delta electronics, inc. and subsidiaries · delta electronics, inc. and subsidiaries consolidated...

DELTA ELECTRONICS, INC. AND

SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

REPORT OF INDEPENDENT ACCOUNTANTS

JUNE 30, 2015 AND 2014

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

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REVIEW REPORT OF INDEPENDENT ACCOUNTANTS TRANSLATED FROM CHINESE

To Delta Electronics, Inc.

We have reviewed the accompanying consolidated balance sheets of Delta Electronics, Inc. and

subsidiaries as of June 30, 2015 and 2014, and the related consolidated statements of comprehensive

income for the three-month and the six-month periods then ended, of changes in equity and of cash

flows for the six-month periods then ended. These financial statements are the responsibility of the

Company’s management. Our responsibility is to express a conclusion on these financial statements

based on our reviews. We did not review the financial statements of certain investments accounted for

under the equity method. These long-term investments amounted to $6,221,419 thousand and

$5,882,200 thousand, constituting 2.77% and 3.00% of the consolidated total assets as of June 30,

2015 and 2014, respectively, and the share of profit and other comprehensive income of associates and

joint ventures accounted for under equity method was $308,495 thousand and $270,304 thousand,

constituting 13.51% and 6.14% of the consolidated total comprehensive income for the three-month

periods ended June 30, 2015 and 2014, respectively, and $560,039 thousand and $566,744 thousand,

constituting 10.62% and 6.09% of the consolidated total comprehensive income for the six-month

periods ended June 30, 2015 and 2014, respectively. Those financial statements were reviewed by

other independent accountants whose reports thereon have been furnished to us, and our conclusion

expressed herein, is based solely on the review reports of the other independent accountants.

Except as explained in the following paragraph, our reviews were made in accordance with the

Generally Accepted Auditing Standards No. 36, “Review of Financial Statements” in the Republic of

China. A review consists principally 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 financial statements taken as a whole. Accordingly, we do not express such an

opinion.

As explained in Notes 4(3)B and 6(9), we did not review the financial statements of certain

insignificant consolidated subsidiaries and investments accounted for under equity method, which

statements reflect total assets (including investments accounted for under equity method) of

$15,047,795 thousand and $17,630,872 thousand, constituting 6.71% and 8.99% of the consolidated

total assets, and total liabilities of $3,859,145 thousand and $2,734,698 thousand, constituting 3.13%

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and 2.91% of the consolidated total liabilities as of June 30, 2015 and 2014, respectively, and total

comprehensive income (including share of profit and other comprehensive income of associates and

joint ventures accounted for under equity method) of $165,157 thousand and $47,795 thousand,

constituting 7.23% and 1.09% of the consolidated total comprehensive income for the three-month

periods ended June 30, 2015 and 2014, respectively, and $82,688 thousand and $457,007 thousand,

constituting 1.57% and 4.91% of the consolidated total comprehensive income for the six-month

periods ended June 30, 2015 and 2014, respectively. These amounts and the information disclosed in

Note 13 were based solely on the unreviewed financial statements of these companies as of June 30,

2015 and 2014.

Based on our reviews and the review reports of other independent accountants, except for the effect of

such adjustments, if any, as might have been determined to be necessary had the financial statements

of certain consolidated 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 above

for them to be in conformity with the “Rules Governing the Preparation of Financial Statements by

Securities Issuers” and IAS 34, “Interim Financial Reporting” as endorsed by the Financial

Supervisory Commission (FSC).

As explained in Note 3(1), commencing 2015, Delta Electronics, Inc. and subsidiaries have adopted

the 2013 version of IFRS and the effect of adoption on the financial statements for prior periods was

adjusted.

PricewaterhouseCoopers, Taiwan

July 28, 2015-------------------------------------------------------------------------------------------------------------------------------------------------The accompanying consolidated financial statements are not intended to present the financial position and results ofoperations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions otherthan the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of suchfinancial statements may differ from those generally accepted in countries and jurisdictions other than the Republic ofChina. Accordingly, the accompanying consolidated financial statements and report of independent accountants are notintended for use by those who are not informed about the accounting principles or auditing standards generally accepted inthe Republic of China, and their applications in practice.As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liabilityfor the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from thetranslation.

DELTA ELECTRONICS, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS

JUNE 30, 2015, DECEMBER 31, 2014, JUNE 30, 2014 AND JANUARY 1, 2014(EXPRESSED IN THOUSANDS OF DOLLARS)

(THE JUNE 30, 2015 AND 2014 AMOUNTS ARE UNAUDITED)

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US Dollars New Taiwan Dollars

Assets Notes June 30, 2015 June 30, 2015

(adjusted)

December 31, 2014

(adjusted)

June 30, 2014

(adjusted)

January 1, 2014

Current assets

Cash and cash equivalents 6(1) $ 1,952,653 $ 60,258,877 $ 73,459,818 $ 60,504,492 $ 59,023,870

Financial assets at fair value through profit or loss - current 6(2) 1,752 54,071 39,626 104,811 82,749

Available-for-sale financial assets - current 6(3) 17,990 555,157 688,324 732,997 686,511

Derivative financial assets for hedging - current 6(5) - - - - 13,340

Notes receivable, net 69,594 2,147,669 1,971,006 1,787,780 1,535,567

Accounts receivable, net 6(6) 1,385,040 42,742,337 42,956,211 39,637,351 41,121,837

Accounts receivable - related parties 7 53,296 1,644,704 1,260,102 1,177,518 1,083,328

Other receivables 14,768 455,744 465,368 514,180 407,045

Other receivables - related parties 7 689 21,257 43,507 27,672 157,570

Current income tax assets 29,314 904,616 400,804 - 5,957

Inventories 6(8) 724,992 22,373,268 21,571,975 18,716,271 18,041,829

Prepayments 187,530 5,787,180 4,678,972 4,004,794 4,183,426

Non-current assets held for sale - net - - - 34,548 -

Other current assets 8 15,310 472,492 296,443 210,676 160,072

Total current assets 4,452,928 137,417,372 147,832,156 127,453,090 126,503,101

Non-current assets

Financial assets at fair value through profit or loss - non-current 6(2) 7,425 229,140 115,924 163,735 109,810

Available-for-sale financial assets - non-current 6(3) 200,103 6,175,190 6,967,099 6,857,648 7,677,790

Financial assets carried at cost - non-current 6(4) 24,191 746,522 748,761 400,786 400,605

Investments accounted for under equity method 6(9) 219,546 6,775,198 7,016,737 6,474,103 6,607,134

Property, plant and equipment 6(10) 1,220,571 37,666,822 36,814,759 35,623,106 37,194,762

Investment property, net 6(11) 69,649 2,149,356 2,223,848 2,189,034 1,960,453

Intangible assets 6(12) 812,742 25,081,213 11,706,015 10,500,889 10,857,876

Deferred income tax assets 173,423 5,351,831 4,348,083 3,748,441 3,344,842

Other non-current assets 6(13) 87,668 2,705,423 2,659,428 2,751,645 2,639,953

Total non-current assets 2,815,318 86,880,695 72,600,654 68,709,387 70,793,225

Total assets $ 7,268,246 $ 224,298,067 $ 220,432,810 $ 196,162,477 $ 197,296,326

(Continued)

DELTA ELECTRONICS, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS (CONTINUED)

JUNE 30, 2015, DECEMBER 31, 2014, JUNE 30, 2014 AND JANUARY 1, 2014(EXPRESSED IN THOUSANDS OF DOLLARS)

(THE JUNE 30, 2015 AND 2014 AMOUNTS ARE UNAUDITED)

The accompanying notes are an integral part of these consolidated financial statements.See review report of independent accountants dated July 28, 2015.

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Liabilities and Equity Notes June 30, 2015 June 30, 2015(adjusted)

December 31, 2014(adjusted)

June 30, 2014(adjusted)

January 1, 2014Current liabilities

Short-term borrowings 6(14) $ 394,437 $ 12,172,321 $ 5,801,298 $ 5,778,802 $ 4,561,722Financial liabilities at fair value through profit or loss -current

6(15)452 13,948 51,606 3,652 16,883

Derivative financial liabilities for hedging - current 6(5) - - - 12,931 2,644Notes payable - - - - 808Accounts payable 1,024,341 31,611,166 33,504,170 30,550,291 32,628,527Accounts payable - related parties 7 10,832 334,283 244,813 269,145 187,088Other payables 1,219,886 37,645,682 19,221,347 33,577,779 17,533,426Current income tax liabilities 41,764 1,288,842 1,698,484 1,492,694 1,390,013Other current liabilities 6(16) 149,258 4,606,099 4,102,644 3,473,099 3,046,701

Total current liabilities 2,840,970 87,672,341 64,624,362 75,158,663 59,367,812Non-current liabilities

Long-term borrowings 6(16) 674,607 20,818,373 26,468,103 6,569,160 18,827,664Deferred income tax liabilities 326,115 10,063,916 9,875,658 8,309,982 7,464,180Other non-current liabilities 6(17) 149,623 4,617,356 3,796,330 3,821,692 3,841,725

Total non-current liabilities 1,150,345 35,499,645 40,140,091 18,700,834 30,133,569Total liabilities 3,991,315 123,171,986 104,764,453 93,859,497 89,501,381

EquityShare capital

Share capital - common stock 6(19) 789,871 24,375,433 24,375,433 24,375,433 24,375,433Capital surplus

Capital surplus 6(20) 836,790 25,823,327 25,822,764 25,822,215 25,790,922Retained earnings 6(21)

Legal reserve 571,035 17,622,146 15,552,256 15,552,256 13,774,636Special reserve - - 527,556 527,556 4,074,505Unappropriated retained earnings 756,864 23,356,835 33,579,303 22,655,545 25,133,131

Other equity interestOther equity interest ( 172 ) ( 5,328) 3,064,085 ( 670,401) 419,768

Equity attributable to owners of the parent 2,954,388 91,172,413 102,921,397 88,262,604 93,568,395Non-controlling interest 6(22) 322,543 9,953,668 12,746,960 14,040,376 14,226,550

Total equity 3,276,931 101,126,081 115,668,357 102,302,980 107,794,945Significant contingent liabilities and unrecorded contractcommitments

9

Significant subsequent events 11Total liabilities and equity $ 7,268,246 $ 224,298,067 $ 220,432,810 $ 196,162,477 $ 197,296,326

DELTA ELECTRONICS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2015 AND 2014(EXPRESSED IN THOUSANDS OF DOLLARS, EXCEPT EARNINGS PER SHARE DATA)

(UNAUDITED)

(Continued)~5~


For the six-monthperiod endedJune 30, 2015

For the three-month periods endedJune 30,

For the six-month periods endedJune 30,

(adjusted) (adjusted)

Items Notes 2015 2014 2015 2014

Sales revenue 6(23) and 7 $ 2,979,108 $ 48,732,287 $ 47,616,288 $ 91,935,272 $ 90,651,884

Operating costs 6(24)(28)(29)and 7 ( 2,188,872) ( 35,577,842) ( 34,553,428) ( 67,548,589) ( 66,151,640)

Gross profit 790,236 13,154,445 13,062,860 24,386,683 24,500,244

Operating expenses 6(28)(29)

Selling expenses ( 178,475) ( 3,121,375) ( 2,403,565) ( 5,507,746) ( 4,482,135)

General and administrative expenses ( 110,826) ( 1,904,943) ( 1,644,354) ( 3,420,093) ( 3,132,390)

Research and development expenses ( 208,883) ( 3,384,779) ( 3,032,015) ( 6,446,134) ( 5,797,295)

Total operating expenses ( 498,184) ( 8,411,097) ( 7,079,934) ( 15,373,973) ( 13,411,820)

Operating profit 292,052 4,743,348 5,982,926 9,012,710 11,088,424

Non-operating income and expenses

Other income 6(25) 48,103 828,325 759,048 1,484,464 1,571,416

Other gains and losses 6(26) ( 10,463) ( 240,007) 2,137 ( 322,877) ( 191,151)

Finance costs 6(27) ( 6,078) ( 130,481) ( 30,281) ( 187,561) ( 61,989)

Share of profit of associates and joint ventures accounted for underequity method

6(9)19,533 305,201 262,772 602,787 482,834

Total non-operating income and expenses 51,095 763,038 993,676 1,576,813 1,801,110

Profit before income tax 343,147 5,506,386 6,976,602 10,589,523 12,889,534

Income tax expense 6(30) ( 68,631) ( 1,292,978) ( 1,218,378) ( 2,117,948) ( 2,205,505)

Profit for the period $ 274,516 $ 4,213,408 $ 5,758,224 $ 8,471,575 $ 10,684,029

DELTA ELECTRONICS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (CONTINUED)


(UNAUDITED)

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(adjusted) (adjusted)

Items Notes 2015 2014 2015 2014Other comprehensive (loss) incomeComponents of other comprehensive income that will not be reclassified to profitor loss

(Loss) gain on remeasurements of defined benefit plans ( $ 289) ($ 8,914) $ 32,537 ($ 8,914) $ 65,072

Income tax related to components of other comprehensive income that will not bereclassified to profit or loss - - ( 5,010) - ( 10,019)

Components of other comprehensive income that will not be reclassified toprofit or loss ( 289) ( 8,914) 27,527 ( 8,914) 55,053

Components of other comprehensive income that will be reclassified to profit or loss

Financial statements translation differences of foreign operations ( 89,554) ( 1,556,935) ( 1,636,950) ( 2,763,643) ( 1,043,500)Unrealized (loss) gain on valuation of available-for-sale financial assets ( 20,138) ( 524,887) 40,322 ( 621,459) ( 497,748)Hedging instrument gain (loss) on effective hedge of cash flow hedges - - 5,451 - ( 23,650)

Share of other comprehensive income of associates and joint ventures accounted for

under equity method ( 2,577) ( 28,222) ( 4,976) ( 79,526) 31,377

Income tax relating to the components of other comprehensive income 6(30) 8,973 188,821 210,814 276,912 102,723

Components of other comprehensive income that will be reclassified to profitor loss ( 103,296) ( 1,921,223) ( 1,385,339) ( 3,187,716) ( 1,430,798)

Other comprehensive loss for the period ( $ 103,585) ($ 1,930,137) ($ 1,357,812) ($ 3,196,630) ($ 1,375,745)

Total comprehensive income for the period $ 170,931 $ 2,283,271 $ 4,400,412 $ 5,274,945 $ 9,308,284

Profit attributable to:

Owners of the parent $ 248,228 $ 3,794,616 $ 5,265,494 $ 7,660,320 $ 9,835,782

Non-controlling interest $ 26,288 $ 418,792 $ 492,730 $ 811,255 $ 848,247

(Continued)

DELTA ELECTRONICS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (CONTINUED)


(UNAUDITED)


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(adjusted) (adjusted)Items Notes 2015 2014 2015 2014

Comprehensive income attributable to:

Owners of the parent $ 148,477 $ 1,932,281 $ 3,949,676 $ 4,581,993 $ 8,800,676

Non-controlling interest $ 22,454 $ 350,990 $ 450,736 $ 692,952 $ 507,608

Earnings per share (in dollars) 6(31)

Basic earnings per share $ 0.1017 $ 1.55 $ 2.16 $ 3.14 $ 4.04

Diluted earnings per share $ 0.1011 $ 1.54 $ 2.15 $ 3.12 $ 4.01

DELTA ELECTRONICS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2015 AND 2014(EXPRESSED IN THOUSANDS OF DOLLARS)

(UNAUDITED)

Equity attributable to owners of the parentRetained earnings Other equity interest

NotesShare capital -common stock Capital surplus Legal reserve

Specialreserve

Unappropriatedretainedearnings

Financialstatementstranslation

differences offoreign

operations

Unrealizedgain or loss onavailable-for-sale financial

assets

Hedginginstrument

gain (loss) oneffective

hedge of cashflow hedges Total

Non-controllinginterest Total equity

(Continued)~8~

2014 New Taiwan Dollars (adjusted)

Balance at January 1, 2014 $ 24,375,433 $ 25,790,922 $ 13,774,636 $ 4,074,505 $ 25,133,131 ($ 1,703,490 ) $ 2,104,380 $ 18,878 $ 93,568,395 $ 14,226,550 $ 107,794,945

Distribution of 2013 earnings 6(21)

Legal reserve - - 1,777,620 - ( 1,777,620 ) - - - - - -

Reversal of special reserve - - - ( 3,546,949 ) 3,546,949 - - - - - -

Cash dividends - - - - ( 14,137,751 ) - - - ( 14,137,751 ) - ( 14,137,751 )

Change in equity of associates and joint venturesaccounted for under equity method - 31,371 - - - - - - 31,371 - 31,371

Difference between consideration and carryingamount of subsidiaries acquired or disposed - 262 - - - - - - 262 - 262

Disposal of investments accounted for usingequity method - ( 340 ) - - - ( 9 ) - - ( 349 ) - ( 349 )

Changes in non-controlling interests - - - - - - - - - ( 693,782 ) ( 693,782 )

Other comprehensive income (loss) for theperiod - - - - 55,054 ( 571,950 ) ( 497,869 ) ( 20,341 ) ( 1,035,106 ) ( 340,639 ) ( 1,375,745 )

Profit for the period - - - - 9,835,782 - - - 9,835,782 848,247 10,684,029

Balance at June 30, 2014 $ 24,375,433 $ 25,822,215 $ 15,552,256 $ 527,556 $ 22,655,545 ($ 2,275,449 ) $ 1,606,511 ( $ 1,463 ) $ 88,262,604 $ 14,040,376 $ 102,302,980

2015 New Taiwan Dollars

Balance at January 1, 2015 (adjusted) $ 24,375,433 $ 25,822,764 $ 15,552,256 $ 527,556 $ 33,579,303 $ 2,415,377 $ 642,078 $ 6,630 $ 102,921,397 $ 12,746,960 $ 115,668,357


Legal reserve - - 2,069,890 - ( 2,069,890 ) - - - - - -

Reversal of special reserve - - - ( 527,556 ) 527,556 - - - - - -

Cash dividends - - - - ( 16,331,540 ) - - - ( 16,331,540 ) - ( 16,331,540 )

Change in equity of associates and joint venturesaccounted for under equity method - 563 - - - - - - 563 - 563

Changes in non-controlling interests - - - - - - - - - ( 3,486,244 ) ( 3,486,244 )

Other comprehensive loss for the period - - - - ( 8,914 ) ( 2,447,555 ) ( 621,416 ) ( 442 ) ( 3,078,327 ) ( 118,303 ) ( 3,196,630 )

Profit for the period - - - - 7,660,320 - - - 7,660,320 811,255 8,471,575

Balance at June 30, 2015 $ 24,375,433 $ 25,823,327 $ 17,622,146 $ - $ 23,356,835 ( $ 32,178 ) $ 20,662 $ 6,188 $ 91,172,413 $ 9,953,668 $ 101,126,081

DELTA ELECTRONICS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONTINUED)


(UNAUDITED)

Equity attributable to owners of the parentRetained earnings Other equity interest

NotesShare capital -common stock Capital surplus Legal reserve

Specialreserve

Unappropriatedretainedearnings

Financialstatementstranslation

differences offoreign

operations

Unrealizedgain or loss onavailable-for-sale financial

assets

Hedginginstrument

gain (loss) oneffective hedge

of cash flowhedges Total

Non-controllinginterest Total equity


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2015 US Dollars

Balance at January 1, 2015 (adjusted) $ 789,871 $ 836,772 $ 503,962 $ 17,095 $ 1,088,117 $ 78,269 $ 20,806 $ 215 $ 3,335,107 $ 413,059 $ 3,748,166


Legal reserve - - 67,073 - ( 67,073 ) - - - - - -

Reversal of special reserve - - - ( 17,095 ) 17,095 - - - - - -

Cash dividends - - - - ( 529,214 ) - - - ( 529,214 ) - ( 529,214 )

Change in equity of associates and joint venturesaccounted for under equity method

- 18 - - --

- - 18 - 18

Changes in non-controlling interests - - - - - - - - - ( 112,970 ) ( 112,970 )

Other comprehensive loss for the period - - - - ( 289 ) ( 79,312 ) ( 20,136 ) ( 14 ) ( 99,751 ) ( 3,834 ) ( 103,585 )

Profit for the period - - - - 248,228 - - - 248,228 26,288 274,516

Balance at June 30, 2015 $ 789,871 $ 836,790 $ 571,035 $ - $ 756,864 ( $ 1,043 ) $ 670 $ 201 $ 2,954,388 $ 322,543 $ 3,276,931

DELTA ELECTRONICS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS


(UNAUDITED)

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Notes 2015 2015 2104CASH FLOWS FROM OPERATING ACTIVITIES

Consolidated profit before tax for the period $ 343,147 $ 10,589,523 $ 12,889,534Adjustments to reconcile net income to net cashgenerated from operating activities

Income and expenses having no effect on cash flows

Depreciation 6(10)(11) 108,940 3,361,894 3,266,828Amortization 6(12) 19,515 602,226 493,687Provision for bad debts 6(6) 7,176 221,436 187,492Net gain on financial assets or liabilities at fair

value through profit or loss

6(26)

( 1,610 ) ( 49,683 ) ( 20,596 )Interest expense 6(27) 6,078 187,561 65,463Interest income 6(25) ( 10,973 ) ( 338,637 ) ( 509,694 )Share of profit of associates accounted for under

the equity method

6(9)

( 19,533 ) ( 602,787 ) ( 482,834 )(Gain) loss on disposal of property, plant and

equipment

6(26)

( 423 ) ( 13,056 ) 9,503Loss (gain) on disposal of investments 6(26) 7,809 240,990 ( 119,430 )Impairment loss on financial assets 6(3) 467 14,422 15,549

Changes in assets/liabilities relating to operatingactivitiesNet changes in assets relating to operating

activitiesFinancial assets at fair value through profit or

loss ( 289 ) ( 8,932 ) ( 94,930 )Notes receivable ( 5,725 ) ( 176,663 ) ( 252,213 )Accounts receivable 118,997 3,672,246 1,297,067Accounts receivable - related parties ( 12,463 ) ( 384,602 ) ( 94,211 )Other receivables 4,312 133,065 ( 106,944 )Other receivables - related parties 721 22,250 129,898Inventories 39,740 1,226,387 ( 674,442 )Prepayments ( 22,615 ) ( 697,891 ) 178,748Other current assets ( 216 ) ( 6,680 ) ( 53,222 )Other non-current assets 8,385 258,753 20,684

Net changes in liabilities relating to operatingactivitiesNotes payable - - ( 808 )Accounts payable ( 131,609 ) ( 4,061,454 ) ( 2,078,236 )Accounts payable - related parties 2,899 89,470 82,327Other payables 44,758 1,381,239 1,028,679Other current liabilities ( 9,274 ) ( 286,183 ) 448,108Other non-current liabilities ( 2,475 ) ( 76,389 ) ( 20,032 )

Cash generated from operations 495,739 15,298,505 15,605,975Interest received 10,973 338,637 509,694Dividends received 24,272 749,034 657,399Interest paid ( 5,846 ) ( 180,404 ) ( 75,752 )Income taxes paid ( 57,895 ) ( 1,786,646 ) ( 1,419,010 )

Net cash provided by operating activities 467,243 14,419,126 15,278,306

(Continued)

DELTA ELECTRONICS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2015 AND 2014

(EXPRESSED IN THOUSANDS OF DOLLARS)(UNAUDITED)


~11~


Notes 2015 2015 2014

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of financial assets at fair value throughprofit or loss, designated upon initial recognition ( $ 3,063 ) ( $ 94,512 ) ($ 28,844 )

Disposal of financial assets at fair value through profitor loss, designated upon initial recognition - - 32,213

Acquisition of available-for-sale financial assets ( 10,262 ) ( 316,675 ) ( 135,103 )

Proceeds from disposal of available-for-sale financialassets 11,448 353,281 536,964

Acquisition of financial assets at cost ( 41 ) ( 1,271 ) -

Proceeds from capital reduction of financial assetscarried at cost 17 540 -

Proceeds from disposal of investments accounted forunder the equity method - - 13,261

Net cash flow from acquisition of subsidiaries (net ofcash acquired) 6(32) ( 455,691 ) ( 14,062,629 ) ( 349 )

Acquisition of property, plant and equipment 6(10) ( 123,816 ) ( 3,820,965 ) ( 2,419,934 )

Proceeds from disposal of property, plant andequipment 3,528 108,862 49,223

Acquisition of intangible assets 6(12) ( 5,843 ) ( 180,303 ) ( 128,565 )

(Increase) decrease in other financial assets ( 5,321 ) ( 164,206 ) 4,175

Decrease in other non-current assets ( 2,412 ) ( 74,427 ) ( 133,736 )

Net cash used in investing activities( 591,456 ) ( 18,252,305 ) ( 2,210,695 )

CASH FLOWS FROM FINANCING ACTIVITIES

Increase in short-term borrowings 68,891 2,125,976 1,217,080

Proceeds from long-term debt 675,768 20,854,202 6,471,000

Repayment of long-term debt ( 854,921 ) ( 26,382,860 ) ( 18,751,044 )

Change in non-controlling interests ( 93,067 ) ( 2,872,049 ) ( 16,979 )

Net cash used in financing activities ( 203,329 ) ( 6,274,731 ) ( 11,079,943 )

Effects due to changes in exchange rate ( 100,227 ) ( 3,093,031 ) ( 507,046 )

(Decrease) increase in cash and cash equivalents ( 427,769 ) ( 13,200,941 ) 1,480,622

Cash and cash equivalents at beginning of period 2,380,422 73,459,818 59,023,870

Cash and cash equivalents at end of period $ 1,952,653 $ 60,258,877 $ 60,504,492

12

DELTA ELECTRONICS, INC. AND SUBSIDIARIESNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2015 AND 2014(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS,

EXCEPT AS OTHERWISE INDICATED)

1. HISTORY AND ORGANIZATION

Delta Electronics, Inc. (the Company) was incorporated as a company limited by shares under the

provisions of the Company Law of the Republic of China (R.O.C.). The Company and its subsidiaries

(collectively referred herein as the Group) are the global leader in power and thermal management

solutions and are primarily engaged in the research and development, design, manufacturing and sale

of electronic control systems, industrial automation products, digital display products, communication

products, consumer electronics products, energy-saving lighting application and energy technology

services, etc. The Group’s mission statement, to provide innovative, clean and energy-efficient

solutions for a better tomorrow, focuses on the role in addressing key environmental issues such as

global climate change. With the concern for the environment, the Group continues to develop

innovative energy-efficient products and solutions. In recent years, the Group has transformed from a

product provider towards a solution provider and the Group’s business is segregated into power

electronics business, energy management business, and smart green life business.

2. THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL

STATEMENTS AND PROCEDURES FOR AUTHORIZATION

These consolidated financial statements were authorised for issuance by the Board of Directors on July

28, 2015.

3. 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 IFRS”) in preparing the consolidated financial statements. The impact of

adopting the 2013 version of IFRS 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

13

actuarial gains and losses could be recognised based on corridor approach or recognised in profit

or loss. The revised standard requires that the actuarial gains and losses can only be recognised

immediately in other comprehensive income when incurred. Past service cost will be recognised

immediately in the period incurred and will no longer be amortised using straight-line basis over

the average period until the benefits become vested. An entity is required to recognise

termination benefits at the earlier of when the entity can no longer withdraw an offer of those

benefits and when it recognises any related restructuring costs, rather than when the entity is

demonstrably committed to a termination. Additional disclosures are required for defined benefit

plans. Based on the Group’s assessment, the impact of the standard is in the following table.

The Group recognised previously unrecognised past service cost and as a consequence of

elimination of the corridor approach recognised prior unrecognised actuarial losses by increasing

accrued pension liabilities by $25,830, increasing deferred tax assets by $56,653, increasing

deferred tax liabilities by $32,367 and decreasing retained earnings by $79,197, decreasing

non-controlling interests by $11,488 and decreasing long-term equity investments by $89,141 at

January 1, 2014, and by decreasing accrued pension liabilities by $111,338, increasing deferred

tax assets by $63,987, increasing deferred tax liabilities by $62,446, increasing retained earnings

by $36,485, decreasing non-controlling interests by $7,205 and decreasing long-term equity

investments by $83,599 at December 31, 2014; and by decreasing operating expenses by $420,

increasing gain on investments by $1,385, increasing income tax expense by $336, increasing

other comprehensive income by $27,527, decreasing accrued pension liabilities by $32,956,

increasing deferred tax liabilities by $5,346 and increasing long-term equity investments by

$1,385 for the three-month period ended June 30, 2014; and by decreasing operating expenses

by $840, increasing gain on investments by $2,771, increasing income tax expense by $672,

increasing other comprehensive income by $55,053, decreasing accrued pension liabilities by

$65,912, increasing deferred tax liabilities by $10,691 and increasing long-term equity

investments by $2,771 for the six-month period ended June 30, 2014.

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 will adjust 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 will disclose additional

information about its interests in consolidated entities and unconsolidated entities accordingly.

14

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 will disclose 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) Effect of IFRSs issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the 2013

version of IFRSs as endorsed by the FSC:

New Standards, Interpretations and Amendments

International

Accounting Standards

Board

IFRS 9, ‘Financial instruments' January 1, 2018

Sale or 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)

IFRS 14, 'Regulatory deferral accounts' January 1, 2016

IFRS 15, ‘Revenue from contracts with customers' January 1, 2017

Disclosure Initiative (Amendments to IAS 1) January 1, 2016

Clarification of acceptable methods of depreciation and amortisation

(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)

Novation of derivatives and continuation of hedge accounting

(amendments to IAS 39)

January 1, 2016

January 1, 2014

January 1, 2014

15

The Group is assessing the potential impact of the new standards, interpretations and amendments

above and has not yet been able to reliably estimate their impact on the consolidated financial

statements.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Except for the compliance statement, basis of preparation, basis of consolidation and increased sections

as below, the significant accounting policies are identical to those disclosed 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

“Rules Governing the Preparation of Financial Statements 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, the 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 recognised based on the net amount of pension fund assets less

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

New Standards, Interpretations and Amendments

International

Accounting Standards

Board

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

16

consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

A. Basis for preparation of consolidated financial statements:

(a) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries

are all entities (including structured entities) controlled by the Group. The Group controls an

entity when the Group is exposed, or has rights, to variable returns from its involvement with

the entity and has the ability to affect those returns through its power over the entity.

Consolidation of subsidiaries begins from the date the Group obtains control of the

subsidiaries and ceases when the Group loses control of the subsidiaries.

(b) Inter-company transactions, balances and unrealised gains or losses on transactions between

companies within the Group are eliminated. Accounting policies of subsidiaries have been

adjusted where necessary to ensure consistency with the policies adopted by the Group.

(c) Profit or loss and each component of other comprehensive income are attributed to the

owners of the parent and to the non-controlling interests. Total comprehensive income is

attributed to the owners of the parent and to the non-controlling interests even if this results

in the non-controlling interests having a deficit balance.

(d) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing

control of the subsidiary (transactions with non-controlling interests) are accounted for as

equity transactions, i.e. transactions with owners in their capacity as owners. Any difference

between the amount by which the non-controlling interests are adjusted and the fair value of

the consideration paid or received is recognised directly in equity.

(e) When the Group loses control of a subsidiary, the Group remeasures any investment retained

in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial

recognition of a financial asset or the cost on initial recognition of the associate or joint

venture. Any difference between fair value and carrying amount is recognised in profit or

loss. All amounts previously recognised in other comprehensive income in relation to the

subsidiary are reclassified to profit or loss, on the same basis as would be required if the

related assets or liabilities were disposed of. That is, when the Group loses control of a

subsidiary, all gains or losses previously recognised in other comprehensive income in

relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or

losses would be reclassified to profit or loss when the related assets or liabilities are disposed

of.

17

B. Subsidiaries included in the consolidated financial statements:

Name of Name of Main Business June 30, December 31, June 30,Investor Subsidiary Activities 2015 2014 2014 Description

Delta

Electronics, Inc.

Delta International

Holding Ltd. (DIH)

Equity investments 94.00 94.00 94.00

Delta

Electronics, Inc.

Delta Networks

Holding Ltd. (DNH)


Delta

Electronics, Inc.

Deltronics

(Netherlands) B.V.

(DEN)

Trading of equipment,

components and

materials of telecom

and computer

systems

100.00 100.00 100.00 Note J

Delta

Electronics, Inc.

PreOptix (Hong

Kong) Co., Ltd.

(PHK)

Equity investments 39.62 39.62 39.62 Note I

Note J

Delta

Electronics, Inc.

NeoEnergy

Microelectronics,

Inc. (NEM)

Designing and

experimenting on

integrated circuit and

information software

services

83.11 83.11 83.11 Note I

Delta

Electronics, Inc.

Cyntec Co., Ltd.

(Cyntec)

Research, development,

manufacturing and sales

of film optic-electronics

devices

100.00 100.00 100.00

Delta

Electronics, Inc.

DelBio Inc.

(DelBio)

Manufacturing,

wholesale and retail of

medical equipment

100.00 100.00 100.00 Note I

Delta

Electronics, Inc.

Delta Electronics

Capital Company

(Delta Capital)


Note J

Ownership (%)

18


Delta

Electronics, Inc.

Delta Electronics Int

’l (Singapore) Pte.

Ltd. (DEIL-SG)

Sales of electronic

products

100.00 100.00 100.00

Delta

Electronics, Inc.

Delta Smart Green

Life Co., Ltd.

(DSGL)

Research and

development, energy

technology, meeting,

exhibition, and leasing

services, etc.

- - 100.00 Note G

Note J

Delta

Electronics, Inc.

Allied Material

Technology Corp.

(AMT)

Manufacturing and sales

of color filter and lease

services, etc.

99.97 99.97 99.97 Note J

Delta

Electronics, Inc.

SYN-TEK

Automation Co.,

Ltd. (STA)

Research, designing,

development,


of industrial automation

equipment, etc.

70.00 70.00 70.00 Note I

Note J

Delta

Electronics, Inc.

Delta Green Life

Co., Ltd. (DGL)

(Formerly known as

Vivitek

Corporation)

Providing installment

construction of lighting

equipment

100.00 100.00 100.00 Note B

Note H

Note I

Delta

Electronics, Inc.

Vitor Technology

Inc.

Providing and

installation of

surveillance system

equipment

100.00 - - Note A

Note I

Delta

International

Holding Ltd.

(DIH)

Delta Electronics

(H.K.) Ltd. (DHK)

Equity investments,

operations management

and engineering services

100.00 100.00 100.00

Delta

International

Holding Ltd.

(DIH)

Delta Electronics

International Ltd.

(DEIL-Labuan)

Sales of electronic

products

100.00 100.00 100.00

Ownership (%)

19


Delta

International

Holding Ltd.

(DIH)

Delta Power Sharp

Ltd. (DPS)

Operations and

engineering services

100.00 100.00 100.00 Note I

Note J

Delta

International

Holding Ltd.

(DIH)

DEI Logistics

(USA) Corp. (ALI)

Warehousing and

logistics services

100.00 100.00 100.00 Note J

Delta

International

Holding Ltd.

(DIH)

Delta Electronics

(Japan), Inc. (DEJ)

Sales of power products,

display solution

products, electronic

components, industrial

automation products and

their materials

100.00 100.00 100.00 Note I

Note J

Delta

International

Holding Ltd.

(DIH)

DAC Holding

(Cayman) Ltd.

(DAC)


Note J

Delta

International

Holding Ltd.

(DIH)

Ace Pillar Holding

Co., Ltd. (Ace)

Equity investments 100.00 100.00 100.00 Note D

Delta

International

Holding Ltd.

(DIH)

PreOptix (Hong

Kong) Co., Ltd.

(PHK)


Note J

Delta

International

Holding Ltd.

(DIH)

Drake Overseas

Financial

Investment Ltd.

(Drake)

Equity investments - 100.00 100.00 Note L

Delta

International

Holding Ltd.

(DIH)

Drake Investment

(HK) Ltd.

(Drake-HK)

Equity investments 100.00 - - Note L

Delta

International

Holding Ltd.

(DIH)

Delta Greentech

(China) Co., Ltd.

(DGC)


of uninterruptible power

systems

10.38 10.38 10.38 Note D

Delta

International

Holding Ltd.

(DIH)

Vivitek Corporation

(Vivitek)

Sales of projector

products and their

materials

100.00 100.00 100.00 Note J

Ownership (%)

20


Delta

International

Holding Ltd.

(DIH)

Delta Greentech

SGP Pte. Ltd.

(DGSG)

Equity investments 100.00 100.00 54.83 Note D

Note E

Delta

International

Holding

Ltd.(DIH)

Delta Electronics

Europe Ltd. (DEU)

Repair centre and

providing of support

services

100.00 100.00 - Note B

Note I

Delta

International

Holding

Ltd.(DIH)

Boom Treasure Ltd.

(Boom)

Equity investments 100.00 100.00 - Note B

Note D

Delta

Electronics

(H.K.) Ltd.

(DHK)

Delta Electronics

(Dongguan) Co.,

Ltd. (DDG)


of transformer and power

supplies

100.00 100.00 100.00

Delta

Electronics

(H.K.) Ltd.

(DHK)

Delta Electronics

Power (Dongguan)

Co., Ltd. (DEP)


of transformer and power

supplies

100.00 100.00 100.00

Delta

Electronics

(H.K.) Ltd.

(DHK)

Delta Electronics

(Shanghai) Co., Ltd.

(DPEC)

Product design and

management consulting

service, etc.

100.00 100.00 100.00

Delta

Electronics

(H.K.) Ltd.

(DHK)

Delta Electronics

(Jiangsu) Ltd.

(DWJ)


of power supplies and

transformers

55.00 55.00 55.00

Delta

Electronics

(H.K.) Ltd.

(DHK)

Delta Electronics

Components

(Wujiang) Ltd.

(DWC)


of transformers

55.00 55.00 55.00

Delta

Electronics

(H.K.) Ltd.

(DHK)

Delta Electro-Optics

(Wujiang) Ltd.

(DWO)


of peripherals and

electronic control

equipment

55.00 55.00 55.00

Delta

Electronics

(H.K.) Ltd.

(DHK)

Delta Video Display

System (Wujiang)

Ltd. (DWV)


of various projectors

55.00 55.00 55.00

Ownership (%)

21


Delta

Electronics

(H.K.) Ltd.

(DHK)

Delta Electronics

(Wuhu) Co., Ltd.

(DWH)



transformers

100.00 100.00 100.00

Delta

Electronics

(H.K.) Ltd.

(DHK)

Delta Electronics

(Chenzhou) Co.,

Ltd. (DCZ)



transformers

100.00 100.00 100.00

Delta

Electronics

(H.K.) Ltd.

(DHK)

Delta Electronics

International

Mexico S.A. DE

C.V. (DEIL-MX)

Sales of power

management of industrial

automation product and

telecommunications

equipment

100.00 100.00 100.00 Note I

Note J

Delta

Electronics

(H.K.) Ltd.

(DHK)

Delta Electronics

(Wujiang) Trading

Co., Ltd. (DWT)

Installation, consulting

and trading of electronic

products

100.00 100.00 100.00 Note I

Note J

Delta

Electronics

(H.K.) Ltd.

(DHK)

Delta Green

(Tianjin) Industries

Co., Ltd. (DGT)


of transformers and

bluetooth module

100.00 100.00 100.00 Note I

Note J

Delta

Electronics

(H.K.) Ltd.

(DHK)

Delta Electronics

(Pingtan) Co., Ltd.

(Delta Pingtan)

Wholesale and retail of

electronic products and

energy-saving equipment

100.00 100.00 - Note B

Note I

PreOptix (Hong

Kong) Co., Ltd.

(PHK)

PreOptix (Jiang Su)

Co., Ltd. (PJS)


of lenses and optical

engines for projectors

100.00 100.00 100.00 Note I

Delta

Electronics

(Japan), Inc.

(DEJ)

Addtron

Technology (Japan),

Inc. (AT Japan)

Trading of networking

system and peripherals

100.00 100.00 100.00 Note I

Note J

Delta

Electronics

(Japan), Inc.

(DEJ)

Delta Electronics

(Korea), Inc. (Delta

Korea)

Sales of power products,

display solution products

electronic components,

industrial automation

products and their

materials

100.00 100.00 100.00 Note I

Note J

DAC Holding

(Cayman) Ltd.

(DAC)

Delta Electronics

Mexico S.A. DE

C.V. (DEM)


of electronic products

100.00 100.00 100.00 Note I

Note J

Ownership (%)

22


DAC Holding

(Cayman) Ltd.

(DAC)

Delta Video

Technology Ltd.

(DVT)

Sales of electronic

products

100.00 100.00 100.00 Note I

Note J

Drake Overseas

Financial

Investment Ltd.

(Drake)

Drake Investment

(HK) Ltd. (Drake-

HK)

Equity investments - 100.00 100.00 Note D

Note L

Ace Pillar

Holding Co.,

Ltd. (Ace)

Delta Greentech

(China) Co., Ltd.

(DGC)



systems

3.81 3.81 3.81 Note D

Drake

Investment

(HK) Ltd.

(Drake-HK)

Delta Greentech

(China) Co., Ltd.

(DGC)



systems

48.51 48.51 48.51 Note D

Delta Greentech

SGP Pte. Ltd.

(DGSG)

Delta Greentech

(China) Co., Ltd.

(DGC)



transformers

8.21 8.21 8.21 Note D

Boom Treasure

Ltd. (Boom)

Delta Greentech

(China) Co., Ltd.

(DGC)



transformers

25.00 25.00 - Note D

Note F

Delta

Electronics

(Wuhu) Co.,

Ltd. (DWH)

Wuhu Delta

Technology Co.,

Ltd. (WDT)



transformers

100.00 100.00 100.00

Delta

Electronics

(Wuhu) Co.,

Ltd. (DWH)

Delta Energy

Technology (Wuhu)

Co., Ltd. (DET-

WH)

Research and

development of energy-

saving technology,

energy-saving

equipment, energy

management system and

technology consulting

service, etc.

30.00 30.00 30.00 Note I

Note J

Delta

Electronics

(Chenzhou) Co.,

Ltd. (DCZ)

Chenzhou Delta

Technology Co.,

Ltd. (CDT)



transformers

100.00 100.00 100.00

Ownership (%)

23


Delta

Electronics

(Chenzhou) Co.,

Ltd. (DCZ)

Delta Energy

Technology

(Chenzhou) Co.,

Ltd. (DET-CZ)

Research and


saving technology,

energy-saving

equipment, energy



service, etc.

30.00 30.00 30.00 Note I

Note J

Delta

Electronics

(Dongguan)

Co., Ltd. (DDG)

Delta Energy

Technology

(Dongguan) Co.,

Ltd., (DET-DG)

Research and


saving technology,

energy-saving

equipment, energy



service, etc.

30.00 30.00 30.00 Note I

Note J

Delta Electro-

Optics

(Wujiang) Ltd.

(DWO)

Delta Energy

Technology

(Wujiang) Co., Ltd.

(DET-WJ)

Research and


saving technology,

energy-saving

equipment, energy



service, etc.

30.00 30.00 30.00 Note I

Note J

Delta

Electronics

(Shanghai) Co.,

Ltd. (DPEC)

Delta Energy

Technology (Wuhu)

Co., Ltd. (DET-

WH)

Research and


saving technology,

energy-saving

equipment, energy



service, etc.

70.00 70.00 70.00 Note I

Note J

Delta

Electronics

(Shanghai) Co.,

Ltd. (DPEC)

Delta Energy

Technology

(Chenzhou) Co.,

Ltd. (DET-CZ)

Research and


saving technology,

energy-saving

equipment, energy



service, etc.

70.00 70.00 70.00 Note I

Note J

Delta

Electronics

(Shanghai) Co.,

Ltd. (DPEC)

Delta Energy

Technology

(Dongguan) Co.,

Ltd. (DET-DG)

Research and


saving technology,

energy-saving

equipment, energy



service, etc.

70.00 70.00 70.00 Note I

Note J

Ownership (%)

24


Delta

Electronics

(Shanghai) Co.,

Ltd. (DPEC)

Delta Energy

Technology

(Wujiang) Co., Ltd.

(DET-WJ)

Research and


saving technology,

energy-saving

equipment, energy



service, etc.

70.00 70.00 70.00 Note I

Note J

Delta

Electronics

(Shanghai) Co.,

Ltd. (DPEC)

Delta Energy

Technology


(DET-SH)

Research and


saving technology,

energy-saving

equipment, energy



service, etc.

10.00 10.00 10.00

Delta Greentech

(China) Co.,

Ltd. (DGC)

Delta Energy

Technology


(DET-SH)

Research and


saving technology,

energy-saving

equipment, energy



service, etc.

90.00 90.00 90.00

Delta Networks

Holding Ltd.

(DNH)

Delta Networks,

Inc. (DNI Cayman)


Delta Networks,

Inc. (DNI

Cayman)

Delta Networks,

Inc. (Taiwan)

(DNIT)


of networking system

and peripherals

99.98 99.98 99.98

Delta Networks,

Inc. (DNI

Cayman)

DNI Logistics

(USA) Corp. (ALN)



100.00 100.00 100.00 Note I

Note J

Delta Networks,

Inc. (DNI

Cayman)

Delta Networks

International Ltd.

(DNIL-Labuan)



100.00 100.00 100.00

Delta Networks,

Inc. (DNI

Cayman)

Delta Networks

(H.K.) Ltd.

(DNHK)


Ownership (%)

25


Delta Networks

(H.K.) Ltd.

(DNHK)

Delta Networks

(Dongguan) Ltd.

(DII)


of other radio

transmission apparatus,

incorporating reception

apparatus and other

radio-broadcast

receivers, combined with

sound recording or

reproducing apparatus

100.00 100.00 100.00

Delta Networks

(H.K.) Ltd.

(DNHK)

Delta Networks

(Shanghai) Ltd.

(DNS)

Design of computer

software

100.00 100.00 100.00

Delta Networks

(H.K.) Ltd.

(DNHK)

Delta Networks

(Xiamen) Ltd.

(DNX)

Operation of radio

transmission apparatus,

and automatic data

processing, reception,

conversion and

transmission or

regeneration of voice,

images or other data of

the machine, including

switches and routers,

with a special program to

control a computer or

word processor with

memory business

100.00 100.00 100.00

Delta Networks,

Inc. (Taiwan)

(DNIT)

Ayecom

Technology Co.,

Ltd. (Ayecom)


of wire and wireless

telecommunications

equipment, electronic

parts and controlled

telecommunications

radio frequency devices

- 100.00 100.00 Note J

Note K

Cyntec Co., Ltd.

(Cyntec)

Fairview Assets Ltd.

(Fairview)


Fairview Assets

Ltd. (Fairview)

Grandview Holding

Ltd. (Grandview)


Grandview

Holding Ltd.

(Grandview)

Cyntec Holding

(H.K.) Ltd. (CHK)


Ownership (%)

26


Grandview

Holding Ltd.

(Grandview)

Cyntec International

Ltd. (CIL-Labuan)

Trading 100.00 100.00 100.00

Cyntec Holding

(H.K.) Ltd.

(CHK)

Cyntec (Suzhou)

Co., Ltd. (CSC)



of new-type electronic

components and

wholesale, import and

export of similar

products

100.00 100.00 100.00

Cyntec Holding

(H.K.) Ltd.

(CHK)

Cyntec Electronics

(Suzhou) Co., Ltd.

(CES)



of new-type electronic

components (chip

components, sensing

elements, hybrid

integrated circuits) and

wholesale of similar

products

100.00 100.00 100.00

DelBio Inc.

(DelBio)

DelBio (Wujiang)

Co., Ltd.

Manufacturing,

wholesale and retail of

medical equipment

100.00 100.00 100.00 Note I

Deltronics

(Netherlands)

B.V.(DEN)

Eltek Power

Systems AS

Equity investments 100.00 - - Note A

Eltek Power

Systems AS

Eltek Ventures AS Equity investments 100.00 - - Note A

Note I

Eltek Power

Systems AS

Networks Holding

AS


Note I

Eltek Power

Systems AS

Eltek Management

Invest AS


Note I

Eltek Power

Systems AS

Eltek Valere

Holding AS


Note I

Eltek

Management

Invest AS

Eltek Valere

Holding AS


Note I

Eltek Valere

Holding AS

Eltek AS Research and sales of

power supplies and

others

100.00 - - Note A

Eltek Valere

Holding AS

Eltek Holding Inc. Equity investments 9.90 - - Note A

Ownership (%)

27


Eltek AS Eltek Pakistan Pvt

Ltd

Sales of power supplies

and others

100.00 - - Note A

Note I

Eltek AS Eltek Deutschland

GmbH


and others and system

installation

100.00 - - Note A

Note I

Eltek AS Eltek Australia Pty

Ltd



installation

100.00 - - Note A

Note I

Eltek AS Eltek Egypt for

Power Supply


and others

95.00 - - Note A

Note I

Eltek AS Eltek SGS Pvt Ltd Sales of power supplies


installation

100.00 - - Note A

Note I

Eltek AS Eltek SGS

Mechanics Pvt Ltd.


and others

33.60 - - Note A

Note I

Eltek AS Eltek Power Pte Ltd Sales of power supplies


installation

100.00 - - Note A

Note I

Eltek AS Eltek Polska Sp.zoo Sales of power supplies


installation

51.00 - - Note A

Note I

Eltek AS Eltek s.r.o. Manufacturing and sales

of power supplies

100.00 - - Note A

Note I

Eltek AS Eltek Power France

SAS



installation

100.00 - - Note A

Note I

Eltek AS Eltek Ltd. Equity investments and

trading

100.00 - - Note A

Note I

Eltek AS Eltek MEA FZCO Closure 80.00 - - Note A

Note I

Eltek AS Eltek MEA DMCC Sales of power supplies

and others

100.00 - - Note A

Note I

Eltek AS Eltek Kenya

Limited

Sales of power supplies 99.00 - - Note A

Note I

Ownership (%)

28


Eltek AS Eltek West Africa

Ltd

Sales of power supplies 99.00 - - Note A

Note I

Eltek AS Eltek S.r.l Sales of power supplies

and others

100.00 - - Note A

Note I

Eltek AS Eltek Holding AB Equity investments 100.00 - - Note A

Note I

Eltek AS Eltek Power Ltd Sales of power supplies 100.00 - - Note A

Note I

Eltek AS Eltek Power Oy Sales of power supplies

and others

100.00 - - Note A

Note I

Eltek AS OOO Eltek Sales of power supplies


installation

100.00 - - Note A

Eltek AS Eltek Enerji

Sistemleri Ltd

Sirketi


and others

100.00 - - Note A

Note I

Eltek AS Eltek Holding Inc. Equity investments 90.10 - - Note A

Note I

Eltek SGS Pvt

Ltd

Eltek SGS

Mechanics Pvt Ltd.

Discontinued 17.40 - - Note A

Note I

Eltek MEA

DMCC

Eltek Kenya

Limited


and others

1.00 - - Note A

Note I

Eltek MEA

DMCC

Eltek West Africa

Ltd


and others

1.00 - - Note A

Note I

Eltek

Deutschland

GmbH

Eltek Industrial

Systems GmbH

Discontinued 100.00 - - Note A

Note I

Eltek

Deutschland

GmbH

Eltek Montage

GmbH

Installation and

maintenance of power

supplies

100.00 - - Note A

Note I

Eltek

Deutschland

GmbH

E.V.I Electronics

Sp.zoo

Trading and construction

of power supply model

100.00 - - Note A

Note I

Ownership (%)

29


Eltek Power Pte

Ltd

Eltek Power Inc Sales of power supplies

and others

100.00 - - Note A

Note I

Eltek Power Pte

Ltd

Eltek Thailand Co

Ltd


and others

100.00 - - Note A

Note I

Note N

Eltek Power Pte

Ltd

Eltek Power

Cambodia Ltd


and others

100.00 - - Note A

Note I

Eltek Power Pte

Ltd

Eltek Power Sdn

Bhd


and others

100.00 - - Note A

Note I

Note O

Eltek Power Pte

Ltd

E.V. Industrial te

Ltd


and others

100.00 - - Note I

Note M

Eltek Power Pte

Ltd

Eltek Power Korea

Co Ltd


and others

100.00 - - Note A

Note I

Eltek Ltd Eltek CVI Ltd Equity investments 100.00 - - Note A

Note I

Eltek CVI Ltd Eltek Energy

Technology


of power supplies

100.00 - - Note A

Note I

Eltek Holding

AB

Eltek Power

Sweden AB


and equity investments

100.00 - - Note A

Note I

Eltek Power

Sweden AB

Valere Power

Europe AB

Closure 100.00 - - Note A

Note I

Eltek Holding

Inc.

