PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND REVIEW REPORT OF INDEPENDENT ACCOUNTANTS MARCH 31, 2015 AND 2014

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

(The consolidated balance sheets as of March 31, 2015 and 2014 are reviewed, not audited) March 31, 2015 December 31, 2014 March 31, 2014 Assets Notes AMOUNT % AMOUNT % AMOUNT % Current assets Cash and cash equivalents 6(1) \$ 1,707,861 3 \$ 2,165,806 4 \$ 2,029,536 4 Financial assets at fair value through profit or loss - current 6(2) 223,999 - 238,566 - 252,036 - Notes receivable, net 6(3) 97,591 - 148,412 - 142,820 - Accounts receivable, net 6(4) 3,077,243 6 5,355,359 10 1,340,641 2 Accounts receivable - related parties 7 501,247 1 440,429 1 289,271 1 Receivables from customers on construction contracts 6(5) 862,133 2 955,890 2 895,268 2 Other receivables 9 231,214 - 285,144 - 275,363 1 Inventories, net 5(2), 6(6) and 8 21,523,036 40 20,925,619 37 17,932,423 32 Prepayments 304,966 1 429,857 1 371,587 1 Other financial assets - current 8 2,557,481 5 2,772,959 5 6,809,309 12 Other current assets, others 6(7) 589,469 1 521,804 1 771,115 1 Total current Assets 31,676,240 59 34,239,845 61 31,109,369 56 Non-current assets Financial assets at fair value through profit or loss - non-current 6(2) and 8 77,547 - 77,547 - 77,100 - Available-for-sale financial assets non-current 5(2), 6(8) and 8 1,503,021 3 1,626,078 3 1,982,371 3 Financial assets carried at cost non-current 5(2), 6(9) and 8 887,529 2 887,529 2 887,529 2 Investments accounted for under equity method 5(2), 6(10) and 8 2,215,574 4 2,182,242 4 2,157,712 4 Property, plant and equipment, net 6(11) and 8 6,894,559 13 6,957,966 12 7,075,524 13 Investment property - net 6(12) and 8 6,052,314 11 6,075,555 11 8,271,844 15 Intangible assets 6(13) 2,347,547 5 2,362,995 4 2,409,339 4 Deferred income tax assets 5(2) and 6(32) 107,970 - 108,369 - 107,789 - Refundable deposits 7 and 9 554,179 1 537,377 1 588,434 1 Other financial assets - non-current 8 1,135,797 2 911,988 2 1,084,826 2 Other non-current assets, others 89,259 - 83,477 - 128,532 - Total non-current assets 21,865,296 41 21,811,123 39 24,771,000 44 Total assets \$ 53,541,536 100 \$ 56,050,968 100 \$ 55,880,369 100

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of New Taiwan dollars)

(Continued)

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of New Taiwan dollars)

(The consolidated balance sheets as of March 31, 2015 and 2014 are reviewed, not audited)

		March 31, 2015		December 31, 2014			March 31, 2014
Liabilities and Equity	Notes	AMOUNT	%		AMOUNT	%		AMOUNT	%
Current liabilities
Short-term borrowings	6(14) and 8 \$	2,690,584	5	\$	3,305,584	6	\$	3,307,700	6
Short-term notes and bills payable	6(15) and 8	2,082,682	4		2,602,518	5		2,575,791	5
Notes payable		26,422	-		22,027	-		68,579	-
Accounts payable		3,173,119	6		4,262,318	8		2,503,782	4
Payables to customers on	6(5)
construction contracts		268,437	1		350,959	1		367,557	1
Other payables		1,025,706	2		1,094,813	2		932,415	2
Other payables - related parties	7	44,936	-		194,001	-		55,579	-
Current income tax liabilities	6(32)	147,917	-		125,602	-		57,037	-
Receipts in advance	6(16)	2,915,182	5		3,037,135	5		3,674,996	6
Long-term liabilities, current	6(18) and 8
portion		1,991,470	4		2,111,470	4		1,015,000	2
Other current liabilities, others		175,706	-		113,307	-		71,295	-
Total current Liabilities		14,542,161	27		17,219,734	31		14,629,731	26
Non-current liabilities
Bonds payable	6(17)	4,500,000	8		4,500,000	8		4,500,000	8
Long-term borrowings	6(18) and 8	7,736,949	15		7,649,449	14		11,412,578	21
Provisions for liabilities -	6(19)
non-current		83,229	-		81,720	-		81,338	-
Deferred income tax liabilities	6(32)	495,328	1		495,328	1		495,328	1
Long-term notes and accounts
payable		1,454,524	3		1,457,251	3		1,422,206	3
Net defined benefit liability -	5(2) and
non-current	6(20)	133,405	-		129,391	-		133,216	-
Guarantee deposits received		143,451	-		136,547	-		147,792	-
Other non-current liabilities, others		70,581	-		70,604	-		70,676	-
Total non-current liabilities		14,617,467	27		14,520,290	26		18,263,134	33
Total Liabilities		29,159,628	54		31,740,024	57		32,892,865	59
Equity attributable to owners of
parent
Share capital
Common stock	6(22)	16,623,418	31		16,623,418	30		16,139,241	29
Capital surplus	6(23)
Capital surplus		1,929,793	4		1,929,793	3		1,929,793	3
Retained earnings	6(24)(32)
Legal reserve		1,180,924	2		1,180,924	2		1,022,243	2
Unappropriated retained earnings		3,046,385	6		2,854,738	5		1,808,774	3
Other equity	6(25)
Other equity interest		1,313,336	2		1,436,219	3		1,789,868	3
Treasury stocks	6(22) (	60,440)	- (		60,440)	- (		60,440)	-
Equity attributable to owners
of the parent		24,033,416	45		23,964,652	43		22,629,479	40
Non-controlling interest		348,492	1		346,292	-		358,025	1
Total equity		24,381,908	46		24,310,944	43		22,987,504	41
Total liabilities and equity		\$ 53,541,536	100	\$	56,050,968	100	\$	55,880,369	100

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Expressed in thousands of New Taiwan dollars, except earnings per share) (UNAUDITED)

		For the three-month periods, ended March 31
			2015		2014 (adjusted)
	Notes		AMOUNT	%	AMOUNT	%
Operating revenue	6(27) and 7	\$	2,715,986	100 \$	2,526,642	100
Operating costs	6(6)	(	1,768,594) (	65) (	1,662,316) (	66)
Gross profit			947,392	35	864,326	34
Operating expenses	6(31) and 7
Selling expenses		(	80,823) (	3) (	54,156) (	2)
General & administrative expenses		(	581,569) (	22) (	677,541) (	27)
Total operating expenses		(	662,392) (	25) (	731,697) (	29)
Operating profit			285,000	10	132,629	5
Non-operating income and expenses
Other income	6(28)		47,295	2	196,507	8
Other gains and losses	6(2)(29)	(	48,785) (	2) (	8,165) (	1)
Finance costs	6(30)	(	94,353) (	3) (	96,785) (	4)
Share of profit/(loss) of associates and	6(10)
joint ventures accounted for under
equity method Total non-operating income and			37,250	1	19,898	1
expenses		(	58,593) (	2)	111,455	4
Profit before income tax			226,407	8	244,084	9
Income tax expense	6(32)	(	32,560) (	1) (	29,809) (	1)
Profit for the period		\$	193,847	7 \$	214,275	8
Other comprehensive income
Components of other comprehensive
income that will be reclassified to
profit or loss
Currency translation differences of
foreign operations		\$	-	- \$	1,900	-
Unrealized loss on valuation of	6(8)
available-for-sale financial assets Other comprehensive loss, net of tax		( (\$	122,883) ( 122,883) (	4) ( 4) (\$	211,669) ( 209,769) (	8) 8)
Total comprehensive income for the
period		\$	70,964	3 \$	4,506	-
Profit (loss), attributable to:
Owners of the parent		\$	191,647	7 \$	221,963	9
Non-controlling interest			2,200	- (	7,688) (	1)
		\$	193,847	7 \$	214,275	8
Total comprehensive income
attributable to:
Owners of the parent		\$	68,764	3 \$	12,220	-
Non-controlling interest			2,200	- (	7,714)	-
		\$	70,964	3 \$	4,506	-

Basic earnings per share (in dollars) Basic earnings per share	6(33)	\$		0.12 \$		0.16
Diluted earnings per share		\$		0.12 \$		0.16

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Expressed in thousands of New Taiwan dollars) (UNAUDITED)

		Equity attributable to owners of the parent
					Retained earnings		Other equity interest
	Notes	Share capital - common stock	Capital surplus - additional paid-in capital	Legal reserve	Unappropriated retained earnings	Financial statements translation differences of foreign operations	Unrealized gain or loss on available-for sale financial assets	Treasury stocks	Total		Non controlling interest	Total equity
Three-month period ended March 31, 2014
Balance at January 1, 2014		\$ 13,139,241	\$ 521,293	\$ 1,022,243	\$ 1,586,811	(\$	859 ) \$ 2,000,470	(\$	60,440 ) \$ 18,208,759	\$	365,739	\$ 18,574,498
Profit (loss) for the period	6(33)	-	-	-	221,963		- -		- 221,963	(	7,688 )	214,275
Other comprehensive income (loss) for the period	6(8)(25)	-	-	-	-		1,900 ( 211,643 )		- ( 209,743 ) (		26 ) (	209,769 )
Share - based payment transactions		-	73,500	-	-		- -		- 73,500		-	73,500
Cash capital increase		3,000,000	1,335,000	-	-		- -		- 4,335,000		-	4,335,000
Balance at March 31, 2014		\$ 16,139,241	\$ 1,929,793	\$ 1,022,243	\$ 1,808,774	\$	1,041 \$ 1,788,827	(\$	60,440 ) \$ 22,629,479	\$	358,025	\$ 22,987,504
Three-month period ended March 31, 2015
Balance at January 1, 2015		\$ 16,623,418	\$ 1,929,793	\$ 1,180,924	\$ 2,854,738	\$	1,690 \$ 1,434,529	(\$	60,440 ) \$ 23,964,652	\$	346,292	\$ 24,310,944
Profit for the period	6(33)	-	-	-	191,647		- -		- 191,647		2,200	193,847
Other comprehensive loss for the period	6(8)(25)	-	-	-	-		- ( 122,883 )		- ( 122,883 )		-	( 122,883 )
Balance at March 31, 2015		\$ 16,623,418	\$ 1,929,793	\$ 1,180,924	\$ 3,046,385	\$	1,690 \$ 1,311,646	(\$	60,440 ) \$ 24,033,416	\$	348,492	\$ 24,381,908

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in thousands of New Taiwan dollars)

(UNAUDITED)

			Three-month periods ended March 31
	Notes		2015		2014
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated profit before tax for the period		\$	226,407	\$	244,084
Adjustments to reconcile profit before tax to net cash (used in) provided
by operating activities
Income and expenses having no effect on cash flows
Share-based compensation cost	6(21)		-		73,500
Loss (gain) on financial assets at fair value through profit or loss	6(2)(29)	(	6,090 )		4,560
Write-off of uncollectible accounts	6(4)		-	(	296 )
Share of profit of associates and joint ventures accounted for under	6(10)
equity method		(	37,250 )	(	19,898 )
Loss on disposal of property, plant and equipment			492		1,939
Loss on disposal of investment property			1,256		-
Depreciation	6(31)		89,872		76,543
Amortization	6(13)(31)		15,448		16,042
Interest expense	6(30)		94,053		96,485
Interest income	6(28)	(	1,249 )	(	992 )
Dividend income	6(28)	(	28,228 )	(	176,439 )
Impairment loss on financial assets	6(8)(29)		-		11,813
Loss (gain) on unrealized foreign exchange			4,171	(	8,564 )
Changes in assets/liabilities relating to operating activities
Net changes in assets relating to operating activities
Financial assets at fair value through profit or loss - current			20,657		-
Notes receivable			50,821	(	39,301 )
Accounts receivable			2,278,116		2,396,251
Accounts receivable - related parties		(	60,818 )		494,132
Receivables from customers on construction contracts			93,757	(	81,272 )
Other receivables			52,955		31,276
Inventories		(	597,417 )	(	2,141,132 )
Prepayments			124,891		161,468
Other current assets, others		(	67,665 )	(	45,527 )
Other non-current assets, others		(	5,782 )	(	8,482 )
Net changes in liabilities relating to operating activities
Notes payable			4,395	(	6,753 )
Accounts payable		(	1,089,199 )	(	1,651,032 )
Payables to customers on construction contracts		(	82,522 )		99,066
Other payables		(	96,414 )	(	119,662 )
Other payables - related parties		(	149,065 )	(	199,020 )
Receipts in advance		(	121,953 )		504,268
Other current liabilities, others			62,399	(	27,721 )
Provisions for liabilities - non-current			1,509		2,267
Net defined benefit liability - non-current			4,014		334
Other non-current liabilities, others		(	23 )	(	105 )
Cash (used in) generated from operations			781,538	(	312,168 )
Interest received			2,224		1,062
Cash dividend received			28,228		176,439
Interest paid		(	65,709 )	(	80,015 )
Income tax paid		(	9,846 )	(	34,591 )
Net cash used in (generated from) operating activities			736,435	(	249,273 )

(Continued)

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of New Taiwan dollars)

(UNAUDITED)

				Three-month periods ended March 31
	Notes		2015		2014

CASH FLOWS FROM INVESTING ACTIVITIES
Decrease (increase) in other financial assets - current		\$	215,478	( \$	3,663,435 )
Return of share capital from available-for-sale financial assets -
non-current			-		25,000
Acquisition of property, plant and equipment	6(11)	(	5,525 )	(	22,314 )
Proceeds from disposal of property, plant and equipment			39		10,238
Proceeds from disposal of investment property			1,074		-
Acquisition of investment property	6(12)	(	560 )	(	1,484 )
Increase in intangible assets	6(13)		-	(	365 )
Increase in refundable deposits		(	16,802 )	(	52,113 )
Increase in other financial assets - non-current		(	223,809 )	(	604,258 )
Net cash used in investing activities		(	30,105 )	(	4,308,731 )
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in short-term borrowings		(	615,000 )	(	777,300 )
Increase (decrease) in short-term notes and bills payable		(	519,836 )		432,130
Decrease in long-term borrowings		(	819,100 )	(	422,499 )
Increase in long-term borrowings			786,600		888,339
Decrease in long-term notes and accounts payable		(	2,727 )	(	42,502 )
Increase in guarantee deposits received			6,904		3,664
Proceeds from cash capital increase			-		4,335,000
Changes in non-controlling interest			-	(	26 )
Net cash provided by (used in) financing activities		(	1,163,159 )		4,416,806
Effect of exchange rate changes on cash and cash equivalents		(	1,116 )		2,004
Decrease in cash and cash equivalents		(	457,945 )	(	139,194 )
Cash and cash equivalents at beginning of period			2,165,806		2,168,730
Cash and cash equivalents at end of period		\$	1,707,861	\$	2,029,536

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2015 AND 2014

(UNAUDITED)

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.
1. THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORIZATION

These consolidated financial statements were authorized for issuance by the Board of Directors on May 4, 2015.

APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards ("IFRS") as endorsed by the Financial Supervisory Commission ("FSC") 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 the "2013 version of IFRSs") in preparing the consolidated financial statements. The impact of adopting the 2013 version of IFRSs is listed below:

A. IAS 19 (revised), 'Employee benefits'

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 recognized in profit or loss. The revised standard requires that the actuarial gains and losses 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 amortized using

straight-line basis over the average period until the benefits become vested. An entity is required to recognized termination benefits at the earlier of when the entity can no longer withdraw an offer of those benefits and when it recognized any related restructuring costs, rather than when the entity is demonstrably committed to a termination. Based on the Group's assessment, the adoption of the standard has no significant impact on its consolidated financial statements, and the Group has disclosed additional information about defined benefit plans accordingly.

B. IAS 1, 'Presentation of financial statements'

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 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 Group 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, 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'

The standard defines fair value as the price that would be received to sell an asset or paid to 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 Group's assessment, the adoption of the standard has no significant impact on its consolidated financial statements, and the Group 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 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:

Effective date by

	International
New Standards, Interpretations and Amendments	Accounting Standards
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)	January 1, 2016
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, 2017
Disclosure Initiative (amendments to IAS 1)	January 1, 2016
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 Group is assessing the potential impact of the new standards, interpretations and amendments above and has not yet been able to reliably estimate their impact on the consolidated financial statements.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Except for the compliance statement, basis of preparation, basis of consolidation, and certain significant accounting policies enumerated below, the rest of the significant accounting policies are in agreement with those in Note 4 of the consolidated financial statements for the year ended December 31, 2014. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

A. The consolidated financial statements of the Group have been prepared in accordance with the "Regulations Governing the Preparation of Financial Reports by Securities Issuers" and IAS 34, 'Interim Financial Reporting' as endorsed by the FSC.

B. These consolidated financial statements should be read along with the consolidated financial statements for the year ended December 31, 2014.

(2) Basis of preparation

A. Except for the following items, these consolidated financial statements have been prepared under the historical cost convention:
(a)Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.
(b)Available-for-sale financial assets measured at fair value.
(c)Liabilities on cash-settled share-based payment arrangements measured at fair value.
(d)Defined benefit liabilities recognized based on the net amount of pension fund assets less unrecognized actuarial gains and present value of defined benefit obligation.
B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the "IFRSs") requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.
(3) Basis of consolidation
A. Basis for preparation of consolidated financial statements:

Basis for preparation of these consolidated financial statements is the same as that for preparation of the consolidated financial statements as of and for the year ended December 31, 2014.

B. Subsidiaries included in the consolidated financial statements:

		Main business		Ownership (%)
Name of investor	Name of subsidiary	activities	March 31, 2015	December 31, 2014 Description
Prince Housing & Development Corp.	Prince Property Management Consulting Co., Ltd.	Real estate managers	100	100	Note 2
	Cheng-Shi Investment Holdings Co., Ltd.	General investments	100	100
	Prince Housing Investment Co., Ltd.	Overseas investment	100	100	Note 2
	BioSun Technology Co., Ltd.	Anti-mildew's import and export	100	100	Note 2
	Prince Ta-Chen Investment Co., Ltd.	General investments	99.97	99.97	Note 2
	Dong-Feng Enterprises Co., Ltd. Housebuilders and sales		100	100	Note 2
	The Splendor Hotel Taichung	Hotels and catering	50	50	Note 1 and 2
	Time Square International Co., Ltd.	Hotels and catering	100	100	Note 2

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

housing and building

Prince Industrial Co., Ltd Development of public

and 3

100 Note 2

Ltd.

		Main business	Ownership (%)
Name of investor	Name of subsidiary	activities	March 31, 2014	Description
Prince Property Management Consulting Co., Ltd.	Prince Apartment Management Maintain Co., Ltd.	Management of apartment	100	Note 2
	Prince Security Co., Ltd.	Security	100	Note 2
Cheng-Shi Investment Holdings Co., Ltd.	Ta-Chen Construction & Engineering Corp.	Construction	100
	Prince Utility Co., Ltd.	Electricity and water pipe maintenance	100	Note 2
	Cheng-Shi Construction Co., Ltd. Construction		100	Note 2
Prince Ta-Chen Investment Co., Ltd.	Prince Capital Inc.	Overseas investment	100	Note 2
Ta-Chen Construction & Engineering Corp.	Ta-Chen International (Brunei) Corp.	Overseas investment	100	Note 2
Prince Capital Inc.	Prince Ventures USA Inc.	Overseas investment	100	Note 2
Ta-Chen International (Brunei) Corp.	Ta Chen Construction & Engineering (Vietnam) Corp.	Construction	100	Note 2

Note 1: The Group does not directly or indirectly own above 50% of voting shares of The Splendor Hotel Taichung and Splendor Assets Management Co., Ltd. However, as the Group has control over the finance and operations of the two companies, they are included in the consolidated financial statements.
Note 2: As the subsidiaries do not meet the definition of significant subsidiaries, their financial statements as of and for the three-month periods ended March 31, 2015 and 2014 were not reviewed by independent accountants.

Note 3: Liquidation was completed in the fourth quarter of 2014.

C. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustments for subsidiaries with different balance sheet dates: None.
E.Significant restrictions: None.
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) Employee benefits

Pensions – Defined benefit plans

Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. And, the related information is disclosed accordingly.

(5) Income tax

The interim period income tax expense is recognized based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.

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

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 on historical experience and other factors. Su ch assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. The above information is addressed below:

(1) Critical judgements in applying the Group's accounting policies

There is no significant change during the period. Please refer to Note 5 of the 2014 consolidated financial statements.

(2) Critical accounting estimates and assumptions
A. Impairment assessment of tangible and intangible assets (excluding goodwill)

The Group assesses impairment based on its subjective judgement and determines the separate cash flows of a specific group of assets, useful lives of assets and the future possible income and expenses arising from the assets depending on how assets are utilised and industrial characteristics. Any changes of economic circumstances or estimates due to the change of Group strategy might cause material impairment on assets in the future.

B. Impairment assessment of investments accounted for under the equity method

The Group assesses the impairment of an investment accounted for under the equity method as soon as there is any indication that it might have been impaired and its carrying amount cannot be recoverable. The Group assesses the recoverable amounts of an investment accounted for under the equity method based on the present value of the Group's share of expected future cash flows of the investee, and analyzes the reasonableness of related assumptions.

As of March 31, 2015, the Group's investments accounted for under the equity method, net of impairment loss, amounted to \$2,215,574.

C. Realisability of deferred income tax assets

Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences can be utilized. Assessment of the realisability of deferred income tax assets involves critical accounting judgements and estimates of the management, including the assumptions of expected future sales revenue growth rate and profit rate, tax exempt duration, available tax credits, tax planning, etc. Any variations in global economic environment, industrial environment, and laws and regulations might cause material adjustments to deferred income tax assets.

As of March 31, 2015, the Group recognized deferred income tax assets amounting to \$107,970.

D. 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. Due to the rapid technology innovation, the Group evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realisable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes to the evaluation.

As of March 31, 2015, the carrying amount of inventories was \$21,523,036.

E. Calculation of net defined benefit liabilities

When calculating the present value of defined pension obligations, the Group must apply judgements and estimates to determine the actuarial assumptions on balance sheet date, including discount rates and expected rate of return on plan assets. Any changes in these assumptions could significantly impact the carrying amount of defined pension obligations.

As of March 31, 2015, the carrying amount of accrued pension obligations was \$133,405.

F. Financial assets—fair value measurement of unlisted stocks without active market

The fair value of unlisted stocks held by the Group that are not traded in an active market is determined considering those companies' recent fund raising activities and technical development status, fair value assessment of other companies of the same type, market conditions and other economic indicators existing on balance sheet date. Any changes in these judgements and estimates will impact the fair value measurement of these unlisted stocks. Please refer to Note 12(3) for the financial instruments fair value information.

As of March 31, 2015, the carrying amount of unlisted stocks was \$285,691.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

	March 31, 2015		December 31, 2014		March 31, 2014
Cash on hand and revolving funds	\$	92,272		\$ 55,943	\$	50,639
Checking accounts and demand deposits		1,287,589		1,642,033		1,917,237
Time deposits		283,000		387,825		26,660
Repurchase bonds		45,000		80,005		35,000
	\$	1,707,861	\$	2,165,806	\$	2,029,536

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

Items	March 31, 2015			December 31, 2014		March 31, 2014
Current items:
Financial assets held for trading
Listed (TSE and OTC) stocks	\$	264,520	\$	264,520	\$	264,520
Mutual funds		17,008		37,665		17,665
		281,528		302,185		282,185
Financial assets held for trading
valuation adjustments	(	57,529)	(	63,619)	(	30,149)
	\$	223,999	\$	238,566	\$	252,036
Non-current items:
Financial assets held for trading
Mutual funds	\$	76,000	\$	76,000	\$	76,000
Financial assets held for trading
valuation adjustments		1,547		1,547		1,100
	\$	77,547	\$	77,547	\$	77,100

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

A.The Group recognized net (loss) gain of \$6,090 and (\$4,560) for the three-month period ended March 31, 2015 and 2014, respectively.
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.
(3) Notes receivable, net

		March 31, 2015		December 31, 2014		March 31, 2014
Notes receivable	\$	98,131	\$	148,952	\$	146,523
Less: Allowance for doubtful
accounts	(	540)	(	540)	(	3,703)
	\$	97,591	\$	148,412	\$	142,820

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, scale of business and profitability.
B. There is no movement in the allowance for doubtful accounts of notes receivable for the three-month periods ended March 31, 2015 and 2014.
C. The Group does not hold any collateral as security.

(4) Accounts receivable, net

		March 31, 2015		December 31, 2014		March 31, 2014
Accounts receivable		\$ 3,084,288	\$	5,362,404		\$ 1,347,791
Less: Allowance for doubtful	(	7,045)	(	7,045)	(	7,150)
accounts	\$	3,077,243	\$	5,355,359	\$	1,340,641

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

	March 31, 2015 December 31, 2014		March 31, 2014
Up to 60 days	\$	24,275	\$ 37,257	\$ 29,373
61 to 120 days		8,422	2,996	7,913
121 to 180 days		1,731	866	433
Over 180 days		2,530	1,836	2,026
	\$	36,958	\$ 42,955	\$ 39,745

The above is analyzed based on number of days overdue.

C. Movement analysis of financial assets (allowance for doubtful accounts) that were impaired is as follows:

	For the three-month periods ended March 31,
		2015		2014
At January 1	\$	7,045	\$	7,446
Write-offs during the period		-	(	296)
At March 31	\$	7,045	\$	7,150

The Group analyses based on any changes to credit quality in accounts receivable of individual customers from the initial granting date until the financial period-end, historical experience and current financial condition, to estimate the amount that may not be recovered.

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

(5) Construction contracts receivable (payable)

	March 31, 2015			December 31, 2014		March 31, 2014
Aggregate cost incurred plus recognized		\$ 25,085,860	\$	24,567,420		\$ 23,888,104
profits (less recognised lossses)
Less: progress billings	(	24,492,164)	(	23,962,489)	(	23,360,393)
Net balance sheet position for construction
in progress	\$	593,696	\$	604,931	\$	527,711
Presented as:
Due from customers for contract work	\$	862,133	\$	955,890	\$	895,268
Due to customers for contract work	(	268,437)	(	350,959)	(	367,557)
	\$	593,696	\$	604,931	\$	527,711

As at March 31, 2015, December 31, 2014 and March 31, 2014, the retainage relating to construction contracts amounted to \$1,309,787, \$1,517,237 and \$910,244 respectively; the advances received before the related contract works are performed amounted to \$719,619.

(6) Inventories

			March 31, 2015
			Allowance for
	Cost		valuation loss		Book value
Land held for construction site	\$ 12,929,138	(\$	65,372)		\$ 12,863,766
Construction in progress	2,857,637			-	2,857,637
Buildings and land held for sale	3,755,923	(	49,432)		3,706,491
Prepayment for land	1,478,023			-	1,478,023
Prepayment for buildings and land	582,082			-	582,082
Merchandise	35,037		-		35,037
	\$ 21,637,840	(\$	114,804)	\$	21,523,036
			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	510,880			-	510,880
Merchandise	28,914		-		28,914
	\$ 21,042,437	(\$	116,818)	\$	20,925,619

	March 31, 2014
		Allowance for
		Cost		valuation loss		Book value
Land held for construction site	\$	10,567,731		(\$ 75,803)		\$ 10,491,928
Construction in progress		3,337,944			-	3,337,944
Buildings and land held for sale		1,565,568		( 60,112)		1,505,456
Prepayment for land		1,724,006			-	1,724,006
Prepayment for buildings and land		848,318			-	848,318
Merchandise		24,771		-		24,771
	\$	18,068,338	(\$	135,915)	\$	17,932,423

A. The cost of inventories recognized as expense for the three-month periods ended March 31, 2015 and 2014 was \$1,768,594 and \$1,662,316, respectively, including the amount of \$2,014 and \$2,661, respectively that the Group wrote down from cost to net realizable value accounted for as cost of goods sold.

