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FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2014 AND 2015 (With Independent Accountants’ Review Report Thereon)

See accompanying notes to consolidated financial statements.

Reviewed only, not audited in accordance with generally accepted auditing standards as of September 30, 2014 and 2015 FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

SEPTEMBER 30, DECEMBER 31, 2014 AND SEPTEMBER 30, 2015

(Expressed in thousands of New Taiwan Dollars)

September 30, 2014

(Adjusted)

December 31, 2014

(Adjusted) September 30,

2015 Assets

Current assets：

Cash and cash equivalents (note 6(1)) $ 6,904,850 5,392,825 26,810,124 Available-for-sale financial assets－currents (note 6(2)) 67,478,498 83,956,324 65,410,931 Notes receivable (note 6(3)) 1,299,835 1,026,818 1,741,906 Accounts receivable, net (note 6(3)) 6,751,061 7,350,138 7,037,200 Accounts receivable－related parties (notes 6(3) and 7) 5,081,899 4,225,994 3,892,038

Other receivables (note 6(3)) 974,856 1,052,161 1,221,241 Other receivables－related parties (notes 6(3) and 7) 30,292,328 29,179,344 20,007,781

Inventories (note 6(4)) 22,296,652 22,872,390 18,440,697 Other current assets 5,780,854 5,082,721 5,660,311

Total current assets 146,860,833 160,138,715 150,222,229

Non-current assets：

Available-for-sale financial assets－non-current (note 6(2)) 21,094,842 10,729,587 4,834,937 Financial assets carried at cost－non-current 2,437,768 2,437,768 2,462,768

Investments accounted for using equity method (notes 6(5) and 8) 158,328,389 160,240,810 171,427,025 Property, plant and equipment (notes 6(6), 7 and 8) 83,005,234 83,997,627 81,586,955 Intangible assets 593,677 601,282 550,167 Deferred tax assets 1,674,487 1,677,266 1,598,535 Other assets (notes 6(3), 7 and 8) 13,350,613 10,979,936 9,595,519

Total non-current assets 280,485,010 270,664,276 272,055,906 Total assets $ 427,345,843 430,802,991 422,278,135

September 30,

2014 (Adjusted)

December 31, 2014

(Adjusted) September 30,

2015 Liabilities and Equity

Current liabilities：

Short-term borrowings (notes 6(7) and 8 ) $ 22,150,049 13,767,560 17,746,611 Accounts payable 2,019,812 5,454,975 1,996,627 Accounts payable－related parties (note 7) 8,688,509 7,358,639 6,294,558

Other payables 1,249,403 1,270,407 4,802,662 Other payables－related parties (note 7) 837,653 937,159 3,009,414

Current portion of bonds payable (note 6(9)) 2,997,868 7,993,512 13,536,885 Current portion of long-term debts (notes 6(8) and 8) 2,130,002 1,515,645 3,630,090 Other current liabilities (note 7) 11,587,339 9,625,843 12,979,272

Total current liabilities 51,660,635 47,923,740 63,996,119

Non-current liabilities：

Bonds payable (note 6(9)) 56,900,790 51,913,453 43,393,938 Long-term debts (notes 6(8) and 8) 26,796,029 26,944,995 22,392,568 Deferred tax liabilities 8,712,571 9,412,161 11,246,254 Accrued pension liabilities 9,039,791 8,985,137 8,580,758 Other liabilities 393,208 473,295 360,410

Total non-current liabilities 101,842,389 97,729,041 85,974,928

Total liabilities 153,503,024 145,652,781 149,971,047

Equity attributable to owners of the parent (notes 6(11)(12)): Common stock 63,657,408 63,657,408 63,657,408 Capital surplus 11,277,996 11,277,988 11,443,725 Retained earnings Legal reserve 43,339,205 43,339,205 45,138,549 Special reserve 39,078,218 39,078,218 43,706,916 Unappropriated retained earnings 46,649,356 46,066,241 53,851,311 Total retained earnings 129,066,779 128,483,664 142,696,776 Other components of equity 69,840,636 81,731,150 54,509,179

Total equity 273,842,819 285,150,210 272,307,088

Total Liabilities and Equity $ 427,345,843 430,802,991 422,278,135


Reviewed only, not audited in accordance with generally accepted auditing standards FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2014 AND 2015

(Expressed in thousands of New Taiwan Dollars, except for earnings per share)

For the three-month periods ended

September 30, For the nine-month periods ended

September 30, 2014 (Adjusted) 2015 2014 (Adjusted) 2015

Operating revenues (notes 6(14) and 7) $ 55,340,879 46,995,229 166,359,729 145,699,706

Operating costs (notes 6(4)(10)(12)(15) and 7) 51,192,709 41,560,996 154,269,515 128,635,155

Gross profit 4,148,170 5,434,233 12,090,214 17,064,551

Operating expenses (notes 6(10)(12)(15) and 7)：

Selling expenses 1,306,027 1,325,871 3,894,942 4,076,322 Administrative expenses 1,239,073 1,126,933 3,598,862 3,278,251 Research and development expenses 221,013 209,962 675,489 605,000

Total operating expenses 2,766,113 2,662,766 8,169,293 7,959,573

Operating income 1,382,057 2,771,467 3,920,921 9,104,978

Non-operating income and expenses (notes 6(5)(16) and 7)：

Other income 2,500,004 3,303,900 2,798,323 3,520,291 Other gains and losses 514,339 1,633,304 3,233,209 1,490,772 Finance costs (394,450) (326,989) (1,168,415) (1,021,720) Recognized share of profit of associates and joint ventures

accounted for using equity method, net 4,026,341

4,363,623

11,983,514

15,332,248

Total non-operating income and expenses 6,646,234 8,973,838 16,846,631 19,321,591

Income before income tax 8,028,291 11,745,305 20,767,552 28,426,569

Less: income tax expense (note 6(11)) 540,543 1,215,226 2,361,550 3,391,698

Net income 7,487,748 10,530,079 18,406,002 25,034,871

Other comprehensive income (loss) (note 6(11))：

Items that could be reclassified subsequently to profit or loss Exchange differences arising on translation foreign operations 1,564,369 4,845,686 1,174,044 2,863,694 Unrealized gains (losses) on available-for-sale financial assets (11,346,590) (20,217,676) 3,032,245 (24,291,149) Share of other comprehensive income of associates and joint

ventures accounted for using equity method (2,428,140)

(2,760,473)

1,627,137

(5,210,061)

Income tax expense related to components of other comprehensive income

(191,196)

(833,342)

(169,419)

(584,455)

Total items that could be reclassified subsequently to profit or loss

(12,401,557)

(18,965,805)

5,664,007

(27,221,971)

Total other comprehensive income (loss), net after tax (12,401,557) (18,965,805) 5,664,007 (27,221,971)

Total comprehensive income (loss) (4,913,809) (8,435,726) 24,070,009 (2,187,100)

Basic earnings per share (note 6(13))

before income tax $ 1.26 1.85 3.26 4.47

after income tax $ 1.18 1.65 2.89 3.93



CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2014 AND 2015


Equity Attributable to Owners of the Parent Retained Earnings Others

Common stock

Capital surplus

Legal reserve

Special reserve

Unappropriated retained earnings

Exchange difference on translation of

foreign operations

Unrealized gains (losses) on

available-for-sale financial assets

Gains (losses) on effective portion of

cash flow hedges

Total Equity

Balance as of January 1, 2014 $ 63,657,408 11,275,671 41,267,621 33,508,131 48,550,893 558,916 63,615,604 2,109 262,436,353 Effect of retrospective application and adjustment - - - - (570,961) - - - (570,961)Adjusted balance, January 1, 2014 63,657,408 11,275,671 41,267,621 33,508,131 47,979,932 558,916 63,615,604 2,109 261,865,392 Net income for the period - - - - 18,406,002 - - - 18,406,002 Other comprehensive income (loss) for the period, net after tax - - - - - 1,004,625 4,663,226 (3,844) 5,664,007 Total comprehensive income (loss) for the period - - - - 18,406,002 1,004,625 4,663,226 (3,844) 24,070,009 Legal reserve - - 2,071,584 - (2,071,584) - - - - Special reserve - - - 5,570,087 (5,570,087) - - - - Cash dividends - - - - (12,094,907) - - - (12,094,907)Changes in capital surplus Changes in equity of associates and joint ventures accounted for using equity

method -

2,546

-

-

-

-

-

-

2,546

Other - (221) - - - - - - (221)

Balance as of September 30, 2014 (Adjusted) $ 63,657,408 11,277,996 43,339,205 39,078,218 46,649,356 1,563,541 68,278,830 (1,735) 273,842,819

Balance as of January 1, 2015 $ 63,657,408 11,277,988 43,339,205 39,078,218 46,807,749 5,416,784 76,317,462 (3,096) 285,891,718 Effect of retrospective application and adjustment - - - - (741,508) - - - (741,508)Adjusted balance, January 1, 2015 63,657,408 11,277,988 43,339,205 39,078,218 46,066,241 5,416,784 76,317,462 (3,096) 285,150,210 Net income for the period - - - - 25,034,871 - - - 25,034,871 Other comprehensive income (loss) for the period, net after tax - - - - - 2,279,239 (29,525,323) 24,113 (27,221,971)Total comprehensive income (loss) for the period - - - - 25,034,871 2,279,239 (29,525,323) 24,113 (2,187,100) Legal reserve - - 1,799,344 - (1,799,344) - - - - Special reserve - - - 4,628,698 (4,628,698) - - - - Cash dividends - - - - (10,821,759) - - - (10,821,759)Changes in capital surplus Changes in equity of associates and joint ventures accounted for using equity

method -

165,904

-

-

-

-

-

-

165,904

Other - (167) - - - - - - (167)

Balance as of September 30, 2015 $ 63,657,408 11,443,725 45,138,549 43,706,916 53,851,311 7,696,023 46,792,139 21,017 272,307,088



CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2014 AND 2015


For the nine-month periods ended September 30,

2014 (Adjusted) 2015 Cash flows from operating activities: Income before income tax $ 20,767,552 28,426,569 Adjustments for: Depreciation expense 5,669,158 5,744,791 Amortization expense 427,832 487,479 (Reversal) provision for bad debt expense (1,732) 121 Interest expenses 1,168,415 1,021,720 Interest income (364,582) (279,719) Share of profit of associates and joint ventures accounted for using equity method (11,983,514) (15,332,248) Gain on disposal of property, plant and equipment (21,999) (7,173) Property, plant and equipment transferred to expenses 854 - Gain on disposal of investments (1,902) (160,655) Gain on disposal of investments accounted for using equity method (2,627,625) - Unrealized foreign exchange loss (gain) (214,963) (103,389) Unclaimed dividend and overdue compensation of directors transferred to other income (16,058) - Incomes and expenses not affecting cash flows (7,966,116) (8,629,073) Changes in operating assets and liabilities : Changes in operating assets : Notes receivable (240,281) (715,088) Accounts receivable 2,053,126 569,847 Accounts receivable－related parties (449,954) 333,956 Other receivables 649,913 (152,148) Other receivables－related parties (3,032,615) 4,490,973 Inventories (584,461) 4,112,979 Other current assets (854,396) (577,590) Total changes in operating assets (2,458,668) 8,062,929 Changes in operating liabilities : Accounts payable (2,458,286) (3,458,348) Accounts payable－related parties (4,165,250) (1,064,081) Other payables 59,525 1,035,554 Other payables－related parties 17,068 1,131,614 Accrued expense and other current liabilities 2,495,632 3,225,601 Accrued pension liabilities (287,948) (404,378) Total changes in operating liabilities (4,339,259) 465,962 Total changes in operating assets and liabilities (6,797,927) 8,528,891 Total adjustments (14,764,043) (100,182) Cash generated from operations: 6,003,509 28,326,387 Interest received 331,729 262,787 Dividends received 8,371,120 4,143,477 Interest paid (931,189) (893,891) Income tax paid (707,681) (48,051) Net cash provided by operating activities 13,067,488 31,790,709 Cash flows from investing activities: Acquisition of available-for-sale financial assets (2,400,965) (3,500,000) Proceeds from disposal of available-for-sale financial assets 2,401,902 3,809,549 Acquisition of financial assets carried at cost (21,600) (25,000) Acquisition of investment accounted for using equity method (1,177,877) (2,349,150) Proceeds from disposal of investments accounted for using equity method 3,776,928 - Acquisition of property, plant and equipment (6,701,506) (2,851,847) Proceeds from disposal of property, plant and equipment 24,090 29,498 (Increase) decrease in due from related parties (listed under other receivables－related parties) (6,075,942) 5,227,657 (Increase) decrease in other assets (696,419) 945,098 Net cash (used in) provided by investing activities (10,871,389) 1,285,805 Cash flows from financing activities: Increase in short-term borrowings 130,048,997 92,682,689 Decrease in short-term borrowings (125,427,141) (88,707,880) Decrease in short-term notes and bills payable (3,099,844) - Proceeds from bonds issued 5,984,010 - Repayments of bonds payable (6,000,000) (3,000,000) Proceeds from long-term debts 24,021,598 4,010,000 Repayments of long-term debts (16,306,859) (7,304,287) Decrease (increase) in due to related parties (listed under other payables－related parties) (61,879) 940,641 Decrease in other liabilities (30,028) (111,885) Cash dividends paid (12,097,798) (10,340,505) Net cash used in financing activities (2,968,944) (11,831,227) Effect of foreign currency exchange translation 4,818 172,012 (Decrease) increase in cash and cash equivalents (768,027) 21,417,299 Cash and cash equivalents at beginning of period 7,672,877 5,392,825 Cash and cash equivalents at end of period $ 6,904,850 26,810,124

Reviewed only, not audited in accordance with generally accepted auditing standards as of September 30, 2014 and 2015


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2014 AND 2015 (All amounts are expressed in thousands of New Taiwan Dollars, except for per share information or unless otherwise specified)

1. Organization and Principal Activities

Formosa Plastics Corporation (the “Company”) was incorporated on November 5, 1954, and established its factories in Kaohsiung City. The Company and its subsidiaries (the “Group”) engages in the manufacture and sale of plastic raw materials, chemical fibers, and petrochemical products. The Company has gone through several capital increases and established many divisions, and become a well-diversified enterprise.