Eltek Inc. Manufacturing and sales

of power supplies

100.00 - - Note A

Eltek Inc. Eltek Argentina

S.R.L


and others

100.00 - - Note A

Note I

Eltek Inc. Eltek Sistemas de

Energia Ind. Com.

SA


of power supplies

100.00 - - Note A

Note I

Eltek Inc. Eltek Peru SRL Sales of power supplies

and others

100.00 - - Note A

Note I

Ownership (%)

30

Note A: Companies were established or acquired through merger during 2015.

Note B: Companies were established or acquired through merger during 2014.

Note C: On April 1, 2014, the Company’s wholly-owned subsidiary – Delta Robot Automatic

Co., Ltd. was merged into the Company and the surviving company was the Company.

Note D: DIH acquired stock ownership in Ace, Drake, DGSG (please refer to Note E) and

Boom (please refer to Note F) which indirectly acquired 3.811%, 48.51%, 8.21% and

25% stock ownership, respectively in DGC. Including the original 10.38% stock

ownership held by DIH, the Company’s consolidated stock ownership in DGC was

95.91% and accordingly, DGC was included in the consolidated financial statements.

Note E: DIH indirectly held 8.21% share ownership of DGC through DGSG, and acquired

54.83% share ownership of DGSG on April 1, 2013. DGSG was included in the

consolidated financial statements effective on that date, and DIH acquired 45.17%

share ownership of DGSG on September 1, 2014.

Note F: DIH acquired 100% share ownership of Boom on September 1, 2014. Boom was

included in the consolidated financial statements effective on that date, and DIH

indirectly held 25% share ownership of DGC.

Note G: Formerly known as Delta Smart Green Life Co., Ltd. and was renamed on August 25,

2014. Liquidation was completed at December 4, 2014.

Note H: Formerly known as Vivitek Corporation and was renamed on December 29, 2014.

Note I: As the subsidiaries do not meet the definition of significant subsidiaries, their financial

statements as of June 30, 2015 were not reviewed by independent accountants.


Eltek Inc. Eltek Colombia

S.A.S


and others

100.00 - - Note A

Note I

Eltek Inc. Eltek Energy

International I


Note I

Eltek Inc. Eltek Energy

International II


Note I

Eltek Energy

International II

Eltekenergy

Services SA de CV


and others

100.00 - - Note A

Note I

Eltek Energy

International II

Eltekenergy

International de

Mexico S de RL de

CV


and others

100.00 - - Note A

Note I

Ownership (%)

31

Note J: As the subsidiaries do not meet the definition of significant subsidiaries, their financial

statements as of June 30, 2014 were not reviewed by independent accountants.

Note K: Ayecom was included in DNIT starting from the effective date of consolidation on

January 1, 2015.

Note L: After Drake was liquidated on February 3, 2015, DIH holds 100% share capital in

Drake-HK.

Note M: The subsidiary was merged into Eltek Power Pte Ltd. on June 30, 2015.

Note N: 55% of shares are held through others due to local regulations.

Note O: 71% of shares are held through others due to local regulations.

The financial statements of certain consolidated subsidiaries for the six-month periods ended

June 30, 2015 and 2014 were not reviewed by independent accountants. The total assets of these

unreviewed subsidiaries as of June 30, 2015 and 2014 were $14,494,016 and $17,038,969,

constituting 6.46% and 8.68% of total consolidated assets, respectively, and the total liabilities

were $3,859,145 and $2,734,698, constituting 3.13% and 2.91% of the consolidated total

liabilities, respectively. The total comprehensive income was $197,301, $60,303, $120,094 and

$509,513, constituting 8.64%, 1.38%, 2.28%, and 5.51% of the consolidated total

comprehensive income for the three-month periods ended June 30, 2015 and 2014, and

six-month periods ended June 30, 2015 and 2014, respectively.

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:

As of June 30, 2015, December 31, 2014 and June 30, 2014, the non-controlling interest

amounted to $9,953,668, $12,746,960 and $14,040,376, respectively. The information on

non-controlling interest and respective subsidiaries is as follows:

Principal place Ownership Ownershipof business Amount (%) Amount (%)

Delta International

Holding Ltd. (DIH)

Cayman Islands $ 9,868,149 6% $12,724,164 6%

Non-controlling interestJune 30, 2015 December 31, 2014

Name of subsidiary

Principal place Ownershipof business Amount (%)

Delta International Holding Ltd. (DIH) Cayman Islands 14,013,691$ 6%

Non-controlling interestJune 30, 2014

Name of subsidiary

32

Summarised financial information of the subsidiaries:

Balance sheets

Statements of comprehensive income

June 30, 2015 December 31, 2014 June 30, 2014

Current assets 92,049,213$ 86,974,020$ 86,139,731$Non-current assets 43,133,157 41,269,607 37,454,356Current liabilities 43,784,633)( 38,117,964)( 39,143,531)(

Non-current liabilities 1,661,039)( 2,050,154)( 2,101,472)(

Total net assets 89,736,698$ 88,075,509$ 82,349,084$

DIH

Three-month period Three-month periodended June 30, 2015 ended June 30, 2014

Revenue 36,503,818$ 34,422,320$

Profit before income tax 2,106,566 2,668,595Income tax expense 491,246)( 408,282)(Profit for the period from continuing

operations1,615,321 2,260,314

Net non-controlling interest 343,835)( 374,862)(Profit for the period 1,271,486 1,885,451

Other comprehensive income, net of tax 2,212,359 884,271

Total comprehensive income for the period 3,483,845$ 2,769,722$

Comprehensive income attributable to

non-controlling interest 344,219$ 563,807$

Dividends paid to non-controlling interest 8,218)($ -$

DIH

Six-month period Six-month periodended June 30, 2015 ended June 30, 2014

Revenue 70,481,420$ 65,519,209$

Profit before income tax 3,743,478 4,735,996Income tax expense 672,737)( 703,286)(Profit for the period from continuing

operations3,070,742 4,032,711

Net non-controlling interest 660,369)( 639,258)(Profit for the period 2,410,373 3,393,452

Other comprehensive income, net of tax 3,226,196 928,406

Total comprehensive income for the period 5,636,569$ 4,321,858$

Comprehensive income attributable to

non-controlling interest 648,311$ 579,198$

Dividends paid to non-controlling interest 2,872,049$ 16,979$

DIH

33

Statements of cash flows

(4) Employee benefits

A. Pensions

(a) Defined contribution plans

Under the defined contribution plans, the contributions are recognised as pension expenses

when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the

extent of a cash refund or a reduction in the future payments.

(b) Defined benefit plans

i. Net obligation under a defined benefit plan is defined as the present value of an amount

of pension benefits that employees will receive on retirement for their services with the

Group in current period or prior periods. The liability recognised in the balance sheet in

respect of defined benefit pension plans is the present value of the defined benefit

obligation at the balance sheet date less the fair value of plan assets. The defined benefit

net obligation is calculated annually by independent actuaries using the projected unit

credit method. The rate used to discount is determined by using interest rates of

high-quality corporate bonds that are denominated in the currency in which the benefits

will be paid, and that have terms to maturity approximating to the terms of the related

pension liability; when there is no deep market in high-quality corporate bonds, the

Group uses interest rates of government bonds (at the balance sheet date) instead.

ii. Remeasurement arising on defined benefit plans is recognised in other comprehensive

income in the period in which they arise and are recorded as retained earnings.

iii. Past service costs are recognised immediately in profit or loss.

Six-month period Six-month periodended June 30, 2015 ended June 30, 2014

Net cash provided by (used in) operating

activities 3,472,955$ 3,458,272$Net cash provided by (used in) investing

activities 17,201,317)( 1,258,822)(Net cash provided by (used in) financing

activities 1,440,826 1,221,987)(Effect of exchange rates on cash and cash

equivalents 1,146,350)( 501,065)(

Increase (decrease) in cash and cash

equivalents 13,433,886)( 476,398

Cash and cash equivalents, beginning of

period 40,780,371 37,342,245

Cash and cash equivalents, end of period 27,346,485$ 37,818,643$

DIH

34

iv. 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 recognised 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 recognised 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.

(6) Business combinations

The Group uses the acquisition method to account for business combinations. The consideration

transferred for an acquisition is measured as the fair value of the assets transferred, liabilities

incurred or assumed and equity instruments issued at the acquisition date, plus the fair value of any

assets and liabilities resulting from a contingent consideration arrangement. All acquisition-related

costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities

assumed in a business combination are measured initially at their fair values at the acquisition date.

For each business combination, the Group measures at the acquisition date components of

non-controlling interests in the acquiree that are present ownership interests and entitle their holders

to the proportionate share of the entity’s net assets in the event of liquidation at either fair value or

the present ownership instruments’ proportionate share in the recognised amounts of the acquiree’s

identifiable net assets. All other non-controlling interests should be measured at the acquisition-date

fair value.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF

ASSUMPTION UNCERTAINTY

Please refer to Note 5 in the consolidated financial statements for the year ended December 31, 2014.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents


Cash on hand 5,810$ 6,052$ 6,056$Checking and demand deposits 41,492,811 49,206,516 23,629,737Time deposits 18,760,256 24,247,250 36,868,699

Total 60,258,877$ 73,459,818$ 60,504,492$

35

A. The Group associates 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 at fair value through profit or loss

A. The Group recognised net gain (loss) on financial assets held for trading of ($49,859), $18,637,

$14,794 and ($4,352) for the three-month and six-month periods ended June 30, 2015 and

2014, respectively. The Group recognised net gain (loss) on financial assets designated as at


Current items:

Financial assets held for

trading

Listed stocks 40,593$ 26,573$ 36,403$

Convertible bonds 3,400 4,500 18,000

43,993 31,073 54,403Valuation adjustment of

financial assets held for

trading 10,078 8,553 21,564

Subtotal 54,071 39,626 75,967

Financial asset designated as

at fair value throughprofit or loss on initial

recognition

Convertible bonds - - 28,844

Subtotal - - 28,844

Total 54,071$ 39,626$ 104,811$


Non-current items:

Financial assets designated

as at fair value through

profit or lossConvertible bonds 191,212$ 96,700$ 147,158$

Valuation adjustment of

financial assets designated

as at fair value through

profit or loss on initial

recognition 37,928 19,224 16,577

Total 229,140$ 115,924$ 163,735$

36

fair value through profit or loss on initial recognition of ($2,217), $339, $18,704 and $3,468

for the three-month and six-month periods ended June 30, 2015 and 2014, respectively.

B. The counterparties of the Group’s private placement of convertible bonds are mostly listed

companies in Taiwan and overseas. The Group expects that the counterparties of the private

placement of convertible bonds that it invested in are not likely to default.

C. The non-hedging derivative instrument transactions and contract information are as follows:

Contract period

Forward exchange contracts:

- Sell USD / Buy RMB USD 139,600 2015.03.09~2015.10.26

- Buy USD / Sell EUR EUR 4,000 2015.04.07~2015.09.29

- Sell USD / Buy SGD SGD 15,804 2014.09.09~2016.06.02

- Sell USD / Buy TWD USD 17,500 2015.05.20~2015.09.25

- Sell EUR / Buy TWD EUR 71 2015.04.30~2015.08.25

- Sell USD / Buy JPY USD 2,597 2015.06.08~2015.07.23

- Sell USD / Buy EUR EUR 2,400 2015.06.05~2015.07.13

- Sell USD / Buy CZK CZK 34,500 2015.03.09~2015.10.26

- Sell JPY / Buy USD JPY 2,000 2015.04.14~2015.07.03

- Sell USD / Buy HKD HKD 95,665 2015.03.16~2015.10.05

- Buy USD / Sell KRW USD 465 2015.06.10~2015.07.28

- Buy NOK / Sell GBP GBP 500 2015.01.26~2015.07.15

- Buy NOK / Sell AUD AUD 3,000 2014.12.16~2015.11.16

- Buy NOK / Sell EUR EUR 1,000 2014.10.10~2016.09.15


Currency option contract

- Buy a put option on EUR /

Buy a call option on NOK

EUR 4,025 2014.03.14~2016.10.07

- Sell a put option on EUR /

Sell a put option on NOK

EUR 8,050 2014.03.14~2016.10.07

Cross currency swap

- Buy NOK / Sell AUD AUD 1,300 2014.11.24~2015.07.15

- Buy NOK / Sell EUR EUR 1,000 2014.12.16~2015.09.15

June 30, 2015

Contract amount (nominal

Financial instruments principal) (in thousands)

37

The Group entered into forward exchange contracts to manage exposures to foreign exchange

rate fluctuations of import or export sales. However, the forward exchange transactions did not

meet the criteria for hedge accounting. Therefore, the Group did not apply hedge accounting.

D. The Group has no financial assets at fair value through profit or loss pledged to others.

Contract period





- Buy USD / Sell SGD SGD 631 2014.04.03~2015.01.14




- Buy USD / Sell JPY USD 1,000 2014.12.02~2015.01.20



- Buy USD / Sell RMB USD 102,000 2014.12.05~2015.03.25



December 31, 2014


Contract period





Buy USD / Sell SGD SGD 631 2014.04.03~2015.01.14







- Buy USD / Sell KRW USD 1,025 2014.05.08~2014.08.28

- Buy USD / Sell RMB USD 21,000 2014.06.25~2014.07.02

June 30, 2014



38

(3) Available-for-sale financial assets

A. The Group recognised ($690,480), $173,945, ($866,436) and ($384,747) in other

comprehensive income (loss) for fair value change and reclassified ($165,593), $133,575,

($244,977) and $113,001 from equity to profit or loss for the three-month and six-month periods

ended June 30, 2015 and 2014, respectively.

B. The net asset value of the Group’s equity investment in WK Technology Fund V and WK

Technology Fund VIII declined significantly to below its initial investment cost. Accordingly,

the Group recognised impairment loss of $15,549 for the six-month period ended June 30, 2014.

C. The Group has no debt instruments available-for-sale financial assets.

D. The net asset value of the Group’s equity investment in HELIO Optoelectronics Corp. declined

significantly to below its initial investment cost. Accordingly, the Group recognised impairment

loss of $14,422 for 2015.

E. As of June 30, 2015, December 31, 2014 and June 30, 2014, the Group has no available-for-sale

financial assets pledged to others.


Current items:

Listed stocks 578,579$ 947,304$ 709,367$

Emerging stocks 29,481 36,526 -Valuation adjustment of

available-for-sale

financial assets 52,903)( 295,506)( 23,630

555,157$ 688,324$ 732,997$

Non-current items:

Listed stocks 4,375,822$ 4,594,911$ 3,900,385$

Emerging stocks 576,184 141,000 254,492

Unlisted stocks 1,226,657 1,356,108 1,169,849

6,178,663 6,092,019 5,324,726

81,381 945,512 1,590,483

Accumulated impairment-

available-for-sale financial

assets 84,854)( 70,432)( 57,561)(

6,175,190$ 6,967,099$ 6,857,648$

Valuation adjustment of

available-for-sale

financial assets

39

(4) Financial assets measured at cost

Based on the Group’s intention, its stock investments should be classified as available-for-sale

financial assets. However, as those stocks are not traded in active market, and sufficient industry

information of companies similar to stocks investment companies and their financial information

cannot be obtained, the fair value of the stock investments cannot be measured reliably. The

Group classified those stocks as financial assets measured at cost.

(5) Hedge accounting

A. The Group entered into derivative financial instruments contracts with a variety of financial

institutions with high credit quality and the Group deals with several banks to disperse the credit

risk. The maximum exposure to credit risk at balance sheet date is the carrying amount of

derivative financial instruments for hedging.

B. Fair value hedge

In order to prevent the fair value risk of the committed future investment arising from foreign

exchange rate movements become unpredicted, the Group entered into forward foreign exchange

contracts to hedge.

Details of gains and losses on hedging instruments and on hedged items are provided in Note

6(27).

C. Cash flow hedge

In order to prevent the risk resulting from future cash flow fluctuation due to foreign exchange

rate fluctuations, the Group entered into foreign currency forward contracts which meet all

criteria for hedge accounting. The related information is as follows:


Non-current items:

Unlisted stocks 771,146$ 773,911$ 424,747$

Accumulated impairment -

financial assets measured

at cost 24,624)( 25,150)( 23,961)(

746,522$ 748,761$ 400,786$


Items Assets (Liabilities) Assets (Liabilities) Assets (Liabilities)

Current items:

Forward foreign exchange

contracts

- Cash flow hedge -$ -$ 12,931)($

40

(a) The hedged highly probable forecast transactions denominated in foreign currency are

expected to occur during the next 12 months. Amounts accumulated in other comprehensive

income as of June 30, 2014 are recycled into profit or loss in the period or periods when the

hedged item affects profit or loss.

(b) Information about gain or loss arising from cash flow hedges recognised in profit or loss and

other comprehensive income:

(6) Accounts receivable and overdue receivables

Period of

Derivative gain (loss)

instruments Period of expected to be

Hedged designated Fair value anticipated recognized in

items as hedges June 30, 2014 cash flow profit or loss

Payables in

foreign currencies

Forward exchange

contracts

($ 12,931) 2014.08.12

~2014.10.09

2014.08.12

~2014.10.09

Designated for hedging instruments

Items 2015 2014

Amount of gain or loss adjusted in other

comprehensive income -$ 3,242$

Amount of gain or loss transferred from

other comprehensive income to profit

or loss - 2,209)(

Items 2015 2014

Amount of gain or loss adjusted in other -$ 20,176)($

comprehensive income

Amount of gain or loss transferred from - 3,474

other comprehensive income to profit

or loss

Three-month periods ended June 30,

Six-month periods ended June 30,


Accounts receivable 43,849,647$ 43,711,298$ 40,337,751$

Less: Allowance for doubtful

accounts 1,107,310)( 755,087)( 700,400)(

42,742,337 42,956,211 39,637,351

Overdue receivables (shown

as other non-current assets) 82,355 80,029 74,521Less: Allowance for doubtful

accounts 82,355)( 80,029)( 74,521)(

42,742,337$ 42,956,211$ 39,637,351$

41

A. The Group took out a credit insurance on the accounts receivable from certain main customers,

whereby 90% of the receivable amount can be covered when the receivables are uncollectible.

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

The above aging analysis was based on past due date.

C. Movements on the Group’s provision for impairment of accounts receivable are as follows:

D. The credit quality of accounts receivable that were neither past due nor impaired was in the

following categories based on the Group’s credit quality control policy:


Up to 90 days 2,307,796$ 2,554,237$ 2,098,427$

91 to 180 days 414,096 377,851 601,358

181 to 365 days 525,461 646,493 251,398

Over 365 days 706,147 432,783 532,111

3,953,500$ 4,011,364$ 3,483,294$

Individual Groupprovision provision Total

At January 1 80,029$ 755,087$ 835,116$

Acquired through business

combinations - 168,232 168,232

Provision for impairment 7,199 214,237 221,436Write-offs during the

period 2,690)( 4,577)( 7,267)(Transfer to revenue 198)( - 198)(Net exchange differences 1,985)( 25,669)( 27,654)(

At June 30 82,355$ 1,107,310$ 1,189,665$

Six-month period ended June 30, 2015

Individual Group

provision provision Total

At January 1 75,700$ 572,420$ 648,120$

Provision for impairment 2,514 184,978 187,492

Write-offs during the

period 3,856)( 45,676)( 49,532)(

Net exchange differences 163 11,322)( 11,159)(

At June 30 74,521$ 700,400$ 774,921$



Group 1 21,487,207$ 26,956,282$ 22,614,748$

Group 2 17,301,629 11,988,565 13,539,309

38,788,836$ 38,944,847$ 36,154,057$

42

Group 1: Medium to low risk customers: These customers include large enterprise groups which

are operating well, financial transparency is high and approved by the headquarters’

credit controller as well as government and educational institutions.

Group 2: Normal risk customers: Customers other than the medium to low risk customers.

(7) Transfer of financial assets

The Group entered into a factoring agreement with financial institutions to sell its accounts

receivable. Under the agreement, the Group is not required to bear the default risk of the accounts

receivable and the percentage of advance payments is zero, but is liable for the losses incurred on

any business dispute. As of June 30, 2015, December 31, 2014 and June 30, 2014, the relevant

information of unsettled accounts receivable that were sold is set forth below:

(8) Inventories

Purchaser of Accounts Interest rate ofaccounts receivable Amount Amount amount

receivable transferred derecognised Facilities advanced advanced

Taishin International

Bank79,261$ -$ 308,600$ -$ -$




Bank47,249$ -$ 443,100$ -$ -$




Bank135,111$ -$ 418,110$ -$ -$

June 30, 2015

December 31, 2014

June 30, 2014

Allowance forCost valuation loss Book value

Raw materials 7,097,952$ 997,728)($ 6,100,224$

Work in process 1,905,045 - 1,905,045

Finished goods 15,538,653 1,310,154)( 14,228,499

Inventory in transit 139,500 - 139,500

24,681,150$ 2,307,882)($ 22,373,268$

June 30, 2015

43


Raw materials 6,368,533$ 536,922)($ 5,831,611$

Work in process 1,697,115 - 1,697,115

Finished goods 14,441,030 796,464)( 13,644,566


22,905,361$ 1,333,386)($ 21,571,975$


Raw materials 5,932,036$ 459,268)($ 5,472,768$

Work in process 1,653,363 - 1,653,363

Finished goods 11,962,024 702,693)( 11,259,331


19,878,232$ 1,161,961)($ 18,716,271$

December 31, 2014

June 30, 2014

2015 2014

Cost of goods sold 34,709,769$ 33,873,900$

Provision for inventory obsolescence and

market price decline 226,187 110,894

Others 149,643 106,372

35,085,599$ 34,091,166$

2015 2014

Cost of goods sold 65,907,508$ 64,965,814$

Provision for inventory obsolescence and

market price decline 417,874 120,545

Others 401,185 270,055

66,726,567$ 65,356,414$



44

(9) Investments accounted for under the equity method

A. Details of investments accounted for under the equity method are set forth below:

Note: The percentage of ownership in associates represent the percentage of common shares

held by the Group.

B. Share of profit (loss) of associates accounted for under the equity method are set forth below:

C. The financial statements of DET were reviewed by other independent accountants. Investment

accounted for under the equity method amounted to $6,221,419 and $5,882,200 as of June 30,

2015 and 2014, respectively, and the share of profit and other comprehensive income of

associates accounted for under the equity method was $308,495, $270,304, $560,039 and

$566,744 for the three-month and six-month periods ended June 30, 2015 and 2014,

respectively.

D. The financial statements of the above associates were not reviewed by independent accountants.

Investments accounted for under the equity method in these companies amounted to $553,779

and $591,903 as of June 30, 2015 and 2014, respectively, and the share of loss and other

% % %

Name of associates (Note) Book value (Note) Book value (Note) Book value

Delta Electronics (Thailand)

Public Co., Ltd. (DET)

20.93 6,221,419$ 20.93 6,436,189$ 20.93 5,882,200$

Amita Technologies, Inc.

(Amita) 26.93 254,470 26.93 254,160 26.93 249,621

Digital Projection

International Ltd. (DPI) 41.00 251,176 41.00 292,213 32.11 253,574

Trillion Science Inc.

(Trillion), etc. 48,133 34,175 88,708

6,775,198$ 7,016,737$ 6,474,103$


Name of associates 2015 2014

DET 341,166$ 275,991$

DPI, etc. 35,965)( 13,219)(

305,201$ 262,772$

Name of associates 2015 2014

DET 640,780$ 536,478$

DPI, etc. 37,993)( 53,644)(

602,787$ 482,834$



45

comprehensive income of associates accounted for under the equity method was ($32,144),

($12,508), ($37,406) and ($52,506) for the three-month and six-month periods ended June 30,

2015 and 2014, respectively.

E. The summarized financial information of the associates that are material to the Group is shown

below:

Note: The percentage of ownership in associates represent the percentage of common shares

held by the Group.

Principal place June 30, December 31, Nature of Method of

Company name of business 2015 2014 relationship measurement

Delta Electronics

(Thailand)

Public Co., Ltd.

(DET)

Thailand 20.93% 20.93% Holds more than

20% of voting

rights

Equity method

Principal place June 30, Nature of Method ofCompany name of business 2014 relationship measurement

Delta Electronics

(Thailand)

Public Co., Ltd.

(DET)

Thailand 20.93% Holds more than

20% of voting

rights

Equity method

Shareholding ratio (Note)

Shareholding ratio (Note)

Balance sheet


Current assets 30,457,625$ 31,228,433$ 27,426,591$

Non-current assets 5,559,143 5,754,072 6,102,828

Current liabilities 9,907,882)( 9,079,200)( 9,357,399)(

Non-current liabilities 1,565,489)( 1,633,589)( 1,161,609)(

Total net assets 24,543,397$ 26,269,716$ 23,010,411$

Share in associate's net assets 6,264,584$ 6,479,587$ 5,975,989$Unrealised upstream and

sidestream transactions 36,102)( 35,947)( -

Others 7,063)( 7,451)( 7,419)(

Carrying amount of the

associate 6,221,419$ 6,436,189$ 5,968,570$

DET

46

F. The carrying amount of the Group’s interests in all individually immaterial associates and the

Group’s share of the operating results are summarised below:

As of June 30, 2015, December 31, 2014 and June 30, 2014, the carrying amount of the Group’s

individually immaterial associates amounted to $553,779, $580,548 and $591,903, respectively.

