NPC — AGM Information 2020

Aug 19, 2020

Table of Contents

Meeting Procedure …….…………………………………… Page 1 Meeting Agenda ..………..………………..………………… Page 2 Report Items …..…………………………………………… Page 3 Ratification Items ……………………………………………. Page 12 Discussion Items .…………………………..…………… Page 14

NAN YA PLASTICS CORPORATION 2020 ANNUAL SHAREHOLDERS’ MEETING PROCEDURE

1. Call Meeting to Order

2. Chairman’s Address

3. Report Items

4. Ratification Items

5. Discussion Items

6. Extraordinary Motions

7. Meeting Adjourned

1

NAN YA PLASTICS CORPORATION 2020 ANNUAL SHAREHOLDERS’ MEETING AGENDA

Time: 10:00 a.m., Friday June 12, 2020

Venue: 2F, International Ballroom, Sunworld Dynasty Hotel

  - (No. 100 Dun Hua North Road, Taipei, Taiwan)

1. Report Items

2. (1) Business Report of 2019

3. (2) Audit Committee’ Review Report on the 2019 Financial Statements

4. (3) Distribution of 2019 Employees Compensation

5. (4) Issue of 2019 Domestic Unsecured Ordinary Corporate Bonds

6. Ratification Items

7. (1) Please approve the 2019 Business Report and Financial Statements as required by the Company Act.

8. (2) Please approve the Proposal for Distribution of 2019 Profits as required by the Company Act.

9. Discussion Items

10. Amendment to the Rules of Procedure for Shareholders’ Meetings of the company submitted for discussion.

2

Report Items

1. About the Company’s business operation condition of 2019, please refer to Business Report for further details (on page 5 of the Handbook.) which is hereby reported for record.

2. The Company’s Audit Committee members reviewed the 2019 Business Report and Financial Statements and issued their Review Report according to the applicable laws. Please refer to Audit Committee’s Review Report (on page 11 of the Handbook.)

3. The company has issued the report on compensation distributed to its employees for 2019.

4. The pre-tax profit prior to deducting employees’ compensation distributable for 2019 is NT$24,588,044,716. The company has no accumulated losses. Adopted by the Board Meeting on March 18, 2020, 0.1% of the profit is allocated as employees’ compensation in accordance with Article 25 of the Articles of Incorporation. The total allocated amount is NT$24,588,045 which shall be distributed in cash. The above is hereby reported for record.

5. Issue of NT$11.4 Billion Domestic Unsecured Ordinary Corporate Bonds in 2019

To raise long-term funds to build and expand current plant, to replace current plant and equipment, to pay off loans, to fund the working capital, and to invest in domestic or overseas business, the Board of Directors resolved on Mar. 20, 2019 to issue domestic unsecured ordinary corporate bonds of NT$12 Billion in 2019. To consider the market interest rate and the actual need, the Company only issued the bonds of NT$11.4 Billion, which was reported to the Board of Directors on Nov. 8, 2019. The rest of unissued bonds of NT$0.6 Billion was not applied for Taipei Exchange.

3

Corporate Bond Type	1stdomestic unsecured corporate bond for 2019	2stdomestic unsecured corporate bond for 2019
Total price	Tranche A: NT$ 1,700,000,000 Tranche B: NT$ 2,800,000,000 Tranche C: NT$1,800,000,000	Tranche A: NT$ 1,900,000,000 Tranche B: NT$ 2,500,000,000 Tranche C: NT$700,000,000
Issue date	2019.06.17	2019.10.15
Coupon rate	Tranche A: 0.74% p.a. Tranche B: 0.82% p.a. Tranche C: 0.91%p.a.	Tranche A: 0.71% p.a. Tranche B: 0.75% p.a. Tranche C: 0.84%p.a.
Tenor	Tranche A:05 years Tranche B:07 years Tranche C: 10years	Tranche A:05 years Tranche B:07 years Tranche C: 10years
Coupon Frequency	Annual. Interest shall be paid as simple interest rate.	Annual. Interest shall be paid as simple interest rate.
Repayment method	The Company will redeem 50% of the principal at one year before maturity and redeem the rest 50% at maturity for each tenor	The Company will redeem 50% of the principal at one year before maturity and redeem the rest 50% at maturity for each tenor

The above is hereby reported for record.

4

NAN YA PLASTICS CORPORATION

1.2019 Business Report

In 2019, Nan Ya Plastics Corp. (NPC) recorded a consolidated revenue of NT$ 286.30 billion, 14.0% lower than NT$ 333.06 billion in 2018; and a consolidated pre-tax income of NT$ 26.69 billion, a reduction of 56.6% compared to NT$ 61.53 billion in 2018.

In 2019, NPC faced fierce industry competition, with continued increase in competitors' capacity and market supply, and the trade war had also created negative impact in the world's economy. The market adopted a strong wait-and-see attitude, and the overall performance reflected a difficult operating environment.

The four major product categories of NPC operations are plastics, chemicals, polyesters, and electronic materials.

With regard to plastic products, NPC has accelerated the research and development of new applications, new materials, and products that meet environmental protection trend and have unique specification, and increased the proportion of production and sales of differentiated and high-value products. NPC continues to transform and deploys automated monitoring equipment to ensure quality stability of production process, and together with e-commerce and online marketing, it has expanded into high-end markets such as the U.S. and Japan as well as potential emerging markets. With market expansion, sales increase, capacity utilization increase, cost reduction, the advantages of distributing production domestically and overseas in Taiwan, China, the U.S. ,and Vietnam, and timely adjustment of plants' production and sales, NPC strives to provide customers with satisfied services. The efforts of NPC have enabled plastic processing products to provide stable profitability.

In terms of petrochemical products, in line with vertical integration and division of labor in Sixth Naphtha Cracking Plant in Mailiao, NPC's products, including ethylene glycol (EG), Bisphenol-A (BPA), 1,4-butylene glycol (1,4BG), plasticizers, phthalic anhydride (PA),

5

2-ethylhexanol (2EH), and epoxy resin (EPOXY), have been vertically integrated with upstream and downstream industries, thereby forming a complete supply chain, which supports the development of downstream industries such as polyester, electronics, and plastic processing, respectively.

With a slow global economic growth and negative impact of the trade war, the market demand decreased in 2019. With the increasing petrochemical capacity by China, price generally declined, with the prices of main products, BPA and EG, dropped by 30% compared to 2018, resulting in significant decrease in profit. In the future, NPC will respond to the change in raw materials and product prices, flexibly adjust its capacity, continue to drive process optimization, and improve its sales in areas outside China, so as to increase revenue and profit.

