PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND REVIEW REPORT OF INDEPENDENT ACCOUNTANTS SEPTEMBER 30, 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.

REVIEW REPORT OF INDEPENDENT ACCOUNTANTS

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

We have reviewed the accompanying consolidated balance sheets of Prince Housing & Development Corp. and its subsidiaries as of September 30, 2015 and 2014, and the related consolidated statements of comprehensive income for the three months and nine months then ended, as well as the statements of changes in equity and of cash flows for the nine months then ended. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to issue a report on these consolidated financial statements based on our reviews.

Except as explained in the following paragraph, we conducted our reviews in accordance with the Statement of Auditing Standards No. 36, "Engagements to Review Financial Statements" in the Republic of China. A review consists primarily of inquiries of company personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards in the Republic of China, the objective of which is the expression of an opinion regarding the consolidated financial statements taken as a whole. Accordingly, we do not express such an opinion.

As explained in Note 4(3), we did not review the financial statements of insignificant consolidated subsidiaries, which statements reflect total assets of NT\$10,361,014 thousand and NT\$10,734,651 thousand, constituting 19% and 20% of the consolidated total assets, and total liabilities of NT\$6,152,667 thousand and NT\$6,609,410 thousand, both constituting 21% of the consolidated total liabilities as of September 30, 2015 and 2014, respectively, and total comprehensive income of (NT\$75,702) thousand, (NT\$7,682) thousand, NT\$60,399 thousand, and NT\$147,873 thousand, constituting $(26\%)$ , $(23\%)$ , 11% and 35% of the consolidated total comprehensive income for the three months and nine months then ended, respectively. In addition, as explained in Note $6(10)$ , we did not review the investments accounted for under equity method, which statements reflect share of (loss) profit of associates and joint ventures of (NT\$51,426) thousand, NT\$56,976 thousand, NT\$17,795 thousand and NT\$93,048 thousand for the three months and nine months ended September 30, 2015 and 2014, respectively. The related investment amount was NT\$2,219,283 thousand and NT\$2,176,982 thousand as of September 30, 2015 and 2014, respectively. These amounts and the information disclosed in Note 13 were based solely on the unreviewed financial statements of these

資誠聯合會計師事務所 PricewaterhouseCoopers, Taiwan 80048 高雄市新興區民族二路95號22樓 / 22F, 95, Minzu 2nd Rd., Xinxing Dist., Kaohsiung City 80048, Taiwan T: +886 (7) 237 3116, F: +886 (7) 236 5631, www.pwc.tw

companies as of September 30, 2015 and 2014.

Based on our reviews, except for the effect of such adjustments, if any, as might have been determined to be necessary had the financial statements of insignificant subsidiaries, investments accounted for under equity method and the information disclosed in Note 13 been reviewed by independent accountants, we are not aware of any material modifications that should be made to the consolidated financial statements referred to in the first paragraph for them to be in conformity with the "Rules Governing the Preparation of Financial Statements by Securities Issuers", and International Accounting Standard 34, "Interim Financial Reporting" as endorsed by the Financial Supervisory Commission.

Pricewaterhouse Coopers, Taiwan

PricewaterhouseCoopers, Taiwan

November 3, 2015

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

PRINCE HOUSING & DEVELOPMENT CORP.
CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of New Taiwan dollars)
(The consolidated balance sheets as of September 30, 2015 and 2014 are reviewed, not audited)

		September 30, 2015 AMOUNT	$\%$		December 31, 2014		September 30, 2014
Assets Current assets	Notes				AMOUNT	%	AMOUNT	$\frac{9}{6}$
Cash and cash equivalents	6(1)	\$ 2,418,834		$4 \quad$	2,165,806	4S	2,345,772
Financial assets at fair value through $6(2)$								4
profit or loss - current		310,845	1		238,566		224,507
Notes receivable, net	6(3)	153,026			148,412		88,288
Accounts receivable, net	6(4)	809, 357	1		5,355,359	10	691,793	$\mathbf{1}$
Accounts receivable - related parties 7		445,534	1		440,429	1	460,215	$1\,$
Receivables from customers on	6(5)
construction contracts		1,363,260	3		955,890	2	1,260,558	2
Other receivables	9	75,336			285,144		274,559	$\mathbf{1}$
Inventories, net	5(2), 6(6)
	and 8	23, 332, 397	44		20, 925, 619	37	22, 915, 733	42
Prepayments		538,416	1		429,857	I.	437,736	1
Other financial assets-current	8	2,099,307	4		2,772,959	5	2,958,644	6
Other current assets, others	6(7)	512,097	$\mathbf{1}$		521,804	$\mathbf{1}$	786,786	$\mathbf{2}$
Total current Assets		32,058,409	60		34, 239, 845	61	32, 444, 591	60
Non-current assets
Financial assets at fair value through 6(2) and 8
profit or loss - non-current		77,778			77,547		77,327
Available-for-sale financial assets -	5(2), 6(8)
non-current	and 8	1,294,561	3		1,626,078	3	1,642,084	3
Financial assets carried at cost -	$6(9)$ and 8
non-current		887,529	2		887,529	2	887,529	2
Investments accounted for under	5(2), 6(10)
equity method	and 8	2,219,283	4		2,182,242	4	2,176,982	4
Property, plant and equipment, net	$6(11)$ and $8$	6,791,234	13		6,957,966	12	7,003,338	13
Investment property - net	$6(12)$ and 8	6,004,222	11		6,075,555	11	6,098,909	11
Intangible assets	6(13)	2,317,158	4		2,362,995	4	2,378,454	4
Deferred income tax assets	$5(2)$ and
	6(32)	108,165			108,369		108,197
Refundable deposits	7 and 9	632,624	1		537,377	1	536,658	1
Other financial assets - non-current	8	767, 185	2		911,988	2	1,014,163	2
Other non-current assets, others		89,640			83,477		132,964
Total non-current assets		21, 189, 379	40		21,811,123	39	22,056,605	40
Total assets		\$ 53, 247, 788	100	\$	56,050,968	100	\$ 54, 501, 196	100

(Continued)

PRINCE HOUSING & DEVELOPMENT CORP.
CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of New Taiwan dollars)
(The consolidated balance sheets as of September 30, 2015 and 2014 are reviewed, not audited)

		September 30, 2015		December 31, 2014		September 30, 2014
Liabilities and Equity	Notes	AMOUNT	%	AMOUNT	%	AMOUNT	%
Current liabilities
Short-term borrowings	$6(14)$ and 8 \$	3,724,874	7	\$ 3,305,584	6	$\sqrt{3}$ 4, 122, 584	8
Short-term notes and bills payable	$6(15)$ and $8$	1,228,715	3	2,602,518	5	2,493,646	5
Notes payable		128,995		22,027		135,490
Accounts payable		2,973,238	6	4,262,318	8	2,490,803	5
Payables to customers on	6(5)
construction contracts		462,228	1	350,959	1	588,081	1
Other payables		977,807	$\boldsymbol{2}$	1,094,813	2	776,414	l
Other payables - related parties	7	105,728	-	194,001		129,507
Current income tax liabilities	6(32)	87,427		125,602		85,526
Receipts in advance	6(16)	3,127,945	6	3,037,135	5	4,252,464	8
Long-term liabilities, current portion 6(18) and 8		596,870	1	2,111,470	4	1,921,670	3
Other current liabilities, others		97,605	$\overline{\phantom{a}}$	113,307	$\overline{\phantom{a}}$	84,166	$\overline{\phantom{a}}$
Total current Liabilities		13, 511, 432	$26\,$	17,219,734	31	17,080,351	31
Non-current Liabilities
Bonds payable	6(17)	4,500,000	9	4,500,000	8	4,500,000	8
Long-term borrowings	$6(18)$ and 8	9,518,411	18	7,649,449	14	7,581,884	14
Provisions for liabilities -	6(19)
non-current		84.937	$\overline{\phantom{a}}$	81,720	$\overline{\phantom{a}}$	82,318
Deferred income tax liabilities	6(32)	134,218	ä,	495,328	1	498,266	1
Long-term notes and accounts
payable		1.449,773	3	1,457,251	3	1,459,583	3
Net defined benefit liability-	$5(2)$ and
non-current	6(20)	134,682		129,391		129,972
Guarantee deposits received		146,625		136,547		181,607	$\mathbf 1$
Other non-current liabilities, others	6(10)	180,726		70,604		71,492
Total non-current liabilities		16, 149, 372	30	14,520,290	26	14,505,122	27
Total Liabilities		29,660,804	56	31,740,024	57	31, 585, 473	58
Equity attributable to owners of
parent
Share capital
Common stock	6(22)	16,623,418	31	16,623,418	30	16,623,418	30
Capital surplus	6(23)
Capital surplus		1,981,794	4	1,929,793	3	1,929,793	3
Retained earnings	6(24)(32)
Legal reserve		1,420,796	3	1,180,924	$\boldsymbol{2}$	1,180,924	$\overline{\mathbf{c}}$
Unappropriated retained earnings		2,141,479	4	2,854,738	5	1,451,585	3
Other equity interest	6(25)
Other equity interest		1,143,487	2	1,436,219	3	1,446,608	3
Treasury stocks	6(22)	60,440)	$\blacksquare$	60,440)	$\overline{\phantom{a}}$	60,440)
Equity attributable to owners of
the parent		23, 250, 534	44	23,964,652	43	22,571,888	41
Non-controlling interest		336,450		346,292		343,835
Total equity		23,586,984	44	24,310,944	43	22, 915, 723	42
Total liabilities and equity		53, 247, 788	100	\$ 56,050,968	100	54, 501, 196 -\$	100

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

See review report of independent accountants dated November 3, 2015.

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

						Three months ended September 30						Nine months ended September 30
			2015			2014 (adjusted)			2015			2014 (adjusted)
Items	Notes		AMOUNT	%		AMOUNT	%		AMOUNT	%		AMOUNT	℅
Operating revenue	6(27) and 7		\$2,299,092	100		\$3,111,259	100		\$8,030,333	100		\$9,780,693	100
Operating costs	6(6)(31)		$1,409,000$ (	61)		$2, 126, 208$ ) (	68)		$5,093,749$ (	64) (		$6,692,095$ ) (	68)
Gross profit			890,092	39		985,051	32		2,936,584	36		3,088,598	32
Operating expenses	$6(31)$ and $7$
Selling expenses General & administrative expenses			$60,665$ ) ( 587,664)(	$3)$ ( $25)$ (		99,937)(	$3)$ (		241,403)(	$3)$ (		251,112)(	3)
Total operating expenses			$648,329$ ) (			$624, 164)$ (	20(		1,785,397)(	$22)$ (		1,956,049)(	20)
Operating profit			241,763	$28)$ ( 11		724, 101) 260,950	$23)$ ( 9		2,026,800) 909,784	25( 11		$2, 207, 161$ ) ( 881,437	23)
Non-operating income and expenses													9
Other income	6(28)		59,835	2		54,636	2		269,008	4		380,943
Other gains and losses	6(2)(29)		45,217	2		4,010	ä,		89,712	1 ¹		40,330)	4
Finance costs	6(30)	(	76,444)(	$3)$ (		$73,413$ ) (	$3)$ (		254,246)(	$3)$ (		267,961)(	$\mathbf{3}$
Share of profit/(loss) of associates and	6(10)
joint ventures accounted for under equity
method			$51,426$ ) (	2)		56,976	$\overline{z}$		17,795			93,048
Total non-operating income and
expenses			$22,818$ ) (	1)		42,209	$\mathbf{1}$		122,269	2		165,700	$\overline{\mathbf{c}}$
Profit before income tax			218,945	10		303,159	10		1,032,053	13		1,047,137	11
Income tax expense (benefit)	6(32)		$81,489$ ) (	4)		9,244	$\blacksquare$		185,577)(	$2)$ (		77,036)	$\ket{1}$
Profit for the period		\$	137,456	6		312,403	10		846,476	11		970,101	10
Other comprehensive income
Components of other comprehensive
income that will be reclassified to profit
or loss
Exchange differences arising on
translation of foreign operations Unrealized gain (loss) on available-		\$	301		S	274		\$	2		\$	1,900
for-sale financial assets	6(8)
Other comprehensive gain (loss), net of			155,576	7.		279,642)	9(		292,734)(	4) (		554,903)	6
tax		S	155,877	7	$\overline{\mathfrak{s}}$	279,368)		9)(3	292,732)	$4)($ \$		553,003)(
Total comprehensive income for the													6
period			293,333	13	S	33,035	1	\$	553,744	7		417,098
Profit (loss), attributable to:
Owners of the parent		\$.	146,050	6.	\$	318,758	10.	\$	856,486	11		991,809	10
Non-controlling interest			8,594)			6,355)	٠		10,010	٠		21,708)
		\$	137,456	6	\$	312,403	10	\$	846,476	11	\$	970,101	10
Total comprehensive income attributable
to:
Owners of the parent		\$	301,927	13	\$	39,586	ı	\$	563,754	7	\$	439,002	4
Non-controlling interest			8,594)			6,551)			10,010			21,904)
		\$	293,333	$\frac{13}{2}$	$\overline{\mathbf{z}}$	33,035		\$	553,744	7	$\overline{\mathbf{r}}$	417,098	4
Earnings per share (in dollars)	6(33)
Basic earnings per share		\$		0.09	\$		0.20	$\overline{7}$		0.53	$\overline{\mathcal{F}}$		0.63
Diluted earnings per share		\$		0.09	$\pmb{\mathbb{S}}$		0.20	\$		0.53	\$		0.63

The accompanying notes are an integral part of these consolidated financial statements.
See review report of independent accountants dated November 3, 2015.