Statement of comprehensive income

Three-month period Three-month period

ended June 30, 2015 ended June 30, 2014

Revenue 10,810,305$ 10,301,656$

Profit for the period from continuing

operations 1,577,802$ 1,377,642$Loss for the period from discontinued

operations - -

Other comprehensive income, net of tax 442,988 30,546

Total comprehensive income 2,020,790$ 1,408,188$

Dividends received from associates -$ -$

Six-month period Six-month period


Revenue 21,531,283$ 20,435,230$

Profit for the period from continuing

operations 3,075,685$ 2,667,675$Loss for the period from discontinued

operations - -

Other comprehensive income, net of tax 24,941 11,677

Total comprehensive income 3,100,626$ 2,679,352$

Dividends received from associates 749,034$ 657,763$

DET

DET

Three-month period Three-month periodended June 30, 2015 ended June 30, 2014

Profit or loss for the period from continuing

operations32,372)($ 11,861$

Other comprehensive income, net of tax 149 2,190)(

Total comprehensive (loss) income 32,223)($ 9,671$

Six-month period Six-month period


Profit or loss for the period from continuing

operations68,818)($ 68,018)($

Other comprehensive income (loss), net of tax 1,055 1,789)(

Total comprehensive loss 67,763)($ 69,807)($

47

G. The Group’s investment in DET has quoted market price. The fair value of DET as of June 30,

2015, December 31, 2014 and June 30, 2014 was $21,711,877, $17,800,959 and $15,105,363,

respectively.

48

(10) Property, plant and equipmentUnfinished

construction

Machinery and Testing and equipment

At January 1, 2015 Land Buildings equipment equipment Others under acceptance Total

Cost 4,982,097$ 30,256,283$ 26,454,466$ 10,350,897$ 8,408,929$ 851,472$ 81,304,144$

Accumulated depreciation and

impairment 11,427)( 8,884,448)( 20,000,970)( 8,838,568)( 6,753,972)( - 44,489,385)(

4,970,670$ 21,371,835$ 6,453,496$ 1,512,329$ 1,654,957$ 851,472$ 36,814,759$

2015

Opening net book amount 4,970,670$ 21,371,835$ 6,453,496$ 1,512,329$ 1,654,957$ 851,472$ 36,814,759$

Additions 42,297 204,307 1,214,853 712,185 417,172 1,230,151 3,820,965

Acquired through business

combinations 13,427 533,965 69,063 238,166 184,991 - 1,039,612

Disposal - 11,629)( 62,667)( 4,116)( 12,178)( 5,216)( 95,806)(

Transfer - 126,727 163,056 16,572 124,083 430,438)( -

Depreciation charge - 827,990)( 1,404,519)( 491,383)( 563,510)( - 3,287,402)(

Net exchange differences 19,159)( 396,129)( 131,925)( 38,362)( 32,461)( 7,270)( 625,306)(

Closing net book amount 5,007,235$ 21,001,086$ 6,301,357$ 1,945,391$ 1,773,054$ 1,638,699$ 37,666,822$

At June 30, 2015

Cost 5,019,176$ 30,799,359$ 28,285,718$ 12,113,420$ 9,614,724$ 1,638,699$ 87,471,096$


impairment 11,941)( 9,798,273)( 21,984,361)( 10,168,029)( 7,841,670)( - 49,804,274)(

5,007,235$ 21,001,086$ 6,301,357$ 1,945,391$ 1,773,054$ 1,638,699$ 37,666,822$

49

Unfinished

construction

Machinery and Testing and equipment

At January 1, 2014 Land Buildings equipment equipment Others under acceptance Total

Cost 4,960,552$ 29,285,538$ 26,236,404$ 9,928,498$ 7,942,014$ 757,920$ 79,110,926$


impairment 12,260)( 7,791,223)( 19,132,188)( 8,664,472)( 6,316,021)( - 41,916,164)(

4,948,292$ 21,494,315$ 7,104,216$ 1,264,026$ 1,625,993$ 757,920$ 37,194,762$

2014

Opening net book amount 4,948,292$ 21,494,315$ 7,104,216$ 1,264,026$ 1,625,993$ 757,920$ 37,194,762$

Additions - 158,976 625,844 374,992 409,151 850,971 2,419,934

Disposals - 34)( 27,864)( 1,151 26,195)( 5,784)( 58,726)(

Transfer 58,728)( 281,715)( 109,608 15,134 121,417 204,331)( 298,615)(

Depreciation charge - 797,077)( 1,372,708)( 447,880)( 579,129)( - 3,196,794)(

Net exchange differences 9,903 283,132)( 103,742)( 20,584)( 23,677)( 16,223)( 437,455)(

Closing net book amount 4,899,467$ 20,291,333$ 6,335,354$ 1,186,839$ 1,527,560$ 1,382,553$ 35,623,106$

At June 30, 2014

Cost 4,912,190$ 28,127,789$ 25,500,069$ 10,051,001$ 8,370,508$ 1,382,553$ 78,344,110$


impairment 12,723)( 7,836,456)( 19,164,715)( 8,864,162)( 6,842,948)( - 42,721,004)(

4,899,467$ 20,291,333$ 6,335,354$ 1,186,839$ 1,527,560$ 1,382,553$ 35,623,106$

50

(11) Investment property

Land Buildings Total

At January 1, 2015

Cost 465,724$ 4,321,469$ 4,787,193$

Accumulated depreciation

and impairment - 2,563,345)( 2,563,345)(

465,724$ 1,758,124$ 2,223,848$

2015

Opening net book amount 465,724$ 1,758,124$ 2,223,848$

Depreciation charge - 74,492)( 74,492)(

Closing net book amount 465,724$ 1,683,632$ 2,149,356$

At June 30, 2015

Cost 465,724$ 4,321,469$ 4,787,193$


and impairment - 2,637,837)( 2,637,837)(

465,724$ 1,683,632$ 2,149,356$

Land Buildings Total

At January 1, 2014

Cost 385,573$ 3,573,416$ 3,958,989$


and impairment - 1,998,536)( 1,998,536)(

385,573$ 1,574,880$ 1,960,453$

2014

Opening net book amount 385,573$ 1,574,880$ 1,960,453$

Reclassifications 58,728 239,887 298,615

Depreciation charge - 70,034)( 70,034)(

Closing net book amount 444,301$ 1,744,733$ 2,189,034$

At June 30, 2014

Cost 444,301$ 4,117,695$ 4,561,996$


and impairment - 2,372,962)( 2,372,962)(

444,301$ 1,744,733$ 2,189,034$

51

A. Rental income from the lease of the investment property and direct operating expenses arising

from the investment property are shown below:

B. The fair value of the investment property held by the Group as at June 30, 2015, December 31,

2014 and June 30, 2014 was $2,470,502, $2,470,502 and $2,340,487, respectively, which was

revalued by the Group.

2015 2014

Rental revenue from the lease of the

investment property 58,870$ 58,495$

Direct operating expenses arising from the

investment property that generated rental

income for the period -$ -$


investment property that did not generate

rental income for the period 5,406$ 5,854$

2015 2014

Rental revenue from the lease of the

investment property 117,520$ 116,870$


investment property that generated rental

income for the period -$ -$


investment property that did not generate

rental income for the period 12,099$ 12,202$



52

(12) Intangible assetsCustomer Technical

At January 1, 2015 Trademarks Patents Goodwill Relationship Skill Others Total

Cost 413,165$ 1,013,508$ 7,017,700$ 5,207,669$ -$ 1,637,465$ 15,289,507$


impairment6,860)( 996,953)( 27,263)( 1,764,515)( - 787,901)( 3,583,492)(

406,305$ 16,555$ 6,990,437$ 3,443,154$ -$ 849,564$ 11,706,015$

2015

Opening net book amount 406,305$ 16,555$ 6,990,437$ 3,443,154$ -$ 849,564$ 11,706,015$

Additions-acquired separately - 7,050 - - - 173,253 180,303

Additions-acquired through business

combinations2,252,660 - 5,591,157 2,819,726 3,011,486 128,492 13,803,521

Amortization 33,510)( 1,793)( - 284,371)( 42,599)( 239,953)( 602,226)(

Net exchange differences 17,989 - 4,779)( 66,313)( 24,049 22,654 6,400)(

Closing net book amount 2,643,444$ 21,812$ 12,576,815$ 5,912,196$ 2,992,936$ 934,010$ 25,081,213$

At June 30, 2015

Cost 2,665,825$ 1,016,197$ 12,604,078$ 7,942,065$ 3,011,486$ 2,437,333$ 29,676,984$


impairment22,381)( 994,385)( 27,263)( 2,029,869)( 18,550)( 1,503,323)( 4,595,771)(

2,643,444$ 21,812$ 12,576,815$ 5,912,196$ 2,992,936$ 934,010$ 25,081,213$

53

Customer

At January 1, 2014 Trademarks Patents Goodwill Relationship Others Total

Cost 413,165$ 1,045,014$ 6,906,772$ 3,784,422$ 1,381,174$ 13,530,547$

Accumulated depreciation and impairment 3,567)( 840,984)( - 1,280,410)( 547,710)( 2,672,671)(

409,598$ 204,030$ 6,906,772$ 2,504,012$ 833,464$ 10,857,876$

2014

Opening net book amount 409,598$ 204,030$ 6,906,772$ 2,504,012$ 833,464$ 10,857,876$

Additions - acquired separately - 224 - - 128,341 128,565

Additions - acquired through business combinations - - 537 - - 537

Reclassifications - 1,006)( - - 1,006 -

Amortization 1,646)( 99,290)( - 202,013)( 190,738)( 493,687)(

Net exchange differences - 224 3,478 4,045 149)( 7,598

Closing net book amount 407,952$ 104,182$ 6,910,787$ 2,306,044$ 771,924$ 10,500,889$

At June 30, 2014

Cost 413,165$ 1,000,306$ 6,910,787$ 3,785,816$ 1,368,005$ 13,478,079$

Accumulated depreciation and impairment 5,213)( 896,124)( - 1,479,772)( 596,081)( 2,977,190)(

407,952$ 104,182$ 6,910,787$ 2,306,044$ 771,924$ 10,500,889$

54

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

B. The Group bought registered or under-application trademarks rights such as ,

, VIVITEK, 麗訊 , and . Trademarks registered in

certain countries are assessed to have finite useful lives. The remaining trademarks which have

indefinite useful lives shall not be amortized but are tested for impairment annually.

C. Goodwill and trademarks with indefinite useful lives are allocated as follows to the Group’s

cash-generating units identified according to operating segment:

Acquisition prices in business combination are calculated by the price of acquisition and direct

costs for related acquisition. The amount of goodwill recognised is the difference of the

acquisition prices less net fair value of identifiable assets acquired. The amortisation duration

of acquisition price may not exceed one year after the acquisition.

2015 2014

Operating costs 528$ 5,233$

Selling expenses 274,888 54,659

Administrative expenses 15,004 33,870

Research and development expenses 77,753 143,272

368,173$ 237,034$

2015 2014

Operating costs 6,712$ 11,289$

Selling expenses 384,330 145,397

Administrative expenses 50,323 83,926

Research and development expenses 160,861 253,075

602,226$ 493,687$




Goodwill:

Cyntec and its 5,124,137$ 5,124,137$ 5,124,137$

subsidiaries

DGC 1,789,182 1,834,985 1,731,495

Eltek 5,568,655 - -

Others 94,841 31,315 55,155

12,576,815$ 6,990,437$ 6,910,787$

Trademarks:

Smart green life

business 386,823$ 386,823$ 386,823$

55

D. Goodwill and trademarks with indefinite useful lives are allocated to the Group’s

cash-generating units identified according to operating segment. The recoverable amount of all

cash-generating units has been determined based on value-in-use calculations. These

calculations use pre-tax cash flow projections based on financial budgets approved by the

management covering a five-year period.

The recoverable amount of all cash-generating units calculated using the value-in-use exceeded

their carrying amount, so goodwill and indefinite useful lives trademarks were not impaired.

The key assumptions used for value-in-use calculations are gross margin, growth rate and

discount rate.

Management determined budgeted gross margin based on past performance and its

expectations of market development. The weighted average growth rates used are consistent

with the forecasts included in industry reports. The discount rates used are pre-tax and reflect

specific risks relating to the relevant operating segments.

E. The subsidiary – Ayecom Technology Co., Ltd. was merged into Delta Networks., Ltd. (Taiwan)

starting from the effective date of consolidation of January 1, 2015. The Group has assessed

and recognised impairment loss on goodwill and customer relationship of $28,435 for the year

ended December 31, 2014.

(13) Other non-current assets

(14) Short-term borrowings

As the subsidiary, Eltek Power System As, violated the borrowing contract with Nordea, the bank

required that the borrowing of $4,182,087 be repaid on September 1, 2015. Accordingly, said

amount is disclosed as short-term borrowing.


Long-term prepaid rent 1,250,962$ 1,296,245$ 1,211,989$

Prepayments for business

facilities 1,065,517 1,030,137 1,124,560

Guarantee deposits paid 152,376 121,209 146,347

Cash surrender value of life

insurance 102,057 111,650 114,607

Others 134,511 100,187 154,142

2,705,423$ 2,659,428$ 2,751,645$


Unsecured bank loans 12,172,321$ 5,801,298$ 5,778,802$

Credit lines 85,887,672$ 83,349,486$ 86,061,884$

Interest rate per annum 0.53%~2.97% 0.53%~2.16% 0.43%~2.16%

56

(15) Financial liabilities at fair value through profit or loss

A. The Group recognized net gain (loss) of $9,807, $16,667, $20,172 and ($1,208) for the

three-month and six-month periods ended June 30, 2015 and 2014, respectively.

B. The non-hedging derivative instruments transaction and contract information are provided in

Note 6(2)C.

The Group entered into forward exchange contracts to manage exposures to foreign exchange

rate fluctuations of import or export sales. However, these transactions did not meet all the

criteria for hedge accounting. Therefore, the Group did not apply the hedge accounting.

(16) Long-term borrowings

As of June 30, 2015, the revolving loans of $20,818,373 can be drawn down during the period

from February 25, 2011 to July 29, 2017 and are payable before the due date under the agreement.

(17) Pensions

A. a) The Group has a defined benefit pension plan as follows:

i. 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 contributes monthly an amount equal to 2% of the employees’

monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the

trustee, under the name of the independent retirement fund committee.


Current item:

Valuation adjustment of non-

hedging derivatives 13,948$ 51,606$ 3,652$

Type of borrowings June 30, 2015 December 31, 2014 June 30, 2014

Credit loans 20,861,732$ 26,520,214$ 6,627,999$

Less: Current portion (shown

as other current liabilities) 43,359)( 52,111)( 58,839)(

20,818,373$ 26,468,103$ 6,569,160$

Credit lines 45,416,242$ 33,894,214$ 32,844,176$

Interest rate per annum 0.43%~0.83% 0.43%~0.90% 0.42%~0.79%

57

ii. Certain subsidiaries located in Mainland China maintain defined benefit retirement

(resignation) plans with relative contribution scheme. The employees and the

subsidiaries contribute an amount relatively based on a certain percentage of the monthly

basic salary depending on the employee’s position. When an employee retires or resigns,

the total contribution from the employee is reimbursed based on the accumulated

contribution (without interest) less withdrawals made by the employee in advance during

the service period. The employee is also entitled to receive benefits calculated based on

the accumulated contribution (without interest) from the related subsidiary multiplied by

the approved benefit percentage for the employee’s service years less withdrawals made

by the employee in advance during the service period. The scheme mentioned above

ceased on August 1, 2014. The amount contributed before was archived, and the scheme

of payment was not changed.

b) For the aforementioned pension plan, the Group recognised pension costs of $26,970,

$49,579, $54,683 and $88,408 for the three-month periods ended June 30, 2015 and 2014,

and six-month periods ended June 30, 2015 and 2014, respectively.

c) Expected contributions to the defined benefit pension plans of the Group for the year ended

December 31, 2015 are $54,156.

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, 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. The pension costs under the defined contribution pension plans of the

Company and its domestic subsidiaries for the three-month and six-month periods ended

June 30, 2015 and 2014 were $70,479, $65,237, $140,348 and $130,191, respectively.

b) Other overseas companies have defined contribution plans in accordance with the local

regulations.

(18) Share-based payment

A. NEM’s share-based payment transactions

a) For the six-month periods ended June 30, 2015 and 2014, NEM’s share-based payment

transactions are set forth below:

58

Type of Grant Quantity Contract

arrangement date granted period Vesting conditions

First employee 2009.11.25 572,600 8 years Two years’ service vested 50%;

stock options three years’ service vested 75%;

compensation plan four years’ service vested 100%

Second 2010.04.30 590,000 8 years 〃

employee stock

options

compensation plan

Third employee 2010.12.21 388,000 8 years 〃

stock options

compensation plan

Fourth employee 2011.12.21 1,299,400 8 years 〃

stock options

compensation plan

Fifth employee 2012.12.10 847,000 8 years 〃

stock options

compensation plan

Sixth employee 2013.03.11 155,000 8 years 〃

stock options

compensation plan

Seventh employee 2013.07.29 40,000 8 years 〃

stock options

compensation plan

Eighth employee 2013.10.28 65,000 8 years 〃

stock options

compensation plan

Ninth employee 2014.04.29 1,433,600 8 years 〃

stock options

compensation plan

59

b) Details of the employee stock options compensation plan of NEM are set forth below:

c) The expiry date and exercise price of stock options outstanding at balance sheet date are as

follows:

Weighted- Weighted-

average average

No. of exercise price No. of exercise price

shares (in dollars) shares (in dollars)

Options outstanding at 2,885,000 10$ 2,623,400 10$

beginning of the period

Options granted - - 1,433,600 10

Options exercised - - - -

Options forfeited 1,478,000)( 10 542,000)( 10

Options outstanding at

end of the period 1,407,000 10$ 3,515,000 10$

Options exercisable at

end of the period 446,800 795,200


2015 2014

Exercise Exercise

Issue date No. of price No. of price

approved Expiry date shares (in dollars) shares (in dollars)

2009.11.25 2017.11.24 2,000 10$ 157,000 10$

2010.04.30 2018.04.29 25,000 10 125,000 10

2010.12.21 2018.12.20 68,000 10 288,000 10

2011.12.21 2019.12.20 154,400 10 194,400 10

2012.12.10 2020.12.09 357,000 10 582,000 10

2013.03.11 2021.03.10 115,000 10 155,000 10

2013.07.29 2021.07.28 - 10 40,000 10

2013.10.28 2021.10.27 25,000 10 65,000 10

2014.04.29 2022.04.28 660,600 10 1,278,600 10

June 30, 2015 Deccember 31, 2014

60

d) The fair value of employee stock options of NEM granted on grant date is measured using

the Black-Scholes option-pricing model. Relevant information is as follows:

Note: Expected price volatility rate was estimated by using the stock prices of the most

recent period with length of this period approximate to the length of the stock

options’ expected life, and the standard deviation of return on the stock during this

period.

Exercise

Issue date No. of price

approved Expiry date shares (in dollars)

2009.11.25 2017.11.24 217,000 10$

2010.04.30 2018.04.29 125,000 10

2010.12.21 2018.12.20 288,000 10

2011.12.21 2019.12.20 474,400 10

2012.12.10 2020.12.09 717,000 10

2013.03.11 2021.03.10 155,000 10

2013.07.29 2021.07.28 40,000 10

2013.10.28 2021.10.27 65,000 10

2014.04.29 2022.04.28 1,433,600 10

June 30, 2014

Expected

Stock Exercise price Exercise Risk-free Fair value

Type of Grant price (in price (in volatility option Expected interest per unit

arrangement date dollars) dollars) (Note) life dividends rate (in dollars)

First 2009.11.25 3.49$ 10$ 55.50% 5.375 years 0% 1.25% 0.8315$

Second 2010.04.30 5.27 10 51.68% 5.38 years 0% 1.30% 1.5746

Third 2010.12.21 6.87 10 48.62% 5.38 years 0% 1.13% 2.3217

Fourth 2011.12.21 4.81 10 50.18% 5.38 years 0% 1.09% 1.2495

Fifth 2012.12.10 2.85 10 47.48% 5.38 years 0% 0.99% 0.3621

Sixth 2013.03.11 2.79 10 49.57% 5.38 years 0% 1.19% 0.3984

Seventh 2013.07.29 1.44 10 47.81% 5.38 years 0% 1.23% 0.0707

Eighth 2013.10.28 1.46 10 46.28% 5.38 years 0% 1.31% 0.0632

Ninth 2014.04.29 0.23 10 43.34% 5.38 years 0% 1.17% 0.0001

61

B. Expenses incurred on share-based payment transactions are shown below:

(19) Share capital

A. In accordance with the Company’s Articles of Incorporation, the total authorized common

stock is 2.7 billion shares (including 100 million shares for stock warrants conversion). As of

June 30, 2015 and 2014, the total issued and outstanding common stock was both 2,437,543

thousand shares with par value of $10 (in dollars) per share.

B. On December 20, 2004, the Board of Directors of the Company adopted a resolution that

allowed certain stockholders to issue 16 million units of global depository receipts (GDRs),

represented by 80 million shares of common stock (Deposited Shares), with one unit of GDR

representing 5 shares of common stock. After obtaining approval from SFB, these GDRs were

listed on the Securities Exchange of Luxembourg, with total proceeds of US$134,666 thousand.

The issuance of GDRs was represented by outstanding shares, therefore, there is no dilutive

effect on the common shares’ equity. The main terms and conditions of the GDRs are as

follows:

a. Voting rights

GDR holders may, pursuant to the Depositary Agreement and the relevant laws and

regulations of the R.O.C., exercise the voting rights pertaining to the underlying common

shares represented by the GDRs.

b. Redemption of GDRs

For sales and redemption of the underlying common shares represented by the GDRs when

the holders of the GDRs request the Depositary to redeem the GDRs in accordance with the

relevant R.O.C. regulations and the provisions in the Depositary Agreement, the Depositary

may (i) deliver the underlying common shares represented by the GDRs to the GDR

holders, or (ii) sell the underlying common shares represented by the GDRs in the R.O.C.

stock market on behalf of the GDR holder. The payment of proceeds from such sale shall be

made subject to the relevant R.O.C. laws and regulations and the provisions in the

Depositary Agreement.

2015 2014

Equity-settled -$ 158$

Cash-settled - -

-$ 158$

2015 2014

Equity-settled -$ 316$

Cash-settled - -

-$ 316$



62

c. Distribution of dividends, preemptive rights and other rights

Distribution of dividends, preemptive rights and other rights and interests of GDR units

bear the same rights as common shares.

d. After considering the stock dividend distribution year by year, as of June 30, 2015, there

were 1,099 thousand units outstanding, representing 5,494 thousand common shares of the

Company’s common stock.

(20) Capital surplus

Pursuant to the R.O.C. Company Law, capital surplus arising from paid-in capital in excess of par

value on issuance of common stocks and donations can be used to cover accumulated deficit or to

issue new stocks or cash to shareholders in proportion to their share ownership, provided that the

Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Law requires

that the amount of capital surplus to be capitalised 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.

(21) Retained earnings

A. Under the Company’s Articles of Incorporation approved by the shareholders on June 10, 2015,

the current year’s earnings, if any, shall be distributed in the following order:

a. Payment of all taxes and dues.

b. Offset against prior years' operating losses, if any.

c. Set aside 10% of the remaining amount as legal reserve, unless the accumulated amount of

the legal reserve has reached the total authorized capital of the Company.

d. Setting aside or reversing a special reserve according to relevant regulations when

necessary.

e. The amount of distributable earnings after deducting items a, b, c and d is considered as the

distributable earnings for the year, and the appropriation is as follows:

(a) Directors' remuneration: up to 1% of the earnings.

(b) Employees' bonus: at least 3% of the earnings. The Company can issue the employee

stock bonus to qualified employees of subsidiaries. The related regulations should be

authorized by the Company’s Board of Directors or authorized person.

(c) Stockholders' bonus: The remainder along with beginning unappropriated earnings is

accumulated distributable earnings. As the Company is in the growth stage, and taking

into consideration of shareholders’ interest, financial health and business development,

the amount of bonus distributed to shareholders shall be no less than 60% of the

distributable earnings for the year. Cash dividends shall not be less than 15% of the

bonus distributed to shareholders.

63

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 Company 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 appropriations of 2014 and 2013 earnings had been approved by the shareholders during

their meeting on June 10, 2015 and June 10, 2014, respectively. Details are summarized below:

Note A: The shareholders during their meeting had approved to distribute employees’ cash

bonuses of $2,893,928 and directors’ and supervisors’ remuneration of $32,900.

Note B: The shareholders during their meeting had approved to distribute employees’ cash

bonuses of $2,492,438 and directors’ and supervisors’ remuneration of $30,400.

The appropriations of 2014 earnings had been resolved during the shareholders’ meeting.

Therefore, the consolidated financial statements had reflected the dividends payable.

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.

Dividends Dividends

Amount per share Amount per share

(Note A) (in dollars) (Note B) (in dollars)

Appropriation for legal 2,069,890$ 1,777,620$

reserve

Reversal of special reserve 527,556)( 3,546,949)(

Cash dividends 16,331,540 6.7$ 14,137,751 5.8$

Years ended December 31,

2014 2013

64

(22) Non-controlling interest

Decrease in non-controlling interests for certain subsidiaries for the six-month periods ended June 30,

2015 and 2014 is caused by distribution of cash dividends to minority shareholders’ interests.