In terms of polyester products, China-U.S. trade war and increase in crude oil price have made market competition more intense in 2019. The continued fall in price, and serious price-slashing situation by competitors resulted in sales not meeting expectation and a drop in profit.

NPC will continue to actively research and develop, monitor and control product quality stability, promote environmental protection, PET bottles recycling, biodegradability and green energy, and explore new application areas for products, so as to differentiate the market and expand scope of sales. NPC will enhance customer recognition so as to continue to increase sales and maintain stable profitability.

For electronic materials, with the ongoing development of various electronic product application devices since the fourth quarter of 2016, the active promotion of new energy vehicle in the world and construction of related infrastructure such as charging pile, the demand of electronic materials significantly increases, attracting companies to expand their investments, and resulting in increase in capacity. In addition, with China and the U.S. imposing higher tariffs on each other, decrease in home appliance orders, and increase in uncertainties of electronic product market, customers reduce their inventory and respond to urgent orders, and are more conservative in their placing of orders. However, due to the advance

6

deployment of 5G communications infrastructure, mid and high-end materials demand increased, and 2019 overall revenue is only slightly lower than 2018.

The 5G infrastructure and the Internet will continue to develop in the future. With the related applications, it will drive the demand of electronic materials and upstream raw materials. NPC will actively promote differentiated products, increase sales proportion of mid and high-end materials for high-value-added and high-functionality niche products, to cater to the trend of market development. Also, it will make use of the advantages of complete upstream and downstream vertical integration, to flexibly adjust the capacities in Taiwan and China, driving the increase in revenue and profit.

Nan Ya Printed Circuit Board Corp., which is invested by NPC, has long been focusing on the development and production of circuit boards and IC package substrates. Optimistic with the demand of 5G infrastructure, it has taken advanced move in the development of related products. The sales of high layer and large dimension substrate for the related applications were strong in 2019. In addition, the demand for high-valued products such as System-in-Package for wearable device applications, and interposer for high-end mobile device was promising during the second half of the year, driving increase in profit, and hence successfully turned loss into profit. In response to future development trend of semi-conductor, it actively strengthens its research and development capabilities, recruits more research and development talents, speeds up the development of new products, and expands IC substrate capacity to meet market demand. In the future, the company will work closely with customers, get more niche products orders, and continue to enhance production technologies, improve yield and reduce cost, to improve operational performance.

Nan Ya Technology Corp., another company invested by NPC, is committed to the development, manufacture, and sale of dynamic random-access memory (DRAM) products. Though DRAM industry significantly slowed down in 2019, the company still maintained good

7

profitability, and completed the product development and shipping of low-power 20 nm 4Gb/8Gb LPDDR3, 2Gb/4Gb/8Gb LPDDR4/4X, etc. It has also successfully developed 10 nm DRAM cell design, enabling future DRAM products to continue to shrink in size for at least 3 generations. In 2020, it will develop first generation 10 nm lead products, DDR4 and DDR5 on its own technology platform, and is expected to gradually go into trial production after the second half of the year, in preparation for mass production of 2021. In 2020, it will continue to focus on 20 nm product portfolio optimization to increase competitiveness, and increase process technologies, product design, and customer services capabilities, to meet market demand, and provide customers with best memory solutions.

2.2019 Operating Status

The consolidated operating revenue was NT$286.30 billion in 2019, a decrease of NT$46.76 billion, 14.0% over NT$333.06 billion in 2018. Deducted operating costs NT$258.17 billion and selling expenses and administrative expenses NT$18.25 billion the operating income was NT$9.88 billion in 2019 which declined 66.4% compared with NT$29.42 billion in 2018. Added up non-operating income and expenses NT$ 16.80 billion the pre-tax income of 2019 was NT$26.68 billion and the pre-tax income margin was 9.3% a decrease of 56.6% over NT$61.53 billion in 2018.

3.2020 Business Outlook

Looking ahead to 2020, the environment is still disturbing. The world's economy has been affected by many factors, including trade war, technological war, currency war, and threat of armed conflict of geopolitics in the long run. Also, the virus outbreak that affects human health in the beginning of the year deepens the unrest in the market, suppressing the opportunities for economic recovery through new technologies development and application in the short run. If the various

8

uncertain factors can be reduced in the future, the economy should be able to develop normally.

With the complex international situation, maintaining stable growth and profit is still the most important goal. Therefore, NPC will continue to actively push forward its four business focus:

(1) Market expansion: Based on the physical sales channels with the assistance of online marketing, NPC actively expands and separates the market. With the configuration of domestic and overseas production bases, diversion in sales channels, production capacity allocation, and market expansion, NPC carries out overall production and sales allocation, increases revenue, boosts capacity utilization rate, and reduces cost.

(2) Research and development: Besides developing new products with different characteristics to satisfy customer needs and market trend, NPC makes good use of the features of existing products to explore new application. It expands customer base and explore new markets to increase the proportion of differentiated and high-value products in the hope of increasing profitability continuously.

(3) Circular economy: Implement reduction, reuse, and resource recycling, reduce raw materials and energy consumption from the source, and carry out resource integration across plants and companies, recycle energy, and finally recycle the waste generated, achieving recycling and reuse, and attaining the economic benefits of low consumption, low emission, and high utilization.

(4) Process optimization: NPC will continue to improve and upgrade its equipment, increase the efficiency of existing equipment/production lines, create maximum benefit with minimum investment, and actively implement AI to attain intellectualization in production process.

In the future, we will continue to make AI our priority, and make use of image recognition technologies to carry out product quality inspection and control, and conduct systematic gathering, processing, and application on the massive data, so as to optimize the control of process conditions, increase quality and reduce raw materials and energy consumption. We

9

will also expand it horizontally to domestic and overseas plants to create greater benefits.

In addition, besides participating in the joint venture expansion in US Texas OL-3 and Louisiana at present, our total ongoing investments amount to approximately NT$ 68 billion, including 14% in Taiwan, mainly in high-value copper foil, polyester film, PP synthetic paper, etc., and 86% in other countries, mainly in expansions of EG plant in the U.S., which is about to be completed, as well as copper foil substrate, fiberglass cloth, printed circuit board, aluminum plastic film, and BPA plants in China. When they go into production, it is expected to generate an annual output of NT$ 52.4 billion, which will drive the continued growth of NPC.

