be transferred, leased, registered as a F? \$OO ULJKWV DFTXLUHG E\ \$ SDUW\ XQGHU WKH FRQWUDFW H[FHSW IRU RWKHU FRQGLWLRQV VSHFL¿HG LQ the contract and approved by B party, should not be transferred, leased, registered as a

University ("B party") relating to the construction and operation of student dormitories and

A. Under the contract, B party should be responsible for acquiring the ownership or land-use ULJKW IRU WKLV SURMHFW DQG OHW \$ SDUW\ XVH WKH ODQG E\ ZD\ RI UHJLVWUDWLRQ RI WKH VXSHU¿FLHV A party must obtain the user license within 3 years after the signing date, and may operate the student dormitories and motorcycle parking lots for 35 years from the start of operations and collect dormitory rentals and use fees of other facilities from students for 50 years from the start of construction, and should return the related assets to B party on the expiry of the

B. A party should give B party performance guarantee of \$50,000 for this project on the signing date, which will be returned in installment according to the contractual terms. As of December 31, 2015 and 2014, A party had provided performance guarantee with a guarantee letter issued by the bank, both amounting to \$20,000.
C. During the operation period, A party should pay B party dormitory operating royalties based on 2% of annual operating revenue of the dormitories and auxiliary facilities operating royalties based on 4% of annual operating revenue of the auxiliary facilities. A party should pay such operating royalties for prior year before the end of June every year. Further, DFFRUGLQJ WR WKH VXSHU¿FLHV FRQWUDFW VLJQHG E\ WKH WZR SDUWLHV \$ SDUW\ VKRXOG SD\ % SDUW\ ODQG UHQWDOV IURP WKH UHJLVWUDWLRQ RI VXSHU¿FLHV
' \$OO ULJKWV DFTXLUHG E\ \$ SDUW\ XQGHU WKH FRQWUDFW H[FHSW IRU RWKHU FRQGLWLRQV VSHFL¿HG LQ WKH contract and approved by B party, should not be transferred, leased, registered as a liability/ obligation or become an executed object of civil litigation.
(7) The Company signed a syndicated loan contract with 7 banks Mega International Commercial Bank as the lead bank for a credit line of \$2.16 billion. The syndicated loans include longterm (secured) loans and guarantee payments receivable (secured), which are used to fund the construction of dormitories in Changxing St. Campus and Shuiyuan Campus of National Taiwan 8QLYHUVLW\ 'XULQJ WKH ORDQ SHULRG WKH &RPSDQ\ VKRXOG PDLQWDLQ ¿QDQFLDO FRPPLWPHQWV VXFK as current ratio, liability ratio and interest coverage; those financial ratios/restrictions shall be reviewed at least once every year, based on the Company's audited annual parent company only ¿QDQFLDO VWDWHPHQWV ,I WKH &RPSDQ\ YLRODWHV WKH DERYH ¿QDQFLDO FRPPLWPHQWV LW VKDOO LPSURYH LWV ¿QDQFLDO SRVLWLRQ E\ FDSLWDO LQFUHDVH RU RWKHU ZD\V EHIRUH WKH HQG RI 2FWREHU RI WKH IROORZLQJ year from the year of violation; it would not be regarded as a default if the managing bank FRQ¿UPV WKDW LWV ¿QDQFLDO SRVLWLRQ KDV LPSURYHG FRPSOHWHO\ ,Q FDVH RI YLRODWLRQ LQWHUHVW RQ WKH ORDQV ZRXOG EH FKDUJHG DW WKH ORDQ UDWH VSHFL¿HG LQ WKH FRQWUDFW SOXV DGGLWLRQDO SHU DQQXP IURP WKH QRWL¿FDWLRQ GDWH RI WKH PDQDJLQJ EDQN WR WKH FRPSOHWLRQ GDWH RI ¿QDQFLDO LPSURYHPHQW or to the date the Company gains the relief from the consortium for its violation.
(8) The Company signed a loan contract with Mega International Commercial Bank for a credit line of \$785 million. The loans include long-term (secured) loans and guarantee payments receivable (secured), which are used to fund the construction of student dormitories and alumnus hall of 1DWLRQDO &KHQJ .XQJ 8QLYHUVLW\ 'XULQJ WKH ORDQ SHULRG WKH &RPSDQ\ VKRXOG PDLQWDLQ ¿QDQFLDO commitments such as current ratio, liability ratio and interest coverage; those financial ratios/ restrictions shall be reviewed at least once every year. Current ratio and liability ratio shall be UHYLHZHG EDVHG RQ WKH &RPSDQ\¶V DXGLWHG DQQXDO SDUHQW FRPSDQ\ RQO\ ¿QDQFLDO VWDWHPHQWV DQG interest coverage based on the Company's revenue and expenditure table for the related project. ,I WKH &RPSDQ\ YLRODWHV WKH DERYH ¿QDQFLDO FRPPLWPHQWV LW VKDOO LPSURYH LWV ¿QDQFLDO SRVLWLRQ by capital increase or other ways before the end of October of the following year from the year of YLRODWLRQ LW ZRXOG QRW EH UHJDUGHG DV D GHIDXOW LI WKH EDQN FRQ¿UPV WKDW LWV ¿QDQFLDO SRVLWLRQ KDV improved completely. In case of violation, interest on the loans would be charged at the loan rate VSHFL¿HG LQ WKH FRQWUDFW SOXV DGGLWLRQDO SHU DQQXP IURP WKH QRWL¿FDWLRQ GDWH RI WKH EDQN WR WKH FRPSOHWLRQ GDWH RI ¿QDQFLDO LPSURYHPHQW RU WR WKH GDWH WKH &RPSDQ\ REWDLQV D ZDLYHU IURP the bank for its violation.
(9) The Company signed a syndicated loan contract with 10 banks Bank of Taiwan Co., Ltd. as the lead bank for a credit line of \$2 billion. The syndicated loans are medium-term (secured) loans,

and are used for residential building construction cooperated by the Company and Taiwan Sugar Corporation ("TSC") on Guo--An Sec., Xitun District, Taichung City. Furthermore, the Company shall repay in full for the balance of unpaid principal on maturity date. However, when the buildings in the case are completed and sold or when handling buyer's household debt, borrower should repay the balance of used and unpaid principal for the syndicated loans with 70% of selling consideration.

Commercial Bank as the lead bank for a credit line of \$1.06 billion. The syndicated loans include medium-term (secured) loans and commercial paper guarantees, which were used for the purchase of 4 tracts of PingHsin Sections No. 694, 706, 708 and 709 in Taiping Dist., Taichung City and construction payment of residential buildings. Furthermore, the Company shall repay in full the

7KH &RPSDQ\ VLJQHG D V\QGLFDWHG ORDQ FRQWUDFW ZLWK ¿QDQFLDO LQVWLWXWLRQV 0HJD ,QWHUQDWLRQDO balance of unpaid principal on maturity date.
(11) On May 18, 2007, the Company signed a contract with Taiwan Sugar Corporation ("TSC") in performance guarantee with a guarantee letter of the bank as follows:

relation to cooperative construction of houses. According to the contract, TSC shall provide Lot No. 12-12, Guo-An Sec., Xitun District, Taichung City; the Company shall provide funding for those projects and repurchase houses and land allocated to TSC amounting to \$1,810,889 and shall bear all improvement fees of houses, public facilities and land, selling expenses, and other expenses or contributed expenses required under the decrees. The Company shall not ask for any FRPSHQVDWLRQ IRU SULFH ÀXFWXDWLRQV RU RWKHU UHDVRQV )XUWKHU XQGHU WKH FRQWUDFW WKH &RPSDQ\ shall give TSC performance guarantee amounting to \$181,090 on the signing date, which will be returned in installments according to the contractual terms. The Company had provided