2. Approval Date and Procedures of the Consolidated Financial Statements

The consolidated financial statements were reported and issued by the Board of Directors on November 10, 2015.

3. New and Revised Standards and Interpretations

(1) The impact of adoption of new and amended standards and interpretations endorsed by the Financial Supervisory Commission of the Republic of China (“FSC”).

The Group adopted the 2013 version of IFRSs endorsed by the FSC (excluding IFRS 9 Financial Instruments) as they issue consolidated financial statements commencing from 2015. Related new, revised and amended standards and interpretations are listed below:

New, Revised or Amended Standards and Interpretations

Effective Date Prescribed by

IASB

Amendments to IFRS 1 “Limited Exemption from Comparative IFRS 7

Disclosures for First - time Adopters” July 1, 2010

Amendments to IFRS 7 “Disclosures –Transfer of Financial Assets” July 1, 2011 Amendments to IFRS 7 “Disclosures - offsetting Financial Assets and

Financial Liabilities” January 1, 2013

IFRS 10 “Consolidated financial statements” January 1, 2013

(Investment entitytook effect on January 1, 2014)

IFRS 11 “Joint arrangements” January 1, 2013 IFRS 12 “Disclosure of interests in other entities” January 1, 2013 IFRS 13 “Fair Value Measurement” January 1, 2013

2



(Continued)

New, Revised or Amended Standards and Interpretations

Effective Date Prescribed by

IASB

Amendments to IAS 1 “Presentation of Items of Other Comprehensive

Income” July 1, 2012

Amendments to IAS 12 “Deferred Tax: Recovery of Underlying Assets” January 1, 2012 Amendments to IAS 19 “Employee Benefits” January 1, 2013 Amendments to IAS 27 “Separate Financial Statements” January 1, 2013 Amendments to IAS 32 “Offsetting of Financial Assets and Financial

Liabilities” January 1, 2014

Except for the following, the Group believes that the adoption of aforementioned 2013 version of IFRSs endorsed by the FSC did not have any significant effect on the Group’s consolidated financial statements. (a) Amendments to IAS 19, “Employee Benefits”

The amendments to IAS 19 require the Group to calculate a “net interest” amount by applying the discount rate to the net defined benefit liability or asset to replace the interest cost and expected return on planned assets used in current IAS 19. In addition, the amendments eliminate the accounting treatment of either corridor approach or the immediate recognition of actuarial gains and losses to profit or loss when incurred, and instead, require to recognize all actuarial gains and losses immediately through other comprehensive income. The past service cost, on the other hand, is expensed immediately when incurred and is no longer amortized over the average period before vested on a straight-line basis. In addition, instead of recognizing liability and expense only when the demonstrable benefit commitment is made, the amendments require the Group to recognize liability and expense for termination benefit on (1) the date when the Group can no longer withdraw the offer of the benefit; or (2) the date when the Group recognizes related restructuring expense, whichever date is earlier. Moreover, the amendments also require a broader disclosure for defined benefit plans. The Group has changed the accounting policy related to the measure and expression of net defined benefit assets, pension cost and actuarial gains or losses. With the elimination of the corridor approach, the Group has fully recognized the unrecognized prior service cost and actuarial gains or losses, and retrospectively adjusted the accumulated deficit. The influenced items and amounts are as follows: Consolidated statement of financial position:

2010 IFRSs

amounts Impact on transition

2013 IFRSs amounts

September 30, 2014： Investments accounted for using equity

method $ 158,660,750 (332,361) 158,328,389Deferred tax assets $ 1,607,298 67,189 1,674,487

3



(Continued)

2010 IFRSs

amounts Impact on transition

2013 IFRSs amounts

Accrued pension liabilities 8,644,562 395,229 9,039,791Other liabilities 393,742 (534) 393,208Retained earnings 47,309,223 (659,867) 46,649,356

December 31, 2014： Investments accounted for using equity

method 160,602,440 (361,630) 160,240,810Deferred tax assets 1,599,335 77,931 1,677,266Accrued pension liabilities 8,526,717 458,420 8,985,137Other liabilities 473,906 (611) 473,295Retained earnings 46,807,749 (741,508) 46,066,241

Consolidated statement of comprehensive income:

2010 IFRSs amounts

Impact on transition

2013 IFRSs amounts

For the three-month period ended September 30, 2014： Operating expenses $ 2,765,579 534 2,766,113Share of other comprehensive income of

associates and joint ventures accounted for using equity method 4,055,533 (29,192) 4,026,341

Income tax expense 540,633 (90) 540,543

2010 IFRSs amounts

Impact on transition

2013 IFRSs amounts

For the nine-month period ended September 30, 2014： Operating expenses $ 8,167,689 1,604 8,169,293Share of other comprehensive income of

associates and joint ventures accounted for using equity method 12,071,089 (87,575) 11,983,514

Income tax expense 2,361,823 (273) 2,361,550

(b) IFRS 12 “Disclosure of Interests in Other Entities”

The Group has increased disclosures on information about its associates according to this standard. Please refer to Note 6(5) for related information.

4



(Continued)

(2) The IFRSs issued by IASB but not yet endorsed by FSC

New, revised and amended standards and interpretations for IFRSs issued by the IASB but not yet endorsed by the FSC are as follows:

New, Revised or Amended Standards and Interpretations Effective Date

Prescribed by IASB

IFRS 9 “Financial Instruments” January 1, 2018 Amendments to IFRS 10 and IAS 28 “Sale or Contribution of

Assets between an Investor and its Associate or Joint Venture”Amendments to IFRS 10, IFRS 12 and IAS 28 “Investment

Entities: Applying the Consolidation Exception”

January 1, 2016 January 1, 2016

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

January 1, 2016

IFRS 14 “Regulatory Deferral Account” January 1, 2016 IFRS 15 “Revenue from Contracts with Customers” January 1, 2018 Amendment to IAS 1 “Disclosure Initiative” January 1, 2016 Amendments to IAS16 and IAS 38 “Clarification of Acceptable

Methods of Depreciation and Amortization”

January 1, 2016

Amendments to IAS16 and IAS 41 “Bearer Plants” January 1, 2016 Amendments to IAS 19 “Defined Benefit Plans: Employee

Contributions”

July 1, 2014

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

January 1, 2016

Amendments to IAS 36: Recoverable Amount Disclosures for Non-Financial Assets

January 1, 2014

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

January 1, 2014

Annual Improvements Cycle 2010-2012 and 2011-2013 July 1, 2014 Annual Improvements to IFRSs 2012–2014 Cycle January 1, 2016 Amendments to IFRIC Interpretation 21 “Levies” January 1, 2014

The Group is evaluating the impact on its financial position and financial performance of the initial adoption of above mentioned standards or interpretations. The results thereof will be disclosed when the Group completes its evaluation.

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(Continued)

4. Summary of Significant Accounting Policies

(1) Statement of compliance The accompanying consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to the Regulations) and guidelines of IAS 34 “Interim Financial Reporting” which are endorsed by the FSC. These consolidated financial statements are not required to include all disclosures required for full annual financial statements under the Regulations and International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations as endorsed by the FSC (hereinafter referred to as IFRS as endorsed by the FSC).

Except as described below, the significant accounting policies adopted in the accompanying consolidated financial statements are the same as the consolidated financial statements as of and for the year ended December 31, 2014. Please refer to Note 4 of the consolidated financial statements as of and for the year ended December 31, 2014 for the detail disclosures of significant accounting policies. Please refer to Note 3(1) for the impact of adoption of the 2013 version of IFRSs endorsed and issued to be effective by the FSC commencing from January 1, 2015.

(2) Basis of consolidation

Except for Note 3(1), principle of preparing consolidated financial statements are the same as the consolidated financial statements as of and for the year ended December 31, 2014. Please refer to Note 4(c) of the consolidated financial statements as of and for the year ended December 31, 2014.

1. Subsidiary included in the consolidated financial statements is as follows:

Percentage of Ownership (%)

Investor

Name of subsidiaries

Business activity

September 30, 2014

December 31, 2014

September 30, 2015

The Company Formosa Plastics Corp.

(Cayman Ltd). Investment 100% 100% 100%

Formosa Plastics Corp. (Cayman Ltd.)

Formosa Industries (Hong Kong) Limited

Investment 100% 100% 100%


Formosa Industries (Ningbo) Co., Ltd.

Plastics 100% 100% 100%


Formosa Acrylic Esters (Ningbo) Co., Ltd.

Acrylic esters 100% 100% 100%


Formosa Polyethylene (Ningbo) Co., Ltd.

Polyethylene 100% 100% 100%


Formosa Polypropylene (Ningbo) Co., Ltd.

Polypropylene 100% 100% 100%


Formosa Super Absorbent Polymer (Ningbo) Co., Ltd.

Absorbent polymer 100% 100% 100%


Formosa electronic (Ningbo) Co., Ltd.

Electronics 100% 100% 100%

2. Subsidiary not included in the consolidated financial statements: None.

6



(Continued)

(3) Income tax The Group evaluates and discloses interim period income tax expense in accordance with paragraph B12 of IAS 34 “Interim Financial Reporting”. Income tax expense is the best estimated by multiplying the pretax income for the interim reporting period by the effective annual tax rate as forecasted by the management, and is recognized as current tax expense.

Temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases shall be measured based on the tax rates that have been enacted or substantively enacted at the time of the asset or liability is recovered or settled and recognized directly in equity or other comprehensive income as tax expense.

(4) Employee benefits

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events.

5. Critical Accounting Judgments and Key Sources of Estimation Uncertainly

The consolidated financial statements are prepared in conformity with IAS 34 “Interim financial reporting” as endorsed by the FSC, under which, management make judgments, estimates and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates. In these consolidated financial statements, judgments and key sources of estimation uncertainty used by management in the application of critical accounting policies are expected to be consistent with those of Note 5 of the consolidated financial statements as of and for the year ended December 31, 2014.

6. Significant Accounts

Except as described below, the description of significant accounts in the accompanying consolidated financial statements is not materially different from the consolidated financial statements as of and for the year ended December 31, 2014. Please refer to Note 6 of the consolidated financial statements as of and for the year ended December 31, 2014 for the detailed disclosures of these significant accounts.

7



(Continued)

(1) Cash and Cash Equivalents

September 30, 2014

December 31, 2014

September 30, 2015

Cash on hand $ 59,220 322 477Bank deposit 498,378 865,540 10,812,431Time deposits 6,347,252 4,526,963 15,997,216 $ 6,904,850 5,392,825 26,810,124

(2) Available-for-sale Financial Assets

September 30, 2014

December 31, 2014

September 30, 2015

Listed securities: Listed stocks $ 88,573,340 94,685,911 70,245,868

(3) Notes Receivable, Accounts Receivable and Other Receivables

September 30,

2014 December 31,

2014 September 30,

2015 Notes receivable $ 1,299,835 1,026,818 1,741,906Accounts receivable (including related parties) 11,837,453 11,581,109 10,934,336Other receivables－current (including related parties) 31,267,184 30,231,505 21,229,022Other receivables－non-current (listed under other assets) 3,845,271 1,840,999 485,859Less : allowance for doubtful receivables (4,493) (4,977) (5,098) $ 48,245,250 44,675,454 34,386,025

Aging analysis of notes receivable, accounts receivable and other receivables: Past due but not impaired Neither past due

nor impaired

Within 30 days

31-60 days

Over 61 days Total

September 30, 2014 $ 48,186,696 57,757 797 - 48,245,250December 31, 2014 44,612,221 63,122 108 3 44,675,454September 30, 2015 34,366,657 19,364 4 - 34,386,025

8



(Continued)

Movements of the allowance for doubtful receivables were as follows:


2014 2015

Balance, beginning of period $ 6,225 4,977Provision of impairment 820 772Reversal of impairment (2,552) (651)Balance, end of period $ 4,493 5,098

The terms of sales made by the Group were net 30~90 days. Based on historical default rates, the Group recognizes 0.1% allowance for impairment of uncollectible accounts receivable.

