SENAO NETWORKS, INC. AND SUBSIDIARIES

SENAO NETWORKS, INC. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND REVIEW REPORT OF INDEPENDENT ACCOUNTANTS SEPTEMBER 30, 2015 AND 2014 ------------------------------------------------------------------------------------------------------------------------------------ For the convenience of readers and for information purpose only, the auditors report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors report and financial statements shall prevail.

SENAO NETWORKS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2015, DECEMBER 31, 2014 AND SEPTEMBER 30, 2014 (Expressed in thousands of New Taiwan dollars) (The consolidated balance sheets as of September 30, 2015 and 2014 are unaudited) September 30, 2015 December 31, 2014 September 30, 2014 Liabilities and Equity Notes AMOUNT % AMOUNT % AMOUNT % Current liabilities Short-term borrowings 6(6) $ 40,866 1 $ 16,009 - $ 38,237 1 Financial liabilities at fair value 6(7) through profit or loss - current - - 2,028-7,603 - Notes payable 3,508-4,373-6,610 - Accounts payable 1,590,097 32 1,360,712 30 1,369,884 32 Other payables 6(8) 623,369 13 565,120 13 512,038 12 Current income tax liabilities 50,819 1 61,243 1 46,786 1 Provisions 6(11) 101,264 2 81,450 2 92,601 2 Other current liabilities 6(12) 107,204 2 163,756 4 144,520 4 Total current liabilities 2,517,127 51 2,254,691 50 2,218,279 52 Non-current liabilities Other non-current liabilities 26,714 1 23,176 1 34,162 1 Total liabilities 2,543,841 52 2,277,867 51 2,252,441 53 Equity Equity attributable to owners of parent Share capital 6(13) Share capital - common stock 490,359 10 486,929 11 486,139 11 Capital surplus 6(10)(14) Capital surplus 702,673 14 700,545 15 700,046 16 Retained earnings 6(15) Legal reserve 197,989 4 136,811 3 136,811 3 Special reserve 9,326-21,628 1 21,628 1 Unappropriated retained earnings 990,667 20 868,767 19 697,127 16 Other equity interest Other equity interest ( 1,289) - ( 9,326) - ( 17,730) - Total equity 2,389,725 48 2,205,354 49 2,024,021 47 Significant contingent liabilities and 7 and 9 unrecognised contract commitments Total liabilities and equity $ 4,933,566 100 $ 4,483,221 100 $ 4,276,462 100 The accompanying notes are an integral part of these consolidated financial statements. See review report of independent accountants dated October 30, 2015. ~4~

SENAO NETWORKS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2015 AND 2014 (Expressed in thousands of New Taiwan dollars, except for earnings per share amount) (UNAUDITED) Three months ended September 30 Nine months ended September 30 2015 2014 2015 2014 Items Notes AMOUNT % AMOUNT % AMOUNT % AMOUNT % Operating revenues 6(16) $ 2,118,552 100 $ 1,632,526 100 $ 5,806,795 100 $ 4,510,279 100 Operating costs 6(3)(4)(19) and 7 ( 1,549,935) ( 73) ( 1,143,227) ( 70) ( 4,296,810) ( 74) ( 3,197,772) ( 71) Net operating margin 568,617 27 489,299 30 1,509,985 26 1,312,507 29 Operating expenses 6(19) and 7 Selling expenses ( 131,585) ( 6) ( 127,825) ( 8) ( 364,283) ( 6) ( 359,403) ( 8) General and administrative expenses ( 98,450) ( 5) ( 78,593) ( 5) ( 230,813) ( 4) ( 186,543) ( 4) Research and development expenses ( 123,566) ( 6) ( 102,638) ( 6) ( 324,732) ( 6) ( 270,481) ( 6) Total operating expenses ( 353,601) ( 17) ( 309,056) ( 19) ( 919,828) ( 16) ( 816,427) ( 18) Operating profit 215,016 10 180,243 11 590,157 10 496,080 11 Non-operating income and expenses Other income 6(17) 21,136 1 7,378 1 96,875 2 32,232 1 Other gains and losses 6(18) 55,848 3 2,028-49,798 - ( 492) - Finance costs ( 94) - ( 122) - ( 211) - ( 241) - Total non-operating income and expenses 76,890 4 9,284 1 146,462 2 31,499 1 Profit before income tax 291,906 14 189,527 12 736,619 12 527,579 12 Income tax expense 6(20) ( 40,131) ( 2) ( 31,873) ( 2) ( 100,990) ( 2) ( 84,823) ( 2) Profit for the period $ 251,775 12 $ 157,654 10 $ 635,629 10 $ 442,756 10 Other comprehensive income Components of other comprehensive income that will be reclassified to profit or loss Financial statements translation differences of foreign operations $ 14,346 1 $ 3,619 - $ 8,037 - $ 3,898 - Total comprehensive income for the period $ 266,121 13 $ 161,273 10 $ 643,666 10 $ 446,654 10 Profit attributable to: Owners of the parent $ 251,775 12 $ 157,654 10 $ 635,629 10 $ 442,756 10 Comprehensive income attributable to: Owners of the parent $ 266,121 13 $ 161,273 10 $ 643,666 10 $ 446,654 10 Earnings per share (in dollars) 6(21) Basic earnings per share $ 5.14 $ 3.25 $ 13.00 $ 9.16 Diluted earnings per share $ 5.12 $ 3.21 $ 12.87 $ 8.98 The accompanying notes are an integral part of these consolidated financial statements. See review report of independent accountants dated October 30, 2015. ~5~