(12) On January 20, February 10 and December 27, 2014, the Company signed a contract with Taiwan Sugar Corporation ("TSC") in relation to cooperative construction of houses. According to the contracts, TSC shall provide Taichung City Koan An Section No. 591-1, Tainan City Hou Guan Section No. 34 and Nanzi Dist., Kaohsiung City Nanzi 1st section No. 158, etc; the Company shall provide funding for those projects and repurchase houses and land allocated to TSC amounting to \$638,763, \$830,889 and \$1,255,300, respectively, and shall bear all improvement fees of houses, public facilities and land, selling expenses, and other expenses or contributed expenses required under the decrees. The Company shall not ask for any compensation for price fluctuations or other reasons. Further, under the contract, the Company shall give TSC performance guarantee amounting to \$63,880, \$83,080 and \$125,540, respectively, on the signing date, which will be returned in installments according to the contractual terms. The Company had provided such performance (12) On January 20, February 10 and December 27, 2014, the Company signed a contract with Taiwan Sugar Corporation ("TSC") in relation to cooperative construction of houses. According to the contracts, TSC shall provide Taichung City Koan An Section No. 591-1, Tainan City Hou Guan Section 34 and Nanzi Dist., Kaohsiung City Nanzi 1st section No. 158, etc; the Company shall provide funding for those projects and repurchase houses and land allocated to TSC amounting to \$638,763, \$830,889 and \$1,255,300, respectively, and shall bear all improvement fees of houses, public facilities and land, selling expenses, and other expenses or contributed expenses required under the decrees. The Company shall not ask for any compensation for price fluctuations or other reasons. Further, under the contract, the Company shall give TSC performance guarantee amounting to \$63,880, \$83,080 and \$125,540, respectively, on the signing date, which will be returned in installments according to the contractual terms. The Company had (12) On January 20, February 10 and December 27, 2014, the Company signed a contract with Taiwan Sugar Corporation ("TSC") in relation to cooperative construction of houses. According to the contracts, TSC shall provide Taichung City Koan An Section No. 591-1, Tainan City Hou Guan Section No. 34 and Nanzi Dist., Kaohsiung City Nanzi 1st section No. 158, etc; the Company shall provide funding for those projects and repurchase houses and land allocated to TSC amounting to \$638,763, \$830,889 and \$1,255,300, respectively, and shall bear all improvement fees of houses, public facilities and land, selling expenses, and other expenses or contributed expenses required under the decrees. The Company shall not ask for any compensation for price fluctuations or other reasons. Further, under the contract, the Company shall give TSC performance guarantee amountingto \$63,880, \$83,080 and \$125,540, respectively, on the signing date, which will be returned ininstallments according to the contractual terms. The Company had provided such performance

guarantee with guarantee letter of the bank as follows: provided such performance guarantee with guarantee letter of the bank as follows: guarantee with guarantee letter of the bank as follows:

	December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014

Lot No. 12-12, and No. 601-1 Guo-An Sec., Xitun District, Taichung City \$ 181,090 \$ 181,090 Lot No. 12-12, and No. 601-1 Guo-An Sec., Xitun District, Taichung City \$ 181,090 \$ 181,090

Taichung City Koan An Section No. 591-1 \$ 63,880 \$ 63,880 Tainan City Hou Guan Section No. 34 \$ 83,100 \$ 83,100 Nanzi Dist., Kaohsiung City Nanzi 1st section No. 158, etc. \$ 125,600 -\$ Taichung City Koan An Section No. 591-1 \$ 63,880 \$ 63,880 Tainan City Hou Guan Section No. 34 \$ 83,100 \$ 83,100 Nanzi Dist., Kaohsiung City Nanzi 1st

		December 31, 2015 December 31,2014 December 31, 2015 December 31,2014
Taichung City Koan An Section No. 591-1 Taichung City Koan An Section No. 591-1	\$ \$	63,880 \$ 63,880 \$	63,880 63,880
Tainan City Hou Guan Section No. 34 Tainan City Hou Guan Section No. 34	\$ \$	83,100 \$ 83,100 \$	83,100 83,100
Nanzi Dist., Kaohsiung City Nanzi 1st Nanzi Dist., Kaohsiung City Nanzi 1st
section No. 158, etc.	\$	125,600	\$ -

(13) The Company signed an agreement with Mr. Fang Tsai-Yuan and World Vision United Co., Ltd. on March 5, 2012 and July 17, 2012, respectively, for joint construction of houses. Under those agreements, Mr. Fang Tsai-Yuan and World Vision United Co., Ltd., the owners of land, shall provide the land located at Nos. 572 and 602, Sec. Zhi-Shan 1, Shilin District, Taipei City, respectively, and the Company is responsible for the construction; the houses built would be DOORFDWHG WR ERWK SDUWLHV EDVHG RQ WKH VSHFL¿HG SURSRUWLRQ ,Q DGGLWLRQ WKH &RPSDQ\ VKDOO JLYH performance bond in the amount of \$350,000 and \$19,570 to Mr. Fang Tsai-Yuan and World Vision United Co., Ltd., respectively, which would be returned to the Company in installments. As of December 31, 2015 and 2014. Balance of the performance bonds were as follows: (13) The Company signed an agreement with Mr. Fang Tsai-Yuan and World Vision United Co., Ltd. on March 5, 2012 and July 17, 2012, respectively, for joint construction of houses. Under those agreements, Mr. Fang Tsai-Yuan and World Vision United Co., Ltd., the owners of land, shall provide the land located at Nos. 572 and 602, Sec. Zhi-Shan 1, Shilin District, Taipei City, respectively, and the Company is responsible for the construction; the houses built would be allocated to both parties based on the specified proportion. In addition, the Company shall give performance bond in the amount of \$350,000 and \$19,570 to Mr. Fang Tsai-Yuan and World Vision United Co., Ltd., respectively, which would be returned to the Company in installments. As of December 31, 2015 and 2014. Balance of the performance bonds were as follows:

10. SIGNIFICANT DISASTER LOSS **6,*1,),&\$17',6\$67(5/266**

None. None.

None. **11. 6,*1,),&\$17(9(176\$)7(57+(%\$/\$1&(6+((7'\$7(**

section No. 158, etc. \$ 125,600 -\$

		December 31, 2015 December 31, 2014
Nos. 602, Sec. Zhi-Shan 1, Shilin District, Taipei City	\$ 350,000 \$	350,000
Nos. 572, Sec. Zhi-Shan 1, Shilin District, Taipei City	\$ 19,570 \$	19,570

None.

12. 27+(56

(1) Capital management

7KH &RPSDQ\¶V FDSLWDO PDQDJHPHQW LV WR HQVXUH LW KDV VXI¿FLHQW ¿QDQFLDO UHVRXUFH DQG RSHUDWLQJ plans to meet operational capital for future needs, capital expenditures, obligation repayment and dividend distribution. The Company adjusts borrowing amount in accordance with construction progress and capital needed for operations.

(2) Financial instruments
\$ )DLU YDOXH LQIRUPDWLRQ RI ¿QDQFLDO LQVWUXPHQWV

The carrying amount of cash and cash equivalents and financial instruments measured at amortised cost (including notes and accounts receivable, other receivables, refundable deposits short-term borrowings, short-term notes and bills payable, notes and accounts payable, other payables, corporate bonds payable, long-term borrowings and guarantee deposits received) are approximate to their fair values. Furthermore, the Company's management believes the FDUU\LQJ DPRXQWV RI ¿QDQFLDO DVVHWV DQG OLDELOLWLHV QRW PHDVXUHG DW IDLU YDOXH DUH DSSUR[LPDWH to their fair value or their fair value cannot be reliably measured. Thus, the carrying amount is WKH HVWLPDWHG IDLU YDOXH 7KH IDLU YDOXH LQIRUPDWLRQ RI ¿QDQFLDO LQVWUXPHQWV PHDVXUHG DW IDLU value is provided in Note 12(3).