(4) Inventories

September 30, 2014

December 31, 2014

September 30, 2015

Finished goods $ 13,606,543 13,390,307 10,837,890Work in process 2,471,619 2,727,638 1,906,919Raw materials 4,154,001 4,078,981 3,188,966Supplies 773,081 745,675 759,818Machinery and accessories in process 1,042,933 1,496,028 1,711,112Others 248,475 433,761 35,992Total $ 22,296,652 22,872,390 18,440,697

Change of net realizable value of inventories

For the three-month periods ended September 30

For the nine-month periods ended September 30

2014 2015 2014 2015 Loss from devaluation of inventories $ 25,880 252,514 - 214,392Gain from recovery of inventories - - 153,880 - Total $ 25,880 252,514 153,880 214,392

The changes in net realizable value of the above inventories have been recognized as cost of goods sold.

9



(Continued)

(5) Investments Accounted for Using Equity Method

(a) The components of the investments accounted for using equity method were as follows:

September 30, 2014

December 31, 2014

September 30,2015

Associates

Formosa Petrochemical Corporation $ 70,243,983 68,855,649 71,391,111Formosa Plastics Corp., U.S.A. 38,437,953 40,524,762 47,456,205Formosa Heavy Industries Corp. 7,569,382 7,783,997 8,269,295Sky Dragon Investment Limited 2,598,913 2,265,937 3,356,266Mai Liao Power Corp. 10,987,149 11,422,034 11,249,821Formosa Sumco Technology Corporation 5,600,084 5,706,246 5,819,821Formosa Transportation Corp. 630,158 652,552 683,853Formosa Fairway Corp. 90,029 75,408 79,292Yi-Jih Development Corp. 62,123 62,209 62,422Ya Tai Development Corp. 91,616 49,055 47,499Formosa Automobile Corporation - - - Wha Ya Park Management Consulting

Corporation Ltd. 1,884

2,113

2,263

Su-Hua Transportation Corporation 176,879 180,569 212,395Formosa Environmental Technology

Corporation 268,523

267,354

263,448

Formosa Resources Corporation 4,099,211 4,359,188 4,277,028Formosa Group (Cayman) Limited 7,259 21,942 98,601Formosa Group Investment (Cayman) Limited 338 384 15,864,917Formosa Plastics Development Corporation Ltd. 15,000 14,559 11,499Formosa Ha Tinh (Cayman) Limited 15,294,323 15,761,499 -

Jointly controlled entities Formosa Asahi Spandex Co., Ltd. 1,281,302 1,312,517 1,331,754Formosa Daikin Advanced Chemical Co., Ltd. 752,419 799,302 825,981Formosa Mitsui Advanced Chemical Co., Ltd. 119,861 123,534 123,554

$ 158,328,389 160,240,810 171,427,025

10



(Continued)

For the three-month and nine-month periods ended September 30, 2014 and 2015, the Group’s share of net income (loss) of associates and jointly controlled entities were as follows:

For the three-month periods

ended September 30, For the nine-month periods

ended September 30, 2014 2015 2014 2015

Associates

Formosa Petrochemical Corporation $ 1,975,568 2,594,959 6,379,404 9,932,732Formosa Plastics Corp., U.S.A. 1,645,651 1,558,946 4,673,673 4,638,733Formosa Heavy Industries Corp. 221,000 254,543 562,653 485,297Sky Dragon Investment Limited (449,988) (691,708) (1,083,167) (1,285,813)Mai Liao Power Corp. 553,260 605,026 1,192,904 1,508,577Formosa Sumco Technology Corporation 103,424 120,331 210,874 331,249Formosa Transportation Corp. 14,963 7,637 25,761 31,301Formosa Fairway Corp. 2,543 2,047 3,417 3,883Yi-Jih Development Corp. 106 69 241 213Ya Tai Development Corp. 911 169 17,817 (1,556)Formosa Automobile Corporation 4,019 12,305 17,778 44,148Wha Ya Park Management Consulting

Corporation Ltd. 49

53

111

150

Su-Hua Transportation Corporation 452 9,003 17,220 31,826Formosa Environmental Technology

Corporation (1,503)

(1,294)

(4,741)

(3,905)

Formosa Resources Corporation (49,334) (28,686) (88,651) (82,160)Formosa Group (Cayman) Limited 5,908 33,445 6,837 72,181Formosa Group Investment (Cayman)

Limited

(41) (172,355)

(41)

(172,351)

Formosa Plastics Development Corporation Ltd.

-

(1,321)

-

(3,061)

Formosa Ha Tinh Steel Corporation (75,280) - (200,941) - Formosa Ha Tinh (Cayman) Limited - - - (364,845)

Jointly controlled entities Formosa Asahi Spandex Co., Ltd. 27,919 47,780 95,825 139,537Formosa Daikin Advanced Chemical Co.,

Ltd. 48,219

10,026

159,269

26,679

Formosa Mitsui Advanced Chemical Co., Ltd.

(1,505)

2,648

(2,729)

(547)

$ 4,026,341 4,363,623 11,983,514 15,332,248

11



(Continued)

(b) Associates (i) The information of the major associate of the investments accounted for using the equity

method was as follows:

Percentage of ownership

Associates Relationship Registration

Country September 30,

2014 December 31,

2014 September 30,

2015 Formosa

Petrochemical Corporation

Formosa Petrochemical Corporation, the main supplier of raw materials for the Group, has principal activities that consists of petroleum refining and integrated manufacture of hydrocarbon

Taiwan 28.79% 28.79% 28.79%

The fair value of investments in publicly traded stocks of the major associate was as follows:

September 30,

2014 December 31,

2014 September 30,

2015 Formosa Petrochemical Corporation $ 202,400,117 188,413,117 214,741,587

The following is the aggregated financial information of the major associate, and necessary changes have already been made to the information therein concerning the associates' consolidated financial statements based on the IFRS as endorsed by FSC to reflect the fair value adjustments made at the time of acquisition and adjustment for accounting policy variations.

The financial information of Formosa Petrochemical Corporation was as follows:

September 30,

2014 December 31,

2014 September 30,

2015 Current assets $ 276,392,055 260,281,831 213,600,459Non-current assets 225,391,620 212,734,399 201,121,438Current liabilities (124,404,437) (104,523,565) (59,524,006)Non-current liabilities (132,876,839) (128,851,442) (106,472,217)Net asset $ 244,502,399 239,641,223 248,725,674Net asset contributed to non-controlling

interest of Formosa Petrochemical Corporation

$ 31,225

34,359

34,662

Net asset contributed to Formosa Petrochemical Corporation

$ 244,471,174

239,606,864

248,691,012

12



(Continued)



ended September 30, 2014 2015 2014 2015 Revenue $ 236,129,988 140,207,369 719,056,827 479,217,566Net income $ 6,811,066 8,966,726 22,070,733 34,781,503Other comprehensive income

(loss) (8,097,989)

(8,240,100)

5,860,574

(17,730,581)

Total comprehensive income $ (1,286,923) 726,626 27,931,307 17,050,922Income allocated to

non-controlling interest of Formosa Petrochemical Corporation

$ 384

1,524

1,341

3,758

Income allocated to Formosa Petrochemical Corporation

$ (1,287,307)

725,102

27,929,966 17,047,164

For the nine-month periods

ended September 30,

2014 2015

Beginning balance of investments in major associate at January 1 $ 70,386,512 68,855,649Total comprehensive income allocated to the Group 1,004,228 2,496,869Ending balance of investments in major associate at September 30 71,390,740 71,352,518Difference in capital surplus from changes in holding proportion

due to non-acquisition of newly-issued shares 2,546 38,593

Decrease in carrying amount from disposal of associate’s shares (1,149,303) - Total carrying amount of equity of the major associate $ 70,243,983 71,391,111

(ii) The financial information of the minor associates of the investments accounted for using

equity method was as follows:

September 30,2014

December 31, 2014

September 30,2015

Total carrying amount of equity of the minor

associates $ 85,930,824

89,149,808

97,754,625

For the three-month periods ended

September 30, For the nine-month periods

ended September 30, 2014 2015 2014 2015 Attributable to the Group: Net income $ 1,976,140 1,708,210 5,351,745 5,233,847Other comprehensive income 945,856 3,710,307 1,106,399 2,630,666Total comprehensive income $ 2,921,996 5,418,517 6,458,144 7,864,513

13



(Continued)

(c) Jointly controlled entities The description of joint controlled entities in the accompanying consolidated financial statements is not materially different from the consolidated financial statements as of and for the year ended December 31, 2014. Please refer to Note 6(5) of the consolidated financial statements as of and for the year ended December 31, 2014. The Group’ s investments in jointly controlled entities are not significant. The financial information of the minor joint ventures of the investments accounted for using equity method was as follows:

September 30,2014

December 31, 2014

September 30,2015

Total carrying amount of investments in the minor

joint ventures $ 2,153,582

2,235,353

2,281,289



ended September 30, 2014 2015 2014 2015 Attributable to the Group: Net income $ 74,633 60,454 252,365 165,669Other comprehensive income 2,060 2,995 839 567Total comprehensive income $ 76,693 63,449 253,204 166,236

(d) On June 23, 2015, for the purpose of reorganizing investment structure, the Group transferred

14.75 percent of its ownership of shares issued by Formosa Ha Tinh (Cayman) Corporation to Formosa Group Investment (Cayman) Limited in exchange of 14.75 percent ownership of common shares of stock issued by Formosa Group Investment (Cayman) Limited.

(e) Collaterals

Please refer to Note 8 for investments accounted for using equity method which were pledged to banks as collateral to secure the Group’s bank loans as of September 30, and December 31, 2014 and September 30, 2015

14



(Continued)

(6) Property, Plant and Equipment

The cost and depreciation of the property, plant and equipment of the Group as of and for the nine-month periods ended September 30, 2014 and 2015：

Land Building Machinery and

equipment

Other facilities Construction in progress

Total

Cost:

Balance as of January 1, 2014 $ 6,478,259 25,629,603 153,035,372 5,580,269 15,842,282 206,565,785 Additions 108,951 - 61,783 141,968 6,388,804 6,701,506 Disposals (63) (28,880) (948,864) (77,415) - (1,055,222) Reclassification - 42,373 1,313,167 245,517 (1,305,424) 295,633 Effect of exchange rate change - 32,643 197,710 9,140 79,736 319,229

Balance as of September 30, 2014 $ 6,587,147 25,675,739 153,659,168 5,899,479 21,005,398 212,826,931

Balance as of January 1, 2015 $ 6,679,420 25,987,137 154,812,660 5,986,397 22,272,129 215,737,743 Additions 6,830 5,074 76,335 128,890 2,634,718 2,851,847 Disposals (1,954) (3,121) (269,568) (49,140) - (323,783) Reclassification - 27,909 6,234,495 81,948 (6,958,817) (614,465) Effect of exchange rate change - 984,212 138,016 6,673 85,851 1,214,752


Accumulated depreciation:

Balance as of January 1, 2014 11,250,245 109,627,468 4,231,674 - 125,109,387 Depreciation for the period - 669,823 4,792,812 206,523 - 5,669,158 Disposals - (28,880) (947,413) (76,838) - (1,053,131) Reclassification - - - 274 - 274 Effect of exchange rate change - 7,562 81,772 6,675 - 96,009

Balance as of September 30, 2014 $ - 11,898,750 113,554,639 4,368,308 - 129,821,697

Balance as of January 1, 2015 $ - 12,178,285 115,117,081 4,444,750 - 131,740,116 Depreciation for the period - 675,394 4,827,096 242,301 - 5,744,791 Disposals - (3,121) (251,888) (46,449) - (301,458) Reclassification - - (33) 434 - 401 Effect of exchange rate change - 7,839 82,366 5,084 - 95,289

Balance as of September 30, 2015 $ - 12,858,397 119,774,622 4,646,120 - 137,279,139

Carrying amounts:


Balance as of December 31, 2014 $ 6,679,420 13,808,852 39,695,579 1,541,647 22,272,129 83,997,627


(a) As of September 30 and December 31, 2014 and September 30, 2015, the Group’s parcels of

land with title temporarily registered under the names of third parties for trust purpose had carrying value of $35,914, $35,914, and $33,960, respectively, which were recorded under property, plant and equipment. The Group has implemented a deed of trust with the authorities to secure the Group’s rights related to the abovementioned properties.

(b) Please refer to Note 6(16) for further information about the capitalized interest on borrowings

for the purchase of the property, plant and equipment and gain (loss) on disposal of property, plant and equipment.

