NPC — Annual Report 2020

Dec 15, 2020

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Stock Code:1303

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

Financial Statements

With Independent Auditors’ Report For the Years Ended December 31, 2020 and 2019

Address: 101, Shuiguan Road, Renwu Dist., Kaohsiung City 814, Taiwan Telephone: (07)371-1411

The independent auditors’ report and the accompanying financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ report and financial statements, the Chinese version shall prevail.

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Table of contents

Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Report 4. Balance Sheets 5. Statements of Comprehensive Income 6. Statements of Changes in Equity 7. Statements of Cash Flows 8. Notes to the Financial Statements (1) Company history (2) Approval date and procedures of the financial statements (3) New standards, amendments and interpretations adopted (4) Summary of significant accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Commitments and contingencies (10) Losses Due to Major Disasters (11) Subsequent Events (12) Other (13) Other disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in mainland China (d) Major shareholders (14) Segment information 9. List of major account titles

Page

1 2 3 4 5 6 7 8 8 8～9 9～26 26～27 27～59 59～67 67 67～68 68 68 68～69 70、72～83 70、84～86 70、87～88 70～71 71 89～99

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KPMG

台北市110615信義路5段7號68樓(台北101大樓) 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, Xinyi Road, Taipei City 110615, Taiwan (R.O.C.)

Telephone 電話 + 886 2 8101 6666 Fax 傳真 + 886 2 8101 6667 Internet 網址 home.kpmg/tw

Independent Auditors’ Report

To the Board of Directors of NAN YA PLASTICS CORPORATION:

Opinion

We have audited the financial statements of NAN YA PLASTICS CORPORATION (“the Company”), which comprises the statement of financial position as of December 31, 2020 and 2019, the statements of comprehensive income, changes in equity and cash flows for the years ended December 31, 2020 and 2019, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the report of other auditors (please refer to Other Matter paragraph), the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2020 and 2019, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audit of the financial statements as of and for the year ended December 31, 2020 in accordance with the Regulations Governing Auditing and Certification of Financial Statements by Certified Public Accountants, and the auditing standards generally accepted in the Republic of China. Furthermore, we conducted our audit of the financial statements as of and for the year ended December 31, 2019 in accordance with the Regulations Governing Auditing and Certification of Financial Statements by Certified Public Accountants, Rule No. 1090360805 issued by the Financial Supervisory Commission, and the auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Certified Public Accountants Code of Professional Ethics in Republic of China (“the Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code. Based on our audits and the report of other auditors, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key audit matters for the Company's financial statements are stated as follows:

1. Revenue recognition

Please refer to note 4(o) "Revenue recognition" for the accounting policy related to revenue recognition, and note 6(s) "Revenue" for information related to revenue recognition for the individual financial statement.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

3-1

How the matter was addressed in our audit

Nan Ya Plastics Corporation is a listed company and its operating performance has an effect on distribution to its shareholders and stock price. Thus, its financial performance will have an impact on the users of financial statement. Therefore, the veracity and appropriateness of revenue recognition is a key matter when conducting our audit.

Our principal audit procedures included the following:

• (1) Assessing the accounting policies and appropriateness of revenue recognition (including sales returns and discounts).

• (2) Obtaining the list of the top ten newly-added clients and the list of newly added related parties for the current year, inspecting whether the transaction terms are different for normal clients, and reviewing the Company’s financial position after the reporting period to verify the frequency of unusual sales returns for the purpose of assessing the appropriateness of revenue recognition.

• (3) Selecting a moderate number of samples from sales invoices to verify that the accounts receivable have been recovered and to ensure that the remitter matches the customer for the purpose of assessing the accuracy of revenue recognition.

• (4) Performing sales cut-off test on the period before and after the financial position date by vouching relevant documents of sales transactions to determine whether sales income, return, and discounts have been appropriately recognized.

2. Valuation of inventories

Please refer to note 4(g) "Inventories" for the accounting policy related to valuation of inventories, and note 6(f) "Inventories, net" for information related to valuation of inventories for the parent-company-only financial statement.

How the matter was addressed in our audit

The amount of inventories shall be disclosed by lower of cost or net realizable value. Since the net realizable value is influenced by the international raw material pricing, there is a risk that the cost will exceed its net realizable value. Therefore, the valuation of inventories is a key audit matter when conducting the audit of the individual financial statement.

Our principal audit procedures included the following:

• (1) Assessing the appropriateness of inventories valuation policies.

• (2) Ensuring the process of inventory valuation is in conformity with the accounting policies.

• (3) Understanding the net realizable values used by management and the variation of the prices in a period after the reporting date to ensure the appropriateness of the valuation price.

• (4) Assessed whether the disclosure of provision for inventory valuation is appropriate.

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Other Matter

We did not audit the financial statements of certain investee companies, which represented investment in other entities accounted for using the equity method of the Company. Those statements were audited by other auditors, whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for aforementioned investee companies, is based solely on the report of other auditors. The investment in aforementioned investee companies accounted for using the equity method constituting 21.39 percent and 22.75 percent of total assets at December 31, 2020 and 2019, respectively, and the related share of profit of subsidiaries, associates and joint ventures accounted for using the equity method constituting 13.43 percent and 40.53 percent of total profit before tax for the years ended December 31, 2020 and 2019, respectively.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company’ s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance (including the Audit Committee) are responsible for overseeing the Company’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the auditing standards generally accepted in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with auditing standards generally accepted in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

3-3

1. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

2. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

3. Obtain sufficient and appropriate audit evidence regarding the financial information of the investment in other entities accounted for using the equity method to express an opinion on this financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors’ report are

Kou, Hsin-Yi and Yu, Chi-Lung.