B. Financial risk management policies
D?7KH &RPSDQ\¶V DFWLYLWLHV H[SRVH LW WR D YDULHW\ RI ¿QDQFLDO ULVNV PDUNHW ULVN LQFOXGLQJ foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Company's overall risk management programme focuses on the unpredictability RI ¿QDQFLDO PDUNHWV DQG VHHNV WR PLQLPL]H SRWHQWLDO DGYHUVH HIIHFWV RQ WKH &RPSDQ\¶V ¿QDQFLDO SRVLWLRQ DQG ¿QDQFLDO SHUIRUPDQFH

(b) Risk management is carried out by a treasury department (Company's finance & accounting division) under policies approved by the Board of Directors. The Company's ¿QDQFH DFFRXQWLQJ GLYLVLRQ HYDOXDWHV DQG KHGJHV ¿QDQFLDO ULVNV LQ FORVH FRRSHUDWLRQ with the Company's operating units. The Board provides written principles for overall ULVN PDQDJHPHQW DV ZHOO DV ZULWWHQ SROLFLHV FRYHULQJ VSHFL¿F DUHDV DQG PDWWHUV VXFK DV IRUHLJQ H[FKDQJH ULVN LQWHUHVW UDWH ULVN FUHGLW ULVN XVH RI GHULYDWLYH ¿QDQFLDO LQVWUXPHQWV

DQG QRQGHULYDWLYH ¿QDQFLDO LQVWUXPHQWV DQG LQYHVWPHQW RI H[FHVV OLTXLGLW\
& 6LJQL¿FDQW ¿QDQFLDO ULVNV DQG GHJUHHV RI ¿QDQFLDO ULVNV (a) Market risk

Foreign exchange risk

The Company operates internationally and the currencies primarily used are NTD and USD. Foreign exchange risk arises from recognized assets and liabilities and net investments in foreign operations. Management has set up a policy to require the Company to manage its foreign exchange risk against its functional currency. The Company is required to manage its entire foreign exchange risk exposure with the Company treasury. )RUHLJQ H[FKDQJH ULVN GRHV QRW KDYH VLJQL¿FDQW LPSDFW WR WKH &RPSDQ\ Interest rate risk

The Company's interest rate risk arises from short-term and long-term borrowings. %RUURZLQJV LVVXHG DW YDULDEOH UDWHV H[SRVH WKH &RPSDQ\ WR FDVK ÀRZ LQWHUHVW UDWH ULVN which is partially offset by cash and cash equivalents held at variable rates. Borrowings LVVXHG DW ¿[HG UDWHV H[SRVH WKH &RPSDQ\ WR IDLU YDOXH LQWHUHVW UDWH ULVN7KH &RPSDQ\¶V borrowings at variable rate were denominated in the NTD. If interest rates on borrowings had been 0.1% basis point higher/lower with all other variables held constant, pre-tax SUR¿W IRU WKH \HDUV HQGHG 'HFHPEHU DQG ZRXOG KDYH EHHQ DQG lower/higher, respectively.

Price risk

The Company has investments in equity instruments, and the prices would change due to the change of the future value of investee companies. However, the Company has set a VWRSORVV SRLQW DQG LW ZDV DVVHVVHG WKDW WKH &RPSDQ\ ZDV QRW H[SRVHG WR VLJQL¿FDQW SULFH risk. If the prices of these equity securities had increased/decreased by 10% with all other YDULDEOHV KHOG FRQVWDQW SUHWD[ SUR¿W IRU WKH \HDUV HQGHG 'HFHPEHU DQG would have increased/decreased by \$7,600, as a result of gains/losses on equity securities FODVVL¿HG DV DW IDLU YDOXH WKURXJK SUR¿W RU ORVV 2WKHU FRPSRQHQWV RI HTXLW\ ZRXOG KDYH increased/decreased by \$13,808 and \$13,727, respectively, as a result of gains/losses on HTXLW\ VHFXULWLHV FODVVL¿HG DV DYDLODEOHIRUVDOH (b) Credit risk

L &UHGLW ULVN UHIHUV WR WKH ULVN RI ¿QDQFLDO ORVV WR WKH &RPSDQ\ DULVLQJ IURP GHIDXOW E\ WKH FOLHQWV RU FRXQWHUSDUWLHV RI ¿QDQFLDO LQVWUXPHQWV RQ WKH FRQWUDFW REOLJDWLRQV &UHGLW risk arises from cash and deposits with banks and financial institutions, including

ii. The Company's receivables, which are the receivables from preselling of housing before completing construction and transferring the title, are installments received from customers of pre-construction real estate. Therefore, it was assessed that the

outstanding receivables.
&RPSDQ\ ZDV QRW H[SRVHG WR VLJQL¿FDQW FUHGLW ULVN IURP UHFHLYDEOHV

Financial Information

iii. For the years ended December 31, 2015 and 2014, the management does not expect DQ\ VLJQL¿FDQW ORVVHV IURP QRQSHUIRUPDQFH E\ WKHVH FRXQWHUSDUWLHV

(c) Liquidity risk

i. Cash flow forecasting is performed in the operating entities of the Company and aggregated by the Company's finance & accounting division. The Company's ¿QDQFH DFFRXQWLQJ GLYLVLRQ PRQLWRUV UROOLQJ IRUHFDVWV RI WKH &RPSDQ\¶V OLTXLGLW\ requirements to ensure it has sufficient cash to meet operational needs while PDLQWDLQLQJ VXI¿FLHQW KHDGURRP RQ LWV XQGUDZQ FRPPLWWHG ERUURZLQJ IDFLOLWLHV DW DOO times.
ii. The table below analyses the Company's non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date WR WKH FRQWUDFWXDO PDWXULW\ GDWH IRU QRQGHULYDWLYH ¿QDQFLDO OLDELOLWLHV 7KH DPRXQWV GLVFORVHG LQ WKH WDEOH DUH WKH FRQWUDFWXDO XQGLVFRXQWHG FDVK ÀRZV maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

(3) Fair value estimation (3) Fair value estimation

	December 31, 2015
		Within 1 year Between 1 to 3 years Over 3 years
Non-derivative financial liabilities:
Short-term borrowings	\$ 2,300,197 \$	-	\$ -
Short-term notes and bills payable	1,469,600	-	-
Notes payable	11,094	-	-
Accounts payable (including related party)	2,086,752	596,364	-
Other payables	873,055	-	-
Guarantee deposits received	71,941	20,138	35,393
Bonds payable	65,350	2,104,100	2,500,000
Long-term borrowings (including current portion)	373,334	3,190,480	3,995,400

A. Details of the fair value of the Company's financial assets and financial liabilities not measured at fair value are provided in Note 12(2)A. Details of the fair value of the Company's investment property measured at cost are provided in Note 6(11). A. Details of the fair value of the Company's financial assets and financial liabilities not measured at fair value are provided in Note 12(2)A. Details of the fair value of the Company's investment property measured at cost are provided in Note 6(11).
B. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows: B. The different levels that the inputs to valuation techniques are used to measure fair value of ¿QDQFLDO DQG QRQ¿QDQFLDO LQVWUXPHQWV KDYH EHHQ GH¿QHG DV IROORZV

	December 31, 2014
		Within 1 year Between 1 to 3 years Over 3 years
Non-derivative financial liabilities:
Short-term borrowings	\$ 2,975,206 \$	-	\$ -
Short-term notes and bills payable	1,970,000	-	-
Notes payable	10,375	-	-
Accounts payable (including related party)	1,746,204	1,002,592	-
Other payables	707,048	-	-
Guarantee deposits received	89,882	7,111	31,653
Bonds payable	65,350	2,119,617	2,535,521
Long-term borrowings
(including current portion)	2,085,480	2,054,646	3,015,626

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where D PDUNHW LQ ZKLFK WUDQVDFWLRQV IRU WKH DVVHW RU OLDELOLW\ WDNH SODFH ZLWK VXI¿FLHQW frequency and volume to provide pricing information on an ongoing basis. The fair YDOXH RI WKH &RPSDQ\¶V LQYHVWPHQW LQ OLVWHG VWRFNV DQG EHQH¿FLDU\ FHUWL¿FDWHV LV

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the Level 2: Inputs other than quoted prices included within Level 1 that are observable for the Level 2: Inputs other than quoted prices included within Level 1 that are observable for the