(c) Collaterals

The property, plant and equipment pledged to secure bank loans as of September 30 and December 31, 2014 and September 30, 2015, are described in Note 8.

15



(Continued)

(7) Short-term Borrowings (a) Short-term borrowings consisted of the following:

September 30, December 31, September 30, 2014 2014 2015 Unsecured short-term borrowings $ 21,339,053 13,460,290 16,347,292Secured short-term borrowings - - 1,000,000Employees’ savings 810,996 307,270 399,319Total $ 22,150,049 13,767,560 17,746,611Interest rate 0.657%~2.730% 0.695%-2.635% 0.681%~4.600%

(b) Issuance and redemption of loans


2014 2015 Balance as of January 1 $ 17,521,603 13,767,560New issuance during the period 130,048,997 92,682,689Repayments during the period (125,427,141) (88,707,880)Effect of exchange rate change 6,590 4,242Balance as of September 30 $ 22,150,049 17,746,611Interest Rate 0.667%~3.436% 0.681%~4.600%

(c) The assets pledged to secure loans are described in Note 8.

(8) Long-term Loans

(a) Long-term loans consisted of the following:

September 30, 2014

December 31, 2014

September 30, 2015

Unsecured bank loans $ 18,074,599 17,898,069 15,746,667Secured bank loans 10,851,432 10,562,571 10,275,991Less: Current portion of long-term loans (2,130,002) (1,515,645) (3,630,090)Total $ 26,796,029 26,944,995 22,392,568Repayment period 2015~2021 2015~2021 2015~2021 Interest rate 1.179%~2.280% 1.198%~2.280% 1.184%~2.280%

16



(Continued)

(b) Issuance and redemption of loans For the nine-month periods ended

September 30, 2014 2015 Balance as of January 1 $ 21,211,292 28,460,640New issuance during the period 24,021,598 4,010,000Repayments during the period (16,306,859) (7,304,287)Effect of exchange rate change - 856,305Balance as of September 30 $ 28,926,031 26,022,658Interest Rate 1.277%~2.280% 1.184%~2.280%

(c) Secured bank loans

(i) In order to raise funds to finance the Sixth Naphtha Cracker project and the construction

of related factories, the Company signed a syndicated loan agreement with Mega International Commercial Bank (formerly Chiao Tung Bank), the lead bank of the syndicated loan, and other banks on April 28, 1995. The details of the loan agreement are as follows: I. Credit line: $30,769,000 and US$242,000 thousand.

II. Interest rate: as settled with each participating bank.

III. Period: 10 to 15 years.

IV. Collateral: the acquired land, buildings and machinery financed by the loan.

V. The financial covenants under the loan agreement include the requirement to maintain

certain financial ratios based on the audited financial reports. If the Company breaches these financial covenants, the syndicated banks may determine to declare the unpaid principal, interest, fees and other sums payable by the Company under the loan agreement to be immediately due and payable. These financial ratios are as follows:

Current Ratio (total current assets divided by total current liabilities): not lower than

100%, except for the syndicated loan of Sixth Naphtha Cracker project, which is not lower than 120%.

Leverage Ratio (total liabilities plus contingent liabilities to tangible net worth): not

higher than 150%

The Company did not breach the above mentioned financial covenants in respect of its financial statements as of September 30, 2015.

VI. As of September 30, 2015, the Company had repaid all its loans according to the

contract.

17



(Continued)

(ii) In order to raise funds to build the plants, machinery and equipment and facilities, the Company signed a syndicated loan agreement with Bank of Taiwan, the lead bank of the syndicated loan, and 18 other banks on November 14, 2013. As of September 30, 2015, the details of the loan agreement are as follows:

I. Credit line: $10,300,000.

II. Interest rate: as settled with each participating bank.

III. Period: 7 years (including a 3 years extension).

IV. Collateral: the land at Sixth Naphtha Cracker pledged for 120 percent of the credit line

financed by the loan.

V. The financial covenants under the loan agreement include the requirement to maintain certain financial ratios based on the audited consolidated financial reports. If the Company breaches these financial covenants, the syndicated banks may determine to declare the unpaid principal, interest, fees and other sums payable by the Company under the loan agreement to be immediately due and payable. These financial ratios are as follows:

Current Ratio (total current assets divided by total current liabilities): not lower than

100%.

Leverage Ratio (total liabilities plus contingent liabilities to tangible net worth): not higher than 150%

The Company did not breach the above mentioned financial covenants in respect of its financial statements as of September 30, 2015.

VI. As of September 30, 2015, NT$10,300,000 of the credit line had been used.

(d) The assets pledged to secure loans are described in Note 8.

(9) Bonds Payable

September 30, December 31, September 30, 2014 2014 2015 Domestic unsecured nonconvertible

corporate bonds $ 59,898,658 59,906,965 56,930,823

Less: current portion (2,997,868) (7,993,512) (13,536,885)Total $ 56,900,790 51,913,453 43,393,938Expiry 2015~2026 2015~2026 2015~2026

18



(Continued)

Issuance and redemption of bonds For the nine-month periods ended

September 30, 2014 2015

Issuance amount during the period $ 5,984,010 - Coupon rate 1.83%、1.92% -

Expiry 2024~2026 - Repayments during the period $ 6,000,000 3,000,000

The first domesticunsecured

nonconvertible corporate bond

in 2010



in 2011

The second domesticunsecured


in 2011

The first domestic unsecured


in 2012



in 2012

Issue amounts $ 6,000,000 $ 6,000,000 $ 4,000,000 $ 7,000,000 $ 5,000,000 Ending balance at September 30, 2014 2,997,868 5,993,058 3,995,281 6,990,690 4,992,486 Current portion at September 30, 2014 2,997,868 - - - - Ending balance at December 31, 2014 2,998,668 5,993,874 3,995,815 6,991,572 4,993,118 Current portion at December 31, 2014 2,998,668 2,996,937 1,997,907 - - Ending balance at September 30, 2015 - 5,996,325 3,997,418 6,994,218 4,995,014 Current portion at September 30, 2015 - 2,998,162 1,998,709 2,497,935 1,048,952 Issuance date June 21, 2010 November 16, 2011 December 15, 2011 May 22, 2012 September 12, 2012Coupon rate 1.55% 1.34% 1.35% 1.26%、1.42% 1.28%、1.40%

Interest payment date June 21 November 16 December 15 May 22 September 12 Repayment method Payable in 2 equal

installments for each different coupon rate in 2014 and 2015, respectively.

Payable in 2 equal installments for each different coupon rate in 2015 and 2016, respectively.

Payable in 2 equal installments for each different coupon rate in 2015 and 2016, respectively.

Payable in 2 equal installments for each different coupon rate in 2016~2017 and 2018~2019, respectively.

Payable in 2 equal installments for each different coupon rate in 2016~2017 and 2018~2019. , respectively.

The third domestic

unsecured nonconvertible corporate bond

in 2012



in 2013



in 2013

The first domestic unsecured


in 2014

Issue amounts $ 9,000,000 $ 11,500,000 $ 8,500,000 $ 6,000,000 Ending balance at September 30, 2014 8,984,858 11,478,321 8,480,926 5,985,170

Current portion at September 30, 2014 - - - - Ending balance at December 31, 2014 8,986,080 11,479,788 8,482,080 5,985,970 Current portion at December 31, 2014 - - - - Ending balance at September 30, 2015 8,989,747 11,484,188 8,485,544 5,988,369 Current portion at September 30, 2015 - 4,993,127 - - Issuance date November 5, 2012 June 10, 2013 November 8, 2013 May 21, 2014 Coupon rate 1.25%、1.39%、1.53% 1.23%、1.52% 1.42%、1.94% 1.83%、1.92%

Interest payment date November 5 June 10 November 8 May 21 Repayment method Payable in 3 equal

installments for each different coupon rate in 2016~2017, 2018~2019 and 2021~2022, respectively.




19



(Continued)

(10) Employee Benefits

(a) Defined benefit plan Subsequent to December 31, 2014, there is apparently no evidence of any material market volatility, material curtailment, reimbursement and settlement or other material one-time events. Therefore, pension cost in the consolidated financial statements is measured and disclosed according to the respective actuarial report for the years ended December 31, 2013 and 2014.

The Group’s pension costs recognized in profit or loss were as follows:

For the three-month periods ended September 30,


2014 2015 2014 2015 Operating cost $ 43,072 42,339 129,566 127,595Selling expenses $ 1,646 1,738 4,990 5,082Administrative expenses $ 25,722 25,633 76,767 76,452

(b) Defined contribution plan

The Group’s pension costs recognized in profit or loss were as follows:



2014 2015 2014 2015 Operating cost $ 39,482 41,091 117,061 121,216Selling expenses $ 1,625 2,019 4,959 5,866Administrative expenses $ 24,452 23,092 72,985 68,769

(11) Income Tax

(a) The details of income tax expense for the three-month and nine-month periods ended September 30, 2014 and 2015 were as follows:



2014 2015 2014 2015

Current income tax expense $ 125 781,595 987,380 2,063,328Deferred tax expense 540,418 433,631 1,374,170 1,328,370Income tax expense $ 540,543 1,215,226 2,361,550 3,391,698

20



(Continued)

(b) The income tax expense related to components of other comprehensive income for the three-month and nine-month periods ended September 30, 2014 and 2015 was as follows:



ended September 30, 2014 2015 2014 2015 Items that could be reclassified

subsequently to profit or loss:

Exchange differences on translation of foreign financial statements

$ 191,196

833,342

169,419

584,455

(c) Examination and approval

The Company’s income tax returns have been examined by the ROC tax authority through 2013.

(d) Information related to the accumulated deficit and imputation credit account (ICA) and creditable ratio were as follows:

September 30,

2014 December 31,

2014 September 30,

2015 Undistributed earnings in 1997 and prior years $ 432,111 432,111 432,111Undistributed earnings in 1998 and thereafter 46,217,245 45,634,130 53,419,200 $ 46,649,356 46,066,241 53,851,311Imputation credit account $ 3,101,177 3,141,029 2,846,401

2013 (actual) 2014 (actual)

Tax deduction ratio for earnings distribution to ROC residents 9.80% 9.81%

Under the information for integrated income tax, the above imputation credit account and creditable ratio were calculated according to the formal interpretation No.10204562810 issued by Taxation Administration, Ministry of Finance, R.O.C. on October 17, 2013.

(12) Equity

Except as described below, there was no material change in equity for the nine-month periods ended September 30, 2014 and 2015. Please refer to Note 6(13) of the consolidated financial statements as of and for the year ended December 31, 2014 for the related detail disclosures on equity.

21



(Continued)

(a) Capital surplus

The components of capital surplus were as follows:

September 30,

2014 December 31,

2014 September

30, 2015 Paid-in capital in excess of par value $ 8,130,081 8,130,081 8,130,081Overdue unpaid directors’ remuneration and dividends 83,307 83,298 83,131Paid in capital in excess of the par value derived from

overseas corporate bond conversion 2,997,503

2,997,503

2,997,503

Treasury stock transactions 16,263 16,263 16,263Equity in capital surplus of investee companies 50,842 50,843 216,747 $ 11,277,996 11,277,988 11,443,725

(b) Retained earnings

In accordance with the Company’s articles of incorporation, the Company’s annual earnings after providing for income tax are appropriated and distributed as follows:

Cover prior year’s accumulated deficit, if any;

Of the remaining balance, if any, 10% is set aside as legal reserve;

Of the remaining balance, if any, certain amount is set aside as special reserve and as

common stockholders’ dividends;

The remainder, together with accumulated earnings from prior year, is reported to the board of directors for purposes of making a plan for the distribution of cash dividend and/or stock dividend and bonuses for stockholders, directors, and supervisors.

In accordance with the amended Company Act which was published in May 2015, employee bonuses are no longer a part of the composition of appropriation and distribution of earnings. For this reason, the Company will amend the articles of incorporation accordingly within the period prescribed by the authority.

(i) Special reserve As the Company opted to avail of the exemptions allowed under IFRS 1 “First-time Adoption of International Financial Reporting Standards” during the Company’s first-time adoption of the IFRS as endorsed by the FSC, unrealized revaluation increments and cumulative translation adjustments (gains) of $2,790,507, which were previously recognized in shareholders’ equity were reclassified to retained earnings. In accordance with Regulatory Permit No. 1010012865 as issued by the FSC on April 6, 2012, a special reserve is appropriated from retained earnings for aforementioned reclassification. In addition, during the use, disposal or reclassifications of relevant assets, this special reserve is reverted to distributable earnings proportionately. The

22



(Continued)

carrying amount of special reserve amounted to $2,790,507 as of September 30, and December 31, 2014 and September 30, 2015. Pursuant to the Regulatory Permit mentioned above, the Company is also required to set aside an additional special reserve, as part of the distribution of its annual earnings, equal to the difference between the amount of above-mentioned special reserve and net debit balance of the other components of stockholders’ equity.