$\chi^2 \approx 10^4$

$\bar{\alpha}$

					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	common stock Share capital -	Capital surplus	reserve Legal	Unappropriated retained earnings	translation of differences Exchange arising on operations roreign	Unrealized gain available-to- sale financial or loss on assets	Treasury stocks	Total		Non-controlling interest	Total equity
Nine months ended September 30, 2014 Balance at January 1, 2014		\$13,139,241	521, 293 ÷,	\$1,022,243	\$1,586,811	859) ئ	\$2,000,470	60,440) ؿ	\$18,208,759	s	365,739	\$18,574,498
Appropriations and distribution of 2013 retained earnings
Logal reserve				158,681	158,681
Cash dividends	6(24)				484,177				484,177)			484,177)
Stock dividends	6(24)	484,177			484,177
Profit (loss) for the period	6(33)				991,809				991,809		21,708)	970,101
Other comprehensive income (loss) for the period	6(8)(25)					1,900	554,903		553,003		196)	553,199
Share-based payment transactions	6(21)(23)		13,500						73,500			73,500
Cash capital increase	6(22)(23)	3.000,000	1,335,000						4,335,000			4,335,000
Balance at September 30, 2014		$\frac{$16,623,418}{ }$	1,929.793 ๛∣	180,924 ام	1,451,585	회	1,445,567	$60,440$ ) اص	\$22,571,888	÷,	343,835	\$22,915,723
Nine months ended September 30, 2015
Balance at January 1, 2015		\$16,623,418	\$1,929,793	180,924 ÷ ÷Ą.	\$2,854,738	1,690 ç,	\$1,434,529	60,440) ٩	\$23,964,652	s	346,292	\$24,310,944
Appropriations and distribution of 2014 retained earnings
Legal reserve				239,872	239,872)
Cash dividends	6(24)				1,329,873				1,329,873)			1,329,873
Profit (loss) for the period	6(33)				856,486				856,486		10,010	846,476
Other comprehensive income (loss) for the period	6(8)(25)						292, 734)		292,732			292,732
Recognized changes to the subsidiaries' equity	6(23)		52,001						52,001			52,001
Changes in non-controlling interest											168	168
Balance at September 30, 2015		\$16,623,418	\$1,981,794	$\frac{1,420,796}{2}$	\$2.141,479	.692	$\frac{1.141.795}{2}$	60,440) ٣	\$23,250,534	إجه	336,450	\$23,586,984

The accompanying notes are an integral part of these consolidated financial statements.
See review report of independent accountants dated November 3, 2015.

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in thousands of New Taiwan dollars) (UNAUDITED)

			Nine months ended September 30,
	Notes		2015		2014
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated profit before tax for the period		\$	1,032,053	\$	1,047,137
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
Net loss (gain) on financial assets at fair value through profit or loss	6(2)(29)	(	110, 175)		31,735
Provision for bad debts transferred to revenue	6(3)	(	$196$ ) (		$1,422$ )
Write-off of uncollectible accounts	6(4)	(	$2,043$ ) (		306)
Share of profit of associates and joint ventures accounted for under	6(10)
equity method		(	$17,795$ ) (		93,048)
Loss on disposal of property, plant amd equipment			2,065		14.026
Loss on disposal of investment property			3,371		705
Depreciation	6(31)		267,131		255 484
Amortization	6(13)(31)		46,367		46.969
Interest expense	6(30)		253,346		267,006
Interest income	6(28)	(	$5,531$ ) (		$7,601$ )
Dividend income	6(28)	(	$125,732$ ) (		227,299)
Impairment loss on financial assets	6(8)(29)				11,814
Gain on unrealized foreign exchange		(	$12,825$ ) (		7,961)
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			37,665
Notes receivable Accounts receivable		€	4,418)		16.653
Accounts receivable - related parties			4,548,045		3,045,109
Receivables from customers on constuction contracts		(	5,105)		323,188
Other receivables		(	407,370) (		446,562)
Inventories			211,033		33,453
Prepayments		€	$2,735,660$ ) ( $108,559$ )		$5,002,023$ )
Other current assets, others			9,707	(	95,319 61,198)
Other non-current assets, others		€	$6,163$ ) (		12.914)
Net changes in liabilities relating to operating activities
Notes payable			106,968		60.158
Accounts payable		(	$1,289,080$ ) (		$1,664,011$ )
Payable to customers on constuction contracts			111,269		319,590
Other payables		(	$134,524$ ) (		279,875)
Other payables-related parties		(	$88,273$ ) (		$125.092$ )
Receipts in advance			90,810		1,081,736
Other current liabilities, others		(	$15,702$ ) (		14,850)
Provisions for liabilities - non-current			3,217		3,247
Net defined benefit liability - non-current			5,291	€	2,910)
Other non-current liabilities, others			72)		711
Cash generated from (used in) operations			1,659,115	€	1,219,532)
Interest received			4,306		6,298
Cash dividend received			166,772		248,899
Interest paid			214,295)		241,433)
Income tax paid			185,577 )		50, 799)
Net cash provided by (used in) operating activities			1,430,321		$1,256,567$ )

(Continued)

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in thousands of New Taiwan dollars) (UNAUDITED)

			Nine months ended September 30,
	Notes		2015		2014
CASH FLOWS FROM INVESTING ACTIVITIES
Decrease in other financial assets - current		\$	673,652	\$	187,230
Decrease in available-for-sale financial assets - non-current			33.927
Return of share capital from available-for-sale financial assets - non-current					25,000
Return of share capital from investments accounted for under equity
method			30,057		30,361
Acquisition of property, plant amd equipment	6(11)	0	37,833) (		85,979)
Proceeds from disposal of property, plant amd equipment			43		919
Acquisition of investment property	6(12)			€	1,484)
Proceeds from disposal of investment property			1.075
Increase in intangible assets	6(13)	€	$530$ ) (		407)
Increase in refundable deposits		(	$95,247$ ) (		337)
(Increase) decrease in other financial assets - non-current			144,803		533,595)
Net cash provided by (used in) investing activities			749,947		378.292)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings			419,290		37,584
Increase (decrease) in short-term notes and bills payable		(	1,373,803)		349,985
Proceeds from of long-term borrowings			5,064,097		3,618,515
Repayments of long-term borrowings		(	4,709,735) (		6,076,699)
Decrease in long-term notes and accounts payable		€	$7,478$ ) (		5, 125)
Increase in guarantee deposits received			10,078		37,479
Proceeds from cash capital increase					4,335,000
Cash dividends paid		€	$1,329,873$ ) (		484, 177)
Changes in non-controlling interest			168
Net cash (used in) provided by financing activities			1,927,256)		1,812,562
Effect of exchange rate changes on cash and cash equivalents			16		661)
Increase in cash and cash equivalents			253,028		177,042
Cash and cash equivalents at beginning of period			2,165,806		2,168,730
Cash and cash equivalents at end of period		\$	2,418,834	\$	2,345,772

The accompanying notes are an integral part of these consolidated financial statements. See review report of independent accountants dated November 3, 2015.

$\bar{z}$

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2015 AND 2014

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

(UNAUDITED)

1. HISTORY AND ORGANIZATION

(1) Prince Housing & Development Corp. (the "Company") was established in September 1973, under the Company Act and other related regulations. The Company is primarily engaged in the construction, leasing and sale of public housing, commercial building, tourism/recreation place (children's playground, water park, etc.) and parking lot/parking tower, and leasing and sale of real estate. The common shares of the Company have been listed on the Taiwan Stock Exchange since April 1991.
(2) 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 November 3, 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 recognize termination benefits at the earlier of when the entity can no longer withdraw an offer of those benefits and when it recognizes 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 Board
IFRS 9, 'Financial instruments'	January 1, 2018
Sale of contribution of assets between an investor and its associate or joint venture (amendments to IFRS 10 and IAS 28)	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, 2018
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. The impact will be disclosed when the assessment is complete.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Except for compliance statement, basis of preparation and basis of consolidation, and certain significant accounting policies as follows, the rest are in agreement with Note 4 in 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 the 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	September 30, 2015	December 31, 2014	Description
Prince Housing & Development Corp.	Prince Property Management Real estate managers Consulting Co., Ltd.		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	Notes 2 and 4
	Dong-Feng Enterprises Co., Ltd.	Housebuilders and sales	100	100	Note 2
	The Splendor Hotel Taichung Hotels and catering		50	50	Notes 1 and 2
	Time Square International Co., Ltd.	Hotels and catering	100	100	Note 2
	Jin-Yi-Xing Plywood Co. Ltd.	Manufacture of plywood	99.65	99.65	Notes 2 and 6

		Main business		Ownership (%)
Name of investor	Name of subsidiary	activities	September 30, 2015	December 31, 2014	Description
Prince Housing & Development Corp.	Early Success Investments Ltd.	Overseas investment	100	100	Notes 2 and 5
	Prince Industrial Co., Ltd.	Development of public housing and building	100	100	Note 2
	Prince Real Estate Co., Ltd.	Real estate trading and leasing	99.65	$\overline{\phantom{0}}$	Notes 2 and 6
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	Prince Capital Inc.	Overseas investment	100	100	Notes 2, 4 and 5
Ta-Chen Construction & Engineering Corp.	Ta-Chen International (Brunei) Corp.	Overseas investment	100	100	Notes 2 and 5
Prince Capital Inc.	Prince Ventures USA Inc.	Overseas investment	100	100	Notes 2, 4 and 5
Ta-Chen International (Brunei) Corp.	Ta Chen Construction & Engineering (Vietnam) Corp.	Construction	100	100	Notes 2 and 5

		Main business	Ownership (%)
Name of investor	Name of subsidiary	activities	September 30, 2014	Description
Prince Housing & Development Corp.	Prince Property Management Real estate managers Consulting Co., Ltd.		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	Notes 1 and 2
	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 Real estate leasing Co., Ltd.		50	Notes 1, 2 and 3
	Prince Industrial Co., Ltd.	Development of public housing and building	100	Note 2

		Main business	Ownership (%)
Name of investor	Name of subsidiary	activities	September 30, 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	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 nine months ended September 30, 2015 and 2014 were not reviewed by independent accountants.
Note 3: Liquidation was completed in the fourth quarter of 2014.
Note 4: The Company entered into a merger agreement with its subsidiary, Prince Ta-Chen Investment Co., Ltd. in May 2015. Under the merger, the Company has been the surviving company while Prince Ta-Chen Investment Co., Ltd. has been the dissolved company.
Note 5: Prince Capital Inc., Prince Ventures USA Inc., Early Success Investments Ltd., Ta-Chen International (Brunei) Corp. and Ta-Chen Construction & Engineering (Vietnam) Corp. are now in the dissolution process.
Note 6: The subsidiary was newly established from the land division of Jm-Yi-Xing Plywood Co., Ltd. on September 1, 2015.
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

A. 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. Also, the related information is disclosed accordingly.

B. Employees', directors' and supervisors' remuneration

Employees' remuneration and directors' and supervisors' remuneration are recognized as expenses and liabilities, provided that such recognition is required under legal obligation or constructive obligation and those amounts can be reliably estimated.

$(5)$ 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. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. 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 utilized 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 September 30, 2015, the Group's investments accounted for under the equity method, net of impairment loss, amounted to \$2,219,283.

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, 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 September 30, 2015, the Group recognized deferred income tax assets amounting to \$108,165.

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 September 30, 2015, the carrying amount of inventories was \$23,332,397.

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 future salary growth rate. Any changes in these assumptions could significantly impact the carrying amount of defined pension obligations.

As of September 30, 2015, the carrying amount of net defined benefit liabilities was \$134,682.

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, fair value assessment of other companies of the same type, technical development status, 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 September 30, 2015, the carrying amount of unlisted stocks without active market was \$234,612.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

		September 30, 2015	December 31, 2014	September 30, 2014
Cash on hand and revolving funds	S	63,476	\$ 55,943	\$ 47,678
Checking accounts and demand deposits		2,037,358	1,642,033	1.921,063
Time deposits		318,000	387,825	165,000
Repurchase bonds			80,005	212,031
		2,418,834	2,165,806	2,345,772

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.

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

Items	September 30, 2015	December 31, 2014	September 30, 2014
Current items:
Financial assets held for trading
Listed (TSE and OTC) stocks	\$ 264,520	\$ 264,520	\$ 264,520
Beneficiary certificates		37,665	17,665
	264,520	302,185	282,185
Financial assets held for trading
valuation adjustments	46,325	63,619	57,678)
	310,845	\$ 238,566	\$ 224,507
Non-current items:
Financial assets held for trading
Beneficiary certificates	\$ 76,000	\$ 76,000	\$ 76,000
Financial assets held for trading
valuation adjustments	1,778	1,547	1,327
	77,778	\$ 77,547	\$ 77,327

A. The Group recognized net (loss) gain of (\$281), (\$11,388), 110,175 and (\$31,735) for the three months and nine months ended September 30, 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

	September 30, 2015	December 31, 2014	September 30, 2014
Notes receivable	153,370	148,952	90,569
Less: Allowance for doubtful
accounts	344).	540)	2,281)
	153,026	148,412	88,288

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

		Nine month ended September 30
		2015	2014
At January 1	\$	540	3,703
Reversal of impairment		196)	(.422)
At September 30	¢ ۰Ľ	344 æ	.28

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

(4) Accounts receivable, net

	September 30, $2015$	December 31, 2014	September 30, 2014
Accounts receivable	814,359	5,362,404	698,933
Less: Allowance for doubtful	5.002)	7,045	7,140)
accounts	809,357	5.355,359	691.793

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:

	September 30, 2015		December 31, 2014	September 30, 2014
Up to 60 days	28,167		37,257	33,343
61 to 120 days	2,578		2,996	4,022
121 to 180 days	526		866	378
Over 180 days	3,326		1,836	1,649
	34,597	S	42,955	39,392

The above ageing analysis was based on past due date.

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

	Nine months ended September 30
	2015	2014
At January 1	\$ 7.045	7.446
Write-offs during the period	2,043)	306)
At September 30	5,002	7.140

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)

				September 30, 2015 December 31, 2014 September 30, 2014
Aggregate cost incurred plus recognised	\$	25,272,502 \$		24,567,420 \$		27,278,261
profits (less recognised losses)
Less: progress billings		24,371,470)		23,962,489)		26,605,784)
Net balance sheet position for construction
in progress		901,032	S	604,931	S	672,477
Presented as:
Due from customers for contract work	S	1,363,260	-S	955,890 \$		1,260,558
Due to customers for contract work		462,228)		350,959)		588,081)
		901,032	\$	604,931		672,477

As at September 30, 2015, December 31, 2014 and September 30, 2014, the retainage relating to construction contracts amounted to \$1,142,006, \$1,517,237 and \$906,771 respectively; the advances received before the related construction contracts are performed amounted to \$719,619.