Level 3: Unobservable inputs for the asset or liability. The fair value of the Company's investment in equity investment without active market is included in Level 3. Level 3:Unobservable inputs for the asset or liability. The fair value of the Company's investment in equity investment without active market is included in Level 3. Level 3: Unobservable inputs for the asset or liability. The fair value of the Company's investment in equity investment without active market is included in Level 3.

included in Level 1. included in Level 1. included in Level 1.
asset or liability, either directly or indirectly. asset or liability, either directly or indirectly. asset or liability, either directly or indirectly.
December 31, 2015 and 2014, is as follows: 31, 2015 and 2014, is as follows: 31, 2015 and 2014, is as follows:

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

D. The methods and assumptions the Company used to measure fair value are as follows: (a) The instruments the Company used market quoted prices as their fair values (that is, Level (a) The instruments the Company used market quoted prices as their fair values (that is, Level 1)

(b) The Company takes into account adjustments for credit risks to measure the fair value of (b) The Company takes into account adjustments for credit risks to measure the fair value of (a) The Company takes into account adjustments for credit risks to measure the fair value of ¿QDQFLDO DQG QRQ¿QDQFLDO LQVWUXPHQWV WR UHÀHFW FUHGLW ULVN RI WKH FRXQWHUSDUW\ DQG WKH

December 31, 2015 December 31, 2015	Level 1 Level 1	Level 2 Level 2	Level 3 Level 3	Total Total
Assets: Assets:
Recurring fair value measurements Recurring fair value measurements
Financial assets at fair value through Financial assets at fair value through profit or loss profit or loss
Equity securities Equity securities	\$ 77,992 \$ 77,992	-\$ -\$	\$ - \$ -	\$ 77,992 \$ 77,992
Available-for-sale financial assets Available-for-sale financial assets
Equity securities Equity securities	1,349,835 1,349,835	- -	192,557 192,557	1,542,392 1,542,392
	\$ 1,427,827 \$ 1,427,827	-\$ -\$	\$ 192,557 \$ 192,557	\$ 1,620,384 \$ 1,620,384
December 31, 2014 December 31, 2014	Level 1 Level 1	Level 2 Level 2	Level 3 Level 3	Total Total
Assets: Assets:
Recurring fair value measurements Recurring fair value measurements
Financial assets at fair value through Financial assets at fair value through
profit or loss profit or loss
Equity securities Equity securities	\$ 77,547 \$ 77,547	-\$ -\$	\$ - \$ -	\$ 77,547 \$ 77,547
Available-for-sale financial assets
Available-for-sale financial assets
Equity securities Equity securities	1,310,004 1,310,004 \$ 1,387,551	- - -\$	272,651 272,651 \$ 272,651	1,582,655 1,582,655 \$ 1,660,202

financial and non-financial instruments to reflect credit risk of the counterparty and the Company's credit quality. financial and non-financial instruments to reflect credit risk of the counterparty and the Company's credit quality. Company's credit quality.
E. For the years ended December 31, 2015 and 2014, there was no transfer between Level 1 and E. For the years ended December 31, 2015 and 2014, there was no transfer between Level 1 and Level 2. Level 2.
D. The methods and assumptions the Company used to measure fair value are as follows:
D. The methods and assumptions the Company used to measure fair value are as follows: (a) The instruments the Company used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics: 1) are listed below by characteristics: are listed below by characteristics:

	Listed shares Listed shares	Open-end fund Open-end fund
Market quoted price	Closing preice	Net asset value
Market quoted price	Closing preice	Net asset value

E. For the years ended December 31, 2015 and 2014, there was no transfer between Level 1 and

F. The following chart is the movement of Level 3 for the years ended December 31, 2015 and 2014: F. The following chart is the movement of Level 3 for the years ended December 31, 2015 and 2014: F. The following chart is the movement of Level 3 for the years ended December 31, 2015 and F. The following chart is the movement of Level 3 for the years ended December 31, 2015 and

G. For the years ended December 31, 2015 and 2014, there was no transfer into or out from Level 3. H. Finance and Accounting department is in charge of valuation procedures for fair value G. For the years ended December 31, 2015 and 2014, there was no transfer into or out from Level 3. Note: Recorded as unrealised valuation gain or loss of available-for-sale financial assets. G. For the years ended December 31, 2015 and 2014, there was no transfer into or out from Level 3. Note: Recorded as unrealised valuation gain or loss of available-for-sale financial assets. G. For the years ended December 31, 2015 and 2014, there was no transfer into or out from Level 3.
measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently assessing valuation results and making any other necessary adjustments to the fair value. I. The following is the qualitative information of significant unobservable inputs and sensitivity H. Finance and Accounting department is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently assessing valuation results and making any other necessary adjustments to the fair value. H. Finance and Accounting department is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently assessing valuation results and making any other necessary adjustments to the fair value. H. Finance and Accounting department is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently assessing valuation results and making any other necessary adjustments to the fair value.
analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement: , 7KH IROORZLQJ LV WKH TXDOLWDWLYH LQIRUPDWLRQ RI VLJQL¿FDQW XQREVHUYDEOH LQSXWV DQG VHQVLWLYLW\ DQDO\VLV RI FKDQJHV LQ VLJQL¿FDQW XQREVHUYDEOH LQSXWV WR YDOXDWLRQ PRGHO XVHG LQ /HYHO IDLU value measurement: I. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement: I. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

value; therefore, the fair value measurement is reasonable. However, use of different valuation models or assumptions may result in different measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets and liabilities categorized within Level 3 if the inputs used to valuation models have changed: December 31, 2015 J. The Company has carefully assessed the valuation models and assumptions used to measure fair value; therefore, the fair value measurement is reasonable. However, use of different valuation models or assumptions may result in different measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets and liabilities categorized within Level 3 if the inputs used to valuation models have changed: J. The Company has carefully assessed the valuation models and assumptions used to measure fair value; therefore, the fair value measurement is reasonable. However, use of different valuation models or assumptions may result in different measurement. The following is the HIIHFW RI SUR¿W RU ORVV RU RI RWKHU FRPSUHKHQVLYH LQFRPH IURP ¿QDQFLDO DVVHWV DQG OLDELOLWLHV categorized within Level 3 if the inputs used to valuation models have changed: J. The Company has carefully assessed the valuation models and assumptions used to measure fair value; therefore, the fair value measurement is reasonable. However, use of different valuation models or assumptions may result in different measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets and liabilities categorized within Level 3 if the inputs used to valuation models have changed:

	Fair value at December 31, 2015 Fair value at	Valuation technique Valuation	Significant unobservable input Significant	Range (weighted average) Range	Relationship of inputs to fair value Relationship of inputs
Non-derivative equity	December 31, 2015 December 31, 2015	technique technique	unobservable input unobservable input	(weighted average) (weighted average)	to fair value to fair value
Non-derivative equity Unlisted shares Non-derivative equity	\$	192,557 Net asset value	Net asset value	N/A	The higher the net
Unlisted shares Unlisted shares	\$ \$	192,557 Net asset value 192,557 Net asset value	Net asset value Net asset value	N/A N/A	The higher the net asset value, the higher The higher the net
					asset value, the higher the fair value asset value, the higher
J. The Company has carefully assessed the valuation models and assumptions used to measure fair					the fair value the fair value

		2015		2014
At January 1	\$	2015 2015 272,651 \$		2014 2014 267,633
At January 1 At January 1 Proceeds from capital reduction	\$ \$	272,651 \$ 272,651 \$ - (		267,633 267,633 25,000)
Proceeds from capital reduction Proceeds from capital reduction (Loss) gain recognised in other comprehensive		- (	- (	25,000) 25,000)
(Loss) gain recognised in other comprehensive (Loss) gain recognised in other comprehensive income (Note)	(	80,094)		30,018
income (Note) income (Note) At December 31	( ( \$	80,094) 80,094) 192,557 \$		30,018 30,018 272,651
At December 31 At December 31	\$ \$	192,557 \$ 192,557 \$		272,651 272,651

6833/(0(17\$5<',6&/2685(6

(1) 6LJQL¿FDQW WUDQVDFWLRQV LQIRUPDWLRQ

C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 3.
A. Loans to others: Please refer to table 1.
B. Provision of endorsements and guarantees to others: Please refer to table 2.
D. Acquisition or sale of the same security with the accumulated cost exceeding \$300 million or 20% of the Company's paid-in capital: None.
E. Acquisition of real estate reaching \$300 million or 20% of paid-in capital or more: Please refer to table 4.
F. Disposal of real estate reaching \$300 million or 20% of paid-in capital or more: None. G. Purchases or sales of goods from or to related parties reaching \$100 million or 20% of paid-in
capital or more: Please refer to table 5.
H. Receivables from related parties reaching \$100 million or 20% of paid-in capital or more: Please refer to table 6.
I. Trading in derivative instruments undertaken during the reporting periods: None. - 6LJQL¿FDQW LQWHUFRPSDQ\ WUDQVDFWLRQV GXULQJ WKH UHSRUWLQJ SHULRGV 3OHDVH UHIHU WR WDEOH
(2) Information on investees
Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 8.
(3) Information on investments in Mainland China None.