KPMG

Taipei, Taiwan (Republic of China) March 18, 2021

Notes to Readers

The accompanying financial statements are intended only to present the financial position, financial performance and cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such financial statements are those generally accepted and applied in the Republic of China.

The independent auditors’ audit report and the accompanying financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ audit report and financial statements, the Chinese version shall prevail.

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

Balance Sheets

December 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

Assets Current assets: 1100 Cash and cash equivalents (notes 6(a) and (v)) 1110 Current financial assets at fair value through profit or loss (notes 6(b) and (v)) 1120 Current financial assets at fair value through other comprehensive income (notes 6(c), (v) and 8) 1150 Notes receivable, net (notes 6(d) and (v)) 1170 Accounts receivable, net (notes 6(d) and (v)) 1180 Accounts receivable due from related parties (notes 6(d), (v) and 7) 1200 Other receivables (note 6(e) and (v)) 1210 Other receivables due from related parties (notes 6(e), (v) and 7) 130X Inventories (note 6(f)) 1470 Other current assets Total current assets Non-current assets: 1517 Non-current financial assets at fair value through other comprehensive income (notes 6(c), (g) and (v)) 1550 Investments accounted for using equity method (notes 6(g)) 1600 Property, plant and equipment (note 6(h) and 8) 1755 Right-of-use assets (note 6(i)) 1812 Technology development expense 1840 Deferred tax assets (note 6(p)) 1915 Prepayments for purchase of equipment 1937 Overdue receivables (note 6(d)) 1990 Other non-current assets Total non-current assets Total assets	December 31, 2020 Amount % $ 3,763,462 1 3,888,883 1 40,320,070 8 2,009,175 - 11,465,802 2 6,350,992 1 845,669 - 4,263,200 1 22,279,829 4 2,184,221 1 97,371,303 19 18,338,611 3 330,128,020 63 67,150,188 13 216,511 - 25,542 - 3,761,242 1 1,378,684 - - - 7,336,089 1 428,334,887 81 $ 525,706,190 100	December 31, 2019 Amount % 2,398,959 1 4,044,356 1 41,715,821 8 2,035,966 1 10,297,642 2 5,726,710 1 928,677 - 5,640,819 1 21,787,220 4 2,011,482 - 96,587,652 19 10,843,196 2 334,228,505 64 62,826,030 12 127,874 - 30,257 - 3,979,584 1 1,669,032 - - - 7,873,636 2 421,578,114 81 518,165,766 100 Liabilities and Equity Current liabilities: 2100 Short-term borrowings (notes 6(k), (v) and (y)) 2110 Short-term notes and bills payable (notes 6(j), (v) and (y)) 2170 Notes and accounts payable (note 6(v)) 2180 Accounts payable to related parties (notes 6(v) and 7) 2200 Other payables 2220 Other payables to related parties (notes 6(v), (y) and 7) 2280 Current lease liabilities (notes 6(n), (v), (y), and 7) 2321 Current portion of bonds payable (notes 6(m), (v) and (y)) 2322 Current portion of long-term borrowings (notes 6(l), (v) and (y)) 2399 Other current liabilities Total current liabilities Non-Current liabilities: 2530 Bonds payable (notes 6(m), (v) and (y)) 2540 Long-term borrowings (notes 6(l), (v) and (y)) 2570 Deferred tax liabilities (notes 6(p)) 2580 Non-current lease liabilities (note 6(n), (v), (y), and 7) 2611 Long-term notes payable (note 6(l), (v) and (y)) 2640 Net defined benefit liability-non-current (note 6(o)) 2645 Guarantee deposits 2670 Other non-current liabilities Total non-current liabilities Total liabilities Equity(notes 6(q)): 3110 Common Stock 3200 Capital surplus 3300 Retained earnings 3400 Others Total equity Total liabilities and equity	December 31, 2020		December 31, 2019
			Amount %		Amount %
			$ 30,740,000 6 18,296,579 3 5,473,604 1 6,362,707 1 11,510,209 2 3,000,000 1 62,584 - 5,747,142 1 500,000 - 597,889 - 82,290,714 15 63,581,765 12 3,800,000 1 12,290,016 2 155,369 - - - 18,627,384 4 293,359 - 50,716 - 98,798,609 19 181,089,323 34 79,308,216 15 26,523,931 5 212,630,726 41 26,153,994 5 344,616,867 66 $ 525,706,190 100		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

See accompanying notes to financial statements.

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(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, 2020 and 2019

(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(o), (t), 7 and 12): 6100 Selling expenses 6200 Administrative expenses 6450 Expected credit gain (notes 6(d)) Total operating expenses Operating income Non-operating income and expenses (notes 6(g), (n), (u) and 7): 7010 Other income 7020 Other gains and losses, net 7050 Finance costs 7060 Share of profit of associates and joint ventures accounted for using equity method, net 7100 Interest income Total non-operating income and expenses Profit before income tax 7950 Less: Income tax expenses(notes 6(p)) Profit 8300 Other comprehensive income(loss) (notes 6(c),(g),(p) 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) ) :	2020 Amount % $143,405,521 100 123,020,364 86 (16,152) - 20,401,309 14 5,680,378 4 5,553,012 4 (6,022) - 11,227,368 8 9,173,941 6 3,508,250 3 (1,062,230) (1) (1,260,917) (1) 17,182,310 12 87,821 - 18,455,234 13 27,629,175 19 1,920,126 1 25,709,049 18 508,931 - (11,455,198) (8) 5,987,611 4 101,786 - (5,060,442) (4) (3,053,963) (2) 30,107 - - - (3,023,856) (2) (8,084,298) (6) $ 17,624,751 12 Before Tax After Tax $ 3.48 3.24	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 4,509,152 3 (84,658) - (1,369,753) (1) 18,321,507 12 305,117 - 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
		Before Tax 3.10

See accompanying notes to financial statements.