SENAO NETWORKS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2015 AND 2014 (Expressed in thousands of New Taiwan dollars) (UNAUDITED) Notes Share capital - common stock Total capital surplus, additional paid-in capital Capital Reserves Equity attributable to owners of the parent Retained Earnings Employee stock warrants Legal reserve Special reserve Unappropriated retained earnings Financial statements translation differences of foreign operations Total equity 2014 Balance at January 1, 2014 $ 480,689 $ 686,466 $ 9,863 $ 94,620 $ 26,193 $ 586,797 ($ 21,628 ) $ 1,863,000 Exercise of employees' stock options 6(10) 5,450 3,717 - - - - - 9,167 Appropriations of 2013 earnings 6(15) Legal reserve - - - 42,191 - ( 42,191 ) - - Special reserve - - - - ( 4,565 ) 4,565 - - Cash dividends - - - - - ( 294,800 ) - ( 294,800 ) Profit for the period - - - - - 442,756-442,756 Other comprehensive income for the period - - - - - - 3,898 3,898 Balance at September 30, 2014 $ 486,139 $ 690,183 $ 9,863 $ 136,811 $ 21,628 $ 697,127 ($ 17,730 ) $ 2,024,021 2015 Balance at January 1, 2015 $ 486,929 $ 690,682 $ 9,863 $ 136,811 $ 21,628 $ 868,767 ($ 9,326 ) $ 2,205,354 Exercise of employees' stock options 6(10) 3,430 2,128 - - - - - 5,558 Appropriations of 2014 earnings 6(15) Legal reserve - - - 61,178 - ( 61,178 ) - - Special reserve - - - - ( 12,302 ) 12,302 - - Cash dividends - - - - - ( 464,853 ) - ( 464,853 ) Profit for the period - - - - - 635,629-635,629 Other comprehensive income for the period - - - - - - 8,037 8,037 Balance at September 30, 2015 $ 490,359 $ 692,810 $ 9,863 $ 197,989 $ 9,326 $ 990,667 ($ 1,289 ) $ 2,389,725 The accompanying notes are an integral part of these consolidated financial statements. See review report of independent accountants dated October 30, 2015. ~6~

SENAO NETWORKS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2015 AND 2014 (Expressed in thousands of New Taiwan dollars) (UNAUDITED) Notes 2015 2014 CASH FLOWS FROM OPERATING ACTIVITIES Consolidated profit before tax for the period $ 736,619 $ 527,579 Adjustments to reconcile net income to net cash provided by operating activities Income and expenses having no effect on cash flows Depreciation 6(4)(19) 70,363 46,618 Amortization 6(5)(19) 2,459 2,750 Reversal of allowance for bad debts 6(2) ( 4,185 ) ( 57 ) (Gain) loss on financial assets/liabilities measured at 6(7) fair value through profit or loss ( 2,028 ) 3,350 Interest income 6(17) ( 11,809 ) ( 11,073 ) Interest expense 211 241 Loss on disposal of property, plant and equipment 6(4)(18) 219 373 Changes in assets/liabilities relating to operating activities Net changes in assets relating to operating activities Financial assets at fair value through profit or loss - 15,000 Notes receivable, net ( 3 ) 630 Accounts receivable ( 149,388 ) ( 316,421 ) Other receivables ( 29,804 ) ( 30,843 ) Other receivables - related parties ( 262 ) ( 338 ) Inventory ( 49,263 ) ( 96,247 ) Prepayments 10,998 13,282 Net changes in liabilities relating to operating activities Notes payable ( 865 ) 790 Accounts payable 229,385 306,837 Other payables 62,973 ( 2,851 ) Provisions 19,814 26,199 Other current liabilities ( 56,552 ) 41,847 Other non-current liabilities 3,538 18,745 Cash generated from operations 832,420 546,411 Interest recieved 13,105 11,603 Interest paid ( 211 ) ( 241 ) Income tax paid ( 126,690 ) ( 79,632 ) Net cash provided by operating activities 718,624 478,141 (Continued) ~7~