$\bar{\alpha}$

(6) Inventories

			September 30, 2015
			Allowance for
	Cost		valuation loss		Book value
Land held for construction site	\$ 11,942,842	(S)	65,372)	- \$	11,877,470
Construction in progress	3,831,703				3,831,703
Buildings and land held for sale	4,393,321	- (	49,432)		4,343,889
Prepayment for land	1,466,664				1,466,664
Prepayment for buildings and land	1,766,196				1,766,196
Merchandise	46,475				46,475
	\$ 23,447,201	(	114,804)	\$	23,332,397
			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
			September 30, 2014
			Allowance for
	Cost		valuation loss		Book value
Land held for construction site	\$ 14,925,441	- (\$	75,799) \$		14,849,642
Construction in progress	4,853,867				4,853,867
Buildings and land held for sale	843,894	- (	55,425)		788,469
Prepayment for land	1,417,088				1,417,088
Prepayment for buildings and land	978,495				978,495
Merchandise	28,172				28,172
	\$ 23,046,957	(	131,224)	\$	22,915,733

A. The cost of inventories recognized as expense for the three months and nine months ended September 30, 2015 and 2014, was \$1,409,000, \$2,126,208, \$5,093,749 and \$6,692,095, respectively, including the amount of \$0, \$2,040, \$2,014 and \$7,352, respectively that the Group wrote down from cost to net realizable value accounted for as cost of goods sold.

B. Details of the Group's inventories pledged to others as collateral are provided in Note 8.
C. The interest capitalized as cost of inventory is as follows:

	Three months ended September 30,
	2015			2014
Interest paid before capitalization	\$	117,728	\$	125,837
Interest capitalized	\$	41,584	\$	52,779
Annual interest rate used for capitalization	1.52%-2.95%		1.98%-3.25%
			Nine months ended September 30,
	2015			2014
Interest paid before capitalization	\$	357,016	\$	407,875
Interest capitalized	\$	103,670	\$	140,869
Annual interest rate used for capitalization	1.52%-3.20%		1.63%-3.25%
D. Details of significant inventories:
(a) Buildings and land in progress
Taipei branch	September 30, 2015 December 31, 2014 September 30, 2014
Prince Yun Ding (XinZhuang Fuduxin)	\$ 1,663,459	$\boldsymbol{\mathsf{S}}$	1,501,814	\$	1,454,991
Ling Ko Dist. Li Shing Section No. 1209, etc. Prince Fu III (Taoyuan Qing Sun Section	1,349,642		1,322,911		1,322,414
No. 446) New Taipei City Shing Jheng Section No. 883,	1,056,191		971,180		935,282
etc. Bali Dist Chung Chang section	961,506		945,978		945,755
No. 2222 and 211-1, etc.	685,665
Jhong Li City Shuang Ling Section No. 1449, etc. Prince Hua Wei (Shilin Dist. Zhishan Section	307,657		297,100		293,916
No. 602, etc.)	61,732		48,855		33,104
Prince Fu II (Taoyuan Qing Xi Section No. 462)			1,230,016		1,083,566
Nei Hu Tanmei Section					3,638,802
Others			30		10
	\$ 6,085,852	₹	6,317,884	\$	9,707,840

Taichung branch		September 30, 2015 December 31, 2014 September 30, 2014
The Cloud Century (Kao An Section No. 12-12, etc.)	-S	1,251,022	\$.	698,226	-S	1,296,258
Ping Hsin Section No. 694, etc.		863,581		858,448
Chin Fon Gin (Tu Ku Section No. 8-2, etc.)		732,743		575,092		521,780
Prince Yu Ding (Hui Li Section No. 195)		686,036		620,697		587,737
Hai Yan (Tai Huo Section No. 29)		635,255		489,564		433,723
Chaotun Section No. 755, etc.		250,106		249,147
Jin Shuei Dist. Wu Show Section No. 1037, No.1038, No.1040, etc.		195,947		195,758		195,758
Hsinfuliao Section No.1096, No.1108, No.1098, etc.		159,937
Jing Yun Sian (Tu Ku Section No. 73-11, etc.)						980,740
Others		29,093		27,422		32,719
	\$	4,803,720	\$	3,714,354	\$	4,048,715
Tainan branch
Jin Hua Section No. 1361	\$	687,247	\$	687,232	S.	687,151
Hsin Ying Section No. 841-9		524,317		485,101		484,111
Flower Bo Five (Hou Guan Section No. 34, No. 34-1, etc.)		512,653		51,010		14,735
Jum Fon Huei (Yu Ming Section No. 681-8)		237,034		183,812		180,743
Shan Chia Section No939, etc.		143,979
Bei An Lot No. 56-10, etc.				62,073		62,073
Prince WIN-W Suite (A) (Shan Chia Section No. 923, etc.)						316,704
Ren Wu Dist. Xia Hai Lot						128,105
Chin An Section No.387						17,930
Others		9,920		7,364		3,524
	\$	2,115,150	S	1,476,592	\$	1,895,076
Kaohsiung branch
Nanzi subsection No. 158	\$	35,907 \$			\$
Ren Wu New Hougang West Section (No. 39~No. 76, etc)		30,976		3,736		2,888
Others						334
	\$	66,883	\$	3,736	\$	3,222
Total buildings and land in progress	\$	13,071,605	S.	11,512,566	S.	15,654,853

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

$\mathcal{L}^{\text{max}}{\text{max}}$ , where $\mathcal{L}^{\text{max}}{\text{max}}$

Taipei branch	September 30, 2015 December 31, 2014 September 30, 2014
Zhong Li Pu Ren Lot No. 720, etc.	\$ 140,156	$\mathcal{S}$	140,156	\$ 140,156
Shi Lin, Chih Cheng Road, Lot subsection No. 619				14,819
Others	5,978		6,274	6,274
	\$ 146,134	\$	146,430	\$ 161,249
Taichung branch
Song Quan Lot No. 164 etc.	\$ 176,296	-S	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
Ping Hsin Section No. 694, etc.				853,475
Chaotun Section No. 755, etc.				246,715
Others	26,322		24,134	24,134
	\$ 410,132	\$	407,944	\$ 1,508,134
Tainan branch
Ren Wu New Hougang West Section No. 52, etc.	\$ 829,021	\$		\$
Shan Zhong Lot No. 1468, 1475 & 1476 etc.	234,699		234,699	234,699
Ren Wu New Hougang West Section No. 69, No. 70, etc.	112,876		112,876
Chin An Section No. 297, etc.	79,660		78,928	80,603
Bei An Section No. 56-10, etc.	62,056
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	15,139
Bao An Lot No. 882, etc.	10,325		10,325	10,325
Ren Wu New Hougang West Section No. 8~90, etc				1,538,447
Shan Chia Section No. 939, etc.			108,111	108,095
Others	18,833		19,360	20,615
	\$ 1,457,361	\$	674,190	\$ 2,102,675
Kaohsiung branch
Da Hua Lot No. 434 & 436	\$ 13,923	S	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	\$ 2,027,550	\$	1,242,487	\$ 3,800,945

Taipei branch	September 30, 2015 December 31, 2014 September 30, 2014
Prince Tanmei	\$ 2,270,855	-\$	2,458,201 \$
Prince Fu II	1,717,469
Taipei Shinyi	106,741		178,874	178,874
Prince Dragon House III	42,432		42,432	44,859
Prince Central Park	33,689		56,530	56,530
Prince Da Din
	12,446		12,657	12,657
Prince Guo Boa	5,738		5,738	8,837
Prince Fu				44,480
Others	546		546	727
	\$ 4,189,916	\$	2,754,978	\$ 346,964
Taichung branch
Prince Fu	\$ 39,528	\$	67,815	\$ 104,617
The Cloud Century B	28,431		441,774
Jing Yun Sian	13,418		458,590
The Cloud Century C	6,617		374,356
Others	10,889		10,889	10,889
	\$ 98,883	\$	1,353,424	\$ 115,506
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-W Suite (A)	7,402		10,439
Prince WIN-I Mansion			61,350	118,124
Prince WIN-W Suite (B)				5,736
Prince Dragon			1,081	3,242
Prince i-Cloud				10,966
Others	2,188		11,961	11,961
	\$ 77,263	\$	152,504	\$ 217,702
Kaohsiung branch
Prince Hua Yang	\$ 79,875	\$	156,111	\$ 215,575
Prince Dai Din	10,431		11,736	11,736
	\$ 90,306 \$		167,847	\$ 227,311
Total buildings and land held for sale	\$ 4,456,368 \$		4,428,753 \$	907.483

(c)Buildings and land held for sale

(d)Prepayment for land

Taipei branch		September 30, 2015 December 31, 2014 September 30, 2014
Bail Dist. Chung Chang Section No. 222	\$		-S	66,260	S
Taichung branch Chaotun Township HsinFuLiao Section	\$		S	16,000	S
No. 1097, etc. Tainan branch
Ren Wu Dist. Xia Hai Lot No. 978, etc. Others	\$	1,466,664 \$		1,685,715 2,665	-S	1,645,499 10,665
	\$	1,466,664	S.	1,688,380	S.	1,656,164
Total prepayment for land	S	1,466,664		1,770,640	\$	1,656,164
(e)Prepayment for buildings and land
		September 30, 2015 December 31, 2014 September 30, 2014
Taisugar Kao An Section	\$	1,157,542 \$		252,098	S	820,447
Taisugar He Guan Section		382,382		158,042		158,042
Taisugar Nanzi Section		188,472		62,940
Prince Yun Ding		37,800		37,800
Others						6

$\frac{\mathcal{S}}{\mathcal{S}}$

1,766,196

$\overline{\mathbf{S}}$

$510,880$ \$

978,495

		Estimated	Percentage	Accumulated
itract Name of construction con	Contract amount	construction cost	of completion	construction profit/(loss)
Tainan Spinning Dream Mall	5,029,591 ↔	4,898,454 ⊷	89.59%	117,486 ↔
Taipei City Hall Bus Station	4,785,639	4,677,757	99.86%	107,731
New Construction of Chaojhou Railway Station	4,217,480	4,049,711	97.08%	162,870
Tseng-Wen Reservoir	3,161,533	2,850,708	99.00%	307,717
West Coast Expressway 130K FangLi to Dia An Construction	2,058,381	1,969,741	29.03%	25,732
Taoyuan MRT Airport Line - CU03	,627,671	1,558,409	100.00%	69,262
San Bau Bei Tou DaYe - New Construction	,521,905	1,430,405	34.56%	31,622
Improvement plan for High Speed Railway ground access road in Changhua	,210,476	1,156,005	57.04%	31,070
(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	,595,537	1,554,941	99.85%	40,536
San Bau Bei Tou DaYe - New Construction	,521,905	,430,405	17.49%	16,003
Western Coast Express - WH53-1	,307,465	,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

E. Disclosure of significant constructions:

(a) As of September 30, 2015, significant constructions are set forth below:

$-26-$

		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	77.97%	102,248
Taipei City Hall Bus Station	4,611,635	4,503,753	99.84%	107,709
New Construction of Chaojhou Railway Station	3,888,161	3,698,014	84.17%	160,047
Tseng-Wen Reservoir	3,010,793	2,792,474	98.92%	215,961
West Coast Expresswary 130K FangLi to Dia An Construction	2,058,381	1,969,741	2.59%	2,296
Taoyuan MRT Airport Line - CU03	,595,537	1,554,941	99.62%	40,442
San Bau Bei Tou Da Ye - New Construction	,521,905	,430,405	11.53%	10,550
Western Coast Express - WH53-1	,307,465	1188,411	$00.00\%$	9,054
Improvement plan for High Speed Railway ground access road in Changhua	1,210,476	,156,005	9.29%	5,060

(7) Other current assets

Items				September 30, 2015 December 31, 2014 September 30, 2014
Deferred sales commission	\$	474,932	S.	507,245	S.	757,936
Others		37,165		14,559		28,850
	\$	512,097	\$	521,804	\$	786,786
(8) Available-for-sale financial assets
Items				September 30, 2015 December 31, 2014 September 30, 2014
Non-current items:
Listed (TSE and OTC) stocks	$\mathbf S$	119,398	-\$	153,845	-S	213,136
Emerging stocks				3.940		7,341
Unlisted stocks		44,561		40,101		38,849
		163,959		197,886		259,326
Valuation adjustment of available- for-sale financial assets		1,130,602		1,428,192		1,382,758
	\$	1,294,561	\$	1,626,078	S	1,642,084

A. The Group recognized \$155,576, (\$279,642), (\$292,734) and (\$554,903) in other comprehensive income (loss) for fair value change for the three months and nine months ended September 30, 2015 and 2014, respectively.
B. The fair value of some of the Group's available-for-sale financial assets declined significantly below its initial investment cost. The Group therefore recognized impairment loss of \$11,814 for the nine months ended September 30, 2014, including the amount of \$11,814 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

ltems	September 30, 2015 December 31, 2014 September 30, 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 no sufficient industry information of companies similar to President Energy Development Ltd. and President International Development Corp., or President Energy Development Ltd. and President International Development Corp.'s financial information cannot be obtained, 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 equity method

		September 30, 2015		December 31, 2014		September 30, 2014
Name of associates	Carrying amount	Percentage of ownership	Carrying amount	Percentage of ownership	Carrying amount	Percentage of ownership
Geng-Ding Co., Ltd.	\$ 333,687	30.00%	S 326,959	30.00%	\$ 335,770	30.00%
Uni-President Development Corp.	1,344,783	30.00%	1.311,431	30.00%	1,288,651	30.00%
Amida Truslink Assets Management Co., Ltd. (Note)	$\blacksquare$	45.21%	36,198	45.21%	27,623	45.21%
PPG Investment Inc.	14.531	27.27%	17,859	27.27%	62,970	27.27%
Queen Holdings Ltd.	359,659	27.27%	338,663	27.27%	311,964	27.27%
Ming-Da Enterprise Co., Ltd.	166,623	20.00%	151,132	20.00%	150,004	20.00%
	\$2,219,283		\$2,182,242		\$2,176,982

Note: As of September 30, 2015, the book value of the Company's investment in Amida Truslink Assets Management Co., Ltd. was below zero thus, the investment was transferred to other non-current liabilities' which amounted to \$110,194.