(ii) Earnings distribution

For the three-month and nine-month periods ended September 30, 2014, the estimated amounts of employee bonuses amounted to $11,506 and $30,518, respectively, which were calculated based on the Company’ s net profit after tax for each period and the earnings allocation percentage as stated under the Company’ s articles of incorporation. These employee bonuses were charged to profit or loss, recognized either under cost of goods sold or operating expenses for the three-month and nine-month periods ended September 30, 2014. If the actual amounts were subsequently decided after the approval and the issuance date of the financial statements in the following year differ from the estimated amounts, the differences are accounted for as changes in accounting estimates and recognized in profit or loss in the following year.

The employee bonuses amounted to $30,000 and $26,686 in 2013 and 2014, respectively. The amounts as stated in the consolidated financial statements were identical to the actual distributions for 2013 and 2014. The information on the appropriations of bonuses to employees is available at the Market Observation Post System website.

The appropriations of earnings in 2014 were approved in the stockholders’ meeting on June 25, 2015, and the appropriations in 2013 earnings were approved in the stockholders’ meeting on June 13, 2014, respectively. The amounts of appropriation of dividends per share were as follows:

2013 2014 Dividends Dividends per share Amount per share Amount Dividends attributable to ordinary

shareholders:

Cash dividends $ 1.90 12,094,907 1.70 10,821,759

23



(Continued)

(c) Other equity

Exchange differences

on translation of foreign operations

Unrealized gains (losses) on


Cash flow hedge Balance at January 1, 2014 $ 558,916 63,615,604 2,109 Exchange differences on translation of

foreign operations, net of tax

-the Group 885,851 - - -associates 118,774 - - Unrealized gains (losses) on


-the Group - 3,032,245 - -associates - 1,630,981 (3,844)Balance at September 30, 2014 $ 1,563,541 68,278,830 (1,735) Balance at January 1, 2015 $ 5,416,784 76,317,462 (3,096) Exchange differences on translation of

foreign operations, net of tax

-the Group 2,035,783 - - -associates 243,456 - - Unrealized gains (losses) on


-the Group - (24,291,149) - -associates - (5,234,174) 24,113

Balance at September 30, 2015 $ 7,696,023 46,792,139 21,017

(13) Earnings Per Share

The basic earnings per share were calculated as follows: For the three-month periods


ended September 30, 2014 2015 2014 2015 Net income attributable to the

Company $ 7,487,748

10,530,079

18,406,002

25,034,871

Weighted-average number of ordinary shares outstanding (basic)

6,365,741

6,365,741

6,365,741

6,365,741

Basic earnings per share (dollars) $ 1.18 1.65 2.89 3.93

24



(Continued)

(14) Revenue For the three-month and nine-month periods ended September 30, 2014 and 2015, the Group’s details of revenue were as follows:



2014 2015 2014 2015 Sale of goods $ 54,555,309 46,283,160 164,141,962 143,685,339Construction revenue 231,291 203,240 664,043 614,275Others 554,279 508,829 1,553,724 1,400,092Total $ 55,340,879 46,995,229 166,359,729 145,699,706

(15) Employee benefits

For the three-month and nine-month periods ended September 30, 2015, the estimated amounts of employee bonuses amounted to $8,511 and $25,534, respectively, which were calculated based on the Company’ s net profit after tax for each period and the earnings allocation percentage as stated under the Company’ s articles of incorporation. These employee bonuses were charged to profit or loss, recognized either under cost of goods sold or operating expenses for the three-month and nine-month periods ended September 30, 2015. If the actual amounts were subsequently decided after the approval and the issuance date of the financial statements in the following year differ from the estimated amounts, the differences are accounted for as changes in accounting estimates and recognized in profit or loss in the following year.

(16) Non-operating Income and Expenses

(a) Other income For the three-month and nine-month periods ended September 30, 2014 and 2015, the components of other income were as follows:



2014 2015 2014 2015 Interest income $ 122,318 119,971 364,582 279,719Rental income 25,719 26,151 77,774 82,794Dividend income 2,351,967 3,157,778 2,355,967 3,157,778 $ 2,500,004 3,303,900 2,798,323 3,520,291

25



(Continued)

(b) Other gains and losses For the three-month and nine-month periods ended September 30, 2014 and 2015, the components of other gains and losses were as follows:



2014 2015 2014 2015 Gain (loss) on disposal of property,

plant and equipment $ 3,392 (2,544) 21,999 7,173

Gain on disposal of investments 1,902 842 2,629,527 160,655Foreign exchange gain, net 398,331 1,562,994 225,908 964,754Other gains 195,038 197,785 572,247 774,026Other losses (84,324) (125,773) (216,472) (415,836) $ 514,339 1,633,304 3,233,209 1,490,772

(c) Finance expenses

The Group’s details of finance expenses were as follows:



2014 2015 2014 2015 Interest expense $ 430,536 606,365 1,309,846 1,427,997Less: capitalized interest (36,086) (279,376) (141,431) (406,277) $ 394,450 326,989 1,168,415 1,021,720Capitalized interest rate 1.50%~2.25% 1.35%~3.49% 1.39%~2.28% 1.33%~3.92%

(17) Financial Instruments

Except as described below, there was no material change with regard to the fair value and exposure risks of credit risk, liquidity risk and market risk on financial instruments. Please refer to Note 6(17) of the consolidated financial statements as of and for the year ended December 31, 2014 for the related detail disclosures on financial instruments.

26



(Continued)

(a) Currency risk

(i) Exposure to currency risk

The Group’s significant exposure to foreign currency risk was as follows:

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

Foreign currency

(in thousands) Exchange

rate

New Taiwan Dollars

Foreign currency

(in thousands)Exchange

rate

New Taiwan Dollars

Foreign currency

(in thousands) Exchange

rate

New Taiwan Dollars

Financial assets:

Monetary items

USD $ 408,639 30.4360 12,437,337 592,275 31.7180 18,785,778 1,074,332 33.1280 35,590,470

EUR 143 38.4540 5,499 101 38.5310 3,892 429 36.8674 15,816

JPY 358,274 0.2776 99,457 171,056 0.2650 45,330 4,629 0.2752 1,274

Financial liabilities

Monetary items

USD 616,382 30.4360 18,760,203 611,073 31.7180 19,382,013 446,658 33.1280 14,796,886

EUR 208 38,4540 7,998 182 38.5310 7,013 88 36.8674 3,244

JPY 87,810 0.2776 24,376 39,047 0.2650 10,347 99,686 0.2752 27,434

SGD 30 23.9230 718 19 23.9910 456 1 23.1168 23

CHF 4 32.0280 128 24 32.0410 769 289 33.9852 9,822

CAD 4 27.3050 109 - - - 80 24.5977 1,968

GBP - - - - - - 2 50.015 100

(ii) Sensitivity analysis

The Group’s exposure to foreign currency risk arises from the foreign currency exchange fluctuations on cash and cash equivalents, accounts receivable, other receivables, loans and borrowings, accounts payable and other payables which are denominated in different foreign currencies. A 1% depreciation of the NTD against the USD, EUR, JPY, SGD, CHF and CAD as of September 30, 2014 and 2015 would have decreased the net income after tax by $62,513 and $ 140,548 for the nine-month periods ended September 30, 2014 and 2015, respectively. This analysis assumes that all other variables remain constant and ignores any impact of forecasted sales and purchases. The management believes that the analysis is performed on the same basis. Because there are a variety of functional currencies, the Group discloses a summary of its information on exchange gain or loss. The realized and unrealized exchange gain amounted to $225,908 and $964,754 for the nine-month periods ended September 30, 2014 and 2015, respectively.

27



(Continued)

(b) Fair value

(i) Fair value and carrying amount The Group considers the carrying amounts of notes receivable, accounts receivable (including related parties), other receivables (including related parties), and short-term/long-term loans and borrowings (including current portion of long-term debts) and bonds payable (including current portion of bonds payable) as a reasonable approximation of fair value because the maturity dates of these short-term financial instruments are within one year from the balance sheet date.

(ii) Valuation techniques and assumptions used in fair value determination If a quoted price is available on an active market, the market price should be used as the fair value; the market price published by the primary stock exchanges as the basis of fair value evaluation for listed equity instruments. Fair value of the Group’s financial instruments that have an active market is displayed by category and attributed as follows: Listed stocks are financial assets with standard transaction terms and conditions, and are traded on an active market. The fair value of such items is determined in reference to the quoted market price.

Carrying Fair value Value Level 1 Level 2 Level 3 Total

September 30, 2014 Available-for-sale financial assets

Listed stocks $ 88,573,340 88,573,340 - - 88,573,340

December 31, 2014 Available-for-sale financial assets

Listed stocks $ 94,685,911 94,685,911 - - 94,685,911

September 30, 2015 Available-for-sale financial assets

Listed stocks $ 70,245,868 70,245,868 - - 70,245,868

There were no transfers among the fair value hierarchy levels for the nine-month periods ended September 30, 2014 and 2015.

28



(Continued)

(18) Financial Risk Management There were no material changes in financial risk management in comparison to Note 6(18) of the consolidated financial statements as of and for the year ended December 31, 2014.

(19) Capital Management

There were no material changes in capital management target adopted for capital management in comparison to Note 6(19) of the consolidated financial statements as of and for the year ended December 31, 2014.

7. Related-party Transactions

(1) Parent company and ultimate controlling party

The Company is the ultimate controlling party of the Group.

(2) Significant related-party transactions

(a) Sales to related parties

The Group’s significant sales to related parties and the balance of accounts receivable were as follows:

Sales For the three-month periods


ended September 30,

Accounts receivable－related parties

2014

2015

2014

2015 September

30, 2014 December 31, 2014

September 30, 2015

Associates $ 3,372,378 2,373,590 11,958,457 7,463,216 1,427,490 1,120,649 1,393,241Jointly controlled

entities 171,292

132,961

435,399

416,390

54,585

57,881

47,289

Other related parties 8,882,458 5,908,513 24,311,500 19,607,688 3,599,824 3,047,464 2,451,508

Total $ 12,426,128 8,415,064 36,705,356 27,487,294 5,081,899 4,225,994 3,892,038

The selling prices and collection terms for the sales to related parties are not significantly different from those third-party customers, and receivables are collected on the 27th of the month following the month of sales. The terms of receivables from other foreign related parties are O/A 60 days or L/C at sight.

29



(Continued)

(b) Purchase from related parties

The Group’s significant purchases from related parties and the balance of accounts payable were as follows:

Purchases



ended September 30,

Accounts payable－related parties

2014

2015

2014

2015 September

30, 2014 December 31, 2014

September 30, 2015

Associates $ 28,672,481 12,549,514 90,095,245 58,877,123 8,243,752 6,939,963 5,984,207Jointly controlled

entities 8,814 6,494 23,764 21,947 3,137 3,373 2,125Other related

parties 1,212,922 821,907 4,004,862 2,746,244 441,620 415,303 308,226Total $ 29,894,217 13,377,915 94,123,871 61,645,314 8,688,509 7,358,639 6,294,558

The purchase price and payment terms for the purchase from related parties are not significantly different from those with third-party vendors, and payables are paid on the 27th of the month following the month of purchase.

(c) Property plant and equipment

Purchase property, plant and equipment



ended September 30,

Other payables–related parties

2014

2015

2014

2015 September

30, 2014 December 31, 2014

September 30, 2015

Other related parties $ 25,056 25,493 54,536 106,322 326 24,809 693

(d) Financing transactions

The Group’s significant financing transactions with related parties were as follows:

Due from related parties (recognized as other receivables–related parties)

September 30, 2014

December 31, 2014

September 30, 2015

Associates $ 12,602,239 6,927,529 3,544,000Jointly controlled entities 44,522 46,651 46,870Other related parties 11,434,852 11,157,926 9,357,728 $ 24,081,613 18,132,106 12,948,598

As of September 30 and December 31, 2014 and September 30, 2015, the interest receivables from the abovementioned transactions amounted to $82,786, $26,977 and $17,713, respectively, which was recognized as other receivables–related parties.

30



(Continued)

Due to related parties (recognized as other

payables–related parties) September 30,

2014 December 31,

2014 September 30,

2015 Other related parties $ 560,182 658,783 1,599,424

As of September 30 and December 31, 2014 and September 30, 2015, the interest payables from the abovementioned transactions amounted to $3,072, $2,618 and $2,021 respectively, which was recognized as accrued expenses.