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(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, 2020 and 2019 (Expressed in Thousands of New Taiwan Dollars)

Balance at January 1, 2019 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 Balance at December 31, 2019 Appropriation and distribution of retained earnings: Legal reserve appropriated Special reserve appropriated Cash dividends of ordinary share Reversal of special reserve Profit Other comprehensive income Total comprehensive income Changes in equity of associates and joint ventures accounted for using equity method Other changes in capital surplus Disposal of investments in equity instruments designated at fair value through other comprehensive income Balance at December 31, 2020	Ordinary shares $ 79,308,216 - - - - - - - - 79,308,216 - - - - - - - - - - $ 79,308,216	Capital surplus		Retained earnings		Items	of other equity int	erest Gains (losses) on hedging instruments (15,181) - - - - - - 15,812 15,812 631 - - - - - 30,107 30,107 - - - 30,738	Total equity
			Legal reserve 63,325,953 5,274,602 - - - - - - - 68,600,555 2,307,613 - - - - - - - - - 70,908,168	Special reserve 93,737,091 - 6,106,008 - (1,433) - - - - 99,841,666 - 3,159,706 - (1,842) - - - - - - 102,999,530	Unappropriated retained earnings 63,724,976 (5,274,602) (6,106,008) (39,654,108) 1,433 - 23,076,123 (104,889) 22,971,234 35,662,925 (2,307,613) (3,159,706) (17,447,807) 1,842 25,709,049 425,023 26,134,072 (38,058) - (122,627) 38,723,028	Exchange differences on translation of foreign financial statements (5,705,296) - - - - - - (5,866,135) (5,866,135) (11,571,431) - - - - - (3,053,963) (3,053,963) - - - (14,625,394)	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income 54,624,319 - - - - - - (8,512,831) (8,512,831) 46,111,488 - - - - - (5,485,465) (5,485,465) - - 122,627 40,748,650
		26,672,119 - - - - (54,285) - -							375,672,197 - - (39,654,108) - (54,285) 23,076,123 (14,468,043)
		-							8,608,080
		26,617,834							344,571,884
		- - - - - -							- - (17,447,807) - 25,709,049 (8,084,298)
		-							17,624,751
		- (93,903) -							(38,058) (93,903) -
		26,523,931							344,616,867

See accompanying notes to financial statements.

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(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, 2020 and 2019

(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 Expected credit gain Net loss (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 Disposal of property, plant and equipment Property, plant and equipment transferred to expenses Realized profit from affiliated companies Unrealized foreign exchange loss Total adjustments to reconcile profit (loss) Changes in operating assets and liabilities: Decrease in notes receivable (Increase) decrease in accounts receivable (including related parties) Decrease in other receivable (Increase) decrease in inventories Increase in other current assets Total changes in operating assets Increase (decrease) in notes and accounts payable (including related parties) (Decrease) increase in other payable (Decrease) increase 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 Acquisition of investments accounted for using equity method Proceeds from capital reduction 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 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 issuing bonds Repayments of bonds Proceeds from long-term debt Repayments of long-term debt Decrease in long-term notes payable Increase (decrease) in guarantee deposits (Decrease) 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 increase (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.

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

Notes to the Financial Statements

For the years ended December 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(1) Company history

Nan Ya Plastics Corporation was incorporated on August 22, 1958, and established its factories in Kaohsiung City. The Company engages in the manufacture and sale of plastic products, polyester fibers, petrochemical products, and electronic materials. The Company has gone through several capital increases and established many divisions. Currently, the Company has the following divisions: plastics, fiber, petrochemical, electronics, and engineering. The Company has 10 manufacturing plants across Taiwan, 1 branch office in Mai-Liao and 1 branch office in Sen-Kong.

(2) Approval date and procedures of the financial statements:

The accompanying financial statements were approved and authorized for issue by the Board of Directors on March 18, 2021.

(3) New standards, amendments and interpretations adopted:

• (a) The impact of the International Financial Reporting Standards (“IFRSs”) endorsed by the Financial Supervisory Commission, R.O.C. (“FSC”) which have already been adopted.

The Company has initially adopted the new amendments, which do not have a significant impact on its financial statements, from January 1, 2020.

• (b) The impact of IFRS issued by the FSC but not yet effective

The Company assesses that the adoption of the new amendments, effective for annual period beginning on January 1, 2021, would not have a significant impact on its financial statements.

• (c) The impact of IFRS issued by IASB but not yet endorsed by the FSC

The following new and amended standards, which may be relevant to the Company, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

Standards or Interpretations Amendments to IAS 1 “Disclosure of Accounting Policies”

Content of amendment Effective date per IASB The key amendments to IAS 1 include: ●requiring companies to disclose their material accounting policies rather than their significant accounting policies; ●clarifying that accounting policies related to immaterial transactions, other events or conditions are themselves immaterial and as such need not be disclosed; and ●clarifying that not all accounting policies that relate to material transactions, other events or conditions are themselves material to a company’s financial statements. January 1, 2023

(Continued)

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NAN YA PLASTICS CORPORATION Notes to the Financial Statements

Standards or Interpretations Amendments to IAS 8 “Definition of Accounting Estimates”

Content of amendment Effective date per IASB The amendments introduce a new definition for accounting estimates: clarifying that they are monetary amounts in the financial statements that are subject to measurement uncertainty. The amendments also clarify the relationship between accounting policies and accounting estimates by specifying that a company develops an accounting estimate to achieve the objective set out by an accounting policy. January 1, 2023

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

The Company does not expect the other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its financial statements.