B. For details of pledged assets, please refer to Note 8.
C. The interest capitalized as cost of inventory is as follows:

		Three-month periods ended March 31,
	2015	2014
Interest paid before capitalization	\$ 123,983	\$ 139,448
Interest capitalized	\$ 29,930	\$ 42,963
Annual interest rate used for capitalization	1.61%-3.20%	1.32%-2.83%

D. Details of significant inventories:
(a)Buildings and land in progress

Taipei branch		March 31, 2015 December 31, 2014 March 31, 2014
Prince Yun Ding (XinZhuang Fuduxin)	\$ 1,526,420	\$ 1,501,814	\$ 1,388,098
Ling Ko Dist. Li Shing Section No. 1209, etc.	1,333,382	1,322,911	1,313,128
Prince Fu II (Taoyuan Qing Xi Section No. 462)	1,308,229	1,230,016	848,049
Prince Fu III (Taoyuan Qing Sun Section No. 446)	1,001,182	971,180	921,272
New Taipei City Shing Jheng Section No. 883, etc.	946,449	945,978	-
Jhong Li City Shuang Ling Section No. 1449, etc.	297,337	297,100	293,916
Prince Hua Wei (Shilin Dist. Zhishan Section No. 602, etc.)	51,964	48,855	45,695
Nei Hu Tanmei Section		-	- 3,166,317
Others		- 30	-
	6,464,963	6,317,884	7,976,475

Taichung branch		March 31, 2015 December 31, 2014 March 31, 2014
Ping Hsin Section No. 694, etc.	\$ 858,654	\$ 858,448	\$ -
The Cloud Century (Kao An Section No. 12-12, etc.)	834,160	698,226	627,088
Prince Yu Ding (Hui Li Section No. 195)	635,136	620,697	574,782
Chin Fon Gin (Tu Ku Section No. 8-2, etc.)	628,068	575,092	459,861
Hai Yan (Tai Huo Section No. 29)	540,300	489,564	318,750
Chaotun Section No. 755, etc.	249,557	249,147	-
Jin Shuei Dist. Wu Show Section No. 1037, No. 1038, No.1040, etc.	195,947	195,758	-
Jing Yun Sian (Tu Ku Section No. 73-11, etc.)		-	- 834,430
Others	27,674	27,422	19,520
	3,969,496	3,714,354	2,834,431
Tainan branch
Jin Hua Section No. 1361	687,232	687,232	75,586
Hsin Ying Section No. 841-9	480,924	485,101	-
Jum Fon Huei (Yu Ming Section No. 681-8)	190,918	183,812	179,033
Bei An Lot No. 56-10, etc.	118,166	51,010	-
Flower Bo Five (Hou Guan Section No. 34, No. 34-1, etc.)	62,073	62,073	62,073
Prince WIN-I Mansion (Chin An Section No. 373, etc.)		-	- 344,862
Prince WIN-W Suite (B) (Shan Chia Section No. 897, etc.)	-		- 281,485
Prince WIN-W Suite (A) (Shan Chia Section No. 923, etc.)	-		- 262,842
Ren Wu Dist. Xia Hai Lot		-	- 15,229
Others	7,364	7,364	3,524
	1,546,677	1,476,592	1,224,634
Kaohsiung branch
New Hougang West Section (No. 39-No. 76)	3,846	3,736	-
Others		- -	1
	3,846	3,736	1
Total buildings and land in progress	\$ 11,984,982	\$ 11,512,566	\$ 12,035,541

(b) Land held for construction site

Taipei branch		March 31, 2015 December 31, 2014 March 31, 2014
Bali Dist Chung Chang Section	\$ 664,098	\$	- \$	-
No.222
Zhong Li Pu Ren Lot No. 720, etc.	140,156	140,156		140,156
Others	5,978	6,274		6,274
	810,232	146,430		146,430
Taichung branch
Song Quan Lot No. 164 etc.	176,296	176,296		176,296
Wu Feng Lot No. 365~855 etc.	175,661	175,661		175,661
Song Chang Lot No. 557 etc.	19,912	19,912		19,912
Xi Zhou Lot No. 112-54 etc.	11,941	11,941		11,941
Others	24,134	24,134		24,134
	407,944	407,944		407,944
Tainan branch
Shan Zhong Lot No. 1468, 1475 & 1476 etc.	234,699	234,699		234,699
Shan Chia Section No. 939, etc.	142,789	108,111		-
New Hougang West Section No. 69, No. 70, etc.	112,876	112,876		112,876
Chin An Section No. 297, etc.	78,955	78,928		-
Xue Zhong Lot No. 679, etc.	50,798	50,798		50,798
Yong Kang Ding An Lot No. 879, etc.	28,610	28,610		28,610
Bei An Section No. 54-3, etc.	15,344	15,344		15,344
Chin An Section No. 373, etc	15,139	15,139		-
Bao An Lot No. 882, etc.	10,325	10,325		10,325
Xinying Sections No. 841-9	-		-	472,319
Others	22,058	19,360		20,615
	711,593	674,190		945,586
Kaohsiung branch
Da Hua Lot No. 434 & 436	13,923	13,923		13,923
Qian Jin Section Whn Dong Lot No. 16	-	-		14,964
	13,923	13,923		28,887
Total land held for construction site	\$ 1,943,692	\$ 1,242,487	\$	1,528,847

Taipei branch		March 31, 2015 December 31, 2014 March 31, 2014
Prince Tanmei	\$ 2,458,201	\$ 2,458,201	\$ -
Taipei Shinyi	178,874	178,874	243,206
Prince Central Park	56,530	56,530	171,250
Prince Dragon House III	42,432	42,432	44,859
Prince Da Din	12,446	12,657	12,657
Prince Guo Boa	5,738	5,738	12,602
Prince Fu		-	- 110,362
Others	546	546	727
	2,754,767	2,754,978	595,663
Taichung branch
Jing Yun Sian	323,908	458,590	-
The Cloud Century B	234,423	441,774	-
The Cloud Century C	207,326	374,356	-
Prince Fu	51,994	67,815	134,110
Prince Tao		-	- 16,969
Others	10,889	10,889	10,889
	828,540	1,353,424	161,968
Tainan branch
Tun Sha Building III	28,376	28,376	28,376
Jun Chan LV	19,725	19,725	19,725
Prince Golden Age	19,572	19,572	19,572
Prince WIN-I Mansion	17,534	61,350	-
Prince WIN-W Swite (A)	7,402	10,439	-
Prince Dragon Prince i-Cloud		- 1,081 -	7,078 - 175,215
Prince Flora II		-	- 8,890
Others	10,058	11,961	11,961
	102,667	152,504	270,817
Kaohsiung branch
Prince Hua Yang	124,092	156,111	566,293
Prince Dai Din	10,431	11,736	14,995
	134,523	167,847	581,288
Total buildings and land held for sale	\$ 3,820,497	\$ 4,428,753	\$ 1,609,736

(d) Prepayment for land

Taipei branch		March 31, 2015 December 31, 2014 March 31, 2014
Bail Dist. Chung Chang Section No. 222	\$	- \$ 66,260	\$ -
New Taipei City Shing Jheng Section
No. 883, etc.		- -	292,701
		- 66,260	292,701
Taichung branch
Chaotun Township HsinFuLiao Section	53,280	16,000	-
No. 1097, etc.
Jin Shue Dist Wu show sation
No. 1038&1040, etc.		- -	59,000
	53,280	16,000	59,000
Tainan branch
Ren Wu Dist. Xia Hai Lot No. 978, etc.	1,688,357	1,685,715	1,588,083
Others		- 2,665	2,665
	1,688,357	1,688,380	1,590,748
Total prepayment for land	\$ 1,741,637	\$ 1,770,640	\$ 1,942,449
(e) Prepayment for buildings and land
		March 31, 2015 December 31, 2014 March 31, 2014
Taisugar Kao An Section	\$ 252,098	\$ 252,098	\$ 756,571
Taisugar He Guan Section	158,042	158,042	83,089
Taisugar Nanzi Section	134,142	62,940	-
Prince Yun Ding	37,800	37,800	-
Prince Central Park		- -	8,652
Others		- -	6
	\$ 582,082	\$ 510,880	\$ 848,318

E. Disclosure of significant constructions:

(a) As of March 31, 2015, significant constructions are set forth below:

		Estimated	Percentage		Accumulated
Name of construction contract	Contract amount	construction cost	of completion		construction profit/(loss)
Tainan Spinning Dream Mall	\$ 5,029,591	\$ 4,898,454	87.71%	\$	115,020
Taipei City Hall Bus Station	4,785,639	4,677,757	99.86%		107,731
New Construction of Chaojhou Railway Station	3,888,161	3,698,014	97.84%		186,040
Tseng-Wen Reservoir	3,010,793	2,834,474	99.11%		174,750
West Coast Expressway 130K FangLi to Dia An Construction	2,058,381	1,969,741	19.74%		17,498
Taoyuan MRT Airport Line - CU03	1,595,537	1,554,941	99.96%		40,580
San Bau Bei Tou DaYe - New Construction	1,521,905	1,430,405	21.98%		20,112
Western Coast Express - WH53-1	1,307,465	1,310,496	100.00%	(	3,031)
Improvement plan for High Speed Railway ground access road	1,210,476	1,156,005	30.55%		16,641
in Changhua

(b) As of December 31, 2014, significant constructions are set forth below:

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

(c) As of March 31, 2014, significant constructions are set forth	below:
-------------------------------------------------------------------------------------------------	--------

		Estimated	Percentage	Accumulated
Name of construction contract	Contract amount	construction cost	of completion	construction profit/(loss)
Tainan Spinning Dream Mall	\$ 5,029,591	\$ 4,898,454	50.10%	\$	65,700
Taipei City Hall Bus Station	4,611,635	4,503,753	99.80%		107,666
New Construction of Chaojhou Railway Station	3,888,161	3,698,014	72.42%		137,704
Tseng-Wen Reservoir	3,010,793	2,792,474	96.61%		210,918
West Coast Expresswary 130K FangLi to Dia An Construction	2,058,381	1,969,741	0.21%		186
Taoyuan MRT Airport Line - CU03	1,595,537	1,554,946	99.43%		40,360
San Bau Bei Tou Da Ye - New Construction	1,521,905	1,430,405	3.82%		3,495
Western Coast Express - WH53-1	1,307,465	1,298,401	100.00%		9,064
Improvement plan for High Speed Railway ground access road in Changhua	1,210,476	1,156,005	0.42%		229

(7) Other current assets

Items	March 31, 2015		December 31, 2014		March 31, 2014
Deferred sales commission	\$	561,299	\$	507,245	\$	740,637
Others		28,170		14,559		30,478
	\$	589,469	\$	521,804	\$	771,115
(8) Available-for-sale financial assets
Items		March 31, 2015		December 31, 2014		March 31, 2014
Non-current items:
Listed ( TSE and OTC ) stocks	\$	153,845	\$	153,845	\$	211,885
Emerging stocks		3,940		3,940		7,341
Unlisted stocks		39,927		40,101		40,101
		197,712		197,886		259,327
Adjustment of financial assets held for trading		1,305,309		1,428,192		1,723,044
	\$	1,503,021	\$	1,626,078	\$	1,982,371

A. The Group recognized \$122,883 and \$211,643 in other comprehensive loss for fair value change for the three-month periods ended March 31, 2015 and 2014, respectively.

B. The fair value of the Group's certain available-for-sale financial assets declined significantly below its initial investment cost. The Group therefore recognized impairment loss of \$11,813 for the year ended December 31, 2014, including the amount of \$11,813 that was transferred from equity to profit or loss.

C. Details of the Group's available-for-sale financial assets pledged to others as collateral are provided in Note 8.

(9) Financial assets measured at cost

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

A. 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 assets'. However, as President Energy Development Ltd. and President International Development Corp. stocks are not traded in an active market, and the fair value of the investment in President Energy Development Ltd. and President International Development Corp. stocks cannot be measured reliably. The Group classified those stocks as 'financial assets measured at cost'.

B. Details of the Group's financial assets measured at cost pledged to others as collateral are provided in Note 8.

(10) Investments accounted for under the equity method

		March 31, 2015		December 31, 2014	March 31, 2014
Name of subsidiaries and associates	Carrying amount	Percentage of Carrying ownership	amount	Percentage of Carrying ownership	amount	Percentage of ownership
Geng-Ding Co., Ltd.	\$ 331,756	30.00%	\$ 326,959	30.00%	\$ 320,687	30.00%
Uni-President Development Corp.	1,329,849	30.00%	1,311,431	30.00%	1,249,068	30.00%
Amida Truslink Assets Management Co., Ltd.	36,198	45.21%	36,198	45.21%	74,797	45.21%
PPG Investment Inc.	12,181	27.27%	17,859	27.27%	58,928	27.27%
Queen Holdings Ltd.	337,469	27.27%	338,663	27.27%	305,599	27.27%
Ming-Da Enterprise Co., Ltd.	168,121	20.00%	151,132	20.00%	148,633	20.00%
	\$ 2,215,574		\$ 2,182,242		\$ 2,157,712

A. The basic information of the associates that are material to the Group is as follows:

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

B. The summarized financial information of the associates that are material to the Group is as follows:

	Uni President Development Corp.
		March 31, 2015		December 31, 2014		March 31, 2014
Current assets	\$	1,273,215	\$	1,157,049	\$	1,265,230
Non-current assets		9,104,069		9,209,813		9,526,405
Current liabilities	(	3,196,272)	(	2,898,391)	(	3,108,126)
Non-current liabilities	(	2,748,183)	(	3,097,036)	(	3,519,950)
Total net assets	\$	4,432,829	\$	4,371,435	\$	4,163,559
Share in associate's net assets	\$	1,329,849	\$	1,311,431	\$	1,249,068

	Uni President Development Corp.
		Three-month periods ended March 31,
	2015	2014
Revenue	\$ 264,957	\$ 264,596
Profit for the period from continuing operations	\$ 57,207	\$ 54,177
Total comprehensive income	\$ 57,207	\$ 54,177

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 March 31, 2015, December 31, 2014 and March 31, 2014, the carrying amount of the Group's individually immaterial associates amounted to \$885,725, \$870,811 and \$908,644, respectively.

	Three-month periods ended March 31,
	2015	2014
Profit or loss for the period from continuing	\$ 191,651	\$ 58,435
operations
Total comprehensive income	\$ 191,651	\$ 58,435

D. The Group's investments had no quoted market price.

E. Investments accounted for using equity are based on unreviewed financial statements of each investee. Share of profit of associates recognized was \$37,250 and \$19,898 for the three-month periods ended March 31, 2015 and 2014, respectively. Balance of investments was \$2,215,574 and \$2,157,712 as of March 31, 2015 and 2014, respectively. Certain investments accounted for using equity method as of December 31, 2014 are based on financial statements audited by other independent accountants, the related investments amounted to \$719,679.
F. Details of the Group's investments accounted for under the equity method pledged to others as collateral are provided in Note 8.