**6(*0(17,1)250\$7,21**

Not applicable.

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VII

Review of Financial Conditions, Operating Results, and Risk Management

VII. Review of Financial Conditions, Operating Results, and Risk Management

\$QDO\VLVRI)LQDQFLDO6WDWXV

Year				Difference
Item			Amount	%	Note
Current Assets	32,959,394	34,239,845	(1,280,451)	-3.74
Financial Assets-non current	2,530,463	2,591,154	(60,691)	-2.34
Equity Method Investment	2,244,485	2,182,242	62,243	2.85
Fixed Assets	6,742,932	6,957,966	(215,034)	-3.09
Investment Property	6,043,827	6,075,555	(31,728)	-0.52
Intangible Assets	2,302,523	2,362,995	(60,472)	-2.56
Other Assets	1,652,287	1,641,211	11,076	0.67
Total Assets	54,475,911	56,050,968	(1,575,057)	-2.81
Current Liabilities	12,999,759	17,219,734	(4,219,975)	-24.51
Long-term Liabilities	13,930,754	12,149,449	1,781,305	14.66
Other Liabilities	2,370,827	2,370,841	(14)	-0.00
Total Liabilities	29,301,340	31,740,024	(2,438,684)	-7.68
Capital stock	16,233,261	16,623,418	(390,157)	-2.35
Capital surplus	2,260,513	1,929,793	330,720	17.14
Retained Earnings	4,929,196	4,035,662	893,534	22.14
Other Equity	1,409,109	1,436,219	(27,110)	-1.89
Treasury Stock	(1,003)	(60,440)	(59,437)	-98.34
Minority Equity	343,495	346,292	(2,797)	-0.81
7RWDO6WRFNKROGHUV (TXLW\	25,174,571	24,310,944	863,627	3.55

\$NTD Thousands

VII

\$QDO\VLVRI2SHUDWLQJ5HVXOWV

Year			Difference
Item			Amount	%
Sales	16,255,019	20,145,683	(3,890,664)	-19.31
Less: Sales Returns	(146,513)	(721,218)	(574,705)	-79.69
Net Sales	16,108,506	19,424,465	(3,315,959)	-17.07
Cost of Sales	(10,933,346)	(14,216,886)	(3,283,540)	-23.10
*URVV 3UR¿W	5,175,160	5,207,579	(32,419)	-0.62
Operating Expenses	(2,723,761)	(2,742,285)	(18,524)	-0.68
Operating Income	2,451,399	2,465,294	(13,895)	-0.56
Other Income	366,218	384,772	(18,545)	-4.82
Other Income and Loss	27,599	(39,614)	67,213	169.67
Financial Cost	(335,166)	(350,296)	(15,130)	-4.32
6KDUH RI SUR¿W RI VXEVLGLDULHV associates and joint ventures accounted for under equity method	11,610	82,945	(71,335)	-86.00
3UR¿W EHIRUH LQFRPH WD[	2,521,660	2,543,101	(21,441)	-0.84
7D[ %HQH¿W ([SHQVH	(288,092)	(163,467)	124,625	76.24
Net Income	2,233,568	2,379,634	(146,066)	-6.14

\$NTD Thousands

\$QDO\VLVRI&DVK)ORZ

&DVK)ORZ\$QDO\VLVIRUWKH&XUUHQW<HDU

Cash and Cash (TXLYDOHQWV	Net Cash Flow		Cash Surplus	/HYHUDJHRI&DVK'H¿FLW
%HJLQQLQJRI Year (1)	from Operating Activities (2)	&DVK2XWÀRZ	'H¿FLW	Investment Plans	Financing Plans
2,165,806	3,693,401	(2,058,456)	3,800,751	None	None
&DVK ÀRZ LQ &DVK RXWÀRZ &DVK LQÀRZ	IURP RSHUDWLQJ IURP LQYHVWLQJ	DFWLYLWLHV DFWLYLWLHV

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Year Item			Variance (%)
Cash Flow Ratio (%)	28.41	N/A	N/A
Cash Flow Adequacy Ratio (%)	41.74	N/A	N/A
Cash Reinvestment Ratio (%)	7.35	N/A	N/A

5HPHG\IRU&DVK'H¿FLWDQG/LTXLGLW\$QDO\VLV

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0DMRU FDSLWDO H[SHQGLWXUH RFFXUUHG UHFHQW \HDUV LV FRPLQJ IURP FDVK ÀRZ IURP RSHUDWLQJ DFWLYLWLHV and capital issuance by cash.

,QYHVWPHQW3ROLF\LQ/DVW<HDU0DLQ&DXVHVIRU3UR¿WVRU/RVVHV ,PSURYHPHQW3ODQVDQGWKH,QYHVWPHQW3ODQVIRUWKH&RPLQJ<HDU

6KDUH RI SUR¿WV RI LQYHVWPHQW XQGHU HTXLW\ UHFRJQL]HG LV WKRXVDQG 17' ,Q WKH IXWXUH there is no foresee major investment next year.

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(IIHFWVRI&KDQJHVLQ ,QWHUHVW5DWHV)RUHLJQ([FKDQJH5DWHVDQG ,QIODWLRQRQ Corporate Finance, and Future Response Measures

(1) Interest rate

In the future, the company will carefully monitor interest rate movements and adopt proper KHGJLQJ VWUDWHJLHV DQG RWKHU FDSLWDO PDUNHWV ¿QDQFLQJ LQVWUXPHQWV WR HQVXUH WKDW RXU ¿QDQFLQJ

Cash and Cash (TXLYDOHQWV	Net Cash Flow		Cash Surplus		/HYHUDJHRI&DVK'H¿FLW
%HJLQQLQJRI Year (1)	from Operating Activities (2)	&DVK2XWÀRZ	'H¿FLW	Investment Plans	Financing Plans
3,800,751	(1,274,523)	(15,505)	2,510,723	None	None
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VII

costs are at a comparatively low level.

(2) Foreign exchange rates
None. ? ,QÀDWLRQ

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The company did not engage in any high-risk or high-leveraged investments. The transactions and procedures related to lending and endorsement are based on the Company's "Procedures of Lending" and "Procedures of Endorsement Guarantee.".

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None.

(IIHFWV RI DQG5HVSRQVH WR&KDQJHVLQ3ROLFLHV DQG5HJXODWLRQV5HODWLQJ WR Corporate Finance and Sales

Prince always pays close attention to any changes in local and foreign policies and makes appropriate amendments to our systems when necessary. During 2014 and as of the date of publication of this annual report, changes in related laws had impacted the investors' willing to purchase. Prince has now broadened our business to income-producing property to balance the wave in local and foreign policies.

(IIHFWVRIDQG5HVSRQVH WR&KDQJHVLQ7HFKQRORJ\DQGLQ ,QGXVWU\5HODWLQJ WR Corporate Finance and Sales

None.

7KH,PSDFWRI&KDQJHVLQ&RUSRUDWH,PDJHRQ&RUSRUDWH5LVN0DQDJHPHQWDQG WKH&RPSDQ\¶V5HVSRQVH0HDVXUHV

None.