(4) Summary of significant accounting policies:

The significant accounting policies presented in the financial statements are summarized below. Except for those specifically indicated, the following accounting policies were applied consistently throughout the periods presented in the financial statements.

• (a) Statement of compliance

These annual financial statements have been prepared in accordance with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as the Guidelines).

• (b) Basis of preparation

Basis of measurement

Except for the following significant accounts, the financial statements have been prepared on a historical cost basis:

• (i) Financial instruments at fair value through profit or loss are measured at fair value;

• (ii) Financial assets at fair value through other comprehensive income are measured at fair value;

• (iii) The defined benefit liabilities are measured at fair value of the plan assets less the present value of the defined benefit obligation, limited as explained in note 4(q).

Functional and presentation currency

The functional currency of the Company is determined based on the primary economic environment in which the entity operates. The financial statements are presented in New Taiwan Dollar, which is the Company’s functional currency. All financial information presented in New Taiwan Dollar has been rounded to the nearest thousand.

(Continued)

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NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(c) Foreign currency

• (i) Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currencies of the Company at the exchange rates at the dates of the transactions. At the end of each subsequent reporting period, monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currenciesy using the exchange rate at the date that the fair value was determined. Non-monetary items denominated in foreign currencies that are measured based on historical cost are translated using the exchange rate at the date of the transaction.

Exchange differences are generally recognized in profit or loss, except for those differences relating to the following, which are recognized in other comprehensive income:

• 1) an investment in equity securities designated as at fair value through other comprehensive income;

• 2) a financial liability designated as a hedge of the net investment in a foreign operation to the extent that the hedge is effective; or

• 3) qualifying cash flow hedges to the extent that the hedges are effective.

(ii) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into the presentation currency at the exchange rates at the reporting date. The income and expenses of foreign operations, are translated into the presentation currency at average rate. Exchange differences are recognized in other comprehensive income.

When a foreign operation is disposed of such that control, significant influence, or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When the Company disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to noncontrolling interest. When the Company disposes of only part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.

When the settlement of a monetary receivable from or payable to a foreign operation is neither planed nor likely to occur in the foreseeable future, exchange differences arising from such a monetary items are considered to form part of a net investment in the foreign operation and are recognized in other comprehensive income.

(Continued)

11

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

• (d) Classification of current and non-current assets and liabilities

An asset is classified as current under one of the following criteria, and all other assets are classified as non-current.

• (i) It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;

• (ii) It is held primarily for the purpose of trading;

• (iii) It is expected to be realized within twelve months after the reporting period; or

• (iv) The asset is cash or a cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

A liability is classified as current under one of the following criteria, and all other liabilities are classified as non-current.

An entity shall classify a liability as current when:

• (i) It is expected to be settled in the normal operating cycle;

• (ii) It is held primarily for the purpose of trading;

• (iii) It is due to be settled within twelve months after the reporting period; or

• (iv) The Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by issuing equity instruments do not affect its classification.

(e) Cash and cash equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits which meet the above definition and are held for the purpose of meeting short term cash commitments rather than for investment or other purposes should be recognized as cash equivalents.

(f) Financial instruments

Trade receivables and debt securities issued are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

• (i) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

(Continued)

12

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

On initial recognition, a financial asset is classified as measured at: amortized cost; Fair value through other comprehensive income (FVOCI) – equity investment; or FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

• 1) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

• it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

• its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

These assets are subsequently measured at amortized cost, which is the amount at which the financial asset is measured at initial recognition, plus/minus, the cumulative amortization using the effective interest method, adjusted for any loss allowance. Interest income, foreign exchange gains and losses, as well as impairment, are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

• 2) Fair value through other comprehensive income (FVOCI)

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

• it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

• its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’ s fair value in other comprehensive income. This election is made on an instrument-by-instrument basis.

Equity investments at FVOCI are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in other comprehensive income and are never reclassified to profit or loss.

Dividend income derived from equity investments is recognized on the date that the Company’s right to receive payment is established, which in the case of quoted securities is normally the ex-dividend date.

(Continued)

13

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

3) Fair value through profit or loss (FVTPL)

All financial assets not classified as amortized cost or FVOCI described as above are measured at FVTPL, including derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.

• 4) Business model assessment

The Company makes an assessment of the objective of the business model in which a financial asset is held at portfolio level because this best reflects the way the business is managed and information is provided to management. The information considered includes:

• the stated policies and objectives for the portfolio and the operation of those policies in practice. These include whether management’ s strategy focuses on earning contractual interest income, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of any related liabilities or expected cash outflows or realizing cash flows through the sale of the assets;

• how the performance of the portfolio is evaluated and reported to the Company’s management;

• the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed;

• how managers of the business are compensated ─ e.g. whether compensation is based on the fair value of the assets managed or the contractual cash flows collected; and

• the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales activity.

Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales for this purpose, and are consistent with the Company’s continuing recognition of the assets.

Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are measured at FVTPL.