(11) Property, plant and equipment

A. Information of book values are as follows:

	March 31, 2015	December 31, 2014		March 31, 2014
Land	\$ 2,858,947	\$ 2,858,947	\$	2,859,896
Buildings	3,515,185	3,557,664		3,579,814
Machinery and equipment	9,450	9,809		10,678
Computer and communication equipment	18,347	19,727		16,279
Transportation equipment	4,285	4,333		4,270
Office equipment	415,533	434,321		408,067
Leasehold improvements	-		-	-
Other equipment	69,764	70,571		79,414
Construction in progress and prepayments
for equipment	3,048	2,594		117,106
	\$ 6,894,559	\$ 6,957,966	\$	7,075,524

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

					Three-month period ended March 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	1,108	(	1,653)		-	4,465,004
Machinery and equipment	14,476		-		-	-	14,476
Computer and communication equipment	59,714		-		-	-	59,714
Transportation equipment	11,729		- (	252)		-	11,477
Office equipment	788,300	2,976	(	527)		-	790,749
Leasehold improvements	47,000		-		-	-	47,000
Other equipment	90,999	987	(	531)		-	91,455
Construction in progress and
prepayments for equipment	2,594	454		-	-		3,048
	\$ 8,339,308	\$ 5,525 (\$		2,963)	\$ -	\$	8,341,870
					Three-month period ended March 31, 2014
	Opening net						Closing net
Cost	book amount	Additions		Disposals	Reclassifications		book amount
Land	\$ 2,790,924	\$	- (\$	255)	\$ 69,227	\$	2,859,896
Buildings	4,355,227	600	(	3,028)	35,789		4,388,588
Machinery and equipment	14,286		-		-		14,286
Computer and communication equipment	52,016	137			-	-	52,153
Transportation equipment	11,587		-		-	-	11,587
Office equipment	785,304	6,612	(	90,984)		-	700,932
Leasehold improvements	47,000		-		-	-	47,000
Other equipment	95,208	3,203	(	2,362)		-	96,049
Construction in progress and
prepayments for equipment	105,344	11,762		-	-		117,106
	\$ 8,256,896	\$ 22,314	(\$	96,629)	\$ 105,016	\$	8,287,597

Accumulated depreciation	Opening net book amount	Additions		Disposals		Reclassifications		Closing net book amount

Buildings	\$ 907,885	\$ 43,587 (\$		1,653)		\$		- \$ 949,819
Machinery and equipment	4,667	359			-		-	5,026
Computer and communication equipment	39,987	1,380			-		-	41,367
Transportation equipment	7,396			48 ( 252)			-	7,192
Office equipment	353,979	21,764 (		527)			-	375,216
Leasehold improvements	47,000		-		-		-	47,000
Other equipment	20,428	1,263		-		-		21,691
	\$ 1,381,342	\$ 68,401	(\$	2,432)	\$	-	\$	1,447,311

Three-month period ended March 31, 2015

	Three-month period ended March 31, 2014
	Opening net							Closing net
Accumulated depreciation	book amount		Additions		Disposals	Reclassifications		book amount
Buildings	\$ 769,370		\$ 42,418 (\$		3,014)	\$		- \$ 808,774
Machinery and equipment	3,255		353			-		- 3,608
Computer and communication equipment	34,673		1,201			-		- 35,874
Transportation equipment	7,182		135			-		- 7,317
Office equipment	363,515				10,351 ( 81,001)			- 292,865
Leasehold improvements	47,000			-		-		- 47,000
Other equipment	17,003		69	(	437)		-	16,635
	\$ 1,241,998	\$	54,527	(\$	84,452)	\$	-	\$ 1,212,073

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

(12) Investment property

A. Information of book values are as follows:

	March 31, 2015	December 31, 2014	March 31, 2014
Land	\$ 203,494	\$ 203,494		\$ 1,721,268
Leased assets-land	2,592,306	2,592,342		3,204,530
Leased assets-buildings	3,256,514	3,279,719		3,346,046
	\$ 6,052,314	\$ 6,075,555	\$	8,271,844

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

					Three-month period ended March 31, 2015
	Opening net						Closing net
Cost	book amount	Additions		Disposals	Reclassifications		book amount
Land	\$ 203,494	\$		- \$	- \$		- \$ 203,494
Leased assets-land	2,592,342			- ( 36)		-	2,592,306
Leased assets-buildings	3,941,750	560	(	2,719)	-		3,939,591
	\$ 6,737,586	\$ 560	(\$	2,755)	\$ -	\$	6,735,391
					Three-month period ended March 31, 2014
	Opening net						Closing net
Cost	book amount	Additions		Disposals	Reclassifications		book amount
Land	\$ 1,741,924	\$		- \$	- (\$ 20,656)		\$ 1,721,268
Leased assets-land	3,204,530		-		-	-	3,204,530
Leased assets-buildings	3,949,804	1,484		-	-		3,951,288

\$ 8,896,258 1,484\$ -\$ 20,656)(\$ \$ 8,877,086

					Three-month period ended March 31, 2015
	Opening net					Closing net
Accumulated depreciation	book amount	Additions		Disposals	Reclassifications	book amount
Leased assets-buildings	\$ 662,031	\$ 21,471	(\$	425)	\$ -	\$ 683,077
					Three-month period ended March 31, 2014
	Opening net					Closing net
Accumulated depreciation	book amount	Additions		Disposals	Reclassifications	book amount
Leased assets-buildings	\$ 583,226	\$ 22,016	\$	-	\$ -	\$ 605,242

C. Rental income from the lease of the investment property and direct operating expenses arising from the investment property are shown below:

	Three-month period ended March 31,
		2015	2014
Rental revenue from the lease of the investment property	\$	86,106 \$	92,877
Direct operating expenses arising from the investment property that generated rental income in the period	\$	37,612 \$	36,965
Direct operating expenses arising from the investment property that did not generate rental income in the
period	\$	- \$		-

D. As of March 31, 2015, December 31, 2014 and March 31, 2014, the Group's investment property was \$12,930,160 \$12,935,936 and \$15,031,447, respectively. The Group'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 in Note 8.

(13) Intangible assets

A.Information of book values are as follows:

	March 31, 2015	December 31, 2014	March 31, 2014
Service concession	\$ 2,346,379	\$ 2,361,692	\$ 2,407,631
Software	739	803	994
Licences	429	500	714
	\$ 2,347,547	\$ 2,362,995	\$ 2,409,339

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

	Three-month period ended March 31, 2015
	Opening net								Closing net
Cost	book amount		Additions		Disposals		Reclassifications		book amount
Service concession	\$ 2,868,372	\$		- \$		- \$		- \$	2,868,372
Software	19,559			- (	17,169)			-	2,390
Licences	3,139		-		-		-		3,139
	\$ 2,891,070	\$		- (\$	17,169)	\$	-	\$	2,873,901

					Three-month period ended March 31, 2014
Cost	Opening net book amount	Additions		Disposals	Reclassifications		Closing net book amount
Service concession	\$ 2,868,372	\$	- \$		- \$	- \$	2,868,372
Software	18,189	365			-	-	18,554
Licences	3,139	-		-	-		3,139
	\$ 2,889,700	\$ 365	\$	-	\$ -	\$	2,890,065
					Three-month period ended March 31, 2015
	Opening net						Closing net
Accumulated Amortization	book amount	Additions		Disposals	Reclassifications		book amount
Service concession	\$ 506,680	\$ 15,313	\$		- \$	- \$	521,993
Software	18,756	64	(	17,169)		-	1,651
Licences	2,639	71		-	-		2,710
	\$ 528,075	\$ 15,448	(\$	17,169)	\$ -	\$	526,354
					Three-month period ended March 31, 2014
	Opening net						Closing net
Accumulated Amortization	book amount	Additions		Disposals	Reclassifications		book amount
Service concession	\$ 445,427	\$ 15,314	\$		- \$	- \$	460,741
Software	16,902	658			-	-	17,560
Licences	2,355	70		-	-		2,425
	\$ 464,684	\$ 16,042	\$	-	\$ -	\$	480,726

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

		Three-month periods ended March 31,
	2015	2014
Operating costs	\$ 15,313	\$ 15,314
Administrative expenses	135	728
	\$ 15,448	\$ 16,042

(14) Short-term borrowings

	March 31, 2015	December 31, 2014	March 31, 2014
Secured borrowings	\$ 1,480,000	\$ 1,682,500	\$ 2,096,000
Unsecured borrowings	1,210,584	1,623,084	1,211,700
	\$ 2,690,584	\$ 3,305,584	\$ 3,307,700
Interest rate range	1.92%~2.64%	1.92%~2.59%	1.45%~2.53%

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

(15) Short-term notes and bills payable

		March 31, 2015		December 31, 2014		March 31, 2014
Commercial papers	\$	2,085,000	\$	2,605,000	\$	2,579,000
Less: Unamortized discount	(	2,318)	(	2,482)	(	3,209)
	\$	2,082,682	\$	2,602,518	\$	2,575,791
Interest rate range		0.79%~2.48%		0.79%~2.48%		0.78%~2.25%

A. The above commercial papers were issued by banks and bills financial institutions.

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

(16) Receipts in advance

Items	March 31, 2015	December 31, 2014	March 31, 2014
Advance real estate receipts	\$ 2,648,982	\$ 2,728,482	\$ 3,407,320
Advance rent	155,435	192,169	157,391
Other advance receipts	110,765	116,484	110,285
	\$ 2,915,182	\$ 3,037,135	\$ 3,674,996
(17) Bonds payable
	March 31, 2015	December 31, 2014	March 31, 2014
2012 1st secured ordinary
bonds payable	\$ 2,000,000	\$ 2,000,000	\$ 2,000,000
2013 1st secured ordinary
bonds payable	2,500,000	2,500,000	2,500,000
	\$ 4,500,000	\$ 4,500,000	\$ 4,500,000

A. The Group issued secured ordinary bonds payable in July 2012. The significant terms of the bonds are as follows:
(a)Total issue amount: \$2,000,000
(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 Group 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.

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

(18) Long-term borrowings

		March 31, 2015		December 31, 2014		March 31, 2014
Secured bank borrowings		\$ 9,348,419	\$	9,313,419		\$ 12,127,578
Unsecured bank borrowings		380,000		447,500		300,000
		9,728,419		9,760,919		12,427,578
Less: Current portion	(	1,991,470)	(	2,111,470)	(	1,015,000)
	\$	7,736,949	\$	7,649,449	\$	11,412,578
Range of maturity dates		2015.05.15~2027.11.02		2015.03.18~2027.11.02		2014.07.29~2027.11.02
Range of maturity rates		1.82%~3.16%		1.82%~3.16%		1.82%~3.16%

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

B. For details of restrictive covenants, please refer to Note 9.

(19) Provisions-replacement cost

		Three-month periods ended March 31,
		2015	2014
At January 1	\$	81,720 \$	79,071
Additions		7,523	6,755
Used	(	6,014) (	4,488)
At March 31	\$	83,229 \$	81,338

(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 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.

(b)For the aforementioned pension plan, the Group recognized pension costs of \$948 and \$1,192 for the three-month periods ended March 31, 2015 and 2014, respectively.
(c)Expected contributions to the defined benefit pension plans of the Group for the year ended December 31, 2016 amounts to \$3,793.
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 Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.
(b)The pension costs under the defined contribution pension plans of the Company and its domestic subsidiaries for the three-month periods ended March 31, 2015 and 2014 were \$14,221 and \$15,333, respectively.
(21) Share-based payment-employee compensation plan
A. For the three-month period ended March 31, 2015, the Group's share-based payment: None.
B. For the three-month period ended March 31, 2014, the Group's share-based payment arrangement were as follows:

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

Note: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:

		Stock	Exercise	Expected	Expected	Expected	Risk-free	Fair price
Arrangement type	Grant date	price	price	volatility	duration	dividend	interest rate	per unit
Capital increase in	2014.01.13	16.85NT	14.45NT	23.50%	0.19 year		- 0.40%	2.45NT
cash reserved for				(Note)
employees

Note: Expected volatility is estimated based on the Company's average stock price for the latest year before the grant date.

D. For the three-month period ended March 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

A. Movements in the number of the Company's ordinary shares outstanding are as follows:

⁽Units: in thousand shares)

	Three-month periods ended March 31,
	2015	2014
At January 1	\$ 1,662,342	\$ 1,313,924
Capital increase	-	300,000
At March 31	\$ 1,662,342	\$ 1,613,924

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 was 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 was completed.
D. As of March 31, 2015, the Company's authorized capital was \$20,000,000, and the paid-in capital was \$16,623,418 with a par value of NT\$10 (in dollars) per share, consisting of 1,662,342 thousand shares of ordinary stock.
E. As of March 31, 2015, December 31, 2014 and March 31, 2014, the Company's subsidiaries Ta-Chen Construction & Engineering Corp. and Prince Apartment Management Maintain Co., Ltd. held the Company's stocks for maintaining equity interest in the Company. The amount of shares held by the subsidiaries was 39,671 thousand, 39,671 thouusand and 38,516 thousand, the average par value was NT\$1.52, NT\$1.52 and NT1.57 per share, and the fair value was NT\$12.95, NT\$12.70 and NT\$14.80 per share respectively.

(23) Capital surplus

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 Group 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.

	Share	Trading
2015	premium	treasury stock	Others	Total
At January 1, 2015 (At March 31, 2015)	\$ 1,408,500	\$ 514,061	\$ 7,232	\$ 1,929,793
			Capital surplus
	Share premium	Trading treasury stock	Treasury share transactions	Others	Total
2014
At January 1, 2014	\$	- \$ 514,061	\$	- \$ 7,232	\$ 521,293
Share-based payment of cash capital increase reserved for employees pre-emption	-		- 73,500		- 73,500
Cash capital increase	\$ 1,408,500	-	( 73,500)	-	1,335,000
At March 31, 2014	\$ 1,408,500	\$ 514,061	\$ -	\$ 7,232	\$ 1,929,793

(24) Retained earnings

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 distributable earnings, and cash dividend is at least 30% of the total stock dividend and bonus; except for dividend distribution, the appropriation of earnings is proposed by the Board of Directors and resolved by the shareholders. The remuneration to directors and supervisors is 3% of the distributable earnings and the bonus to employees is at least 2% of the distributable earnings. The receipts of the above employees' bonus must include employees who satisfy certain conditions and are qualified as the Company's employees.
B. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their

share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company's paid-in capital.