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None.

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Plans

None.

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6RXUFHVDQG([FHVVLYH&XVWRPHU&RQFHQWUDWLRQ None.
(IIHFWVRI5LVNV5HODWLQJWRDQG5HVSRQVHWR/DUJH6KDUH7UDQVIHUVRU&KDQJHV RIRYHU

in Shareholdings by Directors, Supervisors, or Shareholders with Shareholdings

None.

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None.

/LWLJDWLRQRU1RQOLWLJDWLRQ0DWWHUV

The Subsidiary, Ta-Chen Construction & Engineering Corp. ("Ta-Chen"), Hung-Yi Construction Corp. and Evergreen International Engineering Corp. ("Evergreen") (collectively referred herein DV WKH ³MRLQW FRQWUDFWRUV´? MRLQWO\ XQGHUWRRN WKH FRQVWUXFWLRQ RI WKH QHZ RI¿FH EXLOGLQJ RI WKH American Institute in Taiwan. As the joint contractors and the owner of this project both claim the counterparty defaulted on the contract, they terminated the contract and referred the dispute to arbitration. A settlement was reached in August 2013, and the joint contractors would together pay a reconciliation payment amounting to US\$16.4 million, which Ta-Chen pays 68.24%. Ta-Chen has estimated and recognized related arbitration expenses, reconciliation payment and construction loss. Furthermore, the settlement agreement between Ta-Chen and the owner, including tax on settlement of \$30,178 paid to the Taxation Bureau on behalf of the owner, has been reached. As 2 years have passed from the application of tax refunds and the probability of tax refund is remote, the related other receivables were written off and loss of \$30,178 was recognised (shown as other gains and losses) in 2015. Furthermore, Ta-Chen has paid the settlement on behalf of the joint contractors. Ta-Chen planned to request Evergreen to pay all payments of \$221,000 on behalf of other joint contractors. As WKH MRLQW FRQWUDFWRUV KDYH GLVDJUHHPHQW UHJDUGLQJ WKH FRQWUDFW 7D&KHQ KDV ¿OHG DQ DUELWUDWLRQ application with the Chinese Arbitration Association, Taipei, and received an arbitration award on March 27, 2015 wherein, Evergreen International Engineering shall pay Ta-Chen a total amount

of \$169,765 plus interest at 5% per annum from December 17, 2013 until the date of payment. Additionally, on June 15, 2015, the arbitration court corrected the payment to \$201,427. Ta-Chen reached an agreement with Evergreen on June 18, 2015 that Evergreen shall pay \$195,000 and both sides shall withdraw revocation proceedings or application for compulsory enforcement. 7KHUHIRUH7D&KHQKDVZULWWHQRIIRWKHUUHFHLYDEOHVDQGUHFRJQL]HGORVVRILQWKH¿UVW half of the year (shown as other gains and losses).

Ta-Chen received the above payment of \$195,000 from Evergreen and the case was closed.

7.6.13 Other Major Risks

None.

7.7 Other major matters:

None.

Special Disclosure

VIII

VIII. Special Disclosure

8.1 Related Party

(I) Consolidated financial statements of the related party
1. Related party (1) Organizational structure of related party:

(2) Basic Data of Affiliated Enterprises

ms Major Business/Production Ite	Lot, parking tower Build public housing, commercial buildings, parking and sale and rent	Architecture design and construction	water supply Electric Power and pipeline setup	maintain management and Apartment service	Overseas Investments
Capital	\$16,623,418	1,240,000	30,700	30,000	140,413
Address	Rd., City Zhongzheng S. Tainan Dist., No.30, Yongkang 19F.,	Rd., City Zhongzheng S. Tainan Dist., No.30, Yongkang 19F.,	Rd., City Zhongzheng S. Tainan Dist., No.30, Yongkang 19F.,	Rd., City Zhongzheng S. Tainan Dist., No.30, Yongkang 18F.,	Tortol, Cay. Road Town, Wickhams Virgin Islands Building Box 622, British Citco O P.
ment Date of Establish	1973.09.22	1959.05.11	1977.03.01	1996.08.05	1997.06.27
me of Corporation Na	Corp. Development Housing& Prince	Engineering & Construction Ta-Chen Corp	Ltd Co., Utility Prince	Maintain Management Apartment Ltd Prince Co.,	Ltd Co., Housing Investment Prince

Ltd Co., Technology BioSun	1996.11.11	Dist., Xinyi Rd., No.11, Songgao City Taipei 21F.,	1,000	biotechnology and export/import with medicine making fungicide R&D of
Ltd Co., Prince Security	2000.04.07	Rd., City Zhongzheng S. Tainan Dist., No.30, Yongkang 17F.,	131,726	Security service
Ltd Co., Enterprises Dong-Feng	1963.02.28	Rd., City Zhongzheng S. Tainan Dist., No.30, Yongkang 19F.,	173,000	water pond, architecture and cement Investment of cultured fish, industries
Ltd Co., Construction Cheng-Shi	1976.01.22	Rd., City Zhongzheng S. Tainan Dist., No.30, Yongkang 19F.,	101,000	Construction industry
Taichung Hotel The Splendor	2006.10.25	Dist., West Rd., No.1049, Jianxing City Taichung	1,950,000	Hotel Tourist

Unit;NT \$ thousands

VIII

Major Business/Production Ite Capital	ment of residential and business buildings Develop 10,000	Hotel 642,000	Particle board manufacture 152,000	mmercial building ment the leasing of residential and co and real estate Manage 171,466	Real estate sale, Plywood Manufacturing 112.480	Overseas Investments 9,316	Overseas Investments 7,317	Investment 1,210,072
Address	21F., No.11, Songgao Rd., Xinyi Dist., Taipei City	No.10, Sec. 5, Zhongxiao E. Rd., Xinyi Dist., Taipei City	18F., No.30, Zhongzheng S. Rd., Yongkang Dist., Tainan City	19F., No.30, Zhongzheng S. Rd., Yongkang Dist., Tainan City	8F., No.398, Sec. 1, Zhonghua E. Rd., East Dist., Tainan City	Cator Bandar seri Begawan BS8811 34,3rd Floor, Britannia House,Jalan Brunei Darussalam	Vietnam	19F., No.30, Zhongzheng S. Rd., Yongkang Dist., Tainan City
ment Date of Establish	2013.2.27	2007.01.22	1969.03.10	1992.11.09	2015.09.24	2010.11.09	2011.07.29	2012.12.31
me of Corporation Na	Prince Industrial, Corp.	me Squar International Co., Ltd Ti	Jin-Yi-Xing plywood Co., Ltd	ment Manage Prince Property Consulting Co.	Prince Real Estate Co.	Ta Chen International (Brunei) Corp	Ta Chen Construction & Engineering (Vietnam) Corp.	Cheng-Shi Investment Holding Co.

(3) Data of Common Shareholders of Treared-as Controlled Companies and Affiliates: None

(4) Business of Prince Housing& Development Co and its Affiliated Enterprises
(i) The business of Prince Housing& Development Co. covers: construction, power and water supply pipeline setup, real estate appraisal and agent, overseas investments, Recreation and entertainment management, R&D of making medicine with biotechnology and export/ import fungicide, Apartment management and maintain service, Security service, hotel, and particle board manufacture etc.
(ii) Business with relationship among affiliated enterprises as following: Our projects are consigned to Ta-Chen Construction & Engineering Corporation, Cheng-Shi Construction Co., Ltd and Prince Utility Co., Ltd. For saving cost, parts of residual houses were consigned to Prince Real estate Agent Co., Ltd to sell. To supply after-sell services, parts of buildings were consigned to Prince Apartment Management Maintain Co., Ltd and Prince Security Co., Ltd.