Chairman: Chia Chau, Wu President: Ming Jen, Tzou In-charge Accountant: Li Ta, Pai

10

NAN YA PLASTICS CORPORATION Audit Committee’ Review Report

The Board of Directors has prepared the Company’s 2019 Business Report, Financial Statements, including Consolidated and Individual Financial Statements, and Proposal for Profits Distribution. The CPA firm of KPMG was retained to audit Nan Ya Plastics Corporation’s Financial Statements and has issued an audit report relating to Financial Statements. The Business Report, Financial Statements, and Proposal for Profits Distribution have been reviewed and determined to be correct and accurate

by the Audit Committee members of Nan Ya Plastics Corporation. According to the Securities and Exchange Act and the Company Act, we hereby submit this report. Please be advised accordingly.

Nan Ya Plastics Corporation Chairman of the Audit Committee: Chih-Kang, Wang

March 18, 2020

11

Ratification Items Proposal 1

Proposal: For approval of the 2019 Business Report and Financial Statements as required by the Company Act.

Proposed by the Board of Directors

Explanation:

1. The preparation of the Company’s 2019 Consolidated and Individual Financial Statements were completed and the same were approved by the Board Meeting on March 18, 2020, and audited by independent auditors, Ms. Hsin-Yi, Kuo and Mr. Chi-Lung, Yu, of KPMG. The aforesaid Financial Statements together with the Business Report were reviewed by the Audit Committee, which the Audit Committee’ Review Report is presented.

2. For the aforementioned Business Report, please refer to page 5 through page 10 of the Meeting Handbook. As for the Financial Statements, please refer to page 21 through page 28 of the Handbook. Please approve the Business Report and the Financial Statements.

Resolution:

12

Ratification Items Proposal 2

Proposal: For Approval of the Proposal for Distribution of 2019 Profits as required by the Company Act.

Proposed by the Board of Directors

Attachment:

Please refer to page 29 of the Handbook for the Statement of Profits Distribution, which has been reviewed by the Audit Committee members on of Nan Ya Plastics Corporation and approved by the Board of Directors March 18, 2020.

Resolution:

13

Discussion Items Proposal 1

Proposal: Amendment to the Rules of Procedure for Shareholders’ Meetings of the company submitted for discussion

Proposed by the Board of Directors

Explanation:

To refer to the sample template announced in the order Tai-Cheng-Chih-Li-Zi No. 1080024221 dated January 2, 2020 by the Taiwan Stock Exchange Corporation, certain articles of the Rules of Procedure for Shareholders’ Meetings provided by the company have been amended. The comparison table for articles before and after amendment is hereby attached. Please determine whether the amendments are reasonable.

Article	Article before Amendment	Article after Amendment	Reason for Amendment
Article 3	(above 4 paragraph omitted) Election or dismissal of directors, amendments to the Articles of Incorporation, the dissolution, merger, or demerger of the corporation, or any matter under paragraph 1 of Article 185 of the Company Actor Articles 26-1 and 43-6 of the Securities and Exchange Act, Articles 56-1 and 60-2 of Regulations Governing the Offering and Issuance of Securities by Securities	(above 4 paragraph omitted) Election or dismissal of directors, amendments to the Articles of Incorporation, capital reduction, application to be delisted from public offering, lifting of non-competition restriction of directors, capital increase by retained earnings, capital increase by capital reserve, dissolution, merger, or demerger of the corporation, or any matter under Paragraph 1	Amended in line with Directive Letter No. 1080024221 announced by the Taiwan Stock Exchange Corporation (TWSE) on January 2, 2020.

14

	Issuersshall be set out in the notice of thecauses to convenethe shareholders’ meeting. None of the above matters may be raised by an extraordinary motion.	of Article 185 of the Company Act shall be set out in the notice of the reasons for convening the shareholders' meeting. None of the above matters may be raised by an extraordinary motion. The content of such matters shall be uploaded to a website designated by the competent authority or the Company, and the website shall be specified on the meeting
		notice. Where the meeting agenda has specified general re-elections of the directors and the terms of the directors' office, the terms of office of the directors shall not be altered by raising an extraordinary motion or any other method upon the completion of the general elections at the shareholders' meeting.

15

	A shareholder holding 1 percent or more of the total number of issued shares may submit to the Company awritten proposal for discussion at an annual shareholders’ meeting. Such proposals, however, are limited to one item only, and no proposal containing more than one item will be included in the Meeting Agenda. In addition, when the circumstances of any subparagraph of paragraph 4 of Article 172-1 of the Company Act apply to a proposal put forward bya	A shareholder holding 1 percent or more of the total number of issued shares may submit to the Company a proposal for discussion at an annual shareholders' meeting. Such proposals, however, are limited to one item only, and no proposal containing more than one item will be included in the Meeting Agenda. However, when a shareholder's proposal contains suggestions or recommendations for the Company to enhance the public interest or facilitate the Company to fulfill its corporate social responsibility, the Board of Directors may
		include such proposal into the agenda. In addition, when the circumstances of any subparagraph of paragraph 4 of Article 172-1 of the Company Act apply to a proposal put forward bya

16

	shareholder, the Board of Directors may exclude it from the Agenda. Prior to the book closure date before an annual shareholders’ meeting is held, the Company shall publicly announce that it will receive shareholder proposals, and the location and time period for their submission; the period for submission of shareholder proposals may not be less than 10 days. (below omitted)	shareholder, the Board of Directors may exclude it from the Agenda. Prior to the book closure date before an annual shareholders' meeting is held, the Company shall publicly announce that it will receive shareholder proposals,the method of receiving such proposals (whether written or in electronic form), and the location and time period for their submission; the period for submission of shareholder proposals may not be less than 10 days. (below omitted)
Article 10	If a shareholders’ meeting is convened by the Board of Directors, the meeting agenda shall be set by the Board of Directors. The meeting shall proceed in the order set by the agenda, which may not be changed without a resolution of the shareholders’	If a shareholders' meeting is convened by the Board of Director, the meeting agenda shall be set by the Board of Directors. The relevant proposals (including extraordinary motions and amendment to original proposals) shall	Amended in line with Directive Letter No. 1080024221 announced by the Taiwan Stock Exchange Corporation (TWSE)on
		be decided by voting on a case-by-case basis.