C.(a)In accordance with the regulations, the Group shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.
(b)The amounts previously set aside by the Company as special reserve on initial application of IFRSs in accordance with Jin-Guan-Zheng-Fa-Zi Letter No. 1010012865, dated April 6, 2012, shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently. Such amounts are reversed upon disposal or reclassified if the assets are investment property of land, and reversed over the use period if the assets are investment property other than land.
D.Employees' bonus for the three-month periods ended March 31, 2015 and 2014 are estimated and accrued at \$3,891 and \$3,245, respectively, and directors' and supervisors' remuneration for the three-month periods ended March 31, 2015 and 2014 are estimated and accrued at \$5,836 and \$4,868, respectively. The basis of estimates is based on a certain percentage of net income taking into account the legal reserve and other factors prescribed by the Company's Articles of Incorporation (2% and 3% of after-tax earnings of 2014 and 2013, respectively). The difference between employees' bonus (directors' and supervisors' remuneration) as resolved by the stockholders and the amount recognized in the 2013 financial statements by \$2,976 had been adjusted in the 2014 statement of comprehensive income. Information about the appropriation of employees' 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.
E.The Company recognized dividends distributed to owners amounting to \$968,354 (\$0.6 (in dollars) per share) for the year ended December 31, 2014. On March 20, 2015, the Board of Directors proposed that total dividend for the distribution of earnings for 2014 was \$1,329,873 with \$0.8 (in dollars) per share. These financial statements do not reflect the dividends payable.
(25) Other equity items

		Available-for-sale	Currency
		investment	translation		Total
At January 1, 2015	\$	1,434,529	\$ 1,690	\$	1,436,219
Available-for-sale investment:
-Loss on fair value	(	122,883)	-	(	122,883)
At March 31, 2015	\$	1,311,646	\$ 1,690	\$	1,313,336

		Available-for-sale	Currency
		investment	translation		Total
At January 1, 2014	\$	2,000,470 (\$	859)	\$	1,999,611
Available-for-sale investment:
-Loss on at fair value	(	211,643)		- (	211,643)
Currency translation differences:
-Group		-	1,900		1,900
At March 31, 2014	\$	1,788,827	\$ 1,041	\$	1,789,868

(26) Maturity analysis of assets and liabilities

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 months from the balance sheet date is as follows:

	Within 12 months	Over 12 months		Total
March 31, 2015
Assets
Notes receivable, net	\$ 84,941	\$ 256	\$	85,197
Accounts receivable, net (including related parties)	2,381,909	991,508		3,373,417
Inventories	6,739,184	14,748,815		21,487,999
Construction contract receivables	508,125	354,008		862,133
	\$ 9,714,159	\$ 16,094,587	\$	25,808,746
	Within 12 months	Over 12 months		Total
March 31, 2015
Liabilities
Notes payable	\$ 12,264	\$	- \$	12,264
Accounts payable	2,047,286	957,300		3,004,586
Construction contract payables	131,377	137,060		268,437
	\$ 2,190,927	\$ 1,094,360	\$	3,285,287

	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
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
	Within 12 months	Over 12 months		Total
March 31, 2014
Assets
Notes receivable, net	\$ 88,271	\$ 3,942	\$	92,213
Accounts receivable, net (including related parties)	334,927	786,376		1,121,303
Inventories	7,269,484	10,638,168		17,907,652
Construction contract receivables	568,400	326,868		895,268
	\$ 8,261,082	\$ 11,755,354	\$	20,016,436
	Within 12 months	Over 12 months		Total
March 31, 2014
Liabilities
Notes payable	\$ 11,028	\$	- \$	11,028
Accounts payable	1,211,788	1,082,052		2,293,840
Construction contract payables	150,687	216,870		367,557
	\$ 1,373,503	\$ 1,298,922	\$	2,672,425

(27) Operating revenue

		Three-month periods ended March 31,
	2015	2014
Sales revenue	\$ 1,625,631	\$ 1,508,640
Service revenue	123,337	129,496
Construction contract revenues	876,494	798,444
Service concession revenue
-Operating service revenue	90,524	90,062
	\$ 2,715,986	\$ 2,526,642

(28) Other income

		Three-month periods ended March 31,
	2015	2014
Interest income	\$ 1,249	\$ 992
Dividend income	28,228	176,439
Others	17,818	19,076
	\$ 47,295	\$ 196,507

Three-month periods ended March 31,

(29) Other gains and losses

		2015	2014
Net (losses) gains on financial liabilities at fair	\$	6,090	(\$ 4,560)
value through profit or loss
Net currency exchange gains (losses)	(	4,030)	8,310
Arbitration expenses and compensation loss (Note 1)	(	51,335)	-
Impairment of financial assets (Note 2)		- (	11,813)
Others		490 (	102)
	(\$	48,785)	(\$ 8,165)

Note 1: Please refer to Note 9(14) for details. Note 2: Please refer to Note 6(8) for details.

(30) Finance costs

		Three-month periods ended March 31,
	2015	2014
Interest expense:
Bank borrowings	\$ 52,723	\$ 53,250
Commercial paper	10,193	12,296
Ordinary bond	30,194	30,194
Others	943	745
Other finance expenses	300	300
	\$ 94,353	\$ 96,785

(31) Expenses by nature

			Three-month period March 31, 2015
	Operating costs	Operating expenses		Total
Employee benefit expense
Wages and salaries	\$ 314,302	\$	141,492	\$ 455,794
Labor and health insurance fees	17,384		12,397	29,781
Pension costs	7,955		7,214	15,169
Other employee benefit expense	1,186		11,325	12,511
	\$ 340,827	\$	172,428	\$ 513,255
Depreciation charges	\$ 21,471	\$	68,401	\$ 89,872
Amortization charges	\$ 15,313	\$	135	\$ 15,448

		Three-month period March 31, 2014
	Operating costs	Operating expenses	Total
Employee benefit expense
Wages and salaries	\$ 223,029	\$ 205,923	\$ 428,952
Labor and health insurance fees	18,053	12,187	30,240
Pension costs	9,133	7,392	16,525
Other employee benefit expense	2,253	8,503	10,756
	\$ 252,468	\$ 234,005	\$ 486,473
Depreciation charges	\$ 22,016	\$ 54,527	\$ 76,543
Amortization charges	\$ 15,314	\$ 728	\$ 16,042

(32) Income tax

A. Income tax expense

(a)Components of income tax expense:

	Three-month periods March 31, 2015 2015 2014 \$ 17,956 \$ 7,473 6,732

Current tax:
Current tax on profits for the year				18,172
Over provision of prior year's income tax				539
Land value increment tax recognized in income tax of the period				10,804
Total current tax		32,161		29,515
Deferred tax:
Origination and reversal of temporary differences		4,212		294
Net operating loss carryforward	(	3,813)		-
Total deferred tax		399		294
Income tax expense	\$	32,560	\$	29,809

B. As of March 31, 2015, the Company's income tax returns through 2013 have been assessed and approved by the Tax Authority. As the National Taxation Bureau has assessed and deducted the investment loss stated in the 2013 income tax returns, the Company believes there is a miscalculation and has filed for reassessment. However, as the Company adopts the conservatism principle, the related income tax expense has been accrued.

C. Unappropriated retained earnings:

	March 31, 2015		December 31, 2014	March 31, 2014
Earnings generated in and after 1998	\$ 3,046,385	\$	2,854,738	\$	1,808,774

D.As of March 31, 2015, December 31, 2014 and March 31, 2014, the balance of the imputation tax credit account was \$9,923, \$9,524 and \$716, respectively. The creditable tax rate was 1.79% for 2013 and is estimated to be 1.48% for 2014. The amount of deductible tax distributable by the Company to its shareholders shall be limited to an amount not exceeding the amount of the imputation tax credit account balance on the date of distribution of the dividends. Accordingly, the actual creditable ratio for the distribution of 2013 undistributed earnings will be based on the imputation tax credit account balance up to the date of distribution of the dividends.

(33) Earnings per share

		Three-month period ended March 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	\$ 191,647	1,622,671	\$ 0.12
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	\$ 191,647	1,622,671
Assumed conversion of all dilutive
potential ordinary shares
Employees' bonus	-	3,896
Profit attributable to ordinary shareholders of the parent plus assumed conversion
of all dilutive potential ordinary shares	\$ 191,647	1,626,567	\$ 0.12

		Three-month period ended March 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	\$ 221,963	1,358,303	\$ 0.16
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	\$ 221,963	1,358,303
Assumed conversion of all dilutive
potential ordinary shares
Employees' bonus	-	2,339
Profit attributable to ordinary shareholders of the parent plus assumed conversion
of all dilutive potential ordinary shares	\$ 221,963	1,360,642	\$ 0.16

The above weighted-average outstanding common shares have been adjusted retroactively in proportion to retained earnings as of December 31, 2013.

(34) Operating leases

The Company's subsidiary leases in office and business office 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 rental expenses of both \$96,811 for the three-month periods ended March 31, 2015 and 2014. The future aggregate minimum lease payments under non-cancellable operating leases are as follows:

	March 31, 2015	December 31, 2014	March 31, 2014
Not later than one year	\$ 398,021	\$ 397,174	\$ 387,243
Later than one year but not			2,016,052
later than five years	2,026,537	2,023,995
Later than five years	6,285,523	6,388,205	6,694,028
	\$ 8,710,081	\$ 8,809,374	\$ 9,097,323

(35) Non-cash transactions

Investing and financing activities with no cash flow effects:

				For the three-month periods ended March 31,
		2015		2014
1.Investment property reclassified to construction -use land	\$		- \$	20,656
2.Buildings and land held for sale reclassified to property, plant and equipment	\$		- \$	105,016
7. RELATED PARTY TRANSACTIONS
(1) Significant related party transactions and balances
A. Sales of goods:
(a)Rental income:
				Three-month periods ended March 31,
Construction subcontracting	2015			2014
-Associates	\$	91,640	\$	435,661

The 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.

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

		March 31, 2015		December 31, 2014			March 31, 2014
Associates:
Total amount of construction contracts that were signed but had not been settled yet	\$	11,073,692	\$		11,073,692	\$	11,073,692
Construction payments received	(	10,120,484)	(		9,882,922)	(	8,041,192)
Construction payments receivable	\$	953,208	\$		1,190,770	\$	3,032,500
(b)
							Three-month periods ended March 31,
Rental income:			2015			2014
-Associates		\$		12,495	\$		12,108
Rent is determined by mutual agreements and is collected monthly.
B. Accounts receivable
		March 31, 2015		December 31, 2014			March 31, 2014
Accounts receivable-related parties:
-Associates	\$	501,247	\$		440,429	\$	289,271
C. Other payables
		March 31, 2015		December 31, 2014			March 31, 2014
Rental payable:
-Associates	\$	44,936	\$		194,001	\$	55,579
E. Others
(a)
							Three-month periods ended March 31,
			2015			2014
Rental expenses:
-Associates		\$		143,889	\$		144,073
(b)
		March 31, 2015		December 31, 2014			March 31, 2014
Refundable deposits:
-Associates	\$	67,591	\$		65,695	\$	67,020

E. On June 20, 2006, the Company and CHINA METAL PRODUCTS CO., LTD. ("A party") jointly signed a creditor's rights transfer contract with AMIDA TRUST LINK 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 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. On December 29, 2006, the Company and A party signed an additional contract following the original contract with B party to raise total acquisition price of the creditor's rights to \$4,750,000 (the Company and A party bear 50% of the price each). As of December 31, 2012, the Company had paid its share.
F. Certain short and long-term borrowings of the Company were guaranteed by its chairman and general manager.

			Three-month periods ended March 31,
	2015		2014
Salaries and other short-term employee benefits	\$ 7,143	\$	5,499
Termination benefit		-	-
Post-employment benefits		-	-
Other long-term benefits		-	-
Share-based payment	-		35,403
	\$ 7,143	\$	40,902

(2)Key management compensation

8. PLEDGED ASSETS

The Group's assets pledged as collateral are as follows:

Pledged asset	March 31, 2015	December 31, 2014	March 31, 2014	Purpose
Demand deposits, certificate of deposit and checking deposit (shown as "other financial assets - current" and "other financial assets - non-current")	\$ 3,693,278	\$ 3,684,947	\$ 7,894,135	To obtain a higher credit for client, performance guarantee, construction performance guarantee, short-term and long-term borrowings, short-term commercial papers issue, member reward points and gift coupons trust account
Financial assets at fair value through profit or loss	77,547	77,547		77,100 Construction performance guarantees, short-term and long-term borrowings
Land held for construction	6,064,724	6,300,506		6,863,803 Short-term borrowings, notes and bills payable and long-term borrwings
Construction in progress	1,419,577	1,275,593		2,768,401 Short-term borrowings, notes and bills payable and long-term borrwings
Available-for-sale financial assets	925,938	1,033,280		1,483,129 Short-term borrowings, notes and bills payable
Financial assets carried at cost	575,426	575,426		575,426 Short-term borrowings, notes and bills payable
Investments accounted for under equity method	1,550,640	1,120,379		1,462,320 Short-term borrowings, notes and bills payable
Land	2,883,788	2,883,788		2,884,737 Construction performance guarantees, short-term borrowings, notes and bills payable and long-term borrowings
Buildings	2,085,390	2,103,423		2,150,119 Short-term borrowings, notes and bills payable and long-term borrowings
Investment property	4,077,499	4,807,921		6,675,508 Construction performance guarantees, short-term borrowings, notes and bills payable and long-term borrowings
	\$ 23,353,807	\$ 23,862,810	\$ 32,834,678

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

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

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

		March 31, 2015		December 31, 2014	March 31, 2014
	Total		Total		Total
	endorsement	Amount	endorsement	Amount	endorsement	Amount
Name of company	amount	drawn	amount	drawn	amount	drawn
The Splendor Hotel Taichung	\$ 2,000,000	\$ 1,752,610	\$ 2,000,000	\$ 1,773,973	\$ 2,000,000	\$ 1,756,229
Ta-Chen Construction & Engineering Corp.	1,900,000	100,000	1,900,000	160,256	1,900,000	698,572
	\$ 3,900,000	\$ 1,852,610	\$ 3,900,000	\$ 1,934,229	\$ 3,900,000	\$ 2,454,801