(23) Operating revenue

(24) Operating cost

2015 2014

At January 1 12,746,960$ 14,226,550$Share attributable to non-controlling

interest:

Profit for the period 811,255 848,247

Currency translation differences 118,291)( 340,671)(Unrealised (loss) gain on valuation of

available-for-sale financial assets 12)( 33Decrease in non-controlling

interest 3,486,244)( 693,783)(

At June 30 9,953,668$ 14,040,376$


2015 2014

Sales revenue 48,096,423$ 46,939,324$

Service revenue 367,710 284,365

Other operating revenue 268,154 392,599

48,732,287$ 47,616,288$

2015 2014

Sales revenue 90,804,148$ 89,512,772$

Service revenue 604,188 483,696

Other operating revenue 526,936 655,416

91,935,272$ 90,651,884$



2015 2014

Cost of sales 35,085,599$ 34,091,166$

Cost of services 312,134 201,432

Other operating costs 180,109 260,830

35,577,842$ 34,553,428$


65

(25) Other income

(26) Other gains and losses

2015 2014

Cost of sales 66,726,567$ 65,356,414$

Cost of services 478,452 314,820

Other operating costs 343,570 480,406

67,548,589$ 66,151,640$


2015 2014

Interest income 180,386$ 266,822$

Rental income 83,417 82,726

Others 564,522 409,500

828,325$ 759,048$

2015 2014

Interest income 338,637$ 509,694$

Rental income 169,382 165,964

Others 976,445 895,758

1,484,464$ 1,571,416$



2015 2014

(Loss) gain on financial assets (liabilities)

at fair value through profit or loss44,891)($ 34,898$

Net currency exchange gain (loss) 72,651 19,946)(

(Loss) gain on disposal of investments 162,971)( 133,741Gain on disposal of property, plant

and equipment 36,603 8,096

Miscellaneous disbursements 141,399)( 154,652)(

240,007)($ 2,137$

2015 2014

Gain on financial assets (liabilities) at fair value

through profit or loss49,683$ 20,596$

Net currency exchange gain (loss) 129,764 4,462)(

(Loss) gain on disposal of investments 240,990)( 119,430Gain (loss) on disposal of property, plant and

equipment 13,056 9,503)(

Miscellaneous disbursements 274,390)( 317,212)(

322,877)($ 191,151)($



66

(27) Finance costs

(28) Expenses by nature

2015 2014

Interest expense 130,481$ 28,072$

Gain on effective cash flow hedges

reclassified from equity to profit or loss - 2,209

Fair value hedges 612,693)( -

Fair value adjustments for hedged items

of foreign exchange risk 612,693 -

130,481$ 30,281$

2015 2014

Interest expense 187,561$ 65,463$

Loss on effective cash flow hedges

reclassified from equity to profit or loss - 3,474)(

187,561$ 61,989$



2015 2014

Changes in inventories of finished goods

and work in process, raw materials and

consumables used 25,832,657$ 26,719,484$

Employee benefit expense 8,668,454 7,334,781

Depreciation charges on property, plant

and equipment 1,665,683 1,481,691

Amortisation charges on intangible assets 368,173 237,034

Transportation expenses 553,837 447,182

Advertising costs 274,541 240,153

Operating lease payments 132,482 62,257

Other expenses 6,493,112 5,110,780

Total cost of sales and operating expenses 43,988,939$ 41,633,362$


67

(29) Employee benefit expense

A. According to the Articles of Incorporation of the Company, when distributing earnings, the

Company shall distribute bonus to the employees and pay remuneration to the directors and

supervisors that account for at least 3% and 1%, respectively, of the total distributed amount.

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

2015 2014

Changes in inventories of finished goods 47,791,508$ 48,379,651$

and work in process, raw materials and

consumables used

Employee benefit expense 16,594,253 14,742,773

Depreciation charges on property, plant

and equipment 3,287,402 3,196,794

Amortisation charges on intangible assets 602,226 493,687

Transportation expenses 946,650 804,521

Advertising costs 503,472 436,060

Operating lease payments 199,502 127,575

Other expenses 12,997,549 11,382,399

Total cost of sales and operating expenses 82,922,562$ 79,563,460$


2015 2014

Wages and salaries 6,673,856$ 5,419,878$

Employees' bonuses 719,915 939,443

Compensation cost of employee stock options - 158

Labor and health insurance fees 729,858 641,501

Pensions costs 124,925 116,182

Other personnel expenses 419,900 217,619

8,668,454$ 7,334,781$

2015 2014

Wages and salaries 12,691,955$ 11,061,408$

Employees' bonuses 1,485,563 1,749,557

Compensation cost of employee stock options - 316

Labor and health insurance fees 1,440,004 1,240,774

Pensions costs 233,208 236,605

Other personnel expenses 743,523 454,113

16,594,253$ 14,742,773$



68

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' meeting.

Qualification requirements of employees, including the employees of subsidiaries of the

company meeting certain specific requirements, entitled to receive aforementioned stock or

cash may be specified in the Articles of Incorporation. The Company has not revised its

Articles of Incorporation in accordance with the amended Company Act before the issuance of

these financial statements, thus, the distribution is based on the original Articles of

Incorporation.

B. For the three-month and six-month periods ended June 30, 2015 and 2014, employees’

remuneration (bonus) was accrued at $756,673, $939,443, $1,485,563 and $1,749,557,

respectively; while directors’ and supervisors’ remuneration was accrued at $8,226, $7,600,

$16,452 and $15,654, respectively. The aforementioned amounts were recognized in salary

expenses. The expenses recognised for the year of 2015 and 2014 were accrued based on the

net income for 2015 and 2014 and the percentage specified in the Articles of Incorporation of

the Company, taking into account other factors such as legal reserve.

(30) Income tax

A. Income tax expense

(a) Components of income tax expense:

2015 2014

Current tax:

Current tax on profits for the period 1,380,194$ 1,346,304$

Adjustments in respect of prior years 399,198)( 100,201)(

Total current tax 980,996 1,246,103

Deferred tax:

Origination and reversal of temporary

differences 319,560 27,725)(

Origination and reversal of loss

carryforward 7,578)( -

Total deferred tax 1,292,978$ 1,218,378$


69

(b) The income tax (charge)/credit relating to components of other comprehensive income is asfollows:

B. The status of the Company and its domestic subsidiaries’ assessed and approved income tax

returns are as follows:

2015 2014

Current tax:

Current tax on profits for the period 2,785,702$ 2,371,793$

Adjustments in respect of prior years 601,463)( 100,011)(

Total current tax 2,184,239 2,271,782

Deferred tax:

Origination and reversal of temporary

differences 66,291)( 66,277)(

Origination and reversal of loss

carryforward - -

Total deferred tax 2,117,948$ 2,205,505$


2015 2014

Fair value gain on available-for-sale

financial assets 20)($ 40$

Currency translation differences 188,801)( 212,912)(

Remeasurement of defined benefit

obligations - -

Cash flow hedges - 2,058

188,821)($ 210,814)($

2015 2014

Fair value gain on available-for-sale

financial assets 31)($ 88$

Currency translation differences 276,881)( 99,503)(

Remeasurement of defined benefit

obligations - -

Cash flow hedges - 3,308)(

276,912)($ 102,723)($



Latest year assessed by Tax Authority

The Company, Cyntec, DNIT and Vitor 2012

Delta Capital, NEM, AMT, DelBio, DGL and SYN-TKE 2013

70

C. Unappropriated retained earnings:

D. The balance of the imputation tax credit account and the creditable tax rate are as follows:

(31) Earnings per share


Earnings generated in

and before 1997 685,952$ 685,952$ 685,952$

Earnings generated in

and after 1998 22,670,883 32,893,351 21,969,593

23,356,835$ 33,579,303$ 22,655,545$


Imputation tax credit

account balance 496,394$ 496,394$ 622,787$

2014 (Estimated) 2013 (Actual)

Creditable tax ratio 1.49% 2.80%

Weighted average

number of

ordinary shares

Amount outstanding

after tax (shares in thousands)

Basic earnings per share

Profit attributable to ordinary shareholders

of the parent 3,794,616$ 2,437,543

Diluted earnings per share

Profit attributable to ordinary shareholders -$ 2,437,543

of the parent

Assumed conversion of all dilutive

potential ordinary shares:

Employees' bonus - 11,621

Profit attributable to ordinary

shareholders of the parent plus

assumed conversion of all dilutive

potential ordinary shares 3,794,616$ 2,449,164

Three-month period ended June 30, 2015

71

Weighted average

number of

ordinary shares Earnings

Amount outstanding per share

after tax (shares in thousands) (in dollars)



shareholders of the parent 5,265,494$ 2,437,543 2.16$


Profit attributable to ordinary shareholders

of the parent 5,265,494$ 2,437,543Assumed conversion of all dilutive






potential ordinary shares 5,265,494$ 2,454,212 2.15$

Weighted average

number of





Profit attributable to ordinary 7,660,320$ 2,437,543 3.14$

shareholders of the parent


Profit attributable to ordinary -$ 2,437,543











72

(32) Business combinations

A. Business combination transactions of the Group for the six-month periods ended June 30, 2015

and 2014 are as follows:

(a) On April 8, 2014, the Group acquired 100% share ownership in Vivitek-TW from Luxeon

International Holding Limited for cash of $135,083.

(b)On January 1, 2015, the Group acquired 100% share ownership in Vitor for cash of $79,575.

As of June 30, 2015, $70,075 had been paid.

(c) The Group acquired 100% share ownership in Eltek for a cash consideration of

$15,223,268 (approximately NOK$3.87 billion) on May 1, 2015.

B. Consideration paid for acquisition of the abovementioned subsidiaries and fair value

information of assets acquired and liabilities assumed from the acquisition on the acquisition

date are as follows:

Weighted average

number of





Profit attributable to ordinary 9,835,782$ 2,437,543 4.04$



Profit attributable to ordinary 9,835,782$ 2,437,543










73

C. Starting from the acquisition of share ownership in Vitor and Eltek, the operating revenue and

profit before tax included in the consolidated statements of comprehensive income and

contributed by Vitor and Eltek amounted to $2,893,304 and $174,165, respectively. Had Vitor

and Eltek been consolidated from January 1, 2014, the consolidated statement of

comprehensive income would show operating revenue and profit before income tax as follows:

(33) Supplemental cash flow information

Financing activities with no cash flow effects:

2015 2014

Purchase consideration

Cash 15,302,843$ 135,083$Non-controlling interest’s

proportionate share of the recognised

amounts of acquiree’s identifiable net

assets 79,049 -

15,381,892 135,083

Fair value of the identifiable assets

acquired and liabilities assumed

Cash 1,240,218 134,734

Other current assets 6,675,104 360

Property, plant and equipment 1,039,612 -

Intangible assets 8,212,364 -

Other non-current assets 1,540,952 197

Current liabilities 4,975,545)( 745)(

Non-current liabilities 3,915,507)( -

Total identifiable net assets 9,817,198 134,546

Goodwill 5,564,694$ 537$


2015 2014

Operating revenue 97,074,867$ 95,560,109$

Profit before income tax 11,633,065 13,303,185


2015 2014

Cash dividends declared but not yet paid 16,354,638$ 15,015,503$


74

7. RELATED PARTY TRANSACTIONS

(1) Significant transactions and balances with related parties

A. Sales of goods

The sales terms, including prices and collections, were negotiated based on cost, market,

competitors and other factors.

B. Purchases of goods:

The purchase terms, including prices and payments, were negotiated based on cost, market,

competitors and other factors.

2015 2014

Sales of goods:

Associates 1,382,936$ 968,798$

Others 333,703 288,503

1,716,639$ 1,257,301$

2015 2014

Sales of goods:

Associates 2,460,637$ 1,846,180$

Others 629,705 455,969

3,090,342$ 2,302,149$



2015 2014

Purchases of goods:

Associates 137,961$ 134,041$

Others 113,780 18,488

251,741$ 152,529$

2015 2014

Purchases of goods:

Associates 263,420$ 331,847$

Others 131,040 21,599

394,460$ 353,446$



75

C. Period-end balances arising from sales of goods:

The receivables from related parties arise mainly from sales transactions. The receivables are

due 60~90 days after the date of sale. The receivables are unsecured in nature and bear no

interest. There are no provisions held against receivables from related parties.

D. Period-end balances arising from purchases of goods:

The payables to related parties arise mainly from purchase transactions and are due 70 days

after the date of purchase. The payables bear no interest.

E. Period-end balances arising from other transactions:

The above pertain mainly to dividend and advance payments.

(2) Key management compensation


Receivables from related

parties:

Associates 1,314,498$ 985,685$ 890,229$

Others 330,206 274,417 287,289

1,644,704$ 1,260,102$ 1,177,518$


Associates 207,495$ 225,241$ 256,477$

Others 126,788 19,572 12,938

334,283$ 244,813$ 269,415$

Payables to related parties:


Other receivables-related

parties

Associates 20,120$ 40,790$ 24,788$

Others 1,137 2,717 2,884

21,257$ 43,507$ 27,672$

2015 2014

Salaries and other short-term employee

benefits 86,101$ 121,155$

2015 2014

Salaries and other short-term employee

benefits 202,221$ 228,519$



76

8. PLEDGED ASSETS

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

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

(1) Contingencies

None.

(2) Commitments

A. Capital commitments

Capital expenditures contracted for at the balance sheet date but not yet incurred are as follows:

B. Operating lease commitments

The future aggregate minimum lease payments under non-cancellable operating leases are as

follows:

10. SIGNIFICANT DISASTER LOSS

None.

June 30, December 31, June 30,

Pledged assets 2015 2014 2014 Pledge purpose

Demand deposits and time

deposits (shown as other

assets - current and

non-current)

184,255$ 3,000$ 5,414$ Collateral for customs

duties and other

guarantee deposits

Time deposits

(shown as other current 143,720 160,769 47,186Performance bonds and

land lease327,975$ 163,769$ 52,600$

Book value

June 30, 2015 December 31, 2014

Property, plant and equipment 473,274$ 571,260$

June 30, 2015 December 31, 2014

Not later than one year 192,119$ 107,460$

Later than one year but not 780,108 178,419

later than five years

Later than five years 284,241 102,221

1,256,468$ 388,100$

77

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

On May 15, 2015, the Board of Directors has resolved for the Company’s subsidiary, DEN, to invest

USD$22 million in the capital increase of Delta America Ltd. (DAL). After the share transfer on July

2, 2015, the Company’s combined shareholding ratio became 50.21%.

12. OTHERS

(1) Capital risk management

The Group’s objectives (including disposal groups held for sale) when managing capital are to

maintain an integrity credit rating and good capital structure to support operating and maximum

stockholders’ equity.

(2) Financial instruments

A. Fair value information of financial instruments

The fair value of financial instruments measured at amortized cost (including notes receivable,

accounts receivable (including related parties), other receivables (including related parties),

short-term loans, notes payable, accounts payable (including related parties) and other

payables) are based on their book value as book value is approximate to fair value. The fair

value of long-term loans (including current portion) is based on book value as their interest

rate is approximate to market interest rate. The fair value information of financial instruments

measured at fair value is provided in Note 12(3).

B. Financial risk management policies

The Group’s activities expose it to a variety of financial risks: market risk (including foreign

exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Group’s

overall risk management programme focuses on the unpredictability of financial markets and

seeks to minimise potential adverse effects on the Group’s financial position and financial

performance. The Group uses derivative financial instruments to hedge certain risk exposures

(see Notes 6(2), 6(5) and 6(15)).

C. Significant financial risks and degrees of financial risks

a) Market risk

Foreign exchange risk

i. The Group operates internationally and is exposed to foreign exchange risk arising from

various currency exposures, primarily with respect to the USD, RMB and EUR.

Foreign exchange risk arises from future commercial transactions, recognised assets and

liabilities and net investments in foreign operations.

ii. Management has set up a policy to require group companies to manage their foreign

exchange risk against their functional currency. The group companies are required to

78

hedge their entire foreign exchange risk exposure with the Group treasury. To manage

their foreign exchange risk arising from future commercial transactions and recognised

assets and liabilities, entities in the Group use forward foreign exchange contracts,

transacted with Group treasury.

iii. The Group adopts the derivative financial instruments like forward exchange contracts /

forward exchange transactions, etc. to hedge the fair value risk and cash flow risk due to

foreign exchange rate fluctuations. The Group monitors at any time and pre-sets a “stop

loss” amount to limit its foreign exchange risk.

iv. The Group’s businesses involve some non-functional currency operations (the

Company’s and certain subsidiaries’ functional currency: NTD; other certain subsidiaries’

functional currency: USD and RMB). The information on assets and liabilities

denominated in foreign currencies whose values would be materially affected by the

exchange rate fluctuations is as follows:

Foreign currency

amount Exchange Book value

(Foreign currency: Functional currency) (in thousands) rate (NTD)

Financial assets

Monetary items

USD：NTD 344,682$ 30.8600 10,636,882$

USD：RMB (Note) 373,424 6.2055 11,523,836

RMB：USD (Note) 911,662 0.1611 4,532,368

BRL：NOK (Note) 110,748 2.5244 1,093,817

EUR：NOK (Note) 202,051 8.8079 6,962,690

GBP：NOK (Note) 53,774 12.3914 2,606,974

USD：NOK (Note) 286,260 7.8877 8,833,969

Non-monetary items

RMB：USD (Note) 7,064,114$ 0.1611 35,158,220$

NTD：USD (Note) 2,133,568 0.0324 2,133,568

USD：NTD 3,486,520 30.8600 107,594,014

THB：NTD 7,096,658 0.9188 6,520,409

THB：USD (Note) 325,414)( 0.0298 298,990)(

Financial liabilities

Monetary items

USD：NTD 277,116$ 30.8600 8,551,794$

USD：RMB (Note) 543,629 6.2055 16,776,365

RMB：USD (Note) 1,376,240 0.1611 6,842,040

June 30, 2015

79

Note: Certain consolidated entities’ functional currency is not NTD. Therefore, the Group

shall consider these items when disclosing the above information. When a subsidiary’s

functional currency is RMB, it shall also consider its USD foreign currency position.

Foreign currency



Financial assets

Monetary items

USD : NTD 333,368$ 31.6500 10,551,109$

USD : RMB (Note) 439,811 6.2156 13,941,537

RMB : USD (Note) 900,511 0.1611 4,592,520

Non-monetary items

RMB : USD (Note) 8,990,047$ 0.1611 45,848,339$

NTD : USD (Note) 2,016,062 0.0316 2,016,062

USD : NTD 3,241,478 31.6500 102,592,789

THB : NTD 6,396,665 0.9670 6,185,575

THB : USD (Note) 259,166 0.0306 250,614


Monetary items

USD : NTD 303,767$ 31.6500 9,614,220$

USD : RMB (Note) 443,890 6.2156 14,070,834

RMB : USD (Note) 1,474,719 0.1611 7,520,925

December 31, 2014

80




Foreign currency



Financial assets

Monetary items

USD : NTD 329,454$ 29.8650 9,839,152$

USD : RMB (Note) 462,023 6.2009 13,798,312

RMB : USD (Note) 913,802 0.1613 4,401,051

Non-monetary items

RMB : USD (Note) 8,963,594$ 0.1613 43,170,463$

NTD : USD (Note) 2,018,155 0.0335 2,018,155

USD : NTD 2,960,262 29.8650 88,408,219

THB : NTD 6,192,837 0.9256 5,732,090

THB : USD (Note) 255,488 0.0310 236,480


Monetary items

USD : NTD 315,390$ 29.8650 9,419,133$

USD : RMB (Note) 414,338 6.2009 12,374,191

RMB : USD (Note) 1,272,211 0.1613 6,127,222

June 30, 2014

81

v. Please refer to the following table for the details of unrealised exchange gain (loss) arising

from significant foreign exchange variation on the monetary items held by the Group.

Note: These are the subsidiaries’ functional currencies. Certain consolidated entities’

functional currency is not NTD. Therefore, the Group shall consider these items when

disclosing the above information. When a subsidiary’s functional currency is RMB, it

shall also consider its USD foreign currency position.





(Foreign currency:Foreign currency

amount Exchange

Functional currency) (in thousands) rate Book value

Financial assetsMonetary items

USD：NTD -$ 30.8600 52,556$

USD：RMB (Note) 2,563 6.2055 12,978RMB：USD (Note) 455)( 0.1613 14,330)(


Monetary items

USD：NTD -$ 30.8600 39,568)($

USD：RMB (Note) 6,482)( 6.2055 32,013)(

RMB：USD (Note) 82 0.1613 3,093


Exchange gain (loss)

(Foreign currency:Foreign currency

amount Exchange

Functional currency) (in thousands) rate Book value

Financial assets

Monetary items

USD：NTD -$ 29.8650 109,623)($

USD：RMB (Note) 8,747)( 6.2009 42,672)(

RMB：USD (Note) 2,592 0.1613 78,464


Monetary items

USD：NTD -$ 29.8650 94,676$

USD：RMB (Note) 1,487 6.2009 7,487

RMB：USD (Note) 907)( 0.1613 26,550)(

Three-month period ended June 30, 2014Exchange gain (loss)

82









Foreign currency

amount Exchange

(Foreign currency: (in thousands) rate Book value

Functional currency)

Financial assets

Monetary items

USD : NTD -$ 30.8600 11,939$

USD : RMB (Note) 510)( 6.2055 2,536)(

RMB : USD (Note) 215 0.1613 6,634


Monetary items

USD : NTD -$ 30.8600 6,857$

USD : RMB (Note) 2,246)( 6.2055 10,623)(

RMB : USD (Note) 1,166)( 0.1613 35,983)(



Foreign currency

amount Exchange

(Foreign currency: (in thousands) rate Book value

Functional currency)

Financial assets

Monetary items

USD : NTD -$ 29.8650 31,445)($

USD : RMB (Note) 2,524)( 6.2009 12,158)(

RMB : USD (Note) 844 0.1613 25,206


Monetary items

USD : NTD -$ 29.8650 39,487$

USD : RMB (Note) 2,272)( 6.2009 10,944)(

RMB : USD (Note) 1,815)( 0.1613 54,205)(



83







(Foreign currency: Extent of Effect on Effect on

Functional currency) variation profit or loss comprehensive income

Financial assets

Monetary items

USD : NTD 1% 106,369$ -$

USD : RMB (Note) 1% 115,238 -

RMB : USD (Note) 1% 45,374 -

BRL : NOK (Note) 1% 10,938 -

EUR : NOK (Note) 1% 69,627 -

GBP : NOK (Note) 1% 26,070 -

USD : NOK (Note) 1% 88,340 -


Monetary items

USD : NTD 1% 85,518$ -

USD : RMB (Note) 1% 167,764 -

RMB : USD (Note) 1% 68,240 -


Sensitivity analysis

(Foreign currency: Extent of Effect on Effect on

Functional currency) variation profit or loss comprehensive income

Financial assets

Monetary items

USD : NTD 1% 98,392$ -$

USD : RMB (Note) 1% 137,983 -

RMB : USD (Note) 1% 44,011 -


Monetary items

USD : NTD 1% 94,191$ -

USD : RMB (Note) 1% 123,742 -

RMB : USD (Note) 1% 61,272 -


Sensitivity analysis

84

Price risk

The Group is exposed to equity securities price risk because of investments held by the Group

and classified on the consolidated balance sheet either as available-for-sale or at fair value

through profit or loss. To manage its price risk arising from investments in equity securities,

the Group diversifies its portfolio to control this risk.

The Group’s investments in equity securities comprise listed and unlisted stocks. The prices of

equity securities would change due to the change of the future value of investee companies. If

the prices of these equity securities had increased/decreased by 1% with all other variables

held constant, post-tax profit for the six-month periods ended June 30, 2015 and 2014 would

have increased/decreased by $389 and $358, respectively, as a result of gain/loss on equity

securities classified as at fair value through profit or loss. Other components of equity would

have increased/decreased by $67,303 and $75,906 as of June 30, 2015 and 2014, respectively,

as a result of gain/loss on equity securities classified as available-for-sale.

Interest rate risk

i. The Group’s interest rate risk arises from 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 mainly bear variable

interest rate. During the six-month periods ended June 30, 2015 and 2014, the Group’s

borrowings at variable rate were denominated in NTD and USD.

ii. If the interest rate increases by 0.25%, and all other conditions are the same, the impact on

post-tax profit would decrease by $66,336 and $25,710 for the six-month periods ended

June 30, 2015 and 2014, respectively, resulting from the variable rate borrowings.

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 as described

below:

According to the Group’s credit policy, each local entity in the Group is responsible for

managing and analysing the credit risk for each of their new clients before standard

payment and delivery terms and conditions are offered. Internal risk control assesses

the credit quality of the customers, taking into account their financial position, past

experience and other factors.

Individual risk limits are set based on internal or external ratings in accordance with

limits set by the credit controller. The utilisation of credit limits is regularly monitored.

For banks and financial institutions, only well rated parties are accepted.

Credit risk arises from cash and cash equivalents, derivative financial instruments and

deposits with banks and financial institutions, as well as credit exposures to wholesale

85

and retail customers, including outstanding receivables and committed transactions.

ii. The management does not expect any significant losses from non-performance by these

counterparties.

iii. The credit quality information of significant financial assets that are neither past due nor

impaired is described in Note 6(6).

c) Liquidity risk

i. Cash flow forecasting is performed in the operating entities of the Group and aggregated

by Group treasury. Group treasury monitors rolling forecasts of the Group’s liquidity

requirements to ensure it has sufficient cash to meet operational needs.

ii. The table below analyses the Group’s (including non-current disposal group classified as

held for sale) non-derivative financial liabilities and net-settled or gross-settled 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

and to the expected maturity date for derivative financial liabilities:

Less than Between 1 Between 2 Over

June 30, 2015 1 year and 2 years and 5 years 5 years

Short-term borrowings 12,172,321$ -$ -$ -$

Notes and accounts payable

(including related parties)31,945,449 - - -

Other payables 37,645,682 - - -

Long-term borrowings

(including current portion)43,359 20,772,635 45,738 -


December 31, 2014 1 year and 2 years and 5 years 5 years



(including related parties) 33,748,983 - - -



(including current portion) 52,111 26,456,375 11,728 -

Non-derivative financial liabilities:

86

Derivative financial liabilities:

As of June 30, 2015, December 31, 2014 and June 30, 2014, the derivative financial

liabilities which were operated by the Group are due within 1 year.

iii. The Group does not expect the timing of occurrence of the cash flows estimated through thematurity date analysis will be significantly earlier, nor expect the actual cash flow amountwill be significantly different.

(3) Fair value information

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(11).

B. The different levels that the inputs to valuation techniques are used to measure fair value of

financial and non-financial instruments have been defined as follows:

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.

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.

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 June 30,

2015, December 31, 2014 and June 30, 2014 is as follows:


June 30, 2014 1 year and 2 years and 5 years 5 years



(including related parties) 30,819,706 - - -



(including current portion) 58,839 6,505,387 63,773 -

87

June 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 38,945$ -$ -$ 38,945$

Forward exchange contracts - 10,884 - 10,884

Convertible bonds 4,242 229,140 - 233,382

Available-for-sale financial

assets

Equity securities 5,592,299 - 1,138,048 6,730,347

5,635,486$ 240,024$ 1,138,048$ 7,013,558$

Liabilities


measurements

Financial liabilities at fair


Forward exchange contracts -$ 13,948$ -$ 13,948$

December 31, 2014 Level 1 Level 2 Level 3 Total

Assets:


measurements





Convertible bonds 5,805 115,924 - 121,729


assets


6,404,815$ 123,971$ 1,282,187$ 7,810,973$

Liabilities:


measurements




88

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

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

1) are listed below by characteristics:

(b) Except for financial instruments with active markets, the fair value of other financial

instruments is measured by using valuation techniques that are approved for financial

management.