17

	meeting. (paragraph 2~3 omitted) The Chair shall allow ample opportunity during the meeting for explanation and discussion of proposals and of amendments or extraordinary motions put forward by the shareholders; when the Chair is of the opinion that a proposal has been discussed sufficiently to put it to a vote, the Chair may announce the discussion closed and callfor a vote.	The meeting shall proceed in the order set by the agenda, which may not be changed without a resolution of the shareholders’ meeting. (paragraph 2~3 omitted) The Chair shall allow ample opportunity during the meeting for explanation and discussion of proposals and of amendments or extraordinary motions put forward by the shareholders; when the Chair is of the opinion that a proposal has been discussed sufficiently to put it to a vote, the Chair may announce the discussion closed and shall also arrange ample time for a vote.	January 2, 2020.
Article 13	(paragraph 1 omitted) When the Company holds a shareholders’ meeting,it may allow the shareholderstoexercise voting rightsin writing orby way of electronic transmission.	(paragraph 1 omitted) When the Company holds a shareholders' meeting, shareholders shallexercisetheir voting rights by way of electronic transmission and may exercise their	Amended in line with Directive Letter No. 1080024221 announced by the Taiwan

18

	When voting rights are exercised in writing or by way of electronic transmission, the method for exercising the voting rights shall be specified in the shareholders’ meeting notice. A shareholder exercising voting rights in writing or by way of electronic transmission will be deemed to have attended the meeting in person, but to have waived his/her rights with respect to the extraordinary motions and amendments to original proposals of that meeting. (below omitted)	voting rights in writing. When voting rights are exercised in writing or by way of electronic transmission, the method for exercising the voting rights shall be specified in the shareholders’ meeting notice. A shareholder exercising voting rights in writing or by way of electronic transmission will be deemed to have attended the meeting in person, but to have waived his/her rights with respect to the extraordinary motions and amendments to original proposals of that meeting. (paragraph 3~6 omitted) In addition to the proposals on the meeting agenda, when a	Stock Exchange Corporation (TWSE) on January 2, 2020. Qualification for proposing an extraordinary motion has been specified pursuant to the Company's actual processing needs.
		shareholder wishes to propose an extraordinary motion, the shareholder's voting
		rights shall represent at
		least 1% or more of the Company's total issued

19

		shares. (below omitted)
Article 15	(paragraph 1~2 omitted) The meeting minutes shall accurately record the year, month, day, and place of the meeting, the Chair's full name, the methods by which resolutions were adopted, and a summary of the deliberations and their results, and shall be retained for the duration of the existence of the Company.	(paragraph 1~2 omitted) The meeting minutes shall accurately record the year, month, day, and place of the meeting, the Chair's full name, the methods by which resolutions were adopted, and a summary of the deliberations and their results(including the weight of the votes), and the number of weighted votes each candidate received in case of a Directors' elections,and shall be retained for the duration of the existence of the Company.	Amended in line with Directive Letter No. 1080024221 announced by the Taiwan Stock Exchange Corporation (TWSE) on January 2, 2020.

Resolution:

20

					December 31, 2018	Amount %		21,253,381 4	8,897,747 1	9,496,716 2	8,720,846 1	20,233,152 4	- -	5,946,931 1	6,133,333 1	1,109,441 -	81,791,547 14			52,584,524 9	52,584,524 9	6,137,472 1	12,639,024 3	- -	7,096,550 1	22,287,385 4	679,464 -	128,386 -	101,552,805 18	183,344,352 32			79,308,216 14		26,672,119 5	220,788,020 39		48,903,842 8	11,232,795 2		386,904,992 68		570,249,344 100
					December 31, 2019	Amount %		24,012,100 4	15,392,795 3	9,102,231 2	6,986,969 1	18,539,776 3	197,527 -	4,647,875 1	3,333,333 1	1,303,544 -	83,516,150 15			59,330,786 11		14,751,117 3	13,122,029 2	291,222 -	5,096,417 1	22,183,650 4	712,939 -	103,669 -	115,591,829 21	199,107,979 36			79,308,216 14		26,617,834 5	204,105,146 37		34,540,688 6	10,998,816 2		355,570,700 64		554,678,679 100
								$																																			$
(English Translation of Consolidated Financial Statements Originally Issued in Chinese)	NAN YA PLASTICS CORPORATION AND SUBSIDIARIES	Consolidated Balance Sheets	December 31, 2019 and 2018	(Expressed in Thousands of New Taiwan Dollars)	December 31, 2019 December 31, 2018	Amount % Amount % Liabilities and Equity	Current liabilities:	43,608,119 8 52,365,882 9 2100 Short-term borrowings (notes 6(l), (x), and (aa))	4,044,356 1 4,017,249 1 2110 Short-term notes and bills payable (notes 6(k), (x) and (aa))	41,715,821 8 44,528,667 8 2170 Notes and accounts payable (note 6(x))	2180 Accounts payable to related parties (notes 6(x) and 7)	5,557,174 1 6,524,088 1 2200 Other payables (note 7)	36,640,358 7 39,237,627 7 2280 Current lease liabilities (notes 6(o),(x) , (aa), and 7)	1,866,001 - 2,484,349 - 2321 Current portion of bonds payable (notes 6(n), (x) and (aa))	2,237,168 - 1,869,037 - 2322 Current portion of long-term borrowings (note 6(m), (x) and (aa))	5,925,227 1 6,117,870 1 2399 Other current liabilities	41,567,752 7 49,040,842 9 Total current liabilities	4,314,370 1 4,088,930 1 Non-Current liabilities:		187,476,346 34 210,274,541 37 2530 Bonds payable (notes 6(n), (x) and (aa))		2540 Long-term borrowings (notes 6(m), (x) and (aa))	824,726 - 1,047,877 - 2570 Deferred tax liabilities (note 6(q))	22,662,110 4 28,011,349 5 2580 Non-current lease liabilities (notes 6(o), (x) , (aa) and 7)	165,109,381 30 169,871,136 30 2611 Long-term notes payable (notes 6(m), (x) and (aa))	156,095,364 28 140,907,261 25 2640 Net defined benefit liability-non-current (note 6(p))	1,198,549 - - - 2645 Guarantee deposits	2,293,595 - 2,486,740 - 2670 Other non-current liabilities	30,257 - 37,385 - Total non-current liabilities	5,439,156 1 5,519,863 1 Total liabilities		3,468,440 1 2,710,252 - Equity attributable to owners of parent (notes 6(r)):	3110 Common Stock	- - - -	1,865 - 1,040 - 3200 Capital surplus	10,078,890 2 9,381,900 2 3300 Retained earnings		367,202,333 66 359,974,803 63 3400 Others	36XX Non-controlling interests		Total equity		554,678,679 100 570,249,344 100 Total liabilities and equity
								$																																			$
						Assets	Current assets:	Cash and cash equivalents (notes 6(a) and (x))	Current financial assets at fair value through profit or loss (notes 6(b), (x))	Current financial assets at fair value through other comprehensive income (notes	6(c), (x), and 8)	Notes receivable, net (notes 6(d) and (x))	Accounts receivable, net (notes 6(d) and (x))	Accounts receivable due from related parties (notes 6(d), (x) and 7)	Other receivables (note 6(e))	Other receivables due from related parties (notes 6(e), (x), and 7)	Inventories (note 6(f))	Other current assets		Total current assets		Non-current assets:	Non-current financial assets at fair value through profit or loss (notes 6(b) and (x))	Non-current financial assets at fair value through other comprehensive income (notes 6(c) and (x))	Investments accounted for using equity method (notes 6(g) and 8)	Property, plant and equipment (notes 6(h) and 8)	Right-of-use assets (notes 6(i) and 7)	Intangible assets (note 6(j))	Technology development expense	Deferred tax assets (note 6(q))		Prepayments for purchase of equipment	Overdue receivables (note 6(d))		Net defined benefit asset-non-current (note 6(p))	Other non-current assets		Total non-current assets					Total assets
								1100	1110	1120		1150	1170	1180	1200	1210	130X	1470					1510	1517	1550	1600	1755	1782	1812	1840		1915	1937		1975	1990