• 5) Assessment whether contractual cash flows are solely payments of principal and interest

For the purposes of this assessment, ‘ principal’ is defined as the fair value of the financial assets on initial recognition. ‘Interest’ is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs, as well as a profit margin.

(Continued)

14

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

In assessing whether the contractual cash flows are solely payments of principal and interest, the Company considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Company considers:

• contingent events that would change the amount or timing of cash flows;

• terms that may adjust the contractual coupon rate, including variable rate features;

• prepayment and extension features; and

• terms that limit the Company’s claim to cash flows from specified assets (e.g. nonrecourse features)

• 6) Impairment of financial assets

The Company recognizes loss allowances for expected credit losses (ECL) on financial assets measured at amortized cost (including cash and cash equivalents, amortized costs, notes and accounts receivable, other receivable, guarantee deposit paid and other financial assets), and contract assets.

The Company measures loss allowances at an amount equal to lifetime ECL, except for the following which are measured as 12-month ECL:

• debt securities that are determined to have low credit risk at the reporting date; and

• other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowance for trade receivables and contract assets are always measured at an amount equal to lifetime ECL.

Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.

12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 month after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

The maximum period considered when estimating ECLs is the maximum contractual period over which the Company is exposed to credit risk.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on the Company’ s historical experience and informed credit assessment as well as forwardlooking information.

(Continued)

15

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

The Company assumes that the credit risk on a financial asset has increased significantly if there is a breach of contract.

The Company considers a financial asset to be in default when the borrower is unlikely to pay its credit obligations to the Company in full. The Company measures its loss allowances at an amount equal to lifetime expected credit loss.

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e the difference between the cash flows due to the Company in accordance with the contract and the cash flows that the Company expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

At each reporting date, the Company assesses whether financial assets carried at amortized cost is credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial assets is credit-impaired includes the following observable data:

• significant financial difficulty of the borrower or issuer;

• a breach of contract such as a default or being more than one year past due;

• the lender of the borrower, for economic or contractual reasons relating to the borrower's financial difficulty, having granted to the borrower a concession that the lender would not otherwise consider;

• it is probable that the borrower will enter bankruptcy or other financial reorganization; or

• the disappearance of an active market for a security because of financial difficulties.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets.

The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. The Company individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Company expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company’s procedures for recovery of amounts due.

• 7) Derecognition of financial assets

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

(Continued)

16

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

The Company enters into transactions whereby it transfers assets recognized in its statement of balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

• (ii) Financial liabilities and equity instruments

• 1) Classification of debt or equity

Debt and equity instruments issued by the Company are classified as financial liabilities or equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

• 2) Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

• 3) Derecognition of financial liabilities

The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.

On derecognition of a financial liability, the difference between the carrying amount of a financial liability extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

• 4) Offsetting of financial assets and liabilities

Financial assets and financial liabilities are offset and the net amount presented in the statement of balance sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

(g) Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is calculated using the weighted average method, and includes expenditure incurred in acquiring the inventories, production or conversion costs, and other costs incurred in bringing them to their present location and condition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity.

(Continued)

17

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

(h) Investment in associates

Associates are those entities in which the Company has significant influence, but not control or joint control, over the financial and operating policies.

Investments in associates are accounted for using the equity method and are recognized initially at cost. The cost of the investment includes transaction costs. The carrying amount of the investment in associates includes goodwill which is arising from the acquisition less any accumulated impairment losses.

The financial statements include the Company’s share of the profit or loss and other comprehensive income of those associates, after adjustments to align the accounting policies with those of the Company, from the date on which significant influence commences until the date on which significant influence ceases. The Company recognizes any changes of its proportionate share in the investee within capital surplus, when an associate’s equity changes due to reasons other than profit and loss or comprehensive income, which did not result in changes in actual significant influence.

Gains and losses resulting from transactions between the Company and an associate are recognized only to the extent of unrelated Company’s interests in the associate.

When the Company’s share of losses of an associate equals or exceeds its interests in an associate, it discontinues recognizing its share of further losses. After the recognized interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate.

When the Company subscribes to additional shares in an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment will differ from the amount of the Company’s proportionate interest in the net assets of the associate. The Company records such a difference as an adjustment to its investments, with the corresponding amount charged or credited to capital surplus. The aforesaid adjustment should first be adjusted under additional paid in capital. If the additional paid in capital resulting from changes in ownership interest is not sufficient, the remaining difference is debited to retained earnings. If the Company’s ownership interest is reduced due to the additional subscription of the shares of the associate by other investors, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate will be reclassified to profit or loss on the same basis as would be required if the associate had directly disposed of its related assets or liabilities.

(i)

Subsidiaries

The Company accounts the investee companies that it possesses control using the equity. Net income, other comprehensive income, and shareholder’ s equity in the financial reports of the Company and the net income, other comprehensive income, and shareholder’s equity that belongs to the Consolidated Company in the consolidated financial reports should be the same.

The Company accounts the changes in equity, under the condition that control is still present, as equity transactions between the proprietors.

(Continued)

18

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(j) Joint arrangements

A joint arrangement is an arrangement of which two or more parties have joint control. The IFRS classifies joint arrangements into two types — joint operations and joint ventures, which have the following characteristics:

• (i) the parties are bound by a contractual arrangement; and

• (ii) the contractual arrangement gives two or more of those parties joint control of the arrangement. IFRS 11 “Joint Arrangements” defines joint control as the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities (ie activities that significantly affect the returns of the arrangement) require the unanimous consent of the parties sharing control.

A joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. The Company accounts for the assets, liabilities, revenues and expenses in relation to its interest in a joint operation in accordance with the IFRSs applicable to the particular assets, liabilities, revenues and expenses. When assessing whether a joint arrangement is a joint operation or a joint venture, the Company considers the structure and legal form of the arrangement, the terms agreed by the parties in the contractual arrangement and, when relevant, other facts and circumstances.

A joint venture is a joint arrangement whereby the Company has joint control of the arrangement (i.e. joint venturers) in which the Company has rights to the net assets of the arrangement , rather than rights to its assets and obligations for its liabilities. The Company recognizes its interest in a joint venture as an investment and accounts for that investment using the equity method in accordance with IAS 28 “ Investments in Associates and Joint Ventures” , unless the Company qualifies for exemption from that Standard. Please refer to note 4(i) for the application of the equity method.

When assessing the classification of a joint arrangement, the Company considers the structure and legal form of the arrangement, the terms in the contractual arrangement, and other facts and circumstances. When the facts and circumstances change, the Company reevaluates whether the classification of the joint arrangement has changed.

• (k) Property, plant and equipment

• (i) Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

(Continued)

19

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(ii) Subsequent cost

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

• (iii) Depreciation

Depreciation is calculated on the cost of an asset less its residual value and is recognized in profit or loss on a straight line basis over the estimated useful lives of each component of an item of property, plant and equipment.

Land is not depreciated.

The estimated useful lives of property, plant and equipment for the current and comparative years are as follows:

• 1) Buildings: 25 to 50 years.

• 2) Machinery and transportation equipment: 7 to 15 years.

• 3) Miscellaneous equipment: 7 to 15 years.

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(l) Lease

• (i) Identifying a lease

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

• 1) the contract involves the use of an identified asset – this may be specified explicitly or implicitly, and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified; and

• 2) the Company has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and

• 3) the Company has the right to direct the use of the asset if either:

• the Company has the right to direct how and for what purpose the asset is used throughout the period of use; or

(Continued)

20

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

• the relevant decisions about how and for what purpose the asset is used are predetermined and:

• － the Company has the right to operate the asset is used throughout the period of use; or

• － the Company designed the asset in a way that predetermines how and for what purpose it will be used throughout the period of use.

At inception or on reassessment of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. However, for the leases of land and buildings in which it is a lessee, the Company has elected not to separate non-lease components and account for the lease and non-lease components as a single lease component.

(ii) As a leasee

The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

• 1) fixed payments, including in-substance fixed payments;

• 2) variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

• 3) amounts expected to be payable under a residual value guarantee; and

• 4) payments for purchase or termination options that are reasonably certain to be exercised.

(Continued)

21

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when:

• 1) there is a change in future lease payments arising from the change in an index or rate; or

• 2) there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee; or

• 3) there is a change in the lease term resulting from a change of its assessment on whether it will exercise an option to purchase the underlying asset, or

• 4) there is a change of its assessment on whether it will exercise a extension or termination option; or

• 5) there is any lease modifications

When the lease liability is remeasured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

When the lease liability is remeasured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Company accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize in profit or loss any gain or loss relating to the partial or full termination of the lease.

The Company presents right-of-use assets that do not meet the definition of investment and lease liabilities as a separate line item respectively in the statement of financial position.

The Company has elected not to recognize right-of-use assets and lease liabilities for shortterm leases of buildings that have a lease term of 12 months or less and leases of low-value assets. The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

• (iii) As a leasor

When the Company acts as a lessor, it determines at lease commencement whether each lease is a finance lease or an operating lease. To classify each lease, the Company makes an overall assessment of whether the lease transfers to the lessee substantially all of the risks and rewards of ownership incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then the lease is an operating lease. As part of this assessment, the Company considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease. If a head lease is a short-term lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease.

(Continued)

22

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

If an arrangement contains lease and non-lease components, the Company applies IFRS15 to allocate the consideration in the contract.

The lessor recognizes a finance lease receivable at an amount equal to its net investment in the lease. Initial direct costs, such as lessors to negotiate and arrange a lease, are included in the measurement of the net investment. The interest income is recognized over the lease term based on a pattern reflecting a constant periodic rate of return on the net investment in the lease. The Company recognizes lease payments received under operating leases as income on a straight-line basis over the lease term as part of ‘other income’.

(m) Technical cooperation fee

(i) Technical cooperation fee

Technical cooperation fee is measured at cost less accumulated amortization and any accumulated impairment losses.

(ii) Subsequent expenditure

Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditures, including expenditure on internally generated goodwill and brands, is recognized in profit or loss as incurred.

• (iii) Amortization

Amortization is calculated over the cost of the asset, less its residual value, and is recognized in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use. The estimated useful lives for current and comparative periods are as follows:

1) Technical cooperation fee 5~15 years

Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(n) Impairment – Non-financial assets

At each reporting date, the Company reviews the carrying amounts of its non-financial assets (other than inventories and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

(Continued)

23

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount.

Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

• (o) Revenue recognition

• (i) Revenue from contracts with customers

Revenue is measured based on the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. The accounting policies for the Company’ s main types of revenue are explained below.

• 1) Sale of goods

The Company recognizes revenue when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Company any has objective evidence that all criteria for acceptance have been satisfied.

• 2) Financing components

The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.

(p) Contract costs

• (i) Incremental costs of obtaining a contract

The Company recognizes as an asset the incremental costs of obtaining a contract with a customer if the Company expects to recover those costs. The incremental costs of obtaining a contract are those costs that the Company incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained. Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained shall be recognized as an expense when incurred, unless those costs are explicitly chargeable to the customer regardless of whether the contract is obtained.