(c) When assessing non-standard and low-complexity financial instruments, the Group adopts

valuation technique that is widely used by market participants. The inputs used in the

valuation method to measure these financial instruments are normally observable in the

market.

(d) The valuation of derivative financial instruments is based on valuation model widely

accepted by market participants, such as present value techniques and option pricing

models. Forward exchange contracts are usually valued based on the current forward

exchange rate.

June 30, 2014 Level 1 Level 2 Level 3 Total

Assets:


measurements





Convertible bonds 20,430 163,735 28,844 213,009


assets


6,553,583$ 183,457$ 1,122,151$ 7,859,191$

Liabilities:


measurements




Derivative financial liabilities

for hedging - 12,931 - 12,931

-$ 16,583$ -$ 16,583$

Listed shares Convertible (exchangeable) bond

Market quoted price Closing price Closing

89

(e) The output of valuation model is an estimated value and the valuation technique may not be

able to capture all relevant factors of the Group’s financial and non-financial instruments.

Therefore, the estimated value derived using valuation model is adjusted accordingly with

additional inputs. In accordance with the Group’s management policies and relevant control

procedures relating to the valuation models used for fair value measurement, management

believes adjustment to valuation is necessary in order to reasonably represent the fair value

of financial and non-financial instruments at the consolidated balance sheet. The inputs and

pricing information used during valuation are carefully assessed and adjusted based on

current market conditions.

(f) 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.

E. For the six-month periods ended June 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 six-month periods ended June 30, 2015

and 2014:

G. As Nien Made Enterprise Co., Ltd. and Crystalvue Medical Corporation became emerging

companies in Taiwan on January 6, 2015 and April 29, 2015, respectively, and as Green Seal

Holding Ltd. became a listed company in Taiwan on January 16, 2014, there was enough

observable market data available. Thus, the Group has transferred the fair value amount from

Level 3 to Level 2 at the end of each month.

Convertible bonds Equity securities Total

At January 1 -$ 1,282,188$ 1,282,188$

Gains and losses recognised

in profit or oss- 14,422)( 14,422)(

Acquired in the period - 168,490 168,490

Transfers out from level 3 - 290,400)( 290,400)(

Net exchange differences - 7,808)( 7,808)(

At June 30 -$ 1,138,048$ 1,138,048$

Convertible bonds Equity securities Total

At January 1 -$ 1,108,688$ 1,108,688$

Acquired in the period 28,844 135,103 163,947

Transfers out from level 3 - 88,992)( 88,992)(

Net exchange differences - 61,493)( 61,493)(

At June 30 28,844$ 1,093,306$ 1,122,150$

2015

2014

90

H. Investment department is in charge of valuation procedures for fair value measurements being

categorized 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 and periodical review.

Investment property is valuated regularly by the Group’s financial treasury based on the

valuation methods and assumptions announced by the Financial Supervisory Commission,

Securities and Futures Bureau or through outsourced appraisal performed by the external

appraiser.

The capital department establishes valuation policies, valuation processes and rules for

measuring fair value of financial instruments and ensure compliance with the related

requirements in IFRS. The related valuation results are reported to the management monthly.

The management is responsible for managing and reviewing valuation processes.

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:

J. The Group has carefully assessed the valuation models and assumptions used to measure fair

value; therefore, the fair value measurement is reasonable. However, use of different valuation

models or assumptions may result in different measurement. The following is the effect on

profit or loss or on other comprehensive income from financial assets and liabilities

categorized within Level 3 if the inputs used to valuation models have changed:

Fair value at Valuation

Significant

unobservable

Range

(weighted

Relationship of

inputs to fairJune 30, 2015 technique input average) value

Non-derivative

equityUnlisted shares

(including venture

capital shares)

$ 1,138,048 Net asset

value

Not applicable - Not applicable

91

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: Please refer to table 4.

E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: None.

F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.

G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in

capital or more: Please refer to table 5.

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

Please refer to table 6.

Favourable Unfavourable Favourable Unfavourablechange change change change

Financial assets

Equity instrument Net asset

value

± 1%-$ -$ 11,380$ 11,380$


Financial assets


value

± 1%-$ -$ 12,822$ 12,822$

Input Change

Input Change

December 31, 2014

Recognised in Recognised in other

profit or loss comprehensive income

June 30, 2015




Financial assets


value

± 1%-$ -$ 11,222$ 11,222$

Input Change

June 30, 2014



92

I. Trading in derivative instruments undertaken during the reporting periods: Please refer to Notes

6(2), 6(5), 6(15) and 12(2).

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 investees

A. Basic information: Please refer to table 9.

B. Significant transactions, either directly or indirectly through a third area, with investee

companies in the Mainland Area: Please refer to table 5 and 6 for significant transactions of

purchases, sales, receivables and payables of investee companies in the Mainland Area, and

transactions between the Company indirectly through investees in a third area, Delta

Electronics International Ltd. (DEIL-Labuan), Delta Electronics Int'l (Singapore) Pte. Ltd.

(DEIL-SG), Delta Networks International Ltd. (DNIL-Labuan) and Cyntec International Ltd.

(CIL-Labuan), with investee companies in the Mainland Area.

14. OPERATING SEGMENT INFORMATION

(1) General information

The Group has determined the reportable segments based on the information which is used to

make strategic decisions by the Board of Directors. The Group considers the business from a

product perspective. The Group’s business is segregated into power electronics business, energy

management business and smart green life business. Breakdown of the revenue from all sources is

as follows:

A. Power electronics business: Embedded Power Supplies, Mobile Power, Industrial and medical

power supplies, Fans and Cooling Management, Core Components of Information and

Communication and other items. Provides global power management and cooling plans and

management.

B. Energy management business: Industrial Automation, Communication Power System,

Uninterruptible Power System and Information Centre, Recharging Equipment for Automotive

Electronics and Electronic Cars, Renewable Energy, and other items. Provides energy

automation plans for factories and buildings.

C. Smart green life business: Network Devices, Conferencing and Visual Imaging System, LED

Lighting Plans, Medical Devices, Innergie Power Consumption Products, Vivitek High

Definition Projector and other items.

Because of the change of product classification, the Group’s reporting business changed. The

prior period information was restated for comparison.

93

(2) Measurement of segment information

The Group’s segment profit (loss) is measured with the operating profit (loss) before tax, which is

used as a basis for the Group in assessing the performance of the operating segments. The

accounting policies of the operating segments are in agreement with the significant accounting

policies summarized in Note 4.

(3) Segment information

The segment information provided to the chief operating decision-maker for the reportable

segments is as follows:

Note: Segment income is income before eliminating inter-segment transactions.

(4) Reconciliation information for segment profit (loss)

A. The revenue from external parties reported to the chief operating decision-maker is measured

in a manner consistent with that in the statement of comprehensive income.

B. A reconciliation of reportable segments profit (loss) to profit (loss) before tax and discontinued

operations is provided as follows:

Power Energy

electronics management Smart green

business business life business Total

Revenue from external

customers 50,255,497$ 23,136,969$ 17,624,274$ 91,016,740$

Segment income (Note) 6,841,438$ 3,157,865$ 1,515,599$ 11,514,902$

Power Energy

electronics management Smart green

business business life business Total

Revenue from external

customers 54,831,740$ 16,697,632$ 17,043,964$ 88,573,336$

Segment income (Note) 8,690,647$ 2,892,807$ 1,855,425$ 13,438,879$



2015 2014

Reportable segments' profit 11,514,902$ 13,438,879$

Other segments' loss 2,502,192)( 2,350,455)(

Non-operating income and expenses 1,576,813 1,801,110

Profit before tax and discontinued

operations 10,589,523$ 12,889,534$


Item Value

1 Cyntec International LimitedCyntec (Suzhou) Co.

Ltd

Other receivables-

related partiesYes $ 308,600 $ 308,600 $ 185,160 0.888626% 2 -

Additional

operating capital - None - $ 2,988,624 $ 2,988,624

1 Cyntec International LimitedCyntec Electronics

(Suzhou) Co., Ltd.

Other receivables-

related partiesYes 1,234,400 1,234,400 925,800 0.888626% 2 -

Additional

operating capital - None - 2,988,624 2,988,624

2 Eltek Power Systems AS Eltek Holding ABOther receivables-

related partiesYes 3,927 3,927 3,707 3.40% 2 -

Additional


2 Eltek Power Systems AS Eltek S.r.l.Other receivables-


Additional


2 Eltek Power Systems ASEltek Enerji Sistemleri

Ltd Sirketi

Other receivables-


Additional


2 Eltek Power Systems AS Eltek MEA DMCCOther receivables-


Additional


2 Eltek Power Systems ASEltek Management

Invest AS

Other receivables-


Additional


2 Eltek Power Systems AS Eltek s.r.o.Other receivables-


Additional


2 Eltek Power Systems AS Eltek AsOther receivables-


Additional


2 Eltek Power Systems ASEltek Sistemas de

Energia Ind. Com. SA

Other receivables-


Additional


3 Eltek AS Eltek Power Systems ASOther receivables-

related partiesYes 5,073,999 5,073,999 0 0.00% 2 -

Additional


4 Eltek Power Sweden AB Eltek Power Systems ASOther receivables-


Additional

operating capital - None - 40,177 40,177

5 Eltek Power Ltd Eltek Power Systems ASOther receivables-


Additional


General ledger account

Is a

related

party

Delta Electronics Inc.

Loans to others


Table 1 Expressed in thousands of New Taiwan dollars, except as otherwise indicated

Collateral

Limit on

loans granted

to a single

party

Ceiling on total

loans granted Note Interest rate

Nature of

loan

Amount of

transactions

with the

borrower

Reason for short-

term financing

Allowance

for

doubtful

accounts

Maximum

outstanding

balance

during the

six-month

period ended

June 30, 2015

(Note b)

Balance at

June 30, 2015

Actual

amount

drawn down

No.

（Note

a）

Creditor Borrower

Table 1-1

Item Value

General ledger account

Is a

related

party

Collateral

Limit on

loans granted

to a single

party

Ceiling on total

loans granted Note Interest rate

Nature of

loan

Amount of

transactions

with the

borrower

Reason for short-

term financing

Allowance

for

doubtful

accounts

Maximum

outstanding

balance

during the

six-month

period ended

June 30, 2015

(Note b)

Balance at

June 30, 2015

Actual

amount

drawn down

No.

（Note

a）

Creditor Borrower

6 Eltek Power Oy Eltek Power Systems ASOther receivables-

related partiesYes $ 28,716 $ 28,716 $ 20,581 0.00% 2 -

Additional

operating capital - None - $ 1,981 $ 1,981

7 Eltek Deutschland GmbH Eltek Power Systems ASOther receivables-


Additional


7 Eltek Deutschland GmbH E.V.I Electronics Sp.zooOther receivables-


Additional


8 Eltek Inc. Eltek Power Systems ASOther receivables-

related partiesYes 1,377,767 1,377,767 728,075 0.00% 2 -

Additional


9 Eltek Power France SAS Eltek Power Systems ASOther receivables-


Additional


10 Eltek Power Pte Ltd. Eltek Power Systems ASOther receivables-


Additional


11 Eltek Ventures As Eltek Power Systems ASOther receivables-


Additional


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

(1).Number 0 represents the Company.

(2) The investee companies are in order from number 1.

Note b: Maximum outstanding balance during the current period was translated into New Taiwan dollars using the exchange rate at June 30, 2015, which the Company reported to the Securities and Futures Bureau.

Note c:

Note d: Limit on loans granted by the Company to a single party is 10% of the Company’s net assets based on the latest audited or reviewed financial statements, and limit on total loans is 20% of the Company’s net assets based on the latest audited or reviewed financial statements.

Note e: Limit on loans granted by subsidiaries to a single party is 40% of the subsidiaries’ net assets based on the latest audited or reviewed financial statements, and limit on total loans is 40% of the subsidiaries’ net assets based on the latest audited or reviewed financial statements.

assets based on the latest audited or reviewed financial statements.

(1) In accordance with the Cyntec International Ltd. Operating Procedures of Fund Lending, when providing short-term financing to other companies or other enterprise, the amount lent to a single recipient shall not exceed 40 percent of the company’s net worth as stated in the

company’s latest financial statements.

(2) In accordance with the Cyntec International Ltd. Operating Procedures of Fund Lending, the limits for total amount of fund lending shall not exceed 40 percent of the company’s net worth as stated in the company’s latest financial statements.

Note f: Limit on loans for financing granted by and to subsidiaries of which the ultimate parent directly or indirectly holds 100% of its voting shares is the lender’s net assets based on the latest audited or reviewed financial statements, and limit on total loans is the lender’s net

Table 1-2

Company name

Relationship

with the

endorser /

guarantor

1 Eltek Power Systems AS Eltek AS 3 1,823,448$ 138,870$ 138,870$ 138,870$ -$ 0.13% $4,558,621 Y N N

1 Eltek Power Systems AS Eltek Power Pte Ltd. 3 1,823,448 439,472 439,472 439,472 - 0.42% 4,558,621 Y N N

1 Eltek Power Systems AS Eltek Power Sweden AB 3 1,823,448 758,120 758,120 758,120 - 0.72% 4,558,621 Y N N

1 Eltek Power Systems AS Eltek Deutschland

GmbH

3 1,823,448 (Note d) (Note d) (Note d) - (Note d) 4,558,621 Y N N

1 Eltek Power Systems AS Eltek Inc. 3 1,823,448 (Note d) (Note d) (Note d) - (Note d) 4,558,621 Y N N

1 Eltek Power Systems AS Eltek Industrial Systems

GmbH

3 1,823,448 (Note d) (Note d) (Note d) - (Note d) 4,558,621 Y N N

1 Eltek Power Systems AS Eltek Power Ltd. 3 1,823,448 (Note d) (Note d) (Note d) - (Note d) 4,558,621 Y N N

1 Eltek Power Systems AS Eltek Power Oy 3 1,823,448 (Note d) (Note d) (Note d) - (Note d) 4,558,621 Y N N

1 Eltek Power Systems AS OOO Eltek 3 1,823,448 (Note d) (Note d) (Note d) - (Note d) 4,558,621 Y N N

2 Eltek AS Eltek MEA DMCC 3 1,823,448 60,396 60,396 60,396 - 0.06% 4,558,621 Y N N

2 Eltek AS Eltek Power Sweden AB 3 1,823,448 18,700 18,700 18,700 - 0.02% 4,558,621 Y N N

Note a: 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 b: In accordance with the Company's“Procedures for Provision of Endorsements and Guarantees,” limit on total endorsements is 40% of the Company's net assets based on the latest audited or reviewed financial statements, limit on endorsements to a single company is 20% of the Company's net assets based on the latest audited or reviewed financial statements. Limit on total endorsements granted by the Company and subsidiaries is 50% of the Company's net assets based on the latest audited or reviewed financial

statements, limit on total endorsements to a single party is 30% of the Company's net assets based on the latest audited or reviewed financial statements.

Note c: In accordance with Eltek's “Procedures for Provision of Endorsements and Guarantees,” limit on total endorsements is 5% of the Company’s net assets based on the latest audited or reviewed financial statements, and limit on endorsements to a single party is 2%

of the Company’s net assets based on the latest audited or reviewed financial statements.

Note d: Eltek Power Systems AS provides endorsements to Eltek Power Sweden AB, Eltek Power Oy, OOO Eltek, Eltek Power Ltd., Eltek Inc., Eltek Industrial Systems GmbH and Eltek Deutschland GmbH as a whole and the limit cannot be divided. Thus, endorsement

amount is disclosed collectively.


Provision of endorsements and guarantees to others



Provision of

endorsements

/ guarantees to

the party in

Mainland

China

Note

Amount of

endorsements

/ guarantees

secured with

collateral

Ratio of

accumulated

endorsement /

guarantee amount to

net asset value of

the endorser /

guarantor company

Ceiling on total

amount of

endorsements /

guarantees

provided

Provision of

endorsements /

guarantees by

parent

company to

subsidiary

Provision of

endorsements /

guarantees by

subsidiary to

parent company

Outstanding

endorsement /

guarantee amount

at June 30, 2015

Actual

amount drawn

down

Number

(Note a)Endorser / guarantor

Party being endorsed/guaranteed

Limit on

endorsements /

guarantees provided

for a single party

Maximum

outstanding

endorsement /

guarantee amount

as of June 30,

2015

Table 2-1

Number of shares Book value Owner ship(%) Fair value

Delta Electronics Inc. Dynapack International Technology

Corporation common stock

None Available-for-sale financial assets 1,925,459 125,925$ 1.27 125,925$ -

Delta Electronics Inc. Neo Solar Power Corp. common stock None Available-for-sale financial assets 161,590,296 3,870,088 18.87 3,870,088 -

Delta Electronics Inc. Delta America Ltd. Preferred shares None Financial assets carried at cost-non-current 2,100,000 103,065 Preferred shares 103,065 -

Delta Electronics Inc. Others None 457,343 457,343 -

Delta International Holding Solarflare Communications, Inc. Preferred

shares

None Available-for-sale financial assets 9,547,235 294,628 4.10 294,628 -

Delta International Holding Mentis Technology, Inc. (Formerly: Mentis

Technology, LLC), etc.

None 93,648 93,648 -

Cyntec Co., Ltd. SUSUMU Co., Ltd., stock None Financial assets carried at cost-non-current 200,000 104,081 11.53 104,081 -

Cyntec Co., Ltd. LUXTERA. INC. stock None Financial assets carried at cost-non-current 52,056,222 313,220 3.60 313,220 -

Delta Electronics Capital Company Binhai Investment Company Limited

convertible bonds

None Financial assets at fair value through

profit or loss-non-current

119,218 119,218 -

Delta Electronics Capital Company SynCardia Systems, Inc. convertible bonds None Financial assets at fair value through

profit or loss-non-current

109,922 109,922 -

Delta Electronics Capital Company Tong Hsing Electronic Industries, Ltd.

Common stock


Delta Electronics Capital Company Hu Lane Associate Inc. common stock None Available-for-sale financial assets 756,397 104,383 0.78 104,383 -

Delta Electronics Capital Company Nien Made Enterprise Co., Ltd. common

stock


Delta Electronics Capital Company Global Wafers Co., Ltd. common stock None Available-for-sale financial assets 1,301,300 115,074 0.37 115,074 -

Delta Electronics Capital Company SynCardia Systems, Inc. preferred shares None Available-for-sale financial assets 2,338,130 102,388 6.65 102,388 -

Delta Electronics Capital Company Candmark Electroptics Co.,Ltd. common

stock, etc.

None 1,328,109 1,328,109 -

Deltronics (Netherlands) B.V. Delta America Ltd. None Financial assets carried at cost-non-current 350,000 30,351 2.77 30,351 -

NoteSecurities held by Marketable securitiesRelationship with the

securities issuerGeneral ledger account

As of June 30, 2015

Delta Electronics Inc.Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)



Table 3-1

Number of

sharesAmount Number of shares Amount

Number of

sharesSelling price Book value

Gain (loss)

on disposal

Number of

sharesAmount

$ 199,365

(Note a)

614,846

(Note b)

Deltronics (Netherlands)

B.V.

Eltek Power Systems AS - - 15,345,393

(Note c)

Delta International Holding Deltronics (Netherlands) B.V. Deltronics

(Netherlands) B.V.

Affiliated

enterprise

- - 18,385

(Note d)

Note a: The amount is the book value of financial assets added by the valuation measured using fair value.

Note b: The Company increased investment by $708,379 in Deltronics (Netherlands) B.V. in June 2015 which includes adjustments in profit (loss) and net value of associates recognised by the Company.

Note c: Deltronics (Netherlands) B.V. increased investment by $15,223,268 in Eltek Power Systems AS in April 2015, which includes recognition of adjustments in profit (loss) and net value of associates.

Note d: Delta International Holding Ltd. increased investment by $15,430,000 in Deltronics (Netherlands) B.V. in April 2015. Deltronics (Netherlands) B.V. decreased capital in June 2015, which includes recognition of profit (loss) associates of $18,385.

- 260,416,667 18,385Investments

accounted for under

the equity method

260,416,667 - -

Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital


Table 4


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

Addition Disposal Balance as at June 30, 2015

Investor Marketable security General ledger

account

CounterpartyRelationship

with the

investor

Balance as at January 1,

2015

5,013,459 $ 369,492 3,088,000Delta Electronics Inc. Dynapack International

Technology Corporation

Available-for-sale

financial assets

Stock Exchange

Market

None $ 214,158 $ 442,932 ($ 228,774) 1,925,459 $ 125,925

Delta Electronics Inc. Deltronics (Netherlands) B.V. Investments

accounted for under

the equity method

Deltronics

(Netherlands) B.V.

Subsidiary -

-

25,674,091 951,200

329,205,923 15,345,393 -Investments

accounted for under

the equity method

329,205,923 -

- 4,765,000 336,354 20,909,091 -

NoneAcquired in open

market

Table 4-1

Table 5

Purchases

(sales)

(Note a)Amount

Percentage of

total purchases

(sales)

Credit terms Unit price Credit terms Balance

Percentage of

total

notes/accounts

receivable

(payable)

Delta Electronics Inc. DEI Logistics (USA) Corp. Affiliated

enterpriseSales 157,403$ 0.88 75 days - - 107,449$ 1.45

Delta Electronics Inc. Delta Greentech (China) Co., Ltd.Affiliated

enterpriseSales 116,830 0.66 75 days - - 36,763 0.50

Delta Electronics Inc. Cyntec Electronics (Suzhou) Co., Ltd.Affiliated


Delta Electronics Inc. Delta Electronics Int'l (Singapore) Pte. Ltd. Subsidiary Sales 4,779,971 26.83 75 days - - 1,214,853 16.42

Delta Electronics Inc. Delta Energy Systems (Singapore) Pte. Ltd. Associate Sales 133,906 0.75 75 days - - 71,271 0.96

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Thailand) Public Company Limited Associate Purchases 140,697 0.16 75 days - - 73,142 0.22

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Products CorporationRelated party

in substancePurchases 129,904 0.15 75 days - - 113,907 0.34

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics International Ltd.Affiliated


Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Dongguan) Co., Ltd.Affiliated

enterpriseSales 3,320,935 3.31 75 days - - 1,266,821 2.85

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics Power (Dongguan) Co., Ltd.Affiliated


Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Jiangsu) Ltd.Affiliated


Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics Components (Wujiang) Ltd.Affiliated

enterpriseSales 4,218,198 4.20 75 days - - 741,160 1.66

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Video Display System (Wujiang) Ltd.Affiliated


Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Chenzhou) Co., Ltd.Affiliated


Delta Electronics Int'l (Singapore) Pte. Ltd. Chenzhou Delta Technology Co. Ltd.Affiliated


Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Wuhu) Co., Ltd.Affiliated


Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Japan), Inc.Affiliated



NotePurchaser/seller Counterparty

Relationship

with the

counterparty

Transaction

Differences in transaction

term compared to third

party transactions

Notes / accounts receivable

(payable)


Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more


Table 5-1

Purchases

(sales)

(Note a)Amount

Percentage of

total purchases

(sales)


Percentage of

total

notes/accounts

receivable

(payable)


Relationship

with the

counterparty

Transaction



party transactions


(payable)

Delta Electronics Int'l (Singapore) Pte. Ltd. DEI Logistics (USA) Corp.Affiliated

enterpriseSales 8,817,966$ 8.79 75 days - - 4,798,194$ 10.78

Delta Electronics Int'l (Singapore) Pte. Ltd. Vivitek CorporationAffiliated


Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Networks, Inc. (Taiwan)Affiliated


Delta Electronics Int'l (Singapore) Pte. Ltd. DNI Logistics (USA) Co.Affiliated


Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Networks (Dongguan) Ltd.Affiliated


Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics Inc.