Associates

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 Development Corp.	Taiwan	The Group holds more than 20% of voting rights	Equity method

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

Balance sheet

	Uni President Development Corp.
				September 30, 2015 December 31, 2014 September 30, 2014
Current assets	\$	356,546	S	1,157,049	-\$	1,184,016
Non-current assets		9,731,621		9,209,813		9,314,359
Current liabilities		3,398,385) (		2,898,391) (		3,011,670)
Non-current liabilities		2,207,173		3,097,036)		3,191,399)
Total net assets		4,482,609	S	4,371,435	ς	4,295,306
Share in associate's net assets		1,344,783	\$	1,311,431	\$	1,288,651

Statements of comprehensive income

	Uni President Development Corp.
		Three months ended September 30,
		2015		2014
Revenue		247,796	S	253,039
Profit for the period from continuing operations	S	43,952	\$	43,596
Total comprehensive income		43,952	\$	43,596
		Uni President Development Corp.
		Nine months ended September 30,
		2015		2014
Revenue		770,955	\$	775,394
		153,786
Profit for the period from continuing operations	-S		S	146,291

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 September 30, 2015, December 31, 2014 and September 30, 2014, the carrying amount of the Group's individually immaterial associates amounted to \$764,306, \$870,811 and \$888,331 respectively.

	Three months ended September 30,
		2015		2014
Profit (loss) for the period from continuing operations		179,432)	S	106,090
Total comprehensive income (loss)		179,432)		106,090
		Nine months ended September 30,
		2015		2014
Profit for the period from continuing operations		66,584	S	239,480
Total comprehensive income	\$	66.584		239.480

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 (loss) of associates recognized was (\$51,426), \$56,976, \$17,795 and \$93,048 for the three months and nine months ended September 30, 2015 and 2014, respectively. Balance of investments was \$2,219,283 and \$2,176,982 as of September 30, 2015 and 2014, respectively. Certain investments accounted for under equity method as of December 31, 2014 are based on financial statements audited by other independent accountants, and

related investments amounted to \$719,679.

F. Details of the Group's investments accounted for under 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:

	September 30, 2015		December 31, 2014	September 30, 2014
Land	\$ 2,858,947	-S	2,858,947	\$ 2,859,896
Buildings	3,432,698		3,557,664	3,589,104
Machinery and equipment	8,732		9,809	9,972
Computer and communication equipment	17,183		19,727	21,058
Transportation equipment	3,818		4,333	3,398
Office equipment	381,924		434,321	431,044
Leasehold improvements
Other equipment	67 444		70,571	76,784
Construction in progress and equipment
under acceptance	20,488		2,594	12,082
	\$ 6,791,234		6,957,966	7,003,338

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

	Nine months ended September 30, 2015
Cost		Opening net book amount		Additions		Disposals	Reclassifications	Closing net book amount
Land	S	2,858,947	S		\$	$\bullet$	S $\overline{\phantom{0}}$	\$	2,858,947
Buildings		4,465,549		2,949		23,326)			4,445,172
Machinery and equipment		14,476							14,476
Computer and communication equipment		59,714		1,866					61,580
Transportation equipment		11,729		$\mathbf{u}$		271)			11,458
Office equipment		788,300		12,327		3,747	190		797,070
Leasehold improvements		47,000							47,000
Other equipment		90,999		2,607		2,055	167		91,718
Construction in progress and
equipment under acceptance		2,594		18,084			190)		20,488
		8,339,308	S	37,833	(	29,399)	\$ 167		8,347,909

	Nine months ended September 30, 2014
		Opening net								Closing net
Cost		book amount		Additions		Disposals		Reclassifications		book amount
Land	\$	2,790,924	$\mathbf S$	-	$($ \$	$255)$ \$		69,227	\$	2,859,896
Buildings		4,355,227		14,897 (		30,896)		116,113		4,455,341
Machinery and equipment		14,286								14,286
Computer and communication equipment		52,016		7,799						59,815
Transportation equipment		11,587			-0	1,000)				10,587
Office equipment		785,304		$12,142$ (		94,311)		61,279		764,414
Leasehold improvements		47,000								47,000
Other equipment		95,208		$2,535$ (		4,637)		2,831		95,937
Construction in progress and
prepayments for equipment		105,344		48,606				141,868)		12,082
	\$	8,256,896	\$	85,979	$($ \$	131,099)	\$	107,582	\$	8,319,358
						Nine months ended September 30, 2015
		Opening net								Closing net
Accumulated depreciation		book amount		Additions		Disposals		Reclassifications		book amount
Buildings	\$	907,885	\$	127,915 (\$		$23,326$ \$			\$	1,012,474
Machinery and equipment		4,667		1,077						5,744
Computer and communication equipment		39,987		4,410						44,397
Transportation equipment		7,396		462	- (	218)				7,640
Office equipment		353,979		64,914	- (	3,747				415,146
Leasehold improvements		47,000								47,000
Other equipment		20,428		3,846						24,274
	\$	1,381,342	\$	202,624	(3)	27,291)	S		\$	1,556,675
						Nine months ended September 30, 2014
		Opening net								Closing net
Accumulated depreciation		book amount		Additions		Disposals		Reclassifications		book amount

Accumulated depreciation	book amount	Additions		Disposals	Reclassifications		book amount
Buildings	\$ 769,370 \$	$127,618$ (\$		30,751) \$	$\sim$	\$	866,237
Machinery and equipment	3,255	1,059		٠			4,314
Computer and communication equipment	34.673	4.084		$\blacksquare$			38,757
Transportation equipment	7,182	576		569)			7,189
Office equipment	363,515	53,060		83,205)			333,370
Leasehold improvements	47,000						47,000
Other equipment	17,003	3,779		1,629)			19,153
	\$ 1,241,998	\$ 190,176	1\$	116, 154)	- \$ $\blacksquare$	S	1,316,020

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:

		September 30, 2015	December 31, 2014	September 30, 2014
Land	\$	203,494 \$	203,494 \$	203,494
Leased assets-land		2,592,235	2,592,342	2,593,366
Leased assets-buildings		3,208,493	3,279,719	3,302,049
	S	6,004,222	6,075,555	6,098,909

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

					Nine months ended September 30, 2015
Cost		Opening net book amount	Additions		Disposals		Reclassifications		Closing net book amount
Land	\$	203,494	\$	S	L.	\$		\$	203,494
Leased assets-land		2,592,342			$71)$ (		36)		2,592,235
Leased assets-buildings		3,941,750			$5,259$ (		2,768)		3,933,723
	S	6,737,586	\$	$($ \$	5,330) $($ \$		2,804)	\$	6,729,452
					Nine months ended September 30, 2014
		Opening net							Closing net
Cost		book amount	Additions		Disposals		Reclassifications		book amount
Land	\$	1,741,924	\$ ÷	\$		$-$ (\$	1,538,430)	\$	203,494
Leased assets-land		3,204,530			- (		611,164)		2,593,366
Leased assets-buildings		3,949,804	1,484		8,442)				3,942,846
	S	8,896,258	\$ 1,484	(3)	$8,442)$ (\$		2,149,594)	\$	6,739,706
					Nine months ended September 30, 2015
		Opening net							Closing net
Accumulated depreciation		book amount	Additions		Disposals		Reclassifications		book amount
Leased assets-buildings	S	662,031	\$ 64,507	(3)	884) (\$		424)	S	725,230
					Nine months ended September 30, 2014
		Opening net							Closing net
Accumulated depreciation		book amount	Additions		Disposals		Reclassifications		book amount
Leased assets-buildings	\$	583,226	\$ 65,308	$($ \$	7,737)	$\overline{\mathbf{r}}$		\$	640,797

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

$\ddot{\phantom{1}}$

	Three months ended September 30,
	2015	2014
Rental revenue from the lease of the investment property		91,769 94,406
Direct operating expenses arising from the investment property that generated rental income in the period		39,849 38,946 S
Direct operating expenses arising from the investment property that did not generate rental income in the
period	S
		Nine months ended September 30,

	2015	2014
Rental revenue from the lease of the investment property		279,412 280,945
Direct operating expenses arising from the investment property that generated rental income in the period		116,098 118,052
Direct operating expenses arising from the investment property that did not generate rental income in the

D. As of September 30, 2015, December 31, 2014 and September 30, 2014, the fair value of the investment property held by the Group was \$12,885,493 \$12,935,936 and \$12,949,295, respectively. The Group management estimated the fair value based on market evidence on transaction price of similar property and assessed value.

E. Information about the investment property that was pledged to others as collateral is provided in Note 8.

(13) Intangible assets

A. Information of book values are as follows:

	September 30, 2015 December 31, 2014 September 30, 2014
Service concession	S	2,315,752 \$	2,361,692 \$	2,377,005
Software		1.120	803	878
Trademarks and licences		286	500	571
	S	2,317,158	2,362,995	2,378,454

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

	Nine months ended September 30, 2015
Cost	Opening net book amount		Additions		Disposals	Reclassifications			Closing net book amount
Service concession	\$ 2,868,372	- \$	ψ,	S	- \$		$\blacksquare$	S	2,868,372
Software	19,559		530		17,169)		٠		2,920
Trademarks and licences	3,139								3,139
	2,891,070	\$	530	(\$	17.169)	-S	$\blacksquare$		2,874,431

	Nine months ended September 30, 2014
Cost	Opening net book amount	Additions	Disposals	Reclassifications	Closing net book amount
Service concession	\$ 2,868,372	S	\$	\$	\$ 2,868,372
Software	18,189	407			18,596
Trademarks and licences	3,139				3,139
	2,889,700 S.	407 S	\$	\$	2,890,107 S
			Nine months ended September 30, 2015
	Opening net				Closing net
Accumulated Amortization	book amount	Additions	Disposals	Reclassifications	book amount
Service concession	\$ 506,680	\$ 45,940	\$	\$	\$ 552,620
Software	18,756	213	17,169) -6		1,800
Trademarks and licences	2,639	214			2,853
	528,075	S 46,367	(\$ 17,169)	\$	\$ 557,273
			Nine months ended September 30, 2014
	Opening net				Closing net
Accumulated Amortization	book amount	Additions	Disposals	Reclassifications	book amount
Service concession	\$ 445,427	\$ 45,940	\$	\$	\$ 491,367
Software	16,902	816			17,718
Trademarks and licences	2,355	213			2,568
	\$ 464,684	\$ 46,969	\$	\$	\$ 511,653

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

	Three months ended September 30.
		2015	2014
Operating costs	\$	15,314 - \$	15,314
Administrative expenses		161	149
	\$	15,475 \$	15,463
		Nine months ended September 30,
		2015	2014
Operating costs	\$	45,940 -\$	45,940
Administrative expenses		427	1,029
	ς	46,367 \$	46,969
(14) Short-term borrowings
	$\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $20.2017 \text{ m}$		$\blacksquare$


Unsecured borrowings	S	2,044,874 \$	$1,623,084$ \$	1,790,000
Secured borrowings		1,680,000	1,682,500	2,332,584
		3,724,874	3,305,584	4,122,584
Interest rate range		$1.92\% \sim 2.59\%$	$1.92\% - 2.59\%$	$1.95\% \sim 2.70\%$

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

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

(15) Short-term bills payable

					September 30, 2015 December 31, 2014 September 30, 2014
Commercial papers	\$	1,229,600	2,605,000	-8	2,496,000
Less: Unamortized discount		885)	2,482)		2,354)
	S	1,228,715	2,602,518		2,493,646
Interest rate range		$0.56\%$ ~2.46%	$0.79\% - 2.48\%$		$0.73\% \sim 2.50\%$

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	September 30, 2015 December 31, 2014				September 30, 2014
Advance real estate receipts	\$ 2,814,605	^S	2,728,482	\$	3,985,355
Advance rent	192,041		192,169		134,172
Other advance receipts	121,299		116,484		132,937
	\$ 3,127,945	\$	3,037,135	\$	4,252,464
$(17)$ Bonds payable
	September 30, 2015		December 31, 2014		September 30, 2014
2012 1st secured ordinary
bonds payable	\$ 2,000,000	-\$	2,000,000	S	2,000,000
2013 1st secured ordinary
bonds payable	2,500,000		2,500,000		2,500,000
	4,500,000	S	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

	September 30, 2015		December 31, 2014		September 30, 2014
Secured bank borrowings	\$ 9,695,281	S	9,313,419	\$	9,163,554
Unsecured bank borrowings	420,000		447,500		340,000
	10,115,281		9,760,919		9,503,554
Less: Current portion	596,870)		2,111,470)		1,921,670)
	\$ 9,518,411		7,649,449	S	7,581,884
Range of maturity dates	2015.11.23~2027.11.02		2015.03.18~2027.11.02		2014.11.30~2027.11.02
Range of maturity rates	$0.80\%$ ~3.00%		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

		Nine months ended September 30,
		2015	2014
At January 1	S	81,720 -S	79,071
Additions		22,625	20,260
Used		19,408)	17,013)
At September 30		84,937	82,318

(20) Pension

A.(a)The Company and its domestic subsidiaries have a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees' service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company and its domestic subsidiaries contribute monthly an amount equal to 2% of the employees' monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee.
(b) For the aforementioned pension plan, the Group recognized pension costs of \$949, \$1,192, \$2,845 and \$3,576 for the three months and nine months ended September 30, 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 months and nine months ended September 30, 2015 and 2014 were \$18,093, \$15,433, \$46,255 and \$46,903, respectively.
(21) Share-based payment-employee compensation plan
A. For the nine months ended September 30, 2015, the Group's share-based payment: None,
B. For the nine months ended September 30, 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		(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	Riskless	Fair price
Arrangement type	Grant date	price	price	volatility	duration	dividend	rate	per unit
Cash capital increase	2014.01.13	16.85NT	14.45NT	23.50%	$0.19$ vear		$0.40\%$	2.45NT
reserved for employees				(Note)

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

D. For the nine months ended September 30, 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)


	2015	2014
At January 1	$1,662,342$ \$	1,313,924
Stock dividends		48,418
Capital increase		300,000
At September 30	1,662,342	1,662,342

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 of 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 September 30, 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. The Company's subsidiary, Ta-Chen Construction & Engineering Corp. (Ta-Chen) has acquired the Company's shares in an open market to maintain the equity interest of the Company's shareholders. In order to strengthen management through eliminating interlocking shareholding, the Board of Directors of Ta-Chen has resolved to reduce capital of \$435,025 (elimination of 43,502 thousand shares) by returning the Company's shares (of 39,016 thousand shares) to Cheng-Shi Investment Holdings Co., Ltd. (Cheng-Shi Investment), and set the effective capital reduction date as August 5. 2015. Cheng-Shi Investment's Board of Directors has resolved the capital reduction and set the reduction effective on September 21, 2015, and returned shares to the Company. As of September 30, 2015, the treasury shares held by the Company amounted to 39,016 thousand shares and the Company will proceed with the retirement of treasury shares.