(Continued)

24

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

The Company applies the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less.

(ii) Costs to fulfil a contract

If the costs incurred in fulfilling a contract with a customer are not within the scope of another Standard (for example, IAS 2 Inventories, IAS 16 Property, Plant and Equipment or IAS 38 Intangible Assets), the Company recognizes an asset from the costs incurred to fulfil a contract only if those costs meet all of the following criteria:

• ●the costs relate directly to a contract or to an anticipated contract that the Company can specifically identify;

• ●the costs generate or enhance resources of the Company that will be used in satisfying (or in continuing to satisfy) performance obligations in the future; and

• ●the costs are expected to be recovered.

General and administrative costs, costs of wasted materials, labor or other resources to fulfil the contract that were not reflected in the price of the contract, costs that relate to satisfied performance obligations (or partially satisfied performance obligations), and costs for which the Company cannot distinguish whether the costs relate to unsatisfied performance obligations or to satisfied performance obligations(or partially satisfied performance obligations), the Company recognizes these costs as expenses when incurred.

(q) Employee benefits

(i) Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service is provided.

(ii) Defined benefit plans

The Company’s net obligation in respect of defined benefit plans is calculated separately for each the plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Company, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

(Continued)

25

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income, and accumulated in retained earnings within equity. The Company determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset). Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Company recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

(iii) Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

• (r) Income taxes

Income taxes comprise current taxes and deferred taxes. Except for expenses related to business combinations or recognized directly in equity or other comprehensive income, all current and deferred taxes are recognized in profit or loss.

Current taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or receivables are the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.

Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases. Deferred taxes are recognized except for the following:

• (i) temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profits (losses) at the time of the transaction;

• (ii) temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

(iii) taxable temporary differences arising on the initial recognition of goodwill.

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reserve, using tax rates enacted or substantively enacted at the reporting date.

(Continued)

26

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

Deferred tax assets and liabilities are offset if the following criteria are met:

• (i) the Company has a legally enforceable right to set off current tax assets against current tax liabilities ; and

• (ii) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:

• 1) the same taxable entity; or

• 2) different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

Deferred tax asset are recognized for the carry forward of unused tax losses, unused tax credits, and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefits will be realized; such reductions are reversed when the probability of future taxable profits improves.

(s) Earnings per share

The Company discloses the Company’s basic and diluted earnings per share attributable to ordinary shareholders of the Company. Basic earnings per share is calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding.

(t)

Operating segments

The Company has already disclosed related information of its operating segments in the consolidated financial report of the Consolidated Company as of December 31, 2020, thus no additional information will be disclosed herein.

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty:

The preparation of the financial statements in conformity with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers requires management to make judgments, estimates, and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

The management continues to monitor the accounting estimates and assumptions.The management recognizes any changes in accounting estimates during the period and the impact of those changes in accounting estimates in the following period.

Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the consolidated financial statements.

(Continued)

27

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year is as follows:

• (a) Evauation of inventory

Because inventories are measured at the lower of cost and net realizable value, the Company evaluates the amount of normal waste, obsolete, and inventories without market price as of the reporting date, and reduces the book value to net realizable value. Such evaluation method depends on the demand of merchandise for a particular period of time in the future; therefore, there might be significant change due to the rapid industry transformation. Please refer to note 6(f) for further description of the evaluation of inventories.

• (b) The Company's accounting policies include measuring financial and non-financial assets and liabilities at fair value through profit or loss. The Company establishes a measurement and review mechanism for measuring fair value.

The Company strives to use market observable inputs when measuring assets and liabilities. Different levels of the fair value hierarchy to be used in determining the fair value of financial instruments are as follows:

• (a) Level 1: quoted prices (unadjusted) in active markets for identifiable assets or liabilities.

• (b) Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices).

• (c) Level 3: inputs for the assets or liability that are not based on observable market data.

For any transfer within the fair value hierarchy, the impact of the transfer is recognized on the reporting date. Please refer to note 6(v), financial instruments, for assumptions used in measuring fair value.

(6) Explanation of significant accounts:

• (a) Cash and Cash Equivalents

Cash and Cash Equivalents
Cash on hand Cash in banks Time deposits Cash and cash equivalents	December 31, 2020 $ 89 3,192,976 570,397 $ 3,763,462	December 31, 2019
		245 2,398,714 -
		2,398,959

Please refer to note 6(v) for the interest rate risk and sensitivity analysis of the financial assets and liabilities of the Company.

(Continued)

28

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

• (b) Financial assets at fair value through profit or loss

December 31, 2020 Financial assets designated as at fair value through profit or loss： Funds $ 3,888,883 Remeasurement at fair value recognized in profit or loss is disclosed in note 6(u).	December 31, 2019
	4,044,356

• (c) Financial assets at fair value through other comprehensive income

Financial assets at fair value through other comprehensive income - current

December 31, 2020 Equity instruments at fair value through other comprehensive income : Stocks $ 40,320,070 Financial assets at fair value through other comprehensive income- non-current December 31, 2020 Equity instruments at fair value through other comprehensive income： Stocks $ 18,338,611	December 31, 2019
	41,715,821
	December 31, 2019
	10,843,196

• (i) Equity investments at fair value through other comprehensive income

The Company designated the investments shown above as equity instruments at fair value through other comprehensive income because these equity instruments represent those investments that the Company intends to hold for long-term for strategic purposes.