SENAO NETWORKS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2015 AND 2014 (Expressed in thousands of New Taiwan dollars) (UNAUDITED) Notes 2015 2014 CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property, plant and equipment 6(4)(23) ($ 161,831 ) ($ 72,216 ) Proceeds from disposal of property, plant and equipment 6(4) 190 1,122 Increase in intangible assets 6(5) ( 7,219 ) ( 346 ) (Increase) decrease in refundable deposits ( 2,575 ) 501 Increase in other non-current assets ( 5,857 ) ( 30,092 ) Net cash used in investing activities ( 177,292 ) ( 101,031 ) CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term borrowings 6(6) 24,857 14,378 Exercise of employees stock options 6(10) 5,558 9,167 Payment of cash dividends ( 464,853 ) ( 294,800 ) Net cash used in financing activities ( 434,438 ) ( 271,255 ) Effect on foreign exchange difference 6,893 3,175 Increase in cash and cash equivalents 113,787 109,030 Cash and cash equivalents at beginning of period 2,535,595 2,180,742 Cash and cash equivalents at end of period $ 2,649,382 $ 2,289,772 The accompanying notes are an integral part of these consolidated financial statements. See review report of independent accountants dated October 30, 2015. ~8~

SENAO NETWORKS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2015 AND 2014 (Expressed in thousands of New Taiwan dollars, except as otherwise indicated) 1. HISTORY AND ORGANIZATION (UNAUDITED) Senao Networks, Inc. (the Company ) was established as a result of the spin-off of the wireless communication department of Senao International Co., Ltd. The Company assumed all the department s business, assets and liabilities effective October 1, 2006. The Company s registration was approved by the Ministry of Economic Affairs, R.O.C. on October 12, 2006. The Company started selling shares publicly at the Taiwan Over-The-Counter Exchange on December 30, 2013. The Company is mainly engaged in the sales of wireless communication products. 2. THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORIZATION The consolidated financial statements were authorised for issuance by the Board of Directors on October 30, 2015. 3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS (1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards ( IFRS ) as endorsed by the Financial Supervisory Commission ( FSC ) According to Financial-Supervisory-Securities-Auditing No. 1030010325 issued by FSC on April 3, 2014, commencing 2015, companies with shares listed on the TWSE or traded on the Taipei Exchange or Emerging Stock Market shall adopt the 2013 version of IFRS (not including IFRS 9, Financial instruments ) as endorsed by the FSC and the Regulations Governing the Preparation of Financial Reports by Securities Issuers effective January 1, 2015 (collectively referred herein as the 2013 version of IFRSs ) in preparing the consolidated financial statements. The impact of adopting the 2013 version of IFRS is listed below: A. IAS 19 (revised), Employee benefits Additional disclosures are required for defined benefit plans. B. IAS 1, Presentation of financial statements The amendment requires entities to separate items presented in OCI classified by nature into two groups on the basis of whether they are potentially reclassifiable to profit or loss subsequently when specific conditions are met. If the items are presented before tax then the tax related to each of the two groups of OCI items (those that might be reclassified and those that will not be reclassified) must be shown separately. Accordingly, the Group will adjust its presentation of the statement of comprehensive income. ~9~