(e) Endorsements and guarantees

(i) The Group’s endorsements guarantees to secure related parties’ loans were as follows:

September 30, 2014

December 31, 2014

September 30, 2015

Associates $ 12,875,483 13,409,116 39,049,630

(ii) The amounts of commitment letters for related parties that the Group had issued to

financial institutions were as follows (expressed in thousands):

September 30, 2014 December 31, 2014 September 30, 2015 USD CNY USD CNY USD CNY Associates $ 386,000 1,834,000 1,086,000 1,834,000 1,054,000 1,130,000

(f) Other significant transactions

(i) The Group’s income received from related parties, such as sewage treatment income,

wharf usage income and utility and steam income were as follows:

Other receivables–related parties September 30,

2014 December 31,

2014 September 30,

2015 Other related parties $ 156 130 104,481

31



(Continued)

(ii) The Group’s expenses paid to related parties, such as sewage treatment expense, wharf usage expense, utility and steam expenses, transportation expense and restoration expense were as follows:

Other payables–related parties

September 30, 2014

December 31, 2014

September 30, 2015

Associates $ - - 1,103,728Other related parties 277,145 253,567 305,569 $ 277,145 253,567 1,409,297

(g) Receivables from payment on behalf of related parties

(i) The Group paid for construction design service fees on behalf of related parties as

follows:

Other receivables–related parties September 30,

2014 December 31,

2014 September 30,

2015 Other related parties $ 6,127,773 11,020,131 6,936,989

(ii) As of September 30 and December 31, 2014 and September 30, 2015, the Group paid the

down payments on behalf of associated investee for the purchase of equipment of $3,845,271, $1,840,999 and $485,859, respectively, which were accounted for as prepayments (classified under other assets).

(h) Rental (recognized as other income)

The Group leased its office and building to related parties, and derived rental income thereon as follows: For the three-month periods


ended September 30, 2014 2015 2014 2015 Associates $ 16,248 10,022 37,054 30,067Jointly controlled entities 2,083 1,791 5,667 5,375Other related parties 18,209 12,817 36,557 33,071 $ 36,540 24,630 79,278 68,513

32



(Continued)

(3) Compensation of key management

The compensation to key management was as follows:



2014 2015 2014 2015 Short-term employee benefits $ 10,623 12,776 31,686 39,255

8. Pledged Properties

The Group’s assets pledged to secure loans are as follows:

Classification of assets Nature of Pledged Assets September 30,

2014 December 31,

2014 September 30,

2015

Fixed assets Property plant and equipment $ 3,229,393 3,112,822 2,799,459Refundable deposits Certificate of deposit 34,625 34,625 34,637Investments accounted for using

equity method Stocks of Formosa Petrochemical

Corp. 7,681,750 7,529,265

7,809,280

$ 10,945,768 10,676,712 10,643,376

9. Commitments and Contingencies

(a) The amounts of endorsements and guarantees for related parties were as follows:

September 30,

2014 December 31,

2014 September 30,

2015 Endorsements and guarantees $ 12,875,483 13,409,116 39,049,630

(b) The amount of unused outstanding letters of credit for the importation of raw materials for related

parties were as follows:

September 30, 2014

December 31, 2014

September 30, 2015

Unused outstanding letters $ 3,370,172 1,850,806 702,660

33



(Continued)

(c) The amounts of commitment letters for related parties were as follows:

September 30, 2014

December 31, 2014

September 30, 2015

USD $ 386,000 1,086,000 1,054,000CNY $ 1,834,000 1,834,000 1,130,000

10. Significant Disaster Loss: None.

11. Subsequent Event: None.

12. Others

(1) The nature of operating costs and expenses of the Group were as follows:


2014 2015 Operating

costs Operating expenses

Non- operatingexpenses

Total

Operatingcosts

Operating expenses


Total

Employee benefits Salaries 1,174,036 900,225 - 2,074,261 1,252,398 892,068 - 2,144,466Labor and health insurance 84,110 60,740 - 144,850 88,846 58,899 - 147,745Pension 82,554 53,445 - 135,999 83,430 52,482 - 135,912Employees’ bonuses 6,750 4,756 - 11,506 5,116 3,395 - 8,511Others 25,253 14,942 - 40,195 31,656 16,465 - 48,121

Depreciation expenses 1,795,243 86,661 - 1,881,904 1,859,248 94,866 - 1,954,114Amortization expenses 123,972 2,457 9,007 135,436 123,681 2,583 8,207 134,471

For the nine-month periods ended September 30, 2014 2015

Operating costs

Operating expenses


Total

Operatingcosts

Operating expenses


Total

Employee benefits Salaries 3,498,995 2608,285 - 6,107,280 3,584,073 2,524,688 - 6,108,761Labor and health insurance 252,704 178,667 - 431,371 257,681 171,136 - 428,817Pension 246,627 159,701 - 406,328 248,811 156,169 - 404,980Employees’ bonuses 17,950 12,568 - 30,518 15,320 10,214 - 25,534Others 76,083 46,718 - 122,801 80,791 42,261 - 123,052

Depreciation expenses 5,424,035 245,123 - 5,669,158 5,465,185 279,606 - 5,744,791Amortization expenses 393,661 7,128 27,043 427,832 453,713 7,812 25,954 487,479

(2) Seasonality of operation

The operation of the Group is not influenced by seasonality and periodicity.

34



(Continued)

13. Other Disclosure Items

(a) Related information on material transaction items

The significant transactions required by the “Guidelines” for the Group were as follows: (i) Fund financing to other parties (the amounts expressed in RMB are in thousands):

No. Name of Lenders Name of

Borrowers Account

name Related party

Highest balance of

financing to other parties during the

period

Ending Balance

Actual usage

during the period

Range of interest rates

during the period

Purposes of fund

financing for the

borrowers (Note 1)

Transaction amount for

business between two

parties

Reasons for short-term financing

Allowance for bad

debt

Collateral Individual

funding loan limits

(Note 2)

Maximum limitation on fund

financing (Note 2)

Note

Name Value

0 The Company Formosa Petrochemical Corp.

Due from related parties

Yes $ 8,000,000 $ 6,000,000 - 1.627%~1.628% 2 - Short-term financing

- - - $ 54,461,418 $ 108,922,835

0 The Company Formosa Chemicals & Fibre Corp.


Yes 8,000,000 6,000,000 - 1.602% 2 - Short-term financing

- - - 54,461,418 108,922,835

0 The Company Nan Ya plastic Corp. Due from related parties

Yes 8,000,000 6,000,000 - 1.602% 2 - Short-term financing

- - - 54,461,418 108,922,835

0 The Company Formosa Heavy Industries Corp.


Yes 11,000,000 9,000,000 3,000,000 1.602%~1.628% 2 - Short-term financing

- - - 54,461,418 108,922,835

0 The Company Formosa Plastic Transportation Corp.


Yes 300,000 150,000 150,000 1.602%~1.628% 2 - Short-term financing

- - - 54,461,418 108,922,835

0 The Company Nan Ya Technology Corp.



- - - 54,461,418 108,922,835

0 The Company Asian Pacific Investment Corp


Yes 1,240,000 340,000 340,000 1.602%~1.628% 2 - Short-term financing

- - - 54,461,418 108,922,835

0 The Company Formosa Ha Tinh (Cayman) Limited


Yes 6,457,955 - - 1.627%~1.628% 2 - Short-term financing

- - - 54,461,418 108,922,835

0 The Company Formosa Ha Tinh (Cayman) Limited Taiwan Branch


Yes 651,000 651,000 394,000 1.602%~1.628% 2 - Short-term financing

- - - 54,461,418 108,922,835

0 The Company Formosa Group Ocean Marine Corp



- - - 54,461,418 108,922,835

1 Formosa Industries (Ningbo) Co., Ltd

Formosa Polyethylene (Ningbo) Co., Ltd..


Yes 182,280(RMB35,000)

- - 3.395%~3.920% 2 - Short-term financing

- - - 2,695,655 2,695,655 Note 4, 5

35



(Continued)

No. Name of Lenders Name of

Borrowers Account

name Related party

Highest balance of

financing to other parties during the

period

Ending Balance

Actual usage

during the period

Range of interest rates

during the period

Purposes of fund

financing for the

borrowers (Note 1)

Transaction amount for

business between two

parties

Reasons for short-term financing

Allowance for bad

debt

Collateral Individual

funding loan limits

(Note 2)

Maximum limitation on fund

financing (Note 2)

Note

Name Value

2 Formosa Acrylic Esters (Ningbo) Co., Ltd.



Yes $ 2,070,180(RMB397,500)

$ 2,070,180(RMB397,500)

$ 2,070,077(RMB397,500)

3.395% 2 - Short-term financing

- - - $ 5,271,346 $ 5,271,346 Note 4, 5




Yes 843,696(RMB162,000)

312,480(RMB60,000)

312,464(RMB60,000)

3.220%~3.395% 2 - Short-term financing

- - - 5,271,346 5,271,346 Note 4, 5


Fujian Fuxin Special Steel Co., Ltd


Yes 781,200(RMB150,000)

- - 3.920% 2 - Short-term financing

- - - 5,271,346 5,271,346 Note 5

3 Formosa electronic (Ningbo) Co., Ltd.

Formosa Polyethylene (Ningbo) Co., Ltd..


Yes 109,368(RMB21,000)

93,744(RMB18,000)

93,739(RMB18,000)


- - - 134,171 134,171 Note 4, 5

3 Formosa electronic (Ningbo) Co., Ltd.



Yes 101,035 (RMB19,400)

93,744(RMB18,000)

93,739(RMB18,000)


134,171 134,171 Note 4, 5

4 Formosa Polypropylene (Ningbo) Co., Ltd.



Yes 416,640(RMB80,000)

104,160(RMB20,000)

104,155(RMB20,000)


- - - 2,972,083 2,972,083 Note 4, 5

4 Formosa Polypropylene (Ningbo) Co., Ltd.



Yes 260,400(RMB50,000)

52,080(RMB10,000)

52,077(RMB10,000)


- - - 2,972,083 2,972,083 Note 4, 5

Note 1: (1) Those with business contact please fill in 1

(2) Those necessary for short-term financing please fill in 2. Note 2: (1) The maximum financing allowed should not exceed 50% of the Company’s net equity, and the maximum short-term financing to companies with no transaction with the Company could not exceed 40% of the

Company’s net equity as of September 30, 2015. (2) The Company grants financing to a related party even if the Company has no normal business transactions with the entity. However, such financing is limited to 25% of the related party’s equity based on the

current independent accountants’ review report. (3) The Company grants financing to an entity even if the Company has no normal business transactions with the entity. However, such financing is limited to 20% of the Company’s equity based on the current

independent accountants’ review report. Note 3: The ending balance was approved by the Board of Directors. Note 4: The transaction has already been written off in the consolidated financial statements. Note 5: The exchange rate of New Taiwan dollars to RMB dollars was 5.208 to 1 for the highest balance of financing to other parties during the period and for the ending balance; and the exchange rate of New Taiwan dollars

to RMB dollars was 5.20774 to 1 for the actual usage during the period.

36



(Continued)

(ii) Guarantees and endorsements for other parties:

No.

Endorsement guarantee provider

Counter-party

Limitation amount of

guarantees and endorsements for

a specific enterprise

Highest balance for

guarantee and endorsements

during the period

Balance of guarantees and endorsements as

of September 30, 2015

Amount Actually Drawn

Amount of Endorsement/

Guarantee Collateralized by

Properties

Ratio of accumulated amounts of

guarantees and endorsements to net worth of

the latest financial

statements

Maximum amounts for

guarantees and endorsements

Parent Companyendorses/

guaranteesto third

parties onbehalf of

subsidiary

Subsidiary endorses/

guarantees to third parties

on behalf of Parent Company

Endorsements/ guarantees to the third

parties on behalf of the Companies

in Mainland China

Name

Relationship with The Company(Note 2)

0 The Company

Formosa Sumco Technology Corp.

6 $ 176,999,607 $ 206,498 $ - $ - - - $353,999,214 N N N

0 The Company

Formosa Group (Cayman) Limited

6 176,999,607 48,082,781 40,706,030 39,040,630 - 14.95 % 353,999,214 N N N

Note 1: The guarantees and endorsements of the Company and its subsidiaries were listed in the form of numbers with the rules below:

(1) The Company is represented by 0. (2) The subsidiaries are represented numerically starting from 1.

Note 2: There are six conditions in which the Company may have guarantees or endorsements for other parties as follows:

(1) The Company has business relationship. (2) The Company holds directly more than 50% of the common shares of stock of the subsidiaries. (3) In aggregate, the Company and its subsidiaries hold more than 50% of the investee. (4) In aggregate, the Company holds directly or its subsidiaries hold indirectly more than 50% of the investee. (5) The Company is required to provide guarantees or endorsements for the construction project based on the construction contract. (6) The stockholders of the Company provide guarantees or endorsements for the investee in proportion to their stockholding percentage.