Ultimate

parent

companySales 9,907,151 9.87 75 days - - 7,303,809 16.41

Delta Electronics Int'l (Singapore) Pte. Ltd. Deltronics (Netherlands) B.V.Affiliated


Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Energy Systems (Switzerland) AG Associate Sales 432,948 0.43 75 days - - 260,328 0.58

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Thailand) Public Company Limited Associate Sales 124,982 0.12 75 days - - 64,427 0.14

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Power Solutions (India) Pvt Ltd. Associate Sales 228,459 0.23 75 days - - 148,506 0.33

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Greentech (USA) Corporation Associate Sales 283,752 0.28 75 days - - 137,137 0.31

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta India Electronics Pvt. Ltd. Associate Sales 366,172 0.36 75 days - - 128,397 0.29

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Slovakia) s.r.o. Associate Sales 212,715 0.21 75 days - - 64,830 0.15

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Energy Systems (Australia) PTY.LTD. Associate Sales 124,959 0.12 75 days - - 68,219 0.15

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Products Corporation Related party

in substanceSales 614,830 0.61 75 days - - 319,716 0.72

Delta Electronics Int'l (Singapore) Pte. Ltd. Digital Projection Ltd Associate Sales 262,107 0.26 75 days - - 159,021 0.36

Delta Networks (Dongguan) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated


Delta Networks International Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated

enterpriseSales 727,736 0.98 75 days - - - -

Delta Networks, Inc. (Taiwan) Delta Electronics Inc.Affiliated


Delta Networks, Inc. (Taiwan) DNI Logistics (USA) Corp.Affiliated


Table 5-2

Purchases

(sales)

(Note a)Amount

Percentage of

total purchases

(sales)


Percentage of

total

notes/accounts

receivable

(payable)


Relationship

with the

counterparty

Transaction



party transactions


(payable)

Delta Electronics (Dongguan) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd.Affiliated

enterpriseSales 4,264,407$ 79.50 75 days - - 1,956,107$ 75.01

Delta Electronics (Dongguan) Co., Ltd. Delta Electronics (Shanghai) Co., Ltd.Affiliated


Delta Electronics Power (Dongguan) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated


Delta Electronics Power (Dongguan) Co., Ltd. Delta Electronics (Shanghai) Co., Ltd.Affiliated


Delta Electronics Power (Dongguan) Co., Ltd. Delta Networks (Dongguan) Ltd.Affiliated


Delta Electronics (Jiangsu) Ltd. Delta Electronics (Shanghai) Co., Ltd.Affiliated


Delta Electronics (Jiangsu) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated


Delta Electronics Components (Wujiang) Ltd. Delta Electronics (Shanghai) Co., Ltd.Affiliated


Delta Electronics Components (Wujiang) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated


Delta Video Display System (Wujiang) Ltd. Delta Electronics (Shanghai) Co., Ltd.Affiliated


Delta Video Display System (Wujiang) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated


Delta Electronics (Wuhu) Co., Ltd. Delta Electronics Int'l (Singapore) Pte. Ltd. Affiliated


Wuhu Delta Technology Co., Ltd. Delta Electronics (Wuhu) Co., Ltd.Affiliated


Delta Electronics (Chenzhou) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated


Chenzhou Delta Technology Co. Ltd. Delta Electronics Power (Dongguan) Co., Ltd.Affiliated


Chenzhou Delta Technology Co. Ltd. Delta Electronics (Chenzhou) Co., Ltd.Affiliated


Delta Electronics (Shanghai) Co., Ltd. Delta Greentech (China) Co., Ltd.Affiliated


Delta Electronics (Shanghai) Co., Ltd. Delta Electronics Components (Wujiang) Ltd.Affiliated


Delta Electronics (Shanghai) Co., Ltd. Delta Electronics Power (Dongguan) Co., Ltd.Affiliated


PreOptix (Jiang Su) Co. Ltd. Delta Electronics Int'l (Singapore) Pte. Ltd.Affiliated


Delta Electronics (Japan) Inc. Delta Electronics Int'l (Singapore) Pte. Ltd.Affiliated


Table 5-3

Purchases

(sales)

(Note a)Amount

Percentage of

total purchases

(sales)


Percentage of

total

notes/accounts

receivable

(payable)


Relationship

with the

counterparty

Transaction



party transactions


(payable)

Cyntec Co., Ltd. Cyntec International LimitedAffiliated

enterpriseSales 957,810$ 54.83 (Note b) (Note b) (Note b) 310,035$ 48.27

Cyntec (Suzhou) Co. Ltd Cyntec International LimitedAffiliated

enterpriseSales 1,265,210 79.70 (Note c) (Note c) (Note c) 349,416 31.13

Cyntec Electronics (Suzhou) Co., Ltd. Cyntec International LimitedAffiliated

enterpriseSales 2,495,437 100.00 (Note c) (Note c) (Note c) 1,021,629 99.96

Cyntec International Limited Cyntec Co., Ltd.Affiliated

enterpriseSales 391,357 6.02 (Note c) (Note c) (Note c) 141,039 3.76

Cyntec International Limited Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated


Note a: Including the service income in excess of $100,000.

Note c: Selling prices based on materials cost plus administration fees and related costs. The credit term to related parties is 60~90 days, while 30~120 days for the third parties.

Note b: Selling price is based on materials cost plus administration fees and related costs. The collection term to related parties is 60~90 days after delivery and to third parties is receipt in advance or 30~120 days after delivery.

Table 5-4

Table 6

Amount Action taken

Delta Electronics Inc. DEI Logistics (USA) Corp. Subsidiary 107,449$ 0.34 -$ - 2,997$ $ -

Delta Electronics Inc. Delta Electronics Int’l (Singapore) Pte. Ltd. Subsidiary 1,214,853 4.74 - - 922,216 -

Delta Electronics Inc. Allied Material Technology Corp. Subsidiary 598,299 - - - 711 -

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Dongguan) Co., Ltd. Affiliated enterprise 1,266,821 4.26 - - 185,160 -

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics Power (Dongguan) Co., Ltd. Affiliated enterprise 3,590,420 3.80 - - 1,373,270 -

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Jiangsu) Ltd. Affiliated enterprise 1,563,620 9.68 - - 1,563,620 -

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics Components (Wujiang) Ltd. Affiliated enterprise 741,160 9.96 - - 741,160 -

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Video Display System (Wujiang) Ltd. Affiliated enterprise 566,299 6.10 - - 348,322 -

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Chenzhou) Co., Ltd. Affiliated enterprise 432,531 3.24 - - 124,983 -

Delta Electronics Int'l (Singapore) Pte. Ltd. Chenzhou Delta Technology Co. Ltd. Affiliated enterprise 123,693 3.75 - - 94,740 -

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Wuhu) Co., Ltd. Affiliated enterprise 347,003 7.04 - - 185,160 -

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Japan), Inc. Affiliated enterprise 435,980 3.72 - - 50,644 -

Delta Electronics Int'l (Singapore) Pte. Ltd. DEI Logistics (USA) Corp. Affiliated enterprise 4,798,194 4.68 227,405 - 1,208,013 -

Delta Electronics Int'l (Singapore) Pte. Ltd. Vivitek Corporation Affiliated enterprise 158,125 3.96 53,603 - 25,992 -

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Networks, Inc. (Taiwan) Affiliated enterprise 231,068 5.95 - - 109,534 -

Delta Electronics Int'l (Singapore) Pte. Ltd. DNI Logistics (USA) Co. Affiliated enterprise 3,578,520 6.48 570,767 - 471,486 -

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Networks (Dongguan) Ltd. Affiliated enterprise 3,319,328 9.64 - - 1,043,068 -

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics Inc. Ultimate parent company 7,303,809 2.58 9,198 - 1,087,024 -

Delta Electronics Int'l (Singapore) Pte. Ltd. Deltronics (Netherlands) B.V. Affiliated enterprise 247,210 5.85 - - - -

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Energy Systems (Switzerland) AG Associate 260,328 5.20 - - 122,531 -

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Power Solutions (India) Pvt Ltd. Associate 148,506 4.51 - - - -

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Greentech (USA) Corporation Associate 137,137 3.67 - - - -

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta India Electronics Pvt. Ltd. Associate 128,397 5.74 - - - -

Amount collected

subsequent to the balance

date (Note b)

Allowance for

doubtful accountsCreditor Counterparty

Relationship with the

counterparty Balance as at June 30, 2015 (Note a)Turnover rate

Overdue receivables


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

June 30, 2015


Table 6-1

Amount Action taken

Amount collected


date (Note b)

Allowance for




Overdue receivables

Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Products Corporation Related party

in substance

319,716$ 4.17 -$ - $ 139 $ -

Delta Electronics Int'l (Singapore) Pte. Ltd. Digital Projection Ltd. Associate 159,021 2.95 - - - -

Delta Networks (Dongguan) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated enterprise 3,525,504 5.44 - - 634,729 -

Delta Networks, Inc. (Taiwan) Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated enterprise 100,443 - - - 79,550 -

Delta Networks, Inc. (Taiwan) DNI Logistics (USA) Corp. Affiliated enterprise 365,182 3.24 - - 8,021 -

Delta Electronics (Dongguan) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated enterprise 1,956,107 4.18 - - 317,444 -

Delta Electronics (Dongguan) Co., Ltd. Delta Electronics (Shanghai) Co., Ltd. Affiliated enterprise 244,545 3.06 - - 77,192 -

Delta Electronics Power (Dongguan) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated enterprise 4,841,958 4.17 - - 1,736,487 -

Delta Electronics Power (Dongguan) Co., Ltd. Delta Electronics (Shanghai) Co., Ltd. Affiliated enterprise 451,176 3.12 - - 28,159 -

Delta Electronics (Jiangsu) Ltd. Delta Electronics (Shanghai) Co., Ltd. Affiliated enterprise 2,005,613 3.19 - - 558,976 -

Delta Electronics (Jiangsu) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated enterprise 2,987,699 10.23 - - 2,865,317 -

Delta Electronics Components (Wujiang) Ltd. Delta Electronics (Shanghai) Co., Ltd. Affiliated enterprise 2,116,465 3.65 - - 762,344 -

Delta Electronics Components (Wujiang) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated enterprise 1,062,595 11.20 - - 1,008,455 -

Delta Electro-Optics (Wujiang) Ltd. Delta Electronics Components (Wujiang) Ltd. Affiliated enterprise 1,037,025 - - - - -

Delta Video Display System (Wujiang) Ltd. Delta Electronics (Shanghai) Co., Ltd. Affiliated enterprise 634,678 3.00 - - 204,653 -

Delta Video Display System (Wujiang) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated enterprise 317,682 11.26 - - 316,818 -

Delta Electronics (Wuhu) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated enterprise 1,101,176 5.92 - - 525,542 -

Delta Electronics (Chenzhou) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated enterprise 796,779 6.26 - - 476,140 -

Chenzhou Delta Technology Co. Ltd. Delta Electronics Power (Dongguan) Co., Ltd. Affiliated enterprise 233,013 3.07 - - - -

Chenzhou Delta Technology Co. Ltd. Delta Electronics (Chenzhou) Co., Ltd. Affiliated enterprise 546,693 3.75 - - 126,738 -

Delta Electronics (Shanghai) Co., Ltd. Delta Greentech (China) Co., Ltd. Affiliated enterprise 3,539,466 2.98 - - 1,178,266 -

Delta Electronics (Japan) Inc. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated enterprise 135,393 3.49 - - 42,310 -

Cyntec Co., Ltd. Cyntec International Limited Affiliated enterprise 310,035 7.53 - - 109,531 -

Cyntec (Suzhou) Co. Ltd Cyntec International Limited Affiliated enterprise 349,416 5.88 - - 240,562 -

Cyntec Electronics (Suzhou) Co., Ltd. Cyntec International Limited Affiliated enterprise 1,021,629 5.59 - - 456,052 -

Cyntec International Limited Cyntec Co., Ltd. Affiliated enterprise 141,039 5.63 - - - -

Cyntec International Limited Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated enterprise 133,243 4.00 - - 46,604 -

Cyntec International Limited Cyntec (Suzhou) Co. Ltd Affiliated enterprise 185,160 - - - - -

Table 6-2

Amount Action taken

Amount collected


date (Note b)

Allowance for




Overdue receivables

Cyntec International Limited Cyntec Electronics (Suzhou) Co., Ltd. Affiliated enterprise $ 925,800 - -$ - $ - $ -

Eltek Power Systems AS Eltek MEA DMCC Affiliated enterprise 176,567 - - - - -

Eltek Power Systems AS Eltek Management Invest AS Affiliated enterprise 182,952 - - - - -

Eltek Power Systems AS Eltek s.r.o. Affiliated enterprise 241,661 - - - - -

Eltek Power Systems AS Eltek As Affiliated enterprise 277,627 - - - - -

Eltek Power Systems AS Eltek Sistemas de Energia Ind. Com. SA Affiliated enterprise 398,005 - - - - -

Eltek Power Ltd Eltek Power Systems AS Affiliated enterprise 132,712 - - - - -

Eltek Inc. Eltek Power Systems AS Affiliated enterprise 728,075 - - - - -

Eltek Power Pte Ltd. Eltek Power Systems AS Affiliated enterprise 204,052 - - - - -

Eltek Ventures As Eltek Power Systems AS Affiliated enterprise 279,352 - - - - -

Note a: Including other receivable in excess of $100,000.

Note b: The amount represents collections subsequent to June 30, 2015 up to July 28, 2015.

Table 6-3

General ledger accountAmount

Transaction

terms

Percentage of consolidated total

operating revenue or total assets

(Note c)

0 Delta Electronics Inc. DEI Logistics (USA) Corp. 1 Sales 157,403$ (Note d) 0.17

0 Delta Electronics Inc. Delta Greentech (China) Co., Ltd. 1 Sales 116,830 (Note d) 0.13

0 Delta Electronics Inc. Cyntec Electronics (Suzhou) Co., Ltd. 1 Sales 165,292 (Note d) 0.18

0 Delta Electronics Inc. Delta Electronics Int'l (Singapore) Pte. Ltd. 1 Sales 4,779,971 (Note d) 5.20

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics International Ltd. 3 Sales 322,468 (Note d) 0.35

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Dongguan) Co., Ltd. 3 Sales 3,320,935 (Note d) 3.61

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics Power (Dongguan) Co., Ltd. 3 Sales 8,182,793 (Note d) 8.90

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Jiangsu) Ltd. 3 Sales 7,883,491 (Note d) 8.58

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics Components (Wujiang) Ltd. 3 Sales 4,218,198 (Note d) 4.59

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Video Display System (Wujiang) Ltd. 3 Sales 2,145,605 (Note d) 2.33

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Chenzhou) Co., Ltd. 3 Sales 753,914 (Note e) 0.82

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Chenzhou Delta Technology Co. Ltd. 3 Sales 239,498 (Note d) 0.26

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Wuhu) Co., Ltd. 3 Sales 1,560,564 (Note d) 1.70

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Japan), Inc. 3 Sales 927,944 (Note d) 1.01

1 Delta Electronics Int'l (Singapore) Pte. Ltd. DEI Logistics (USA) Corp. 3 Sales 8,817,966 (Note d) 9.59

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Vivitek Corporation 3 Sales 275,110 (Note d) 0.30

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Networks, Inc. (Taiwan) 3 Sales 377,851 (Note d) 0.41

1 Delta Electronics Int'l (Singapore) Pte. Ltd. DNI Logistics (USA) Corp. 3 Sales 5,861,340 (Note d) 6.38

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Networks (Dongguan) Ltd. 3 Sales 8,293,772 (Note d) 9.02

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics Inc. 2 Sales 9,907,151 (Note d) 10.78

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Deltronics (Netherlands) B.V. 3 Sales 689,691 (Note d) 0.75

2 Delta Networks (Dongguan) Ltd. Delta Electronics Int'l (Singapore) Pte. Ltd. 3 Sales 9,595,522 (Note d) 10.44

3 Delta Networks International Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Sales 727,736 (Note d) 0.79

Transaction


Significant inter-company transactions during the reporting periods


Table 7

Number

(Note a) Company name Counterparty

Relationship

(Note b)


Table 7-1


Transaction

terms



(Note c)

TransactionNumber


Relationship

(Note b)

4 Delta Networks, Inc. (Taiwan) Delta Electronics Inc. 3 Sales 564,950$ (Note d) 0.61

4 Delta Networks, Inc. (Taiwan) DNI Logistics (USA) Corp. 3 Sales 583,956 (Note d) 0.64

5 Delta Electronics (Dongguan) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Sales 4,264,407 (Note d) 4.64

5 Delta Electronics (Dongguan) Co., Ltd. Delta Electronics (Shanghai) Co., Ltd. 3 Sales 354,752 (Note d) 0.39

6 Delta Electronics Power (Dongguan) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Sales 10,295,543 (Note d) 11.20

6 Delta Electronics Power (Dongguan) Co., Ltd. Delta Electronics (Shanghai) Co., Ltd. 3 Sales 707,079 (Note d) 0.77

6 Delta Electronics Power (Dongguan) Co., Ltd. Delta Networks (Dongguan) Ltd. 3 Sales 210,065 (Note d) 0.23

7 Delta Electronics (Jiangsu) Ltd. Delta Electronics (Shanghai) Co., Ltd. 3 Sales 2,688,357 (Note d) 2.92

7 Delta Electronics (Jiangsu) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Sales 15,956,761 (Note d) 17.36

8 Delta Electronics Components (Wujiang) Ltd. Delta Electronics (Shanghai) Co., Ltd. 3 Sales 2,844,798 (Note d) 3.09

8 Delta Electronics Components (Wujiang) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Sales 5,768,010 (Note d) 6.27

9 Delta Video Display System (Wujiang) Ltd. Delta Electronics (Shanghai) Co., Ltd. 3 Sales 985,880 (Note d) 1.07

9 Delta Video Display System (Wujiang) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Sales 2,394,088 (Note d) 2.60

10 Delta Electronics (Wuhu) Co., Ltd. Delta Electronics Int'l (Singapore) Pte. Ltd. 3 Sales 3,505,731 (Note d) 3.81

11 Wuhu Delta Technology Co., Ltd. Delta Electronics (Wuhu) Co., Ltd. 3 Sales 161,992 (Note d) 0.18

12 Delta Electronics (Chenzhou) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Sales 2,712,921 (Note d) 2.95

13 Chenzhou Delta Technology Co. Ltd. Delta Electronics Power (Dongguan) Co., Ltd. 3 Sales 389,895 (Note d) 0.42

13 Chenzhou Delta Technology Co. Ltd. Delta Electronics (Chenzhou) Co., Ltd. 3 Sales 1,080,089 (Note d) 1.17

14 Delta Electronics (Shanghai) Co., Ltd. Delta Greentech (China) Co., Ltd. 3 Sales 4,907,744 (Note d) 5.34

15 PreOptix (Jiang Su) Co. Ltd. Delta Electronics Int'l (Singapore) Pte. Ltd. 3 Sales 220,864 (Note d) 0.24

16 Delta Electronics (Japan) Inc. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Sales 240,670 (Note d) 0.26

Table 7-2


Transaction

terms



(Note c)

TransactionNumber


Relationship

(Note b)

17 Cyntec Co., Ltd. Cyntec International Limited 3 Sales 957,810$ (Note e) 1.04

18 Cyntec (Suzhou) Co. Ltd. Cyntec International Limited 3 Sales 1,265,210 (Note e) 1.38

19 Cyntec Electronics (Suzhou) Co., Ltd. Cyntec International Limited 3 Sales 2,495,437 (Note e) 2.71

20 Cyntec International Limited Cyntec Co., Ltd. 3 Sales 391,357 (Note e) 0.43

20 Cyntec International Limited Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Sales 274,941 (Note d) 0.30

0 Delta Electronics Inc. DEI Logistics (USA) Corp. 1 Accounts receivable 107,449 (Note d) 0.05

0 Delta Electronics Inc. Delta Electronics Int’l (Singapore) Pte. Ltd. 1 Accounts receivable and

other accounts receivable

1,214,853 (Note d) 0.54

0 Delta Electronics Inc. Allied Material Technology Corp. 1 Accounts receivable 598,299 (Note d) 0.27

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Dongguan) Co., Ltd. 3 Accounts receivable 1,266,821 (Note d) 0.56

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics Power (Dongguan) Co., Ltd. 3 Accounts receivable 3,590,420 (Note d) 1.60

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Jiangsu) Ltd. 3 Accounts receivable 1,563,620 (Note d) 0.70

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics Components (Wujiang) Ltd. 3 Accounts receivable 741,160 (Note d) 0.33

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Video Display System (Wujiang) Ltd. 3 Accounts receivable 566,299 (Note d) 0.25

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Chenzhou) Co., Ltd. 3 Accounts receivable 432,531 (Note d) 0.19

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Chenzhou Delta Technology Co. Ltd. 3 Accounts receivable 123,693 (Note d) 0.06

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Wuhu) Co., Ltd. 3 Accounts receivable 347,003 (Note d) 0.15

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Japan), Inc. 3 Accounts receivable 435,980 (Note d) 0.19

1 Delta Electronics Int'l (Singapore) Pte. Ltd. DEI Logistics (USA) Corp. 3 Accounts receivable 4,798,194 (Note d) 2.14

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Vivitek Corporation 3 Accounts receivable 158,125 (Note d) 0.07

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Networks, Inc. (Taiwan) 3 Accounts receivable 231,068 (Note d) 0.10

1 Delta Electronics Int'l (Singapore) Pte. Ltd. DNI Logistics (USA) Corp. 3 Accounts receivable 3,578,520 (Note d) 1.59

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Networks (Dongguan) Ltd. 3 Accounts receivable 3,319,328 (Note d) 1.48

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics Inc. 2 Accounts receivable 7,303,809 (Note d) 3.25

Table 7-3


Transaction

terms



(Note c)

TransactionNumber


Relationship

(Note b)

1 Delta Electronics Int'l (Singapore) Pte. Ltd. Deltronics (Netherlands) B.V. 3 Accounts receivable 247,210$ (Note d) 0.11

2 Delta Networks (Dongguan) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Accounts receivable 3,525,504 (Note d) 1.57

3 Delta Networks, Inc. (Taiwan) Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Accounts receivable 100,443 (Note d) 0.04

3 Delta Networks, Inc. (Taiwan) DNI Logistics (USA) Corp. 3 Accounts receivable 365,182 (Note d) 0.16

4 Delta Electronics (Dongguan) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Accounts receivable 1,956,107 (Note d) 0.87

4 Delta Electronics (Dongguan) Co., Ltd. Delta Electronics (Shanghai) Co., Ltd. 3 Accounts receivable 244,545 (Note d) 0.11

5 Delta Electronics Power (Dongguan) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Accounts receivable 4,841,958 (Note d) 2.16

5 Delta Electronics Power (Dongguan) Co., Ltd. Delta Electronics (Shanghai) Co., Ltd. 3 Accounts receivable 451,176 (Note d) 0.20

6 Delta Electronics (Jiangsu) Ltd. Delta Electronics (Shanghai) Co., Ltd. 3 Accounts receivable 2,005,613 (Note d) 0.89

6 Delta Electronics (Jiangsu) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Accounts receivable 2,987,699 (Note d) 1.33

7 Delta Electronics Components (Wujiang) Ltd. Delta Electronics (Shanghai) Co., Ltd. 3 Accounts receivable 2,116,465 (Note d) 0.94

7 Delta Electronics Components (Wujiang) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Accounts receivable 1,062,595 (Note d) 0.47

8 Delta Electro-Optics (Wujiang) Ltd. Delta Electronics Components (Wujiang) Ltd. 3 Accounts receivable 1,037,025 (Note d) 0.46

9 Delta Video Display System (Wujiang) Ltd. Delta Electronics (Shanghai) Co., Ltd. 3 Accounts receivable 634,678 (Note d) 0.28

9 Delta Video Display System (Wujiang) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Accounts receivable 317,682 (Note d) 0.14

10 Delta Electronics (Wuhu) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Accounts receivable 1,101,176 (Note d) 0.49

11 Delta Electronics (Chenzhou) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Accounts receivable 796,779 (Note d) 0.36

12 Chenzhou Delta Technology Co. Ltd. Delta Electronics Power (Dongguan) Co., Ltd. 3 Accounts receivable 233,013 (Note d) 0.10

12 Chenzhou Delta Technology Co. Ltd. Delta Electronics (Chenzhou) Co., Ltd. 3 Accounts receivable 546,693 (Note d) 0.24

13 Delta Electronics (Shanghai) Co., Ltd. Delta Greentech (China) Co., Ltd. 3 Accounts receivable 3,539,466 (Note d) 1.58

14 Delta Electronics (Japan) Inc. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Accounts receivable 135,393 (Note d) 0.06

15 Cyntec Co., Ltd. Cyntec International Limited 3 Accounts receivable 310,035 (Note e) 0.14

16 Cyntec (Suzhou) Co. Ltd. Cyntec International Limited 3 Accounts receivable 349,416 (Note e) 0.16

Table 7-4


Transaction

terms



(Note c)

TransactionNumber


Relationship

(Note b)

17 Cyntec Electronics (Suzhou) Co., Ltd. Cyntec International Limited 3 Accounts receivable 1,021,629$ (Note e) 0.46

18 Cyntec International Limited Cyntec Co., Ltd. 3 Accounts receivable 141,039 (Note e) 0.06

18 Cyntec International Limited Delta Electronics Int'l (Singapore) Pte. Ltd. 3 Accounts receivable 133,243 (Note d) 0.06

19 Cyntec International Limited Cyntec (Suzhou) Co. Ltd. 3 Other accounts receivable 185,160 (Note f) 0.08

19 Cyntec International Limited Cyntec Electronics (Suzhou) Co., Ltd. 3 Other accounts receivable 925,800 (Note f) 0.41

20 Eltek Power Systems AS Eltek MEA DMCC 3 Other accounts receivable 176,567 (Note f) 0.08

20 Eltek Power Systems AS Eltek Management Invest AS 3 Other accounts receivable 182,952 (Note f) 0.08

20 Eltek Power Systems AS Eltek s.r.o. 3 Other accounts receivable 241,661 (Note f) 0.11

20 Eltek Power Systems AS Eltek As 3 Other accounts receivable 277,627 (Note f) 0.12

20 Eltek Power Systems AS Eltek Sistemas de Energia Ind. Com. SA 3 Other accounts receivable 398,005 (Note f) 0.18

21 Eltek Power Ltd. Eltek Power Systems AS 3 Other accounts receivable 132,712 (Note f) 0.06

22 Eltek Inc. Eltek Power Systems AS 3 Other accounts receivable 728,075 (Note f) 0.32

23 Eltek Power Pte Ltd. Eltek Power Systems AS 3 Other accounts receivable 204,052 (Note f) 0.09

24 Eltek Ventures As Eltek Power Systems AS 3 Other accounts receivable 279,352 (Note f) 0.12

Note a: The transaction information of the Company and the consolidated subsidiaries should be noted in column “Number”. The number means:

(1) Parent company is ‘0’

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

Note b: Relationship between transaction company and counterparty is classified into the following three categories:

(1) Parent company to subsidiary

(2) Subsidiary to parent company.

(3) Subsidiary to subsidiary

consolidated total operating revenues for income statement accounts.

Note d: There is no similar transaction to compare with. It will follow the agreed price and transaction terms and all the credit terms are 75 days.

Note e: There is no similar transaction to compare with. It will follow the agreed price and transaction terms and all the credit terms are 60~90 days.

Note f: Lending of capital

Note g: Only related party transactions in excess of $100 million are disclosed.