21

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2019 and 2018

(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

4000 Operating revenue (notes 6(u) and 7) 5000 Operating costs (notes 6(f), (p), (v), 7 and 12) 5910 Less: Unrealized (realized) profit from affiliated companies (note 7) Gross profit from operation Operating expenses (notes 6(j), (p), (v), 7 and 12): 6100 Selling expenses 6200 Administrative expenses Total operating expenses Net Operating income Non-operating income and expenses (notes 6(g), (o), (w) and 7): 7010 Other income 7020 Other gains and losses 7050 Finance costs 7060 Share of profit of associates and joint ventures accounted for using equity method Total non-operating income and expenses Profit before tax 7950 Less: Income tax expenses (note 6(q)) Profit 8300 Other comprehensive income (loss) (note 6(g) and (r)): 8310 Components of other comprehensive income that will not be reclassified to profit or loss 8311 Gains (losses) on remeasurements of defined benefit plans 8316 Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income 8320 Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss 8349 Less: income tax related to components of other comprehensive income that will not be reclassified to profit or loss Total items that may not be reclassified subsequently to profit and loss 8360 Components of other comprehensive income (loss) that will be reclassified to profit or loss 8361 Exchange differences on translation 8370 Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss 8399 Less: income tax related to components of other comprehensive income that will be reclassified to profit or loss Total items that may be reclassified subsequently to profit and loss 8300 Other comprehensive income 8500 Total comprehensive income Profit, attributable to: 8610 Owners of parent 8620 Non-controlling interests Comprehensive income attributable to: 8710 Owners of parent 8720 Non-controlling interests Basic earnings per share (note 6(t)): 9710 Income from continuing operations Income from non-controlling equity 9750 Income attributable to shareholders of the parent	2019 Amount % $ 286,303,059 100 258,172,796 90 (6,964) - 28,137,227 10 9,661,546 3 8,590,296 3 18,251,842 6 9,885,385 4 6,371,567 2 213,753 - (1,620,428) (1) 11,838,753 4 16,803,645 5 26,689,030 9 3,479,507 1 23,209,523 8 (52,911) - (7,787,479) (3) (808,135) - (10,556) - (8,637,969) (3) (5,962,293) (2) 15,812 - - - (5,946,481) (2) (14,584,450) (5) $ 8,625,073 3 $ 23,076,123 8 133,400 - $ 23,209,523 8 $ 8,608,080 3 16,993 - $ 8,625,073 3 Before Tax After Tax $ 3.37 2.93 (0.27) (0.02) $ 3.10 2.91	2018 Amount % 333,061,560 100 284,054,265 85 (56,290) - 49,063,585 15 10,261,727 3 9,381,085 3 19,642,812 6 29,420,773 9 6,635,682 2 1,012,460 - (1,723,469) - 26,179,740 8 32,104,413 10 61,525,186 19 8,866,335 3 52,658,851 16 (768,275) - (3,311,346) (1) (3,383,834) (1) (324,897) - (7,138,558) (2) 441,013 - (22,910) - 135,016 - 283,087 - (6,855,471) (2) 45,803,380 14 52,746,021 16 (87,170) - 52,658,851 16 45,930,928 14 (127,548) - 45,803,380 14 Before Tax After Tax 7.76 6.64 (0.47) 0.01 7.29 6.65

See accompanying notes to Consolidated financial statements.