C. IFRS 12, Disclosure of interests in other entities The standard integrates the disclosure requirements for subsidiaries, joint arrangements, associates and unconsolidated structured entities. Also, the Group will disclose additional information about its interests in consolidated entities and unconsolidated entities accordingly. (2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by the Group None. (3) IFRSs issued by IASB but not yet endorsed by the FSC New standards, interpretations and amendments issued by IASB but not yet included in the 2013 version of IFRS as endorsed by the FSC: Effective Date by International Accounting New Standards, Interpretations and Amendments Standards Board IFRS 9, Financial instruments' January 1, 2018 Sale or contribution of assets between an investor and its associate or January 1, 2016 joint venture (amendments to IFRS 10 and IAS 28) Investment entities: applying the consolidation exception (amendments January 1, 2016 to IFRS 10, IFRS 12 and IAS 28) Accounting for acquisition of interests in joint operations January 1, 2016 (amendments to IFRS 11) IFRS 14, 'Regulatory deferral accounts' January 1, 2016 IFRS 15, Revenue from contracts with customers' January 1, 2018 Disclosure initiative (amendments to IAS 1) January 1, 2016 Clarification of acceptable methods of depreciation and amortisation January 1, 2016 (amendments to IAS 16 and IAS 38) Agriculture: bearer plants (amendments to IAS 16 and IAS 41) January 1, 2016 Defined benefit plans: employee contributions (amendments to IAS 19R) July 1, 2014 Equity method in separate financial statements (amendments to IAS 27) January 1, 2016 Recoverable amount disclosures for non-financial assets January 1, 2014 (amendments to IAS 36) Novation of derivatives and continuation of hedge accounting January 1, 2014 (amendments to IAS 39) IFRIC 21, Levies January 1, 2014 Improvements to IFRSs 2010-2012 July 1, 2014 Improvements to IFRSs 2011-2013 July 1, 2014 Improvements to IFRSs 2012-2014 January 1, 2016 The Group is assessing the potential impact of the new standards, interpretations and amendments above and has not yet been able to reliably estimate their impact on the consolidated financial statements. ~10~

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies of the Group applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated. (1) Compliance statement The consolidated financial statements of the Group have been prepared in accordance with the Rules Governing the Preparation of Financial Statements by Securities Issuers and IAS 34, Interim Financial Reporting as endorsed by the FSC. (2) Basis of preparation A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention: (a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss. (b) Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation. B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the IFRSs ) requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5. (3) Basis of consolidation A. Principles for preparation of consolidated financial reports: (a) All subsidiaries are included in the Group s consolidated financial statements. Subsidiaries are all entities controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries. (b) Inter-company transactions, balances and unrealised gains or losses on transactions between companies within the Group are eliminated. ~11~

B. Subsidiaries included in the consolidated financial statements: Ownership (%) Name of investor Senao Networks, Inc. Name of subsidiary EnGenius Technologies, Inc. Main business activities Sales of communication products September 30, December 31, September 30, 2015 2014 2014 Description 100 100 100 Senao Networks, Inc. Senao International (Samoa) Ltd. Investment holdings 100 100 100 Senao Networks, Inc. EnGenius Networks Malaysia Sdn. Bhd Development of communictaion products 100 100 100 Note Senao International (Samoa) Ltd. EnGenius International (Samoa) Ltd. Investment holdings 100 100 100 EnGenius International (Samoa) Ltd. EnGenius Networks Singapore Pte. Ltd. Sales of communication products 100 100 100 EnGenius Networks Singapore Pte. Ltd. EnGenius Networks Europe B.V. Sales of communication products 100 100 100 EnGenius Technologies, Inc. EnGenius Technologies, Miami, Inc. Sales of communication products 100 100 100 EnGenius Technologies, Inc. SuperTel Technologies, Inc. Development of communication products 100 100 100 Note Note: On October 30, 2014 and April 28, 2015, the Board of Directors has resolved the liquidations of EnGenius Networks Malaysia Sdn. Bhd and SuperTel Technologies, Inc., and the liquidations have been approved by Taipei Exchange on December 2, 2014 and June 4, 2015, respectively. Except for EnGenius Technologies, Inc., the financial statements of certain consolidated subsidiaries for the nine months ended September 30, 2015 and 2014 were not reviewed by independent accountants. The total assets of these unreviewed subsidiaries as of September 30, 2015 and 2014 were $166,419 and $157,666, respectively, and the total liabilities were $78,975 and $69,981, respectively, and total comprehensive (loss) income for the three-month and nine-month periods then ended were ($6,710), ($4,808), ($7,626) and $975, respectively. ~12~

C. Subsidiaries not included in the consolidated financial statements: None. D. Adjustments for subsidiaries with different balance sheet dates: None. E. Significant restrictions: None. (4) Foreign currency translation Items included in the financial statements of each of the Group s entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency ). The consolidated financial statements are presented in New Taiwan Dollars. A. Foreign currency transactions and balances (a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise. (b) Monetary assets and liabilities denominated in foreign currencies at the period end are re-translated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss. (c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions. (d) All foreign exchange gains and losses are presented in the statement of comprehensive income within other gains and losses. B. Translation of foreign operations The operating results and financial position of all the group entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows: (a) Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet; (b) Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and (c) All resulting exchange differences are recognised in other comprehensive income. ~13~