37



(Continued)

(iii) The securities held at balance sheet date (excluding subsidiaries, associates and joint ventures):

Security holder Category and name of security

Relationship between issuer of security and the company which

holds securities

Account name

September 30, 2015

Note Shares / Units (in

thousands)

Carrying value

Percentage of

ownership

Market value or

net asset value The Company Asian Pacific Investment Corp. Other related parties Financial assets carried at cost 68,743 $ 777,804 16.17% $2,730,079 Note The Company Mai-Liao Harbor Administration Corp. Other related parties Financial assets carried at cost 39,574 539,486 17.99% 907,559 Note The Company Taiwan Aerospace Corp. - Financial assets carried at cost 1,103 11,026 0.81% 12,223 Note The Company Chinese Television System Inc. - Financial assets carried at cost 1,769 28,609 1.05% 57,098 Note The Company China Investment & Development Co., Ltd. - Financial assets carried at cost 1,287 8,250 0.80% 13,609 Note The Company Formosa Plastics Development Corp. Other related parties Financial assets carried at cost 13,639 90,010 18.00% 223,489 Note The Company Xiangho Aircraft Leasing Corp. - Financial assets carried at cost 2,071 - 9.55% - The Company Formosa Petrochemical Transportation

Corporation, Ltd. Other related parties Financial assets carried at cost 2,642 24,013 12.00% 37,188 Note

The Company Formosa Network Technology Corp. Other related parties Financial assets carried at cost 2,340 13,331 12.50% 42,763 Note The Company Formosa Plastics Marine Corp. Other related parties Financial assets carried at cost 2,429 15,000 15.00% 107,017 Note The Company Formosa Group Ocean Investment Corp. Other related parties Financial assets carried at cost 3 856,948 19.00% 9,122,709 Note The Company Formosa Plastics Maritime Corp. Other related parties Financial assets carried at cost 354 1,691 18.11% 53,339 Note The Company Am Trust Capital I Corp. - Financial assets carried at cost 5,000 50,000 3.91% 50,740 Note The Company Central Leasing International Corp. - Financial assets carried at cost 2,373 - 1.43% - The Company Inteplast Taiwan Corporation Other related parties Financial assets carried at cost 2,160 21,600 18.00% 21,930 Note The Company Mega Growth Venture Capital Co., Ltd. - Financial assets carried at cost 2,500 25,000 2.50% 25,000 The Company Nan Ya Plastics Corporation Other related parties Available-for-sale financial asset－current 783,357 43,554,642 9.88% 43,554,642

The Company Formosa Chemicals & Fibre Corporation Other related parties Available-for-sale financial asset－current 198,744 13,276,095 3.39% 13,276,095

The Company Nan Ya Technology Corp. Other related parties Available-for-sale financial asset－current 235,074 8,580,194 9.68 % 8,580,194

The Company Nan Ya Technology Corp. Other related parties Available-for-sale financial asset－non-current 132,464 4,834,937 5.45 % 4,834,937

Note : The net asset value of equity was calculated based on the audited financial statements as of December 31,2014.

38



(Continued)

(iv) The accumulated purchase or sale of securities for the period exceeding $300 million or 20% of the paid-in capital:

Company Name

Type and Issuer of Marketable Securities

Account Name CounterpartyNature of the Relationship

Beginning Balance Acquisition Disposal Ending Balance

Number ofShares

(in thousands)Amount

Number ofShares


Number ofShares


Carrying Value

Gain (Loss) onDisposal

Number of Shares

(in thousands)

Amount

The Company

Stock- Nan Ya Technology Corp.

Available-for-sale financial asset－current

Nan Ya Technology Corp.

Other related parties

238,895 $ 19,350,480 - $ - (3,821) $ 308,707 (Note 1)

$(148,894) $159,813 235,074 $ 8,580,194 (Note 2)

The Company

Securities-Formosa Ha Tinh (Cayman) Limited

Investments accounted for using equity method

Formosa Ha Tinh (Cayman) Limited

Associates 508,237 15,761,499 - - 508,237 - 15,077,105 - - - (Note 3)

The Company

Securities-Formosa Group Investment (Cayman) Limited


Formosa Group Investment (Cayman) Limited

Associates 13 384 508,237 15,077,105 (Note 4)

- - - - 508,250 15,864,917 (Note 5)

The Company

Securities-Sky Dragon Investment Limited


Sky Dragon Investment Limited

Associates 125,000 2,265,937 75,000 2,349,150 - - - - 200,000 3,356,266 (Note 6)

The Company

Taishin 1699 Money Market


- - - - 187,578 2,500,000 187,578 2,500,675 2,500,000 675 - -

The Company

Paradigm Pion Money Market


- - - - 87,750 1,000,000 87,850 1,000,167 1,000,000 167 - -

Note 1: The Group sold 309,768 thousand common shares of Nan Ya Technology Corp. for $308,707 after deducting related expenses of $1,061.

Note 2: The ending balance includes unrealized loss on financial instruments of $10,621,392.

Note 3: The ending balance includes the net loss of investment accounted for using equity method of $364,845 and accumulated translation adjustment of $(319,549).

Note 4: On September 23, 2015, the Group reorganized its investment structure. Please refer to Note 6(5) for detail information.

Note 5: The ending balance includes the net loss of investment accounted for using equity method of $172,351 and accumulated translation adjustment of $959,779. Note 6: The ending balance includes the net loss of investment accounted for using equity method of $1,285,813 and accumulated translation adjustment of $26,992.

(v) Information on the acquisition of real estate which exceeds $300 million or 20% of the paid-in capital for the year ended September 30, 2015: None.

(vi) Information on the disposal of real estate which exceeds $300 million or 20% of the paid-in capital for the year ended September 30, 2015: None.

39



(Continued)

(vii) Information regarding related-party purchase and sale transactions which exceed $100 million or 20% of the paid-in capital:

Company name Related party Relationship

Transaction details Abnormal transaction

Note/Account (payable) receivable

Purchase(Sale)

Amount % to total purchase

/sale Payment terms Unit price

Payment terms

Ending balance

% to total

Note

The Company Nan Ya Plastics Corporation Other related parties

(Sales) $ (9,981,765) (8.15)% Before the 27th of the following month

- $ 1,075,491 9.34 %

The Company Formosa Chemicals & Fibre Corporation 〃〃 (4,671,360) (3.81)% Before the 27th of the following month

- 500,314 4.34 %

The Company Formosa Petrochemical Corporation Associates 〃 (5,313,797) (4.34)% Before the 27th of the following month

- 432,291 3.75 %

The Company Formosa Heavy Industries Corp. 〃〃 (204,776) (0.17)% Before the 27th of the following month

- 3,665 0.03 %

The Company Formosa Daikin Advanced Chemical Co., Ltd. Jointly controlled entities 〃 (402,477) (0.33)% Before the 27th of the following month

- 46,480 0.40 %

The Company Formosa Taffeta Co., Ltd Other related parties 〃 (228,751) (0.19)% Before the 27th of the following month

- 23,988 0.21 %

The Company Inteplast Taiwan Corporation Other related parties 〃 (147,623) (0.12)% Before the 27th of the following month

- 20,374 0.18 %

The Company Nan Ya Electronic Materials(Kunshan) Co.,Ltd. Other related parties 〃 (126,200) (0.10)% O/A 60 days - 47,977 0.42 %

The Company Formosa Industries (Ningbo) Co., Ltd. Parent-subsidiary 〃 (3,190,727) (2.60)% O/A 90 days - 1,256,488 10.91 % Note

The Company Formosa Acrylic Esters (Ningbo) Co., Ltd. Parent-subsidiary 〃 (1,578,385) (1.29)% O/A 90 days - 546,181 4.74 % Note

The Company Formosa ABS Plastic (Ningbo) Co., Ltd. Other related parties 〃 (2,604,079) (2.13)% O/A 60 days - 436,127 3.79 %

The Company Formosa Plastics Corp., U.S.A. Associates 〃 (1,869,498) (1.53)% O/A 90 days - 950,828 8.25 %

The Company Nan Ya Rigid Film (Guangzhou) Co., Ltd. Other related parties 〃 (224,149) (0.18)% O/A 60 days - - -

The Company Nan Ya Plastics (Guangzhou) Co., Ltd. Other related parties 〃 (135,214) (0.11)% O/A 60 days - 41,165 0.36 %



Subsidiaries 〃 (378,445) (5.94)% Before the 90th of the following month

- 43,653 2.14 % Note


Nan Ya Plastics (Nantong) Co., Ltd. Other related parties 〃 (368,257) (5.11)% Before the 30th of the following month

- 103,920 13.61%


Nan Ya Plastics Film (Nantong) Co., Ltd. Other related parties 〃 (210,782) (2.92)% Before the 30th of the following month

- 57,707 7.56%

40



(Continued)

Company name Related party Relationship

Transaction details Abnormal transaction

Note/Account (payable) receivable

Purchase(Sale)

Amount % to total purchase

/sale Payment terms Unit price

Payment terms

Ending balance

% to total

Note


Nan Ya Plastics (Guangzhou) Co., Ltd.

Other related parties (Sales) $ (205,227) (2.85)%

Before the 30th of the following month

- $ 46,346 6.07%


Nan Ya Plastics (Hsiamen) Co., Ltd.

〃

〃

(144,611) (2.01)% Before the 30th of the following month

- 23,958 3.14%

The Company Nan Ya Plastics Corporation Other related parties Purchase 784,347 0.88 % Before the 27th of the following month

- (81,815) (1.12)%

The Company Formosa Chemicals & Fibre Corporation 〃〃 1,621,234 1.82 % Before the 27th of the following month

- (190,173) (2.61)%

The Company Formosa Petrochemical Corporation Associates 〃 58,617,938 65.78 % Before the 27th of the following month

- (5,979,680) (82.04)%

The Company Formosa Heavy Industries Corp. 〃〃 259,185 0.29 % Before the 27th of the following month

- (4,526) (0.06)%


The Company Parent-subsidiary 〃 3,533,584 61.09 % O/A 90 days - (1,015,259) (74.17)% Note, Note 1


Nan Ya Plastics Corporation Other related parties 〃 316,562 5.47 % O/A 90 days - (32,762) (2.39)%


The Company Parent-subsidiary 〃 7,891,258 75.15 % O/A 90 days - (1,824,314) (85.22)% Note, Note 1


The Company Parent-subsidiary 〃 290,319 100.00 % O/A 90 days - (115,725) (100.00) % Note, Note 1

Note ：The transaction has already been written off in the consolidated financial statements.

Note 1：Including the purchases of raw materials on behalf of related parties.

41



(Continued)

(viii) Information regarding receivables from related parties which exceed $100 million or 20% of the paid-in capital:

Company name Related party Relationship Ending balance

Turnover day

Overdue Amounts received in subsequent

periods

Allowance for bad debts

Note Amount Action taken

The Company Nan Ya Plastics Corporation Other related parties $ 1,075,491 12.48 % - - - -

The Company Formosa Chemicals & Fibre Corporation 〃 500,314 11.63 % - - - -

The Company Formosa Petrochemical Corporation Associates 432,291 16.24 % - - - -

The Company Formosa Industries (Ningbo) Co., Ltd. Parent-subsidiary 1,256,488 3.47 % - - - - Note

The Company Formosa Acrylic Esters (Ningbo) Co., Ltd. 〃 546,181 4.98 % - - - - Note

The Company Formosa ABS Plastics (Ningbo) Co., Ltd. Other related parties 436,127 5.04 % - - - -

The Company Formosa Plastics Corp., U.S.A. Associates 950,828 3.18 % - - - -

The Company Formosa Heavy Industries Corp. Associates 3,000,000 - - - - -

The Company Nan Ya Technology Corp. Other related parties 6,500,000 - - - - -

The Company Asian Pacific Investment Corp. 〃 340,000 - - - - -

The Company Formosa Group Ocean Marine Corp. 〃 2,517,728 - - - - -

The Company Formosa Plastic Transportation Corp. Associates 150,000 - - - - -

The Company Formosa Ha Tinh (Cayman) Limited Taiwan Branch 〃 394,000 - - - - -

The Company Formosa Acrylic Esters (Ningbo) Co., Ltd. Parent-subsidiary 469,077 - - - - - Note

The Company Formosa Polypropylene (Ningbo) Co., Ltd. 〃 1,822,697 - - - - - Note

The Company Formosa Polyethylene (Ningbo) Co., Ltd. 〃 115,725 - - - - - Note

The Company Fujian Fuxin Special Steel Co., Ltd Associates 223,657 - - - - -

The Company Formosa Ha Tinh Steel Corporation 〃 7,199,191 - - - - -

Formosa Industries (Ningbo) Co., Ltd. Na Ya Plastics (Nantong) Co., Ltd. Other related parties 103,920 - - - - -

Formosa Acrylic Esters (Ningbo) Co., Ltd. Formosa Super Absorbent Polymer (Ningbo) Co., Ltd. Subsidiaries 2,070,077 - - - - - Note

Formosa Acrylic Esters (Ningbo) Co., Ltd. Formosa Polyethylene (Ningbo) Co., Ltd. 〃 312,464 - - - - - Note

Formosa Polypropylene (Ningbo) Co., Ltd. Formosa Super Absorbent Polymer (Ningbo) Co., Ltd. 〃 104,155 - - - - - Note

Note ：The transaction has already been written off in the consolidated financial statements.

