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 Sheet 2. Condensed Statements of Comprehensive Income / Statements of Income 3. Auditors’ Opinions from 2012 to 2016 4. Five-Year Financial Analysis

4.1. Major Capital Expenditure and Sources of Funding

Unit: NT$ thousands

Plan	Actual or Planned Source of Capital	Estimated Capital Requirement (2016 and 2015)	Status of Actual or Projected Use of Capital 2016	Status of Actual or Projected Use of Capital 2015
Fixed Assets - Land, Office Building and R&D Equipment	Cash flow generated from operation	$16,039,620	$6,671,275	$9,368,345
Intangible Assets - Software, IPs and Patents	Cash flow generated from operation	$2,392,162	$366,912	$2,025,250

4.2. Expected Future Benefits

(1) Fixed Assets - Land and office buildings:

Investment in proper and well-planned space is necessary for attracting talents who are responsible for developing new products. Product development is crucial to the Company’s sustainability.

(2) Fixed Assets - R&D equipment:

Equipment and software can help the Company’s R&D process become more efficient and thus shorten the product development cycle.

(3) Intangible assets: software, IPs and patents:

It is necessary for the company to strengthen its patent protection in order to navigate the current competitive landscape, which is often mired in complex patent disputes. The company has continued its efforts to obtain high-value patents to improve the company’s patent portfolio. These patents can be applied in many of the company’s advanced products.