F. As of September 30, 2015, December 31, 2014 and September 30, 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 655 thousand, 39,671 thousand and 39,671 thousand, the average par value was NT\$1.52, NT\$1.52 and NT1.52 per share, and the fair value was NT\$9.93, NT\$12.70 and NT\$12.10 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.

			Capital surplus
	Share premium	Treasury share transactions	Change in equity of subsidiaries	Others	Total
2015
At January 1	\$1,408,500	\$ 514,061	\$	7,232 \$	\$1,929,793
Recognition of change in equity of subsidiaries in portion to the Group's
ownership			52,001		52,001
At September 30	\$1,408,500	\$ 514,061	\$ 52,001	7,232 \$	\$1,981,794
			Capital surplus
	Share	Treasury share	Employee
	premium	transactions	stock options	Others	Total
2014
At January 1	S	\$ 514,061	\$	S 7,232	521,293 S
Share-based payment of cash capital
increase reserved for employee pre-emption			73,500		73,500
Cash capital increase	1,408,500		73,500)		1,335,000
At September 30	\$1,408,500	S 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. The Company recognized dividends distributed to owners amounting to \$1,329,873 (\$0.8 (in dollars) per share) and \$968,354 (\$0.6 (in dollars) per share) for the nine months ended September 30, 2015 and 2014, respectively. On June 17, 2015, the stockholders resolved that total dividends for the distribution of earning for the year of 2014 were \$1,329,873 with \$0.8 (in dollars) per share.
E. For information relating to employees' remuneration (bonuses) and directors' and supervisors' remuneration, please refer to Note 6(31).

$(25)$ Other equity items

	Available-for-sale	Currency
	investment			translation Treasury stock	Total
At January 1, 2015	\$ 1,434,529	\$ 1,690	$\left( \mathcal{S} \right)$	60,440	\$1,375,779
Available-for-sale investment:
-Loss on fair value	292,734)				292,734)
Currency translation differences:
-Group		2			2
At September 30, 2015	1,141,795	\$ 1,692	$\left( \delta \right)$	60,440	\$1,083,047
	Available-for-sale	Currency
	investment	translation		Treasury stock	Total
At January 1, 2014	\$ 2,000,470 (\$	859(			60,440) \$1,939,171
Available-for-sale investment:
-Loss on at fair value	554,903)			- (	554,903)
Currency translation differences:
-Group		1,900			1,900
At September 30, 2014	1,445,567	\$ 1,041	í\$	60,440	\$1,386,168

(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
September 30, 2015
Assets
Notes receivable, net	\$ 62.773	-S	884	S	63,657
Accounts receivable, net (including related parties)	252,876		853,498		1,106,374
Inventories	8,517,786		14,768,136		23,285,922
Construction contract receivables	855,530		507,730		1,363,260
	\$ 9,688,965		16,130,248		25.819.213

	Within 12 months	Over 12 months		Total
September 30, 2015
Liabilities
Notes payable	\$ 8,130	$\mathbb{S}$		\$	8,130
Accounts payable	1,949,460		925,797		2,875,257
Construction contract payables	397,759		64,469		462,228
	\$ 2,355,349	\$	990,266	\$	3,345,615
	Within 12 months		Over 12 months		Total
December 31, 2014
Assets
Notes receivable, net	\$ 123,283	$\mathbb{S}$	247	$\mathbf{s}$	123,530
Accounts receivable, net (including related parties)	4,832,468		813,984		5,646,452
Inventories	7,115,640		13,781,065		20,896,705
Construction contract receivables	496,106		459,784		955,890
	\$ 12,567,497	\$	15,055,080	\$	27,622,577
December 31, 2014
Liabilities
Notes payable	\$ 10,437	S		$\mathbf S$	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
September 30, 2014 Assets
Notes receivable, net	\$ 88,288	\$		\$	88,288
Accounts receivable, net (including related parties)	173,004		834,908		1,007,912
Inventories	7,214,419		15,673,142		22,887,561
Construction contract receivables	499,552		761,006		1,260,558
	\$ 7,975,263	$\boldsymbol{\mathcal{S}}$	17,269,056	\$	25,244,319

		Within 12 months Over 12 months			Total
September 30, 2014
Liabilities
Notes payable	\$	11,484	S		- \$	11,484
Accounts payable		1.394,249		931,205		2,325,454
Construction contract payables		163,253		424,828		588,081
	ς	1,568,986	\$	1,356,033	S	2,925,019

(27) Operating revenue

$\sim 10^{11}$ km $^{-1}$

	Three months ended September 30,
		2015		2014
Sales revenue	S	1,726,599	\$	1,834,846
Service revenue		102,848		133,726
Construction contract revenues		377,814		1,051,834
Service concession revenue
-Operating service revenue		91,831		90,853
	$\mathbf S$	2,299,092	\$	3,111,259
		Nine months ended September 30,
		2015		2014
Sales revenue	\$	4,830,846	S	5,532,477
Service revenue		375,033		384,233
Construction contract revenues		2,547,635		3,589,462
Service concession revenue
-Operating service revenue		276,819		274,521
	\$	8,030,333	\$	9,780,693

(28) Other income

		Three months ended September 30,
		2015		2014
Interest income	\$	824	S	827
Dividend income		7,978		43,371
Others		51,033		10,438
	ጥ	59,835	S	54,636
	Nine months ended September 30,
		2015		2014
Interest income	\$	5,531	S	7,601
Dividend income		125,732		227,299
Others		137,745		146,043
	۵	269,008		380,943

(29) Other gains and losses

		Three months ended September 30,
		2015	2014
Net (losses) gains on financial assets at fair value through profit or loss	í\$	281) (\$	11,388)
Net currency exchange gains (losses)		22,059	15,983
Others		23,439	585)
		45,217	4,010

Note 1 : Please refer to Note 9(14) for details

	Nine months ended September 30,
		2015	2014
Net (losses) gains on financial assets at fair value through profit or loss	\$	$110,175$ (\$)	31,735)
Net currency exchange gains (losses)		12,825	8,553
Arbitration expenses and compensation loss (Note 1)		26,100)
Impairment of financial assets (Note 2)		- (	11,814)
Others		7,188)	5,334)
		89,712	40,330)

Note 1: Please refer to Note 9(14) for details. Note 2: Please refer to Note 6(8) for details. (30) Finance costs

	Three months ended September 30,
	2015		2014
Interest expense:
Bank borrowings	\$ 37,885	\$	31,804
Commercial paper	5,853		10,358
Ordinary bond	32,104		30,626
Others	302		270
Other finance expenses	300		355
	\$ 76,444	\$	73,413

	Nine months ended September 30,
	2015		2014
Interest expense:
Bank borrowings	\$ 138,102	-\$	140,628
Commercial paper	21,040		34,171
Ordinary bond	92,670		91,192
Others	1,534		1,015
Other finance expenses	900		955
	\$ 254,246		267,961

(31) Expenses by nature

	Three months ended September 30, 2015
		Operating costs		Operating expenses		Total
Employee benefit expense
Wages and salaries	$\mathbf S$	229,228	\$	124,393	\$	353,621
Labor and health insurance fees		17,236		15,010		32,246
Pension costs		11,104		7,938		19,042
Other employee benefit expense		2,319		10,085		12,404
	\$	259,887	\$	157,426	\$	417,313
Depreciation charges	\$	21,439	\$	66,645	\$	88,084
Amortization charges	\$	15,313	\$	162	\$	15,475
				Three months ended September 30, 2014
		Operating costs		Operating expenses		Total
Employee benefit expense
Wages and salaries	\$	237,490	\$	142,994	\$	380,484
Labor and health insurance fees		17,148		17,108		34,256
Pension costs		9,072		7,553		16,625
Other employee benefit expense		1,388		6,553		7,941
	\$	265,098	$\mathbf S$	174,208	\$	439,306
Depreciation charges	\$	21,487	\$	68,592	\$	90,079
Amortization charges	\$	14,435	\$	1,029	\$	15,464

	Nine months ended September 30, 2015
		Operating costs		Operating expenses		Total
Employee benefit expense
Wages and salaries	S	669,339	$\mathbf{\hat{s}}$	428,933	\$	1,098,272
Labor and health insurance fees		52,331		40,582		92,913
Pension costs		26,805		22,295		49,100
Other employee benefit expense		6,369		34,348		40,717
	\$	754,844	\$	526,158	\$	1,281,002
Depreciation charges	\$	64,507	\$	202,624	\$	267,131
Amortization charges	\$	45,940	\$	427	\$	46,367
				Nine months ended September 30, 2014
		Operating costs		Operating expenses		Total
Employee benefit expense
Wages and salaries	\$	684,398	\$	568,190	$\mathbf S$	1,252,588
Labor and health insurance fees		52,217		43,400		95,617
Pension costs		27,299		23,180		50,479
Other employee benefit expense		5,396		24,021		29,417
	\$	769,310	\$	658,791	\$	1,428,101
Depreciation charges	\$	65,308	\$	190,176	\$	255,484
Amortization charges	\$	45,940	\$	1,029	\$	46,969

A. According to the Articles of Incorporation of the Company, details of the percentage of earnings that shall be distributed as employees' bonus and directors' and supervisors' remuneration are provided in Note 6(24).

However, in accordance with the Company Act amended in May 20, 2015, a company shall distribute employee remuneration, based on the current year's profit condition, in a fixed amount or a proportion of profits. If a company has accumulated deficit, earnings should be channeled to cover losses. Aforementioned employee remuneration could be paid by cash or stocks. Specifics of the compensation are to be determined in a board meeting that registers two-thirds of directors in attendance, and the resolution must receive support from half of participating members. The resolution should be reported to the shareholders at the shareholders' meeting. Qualification requirements of employees, including the employees of subsidiaries of the company meeting certain specific requirements, entitled to receive aforementioned stock or cash may be specified in the Articles of Incorporation.

B. For the three months and nine months ended September 30, 2015 and 2014, employees' bonus was accrued at \$2,227, \$4,441, \$15,149 and \$16,164, respectively; directors' and supervisors' remuneration was accrued at \$3,341, \$6,660, \$22,724 and \$24,245, respectively. The expenses

recognized were accrued based on the net income and the percentage specified in the Articles of Incorporation of the Company (2% and 3% for employees and directors/supervisors, respectively), taking into account other factors such as legal reserve.

Employees' bonus and directors' and supervisors' remuneration of 2014 as resolved by the stockholders were in agreement with those amounts recognized in the 2014 financial statements. The calculation difference between employees' bonus and 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. As of the date of report, earnings for the year ended December 31, 2014 have not been distributed yet.

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.

(32) Income tax

A. Income tax expense

(a)Components of income tax expense:

	Three months ended September 30,
		2015	2014
Current tax:
Current tax on profits for the period	\$	377,108 (\$	4,378)
Tax on undistributed surplus earnings
Effects of investment tax credit		2,454)
Under (over) provision of prior period's income tax		18,693
Land value increment tax recognized in income tax of the period		49,392	5,741
Total current tax		442,739	1,363
Deferred tax:
Origination and reversal of temporary differences		346,742) (	10,607)
Net operating loss carryforward		14,508)
Total deferred tax		361,250	10,607)
Income tax expense (benefit)		81,489 (S	9,244

	Nine months ended September 30,
	2015		2014
Current tax:
Current tax on profits for the period	\$	423,511	\$	9,145
Tax on undistributed surplus earnings		82,522		45,977
Effects of investment tax credit		54,070)
Under (over) provision of prior period's income tax		37,831		1,265)
Land value increment tax recognized in income tax of the period		56,689		20,355
Total current tax		546,483		74,212
Deferred tax:
Origination and reversal of temporary differences		337,795)		2,824
Net operating loss carryforward		23,111)
Total deferred tax		360,906)		2,824
Income tax expense		185,577	\$	77,036

B. As of September 30, 2015, the Company's income tax returns through 2013 have been assessed and approved by the Tax Authority. However, 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 conservatism principle, the related income tax expense has been accrued.
C. Unappropriated retained earnings:

		September 30, 2015 December 31, 2014 September 30, 2014
Earnings generated in and
after 1998	2, 141, 479 \$	2,854,738 \$	1,451,585

D.As of September 30, 2015, December 31, 2014 and September 30, 2014, the balance of the imputation tax credit account was \$24,972, \$9,524 and \$8,276, respectively. The creditable tax rate was 1.79% for 2013 and is estimated to be 1.81% 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 months ended September 30, 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	\$ 146,050	1,622,671	\$ 0.09
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	\$ 146,050	1,622,671
Assumed conversion of all dilutive
potential ordinary shares
Employees' bonus		267
Profit attributable to ordinary shareholders of the parent plus assumed conversion
of all dilutive potential ordinary shares	\$ 146,050	1,622,938	0.09
		Three months ended September 30, 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	\$ 318,758		0.20
		1,574,000	\$

Diluted earnings per share Profit attributable to ordinary shareholders of the parent	\$ 318,758	1,574,000
Assumed conversion of all dilutive
potential ordinary shares
Employees' bonus		379
Profit attributable to ordinary shareholders of the parent plus assumed conversion

		Nine months ended September 30, 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	\$ 856,486	1,622,671	\$ 0.53
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	\$ 856,486	1,622,671
Assumed conversion of all dilutive potential ordinary shares
Employees' bonus		1,819
Profit attributable to ordinary shareholders of the parent plus assumed conversion
of all dilutive potential ordinary shares	\$ 856,486	1,624,490	\$ 0.53

		Nine months ended September 30, 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	\$ 991,809	1,574,000	\$ 0.63
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	\$ 991,809	1,574,000
Assumed conversion of all dilutive
potential ordinary shares
Employees' bonus		1,379
Profit attributable to ordinary shareholders of the parent plus assumed conversion

(34) Operating leases

$\bar{z}$

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 \$96,811 and \$290,434 for the three months and nine months ended September 30, 2015 and 2014, respectively. The future

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

	September 30, 2015		December 31, 2014		September 30, 2014
Not later than one year	399,716	- \$	397,174	- \$	393,864
Later than one year but not
later than five years	2,031,620		2,023,995		2,021,348
Later than five years	6,080,158		6,388,205		6,490,146
	8,511,494	\$	8,809,374		8,905,358

(35) Non-cash transactions

Investing and financing activities with no cash flow effects:

		Nine months ended September 30,
	2015	2014
1. Investment property reclassified to land held for construction site	\$	2,149,594
2. Investment property reclassified to buildings and land held for sale	\$ 2,380	\$
3. Buildings and land held for sale reclassified to property, plant and equipment	\$	106,249 \$
4. Merchandise inventory reclassified to property, plant and equipment	\$ 167	\$
7. RELATED PARTY TRANSACTIONS
(1) Significant related party transactions and balances
A. Sales of goods:
(a)Rental income:
	Three months ended September 30,
Construction subcontracting	2015	2014
$-$ Associates	\$ 94,458	\$ 546,153
	Nine months ended September 30,
Construction subcontracting	2015	2014

$-$ Associates

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.