(5) Classification of current and non-current items A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets: (a) Assets arising from operating activities that are expected to be realized or consumed, or are intended to be sold within the normal operating cycle; (b) Assets held mainly for trading purposes; (c) Assets that are expected to be realized within twelve months from the balance sheet date; (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to pay off liabilities more than twelve months after the balance sheet date. B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities: (a) Liabilities that are expected to be paid off within the normal operating cycle; (b) Liabilities arising mainly from trading activities; (c) Liabilities that are to be paid off within twelve months from the balance sheet date; (d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. (6) Cash equivalents Cash equivalents refer to short-term, highly liquid investments that are: A. Readily convertible to known amounts of cash; B. Subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents. (7) Financial assets at fair value through profit or loss A. Financial assets at fair value through profit or loss are financial assets held for trading. Financial assets are classified in this category of held for trading if acquired principally for the purpose of selling in the short-term. Derivatives are also categorized as financial assets (liabilities) held for trading. B. On a regular way purchase or sale basis, financial assets held for trading are recognised and derecognised using trade date accounting, and derivative instruments and financial assets (liabilities) recognised at fair value through profit or loss on initial recognition are recognised and derecognised using settlement date accounting. ~14~

C. Financial assets (liabilities) at fair value through profit or loss are initially recognised at fair value. Related transaction costs are expensed in profit or loss. These financial assets (liabilities) are subsequently remeasured and stated at fair value, and any changes in the fair value of these financial assets (liabilities) are recognised in profit or loss. (8) Accounts receivable Accounts receivable are loans and receivables originated by the entity. They are created by the entity by selling goods or providing services to customers in the ordinary course of business. Accounts receivable are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. However, short-term accounts receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial. (9) Impairment of financial assets A. The Group assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is impaired as a result of one or more events that occurred after the initial recognition of the asset (a loss event ) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. B. The criteria that the Group uses to determine whether there is objective evidence of an impairment loss is as follows: (a) Significant financial difficulty of the issuer or debtor; (b) A breach of contract, such as a default or delinquency in interest or principal payments; (c) The Group, for economic or legal reasons relating to the borrower s financial difficulty, granted the borrower a concession that a lender would not otherwise consider; (d) It becomes probable that the borrower will enter bankruptcy or other financial reorganisation; (e) The disappearance of an active market for that financial asset because of financial difficulties. C. When the Group assesses that there has been objective evidence of impairment and an impairment loss has occurred, accounting for impairment is made according to financial assets measured at amortised cost. The amount of the impairment loss is measured as the difference between the asset s carrying amount and the present value of estimated future cash flows discounted at the financial asset s original effective interest rate, and is recognised in profit or loss. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment loss was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent that the carrying amount of the asset does not exceed its amortised cost that would have been at the date of reversal had the impairment loss not been recognised previously. Impairment loss is ~15~

recognised and reversed by adjusting the carrying amount of the asset through the use of an impairment allowance account. (10) Derecognition of financial assets The Group derecognises a financial asset when the contractual rights to receive the cash flows from the financial asset expire. (11) Inventories Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The cost of finished goods and work in process comprises raw materials, direct labour, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses. (12) Property, plant and equipment A. Property, plant and equipment are initially recorded at cost. Subsequent costs are included in the asset s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred. B. Property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately. C. The assets residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end date. If expectations for the assets residual values and useful lives differ from previous estimates or the patterns of consumption of the assets future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors, from the date of the change. The estimated useful lives of property, plant and equipment are as follows: Machinery and equipment Molding equipment Transportation equipment Office equipment Other equipment Leasehold improvements 2 ~ 9 years 2 ~ 9 years 4 ~ 8 years 3 ~ 9 years 4 ~ 9 years 2 ~ 4 years ~16~

(13) Leased assets/leases (lessee) Payments made under an operating lease (net of any incentives received from the lessor) are recognised in profit or loss on a straight-line basis over the lease term. (14) Intangible assets A. Computer software Computer software is stated at cost and amortised on a straight-line basis over its estimated useful life of 2 to 3 years. B. Other intangible assets Intangible assets pertain to distribution rights and intellectual property, which are not amortized because of expected cash flows to be derived continually from the asset. This asset is subject to test of impairment on an annual basis. (15) Impairment of non-financial assets The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset s fair value less costs to sell or value in use. When the circumstances or reasons for recognising impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised. (16) Notes and accounts payable Notes and accounts payable are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. They are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. However, short-term accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial. (17) Derecognition of financial liabilities A financial liability is derecognised when the obligation under the liability specified in the contract is discharged or cancelled or expires. (18) Provisions Provisions (including warranties and sales discounts, etc.) are recognised when the Group has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date, which is discounted using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. ~17~