22

															Total equity	367,219,759	14,054,162		381,273,921			-	-	(40,447,190)	-		513,647	52,658,851	(6,855,471)	(6,855,471)	45,803,380		(238,384)		(382)	(382)	386,904,992		-	-	(39,654,108)	-		(54,285)	23,209,523	(14,584,450)	(14,584,450)	8,625,073		(250,972)	(250,972)	355,570,700
													Non-	controlling	interests	11,599,899	(1,172)		11,598,727			-	-	-	-		-	(87,170)	(40,378)		(127,548)		(238,384)		-		11,232,795		-	-	-	-		-	133,400	(116,407)		16,993		(250,972)		10,998,816
												Total equity	attributable to	owners of	parent	355,619,860	14,055,334		369,675,194			-	-	(40,447,190)	-		513,647	52,746,021	(6,815,093)		45,930,928		-		(382)		375,672,197		-	-	(39,654,108)	-		(54,285)	23,076,123	(14,468,043)		8,608,080		-		344,571,884
													Gains (losses)	on hedging	instruments	-	7,729		7,729			-	-	-	-		-	-	(22,910)		(22,910)		-		-		(15,181)		-	-	-	-		-	-	15,812		15,812		-		631
(English Translation of Consolidated Financial Statements Originally Issued in Chinese)	NAN YA PLASTICS CORPORATION AND SUBSIDIARIES	Consolidated Statements of Changes in Equity	For the years ended December 31, 2019 and 2018	(Expressed in Thousands of New Taiwan Dollars)	Equity attributable to owners of parent	Items of other equity interest	Retained earnings Unrealized	gains	(losses) from	Exchange financial assets Unrealized	differences on measured at gains (losses) Gains (losses)	translation of fair value on available- on effective	Unappropriated foreign through other for-sale portion of	Capital Legal Special retained financial comprehensive financial cash flow	surplus reserve reserve earnings statements income assets hedges	26,158,472 57,873,852 86,932,416 63,674,176 (6,026,197) - 47,691,196 7,729	- - - 507,292 - 61,239,238 (47,691,196) (7,729)		26,158,472 57,873,852 86,932,416 64,181,468 (6,026,197) 61,239,238 - -			- 5,452,101 - (5,452,101) - - - -	- - 6,819,825 (6,819,825) - - - -	- - - (40,447,190) - - - -	- - (15,150) 15,150 - - - -		513,647 - - - - - - -	- - - 52,746,021 - - - -	- - - (498,165) 320,901 (6,614,919) - -		- - - 52,247,856 320,901 (6,614,919) - -		- - - - - - - -		- - - (382) - - - -		26,672,119 63,325,953 93,737,091 63,724,976 (5,705,296) 54,624,319 - -		- 5,274,602 - (5,274,602) - - - -	- - 6,106,008 (6,106,008) - - - -	- - - (39,654,108) - - - -	- - (1,433) 1,433 - - - -		(54,285) - - - - - - -	- - - 23,076,123 - - - -	- - - (104,889) (5,866,135) (8,512,831) - -		- - - 22,971,234 (5,866,135) (8,512,831) - -		- - - - - - - -		26,617,834 68,600,555 99,841,666 35,662,925 (11,571,431) 46,111,488 - -
														Ordinary	shares	79,308,216	-		79,308,216			-	-	-	-		-	-	-		-		-		-		79,308,216		-	-	-	-		-	-	-		-		-		79,308,216
																$																																				$
																Balance at January 1, 2018	Effects of retrospective application		Balance at January 1, 2018 after adjustment		Appropriation and distribution of retained earnings:	Legal reserve appropriated	Special reserve appropriated	Cash dividends of ordinary share	Reversal of special reserve	Other changes in capital surplus:	Other changes in capital surplus	Profit	Other comprehensive income		Total comprehensive income		Changes in non-controlling interests	Disposal of investments in equity instruments designated at	fair value through other comprehensive income		Balance at December 31, 2018	Appropriation and distribution of retained earnings:	Legal reserve appropriated	Special reserve appropriated	Cash dividends of ordinary share	Reversal of special reserve	Other changes in capital surplus:	Other changes in capital surplus	Profit	Other comprehensive income		Total comprehensive income		Changes in non-controlling interests		Balance at December 31, 2019

23

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the years ended December 31, 2019 and 2018

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from (used in) operating activities: Profit before tax Adjustments: Adjustments to reconcile profit (loss): Depreciation expense Amortization expense Net gain on diposal of financial assets Net loss (profit) on financial assets at fair value through profit or loss Interest expense Interest income Dividend income Share of profit of associates and joint ventures accounted for using equity method (Profit) loss on disposal of property, plant and equipment Property, plant and equipment transferred to expenses Realized profit from affiliated companies Unrealized foreign exchange profit or loss Other revenue, overdue dividends and compensation of board and directors Gain on reversal of impairment loss of property, plant and equipment Total adjustments to reconcile profit (loss) Changes in operating assets and liabilities: Decrease (increase) in notes receivable Decrease in accounts receivable (including related parties) (Increase) decrease in other receivable Decrease (increase) in inventories (Increase) decrease in other current assets Total changes in operating assets Decrease in notes and accounts payable (Decrease) increase in other payable Increase (decrease) in other current liabilities Decrease in net defined benefit liability Total changes in operating liabilities Total changes in operating assets and liabilities Total adjustments Cash inflow generated from operations Interest received Dividends received Interest paid Income taxes paid Net cash flows from operating activities Cash flows from (used in) investing activities: Acquisition of financial assets at fair value through other comprehensive income Proceeds from capital reduction of financial assets at fair value through other comprehensive income Proceeds from disposal of financial assets at amortised cost Proceeds from disposal of financial assets at fair value through profit or loss Acquisition of investments accounted for using equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease (increase) in refundable deposits Decrease in other receivables due from related parties Increase in other non-current assets Net cash flows used in investing activities Cash flows from (used in) financing activities: Increase in short-term loans Increase in short-term notes and bills payable Proceeds from issuing bonds Repayments of bonds Proceeds from long-term debt Repayments of long-term debt (Decrease) increase in other borrowings (long-term notes payables) Increase (decrease) in guarantee deposits received Payment of lease liabilities Decrease in other non-current liabilities Cash dividends paid Change in non-controlling interests Net cash flows from financing activities Effect of exchange rate changes on cash and cash equivalents Net increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period

See accompanying notes to Consolidated financial statements.