Affiliated enterprises


Supervisors, and President of
(5) Directors,

			Shareholding
me of Corporation Na	Title	me or Representative Na	Shares	%
	Chairman	Joyful Inv. Co., Ltd.	28,136,024	% 1.73
	Chairman(Joyful Rep.)	Kao-Huei Cheng	9,854,994	% 0.61
	Vice Chairman	Uni-President Enterprises Co., Ltd.	162,743,264	% 10.03
	Vice Chairman(Uni-Prisedent Rep.)	Chih-Hsien Lo	-	-
	Director	Wu Tseng Mei Chao-	39,023,030	% 2.40
	Director	Hung Yao Inv. Co., Ltd.	2,346,491	% 0.14
	Director(Hung Yao Rep.)	Shih-Hung Chuang	652,748	% 0.04
	Director	Kao Chyuan Inv. Co., Ltd.	44,237,308	% 2.73
	Director(Kao Chyuan Rep.)	Hsiu-Ling Kao	425,013	% 0.03
	Director	Ming Hou Po-	22,923,624	% 1.41
	Director	Po-Yi Hou	13,701,215	% 0.84
ment Corp. Prince Housing& Develop	Director	Young Yun Inv. Co., Ltd.	14,969,463	% 0.92
	Director(Young Yun Rep.)	Wu Chung-Ho	5,209,847	% 0.32
	Director	Ying-Chih Chuang	610,020	% 0.04
	Director	Taipo Inv. Co., Ltd.	76,364,587	% 4.70
	Director(Taipo Rep.)	Wu Ping-Chih	12,782,695	% 0.79
	Director	Taipo Inv. Co., Ltd.	76,364,587	% 4.70
	Director(Taipo Rep.)	Wu Gen-De	9,656,943	% 0.59
	Director	Uni-President Enterprises Co., Ltd.	162,743,264	% 10.03
	Director(Uni-Prisedent Rep.)	Wu Tsung-Ping	-	-
	Independent Director	Ming Chang Chi-	-	-
	Independent Director	Ruei-Ching Lin	-	-
	Independent Director	Chian Tai	-	-

VIII

me of Corporation Na	Title	me or Representative Na	Shareholding
			Shares	%
	Supervisor	Ltd. Co., Wei Inv. Guang	20,140,496	% 1.24
	Rep.) Wei Supervisor(Guang-	Zhuang Ying-Nan	900,869	% 0.06
	Supervisor	Huang Wen Chao-	13,806,429	% 0.85
	Supervisor	Chen Jing-Shin	601,774	% 0.04
	Supervisor	Chen Chien-Hung	226,600	% 0.01
	Supervisor	Lin Jheng-Yang	-	-
	Director and Supervisor	Corp. Development & Housing Prince	97,504,758	% 100.00
	Rep.) Chairman (Prince	Cheng Kao-Huei	-	-
	Rep.) Director (Prince	Lo Chih-Hsien	-	-
Cheng-Shi Investment Co. Holding	Rep.) Director (Prince	Xie Ming-Fan	-	-
	Rep.) Director (Prince	Hou Ming, Bo-	-	-
	Rep.) Director (Prince	Wu Zhong-Ho,	-	-
	Rep.) Supervisor(Prince	Kao Chen June	-	-
	Chairman/Supervisor	Co. Holding Cheng-Shi Investment	90.497.528	% 100.00
	Rep.) Cheng-Shi Chairman (	Zhang Rong-Tian	-	-
& Construction Corp Engineering Ta-Chen	Rep.) Director(Cheng-Shi	Lin Jun-Liang	-	-
	Rep.) Director(Cheng-Shi	Kao Chen June	-	-
	Rep.) Cheng-Shi Supervisor(	Hou Chun Mo	-	-
	Director and Supervisor	Co. Holding Cheng-Shi Investment	20,100,000	% 100
	Rep.) Chairman (Cheng-Shi Investment	Xie Ming-Fan	-	-
Construction Cheng-Shi Corp	Rep.) Director (Cheng-Shi Investment	Chie Chun-Long	-	-
	Rep.) Director (Cheng-Shi Investment	Xiao-Yu Jiang	-	-
	Rep.) Supervisor (Cheng-Shi Investment	Dai Da-Chang	-	-

me of Corporation Na	Title	me or Representative Na	Shareholding
			Shares	%
	Chairman/Supervisor	Co. Holding Cheng-Shi Investment	3,070,000	% 100.00
	Rep.) Cheng-Shi Chairman(	Xie Ming-Fan	-	-
Ltd Prince	Rep.) Cheng-Shi Director(	Ye Kun-Bo	-	-
Co., Utility	Rep.) Cheng-Shi Director(	Wu Jian-Ying	-	-
	Rep.) Cheng-Shi Director(	Qiu Wen-Zhen	-	-
	Rep.) Supervisor( Prince	Lin Jun-Liang	-	-
	Chairman/Supervisor	Co. Consulting Management Prince Property	17,146,580	% 100.00
	Rep.) Chairman( Prince Property	Xie Ming-Fan	-	-
Property Prince	Rep.) Director( Prince Property	Cheng Kao-Huei	-	-
Consulting ment Manage	Rep.) Director( Prince Property	Lo Chih-Hsien	-	-
Co.	Rep.) Director( Prince Property	Hou Ming Po-	-	-
	Rep.) Director( Prince Property	Wu Zhong-Ho,	-	-
	Rep.) Supervisor ( Prince Property	Kao Chen June	-	-
	Director and Supervisor	Consulting Management Prince Property	13,172,636	% 100.00
	Rep.) Chairman (Prince Property	Xie Ming-Fan	-	-
	Rep.) Director(Prince Propery	Xiao-Yu Jiang	-	-
	Rep.) Director(Prince Propery	Qiu Wen-Zhen	-	-
Ltd. Co. Prince Security	Rep.) Director(Prince Propery	Wu Jian-Ying	-	-
	Rep.) Director(Prince Propery	Zhuang Ying-Jie	-	-
	Rep.) Propery Director(Prince	Lin Jun-Liang	-	-
	Rep.) Propery Director(Prince	Kao Chen June	-	-
	Rep.) Supervisor(Prince Propery	Dai Da-Chang	-	-

Special Disclosure VIII

VIII

me of Corporation Na		Na	Shareholding
	Title	me or Representative	Shares	%
	Director and Supervisor	Consulting Management Prince Property	3,000,000	% 100.00
	Rep.) Chairman (Prince	Xie Ming-Fan	-	-
	Rep.) Director (Prince	Kao Chen June	-	-
Apartment Prince	Rep.) Director (Prince	Zhuang Ying-Jie	-	-
Maintain ment Ltd Manage Co.,	Rep.) Director (Prince	Ye Kun-Bo	-	-
	Rep.) Director (Prince	Qiu Wen-Zhen	-	-
	Rep.) Director(Prince Propery	Wu Jian-Ying	-	-
	Rep.) Supervisor(Prince	Dai Da-Chang	-	-
	Director and Supervisor	Corp. Development & Housing Prince	73,830,000	% 100.00
	Rep.) Chairman (Prince	Cheng Kao-Huei	-	-
Vice	Rep.) Chairman (Prince	Lo Chih-Hsien	-	-
	Rep.) Director (Prince	Zeng Wu Mei Zhao-	-	-
	Rep.) Director (Prince	Kao Lin Hisu	-	-
	Rep.) Director (Prince	Hou Ming, Bo-	-	-
	Rep.) Director (Prince	Hou Bo-Yi	-	-
Ti	Rep.) Director (Prince	Wu Chung-Ho	-	-
Hotel Square International mes	Rep.) Director (Prince	Chuang Ying-Chih	-	-
	Rep.) Director (Prince	Wu Chien-Te	-	-
	Rep.) Director (Prince	Wu Ping-Chih	-	-
	Rep.) Director (Prince	Chuang Shih-Hung	-	-
	Rep.) Director (Prince	Wu Tsung-Ping	-	-
	Rep.) Supervisor (Prince	Zhuang Ying-Nan	-	-
	Rep.) Supervisor (Prince	Huang Wen Chao-	-	-
	Rep.) Supervisor (Prince	Chen Jing-Shin	-	-
	Rep.) Supervisor (Prince	Chen Chien-Hung	-	-