252,932

$\mathbb S$

2,030,624

As of September 30, 2015, December 31, 2014 and September 30, 2014, the status of the construction of the associates undertaken by the Group was as follows:

				September 30, 2015 December 31, 2014 September 30, 2014
Associates:
Total amount of construction contracts that were signed but had not been settled yet	\$ 11,297,720 \$		11,073,692 \$	11,073,692
Construction payments received	$10,334,329$ (		$9,882,922)$ (	9,527,451)
Construction payments receivable	\$ 963,391	\$	1,190,770	$\mathbb{S}$ 1,546,241
(b)
		Three months ended September 30,
Rental income:		2015		2014
$-$ Associates	\$	11,365	\$	11,326
		Nine months ended September 30,
Rental income:		2015		2014
$-$ Associates	\$	35,417	$\mathbf S$	34,708
Rent is determined by mutual agreements and is collected monthly.
B. Accounts receivable
				September 30, 2015 December 31, 2014 September 30, 2014
Accounts receivable-related parties:
$-$ Associates	\$ 445,534	$\mathbb{S}$	440,429	460,215 \$
C. Other payables
				September 30, 2015 December 31, 2014 September 30, 2014
Rental payable:
$-$ Associates	\$ 105,728	S	194,001	£. 129,507
D. Others
(a)
		Three months ended September 30,
		2015		2014
Rental expenses:
$-$ Associates	\$	129,185	\$	134,255
		Nine months ended September 30,
		2015		2014
Rental expenses:
$-$ Associates	\$	406,227	S	415,105

September 30, 2015 December 31, 2014 September 30, 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.

	I hree months ended September 30,
	2015			2014
Salaries and other short-term employee benefits	- S	5,920	- \$	5,944
Termination benefit
Post-employment benefits
Other long-term benefits
Share-based payment
		5,920

(2) Key management compensation

	Nine months ended September 30,
		2015		2014
Salaries and other short-term employee benefits	-S	83,747	S	77,783
Termination benefit
Post-employment benefits
Other long-term benefits
Share-based payment				35,403
	\$	83.74		113,186

8. PLEDGED ASSETS

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

Pledged asset		September 30, 2015 December 31, 2014 September 30, 2014		Purpose
Demand deposits, certificate of deposit and checking deposit (shown as "other financial assets - current" and "other financial assets - non-current")	s. 2,866,492	S 3,684,947	s	3,972,807 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	347,778	238,547	242,827	Construction performance guarantees, short-term and long-term borrowings
Land held for construction	7,441,766	6,300,506	6,888,053	Short-term borrowings, notes and bills payable and long-term borrwings
Construction in progress	2,697,647	1,275,593	3,254,719	Short-term borrowings, notes and bills payable and long-term borrwings
Available-for-sale financial assets	784,152	1,033,280	1,145,686	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	1,567,241	1,120,379	1,512,240	Short-term borrowings, notes and bills payable
Land	2,729,051	2,729,051	2,730,000	Construction performance guarantees, short-term borrowings, notes and bills payable and long-term borrowings
Buildings	2,056,791	2,103,423	2.116,175	Short-term borrowings, notes and bills payable and long-term borrowings
Investment property	4,055,619	4.807,921	5.734,437	Construction performance guarantees, short-term borrowings, notes and bills payable and long-term borrowings
	25,121.963	S 23,869,073	\$ 28,172,370
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:

		September 30, 2015	December 31, 2014			September 30, 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	1.734.883 \$.	2,000,000 s.	1.773.973 S.	2.000.000 S.	1.775.337 S
Ta-Chen Construction & Engineering Corp.	1.900.000		1.900.000	160,256	1,900,000	276,226
	3,900,000	1.734.883 S.	3,900,000 S.	1,934.229	3,900,000 s	2,051,563 S.

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

		September 30, 2015		December 31, 2014		September 30, 2014
	Total endorsement	Amount	Total endorsement		Total
Name of company	amount	drawn	amount	Amount drawn	endorsement amount	Amount drawn
Dong-Feng Enterprises Co., Ltd.	\$1,810,889	1,810,889 s	1,810,889 s	1,810,889 S	.810,889 S	1,810,889 S
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	$\overline{\phantom{a}}$	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 ς.	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 vet incurred are as follows:

		September 30, 2015 December 31, 2014 September 30, 2014
Property, plant and equipment \$	$12,155$ \$	337,710 \$	82,078

(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 vears 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 September 30, 2015, December 31, 2014 and September 30, 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 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 September 30, 2015, December 31, 2014 and September 30, 2014, A party had provided performance guarantee with a guarantee letter issued by the bank, both amounting to \$20,000.
C. During the operation period, A party should pay B party dormitory operating royalties based on 2% of annual operating revenue of the dormitories and auxiliary facilities operating royalties based on 4% of annual operating revenue of the auxiliary facilities. A party should pay such operating royalties for prior year before the end of September 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:

September 30, 2015 December 31, 2014 September 30, 2014

Lot No.12-12, and No.601-1 Guo-An

Sec., Xitun District, Taichung City \$ $181,090$ \$ 181,090 $\sqrt{3}$ 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 instalments according to the contractual terms. The Company had provided such performance guarantee with guarantee letter of the bank as follows:

				September 30, 2015 December 31, 2014 September 30, 2014
Taichung City Koan An Section No.591-	S	63,880	63.880	63,880
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	$\blacksquare$	$\bullet$
The Company giored on companion with $M_{\rm m}$ Form Tool View and Ward I View II is $A \cap \mathbb{Z}$

(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 September 30, 2015, December 31, 2014 and September 30, 2014, balance of the performance honds were as follows:

	September 30, 2015	December 31, 2014 September 30, 2014
No. 602, Sec. Zhi-Shan 1, Shilin
District, Taipei City	350,000	350,000	350,000
No. 572, Sec. Zhi-Shan 1, Shilin
District, Taipei City	19,570	19,570	19,570

(13) As of September 30, 2015, December 31, 2014 and September 30, 2014, performance guarantee letters issued for construction undertaking, warranty and leases of subsidiary, Ta-Chen Construction & Engineering Corp., amounted to \$651,240, \$780,581 and \$805,611, respectively.

(14) The Subsidiary, Ta-Chen Construction & Engineering Corp. ("Ta-Chen"), Hung-Yi Construction Corp. and Evergreen International Engineering Corp. ("Evergreen") (collectively referred herein as the "joint contractors") jointly undertook the construction of the new office building of the American Institute in Taiwan. As the joint contractors and the owner of this project both claim the counterparty defaulted on the contract, they terminated the contract and referred the dispute to arbitration. A settlement was reached in August 2013, and the joint contractors would together pay a reconciliation payment amounting to US\$16.4 million, which Ta-Chen pays 68.24%. Ta-Chen has estimated and recognized related arbitration expenses, reconciliation payment and construction loss.

Furthermore, Ta-Chen has paid the settlement on behalf of the joint contractors. Ta-Chen planned to request Evergreen to pay all payments on behalf of other joint contractors. As of December 31, 2014, payments on behalf of other joint contractors recognized as other receivables were \$221,100. As the joint contractors have disagreement regarding the contract, Ta-Chen has filed an arbitration application with the Chinese Arbitration Association, Taipei, and received an arbitration award on March 27, 2015 wherein, Evergreen International Engineering shall pay Ta-Chen a total amount of \$169,765 plus interest at 5% per annum from December 17, 2013 until the date of payment. Additionally, on June 5, 2015, the arbitration court corrected the payment to \$201,427. Ta-Chen reached an agreement with Evergreen on June 18, 2015 that Evergreen shall pay \$195,000 and both sides shall withdraw revocation proceedings or application for compulsory enforcement. Therefore, Ta-Chen has written off other receivables and recognized loss of \$ 26,100 in the first half of the year (shown as other gains and losses).

Ta-Chen received the above payment of \$195,000 from Evergreen and the case was closed.

(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 million, with Prince Housing & Development Corp. and China Metal Products Co., Ltd. as guarantors. Under the contract, the subsidiary promised its tangible net equity shall not be negative and current ratio, liability ratio, tangible net equity and interest coverage of Prince Housing & Development Corp. and China Metal Products Co., Ltd. shall conform to certain 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

None. 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 amortized 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 program 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 nine months ended September 30, 2015 and 2014 would have been \$13,840 and \$13,626 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 nine months ended September 30, 2015 and 2014 would both have increased/decreased by \$34,052 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 \$16,396 and \$25,933, 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 nine months ended September 30, 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.

		September 30, 2015
	Within 1 year	Between 1 to 3 years	Over 3 years
Non-derivative financial liabilities:
Short-term borrowings	\$ 3,784,616	\$	\$
Short-term notes and bills payable	1,229,600
Notes payable	128,995
Accounts payable	2,047,211	46,374	879,653
Other payables	1,077,736	5,709	90
Guarantee deposits received	83,252	32,908	30,465
Bonds payable	65,350	2,104,100	2,538,750
Long-term borrowings (including current portion)	623,235	3,708,445	7,673,194
		December 31, 2014
	Within 1 year	Between 1 to 3 years	Over 3 years
Non-derivative financial liabilities:
Short-term borrowings	\$ 3,347,853	S	\$
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
		September 30, 2014
	Within 1 year	Between 1 to 3 years	Over 3 years
Non-derivative financial liabilities:
Short-term borrowings	\$ 4,261,029	\$	\$
Short-term notes and bills payable	2,496,000
Notes payable	135,490
Accounts payable	1,559,598	92,016	839,189
Other payables	905,340	581
Guarantee deposits received	139,318	6,479	35,810
Bonds payable	65,350	130,700	4,516,338
Long-term borrowings (including current portion)	1,948,170	2,402,467	5,369,481

(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: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The 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 or indirectly.
Level 3: Unobservable inputs for the asset or liability. The fair value of the Group's investment in equity investment without active market is included in Level 3.
C. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities at September 30, 2015, December 31, 2014 and September 30, 2014 is as follows:

September 30, 2015	Level 1	Level 2		Level 3		Total
Assets:
Recurring fair value measurements
Financial assets at fair value
through profit or loss
Equity securities	\$ 388,623	\$	$^{\circ}$		S	388,623
Available-for-sale financial assets
Equity securities	1,059,949			234,612		1,294,561
	\$1,448,572	\$		\$234,612		\$1,683,184
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	S,	- \$		\$	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

Septermber 30, 2014		Level 1		Level 2	Level 3		Total
Assets:
Recurring fair value measurements
Financial assets at fair value
through profit or loss
Equity securities	S	301,834 \$		- \$	$\frac{1}{2}$	S.	301,834
Available-for-sale financial assets
Equity securities		1,478,150			163,934		1,642,084
		.779.984	S		163,934		1,943,918

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

(a) The instruments the Group used market quoted prices as their fair values (that is, Level 1) are 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.