24

					December 31, 2018	Amount %			20,880,900 4	8,897,747 2	4,993,365 1	7,130,082 1	12,493,985 2	- -	- -	5,946,931 1	6,133,333 1	546,592 -	67,022,935 12					52,584,524 10	5,200,000 1	10,984,786 2	- -	7,096,550 1	19,596,620 4	305,584 -	44,397 -		95,812,461 18		162,835,396 30			79,308,216 15	26,672,119 5	220,788,020 41	48,903,842 9	48,903,842 9	375,672,197 70		538,507,593 100
					December 31, 2019	Amount %			$ 22,443,300 4	15,392,795 3	5,045,472 1	5,957,209 1	11,350,723 2	4,000,000 1	59,288 -	4,647,875 1	3,333,333 1	659,525 -	72,889,520 14					59,330,786 12	4,966,667 1	11,480,294 2	69,457 -	5,096,417 1	19,424,132 4	288,238 -	48,371 -		100,704,362 20		173,593,882 34			79,308,216 15	26,617,834 5	204,105,146 39	34,540,688 7		344,571,884 66		$ 518,165,766 100
(English Translation of Financial Statements and Report Originally Issued in Chinese)	NAN YA PLASTICS CORPORATION	Balance Sheets	December 31, 2019 and 2018	(Expressed in Thousands of New Taiwan Dollars)	December 31, 2019 December 31, 2018	Amount % Amount % Liabilities and Equity		Current liabilities:	$ 2,398,959 1 5,508,330 1 2100 Short-term borrowings (notes 6(k), (v) and (y))	4,044,356 1 4,017,249 1 2111 Short-term notes and bills payable (notes 6(j), (v) and (y))	2170 Notes and accounts payable (note 6(v))	41,715,821 8 44,528,667 8 2180 Accounts payable to related parties (notes 6(v) and 7)	2,035,966 1 2,417,539 1 2200 Other payables	10,297,642 2 12,333,877 2 2220 Other payables to related parties (notes 6(v), (y) and 7)	5,726,710 1 6,409,203 1 2280 Current lease liabilities (notes 6(n), (v), (y), and 7)	928,677 - 1,346,114 - 2321 Current portion of bonds payable (notes 6(m), (v) and (y))	5,640,819 1 12,683,027 3 2322 Current portion of long-term borrowings (notes 6(l), (v) and (y))	21,787,220 4 25,605,150 5 2399 Other current liabilities	2,011,482 - 1,736,359 - Total current liabilities		96,587,652 19 116,585,515 22 Non-Current liabilities:			2530 Bonds payable (notes 6(m), (v) and (y))	10,843,196 2 11,132,158 2 2540 Long-term borrowings (notes 6(m), (v) and (y))	2570 Deferred tax liabilities (notes 6(p))	334,228,505 64 339,241,706 63 2580 Non-current lease liabilities (note 6(n), (v), (y), and 7)	62,826,030 12 59,292,743 11 2611 Long-term notes payable (note 6(l), (v) and (y))	127,874 - - - 2640 Net defined benefit liability-non-current (note 6(n))	30,257 - 34,972 - 2645 Guarantee deposits	3,979,584 1 4,060,736 1 2670 Other non-current liabilities		1,669,032 - 1,401,284 - Total non-current liabilities		- - - - Total liabilities		7,873,636 2 6,758,479 1 Equity(notes 6(q)):	421,578,114 81 421,922,078 78 3110 Common Stock	3200 Capital surplus	3300 Retained earnings	3400 Others		Total equity		$ 518,165,766 100 538,507,593 100 Total liabilities and equity
						Assets		Current assets:	Cash and cash equivalents (notes 6(a) and (v))	Current financial assets at fair value through profit or loss (notes 6(b)	and (v))	Current financial assets at fair value through other comprehensive income (notes 6(c) and (v))	Notes receivable, net (notes 6(d) and (v))	Accounts receivable, net (notes 6(d) and (v))	Accounts receivable due from related parties (notes 6(d), (v) and 7)	Other receivables (note 6(e))	Other receivables due from related parties (notes 6(e), (v) and 7)	Inventories (note 6(f))	Other current assets			Total current assets		Non-current assets:	Non-current financial assets at fair value through other comprehensive	income (notes 6(c) and (v))	Investments accounted for using equity method (notes 6(g))	Property, plant and equipment (note 6(h))	Right-of-use assets (note 6(i))	Technology development expense	Deferred tax assets (note 6(p))		Prepayments for purchase of equipment		Overdue receivables (note 6(d))		Other non-current assets	Total non-current assets							Total assets
									1100	1110		1120	1150	1170	1180	1200	1210	130X	1470						1517		1550	1600	1755	1812	1840		1915		1937		1990
																		25

(English Translation of Financial Statements and Report Originally Issued in Chinese) NAN YA PLASTICS CORPORATION

Statements of Comprehensive Income

For the years ended December 31, 2019 and 2018

(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

4000 Operating revenue, net (notes 6(s) and 7) 5000 Operating costs (notes 6(f), (o), (t), 7 and 12) 5910 Less: Unrealized (realized) profit from affiliated companies (note 7) Gross profit from operations Operating expenses (notes 6(e), (o), (t), 7 and 12): 6100 Selling expenses 6200 Administrative expenses Total operating expenses Operating income Non-operating income and expenses (notes 6(g), (n), (u) and 7): 7010 Other income 7020 Gains (losses) on reclassification of financial assets 7050 Finance costs 7070 Share of profit of subsidiaries, associates and joint ventures accounted for using equity method, net Total non-operating income and expenses Profit before income tax 7950 Less: Income tax expenses(benefits)(notes 6(p)) Profit (loss) 8300 Other comprehensive income (notes 6(g) and (q)): 8310 Components of other comprehensive income that will not be reclassified to profit or loss 8311 Gains (losses) on remeasurements of defined benefit plans 8316 Unrealized losses from investments in equity instruments measured at fair value through other comprehensive income 8330 Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss 8349 Less : income tax related to components of other comprehensive income that will not be reclassified to profit or loss Total items that may not be reclassified subsequently to profit and loss 8360 Components of other comprehensive income (loss) that will be reclassified to profit or loss 8361 Exchange differences on translation of foreign financial statements 8380 Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss 8399 Less : income tax related to components of other comprehensive income that will be reclassified to profit or loss Total items that may be reclassified subsequently to profit or loss 8300 Other comprehensive income 8500 Total comprehensive income Basic earnings per share (note 6(r) ) :	2019 Amount % $154,799,788 100 140,895,897 91 (30,032) - 13,933,923 9 5,658,176 4 5,393,655 3 11,051,831 7 2,882,092 2 4,814,269 3 (84,658) - (1,369,753) (1) 18,321,507 12 21,681,365 14 24,563,457 16 1,487,334 1 23,076,123 15 34,401 - (3,101,808) (2) (5,543,433) (3) 6,880 - (8,617,720) (5) (5,866,135) (4) 15,812 - - - (5,850,323) (4) (14,468,043) (9) $ 8,608,080 6 Before Tax After Tax $ 3.10 2.91	2018 Amount % 188,909,965 100 161,183,893 85 (17,988) - 27,744,060 15 5,959,140 3 6,333,369 4 12,292,509 7 15,451,551 8 5,120,668 3 988,720 1 (1,274,829) (1) 37,534,582 20 42,369,141 23 57,820,692 31 5,074,671 3 52,746,021 28 (582,901) - (1,513,062) (1) (5,280,046) (3) (262,925) - (7,113,084) (4) 455,917 - (22,910) - 135,016 - 297,991 - (6,815,093) (4) 45,930,928 24 Before Tax After Tax 7.29 6.65

See accompanying notes to financial statements.