42



(Continued)

(ix) Intercompany relationships and significant intercompany transactions:

No. Company name Counter party Relationship

Intercompany transactions

Financial Statement Item

Amount Terms Percentage of

consolidated total gross sales or total assets

0 The Company Formosa Industries (Ningbo) Co., Ltd. 1 Sales $3,190,727 O/A 90 days 2.19 %

0 The Company Formosa Industries (Ningbo) Co., Ltd. 1 Accounts receivable 1,256,488 〃 0.30 %

0 The Company Formosa Acrylic Esters (Ningbo) Co., Ltd. 1 Sales 1,578,385 〃 1.08 %

0 The Company Formosa Acrylic Esters (Ningbo) Co., Ltd. 1 Accounts receivable 546,181 〃 0.13 %

0 The Company Formosa Acrylic Esters (Ningbo) Co., Ltd. 1 Other receivables－related parties 469,077 O/A 60 days 0.11 %

0 The Company Formosa Polypropylene (Ningbo) Co., Ltd. 1 Other receivables－related parties 1,822,697 〃 0.43 %

0 The Company Formosa Polyethylene (Ningbo) Co., Ltd. 1 Other receivables－related parties 115,725 〃 0.03 %

1 Formosa Acrylic Esters (Ningbo) Co., Ltd. Formosa Super Absorbent Polymer (Ningbo) Co., Ltd. 3 Sales 378,445 Before the 90th of the following month 0.26 %

1 Formosa Acrylic Esters (Ningbo) Co., Ltd. Formosa Super Absorbent Polymer (Ningbo) Co., Ltd. 3 Accounts receivable 43,653 〃 0.01 %

1 Formosa Acrylic Esters (Ningbo) Co., Ltd. Formosa Polyethylene (Ningbo) Co., Ltd. 3 Due from related parties 312,464 - 0.07 %

1 Formosa Acrylic Esters (Ningbo) Co., Ltd. Formosa Super Absorbent Polymer (Ningbo) Co., Ltd. 3 Due from related parties 2,070,077 - 0.49 %

2 Formosa Polypropylene (Ningbo) Co., Ltd. Formosa Super Absorbent Polymer (Ningbo) Co., Ltd. 3 Due from related parties 104,155 - 0.02 %

Note 1: Assigned numbers represent the following:

1. 0 represents the parent company.

2. The subsidiaries are represented numerically starting from 1.

Note 2: The terms of transactions are defined as follows:

1. Represents the parent company having transaction with a subsidiary.

2. Represents a subsidiary having transaction with the parent company.

3. Represents a subsidiary having transaction with a subsidiary.

43



(Continued)

(b) Information on investment (excluding those in Mainland China, the amounts expressed USD are in thousands):

Investor company

Investee company Location Major operations

Original investment Amount Balance as of September 30, 2015 Net income of

investee

Investment income (loss) recognized by

the investor company

Notes September 30, 2015

December 31, 2014

Shares % Carrying

value

The Company Formosa Petrochemical Corporation Taiwan Petrochemicals $ 30,388,721 $ 30,388,721 2,742,549 28.79% $ 71,391,111 $34,777,773 $9,932,732 Note, Note 2 The Company Formosa Plastics Corp., U.S.A. U.S.A Chemicals 5,614,024 5,614,024 70 22.61% 47,456,205 20,492,580 4,638,733 Note, Note 2 The Company Formosa Heavy Industries Corp. Taiwan Mechanical equipment 2,498,463 2,498,463 651,828 32.92% 8,269,295 1,420,526 485,297 Note, Note 2 The Company Sky Dragon Investment Limited Samoa Investment 6,201,032 3,851,882 200,000 50.00% 3,356,266 (2,571,626) (1,285,813) Note, Note 2 The Company Formosa Plastics Corp. (Cayman Ltd.) Cayman Investment 19,004,308 19,004,308 75 100.00% 30,373,330 (1,033,999) (1,033,999) Note, Note 1 The Company Mai Liao Power Corp. Taiwan Electricity 5,985,531 5,985,531 498,842 24.94% 11,249,821 6,048,746 1,508,557 Note, Note 2 The Company Formosa Sumco Technology Corp. Taiwan Electronics manufacture 2,837,042 2,837,042 225,415 29.06% 5,819,821 1,139,891 331,249 Note, Note 2 The Company Formosa Transportation Corp. Taiwan Transportation 60,664 60,664 3,993 33.33% 683,853 93,913 31,301 Note, Note 2 The Company Formosa Fairway Corp. Taiwan Transportation 33,330 33,330 4,252 33.33% 79,292 11,649 3,883 Note 2 The Company Yi-Jih Development Corp. Taiwan Construction 57,000 57,000 5,700 28.72% 62,422 743 213 Note 2 The Company Ya Tai Development Corp. Taiwan Development of land 54,034 54,034 1,306 45.04% 47,499 (3,455) (1,556) Note 2 The Company Formosa Asahi Spandex Co., Ltd. Taiwan Artificial fiber 501,752 501,752 50 50.00% 1,331,754 279,074 139,537 Note 2 The Company Formosa Automobile Corporation Taiwan Automobile 944,972 944,972 27,044 45.00% - 98,107 44,148 Note 2 The Company Wha Ya Park Management Consulting Corporation Ltd. Taiwan Consulting service 341 341 33 33.00% 2,263 454 150 Note 2 The Company Formosa Daikin Advanced Chemical Co., Ltd. Taiwan Chemical industry 100,000 100,000 24 50.00% 825,981 53,357 26,679 Note 2 The Company Su-Hua Transportation Corporation Taiwan Transportation 50,000 50,000 7,659 25.00% 212,395 127,303 31,826 Note 2 The Company Formosa Resources Corporation Taiwan Mining industry 4,162,500 4,162,500 416,250 25.00% 4,277,028 (328,640) (82,160) Note, Note 2 The Company Formosa Environmental Technology Corporation Taiwan Environmental industry 417,145 417,145 41,714 24.34% 263,448 (16,045) (3,905) Note, Note 2 The Company Formosa Ha Tinh (Cayman) Limited Cayman Investment - 15,369,735 - - % - (2,473,526) (364,845) Note, Note 2 The Company Formosa Group (Cayman) Limited Cayman Investment 377 377 13 25.00% 98,601 288,727 72,181 Note, Note 2 The Company Formosa Group Investment (Cayman) Limited Cayman Investment 15,370,112 377 508,250 25.00% 15,864,917 (689,402) (172,351) Note, Note 2 The Company Formosa Plastics Development Corporation Ltd. Taiwan Construction 15,000 15,000 1,500 33.33% 11,499 (9,182) (3,061) Note 2 Formosa Plastics Corp. (Cayman Ltd.)

Formosa Industries (Hong Kong) Limited Hong Kong

Reinvestment 7,781,833(USD234,902)

7,450,622(USD234,902)

- 100.00% 30,245,990(USD913,003)

(1,033,456)(USD32,710)

(1,033,456) (USD32,710)

Note 2, Note 3

Note ： Including cumulative translation adjustments.

Note 1：The transaction has already been written off in the consolidated financial statements.

Note 2：Long-term equity investments under equity method.

Note 3：The exchange rate of New Taiwan dollars to US dollars on September 30, 2015, was 33.128 to 1. The average exchange rate of New Taiwan dollars to US dollars for the nine-month period ended September 30, 2015, was 31.5949 to 1.

44



(Continued)

(c) Information regarding investments in Mainland China:

(i) Information on indirect investment in companies in Mainland China (amounts expressed in USD are in thousands):

Name of the PRC investee company

Primary business

scope

Amount of paid-in capital

Method ofinvestment

Investment transferred

from Taiwan, beginning of

period

Six-month period ended September 30, 2015

Investment transferred

from Taiwan, end of period

Equity in the

earnings (losses)

Direct and indirect

shareholding percentage by the company

Recognized gain or loss

from investment for

the current period

Carrying value of investment,

end of period

Remitted gain on investment, end of period Remittance Remittance


Plastics $ 5,740,234(USD177,350)

Indirect investment

$ 4,206,583(USD126,000)

- - $ 4,206,583(USD126,000)

(588,980) (USD-18,642)

100.00% $ (588,980)(USD-18,642)

$ 6,736,660 (USD203,352)

-


Acrylic esters 7,849,446(USD248,973)

Indirect investment

5,332,705(USD163,570)

- - 5,332,705(USD163,570)

(1,228,968) (USD-38,898)

100.00% (1,228,968)(USD-38,898)

13,170,608(USD397,567)

-


Polypropylene 6,980,064(USD211,900)

Indirect investment

6,980,064(USD211,900)

- - 6,980,064(USD211,900)

910,142 (USD28,807)

100.00% 910,142(USD28,807)

7,430,207(USD224,288)

-


Absorbent polymer

834,293(USD26,300)

Indirect investment

624,930(USD19,300)

- - 624,930(USD19,300)

5,928 (USD187)

100.00% 5,928 (USD187)

1,091,889 (USD32,960)

-

Formosa Electronic (Ningbo) Co., Ltd.

Electronics 74,648(USD2,260)

Indirect investment

66,137(USD2,000)

- - 66,137(USD2,000)

21,541 (USD682)

100.00% 21,541 (USD682)

268,343 (USD8,100)

-


Polyethylene 1,670,088(USD57,500)

Indirect investment

1,670,088(USD57,500)

- - 1,670,088(USD57,500)

(153,119) (USD-4,846)

100.00% (153,119) (USD-4,846)

1,548,283(USD46,736)

-

Formosa Mitsui Advanced Chemical Co., Ltd.

Electrolyte 244,196(USD8,200)

Indirect investment

122,098(USD4,100)

-

- 122,098(USD4,100)

(1,094) (USD-35)

50.00% (547)(USD-17)

123,554 (USD3,730)

-

Fujian Fuxin Special Steel Co., Ltd.

Steel 24,768,000(USD1,000,000)

Indirect investment

3,842,850(USD125,000)

2,349,150(USD75,000)

- 6,192,000 (USD200,000)

(5,143,253) (USD-162,787)

32.90% (1,285,813)(USD-40,697)

3,355,649 (USD101,293)

-

Note : Except for Formosa Mitsui Advanced Chemical Co., Ltd. and Fujian Fuxin Special Steel Co., Ltd., the others were already written off in the consolidated financial statements.

45



(Continued)

(ii) Quota for investment in Mainland China:

Accumulative remittance from Taiwan to Mainland China,

end of the period

Amount of investment approved by Investment Commission, Ministry of

Economic Affairs (Note 1)

Limit on the amount of investment in Mainland China (Note 2)

$ 25,194,605 (USD784,370)

$ 30,755,803 (USD928,383)

-

Note: The exchange rate of New Taiwan dollars to US dollars on September 30, 2015, was 33.128 to 1. Note 1: Including USD$144,013 thousand approved capital increase out of retained earnings. Note 2: The Industrial Development Bureau of the MOEA issued a letter to the Company stating that it qualifies under Section 12 of the Statute for Upgrading Industries.

(iii) Significant transactions：None.

46



14. Segment information Operating segments are combined and reconciled as follows:

For the nine-month period ended September 30, 2014 Plastic

division Polyolefin division

Polypropylenedivision

Tairylan division

Chemistry division

Others divisions

Adjustments and eliminated

Total

Revenue: From external customers $ 52,329,784 30,279,240 30,612,101 24,647,865 25,261,802 3,228,937 - 166,359,729 From sales among intersegments 1,240,659 1,587,907 99,545 61,435 2,541,227 4,010,680 (9,541,453) - Total revenue $ 53,570,443 31,867,147 30,711,646 24,709,300 27,803,029 7,239,617 (9,541,453) 166,359,729

Reportable segment profit or loss $ 1,102,124 1,376,824 439,610 (812,032) 1,730,273 697,263 16,233,490 20,767,552

For the nine-month period ended September 30, 2015 Plastic

division Polyolefin division


Tairylan division

Chemistry division

Others divisions


Total

Revenue: From external customers $ 48,005,345 27,768,355 28,225,526 19,342,665 19,516,206 2,841,609 - 145,699,706 From sales among intersegments 1,032,985 1,353,501 74,686 45,693 1,920,511 3,847,515 (8,274,891) - Total revenue $ 49,038,330 29,121,856 28,300,212 19,388,358 21,436,717 6,689,124 (8,274,891) 145,699,706

Reportable segment profit or loss $ 2,835,581 2,802,824 3,540,882 (2,054,513) 2,457,993 987,396 17,856,406 28,426,569

Plastic division

Polyolefin division


Tairylan division

Chemistry division

Others divisions


Total

Reportable segment assets

September 30, 2014 $ 36,120,482 14,012,106 25,217,628 47,498,474 7,478,424 359,041,742 (62,023,013) 427,345,843

December 31, 2014 $ 36,331,322 14,901,334 20,581,766 44,748,084 8,867,489 359,879,813 (54,506,817) 430,802,991

September 30, 2015 $ 35,284,314 17,018,016 18,172,134 42,665,906 8,552,311 347,959,768 (47,374,314) 422,278,135

formosa plastics corporation and subsidiaries consolidated financial … report.pdf · formosa...

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