(19) Employee benefits A. Short-term employee benefits Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognised as expenses in that period when the employees render service. B. Pensions (a) Defined contribution plans For defined contribution plans, the contributions are recognised as pension expenses when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments. (b) Defined benefit plans i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The defined benefit net obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds at the balance sheet date. ii. Remeasurement arising on defined benefit plans are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings. iii. Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. Also, the related information is disclosed accordingly. C. Employees, directors and supervisors remuneration Employees, directors and supervisors remuneration are recognised as expenses and liabilities, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. However, if the accrued amounts for employees, directors and supervisors remuneration are different from the actual distributed amounts as resolved by the stockholders at the stockholders meeting subsequently (special resolution by the Board of Directors in 2015 in accordance with the amended Company Act), the differences should be recognised based on the accounting for changes in estimates. ~18~

(20) Employee share-based payment For the equity-settled share-based payment arrangements, the employee services received are measured at the fair value of the equity instruments granted at the grant date, and are recognised as compensation cost over the vesting period, with a corresponding adjustment to equity. The fair value of the equity instruments granted shall reflect the impact of market vesting conditions and non-market vesting conditions. Compensation cost is subject to adjustment based on the service conditions that are expected to be satisfied and the estimates of the number of equity instruments that are expected to vest under the non-market vesting conditions at each balance sheet date. Ultimately, the amount of compensation cost recognised is based on the number of equity instruments that eventually vest. (21) Income tax A. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity. B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional 10% tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings. C. Deferred tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled. D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred tax assets are reassessed. E. The interim period income tax expense is recognised based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly. ~19~

(22) Dividends Dividends are recorded in the Company s financial statements in the period in which they are approved by the Company s shareholders. Cash dividends are recorded as liabilities. (23) Revenue recognition A. Sales of goods (a) The Group manufactures and sells internet and wireless products. Revenue is measured at the fair value of the consideration received or receivable taking into account business tax, returns, rebates and discounts for the sale of goods to external customers in the ordinary course of the Group s activities. Revenue arising from the sales of goods should be recognised when the Group has delivered the goods to the customer, the amount of sales revenue can be measured reliably and it is probable that the future economic benefits associated with the transaction will flow to the entity. The delivery of goods is completed when the significant risks and rewards of ownership have been transferred to the customer, the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold, and the customer has accepted the goods based on the sales contract or there is objective evidence showing that all acceptance provisions have been satisfied. (b) The Group offers customers discounts and estimates such discounts based on historical experience. Provisions for such liabilities are recorded when the sales are recognised. B. Sales of services The Group provides repair and maintenance on communication services. Revenues are recognised once all the criteria below are met and costs are recognised when services are rendered. (a) revenue can be measured reliably; (b) it is probable that the future economic benefits associated with the transaction will flow to the company; and (c) costs incurred or expected to be incurred can be reliably measured. (24) Operating segments Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors that makes strategic decisions. ~20~

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group s accounting policies but no critical judgements were made. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year. The information is addressed below: Evaluation of inventories As inventories are stated at the lower of cost and net realisable value, the Group must determine the net realisable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Group evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realisable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes to the evaluation. As of September 30, 2015, the carrying amount of inventories was $591,616. 6. DETAILS OF SIGNIFICANT ACCOUNTS (1) Cash and cash equivalents September 30, 2015 December 31, 2014 September 30, 2014 Cash on hand and petty cash (revolving funds) $ 217 $ 297 $ 530 Checking accounts and demand deposits 849,540 173,993 108,484 Time deposits 1,799,625 2,361,305 2,180,758 $ 2,649,382 $ 2,535,595 $ 2,289,772 A. The Group associates with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote. B. The Group has no cash and cash equivalents pledged to others. ~21~