E. For the nine months ended September 30, 2015 and 2014, there was no transfer between Level 1 and Level 2.

F. The following chart is the movement of Level 3 for the nine months ended September 30, 2015 and 2014:

		Nine months ended September 30,
		2015		2014
				Non-derivative equity Non-derivative equity
		instruments		instruments
At January 1		276,597	- \$	285,365
Gains and losses recognised in other comprehensive income (Note)		41,985) (		96,431)
Proceeds from capital reduction				25,000)
September 30		234,612		163,934
Movement of unrealized gain or loss in profit or loss	¢

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

G. For the nine months ended September 30, 2015 and 2014, there was no transfer into or out from Level 3.
H. Finance and Accounting segment is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently assessing valuation results and making any other necessary adjustments to the fair value.
I. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

		Fair value at September 30, 2015	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
Non-derivative equity
Unlisted shares	S	234,612	Net asset value	Net asset value	N/A	The higher the net asset value, the higher the fair value

J. The Group has carefully assessed the valuation models and assumptions used to measure fair value; therefore, the fair value measurement is reasonable. However, use of different valuation models or assumptions may result in 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:

				September 30, 2015
				Recognised in profit or loss		Recognised in other comprehensive income
	Input	Change	Favourable change	Unfavourable change	Fayourable change	Unfavourable change
Financial assets
Equity instruments	44,561	±1%			\$ 446	(\$ 446)
				December 31, 2014
				Recognised in profit or loss		Recognised in other comprehensive income
	Input	Change	Favourable	Unfavourable	Fayourable	Unfavourable
			change	change	change	change
Financial assets
Equity instruments	44,041	$\pm 1\%$	\$		\$ 440	$\left( \frac{6}{5} \right)$ 440)
				September 30, 2014
				Recognised in profit or loss		Recognised in other comprehensive income
	Input	Change	Favourable	Unfavourable	Favourable	Unfavourable
			change	change	change	change
Financial assets
Equity instruments	46,190	±1%			\$ 462	(\$ 462)

$\ddot{\phantom{a}}$

13. SUPPLEMENTARY DISCLOSURES

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

			Nine months ended September 30, 2015
				Write-off and
Item	Construction	Hotel	Others	Adjustment	Total
External operating revenue-net \$	4,967,773	2,513,809 S	548,751 £.	\$	\$ 8,030,333
Internal operating revenue-net	793,729		1,142,292	1,936,021)
Total segment revenue	5,761,502	2.513,809	1,691,043		8,030,333
Costs and expenses	5,372,340)	2,175,400)	746,566)	1,173,757	7,120,549)
Segment income	389,162	338,409	944,477		909,784
Other income	264,591	7,951	25,995 (	29,529)	269,008
Other gains and losses	52,369	156(	23,289)	60,476	89,712
Finance costs	233,692) (	$48,018$ ) (	266)	27,730 (	254,246)
Share of (loss)/profit of associates and joint ventures accounted for under equity method	527,994		79,123) (	431,076)	17,795
Segment income before tax	1,000,424	298,498	867,794		1,032,053
Income tax expense	99,432	$30,323$ ) (	22,577) (	33,245) (	185,577)
Net income for the period	\$ 900,992	S 268,175	845,217		846,476
Segment assets	48,111,400 S	7,449,198 S	2,267,100	4,579,910)	53,247,788

				Nine months September 30, 2014
						Write-off and
Item	Construction	Hotel		Others		Adjustment		Total
External operating revenue-net \$	6,664,229 S	2,565,135	-S	551,329	S.	£.		9,780,693
Internal operating revenue-net	746,147			48,219 (		794,366)
Total segment revenue	7,410,376	2,565,135		599,548				9,780,693
Costs and expenses	7,036,375)	$2,223,630$ (		447,279)		808,028		8,899,256)
Segment income	374,001	341,505		152,269				881,437
Other income	379,123	2,863		$22,050$ (		21,429)		380,943
Other gains and losses	$221,913$ (	$230)$ (		10,879)		192,692 (		40,330)
Finance costs	241,674) (	$48,631$ (		1)		20,681 (		267,961)
Share of (loss)/profit of associates and joint ventures accounted for under equity method	340,167			$6,890)$ (		240,229)		93,048
Segment income before tax	629,704	295,507		156,549				1,047,137
Income tax expense	$41,814)$ (	30,086) (		$2,640)$ (		2,496) (		77,036)
Net income for the period	\$ 587,890 S	265,421	S	153,909				970,101
Segment assets	48,828,502	7,488,306		2,633,737		4,449,349)	S	54,501,196

(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).

								Nine months ended September 30, 2015
Table 1																	Expressed in thousands of NTD
																	(Except as otherwise indicated)

					Maximum
					outstanding									Collateral
					the nine months balance during		Balance at				Amount of
Number			General ledger Is a related ended September September 30, Actual amount Interest							Nature of	transactions with the	Reason for short-term	Allowance for doubtful		Limit on loans	granted to a Ceiling on total
(Note 1)	Creditor	Borrower	account	È	30, 2015		2015	drawn down	tic	lcan	borrower	fmancing	account			Item Value single party loans granted		Note
0	Development Corp. Prince Housing &	Ta-Chen Construction Other receivables - & Engineering Corp. related parties		⊁	s,	200,000 \$	200,000		27	Short-term financiang		Additional operating capital	S)	None	44		500,000 \$ 9,300,214 Note 2

	Prince Security Co., 3	Consulting Co., Ltd. Prince Property Management	Other receivables - related parties	≻		15,000	15,000	10,000	$\overline{2}$ .	Short-term financiang	,	Additional operating capital		None		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'
	Note $T_2$ in accordance with the Given colored model is a straight $T_1$ . The set of $T_2$ (2) The subsidiaries are numbered in order starting from '1'

$\frac{1}{2}$

Prince Housing & Development Corp. Loans to others

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

$\ddot{\phantom{0}}$

Prince Housing & Development Corp.

Provision of endoursements and guarantees to others

Nine months ended September 30, 2015

Table 2

Expressed in thousands of NTD (Except as otherwise indicated)

					Number	(Note 1) Endorser guarantor	Prince Housing &	Development Corp.	Prince Housing &	Jevelopment Corp.				Engineering Corp.	Management Maintain Prince Apartment $\mathbb{C}_c$ , Lid
											Dong-Feng Enterprises Co.,Ltd.	Prince Utility Co., Ltd.
		Party being endorsed/guarantored				Company name	Ta-Chen Construction &	Engineering Corp	The Splendor Hotel	Taichung	Development Corp. Prince Housing &	Development Corp. Prince Housing &	Development Corp. Jin-Yi-Xing plywood Co., Prince Housing &	Development Corp. Ta-Chen Construction & Prince Housing &	Prince Security Co., Ltd.
			Relationship with	the endorsor	/guarantor (Note	ล
		Limit on	endorsements/	guarantees	provided for a	single party	4,650,107		4,650,107		2,000,000	1,000,000	2,500,000	1,500,000	20,000
Maximum	outstanding	endorsement/	guarantee	amount as of	September 30,	2015	1,900,000		2,000,000		1,810,889	900,000	2,500,000	927,889	20,000
	Outstanding	endoursement	guarantee	amount at		2015	1,900,000 ¢,		2,000,000		1,810,889	900,000	2,500,000	927,889	20,000
					September 30, Actual amount secured with the endorser/				1,734,883		1,810,889	638,763	2,086,198		10,000
		Amount of	endorsement/
Ratio of	accumulated	endorsement	guarantee amount	guarantees to net asset value of		drawn down collateral guarantor company					672	980	749	য়	$\boldsymbol{z}$
		Ceiling on total	amount of	endorsements	guarantees	provided	11,625,267 49		11,625,267		4,000,000	2,000,000	5,000,000	3,000,000	50,000
		endorsements endorsements s/guarantees			company to	subsidiary					z	z	z	z	z
	Provision of Provision of endorsement		guarantees / guarantees	by parent by subsidiary	to parent	company	z		z						z
Provision of			to the party	in the	Mainland	China	z		z		z	z	z	z	z
						Pootnote	Note ₃	and 4	Note 3	and 4	Note ⁵	Note 6	Nete ^-	Note 8	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 endorsementes and the limit of endorsements and guarantees for any single entity is 20% of the Company'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 4: In accordance with the Group's related regulations, the total accumulated anomulated ansus condocsements and guarantees cannot exceed 50% of the Group's net worth.

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 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 amount is \$50,000. 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 \$3,000,00.

Ì Ľ Ê ā ć,
------------------------

Expressed in thousands of NTD
(Except as educrivise indicated)

			Relationship with the securities			As of September 30, 2015
Securities held by	Marketable scennies	Name of investee companies	ESSUET	General ledger account	Number of slares	Book value	Ownership (%)	Foctnote Fair value
Prince Housing & Development Corp	न जन्म	Nantex Industry Co., Ltd.	Read	Available-for sale financial assets-non-current	v, 6,534,922	176,443	SA Note	Listed company, Note 3 27,00
	Stock	ScinoPham Taiwan, Ltd.	Nome	Available-for sale financial assets-non-current	21,822,00	851,175	Note 1	Listed company, Note 4 39.00
	Stock Stock	Simplo Technology Co. Ltd.	j Ž	Available-for sale financial assets-non-current	127,249	13,488	Note 1	OTC company 106.00
	Stock	Trade-Van Information Service Co., Ltd.	Space	Available-for sale financial assets-non-current	85,535	2,126	Note 1	Listed company 24.85
	Š	Easywell Biomedicals, Inc.	Space	Available-for sale financial assets-non-current	34,441	1,030	Note 1	OTC company 29.90
	siock	Genome International Biomedical Co. Ltd.	Nore	Available-for sale financial assets-non-current	$\frac{1}{2}$	34	Note 1	OTC company 26,00
	Sioci	Universal Venture Capital Investment Corp.	Norie	Available-for sale financial assets-non-current	1,400,000	13,062	Note 1	9.33
	Sinci Si	Grand Bills Finance Corp.	Nore 2	Available-for sale financial assets-non-current	48,672	$\tilde{m}$	Note 1	15.92
	Stock	Chipwell Tech.Corp.	None	Available-for sale financial assets-non-current	344,488	2,0.28	Note 1	5.89
	Stock	Nazımat Technology Co., Ltd.	Note:	Available-for sale financial assets-non-current	,198,956	5,836	Note 1	13.25
	Stock	Southern Science Joint Development Co., Ltd	None	Available-for sale financial assets-non-current	167,700	189,639	10.00	1.130.32
	Stock	Changing Information Technology Co., Ltd.	Non:	Available-for sale financial assets-non-current	116,741	$\vec{a}$	Note 1	$\frac{10}{2}$
	Stock	Formosoft International Co., Ltd	None	Available-for sale financial assets-non-current	55,920	373	Note 1	6.68
	Stock	resident Energy Development Corp.	Nore ²	Financial assets measured at cost-non-current	1,680,000	46,009	Note:	62.48
	Slock	President International Development Corp.	None	Financial assets measured at cost-non-current	87,745,770	841,520	6.63	Note 5 $rac{1}{2}$
	Stock	lia-Cheng Venture Capital Investment Co., Ltd.	yang 2	Financial assets measured at cost-non-current	159,024		Note 1	Note 2
	Stock	lia-Hua Venture Capital Investment Co., Ltd.	Rott	Financial assets measured at cost-non-current	211,22		P.90	Note 2
	Stock	Ever-Move Technology Co., Ltd	$\frac{1}{2}$	Financial assets measured at cost-non-current	1,076		Note 1	Note 2
	Stock	Chuang-Jing Technology Co., Ltd.	None	funneial assets measured at cost-non-current	12,645		Note 1	Note 2
	Stock	Bao-Mao Technology Co., Ltd.	None	Financial assets measured at cost-non-current	27,933		Note 1	Note 2
	Stock	ite-Lun Technology Co., Ltd.	None	Financial assets measured at cost-non-current	17,280		Note 1	Note 2
	Siack	Quan-Mao Technology Co., Ltd	Non:	rinancial assets measured at cost-non-current	341,745		Č.	Note 2
	S.ock	Wei-Jun Technology Co., Ltd.	$\frac{6}{2}$	Financial assets measured at cost-non-current	1,846		Note 1	Note 2
	Stock	Chieh-Cheng Technology Co., Ltd.	$\frac{1}{2}$	Financial assets measured at cost-non-current	41,343		Note 1	Note 2
	眉	Mega Diamond Money Market Fund	ğ	Financial assets at fair value through profit or loss-non-current	6,301,406	7,778	Note 1	12.36 Note 6
Ta-Cica Construction & Engineering $\mathbf{C}\mathbf{a}\mathbf{p}.$	İ	Vantex Industry Co., Ltd	Š	Financial assets at fair value through profit or loss-current	11,512,781	310,845	Let 2	Note 7 27.00
	Šisek	Chipwell Tech. Corp.	Nome	Available-for sale financial assets-non-current	349,990	2,062	Note 1	5.89
	Stock	Naumai Technology Co., Ltd.	None	Available-for sale financial assets-non-current	1.344,624	17,817	5.52	13.25
Prince Housing Investment Co., Ltd.	Siock	Tou ksu Investments Inc.	None	Available-for sale financial assets-non-current	60O	R	15.00	l asu
Prince Apartment Management Maintain Co. Ltd.	Siack	Prince Housing & Development Corp.	Parent Company	Available-for sale financial assets-non-current	655,424	8,324	Note 1	9.93
	Stock	Tainan Spinning Co., Ltd.	Non:	Available-for sale financial assets-non-current	120,992	2,250	Jote:	$\frac{8}{13.90}$
Dong-Feng Enterprises Co., Ltd.	Stock	Nantex Industry Co., Ltd.	None	Available-for sale financial assets-non-current	163,736	2,636	Note 1	27.00
	Stock	Sung Gang Asset Management Co., Ltd.	Nane	Available-for sale financial assets-non-current	47.96%	825	Note:	21,40
Prince Security Co., Ltd.	Šieck	Vanmat Technology Co., Ltd	Space	Available-for sale financial assets-non-current	179.283	SOS	$\frac{1}{2}$	13.25

Note 1: Percentege of Coaspany's covinestip is kess than 5%.
Note 2: We have not received the frameral statements from meangement. Thus the net ratue cannot be nuesared.
Note 3: 4,088,451 shares of outstanding common stock

Table 3

quisition of real estate reaching \$300 million or 20% of paid-in capital or more line months ended September 30, 2015 Trince Housing & Development Corp
----------------------------------------------------------------------------------------------------------------------------------------------------------------	--

Expressed in thousands of NTD
(Except as otherwise indicated)

If the counterparty is a related party, information as to last transaction of the real estate is $\frac{1}{2}$

commitments Other	None	None	Nome	None
used in setting the Reason for acquisition of real estate	For operating use	For operating use	For operating use	For operating use
Basis or reference price	Market value	Note 3	Market value	5,810 Valuated by Euro- Evaluation Group. Asia Property

Date of the original transaction Amount				February 1975 to October 1977
estate to the original owner and Relationship				Third party
Relationship who sold the real between the Counterparty counterparty counterparty acquirer Original owner				Third party
with the		Third party	Third party	Related party
	\$ 664.098 \$ 664.098 New Taipei City Third party Government	1,107,567 Redevelopment zone of Xia Hai Kaohsiung City Term, Renwu District,	1,061,724 Taiwan Sugar Corporation.	829,021 $\lim_{h \to 0} Y_i + X_i \lim_{h \to 0}$ plywood Co.,
amount Transaction
Status of		Note 3	1,061,724	829,021
	2015/03/03 (Note 1)	2013/06/14 (Note 2)	2010/12/20 (Note 2)	2015/08/07 (Note 2)
	Chang Section No. 222	Hai Lot No. 978, eg C	Section No. 12-12, No. 12-13	Section No. 52 etc.
Real estate acquired by Real estate acquired Date of the event payment	Prince Housing & Development Corp. Bail Dist. Chung	Prince Housing & Development Corp. Ren Wu Dist. Xia	Prince Housing & Development Corp. Xitun Dist. Kao An	Prince Housing & Development Corp. New Hougang West