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

		March 31, 2015		December 31, 2014		March 31, 2014
	Total			Total
	endorsement	Amount	endorsement	Amount	endorsement	Amount
Name of company	amount	drawn	amount	drawn	amount	drawn
Dong-Feng Enterprises Co., Ltd.	\$ 1,810,889	\$ 1,810,889	\$ 1,810,889	\$ 1,810,889	\$ 1,810,889	\$ 1,810,889
Jin Yi Xing Plywood Co., Ltd.	2,500,000	2,086,198	2,500,000	2,086,198	2,500,000	830,889
Ta-Chen Construction & Engineering Corp.	927,889		- 927,889		- 927,889	-
Prince Utility Co., Ltd.	900,000	638,763	900,000	638,763	900,000	638,763
	\$ 6,138,778	\$ 4,535,850	\$ 6,138,778	\$ 4,535,850	\$ 6,138,778	\$ 3,280,541

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 was committed to give the Splendor Hotel financial support for its continuing operations for one year 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:

	March 31, 2015		December 31, 2014	March 31, 2014
Property, plant and equipment	\$	130,221	\$ 337,710	\$	85,383

(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.
(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:
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 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 March 31, 2015, December 31, 2014 and March 31, 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%;
(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 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 right for this project, and let A party use the land by way of registration of the superficies; 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 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 March 31, 2015, December 31, 2014 and March 31, 2014, A party had provided performance guarantee with a guarantee letter issued by the bank, all 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, according to the superficies contract signed by the two parties, A party should pay B party land rentals from the registration of superficies.
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/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 long-term (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 University. During the loan period, the Company should maintain financial commitments such 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 non-consolidated financial statements. If the Company violates the above financial commitments, it shall improve its

financial position by capital increase or other ways before the end of October of the following year from the year of violation; it would not be regarded as a default if the managing bank confirms that its financial position has improved completely. In case of violation, interest on the loans would be charged at the loan rate specified in the contract plus additional 0.25% per annum from the notification date of the managing bank to the completion date of financial improvement 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 National Cheng Kung University. During the loan period, the Company should maintain financial 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. If the Company violates the above financial commitments, it shall improve its financial position by capital increase or other ways before the end of October of the following year from the year of violation; it would not be regarded as a default if the bank confirms that its financial position has improved completely. In case of violation, interest on the loans would be charged at the loan rate specified in the contract plus additional 0.25% per annum from the notification date of the bank to the completion date of financial improvement or to the date the Company obtains a waiver from 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.
(10)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 compensation for price fluctuations or other reasons. Further, under the contract, the Company shall give TSC performance guarantee amounting to \$181,090, respectively, 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:

	March 31, 2015	December 31, 2014	March 31, 2014
Lot No.12-12 , and No.601-1 Guo- An
Sec., Xitun District, Taichung City	\$ 181,090	\$ 181,090	\$ 181,090

(11)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 installments according to the contractual terms. The Company had provided such performance guarantee with guarantee letter of the bank as follows:

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

(12)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 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 March 31, 2015, December 31, 2015 and March 31, 2014, balance of the performance bonds were as follows:

	March 31, 2015		December 31, 2014	March 31, 2014
Nos. 602, Sec. Zhi-Shan 1, Shilin
District, Taipei City	\$	350,000	\$ 350,000	\$	350,000
Nos. 572, Sec. Zhi-Shan 1, Shilin
District, Taipei City	\$	19,570	\$ 19,570	\$	19,570

(13)As of March 31, 2015, December 31, 2014 and March 31, 2014, performance guarantee letters issued for construction undertaking, warranty and leases of subsidiary, Ta-Chen Construction & Engineering Corp., amounted to \$723,416, \$780,581 and \$972,382, respectively.
(14)The Subsidiary, Ta-Chen Construction & Engineering Corp. ("Ta-Chen"), and Hung-Yi Construction Corp. and Evergreen International Engineering Corp. (collectively referred herein as the joint constructors) 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, Ta-Chen has paid the settlement on behalf of the joint constructors. Ta-Chen planned to request Evergreen International Engineering to pay all payments on behalf of other joint contractions. As of December 31, 2014, payments on behalf of other joint contractors recognized as other receivables were \$221,100. As joint contractors have arguments toward the contract, Ta-Chen has filed an arbitration application to the Chinese Arbitration Association, Taipei, and received an arbitration award on March 27, 2015 which, Evergreen International Engineering shall pay Ta-Chen a total amount of \$169,765 along with interest at 5% per annum from December 17, 2013 until the date of payment. Ta-Chen has written off related other receivables and recognized arbitration loss of \$51,335 (shown as other gains and losses) in the first quarter of 2015. However, as the amount in the arbitration award may have been miscalculated and Ta-Chen applied for correcting the amount to \$201,427. The ruling for application has yet to be made.

(15)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 construction is not completed in the prescribed period.
(16)On May 27, 2011, subsidiary, The Splendor Hotel Taichung, signed a syndicated loan contract with 3 banks, SinoPac Bank, etc., in the amount of \$3.3 billion, 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 criteria as specified in the contract. If the subsidiary violates above financial commitments, the 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) demand the subsidiary's

payment of the promissory note acquired under the loan contract; 5) exercise creditor's right of mortgage, pledge right, other rights or contract transfer right; 6) exercise other rights given by the laws, the loan contract and other relevant documents; 7) take other actions as resolved by the majority of the consortium.

SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

In order to integrate resources to increase operation performances and competition, the Board of Directors has resolved to merge the Company and the subsidiary–Prince Ta-Chen Investment Co., Ltd.. Prince Ta-Chen Investment Co., Ltd. will be the dissolved company while the Company will be the surviving company. The merger is temporarily set to be effective on May 12, 2015. The Company's chairman is authorized to proceed with the necessary procedures if there is any need to change the date or any unfinished issue.

12. OTHERS

(1) Capital management

The Group's capital management is to ensure it has sufficient financial resource and operating 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 operating.

(2) Financial instruments

A. Fair value information of financial instruments

The carrying amount of cash and cash equivalents and financial instruments measured at recognized cost (including notes and accounts receivable, other receivables, short-term borrowings, short-term notes and bills payable, notes and accounts payable and other payables) 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
(a)The Group's activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group's financial position and financial performance.
(b) Risk management is carried out by a central treasury department (Group's finance & accounting division) under policies approved by the Board of Directors. Group's finance & 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 foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

C. Significant financial risks and degrees of financial risks
(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 are required to manage their entire foreign exchange risk exposure with the Group finance & 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. Borrowings issued at variable rates expose the Group to cash flow interest rate risk which is partially offset by cash and cash equivalents held at variable rates. Borrowings issued at fixed rates expose the Group to fair value interest rate risk. The Group's 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 profit for the three-month periods ended March 31, 2015 and 2014 would have been \$12,419 and \$15,735 lower/higher, respectively.

Price risk

The Group's 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 point and it was assessed that the Group was not exposed to significant price risk. If the prices of these equity securities had increased/decreased by 10% with all other variables held constant, pre-tax profit for the three-month periods ended March 31, 2015 and 2014 would both have increased/decreased by \$35,753 and \$35,819, 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 \$19,771 and \$29,933, respectively, as a result of gains/losses on equity securities classified as available-for-sale.

(b) Credit risk

i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. Credit risk arises from cash and deposits with banks and financial institutions, including 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 was not exposed to significant credit risk from receivables.
iii. For the three-month periods ended March 31, 2015 and 2014, the management does not expect any significant losses from non-performance by these counterparties.
(c) Liquidity risk
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 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 the table are the contractual undiscounted cash flows.

	March 31, 2015
		Within 1 year		Between 1 to 3 years	Over 3 years
Non-derivative financial liabilities:
Short-term borrowings	\$	2,692,968	\$		- \$	-
Short-term notes and bills payable		2,085,000			-	-
Notes payable		26,422			-	-
Accounts payable		2,215,628		321,973		635,518
Other payables		1,065,136		5,417		89
Guarantee deposits received		91,356		20,385		31,710
Bonds payable		65,350		2,130,700		2,538,750
Long-term borrowings (including current portion)		1,997,830		2,410,944		6,242,296

		December 31, 2014
	Within 1 year	Between 1 to 3 years		Over 3 years
Non-derivative financial liabilities:
Short-term borrowings	\$ 3,374,853	\$	- \$	-
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	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
		March 31, 2014
	Within 1 year	Between 1 to 3 years		Over 3 years
Non-derivative financial liabilities:
Short-term borrowings	\$ 3,328,390	\$	- \$	-
Short-term notes and bills payable	2,579,000		-	-
Notes payable	27,674	32,725		8,180
Accounts payable	1,786,099	429,573		288,110
Other payables	987,083	857		54
Guarantee deposits received	87,848	25,758		34,186
Bonds payable	65,350	130,700		4,656,350
Long-term borrowings (including current portion)	983,452	6,391,870		5,390,232

(3) Fair value estimation

A. Details of the fair value of the Group'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 Group's investment property measured at cost are provided in Note 6(12).
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:
Level 1: Inputs that are quoted prices (unadjusted) in active markets for identical assets or liabilities. A market is regarded as active if it meets all the following conditions: the items traded in the market are homogeneous; willing buyers and sellers can normally be found at any time; and prices are available to the public. The fair value of the Group's investment in listed stocks and beneficiary certificates is included in Level 1.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices).
Level 3: Inputs for the asset or liability that are not based on observable market data. The fair value of the Group's investment in equity investment without active market is included in Level 3.
D. 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 March 31, 2015, December 31, 2014 and March 31, 2014 is as follows:

March 31, 2015	Level 1	Level 2	Level 3	Total
Assets:
Recurring fair value measurements
Financial assets at fair value
through profit or loss
Equity securities	\$ 301,546	\$	- \$	- \$ 301,546
Available-for-sale financial assets
Equity securities	1,217,330	-	285,691	1,503,021
	\$ 1,518,876	-	\$ 285,691	\$ 1,804,567
December 31, 2014	Level 1	Level 2	Level 3	Total
Assets:
Recurring fair value measurements
Financial assets at fair value
through profit or loss
Equity securities	\$ 316,113	\$	- \$	- \$ 316,113
Available-for-sale financial assets
Equity securities	1,349,481	-	276,597	1,626,078
	\$ 1,665,594	-	\$ 276,597	\$ 1,942,191
March 31, 2014	Level 1	Level 2	Level 3	Total
Assets:
Recurring fair value measurements
Financial assets at fair value
through profit or loss
Equity securities	\$ 329,136	\$	- \$	- \$ 329,136
Available-for-sale financial assets
Equity securities	1,816,471	-	165,900	1,982,371
	\$ 2,145,607	-	\$ 165,900	\$ 2,311,507

E. 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 listed below by characteristics:

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

(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

Group's credit quality.

F. For the three-month periods ended March 31, 2015 and 2014, there was no transfer between Level 1 and Level 2.
G. The following chart is the movement of Level 3 for the three-month periods ended March 31, 2015 and 2014:

			Three-month periods ended March 31,
	2015		2014
	Non-derivative equity		Non-derivative equity
	instrument		instrument
At January 1	\$ 276,597	\$	285,365
Gains and losses recognised in other comprehensive income (Note )	9,094	(	94,465)
Proceeds from capital reduction	-	(	25,000)
March 31	\$ 285,691	\$	165,900
Movement of unrealised gain or loss in profit or loss of assets and liabilities held as at March 31, 2015	\$ -	\$	-

Note: Recorded as unrealised valuation gain or loss of available-for-sale financial assets.

H. For the three-month periods ended March 31, 2015 and 2014, there was no transfer into or out from Level 3.
I. 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.
J. 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:

	Fair value at March 31, 2015	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
Non-derivative equity
Unlisted shares	\$ 285,691	Net asset value	Net asset value	N/A	The higher the net asset value, the higher the fair value

K. 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 difference 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:

					March 31, 2015
				Recognised in profit or loss		Recognised in other comprehensive income
	Input	Change	Favourable change	Unfavourable change	Favourable change	Unfavourable change
Financial assets Equity instrument	43,867	±1%	\$ -	\$ -	\$ 439	(\$ 439)
				December 31,2014
				Recognised in profit or loss		Recognised in other
	Input	Change	Favourable change	Unfavourable change	Favourable change	Unfavourable change
Financial assets Equity instrument	44,041	±1%	\$ -	\$ -	\$ 440	(\$ 440)
					March 31, 2015
				Recognised in profit or loss		Recognised in other
	Input	Change	Favourable change	Unfavourable change	Favourable change	Unfavourable change
Financial assets Equity instrument	47,442	±1%	\$ -	\$ -	\$ 474	(\$ 474)

13. SUPPLEMENTARY DISCLOSURES

Pursuant to the disclosure requirement, under the Securities and Exchange Regulations, significant transactions for the three-month period ended March 31, 2015 were as follows. The financial information of investees was based on reviewed or unreviewed financial statements. Inter-company transactions are eliminated. The following disclosures are for reference only.

(1) Significant transactions information

A. Loans to others:

					Maximum outstanding		Actual			Amount of		Allowance
				Is a	balance during	Balance at	amount			transactions	Reason	for		Limit on loans	Ceiling on
Number			General ledger	related	the three-month period	March	drawn	Interest	Nature of	with the	for short-term	doubtful	Collateral	granted to	total loans
(Note 1)	Creditor	Borrower	account	party	ended March 31, 2015	31, 2015	down	rate	loan	borrower	financing	accounts	Item Value	a single party	granted	Note
0	Prince Housing & Development Corp.	Ta-Chen Construction & Engineering Corp.	Other receivables - related parties	Yes	\$ 200,000	200,000\$	\$	-	2.7 Short-term financing		-\$ Additional operating capital	-\$	- -\$	\$ 500,000	\$ 9,613,367	Note 2
1	Prince Security Co., Ltd.	Prince Property Management Consulting Co., Ltd.	Other receivables - related parties	Yes	15,000	15,000			- 2.7 Short-term financing	-	Additional operating capital	-	- -	30,000		77,060 Note 3

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

(1) The Company is '0'.

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

Note 2: In accordance with the Group's related regulations, the total amount for loan is 40% of its net worth.

Note 3: In accordance with Prince Security Co., Ltd.'s related regulations, the total amount for loan is 40% of its net worth; limit on loans as short-term financing to any single entity with is \$30,000.