(2) Accounts receivable September 30, 2015 December 31, 2014 September 30, 2014 Accounts receivable $ 1,145,614 $ 996,226 $ 964,267 Less: Allowance for bad debts ( 1,145) ( 5,305) ( 5,414) $ 1,144,469 $ 990,921 $ 958,853 A. The ageing analysis of accounts receivable that were past due but not impaired is as follows: September 30, 2015 December 31, 2014 September 30, 2014 Up to 30 days $ 69,906 $ 49,495 $ 68,584 31 to 90 days 8,989 8,332 12,846 91 days to 180 days - 760 6,577 $ 78,895 $ 58,587 $ 88,007 B. Movements of the allowance for bad debts of financial assets that were past due analysed based on individual and group provisions are provided below: Individual provision Group provision Total At January 1 $ 4,637 $ 668 $ 5,305 (Reversal of) provision for impairment ( 4,637) 452 ( 4,185) Effect of exchange rate - 25 25 At September 30 $ - $ 1,145 $ 1,145 C. The credit quality of accounts receivable that were neither past due nor impaired was in the following categories based on the Group s Credit Quality Control Policy: Group 1:OEM customer Group 2:OBM customer D. The Group does not hold any collateral as security. 2015 2014 Individual provision Group provision Total At January 1 $ 4,637 $ 875 $ 5,512 Reversal of impairment - ( 57) ( 57) Effect of exchange rate - ( 41) ( 41) At September 30 $ 4,637 $ 777 $ 5,414 September 30, 2015 December 31, 2014 September 30, 2014 Group 1 $ 832,667 $ 776,400 $ 680,294 Group 2 234,052 156,602 191,329 $ 1,066,719 $ 933,002 $ 871,623 ~22~

(3) Inventories September 30, 2015 Allowance for Cost valuation loss Book value Raw materials $ 151,604 ($ 10,190) $ 141,414 Work in process 216,215-216,215 Finished goods 238,798 ( 4,811) 233,987 $ 606,617 ($ 15,001) $ 591,616 December 31, 2014 Allowance for Cost valuation loss Book value Raw materials $ 214,965 ($ 7,616) $ 207,349 Work in process 163,058-163,058 Finished goods 177,632 ( 5,686) 171,946 $ 555,655 ($ 13,302) $ 542,353 September 30, 2014 Allowance for Cost valuation loss Book value Raw materials $ 283,293 ($ 8,277) $ 275,016 Work in process 161,409-161,409 Finished goods 158,058 ( 7,662) 150,396 $ 602,760 ($ 15,939) $ 586,821 The cost of inventories recognised as expense for the three-month and nine-month periods ended September 30, 2015 and 2014 was $1,546,232, $1,138,860, $4,282,100 and $3,183,028, respectively. The cost for the three-month and nine-month periods ended September 30, 2015 and 2014 includes the amount of $878, $2,374, $3,957, and $8,095, respectively, that the Group wrote down from cost to net realizable value which was accounted for as cost of goods sold. ~23~

(4) Property, plant and equipment Molding Transportation Office Other Leasehold At January 1, 2015 Machinery equipment equipment equipment equipment improvements Total Cost $ 459,956 $ 64,255 $ 10,686 $ 42,212 $ 5,830 $ 34,138 $ 617,077 Accumulated depreciation and impairment ( 222,704) ( 41,919) ( 5,871) ( 33,965) ( 3,623) ( 22,947) ( 331,029) $ 237,252 $ 22,336 $ 4,815 $ 8,247 $ 2,207 $ 11,191 $ 286,048 2015 Opening net book amount $ 237,252 $ 22,336 $ 4,815 $ 8,247 $ 2,207 $ 11,191 $ 286,048 Additions 2,235-3,318 1,676-191 7,420 Disposals ( 16) - ( 383) ( 10) - - ( 409) Other fixed assets-transferred in 131,808 6,920-595 2,969 7,394 149,686 Depreciation charge ( 50,799) ( 7,624) ( 1,128) ( 2,648) ( 760) ( 7,404) ( 70,363) Net exchange differences ( 37) - 160 133-9 265 Closing net book amount $ 320,443 $ 21,632 $ 6,782 $ 7,993 $ 4,416 $ 11,381 $ 372,647 At September 30, 2015 Cost $ 593,775 $ 71,175 $ 13,116 $ 44,170 $ 8,799 $ 41,839 $ 772,874 Accumulated depreciation and impairment ( 273,332) ( 49,543) ( 6,334) ( 36,177) ( 4,383) ( 30,458) ( 400,227) $ 320,443 $ 21,632 $ 6,782 $ 7,993 $ 4,416 $ 11,381 $ 372,647 ~24~