Note c: Regarding 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 and based on accumulated transaction amount for the period to

Table 7-5

Balance as at June

30, 2015

Balance as at

December 31,

2014

Number of sharesOwnership

(%)Book value

Delta Electronics Inc. Delta International Holding Ltd. Cayman Islands Equity investments 8,922,118$ 8,922,118$ 67,680,000 94.00 62,979,028$ 2,407,250$ 2,376,162$ (Note i)

Delta Electronics Inc. Delta Networks Holding Ltd. Cayman Islands Equity investments 1,377,206 1,377,206 39,800,000 100.00 12,629,425 883,284 962,559 (Note i)

Delta Electronics Inc. PreOptix (Hong Kong) Co. Ltd. Hong Kong Equity investments 159,935 159,935 5,250,000 39.62 209,743 966)( 383)(

Delta Electronics Inc. Cyntec Co., Ltd. Taiwan Research, development,

manufacturing and sales of

thin film optic-electronic

devices

12,067,931 12,067,931 1,139,489,778 100.00 27,630,913 1,695,862 1,574,652 (Note i)

Delta Electronics Inc. Delta Electronics Capital Company Taiwan Equity investments 2,500,000 2,500,000 250,000,000 100.00 2,809,891 4,299)( 4,299)(

Delta Electronics Inc. Delta Electronics Int'l (Singapore) Pte.

Ltd.

Singapore Sales of electronics products 7,270 7,270 300,000 100.00 9,191,981 2,884,485 2,385,616 (Note i)

Delta Electronics Inc. DelBio Inc. Taiwan Manufacturing, wholesale

and retail of medical

equipment

800,000 540,000 80,000,000 100.00 130,967 41,703)( 41,703)(

Delta Electronics Inc. Allied Material Technology Corp. Taiwan Manufacturing and sales of

color filter and lease services,

etc.

2,113,913 2,710,152 211,393,725 99.97 2,177,683 33,780 33,770

Delta Electronics Inc. Vitor Technology Inc. Taiwan Research, designing,

development, manufacturing

and sales of intelligent robot

systems and automation

engineering, etc.

79,575 - 2,800,000 100.00 72,005 7,570)( 7,570)(

Delta Electronics Inc. NeoEnergy Microelectronics, Inc. Taiwan Designing and experimenting

on integrated circuit and

information software services

13,135 332,442 1,313,530 83.11 59,609)( 26,281)( 21,843)(

Delta Electronics Inc. Delta Electronics (Thailand) Public Co.,

Ltd.

Thailand Manufacturing and sales of

electronic products

114,615 114,615 69,128,140 5.54 6,520,409 3,068,238 613,879 (Note i and

Note j)

Delta Electronics Inc. Amita Technologies, Inc. Taiwan Manufacturing of lithium

polymer batteries and related

systems

247,066 426,848 8,197,200 26.93 254,470 12,466 920)(

Delta Electronics Inc. Deltronics (Netherlands) B.V. Netherlands Sales of electronic products 900,603 36,723 25,674,091 100.00 951,200 3,085)( 17,342)( (Note i)

Delta Electronics Inc. SYN-TEC AUTOMATION CO., LTD. Taiwan Manufacturing of electronic

parts, etc.

110,250 110,250 11,025,000 70.00 75,123 18,880)( 13,216)(

Delta Electronics Inc. Delta Green Life Co., Ltd. (Formerly:

Vivitek Corporation)

Taiwan Manufacturing of electronic

parts, etc.

135,083 135,083 23,650,000 100.00 112,208 18,054)( 18,054)(

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


Table 8



Net profit (loss)

of the investee for

the six-month

period ended June

30, 2015

Investment

income (loss)

recognized

by the Company

for the six-month

period ended

June 30, 2015

NoteInvestorInvestee

Location Main business activities

Initial investment amount Shares held as at June 30, 2015

Table 8-1

Balance as at June

30, 2015

Balance as at

December 31,

2014


(%)Book value

Net profit (loss)

of the investee for

the six-month

period ended June

30, 2015

Investment

income (loss)

recognized

by the Company

for the six-month

period ended

June 30, 2015




Delta International Holding Ltd. Delta Electronics International Ltd. Malaysia Sales of electronic products 61,720$ 61,720$ 2,000,000 100.00 4,204,322$ 109,641$ 110,887$ (Note a and

Note i)

Delta International Holding Ltd. Delta Electronics (H.K.) Ltd. Hong Kong Equity investments 10,134,334 10,134,334 2,549,297,600 100.00 31,653,102 2,106,080 2,106,080 (Note a)

Delta International Holding Ltd. DAC Holding (Cayman) Ltd. Cayman Islands Equity investments 498,088 498,088 22,200,000 100.00 354,763 13,097 13,097 (Note a)

Delta International Holding Ltd. Trillion Science, Inc. U.S.A Research on special chemical

materials used in precision

coating process

555,480 555,480 9,000,000 19.78 19,423 65,700)( 14,970)( (Note a)

Delta International Holding Ltd. Delta Electronics (Japan), Inc. Japan Sales of power products,

display solution products,

electronic components,

industrial automation products

and their materials

88,227 88,227 5,600 100.00 260,593 47,322 47,322 (Note a)

Delta International Holding Ltd. Digital Projection International Ltd. Britain Equity investments 353,049 353,049 19,249,667 41.00 251,176 74,778)( 22,732)( (Note a)

Delta International Holding Ltd. PreOptix (HongKong) Co., Ltd. Hong Kong Equity investments 246,880 246,880 8,000,000 60.38 304,872 846)( 511)( (Note a)

Delta International Holding Ltd. Delta Power Sharp Ltd. Hong Kong Operations management and

engineering services

39,909 39,909 10,000,000 100.00 59,325 16)( 16)( (Note a)

Delta International Holding Ltd. DEI Logistics (USA) Corp. U.S.A Warehousing and logistics

services

15,430 15,430 500,000 100.00 122,919 6,506 6,506 (Note a)

Delta International Holding Ltd. Ace Pillar Holding Ltd. Samoa Equity investments 421,408 421,408 2,858,718 100.00 488,071 13,553 7,079 (Note a)

Delta International Holding Ltd. Drake Overseas Financial Investment

Ltd.

British Virgin

Islands

Equity investments - 5,311,510 - - - - 13,378)( (Note a)

Delta International Holding Ltd. Drake Investment (H.K.) Ltd. Hong Kong Equity investments 5,311,510 - 304,504,306 100.00 6,086,290 174,286 105,589 (Note a)

Delta International Holding Ltd. Delta Electronics International Mexico

SA DE C.V.

Mexico Sales of power management

system of industrial


telecommunications

equipment

- - 1 - - 7,428)( - (Note a)

Delta International Holding Ltd. Vivitek Corporation U.S.A Sales of projector products 46,290 46,290 9,000,000 100.00 55,558 19,304)( 19,304)( (Note a)

Delta International Holding Ltd. Delta Greentech SGP Pte Ltd. Singapore Equity investments 861,940 861,940 12,175,470 100.00 867,513 28,458 9,047 (Note a)

Delta International Holding Ltd. Delta Electronics Europe Limited Britain Maintenance centre and

providing support service

112,948 112,948 500,000 100.00 109,694 424)( 424)( (Note a)

Table 8-2

Balance as at June

30, 2015

Balance as at

December 31,

2014


(%)Book value

Net profit (loss)

of the investee for

the six-month

period ended June

30, 2015

Investment

income (loss)

recognized

by the Company

for the six-month

period ended

June 30, 2015




Delta International Holding Ltd. Boom Treasure Limited Hong Kong Equity investments 2,688,551$ 2,688,551$ 1 100.00 2,686,209$ 88,462$ 24,310$ (Note a)

Delta Electronics (H.K.) Ltd. Delta Electronics International Mexico

SA DE C.V.

Mexico Sales of power management

system of industrial


telecommunications

equipment

32,403 32,403 252,002 100.00 971 7,428)( 7,428)( (Note b)

Drake Overseas Financial Investment Ltd. Drake Investment (H.K.) Ltd. Hong Kong Equity investments - 1,204,744 - - - - - (Note c)

Delta International Holding Ltd. Deltronics (Netherlands) B.V. Netherlands Sales of electronic products 1 - 260,416,667 0.00 18,385 3,085)( 18,578 (Note a)

Delta Networks Holding Ltd. Delta Networks, Inc. Cayman Islands Equity investments 5,488,728 5,488,728 1,196,886,000 100.00 5,162,673 864,109 861,249 (Note d)

Delta Networks, Inc. Delta Networks (H.K.) Limited Hong Kong Equity investments 1,080,100 1,080,100 35,000,000 100.00 2,803,597 457,278 457,278 (Note e)

Delta Networks, Inc. Delta Networks, Inc. (Taiwan) Taiwan Manufacturing and sales of

networking system and

peripherals

466,816 466,816 50,040,838 100.00 2,133,568 139,313 139,285 (Note e)

Delta Networks, Inc. Delta Networks International Ltd. Malaysia Trading of networking system

and peripherals

30,860 30,860 1,000,000 100.00 237,064 30,151 267,695 (Note e)

Delta Networks, Inc. DNI Logistics (USA) Corp. U.S.A Trading of networking system

and peripherals

17,160 17,160 500,000 100.00 49,908 1,943 1,943 (Note e)

Cyntec Co., Ltd. Fairview Assets Ltd. Cayman Islands Equity investments 1,112,600 1,112,600 32,620,062 100.00 21,955,242 1,730,733 1,730,733 (Note f)

Fairview Assets Ltd. Grandview Holding Ltd. Cayman Islands Equity investments 6,393,575 6,393,575 207,180,000 100.00 14,228,700 1,729,517 1,729,517 (Note g)

Grandview Holding Ltd. Cyntec International Limited Malaysia Trading 154,300 154,300 5,000,000 100.00 7,459,837 1,592,166 1,575,402 (Note h and

Note i)

Grandview Holding Ltd Cyntec Holding (H.K.) Ltd. Hong Kong Equity investments 6,239,275 6,239,275 202,180,000 100.00 6,764,458 153,612 153,612 (Note h)

Deltronics (Netherlands) B.V.(DEN) Eltek Power Systems AS Norway Equity investments 15,223,268 - 329,205,923 100.00 15,345,393 143,997 40,195 (Note k)

Eltek Power Systems AS Eltek Valere Holding AS Norway Equity investments 374,580 - 96,092,530 96.37 374,580 143,997 40,195 (Note l and

Note m)

Eltek Power Systems AS Networks Holding AS Norway Equity investments 835 - 1,100 100.00 835 - - (Note l)

Eltek Power Systems AS Eltek Venture AS Norway Equity investments 706 - 7,630 100.00 706 - - (Note l)

Table 8-3

Balance as at June

30, 2015

Balance as at

December 31,

2014


(%)Book value

Net profit (loss)

of the investee for

the six-month

period ended June

30, 2015

Investment

income (loss)

recognized

by the Company

for the six-month

period ended

June 30, 2015




Eltek Power Systems AS Eltek Management Invest AS Norway Equity investments 29,860$ -$ 2,402,043 100.00 29,860$ -$ -$ (Note l)

Note a: Investment income / loss recognized by Delta International Holding Ltd.

Note b: Investment income / loss recognized by Delta Electronics (H.K.) Ltd.

Note c: Investment income / loss recognized by Drake Overseas Financial Investment Ltd.

Note d: Investment income / loss recognized by Delta Networks Holding Ltd.

Note e: Investment income / loss recognized by Delta Networks, Inc.

Note f: Investment income / loss recognized by Cyntec Co., Ltd.

Note g: Investment income / loss recognized by Fairview Assets Ltd.

Note h: Investment income / loss recognized by Grandview Holding Ltd.

Note i: The investment income /loss is net of the elimination of intercompany transactions.

Note j: The weighted average combined ownership percentage of 20.01%, the investment income /loss is net of the elimination of intercompany transactions.

Note k: Investment income / loss recognized by Deltronics (Netherlands) B.V.

Note l: Investment income / loss recognized by Eltek Power Systems AS.

Note m: Eltek Management Invest AS holds 3,618,016 shares in Eltek Valere Holding AS, which is 3.63% and the shareholding ratio together with Eltek Power Systems AS is 100%.

Table 8-4

Remitted to

Mainland China

Remitted back

to Taiwan

Delta Electronics (Dongguan) Co.,

Ltd.

Manufacturing and sales of transformers and power

supplies

3,018,417$ Invested by DHK 2,074,748$ -$ -$ 2,074,748$ 239,863$ 94.00 221,679$ 4,210,335$ 298,108$ (Note c and Note v)

Delta Greentech (China) Co., Ltd. Manufacturing and sales of uninterruptible power

supply

2,826,936 Invested by DIH, Ace, Drake

and DGSG

9,008,773 - - 9,008,773 379,673 90.16 328,661 4,489,541 - (Note d and Note u)

Delta Electronics Power

(Dongguan) Co., Ltd.

Manufacturing and sales of power supplies 1,299,206 Invested by DHK 522,151 - - 522,151 249,307 94.00 234,353 3,067,593 414,634 (Note f and Note v)

Delta Electronics (Shanghai) Co.,

Ltd.

Product design and management consulting service, etc. 3,947,607 Invested by DHK - - - - 450,855 94.00 421,467 6,421,408 - (Note j and Note v)

Delta Electronics (Wuhu) Co., Ltd. Manufacturing and sales of power supplies and

transformers

4,135,240 Invested by DHK 174,050 - - 174,050 209,859 94.00 197,316 4,469,999 - (Note k and Note v)

Delta Electronics (Chenzhou) Co.,

Ltd.

Manufacturing and sales of power supplies and

transformers

1,944,180 Invested by DHK - - - - 124,919 94.00 120,927 2,538,977 - (Note m and Note v)

Delta Electronics (Jiangsu) Ltd. Manufacturing and sales of power supplies 1,234,400 Invested by DHK 638,185 - - 638,185 456,209 51.70 244,197 2,033,167 - (Note v)

Delta Electronics Components

(Wujiang) Ltd.

Manufacturing and sales of power supplies 2,740,677 Invested by DHK 638,185 - - 638,185 682,729 51.70 352,735 2,739,984 - (Note g and Note v)

Delta Electro-Optics (Wujiang) Ltd. Manufacturing and sales of peripherals and electronic

control equipments.

894,940 Invested by DHK 398,866 - - 398,866 27,308)( 51.70 95,807 1,377,131 54,445 (Note h and Note v)

Delta Video Display System

(Wujiang) Ltd.

Manufacturing and sales of various projectors 894,940 Invested by DHK 207,410 - - 207,410 93,928 51.70 48,721 811,507 - (Note I and Note v)

Delta Electronics (Wujiang)

Trading Co., Ltd.

Installation, consulting and trading of electronic products 61,720 Invested by DHK 11,603 - - 11,603 1,315 94.00 1,236 225,263 - (Note q and Note v)

Delta Green (Tianjin) Industries

Co., Ltd

Manufacturing and sales of transformers and bluetooth

module

698,979 Invested by DHK 958,215 - - 958,215 24,783)( 94.00 38,021)( 777,119 - (Note p and Note v)

Delta Networks (Dongguan) Ltd. Manufacturing and sales of other radio transmission

apparatus incorporating reception apparatus and other

radio-broadcast receivers, combined with sound

recording or reproducing apparatus

1,080,100 Invested by DNHK 1,379,638 - - 1,379,638 466,110 100.00 466,110 2,702,931 678,920 (Note e and Note w)

Delta Electronics Inc.Information on investments in Mainland China－Basic information



Note

Accumulated

amount of

remittance from

Taiwan to

Mainland China as

of June 30, 2015

Net income of

investee for the six-

month period ended

June 30, 2015

Ownership held

by Company

(direct or

indirect)

Investment

income (loss)

recognised by

the Company for

the six-month

period ended

June 30, 2015

(Note t)

Book value of

investments in

Mainland China

as of June 30,

2015

Accumulated

amount of

investment

income remitted

back to Taiwan

as of June 30,

2015

Amount remitted from Taiwan to

Mainland China/Amount remitted

back to Taiwan for the six-month

period ended June 30, 2015

Investee in Mainland

China

Main business activities

Paid-in

capital

Investment

method

Accumulated

amount of

remittance from

Taiwan to

Mainland China

as of January 1,

2015

Table 9-1

Remitted to

Mainland China

Remitted back

to Taiwan

Note

Accumulated

amount of

remittance from

Taiwan to

Mainland China as

of June 30, 2015

Net income of


month period ended

June 30, 2015

Ownership held

by Company

(direct or

indirect)

Investment

income (loss)

recognised by

the Company for

the six-month

period ended

June 30, 2015

(Note t)

Book value of

investments in

Mainland China

as of June 30,

2015

Accumulated

amount of

investment

income remitted

back to Taiwan

as of June 30,

2015






China


Paid-in

capital

Investment

method

Accumulated

amount of

remittance from

Taiwan to

Mainland China

as of January 1,

2015

Delta Networks (Shanghai) Ltd. Design of computer software 61,720$ Invested by DNHK 87,471$ -$ -$ 87,471$ 2,711$ 100.00 2,711$ 86,548$ -$ (Note l and Note w)

Delta Networks (Xiamen) Ltd. Operation of radio transmission apparatus, and

automatic data processing, reception, conversion and

transmission or regeneration of voice, images or other

data of the machine, including switches and outers, with

a special program to control a computer or word

processor with memory business

21,602 Invested by DNHK 21,602 - - 21,602 666 100.00 666 4,348 - (Note w)

Cyntec (Suzhou) Co. Ltd Research, development, manufacturing and sales of new-

type electronic components and wholesale, import and

export of similar products

2,005,900 Invested by CHK 1,896,729 - - 1,896,729 115,312 100.00 115,312 2,104,194 - (Note n and Note x)

Cyntec Electronics (Suzhou) Co.,

Ltd.

Research, development, manufacturing and sales of new-

type electronic components (chip components, sensing

elements, hybrid integrated circuits) and wholesale,

import and export of similar products

4,227,820 Invested by CHK 4,227,820 - - 4,227,820 43,145 100.00 43,145 4,692,134 - (Note x)

PreOptix (Jiang Su) Co. Ltd. Manufacturing and sales of lenses and optical engines for

projectors

408,895 Invested by PHK 394,082 - - 394,082 310)( 96.38 296)( 489,963 - (Note o and Note y)

Wuhu Delta Technology Co., Ltd. Manufacturing and sales of transformers and power

supplies

146,822 Invested by DWH - - - - 6,223 94.00 5,850 235,031 - (Note r)

Delta Energy Technology (Wuhu)

Co., Ltd.

Research and development of energy-saving technology,

energy-saving equipment, energy management system

and technology consulting service, etc.

9,954 Invested by DPEC and DWH - - - - 866 94.00 814 8,522 - (Note r)

Chenzhou Delta Technology Co.

Ltd.

Manufacturing and sales of transformers and power

supplies

126,914 Invested by DCZ - - - - 29,996 94.00 29,348 289,082 - (Note r)

Delta Energy Technology

(Chenzhou) Co., Ltd.



and technology consulting service, etc.

9,954 Invested by DPEC and DCZ - - - - 108 94.00 102 9,317 - (Note r)


(Dongguan) Co., Ltd.



and technology consulting service, etc

29,862 Invested by DPEC and DDG - - - - 6,615 94.00 6,219 153,258 - (Note r)

Delta Energy Technology (Wujiang)

Co., Ltd.




19,908 Invested by DPEC and DWO - - - - 172 94.00 161 19,098 - (Note r)






49,770 Invested by DPEC and DGC - - - - 2,106)( 90.54 1,907)( 36,269 - (Note r)

DelBio (WUJIANG)., Ltd. Manufacturing, wholesale and retail of medical

equipment

92,580 Invested by DelBio 61,720 30,860 - 92,580 436 100.00 436 70,595 - (Note z)

Delta Electronics (Pingtan) Co.,

Ltd.

Wholesale of electronic and energy-saving equipment 24,885 Invested by DHK 24,174 - - 24,174 1,415)( 94.00 1,330)( 21,641 - (Note v)

Table 9-2

Remitted to

Mainland China

Remitted back

to Taiwan

Note

Accumulated

amount of

remittance from

Taiwan to

Mainland China as

of June 30, 2015

Net income of


month period ended

June 30, 2015

Ownership held

by Company

(direct or

indirect)

Investment

income (loss)

recognised by

the Company for

the six-month

period ended

June 30, 2015

(Note t)

Book value of

investments in

Mainland China

as of June 30,

2015

Accumulated

amount of

investment

income remitted

back to Taiwan

as of June 30,

2015






China


Paid-in

capital

Investment

method

Accumulated

amount of

remittance from

Taiwan to

Mainland China

as of January 1,

2015

Eltek Energy Technology Manufacturing and sales of power supplies and others 228,364$ Invested by Eltek Valere

Holding AS

-$ 1,156,647$ -$ 1,156,647$ 5,891)($ 100.00 5,891)($ 58,208$ -$ (Note aa)

Note a: The capital was translated based on the capital certified report of the investee companies into New Taiwan Dollars at the average exchange rate of RMB 6.2005 to US$1 and RMB 4.9770 to NT$1.

Note b: The accumulated remittance as of January 1, 2015, remitted or collected this period, accumulated remittance as of June 30, 2015 and investment income remitted back as of June 30, 2015 was translated into New Taiwan Dollars at the average exchange rate of NTD 30.86 to US$1 at the balance sheet date.

Note c: Except for the facility of US$67,231 permitted by Investment Commission, the capitalization of earnings of US$27,081 permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.

Note d: Except for the facility of US$291,924 permitted by Investment Commission, the capitalization of earnings of US$980 permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.

Note e: Except for the facility of US$44,706 permitted by Investment Commission, the capitalization of earnings of US$11,312 permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.

Note f: Except for the facility of US$16,920 permitted by Investment Commission, the capitalization of earnings of US$22,654 permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.

Note g: Except for the facility of US$112,004 permitted by Investment Commission, the capitalization of earnings of US$25,235 permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.

Note h: Except for the facility of US$99,828 permitted by Investment Commission, the capitalization of earnings of US$2,068 permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.

Note i: Except for the facility of US$44,388 permitted by Investment Commission, the capitalization of earnings of US$8,272 permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.

Note j: The capitalization of earnings of US$110,401 permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.

Note k: Except for the facility of US$5,640 permitted by Investment Commission, the capitalization of earnings of US$120,320 permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.

Note l: Except for the facility of US$2,834 permitted by Investment Commission, the capitalization of earnings of US$298 permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.

Note m: The earnings transferred to investment in Delta Electronics (Chenzhou) Co., Ltd. is US$59,220 thousand approved by the Investment Commission of the Ministry of Economic Affairs (MOEA) is not included in the Company's investments in Mainland China.

Note n: Except for the facility of US$198,462 permitted by Investment Commission, the capitalization of earnings of US$4,000 permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.

Note o: Except for the facility of US$7,520 permitted by Investment Commission, the investment of US$5,250 by PreOptix Co., Ltd. was permitted by Investment Commission.

Note p: Except for the facility of US$31,050 permitted by Investment Commission, the capitalization of earnings of US$265 permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.

Note q: Except for the facility of US$376 permitted by Investment Commission, the capitalization of earnings of US$1,504 permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.

Note r: According to the regulations of the Investment Commission, the reinvestment of the investee companies in Mainland China is not required to obtain the approval of the Investment Commission; thus the investment amounts are excluded from the calculation of the Company’s ceiling of investment amount in Mainland China.

Note s: Delta Networks (Wujiang) Ltd., an indirect investment of the Company, was liquidated on June 30, 2011. Return of capital due to liquidation of US$18,000 remitted back had been granted for future reference by Investment Comission on August 28, 2012. The Company’s indirect investment and earnings turned into investment in

Delta Networks (Wujiang) Ltd., originally approved by the Investment Commission of MOEA, were US$17,389 and US$10,802, respectively.

Note t: Investment income (loss) recognition is based on financial statements that are audited and attested by R.O.C. parent company's CPA.

Note u: Jointly invested through Delta International Holding Ltd., Ace Pillar Holding Co., Ltd., Drake Investment (H.K.) Ltd., Delta Greentech SGP Pte Ltd and Boom Treasure Limited.

Note v: Invest through Delta Electronics (H.K.) Ltd.

Note w: Invest through Delta Networks (H.K.) Ltd.

Note x: Invest through Cyntec Holding (H.K.) Ltd.

Note y: Invest through PreOptix (Hong Kong) Co., Ltd.

Note aa: Invest through Deltronics (Netherlands) B.V.

Note z: Invest through DelBio Inc.

Table 9-3

Company name

Accumulated amount

remitted from Taiwan to

Mainland China as of June

30, 2015

Investment amount

approved by the

Investment Commission

of Ministry of Economic

Affairs (MOEA)

Ceiling of investments

in Mainland China

imposed

by the Investment

Commission of MOEA

Delta Electronics, Inc. (Notes b and c) $ 16,302,987 $ 27,080,880 $ -

Cyntec Co., Ltd. 6,124,549 6,124,549 12,442,817

DelBio Inc. (Note d) 92,580 123,440 78,592

Note a: The accumulated amount remitted out of Taiwan to Mainland China and investment amount approved by the investment commission was translated into New Taiwan Dollars at the average exchange rate of NTD 30.86 to US$1 at the balance sheet date.

Note b: The investment income of US$22,000, US$18,000, US$10,509 and US$14,351 were remitted back on March 11, 2011, June 27, 2012, August 14, 2012, June 24, 2009 and December 29, 2005, respectively, from the investee companies in Mainland China and was permitted by Investment Commission on August 3,

2012, August 28, 2012, July 17, 2009 and January 6, 2006, respectively, which are deductible from the Company’s accumulated amount remitted out of Taiwan to Mainland China.

Note c: According to “Regulation Governing the Approval of Investment or Technical Cooperation in Mainland China”, the Company and Cyntec Co., Ltd. obtained the approval of operation headquarters from Industrial Development Bureau of Ministry of Economic Affairs. There is no ceiling of investment amount.

Note d: Ceiling of $78,592 is calculated based on DelBio Inc.'s net assets as of June 30, 2015. However, ceiling was $123,440 at the time when applying for investments.

The significant purchases, sales, accounts payable and accounts receivable that the Company directly conducted with investee companies in Mainland China as well as those that the Company indirectly conducted with investee companies in Mainland China through Delta Electronics International Ltd. (DEIL-Labuan), Delta

Electronics Int'l (Singapore) Pte. Ltd. (DEIL-SG), Delta Networks International Ltd. (DNIL-Labuan) and Cyntec International Ltd. (CIL-Labuan) for the six-month period ended June 30, 2015 are shown in Notes 13.(1) G and H.

Table 9-4

delta electronics, inc. and subsidiaries · delta electronics, inc. and subsidiaries consolidated...

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