B. Provision of endorsements and guarantees to others:

		Party being
		endorsed/guaranteed			Maximum
					outstanding	Outstanding			Ratio of accumulated		Provision of	Provision of	Provision of
			Relationship	Limit on	endorsement/	endorsement/		Amount of	endorsement/	Ceiling on	endorsements/	endorsements/	endorsements/
			with the	endorsements/	guarantee	guarantee		endorsements/	guarantee amount	total amount of	guarantees by	guarantees by	guarantees to
			endorser/	guarantees	amount as of	amount at	Actual	guarantees	to net asset value	endorsements/	parent	subsidiary to	the party in
Number	Endorser/	Company	guarantor	provided for a	March 31,	March 31,	amount	secured with	of the endorser/	guarantees	company to	parent	Mainland
(Note 1)	guarantor	name	(Note 2)	single party	2015	2015	drawn down	collateral	guarantor company	provided	subsidiary	company	China	Note
0	Prince Housing & Development Corp.	Ta-Chen Construction & Engineering Corp.	3	\$ 4,806,683	\$ 1,900,000	\$ 1,900,000	\$ 100,000	\$	- 8%	\$ 12,016,708	Y	N	N	Notes 3 and 4
0	Prince Housing & Development Corp.	The Splendor Hotel Taichung	6	4,806,683	2,000,000	2,000,000	1,752,610		- 8%	12,016,708	Y	N	N	Notes 3 and 4
1	Dong-Feng Enterprises Co., Ltd.	Prince Housing & Development Corp.	4	2,000,000	1,810,889	1,810,889	1,810,889		- 672%	4,000,000	N	Y	N	Note 5
2	Prince Utility Co., Ltd.	Prince Housing & Development Corp.	4	1,000,000	900,000	900,000	638,763		- 980%	2,000,000	N	Y	N	Note 6
3	Jin-Yi-Xing plywood Co., Ltd.	Prince Housing & Development Corp.	4	2,500,000	2,500,000	2,500,000	2,086,198		- 749%	5,000,000	N	Y	N	Note 7
4	Ta-Chen Construction & Engineering Corp.	Prince Housing & Development Corp.	4	1,500,000	927,889	927,889		-	- 111%	3,000,000	N	Y	N	Note 8
5	Prince Apartment Management Maintain Co.,Ltd.	Prince Security Co., Ltd.	3	20,000	20,000	20,000	10,000		28% -	50,000	N	N	N	Note 9

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

(1) The Company is '0'.

(2) The subsidiaries are numbered in order starting from '1'

Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following six categories:

(1) Having business relationship.

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

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

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

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

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

Note 3: In accordance with the Group's related regulations, the total amount of transactions of endorsements and guarantees and the limit of endorsements and guarantees for any single entity is 20% of the Company's net worth.

Note 4: In accordance with the Group's related regulations, the total accumulated amount of transactions of endorsements and guarantees cannot exceed 50% of the Group's net worth.

Note 5: In accordance with Dong-Feng Enterprises Co., Ltd. related regulations, the limit of endorsements and guarantees for any single entity is \$2,000,000; the total accumulated amount is \$4,000,000.

Note 6: In accordance with Prince Utility Co., Ltd. related regulations, the limit of endorsements and guarantees for any single entity is \$1,000,000; the total accumulated amount is \$2,000,000.

Note 7: In accordance with Jin-Yi-Xing plywood Co., Ltd. related regulations, the limit of endorsements and guarantees for any single entity is \$2,500,000; the total accumulated amount is \$5,000,000.

Note 8: In accordance with Ta-Chen Construction & Engineering Corp. related regulations, the limit of endorsements and guarantees for any single entity is \$1,500,000; the total accumulated amount is \$3,000,000.

Note 9: In accordance with Prince Apartment Management Maintain Co., Ltd.'s related regulations, the limit of endorsements and guarantees for any single entity is \$20,000; the total accumulated amou n t i s \$ 5 0 ,00 0 .

							As of March 31, 2015
	Marketable		Relationship with the		Number of
Securities held by	securities	Name of investee companies	securities issuer	General ledger account	shares	Book value	Ownership(%)	Fair value	Note
Prince Housing &	Stock	Nantex Industry Co., Ltd.	None	Available-for-sale	6,375,534	\$ 109,022	Note 1	\$ 17.10	Listed company,
Development Corp.				financial assets - non-current					Note 3
	Stock	ScinoPharm Taiwan, Ltd.	None	Available-for-sale	20,985,578	1,039,835	Note 1		49.55 Listed company,
				financial assets - non-current					Note 4
	Stock	Simplo Technology Co., Ltd.	None	Available-for-sale	127,249	19,978	Note 1		157.00 OTC company
				financial assets - non-current
	Stock	Advanced Wireless	None	Available-for-sale	197,937	13,519	Note 1		68.30 OTC company
		Semiconductor Company		financial assets - non-current
	Stock	Trade-Van Information Service	None	Available-for-sale	85,535	2,344	Note 1		27.40 Listed company
		Co., Ltd.		financial assets - non-current
	Stock	Actherm Inc.	None	Available-for-sale	34,441	1,202	Note 1		34.90 OTC company
				financial assets - non-current
	Stock	Genome International Biomedical	None	Available-for-sale	1,311	51	Note 1		38.90 OTC company
		Co., Ltd.		financial assets - non-current
	Stock	Universal Venture Capital	None	Available-for-sale	1,400,000	14,054	Note 1	10.04
		Investment Corp.		financial assets - non-current
	Stock	Grand Bills Finance Corp.	None	Available-for-sale	48,672	770	Note 1	15.81
				financial assets - non-current
	Stock	Chipwell Tech. Corp.	None	Available-for-sale	279,227	1,618	Note 1	5.79
				financial assets - non-current
	Stock	Nanmat Technology Co., Ltd.	None	Available-for-sale	1,198,956	14,034	Note 1	11.71
				financial assets - non-current
	Stock	Southern Science Joint	None	Available-for-sale	167,700	241,750	10.00	1,441.56
		Development Co., Ltd.		financial assets - non-current
	Stock	President Energy Development Ltd.	None	Financial assets measured at	1,190,000	34,523	Note 1	88.09
				cost - non-current
	Stock	President International	None	Financial assets measured at	87,745,770	841,520	6.63	10.88	Note 5
		Development Corp.		cost - non-current
	Stock	Jia-Cheng Venture Capital	None	Financial assets measured at	759,024		- Note 1	Note 2
		Investment Co., Ltd.		cost - non-current
	Stock	Jia-Hua Venture Capital	None	Financial assets measured at	1,211,228		- 7.90	Note 2
		Investment Co., Ltd.		cost - non-current
	Stock	Ever-Move Technology Co., Ltd.	None	Financial assets measured at	3,076		- Note 1	Note 2
				cost - non-current
	Stock	Chuang-Jing Technology Co.,	None	Financial assets measured at	12,645		- Note 1	Note 2
				cost - non-current

C. Holding of marketable securities at the end of the year (not including subsidiaries, associates and joint ventures):

							As of March 31, 2015
	Marketable		Relationship with the		Number of
Securities held by	securities	Name of investee companies	securities issuer	General ledger account	shares	Book value	Ownership (%)	Fair value	Note
Prince Housing & Development Corp.	Stock	Bao-Mao Technology Co., Ltd.	None	Financial assets measured at cost - non-current	27,933	\$	- Note 1	Note 2
	Stock	Jie-Lun Technology Co., Ltd.	None	Financial assets measured at cost - non-current	17,280		- Note 1	Note 2
	Stock	Quan-Mao Technology Inc.	None	Financial assets measured at cost - non-current	341,745		- Note 1	Note 2
	Stock	Wei-Jun Technology Co., Ltd.	None	Financial assets measured at cost - non-current	1,846		- Note 1	Note 2
	Stock	Chieh-Cheng Technology Co., Ltd.	None	Financial assets measured at cost - non-current	41,343		- Note 1	Note 2
	Fund	Mega Diamond Money Market Fund	None	Financial assets at fair value through profit or loss -	6,301,406	77,547	Note 1	\$ 12.32
Ta-Chen Construction & Engineering Corp.	Stock	Prince Housing & Development Corp.	Parent company	non-current Financial assets at fair value through profit or loss - current	39,015,670	505,253	Note 1	12.95	Note 6
	Stock	Nantex Industry Co., Ltd.	None	Financial assets at fair value through profit or loss - current	11,231,982	192,067	Note 1	17.10	Note 7
	Fund	Yuanta Global Realty & Infrastructure	None	Financial assets at fair value through profit or loss - current	1,000,000	8,800	Note 1	8.80
	Stock	Acc. Chipwell Tech. Corp.	None	Available-for-sale financial assets - non-current	349,990	2,026	Note 1	5.79
	Stock	Nanmat Technology Co., Ltd.	None	Available-for-sale financial assets - non-current	1,344,624	17,077	5.52	11.71
Prince Housing Investment Co., Ltd.	Stock	Tou Itsu Investments Inc.	None	Available-for-sale financial assets - non-current	600		19 15.00	US\$1.00
Prince Ta-Chen Investment Co., Ltd.	Stock	Da-Hung Technology Co., Ltd.	None	Financial assets measured at cost - non-current	300,000		- Note 1	Note 2
	Stock	Ever-Move Technology Co., Ltd.	None	Financial assets measured at cost - non-current	395,890		- Note 1	Note 2
	Stock	Ke-Ya Technology Co., Ltd.	None	Financial assets measured at cost - non-current	18,525		- Note 1	Note 2
	Stock	President Energy Development Ltd.	None	Financial assets measured at cost - non-current	490,000	11,486	Note 1	88.09

							As of March 31, 2015
Securities held by	Marketable securities	Name of investee companies	Relationship with the securities issuer	General ledger account	Number of shares	Book value	Ownership (%)	Fair value	Note
Prince Ta-Chen Investment Co., Ltd.	Stock	Actherm Inc.	None	Available-for-sale financial assets - non-current	17,317	\$ 555	Note 1	\$ 34.90
	Stock	Chipwell Tech. Corp.	None	Available-for-sale financial assets - non-current	65,261	378	Note 1	5.79
	Stock	Chuang-Ching Software Co.,	None	Available-for-sale financial assets - non-current	116,741	1,636	Note 1	14.02
	Stock	Formosoft International Inc.	None	Available-for-sale financial assets - non-current	55,920	721	Note 1	12.89
	Fund	Taiwan Best Selection	None	Financial assets at fair value through profit or loss - current	500,000	7,615	Note 1	16.38
	Stock	Genome International Biomedical Co., Ltd.	None	Financial assets at fair value through profit or loss - current	92		3 Note 1	38.90
	Stock	Holux Technology Inc.	None	Financial assets at fair value through profit or loss - current	279,509	3,264	Note 1	16.25
Prince Apartment Management Maintain Co., Ltd.	Stock	Prince Housing & Development Corp.	Parent company	Available-for-sale financial assets - non-current	655,424	8,324	Note 1	12.95
	Stock	Tainan Spinning Co., Ltd.	None	Available-for-sale financial assets - non-current	120,992	2,250	Note 1	16.25
Dong-Feng Enterprises Co., Ltd.	Stock	Synta Pharmaceuticals Corp.	None	Available-for-sale financial assets - non-current	180,000	15,121	Note 1	84.01
	Stock	Nantex Industry Co., Ltd.	None	Available-for-sale financial assets - non-current	163,736	2,636	Note 1	17.10
	Stock	Sung Gang Asset Management Co., Ltd.	None	Available-for-sale financial assets - non-current	47,968	825	Note 1	17.20
Prince Security Co., Ltd.	Stock	Nanmat Technology Co., Ltd.	None	Available-for-sale financial assets - non-current	179,283	1,600	Note 1	11.71
Early Success Investments Ltd.	Stock	Synta Pharmaceuticals Corp.	None	Financial assets at fair value through profit or loss - current	154,800	9,385	Note 1	84.01
Prince Ventures USA Inc.	Stock	Synta Pharmaceuticals uticals Corp.	None	Financial assets at fair value through profit or loss - current	5,000	792	Note 1	84.01
	Fund	SHORT TERM US TERAS ISS CLASS	None	Financial assets at fair value through profit or loss - current	1	2,073	Note 1	2,073

Note 1:Percentage of Company's ownership is less than 5%.

Note 2:We have not received the financial statements from management. Thus the net value cannot be measured.

Note 3:4,088,451 shares of outstanding common stock were used as collateral for loan.

Note 4:17,276,000 shares of outstanding common stock were used as collateral for loan.

Note 5:60,000,000 shares of outstanding common stock were used as collateral for loan.

Note 6:33,763,397 shares of outstanding common stock were used as collateral for loan.

Note 7:10,000,000 shares of outstanding common stock were used as collateral for loan.

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:

								If the counterparty is a related party,information as to
								last transaction of the real estate is disclosed below;
							Original owner	Relationship		Basis or	Reason for
						Relationship	who sold the real	between the	Date of the	reference	acquisition of
Real estate		Date of the	Transaction	Status of		with the	estate to the	original owner	original	used in setting	real estate and status	Other
	acquired by Real estate acquired	event	amount	payment	Counterparty	counteroarty	counterparty	and the acquirer	transaction Amount	the price	of the real estate	commitments
Prince Housing & Development Corp.	Bail Dist. Chung Chang Section No.222	2015/03/03 (Note 1)	664,098		664,098 New Taipei City Government	Third party	-	-	-	\$ - Market value	For operating use	None
Prince Housing & Development Corp.	Ren Wu Dist. Xia Hai Lot No.978, etc.	2013/06/14 (Note 2)	(Note 3)	1,106,022	Redevelopment zone of Xia Hai Term, Renwu District, Kaohsiung City	Third party	-	-	-		- (Note 3) For operating use	None

Note 1: The transfer of title took place on settlement date.

Note 2: The signing date of the contract.

Note 3: In ordering to purchase 67.13% of areas from the north side of the offset-expenditure land in the redevelopment zone, the transaction amount was the expected price includes compensation for demolition to all land owners of north side of the offset-expenditure land, compensation for demolition to owners of parkland to be (67.13%), construction expenses in all regions (67.13%) and interests arising from re-planning committee's borrowing from the Group to pay aforementioned expenses.

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:

								Differences in transaction terms
					Transaction		compared to third party transactions			Notes/accounts receivable (payable)
		Relationship			Percentage of					Percentage of total notes/accounts
		with the	Purchases		total purchases					Purchaser/seller Counterparty
Purchaser/seller	Counterparty	counterparty	(sales)	Amount	(sales)	Credit term	Unit price	Credit term	Balance	receivable (payable)	Note
Prince Housing	Cheng-Shi	Subsidiary	Purchases	\$ 136,900	11%	Note 1	Note 2	Note 2	(\$ 22,628)	1%
& Development	Construction
Corp.	Co., Ltd.

Note 1: Progress payments were made in accordance with the contract terms.

Note 2: It is reasonable compared to the normal trading terms.

