Financial Status, Operating Results and Status of Risk Management 1. Financial Status 2. Operating Results 3. Cash Flow Analysis 4. Major Capital Expenditure 5. Investment Policies 6. Risk Management 7. Other Material Events Financial Information 1. Condensed Balance Sheets 2. Condensed Statements of Comprehensive Income / Statements of Income 3. Auditors’ Opinions from 2011 to 2014 4. Five-Year Financial Analysis

3.1. Consolidated Report

Unit: NT$ thousands

Cash Balance Dec. 31, 2013	Net Cash Provided by Operating Activities in 2014	Net Cash Outflows from Investing and Financing Activities in 2014	Impact of Foreign Exchange Ratio	Cash Balance Dec. 31, 2014	Remedy for Cash Shortfall (Investment & Financing Plan)
$132,997,726	$44,329,774	$11,644,983	$3,825,023	$192,797,506	--

3.1.1. Analysis of the Change in Cash Flow in 2014

Operating activities: Net cash inflow of NT$44,329,774 thousand, mainly from operating profits

Investing activities: Net cash inflow of NT$17,801,767 thousand, mainly due to net cash inflows from the acquisition of MStar (Cayman) Inc. which is partically offset by the purchase of intangible assets, property, plant and equipment and acquisition of available-for-sale financial assets.

Financing activities: Net cash outflow of NT$6,156,784 thousand, mainly due to the distribution of earnings which is partially offset by increase in short-term borrowings.

3.1.2. Remedial Actions for Cash Shortfall

The company has ample cash on-hand; remedial actions are not required.

3.1.3. Cash Flow Projection for Next Year

Not applicable.

3.2. Parent Company

Unit: NT$ thousands

Cash Balance Dec. 31, 2013	Net Cash Provided by Operating Activities in 2014	Net Cash Outflows from Investing and Financing Activities in 2014	Cash Balance Dec. 31, 2014	Remedy for Cash Shortfall (Investment & Financing Plan)
$53,710,940	$71,189,319	$2,547,890	$127,448,149	--

3.2.1. Analysis of the Change in Cash Flow in 2014

Operating activities: Net cash inflow of NT$71,189,319 thousand, mainly from operating profits

Investing activities: Net cash inflow of NT$4,581,752 thousand, mainly due to net cash inflows from the acquisitions of Ralink and MStar (Cayman) Inc. which is partly offset by the purchase of intangible assets, property, plant and equipment.

Financing activities: Net cash outflow of NT$2,033,862 thousand, mainly due to the distribution of earnings; partly offset by increase in short-term borrowings.

3.2.2. Remedial Actions for Cash Shortfall

The company has ample cash on-hand; remedial actions are not required.

3.2.3. Cash Flow Projection for Next Year

Not applicable.