me of Corporation Na	Title	me or Representative Na	Shareholding
			Shares	%
	Rep.) Supervisor(Prince	Lin Jheng-Yang	-	-
	Chairman/Director Vice	Corp. Development & Housing Prince	97,500,000	% 50.00
	Rep.) Chairman (Prince Vice	Xie Ming-Fan	-	-
	Rep.) Director (Prince	Chen Hsin Gin	-	-
	Rep.) Director (Prince	Chun Su Yi	-	-
Hotel	Rep.) Supervisor (Prince	Wu Jing-Ying	-	-
Splendor	Rep.) Supervisor (Prince	Cheng Yu Hsin	-	-
	Director	Ltd. Co. Metal Products China	97,500,000	% 50.00
	Rep.) Metal Chairman (China	Chen Huai-Chen	-	-
	Rep.) Metal Director (China	Mai Wei Sheng-	-	-
	Rep.) Metal Director (Chine	Chai Jun-Lin	-	-
	Director and Supervisor	Corp. Development & Housing Prince	17,300,000	% 100.00
	Rep.) Chairman (Prince	Cheng Kao-Huei	-	-
Corp. Don-Fung	Rep.) Director (Prince	Xie Ming-Fan	-	-
	Rep.) Director (Prince	Mai Wei Sheng-	-	-
	Rep.) Supervisor (Prince	Dai Da-Chang	-	-
Housing Prince	Director	Corp. Development Housing& Prince	428	% 100.00
Ltd Co., Investment	Rep.) Chairman( Prince	Cheng Kao-Huei	-	-
	Director and Supervisor	Corp. Development & Housing Prince	3,938,168	% 99.65
Chin-I-Shin	Rep.) Chairman (Prince	Dai Da-Chang	-	-
PlywoodCorp.	Rep.) Director (Prince	Zheng De-Sheng	-	-
	Rep.) Director (Prince	Lu Tian-Long	-	-
	Rep.) Supervisor (Prince	Guo Bao-Zhu	-	-

VIII

			Shareholding
me of Corporation Na	Title	me or Representative Na	Shares	%
Co., Technology BioSun	Chairman/Supervisor	Corp. Development & Housing Prince	100,000	% 100
Ltd	Rep.) Chairman( Prince	Xie Ming-Fan	-	-
	Director and Supervisor	Corp. Development & Housing Prince	11,208,632	% 99.65
	Rep.) Chairman (Prince	Cheng Kao-Huei	-	-
	Rep.) Director (Prince	Lo Chih-Hsien	-	-
	Rep.) Director (Prince	Hou Ming, Bo-	-	-
	Rep.) Director (Prince	Wu Chung-Ho	-	-
Co. Estate Real Prince	Rep.) Director (Prince	Wu Tsung-Ping	-	-
	Rep.) Director (Prince	Xie Ming-Fan	-	-
	Rep.) Director (Prince	Kao Chen June	-	-
	Rep.) Director (Prince	Zhuang Ying-Jie	-	-
	Supervisor	Chen Jing-Shin	-	-
	Supervisor	Lin Chen-Yang	-	-
	Director and Supervisor	Corp. Development & Housing Prince	10,000,000	% 100.00
	Rep.) Chairman (Prince	Cheng Kao-Huei	-	-
	Rep.) Director (Prince	Lo Chih-Hsien	-	-
Corp. Prince Industrial	Rep.) Director (Prince	Xie Ming-Fan	-	-
	Rep.) Director (Prince	Hou Ming, Bo-	-	-
	Rep.) Director (Prince	Wu Zhong-Ho,	-	-
	Rep.) Supervisor(Prince	Kao Chen June	-	-
Ta-Chen International	Director	Corp. Engineering & Construction Chen Ta	323,000	% 100
mpany Co (Brunei)	Rep.) Director (Da-Chen	Chang Rong-Tian	-	-
& Construction Chen Ta	Director	Company Ta-Chen International (Brunei)	313,520	% 100
Engineering (Vietnam) Corp.	Rep.) Director (Da-Chen	Chang Rong-Tian	-	-

2. Affiliates Operations Overview

Company Name Capital Total

Prince Housing & Development Corp. 16,233,261 45,853,028 21,021,952 24,831,076 8,763,040 1,606,015 2,237,800 1.38 Cheng-Shi Investment Holding Co. 975,048 1,094,716 19,102 1,075,614 Ta Chen Construction & Engineering Corp. 904,975 2,885,425 2,197,602 687,823 3,453,620 159,832 179,670 1.99 Cheng-Shi Construction Corp 201,000 605,067 323,626 281,441 946,066 40,050 32,757 3.00 Prince Water and Electricity Corp. 30,700 352,091 244,206 107,885 432,468 14,546 16,025 5.22 Prince Property Management Consulting Co. Prince Security Group 131,726 258,029 53,790 204,239 369,889 11,579 11,589 0.88 Prince Apartment management and maintenance corp. Time Square International Hotel 738,300 1,442,640 440,136 1,002,504 2,156,284 256,816 216,325 2.93 Splendor Hotel 1,950,000 5,913,429 5,236,090 677,339 666,531 46,822 (16,239) (0.08) Don-Fung Corp. 173,000 170,938 392 170,546 418 (186) (119,249) (6.89) Prince Housing Investments Corp. 140,413 431,162 20 431,142 Chin-I-Shin Plywood Corp. 39,520 7,191 828 6,363 829,021 512,872 779,515 197.25 Bio Sun Technology Co., Ltd. 1,000 1,007 Prince Real Estate Co. 112,480 1,670,969 298,631 1,372,338 352,010 210,288 331,309 29.45 Prince Industrial Corp. 10,000 9,575 Ta-Chen International (Brunei) Company 9,464 4,613

		Total	liabilities Equity Operating		Operating	Net Income	EPS
	assets			Revenue	Income	(After tax)	(After tax)

				-	225,567	225,598	2.31



171,466	307,805	25,332	282,473	93,821	(167)	11,919	0.70

30,000	89,029	19,439	69,590	93,211	1,308	1,922	0.64



				-	(36)		47,764 111,598.01

		-	1,007	-	-	1	0.01

		1	9,574	-	(57)	(41)	(0.04)
		-	4,613	96	(87)	(70)	(0.22)
7,317	4,479	-	4,479	96	(26)	(24)	(0.08)

Ta-Chen Construction & Engineering (Vietnam) Corp.

Unit ;NT \$ thousands

VIII

8.1.2 Affiliates consolidated financial statements

Please refer to the page 130– 187.

8.1.3 Reports on relations between:None。

8.2 Information of private offered securities:None

8.3 The Shares in the Company Held or Disposed of by Subsidiaries in the Most Recent Years:

										Unit;	NT \$ thousands
Name of subsidiary	Stock capital collected	Fund source	Shareholding ratio of the company	acquisition or disposition Date of	Shares and amount acquired	Shares and disposed of amount	Investment gain (loss)	the most recent Shareholdings & amount in year	Mortgage	Endorsement made for the subsidiary amount	loaned to the subsidiary Amount
					0	39,015,670 shares		0
& Ta Chen Construction Engineering Corp.	\$904,975 (Note)	Operating Capital	100%	2015.8.5	0	stock capital treasury surplus	(\$60,474)	0	(Note) None	\$1,900,000 (Note)	(Note) \$0
Prince Apartment management and	\$30,000	Operating	% 100	None	0	0	0	655,424 shares	None	0	\$0
maintenance corp.	(Note)	Capital			0	0		\$6,161	(Note)	(Note)	(Note)

Note: until Apr. 30, 2016

8.4 Other Necessary Supplement: None。

PRINCE HOUSING & DEVELOPMENT CORP.

Kao-Huei, Cheng , Chairman

AI assistant

PHD — Annual Report 2015

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Spokesperson

Deputy Spokesperson

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Auditors

Corporate Website http://www. prince.com.tw

Headquarters, Branches and Plant Head Office

Taichung Branch

Tainan Branch

Kaohsiung Branch

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Corporate Governance Report III

Capital Overview IV

Review of Financial Conditions, Operating Results, and Risk Management VII

Operational Highlights V

Letter to Shareholders

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