Note 1: The transfer of tide took place on sufferrent date.
Note 2: The signing date of the control of the offered and indeed to the redevelopment zone, the transation amount was the expected price includes compensation fo

Table 4 P.1

dousing	chases or sales of goods from or to related parties reaching \$100 million or 20% of paid-in capital or more.	015 September 3 g the months en-
---------	---------------------------------------------------------------------------------------------------------------	-------------------------------------------	--

Expressed in thousands of NTD
(Except as otherwise indicated)

					Transaction			Differences in transaction terms compared to third party transactions		Notes/accounts receivable (payable)
		Relationship with the Purchases			Percentage of total					Percentage of total notes/accounts
Purchaser/Seller	Counterparty	counterparty	(Sales)	Amount	purchases (sales)	Credit term	Unit price	Credit term	Balance	receivable (payable) Footnote
Development Corp. Prince Housing &	Cheng-Shi Construction Co. Ltd.	Subsidiary	Purchases	20,623	Š	Progress payments were made in accordance with the contract terms.	compared to the It is reasonable normal trading terms.	It is reasonable compared (\$ to the normal trading terms.	21,381	(1%)
Development Corp. Prince Housing &	Prince Utility Co., Ltd.	Subsidiary	Purchases	219,904	4%	Progress payments were made in accordance with the contract terms.	compared to the It is reasonable normal trading terms.	to the normal trading terms. It is reasonable compared	58,205)	$\widehat{S}$
Development Corp. Prince Housing &	Jin-Yi-Xing plywood Co., Ę	Subsidiary	Purchases	829,021	16%	Progress payments were made in accordance with the contract terms.	compared to the It is reasonable normal trading terms.	to the normal trading terms. It is reasonable compared	2,768)	(0%)
Ta-Chen Construction & Engineering Corp.	Tainan Spinning Co., Ltd.	Affiliated company	(Sales)	67.596)	(7%)	Progress payments were made in accordance with the contract terms.	compared to the It is reasonable normal trading terms.	to the normal trading terms. It is reasonable compared	421,558	30%

Table 5

						Overdue receivables
			Relationship with the Balance as at September				subsequent to the Amount collected	Allowance for
Creditor	Counterparty	counterparty	30, 2015	Turnover rate	Amount	Amount action taken balance sheet date doubtful accounts
Prince Housing & Development Corp. The Splender Hotel Taichung		Subsidiary	Other assets
Ta-Chen Construction & Engineering Tainan Spinning Co., Ltd. Corp.		Affiliated company	-obligation receivable Accounts receivable 575,000 421,558	040			2715

Prince Housing & Development Corp.
Receivables from related parties reaching \$100 million or 20% of paid-in capital or more
Nine mouths ended September 30, 2015

Table 6

$\frac{1}{2}$

Significant inter-company transactions during the reporting periods Nine months ended September 30, 2015 Prince Housing & Development Corp.

Expressed in thousands of NTD (Except as otherwise indicated)

Transaction

operating revenues or consolidated total Percentage of	total assets 2.74%	6,48% 10.32% 1.21%		3.26%		1.08%	3.40%	1.20%	3.92%
Transaction terms	219,904 Negotiated terms	Negotiated terms Negotiated terms		endorsement and guarantee In accordance with	procedures	575,000 Creditor's rights purchase contract	endorsement and guarantee 1,810,889 In accordance with procedures	endorsement and guarantee In accordance with procedures	endorsement and guarantee In accordance with procedures
Amount		520,623 829,021	641,900	1.734.883				638,763	2,086,198
General ledger account	Purchases	Purchases Purchases	Construct in progress	Endorsement and guarantee		- obligation receivables Other assets	Endorsement and guarantee	Endorsement and guarantee	Endorsement and guarantee
Relationship	he Company to the consolidated subsidiaries	The Company to the consolidated subsidiaries The Company to the consolidated subsidiaries	The Company to the consolidated subsidiaries	The Company to the consolidated subsidiaries		The Company to the consolidated subsidiaries	The consolidated subsidiaries to the Company	The consolidated subsidiaries to the Company	The consolidated subsidiaries to the Company
Counterparty	Prince Utility Co., Ltd.	Chang-Shi Construction Co., Ltd. fin Yi Xing Plywood Co., Ltd.	Cheng-Shi Construction Co., Ltd.	The Splender Hotel Taichung		The Splender Hotel Taichung	Prince Housing & Development Corp.	Prince Housing & Development Corp.	Prince Housing & Development Corp.
Company name	Prince Housing & Development Corp.	Prince Housing & Development Corp. Prince Housing & Development Corp.	Prince Housing & Development Corp.	Prince Housing & Development Corp.	Prince Housing & Development Corp.		Dong-Feng Enterprises Co., Ltd.	Prince Utility Co., Ltd.	Jin Yi Xing Plywood Co., Ltd.
Number

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows: (1) Parent company is '0'

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

Note 2: Relationship between transaction company is classified into the following three categories; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between
su

(1) Parent company to subsidiary.
(2) Subsidiary to parent company.

(3) Subsidiary to subsidiary.

Note 3: Regating percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts

Expressed in thousands of NTD
(Except as otherwise indicated)

				Initial investment amount			Shares held as at September 30, 2015
									Net profit (loss)
									of the investee for the	Investment income (loss)
									nine months ended September	recognised by the Company for the nine months
Investor	Investee	Location	Main business activities	Balance as at September 30 2015	Balance as at January 1, 2015	Number of shars	Ownership (%)	Book value	30, 2015	ended September 30, 2015	Footnote
Prince Housing & Development Corp.	Cheng-Shi Investment Holdings Co., Lid.	Taiwan	General investment	946,925 u	1,381,950 u	77,504,758	100%	837,844 ĻĄ,	330,725 V)	373,089 v,	Note 1, 2 and 10
	Prince Property Management Consulting Co., Ltd.	Taiwan	Management and consulting	181,000	181,000	17,146,580	100%	274,464	16,137	17,367	Note 1 and 2
	Geng-Ding Co., Ltd	Taiwan	Hotels and catering	120,000	120,000	18,000,000	30%	331 687	112,426	33,728	Note 4
	Prince Housing Investment Co., Ĕ	Islands	British Virgin Overseas investment	140,413	140,413	428	100%	395,523	37,478	37,478	Note 2
	BioSun Technology Co., Ltd.	Taiwan	Anti-mildews import and export	1,000	1,000	100,000	100%	1,005			Note 2
	Prince Ta-Chen Investment Co., É	Taiwan	General investment		198,940	ı	Š	t	7,606	$5 - 6$	Note 6
	Dong-Feng Enterprises Co., Ltd.	Taiwan	Housebuilders and sales	876,431	876,431	17,300,000	100%	32,805)	127,614	127,614	Note 2
	Uni-President Development Corp	Taiwan	Leasing of buildings	,080,000	,080,000	08,000,000	30%	344,783	153,786	47,392	Note 5
	The Splender Hotel Taichung	Taiwan	Hotels and catering	975,000	975,000	97,500,000	50%	332,375	25 468)	12,734	Note 2
	Time Square International Co.,	Taiwan	Totels and catering	600,000	600,000	73,830,000	100%	412,760	148.492	148,492	Note 2
	Jin Yi Xing Plywood Co., Ltd.	Taiwan	Manufacture of plywoods	165,410	636,194	3,938,168	99.65%	782.187)	778.184	11,741	Note 2 and 8
	investments Ltd. Early Success	British Virgin Islands	Overseas investment		33.018		Š		96	$\frac{6}{2}$	Note 2 and 7
	Ming-Da Enterprise Co., Ltd.	Tawan	Real estate trading	127,400	127,400	7,024,618	20%	166,623	183,324	15,491
	Prince Industrial Co., Ltd.	Taiwan	Development of public	10,000	10,000	1,000,000	100%	9,580	$\frac{1}{2}$		Note 2 35)
	Prince Real Estate Co., Ltd.	Taiwan	Real estate trading and anibing and building easing	470,784		11,208,632	99,65%	1,496,435	ı		Note 2 and 11
Cheng-Shi Investment Holdings Co., Ta-Chen Construction & 马		Taiwan	Construction	756,566	1191591	80497,528	100%	703.054	300,500		Note 2, 3 and 9
	Prince Utility Co., Ltd. Engineering Corp.	Taiwan	Electricity water pipe	56,025	56,025	3,070,000	100%	98,061	11,190		Note 2 and 3
	Cheng-Shi Construction Co.	Tarwan	Construction	108,027	108,027	10,100,000	100%	166,229	19,118		Note 2 and 3
Ta-Chen Construction & Engineering Ta-Chen International (Brunei) Co., Ltd		Brunei	Overseas investment	9,316	5,316	318,000	l00%	4,503	$\tilde{E}$		Note 2, 3 and 7
Prince Housing Investment Co., Ltd. PPG Investment Inc.	Čori.	0.5A	Orenseas investment	56,945	56,945	273	27.27%	14,531	18,219)		Note 3
	Queen Holdings Ltd	British Virgin Islands	Overseas investment	122,034	122,034	2,730	27,27%	359,659	32,166		Note ¹

				Initial investment amount			Shares held as at September 30, 2015
									Net profit (loss)
										of the investee for the Investment income (loss)
										nine months ended recognised by the Company
									September	for the nine months
Investor	Investee			Location Main business activities Balance as at September 30, 2015 Balance as at Jamary 1, 2015 Number of states Coveresting (%) Book value					30, 2015	ended September 30, 2015	Footnate
Prince Ta-Chen Investment Co., Ltd. Prince Capital, Inc.		Islands	British Virgin Overseas investment		26,727		100%				Note 6 and 7
Prince Property Management Consulting Co., Ltd.	Prince Apartment Management Maintain Co., Ltd.		Taiwan Management of apartments	67,853	6,853	3,000,000	100%	74,899	2,446		Note 2 and 3
	Prince Security Co., Ltd.	Taiwan Security		159,611	159,611	13,172,636	100%	202,986	13,333		Note 2 and 3
Dong-Feng Enterprises Co., Ltd.	Amida Trustlink Assets Management Co., Ltd.	Taiwan	Development of public housing and building	332,231	362,288	24,318,992	45.21%	110,194)	1,064		Note 3
Prince Capital, Inc.	Prince Ventures USA Inc.	Islands	British Virgin Overseas investment		20,511		100%				Note 6 and 7
Ta-Chen International (Burnei) Corp. Ta Chen Construction	(Vietnam) Corp. & Engineering		Vietnam Construction	9,440	9.440		100%	1,397	24)		Note 2, 3 and 7

Note 1: The difference between the income (loss) of the investment income (loss) of the investment income invested by the conginist of the invested by the Congany in proportion to the state ownerestlip and unrealized guin

Note 3: The amount has been included in the post (loss) of the Company's investe a randical sumple equiv) mathed and has been recognised as gain (loss) on investment.
Note 4: Provided 12 million alsaw as a collateral
Note

AI assistant

PHD — Interim / Quarterly Report 2015

52134_rns_2015-12-23_4a68b16a-ea92-4c16-af73-173f1b867f0e.pdf

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND REVIEW REPORT OF INDEPENDENT ACCOUNTANTS SEPTEMBER 30, 2015 AND 2014

REVIEW REPORT OF INDEPENDENT ACCOUNTANTS

PRINCE HOUSING & DEVELOPMENT CORP.CONSOLIDATED BALANCE SHEETS(Expressed in thousands of New Taiwan dollars)(The consolidated balance sheets as of September 30, 2015 and 2014 are reviewed, not audited)

PRINCE HOUSING & DEVELOPMENT CORP.CONSOLIDATED BALANCE SHEETS(Expressed in thousands of New Taiwan dollars)(The consolidated balance sheets as of September 30, 2015 and 2014 are reviewed, not audited)

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

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in thousands of New Taiwan dollars) (UNAUDITED)

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in thousands of New Taiwan dollars) (UNAUDITED)

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2015 AND 2014

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

1. HISTORY AND ORGANIZATION

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(2) Basis of preparation

(3) Basis of consolidation

(4) Employee benefits

$(5)$ Income tax

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

6. DETAILS OF SIGNIFICANT ACCOUNTS

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

(3) Notes receivable, net

(6) Inventories

(c)Buildings and land held for sale

(d)Prepayment for land

(10) Investments accounted for under equity method

Associates

Statements of comprehensive income

(11) Property, plant and equipment

(12) Investment property

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

(13) Intangible assets

(15) Short-term bills payable

(18) Long-term borrowings

(19) Provisions-replacement cost

(20) Pension

(22) Share capital

(23) Capital surplus

(24) Retained earnings

$(25)$ Other equity items

(26) Maturity analysis of assets and liabilities

(27) Operating revenue

(28) Other income

(29) Other gains and losses

(31) Expenses by nature

(32) Income tax

A. Income tax expense

(33) Earnings per share

(34) Operating leases

(35) Non-cash transactions

(2) Key management compensation

8. PLEDGED ASSETS

COMMITMENTS

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

Foreign exchange risk

13. SUPPLEMENTARY DISCLOSURES

14. SEGMENT INFORMATION

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

Prince Housing & Development Corp.

Provision of endoursements and guarantees to others

Nine months ended September 30, 2015

Expressed in thousands of NTD (Except as otherwise indicated)

Prince Housing & Development Corp.Receivables from related parties reaching \$100 million or 20% of paid-in capital or moreNine mouths ended September 30, 2015

Significant inter-company transactions during the reporting periods Nine months ended September 30, 2015 Prince Housing & Development Corp.

More from PHD

PHD Interim / Quarterly Report 2015

PRINCE HOUSING & DEVELOPMENT CORP.
CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of New Taiwan dollars)
(The consolidated balance sheets as of September 30, 2015 and 2014 are reviewed, not audited)

PRINCE HOUSING & DEVELOPMENT CORP.
CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of New Taiwan dollars)
(The consolidated balance sheets as of September 30, 2015 and 2014 are reviewed, not audited)

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

Prince Housing & Development Corp.
Receivables from related parties reaching \$100 million or 20% of paid-in capital or more
Nine mouths ended September 30, 2015