Molding Transportation Office Other Leasehold At January 1, 2014 Machinery equipment equipment equipment equipment improvements Total Cost $ 344,480 $ 46,805 $ 10,303 $ 41,377 $ 5,770 $ 23,070 $ 471,805 Accumulated depreciation and impairment ( 175,402) ( 34,253) ( 5,400) ( 30,571) ( 3,764) ( 18,130) ( 267,520) $ 169,078 $ 12,552 $ 4,903 $ 10,806 $ 2,006 $ 4,940 $ 204,285 2014 Opening net book amount $ 169,078 $ 12,552 $ 4,903 $ 10,806 $ 2,006 $ 4,940 $ 204,285 Additions 8,414 734 160 1,071-460 10,839 Disposals ( 12) - ( 690) ( 518) - ( 275) ( 1,495) Other fixed assets-transferred in 65,691 8,223 1,740-461 1,610 77,725 Depreciation charge ( 33,557) ( 5,415) ( 1,034) ( 3,290) ( 440) ( 2,882) ( 46,618) Net exchange differences 10-18 61-12 101 Closing net book amount $ 209,624 $ 16,094 $ 5,097 $ 8,130 $ 2,027 $ 3,865 $ 244,837 At September 30, 2014 Cost $ 418,583 $ 55,762 $ 10,514 $ 40,843 $ 5,479 $ 25,618 $ 556,799 Accumulated depreciation and impairment ( 208,959) ( 39,668) ( 5,417) ( 32,713) ( 3,452) ( 21,753) ( 311,962) $ 209,624 $ 16,094 $ 5,097 $ 8,130 $ 2,027 $ 3,865 $ 244,837 ~25~

(5) Intangible assets A. Changes to intangible assets are as follows: Other Computer intangible assets software Total At January 1, 2015 Cost $ 24,054 $ 14,464 $ 38,518 Accumulated amortization and impairment ( 24,054) ( 12,616) ( 36,670) $ - $ 1,848 $ 1,848 2015 Opening net book amount $ - $ 1,848 $ 1,848 Additions - 7,219 7,219 Amortization charge - ( 2,459) ( 2,459) Net exchange differences - 7 7 Closing net book amount $ - $ 6,615 $ 6,615 At September 30, 2015 Cost $ - $ 21,756 $ 21,756 Accumulated amortization and impairment - ( 15,141) ( 15,141) $ - $ 6,615 $ 6,615 Other Computer intangible assets software Total At January 1, 2014 Cost $ 22,652 $ 13,721 $ 36,373 Accumulated amortization and impairment ( 15,201) ( 8,950) ( 24,151) $ 7,451 $ 4,771 $ 12,222 2014 Opening net book amount $ 7,451 $ 4,771 $ 12,222 Additions - 346 346 Disposals - ( 8) ( 8) Amortization charge - ( 2,750) ( 2,750) Net exchange differences 154 4 158 Closing net book amount $ 7,605 $ 2,363 $ 9,968 At September 30, 2014 Cost $ 23,119 $ 14,093 $ 37,212 Accumulated amortization and impairment ( 15,514) ( 11,730) ( 27,244) $ 7,605 $ 2,363 $ 9,968 ~26~

B. Details of amortization on intangible assets are as follows: 2015 2014 Manufacturing expenses $ 28 $ - Selling expenses 6 - General and administrative expenses 321 351 Research and development expenses 499 490 $ 854 $ 841 2015 2014 Manufacturing expenses $ 78 $ - Selling expenses 6 - General and administrative expenses 845 1,245 Research and development expenses 1,530 1,505 $ 2,459 $ 2,750 (6) Short-term borrowings (7) Financial liabilities at fair value through profit or loss Three-month periods ended September 30, Nine-month periods ended September 30, September 30, 2015 December 31, 2014 September 30, 2014 Unsecured bank borrowings $ 40,866 $ 16,009 $ 38,237 Interest rate range 1.30%~1.80% 1.35%~1.85% 1.35%~1.85% December 31, 2014 September 30, 2014 Items Financial liabilities: Financial liabilities held for trading Valuation adjustment $ 2,028 $ 7,603 A. The Group recognised net (loss) gain of ($3,988), ($11,141), $3,418 and ($14,980) on financial liabilities held for trading for the three-month and nine-month periods ended September 30, 2015 and 2014, respectively. B. The unsettled derivative financial liabilities transaction and contract information are as follows: December 31, 2014 September 30, 2014 Contract amount Contract amount Derivative financial (value of return) Contract (value of return) Contract liabilities (in thousands) period (in thousands) period Forward foreign exchange USD 6,000 2014.12.16 USD 17,000 2014.8.5 contracts-sell in advance ~2015.1.21 ~2014.11.21 ~27~