						Overdue receivables
		Relationship	Balance as at March 31,			Amount	Amount collected subsequent to	Allowance for
Creditor	Counterparty	with the counterparty	2015	Turnover rate	Amount	Action taken	the balance sheet date	doubtful accounts
Prince Housing & Development Corp.	The Splender Hotel Taichung	Subsidiary	Other assets - obligation receivables	-	\$	- -	\$ -	\$ -
Prince Housing & Development Corp.	Jin Yi Xing Plywood Co., Ltd.	Subsidiary	\$ 575,000 Other assets - obligation receivables	-		- -	-	-
Prince Utility Co., Ltd.	Prince Housing & Development Corp	Subsidiary	\$ 462,074 Accounts receivable	0.21		- -	25,720	-
Ta-Chen Construction & Engineering Corp.	Tainan Spinning Co., Ltd.	Affiliated company	\$ 125,849 Accounts receivable	0.15	-	-	8,027	-
			\$ 485,719

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

I. Derivative financial instruments undertaken during the three-month period ended March 31, 2015: None.

J. Significant inter-company transactions during three-month period ended March 31, 2015:

Transactions amount between the Company and subsidiaries exceeding \$100 million or 20% of the Company's contributed capital are as follows:

					Unit:Thousands of dollars
Number	Company Name	Counterparty	Relationship	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets
0	Prince Housing & Development Corp.	Ta-Chen Construction & Engineering Corp.	The Company to the consolidated subsidiaries	Endorsement and guarantee	\$ 100,000	In accordance with endorsement and guarantee procedures	0.19%
0	Prince Housing & Development Corp.	Prince Utility Co., Ltd.	The Company to the consolidated subsidiaries	Accounts payable	125,849	-	0.24%
0	Prince Housing & Development Corp.	Cheng-Shi Construction Co., Ltd.	The Company to the consolidated subsidiaries	Purchases		136,900 Negotiated terms	5.04%
0	Prince Housing & Development Corp.	Cheng-Shi Construction Co., Ltd.	The Company to the consolidated subsidiaries	Construct in progress	477,929	-	0.89%
0	Prince Housing & Development Corp.	The Splender Hotel Taichung	The Company to the consolidated subsidiaries	Endorsement and guarantee	1,752,610	In accordance with endorsement and guarantee procedures	3.27%
0	Prince Housing & Development Corp.	The Splender Hotel Taichung	The Company to the consolidated subsidiaries	Other assets - obligation receivables		575,000 Creditor's rights purchase contract	1.07%
0	Prince Housing & Development Corp.	Jin Yi Xing Plywood Co., Ltd.	The Company to the consolidated subsidiaries	Other assets - obligation receivables		462,074 Creditor's rights purchase contract	0.86%
0	Prince Housing & Development Corp.	Jin Yi Xing Plywood Co., Ltd.	The Company to the consolidated subsidiaries	Prepayment for land		263,614 Negotiated terms	0.49%
1	Dong-Feng Enterprises Co., Ltd.	Prince Housing & Development Corp.	The consolidated subsidiaries to the Company	Endorsement and guarantee	1,810,889	In accordance with endorsement and guarantee procedures	3.38%
1	Prince Utility Co., Ltd.	Prince Housing & Development Corp.	The consolidated subsidiaries to the Company	Endorsement and guarantee	638,763	In accordance with endorsement and guarantee procedures	1.19%
1	Jin Yi Xing Plywood Co., Ltd.	Prince Housing & Development Corp.	The consolidated subsidiaries to the Company	Endorsement and guarantee	2,086,198	In accordance with endorsement and guarantee procedures	3.90%

Note: Significant inter-company transactions during the three-month period ended March 31, 2015 are disclosed as those transactions are the same but only recorded from the counterparties' side.

(2)Information on investees

Information on investee companies and locations, etc. (not including investees in Mainland China) as:

				Initial investment amount			Shares held as at March 31, 2015			Investment income
									Net profit (loss) of	(loss) recognized by
									the investee for the	the Company for
									three-month period	the three-month
				Balance as at	Balance as at				ended March 31,	period ended March
Investor	Investee	Location	Main business activities	March 31, 2015		January 1, 2015 Number of shares Ownership		Book value	2015	31, 2015	Note
Prince Housing & Development Corp.	Cheng-Shi Investment Holdings Co., Ltd.	Taiwan	General investments	\$ 1,381,950	\$ 1,381,950	121,007,230	100.00%	\$ 506,762	\$ 50,260	\$ 42,783	Notes 1 and 2
	Prince Property Management Consulting Co., Ltd.	Taiwan	Management and consulting	181,000	181,000	17,146,580	100.00%	261,705	4,454		4,609 Notes 1 and 2
	Geng-Ding Co., Ltd.	Taiwan	Hotels and catering	120,000	120,000	18,000,000	30.00%	331,756	15,989	4,797	Note 4
	Prince Housing Investment Co., Ltd.	Britsh Virgin Islands	Overseas investment	140,413	140,413		428 100.00%	338,442	( 2,954)	( 2,954)	Note 2
	BioSun Technology Co., Ltd.	Taiwan	Anti-mildew's import and export	1,000	1,000	100,000	100.00%	1,005		-	- Note 2
	Prince Ta-Chen Investment Co., Ltd.	Taiwan	General investments	198,940	198,940	12,270,100	99.97%	56,563	8,229	5,814	Note 2
	Dong-Feng Enterprises Co., Ltd.	Taiwan	Housebuilders and sales	876,431	876,431	17,300,000	100.00%	76,631	3,043		3,043 Notes 1 and 2
	Uni-President Development Corp.	Taiwan	Leasing of buildings	1,080,000	1,080,000	108,000,000	30.00%	1,329,849	57,207	18,418	Note 5
	The Splender Hotel Taichung	Taiwan	Hotels and catering	975,000	975,000	97,500,000	50.00%	347,285	4,352	2,176	Note 2
	Time Square International Co., Ltd.	Taiwan	Hotels and catering	600,000	600,000	64,200,000	100.00%	415,167	54,599	54,599	Note 2
	Jin Yi Xing Plywood Co., Ltd.	Taiwan	Manufacture of plywoods	636,194	636,194	151,468	99.65%	677,391	3,414	3,402	Note 2
	Early Success Investments Ltd. Britsh Virgin	Islands	Overseas investment	33,018	33,018	1,554,660	100.00%	9,411	( 3,465)	( 3,465)	Note 2
	Ming-Da Enterprise Co., Ltd.	Taiwan	Real estate trading	127,400	127,400	7,024,618	20.00%	168,121	179,279	16,989
	Prince Industrial Co., Ltd.	Taiwan	Development of public housing and building	10,000	10,000	1,000,000	100.00%	9,601	(	14) (	14) Note 2
Cheng-Shi Investment Holdings Co., Ltd.	Ta-Chen Construction & Engineering Corp.	Taiwan	Construction	1,191,591	1,191,591	124,000,000	100.00%	880,561	43,818		- Notes 2 and 3
	Prince Utility Co., Ltd.	Taiwan	Electricity and water pipe	56,025	56,025	3,070,000	100.00%	89,277	2,406		- Notes 2 and 3
	Cheng-Shi Construction Co., Ltd.	Taiwan	maintenance Construction	108,027	108,027	10,100,000	100.00%	151,151	4,041		- Notes 2 and 3
Ta-Chen Construction & Engineering Corp.	Ta-Chen International (Brunei) Corp.	Brunei	Overseas investment	9,316	9,316	318,000	100.00%	4,567	49		- Notes 2 and 3

				Initial investment amount			Shares held as at March 31, 2015		Investment income
					Balance as at		Balance as at				Net profit (loss) of the investee for the three-month period	(loss) recognized by the Company for the three-month
					March 31,		January 1,	Number		Book	ended March 31,	period ended March
Investor	Investee	Location	Main business activities		2015		2015	of shares	Ownership	value	2015	31, 2015	Note
Prince Housing Investment Co., Ltd.	PPG Investment Inc.	USA	Overseas investment	\$	56,945	\$	56,945		273 27.27%	12,181\$	(\$ 20,715)	\$	- Note 3
	Queen Holdings Ltd.	Britsh Virgin Islands	Overseas investment		122,034		122,034	2,730	27.27%	337,469	16,033		- Note 3
Prince Ta-Chen Investment Co., Ltd.	Prince Capital,Inc.	Britsh Virgin Islands	Overseas investment		26,727		26,727		1 100.00%	2,779		-	- Notes 2 and 3
Prince Property Management Consulting Co., Ltd.	Prince Apartmen Management Maintain Co., Ltd.	Taiwan	Management of apartments		67,853		67,853	3,000,000	100.00%	72,538	85		- Notes 2 and 3
	Prince Security Co., Ltd.	Taiwan	Security		159,611		159,611	13,172,636	100.00%	194,022	4,368		- Notes 2 and 3
Dong-Feng Enterprises Co., Ltd.	Amida Trustlink Assets Management Co., Ltd.	Taiwan	Development of public housing and building and its		362,288		362,288	27,324,911	45.21%	189,379	1,064		- Note 3
Prince Capital, Inc.	Prince Ventures USA Inc.	Britsh Virgin Islands	rental Overseas investment		20,511		20,511		1 100.00%	3,522		-	- Notes 2 and 3
Ta-Chen International (Brunei) Corp.	Ta Chen Construction & Engineering (Vietnam) Corp.	Vietnam	Construction		9,440		9,440		- 100.00%	1,544	11		- Notes 2 and 3

Note 1:The difference between the income (loss) of the investee and the investment income (loss) of the investee recognized by the Company is the investment income (loss) of

the investee recognized by the Company in proportion to the share ownership and unrealized gain (loss) from elimination of inter-Company transactions.

Note 2:Subsidiary.

Note 3:The amount has been included in the profit (loss) of the Company's investee accounted using equity method and has been recognized as gain (loss) on investment.

Note 4:Provided 12 million shares as collateral.

Note 5:Provided 108 million shares as collateral.

(3)Information on investments in Mainland China

None.

14. SEGMENT INFORMATION

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

(2) Measurement of segment information

The chief operating decision-maker assesses the performance of the operating segments based on 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) 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:

		For the year three-month period March 31, 2015
			Write-off and
Item	Construction		Hotel	Others	Adjustment		Total
External operating revenue-net	\$	1,663,403 \$	882,260 \$	170,323	\$	- \$	2,715,986
Internal operating revenue-net		195,503	-	13,794	( 209,297)		-
Total segment revenue		1,858,906	882,260	184,117			2,715,986
Costs and expenses	(	1,753,508) (	745,943) (	141,263)	209,728	(	2,430,986)
Segment income		105,398	136,317	42,854			285,000
Other income		38,059	2,915	16,311 (	9,990)		47,295
Other gains and losses	(	35,805)	44 (	6,504) (	6,520)	(	48,785)
Finance costs	(	87,721) (	15,921) (	21)	9,310	(	94,353)
Share of (loss)/profit of associates and joint ventures accounted for under equity method		150,197	-	-	( 112,947)		37,250
Segment income before tax		170,128	123,355	52,640			226,407
Income tax expense	(	20,123) (	11,117) (	1,320)		(	32,560)
Net income for the period	\$	150,005 \$	112,238 \$	51,320		\$	193,847
Segment assets	\$	48,475,659 \$	7,403,670 \$	2,614,048	( 4,951,841)	\$	53,541,536

		For the year three-month period March 31, 2014
			Write-off and
Item		Construction	Hotel	Others		Adjustment	Total
External operating revenue-net	\$	1,460,608 \$	882,403 \$	183,631	\$	- \$	2,526,642
Internal operating revenue-net		158,957	-	15,767	(	174,724)	-
Total segment revenue		1,619,565	882,403	199,398			2,526,642
Costs and expenses	(	1,664,352) (	761,399) (	149,355)		181,093 (	2,394,013)
Segment income	(	44,787)	121,004	50,043			132,629
Other income		203,521	820	5,186	(	13,020)	196,507
Other gains and losses	(	112,188) (	261) (	4,846)		109,130 (	8,165)
Finance costs	(	88,244) (	15,950)		-	7,409 (	96,785)
Share of (loss)/profit of associates and joint ventures accounted for under equity method		77,731	-	2,577	(	60,410)	19,898
Segment income before tax		36,033	105,613	52,960			244,084
Income tax expense	(	15,586) (	10,912) (	881)	(	2,430) (	29,809)
Net income for the period	\$	20,447 \$	94,701 \$	52,079		\$	214,275
Segment assets	\$	45,574,295 \$	12,151,762 \$	2,646,102	(	4,491,790) \$	55,880,369

(4) Reconciliation for segment income (loss) and assets

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 segment assets for this period is provided in Note 14(3).

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PHD — Interim / Quarterly Report 2015

52134_rns_2015-12-23_661ced13-ebf0-4115-abd9-b7cd47021b55.pdf

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND REVIEW REPORT OF INDEPENDENT ACCOUNTANTS MARCH 31, 2015 AND 2014

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Expressed in thousands of New Taiwan dollars, except earnings per share) (UNAUDITED)

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in thousands of New Taiwan dollars)

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2015 AND 2014

(UNAUDITED)

1. HISTORY AND ORGANIZATION

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Compliance statement

(2) Basis of preparation

(4) Employee benefits

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

D. Evaluation of inventories

6. DETAILS OF SIGNIFICANT ACCOUNTS

(4) Accounts receivable, net

(5) Construction contracts receivable (payable)

(6) Inventories

E. Disclosure of significant constructions:

(10) Investments accounted for under the equity method

(11) Property, plant and equipment

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

(12) Investment property

(13) Intangible assets

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

(14) Short-term borrowings

(15) Short-term notes and bills payable

(22) Share capital

(24) Retained earnings

(27) Operating revenue

(29) Other gains and losses

(30) Finance costs

(31) Expenses by nature

(32) Income tax

(33) Earnings per share

(34) Operating leases

(35) Non-cash transactions

8. PLEDGED ASSETS

The Group's assets pledged as collateral are as follows:

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

12. OTHERS

(2) Financial instruments

Foreign exchange risk

Interest rate risk

Price risk

(b) Credit risk

(3) Fair value estimation

13. SUPPLEMENTARY DISCLOSURES

(2)Information on investees

14. SEGMENT INFORMATION

(1) General information

(2) Measurement of segment information

(3) Information about segment profit or loss and assets

(4) Reconciliation for segment income (loss) and assets

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PHD Interim / Quarterly Report 2015