26

														Total equity	355,619,860	14,055,334		369,675,194			-	-	(40,447,190)	-		513,647	52,746,021	(6,815,093)	(6,815,093)	45,930,928			(382)	(382)	375,672,197			-	-	(39,654,108)	-		(54,285)	23,076,123	(14,468,043)	(14,468,043)	8,608,080		344,571,884
												Gains (losses)	on hedging	instruments	-	7,729		7,729			-	-	-	-		-	-	(22,910)		(22,910)			-		(15,181)			-	-	-	-		-	-	15,812		15,812		631
(English Translation of Financial Statements and Report Originally Issued in Chinese)	NAN YA PLASTICS CORPORATION	Statements of Changes in Equity	For the years ended December 31, 2019 and 2018	(Expressed in Thousands of New Taiwan Dollars)	Retained earnings Items of other equity interest	Unrealized	gains	(losses) from	Exchange financial assets Unrealized	differences on measured at gains (losses) Gains (losses)	translation of fair value on available- on effective	Unappropriated foreign through other for-sale portion of	Ordinary Capital Legal Special retained financial comprehensive financial cash flow	shares surplus reserve reserve earnings statements income assets hedges	79,308,216 26,158,472 57,873,852 86,932,416 63,674,176 (6,026,197) - 47,691,196 7,729	- - - - 507,292 - 61,239,238 (47,691,196) (7,729)		79,308,216 26,158,472 57,873,852 86,932,416 64,181,468 (6,026,197) 61,239,238 - -			- - 5,452,101 - (5,452,101) - - - -	- - - 6,819,825 (6,819,825) - - - -	- - - - (40,447,190) - - - -	- - - (15,150) 15,150 - - - -		- 513,647 - - - - - - -	- - - - 52,746,021 - - - -	- - - - (498,165) 320,901 (6,614,919) - -		- - - - 52,247,856 320,901 (6,614,919) - -			- - - - (382) - - - -		79,308,216 26,672,119 63,325,953 93,737,091 63,724,976 (5,705,296) 54,624,319 - -			- - 5,274,602 - (5,274,602) - - - -	- - - 6,106,008 (6,106,008) - - - -	- - - - (39,654,108) - - - -	- - - (1,433) 1,433 - - - -		- (54,285) - - - - - - -	- - - - 23,076,123 - - - -	- - - - (104,889) (5,866,135) (8,512,831) - -		- - - - 22,971,234 (5,866,135) (8,512,831) - -		79,308,216 26,617,834 68,600,555 99,841,666 35,662,925 (11,571,431) 46,111,488 - -
															$																																		$
															Balance at January 1, 2018	Effects of retrospective application		Balance at January 1, 2018 after adjustment		Appropriation and distribution of retained earnings:	Legal reserve appropriated	Special reserve appropriated	Cash dividends of ordinary shares	Reversal of special reserve	Other changes in capital surplus:	Other changes in capital surplus	Profit	Other comprehensive income		Total comprehensive income		Disposal of investments in equity instruments designated at fair value through	other comprehensive income		Balance at December 31, 2018		Appropriation and distribution of retained earnings:	Legal reserve appropriated	Special reserve appropriated	Cash dividends of ordinary share	Reversal of special reserve	Other changes in capital surplus:	Other changes in capital surplus	Profit	Other comprehensive income		Total comprehensive income		Balance at December 31, 2019

27

(English Translation of Financial Statements and Report Originally Issued in Chinese) NAN YA PLASTICS CORPORATION

Statements of Cash Flows

For the years ended December 31, 2019 and 2018

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from (used in) operating activities: Profit before tax Adjustments: Adjustments to reconcile profit (loss): Depreciation expense Amortization expense Net profit on financial assets or liabilities at fair value through profit or loss Interest expense Interest income Dividend income Share of profit of subsidiaries, associates and joint ventures accounted for using equity method (Gain) loss on disposal of property, plant and equipment Realized profit from affiliated companies Unrealized foreign exchange loss Total adjustments to reconcile profit (loss) Changes in operating assets and liabilities: Decrease (increase) in notes receivable Decrease (increase) in accounts receivable (including related parties) Decrease in other receivable Decrease (increase) in inventories Increase in other current assets Total changes in operating assets Decrease in notes and accounts payable (including related parties) Increase (decrease) in other payable Increase (decrease) in other current liabilities Decrease in net defined benefit liability Total changes in operating liabilities Total changes in operating assets and liabilities Total adjustments Cash inflow generated from operations Interest received Dividends received Interest paid Income taxes paid Net cash flows from operating activities Cash flows from (used in) investing activities: Proceeds from capital reduction of financial assets at fair value through other comprehensive income Proceeds from disposal of financial assets designated at fair value through profit or loss Acquisition of investments accounted for using equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Increase in refundable deposits Decrease (increase) in other receivables due from related parties Increase in other non-current assets Net cash flows (used in) from investing activities Cash flows from (used in) financing activities: Increase in short-term loans Increase in short-term notes and bills payable Proceeds from issuance of bonds Repayments of bonds Proceeds from long-term debt Repayments of long-term debt (Decrease) increase in long-term notes payable Decrease in guarantee deposits Increase in other payables to related parties Payment of lease liabilities Increase in other non-current liabilities Cash dividends paid Net cash flows used in financing activities Effect of exchange rate changes on cash and cash equivalents Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period

See accompanying notes to financial statements.

28

NAN YA PLASTICS CORPORATION

Statement of Profits Distribution

For the year of 2019

Unit ： NT$

For the year of 2019	Unit：NT$
Items	Amount
Available for Distribution: 1. Unappropriated retained earnings of previous years 2. Net Income of 2019 3. Reversal of Special Reserve 4. Change in retained earnings resulting from Other Comprehensive Income Total Distribution Items: 1. Appropriation of Legal Reserve (10% of the Net Income) 2. Appropriation of Special Reserve (unrealized investing profit under equity method) 3. Distribution of dividends and bonuses in cash ($2.2 per share) 4. Unappropriated retained earnings Total	12,690,257,041 23,076,122,677 1,432,697 -104,887,898
	35,662,924,517
	2,307,612,268 3,159,705,504 17,447,807,496 12,747,799,249
	35,662,924,517
Explanation
1. The proposed distribution is NT$2.2 per share, including dividend of NT$1.474 and bonus of NT$0.726. 2. The total distribution of dividends and bonuses amount to $ 17,447,807,496; all of which are from the net income of 2019. 3. Reversal of Special Reserve is to revert the Special Reserve formerly appropriated from the asset revaluation increments as the relevant assets are disposed. 4. Change in retained earnings resulting from Other Comprehensive Income is the remeasurement of defined benefit obligation. 5. The distribution of dividends and bonuses will be rounded to the nearest dollar for each individual shareholder.

29