On September 2, 2020, the Company acquires 8.6% of the shares of Nan YA Photonics Incorporarion, with a fair value of $169,815, recognized under investments accounted for using equity method, resulting in its shareholding ratio to increase to 23.02. Upon the disposal of the investment, the cumulative losses of $78,459 was reclassified from other equity interest to retained earnings.

There were no disposals of strategic investments and transfers of any cumulative gain or loss within equity relating to these investments as of December 31, 2019.

• (ii) For credit risk and market risk; please refer to note 6(v).

• (iii) The financial assets at fair value through other comprehensive income of the Company had been pledged as collateral; please refer to note 8.

(Continued)

29

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(d) Notes receivable, accounts receivable and other receivables

Notes receivable Accounts receivable Overdue receivables Allowance for doubtful receivables	December 31, 2020 $ 2,020,303 17,871,627 20,175 (86,136) $ 19,825,969	December 31, 2019 2,051,902 16,096,019 4,555 (92,158) 18,060,318

The Company applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables on December 31, 2020 and 2019. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward looking information, including macroeconomic and relevant industry information. The loss allowance provision as of December 31, 2020 amounted to $86,136 and $92,158, respectively.The expected loss rate on December 31, 2020, is 0% for current, 18.97% for 1 to 90 days past due, 31.59% for 90 to 180 days past due, 53.67% for 180 to 360 days past due, and 100% for more than 360 days past due. The expected loss rate less than 1% on December 31, 2019.

The Company applies the expected credit losses to analysis of notes and accounts receivable as of December 31, 2020 and 2019, as follows:

Past due 1 to 90 days Past due 90 to 180 days Past due 180 to 360 days Past due over 360 days	December 31, 2020 $ 11,568 12,457 87,982 32,787 $ 144,794	December 31, 2019
		35,370 12,070 2,965 7,621
		58,026

The movement in the allowance for notes and accounts receivable were as follows:

Balance at January 1, 2020 and 2019 Impairment losses reversed Balance at December 31, 2020 and 2019	For the years ended December 31	For the years ended December 31
	2020 $ 92,158 (6,022) $ 86,136	2019
		92,158 -
		92,158

As of December 31, 2020 and 2019, notes and trade receivable which were overdue or under legal proceedings amounted to $20,175 and $4,555, respectively. Such receivables were reclassified to overdue receivables under other assets and provided with a full impairment loss provision.

(Continued)

30

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

The Company signed without-recourse factoring and financing contracts with financial institutions. According to these contracts, the net accounts receivable that have matured but are still uncollected will be paid by the financial institutions, except for those affected by trade disputes. As of December 31, 2020 and 2019, the outstanding accounts receivable factoring transactions between the Company and the financial institutions were as follows:

EXPAFOL S.L. Gold Circuit Electronics, Ltd Gold Circuit Electronics, Ltd	December 31, 2020	December 31, 2020	December 31, 2020
	Purchaser Factoring Balance Factoring Line Advanced Amount HSBC Bank $ 5,300 USD 500 - E. Sun Bank $ 41,500 100,000 - December 31, 2019		Advanced Amount -	Range of Interest Rate Guarantee project - None - None
			-
	Purchaser Factoring Balance E. Sun Bank $ 69,693	Factoring Line 100,000	Advanced Amount -	Range of Interest Rate Guarantee project - None

• (e) Other receivables

Other accounts receivable—other Other accounts receivable—loans to associates Less: Loss allowance Total	December 31, 2020 $ 845,669 4,263,200 - $ 5,108,869	December 31, 2019
		928,677 5,640,819 -
		6,569,496

Other receivables are financial assets with low credit risk, thus the Company measured the loss allowance based on 12-month expected credit losses.

(f) Inventories

As of December 31, 2020 and 2019, the components of inventories were as follows:

Finished goods Work in process Machinery and accessories in process Raw materials Supplies Consigned-out raw materials Consigned-out finished goods Goods in transit Inventories, net	December 31, 2020 $ 4,543,556 4,435,162 8,084,118 4,946,381 781 149,891 6,564 113,376 $ 22,279,829	December 31, 2019 6,183,288 5,005,165 4,788,355 5,141,749 807 174,917 13,943 478,996 21,787,220

(Continued)

31

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

The details of the cost of sales were as follows:

Inventory that has been sold Reversal of inventory write-downs Unallocated production overheads	2020 $ 119,947,863 (66,306) 3,138,807 $ 123,020,364	2019
		137,443,958 (227,666) 3,679,605
		140,895,897

As of December 31, 2020 and 2019, the Company did not provide any inventories as collateral for its loans.

• (g) Investments accounted for using equity method

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

Subsidiaries Associates	December 31, 2020 $ 173,281,642 156,846,378 $ 330,128,020	December 31, 2019 173,906,675 160,321,830 334,228,505

(i) Subsidiaries

For the years ended December 31, 2020 and 2019, the Company’s share of net income in its subsidiaries was as follows:

For the years ended December 31, 2020 and 2019, the Co subsidiaries was as follows:	mpany’s share of net income in it	mpany’s share of net income in it
The Company’s share of net income in its subsidiaries	For the years ended December 31
	2020 $ 11,247,467	2019
		6,356,723

In July and September, 2020, the Company participated in the capital increase by cash of its subsidiary, Nan Ya Plastics (Hong Kong) Co., Ltd., with the total investments amounting to USD 7,000 thousand (equivalent to $206,829) and USD 23,500 thousand (equivalent to $685,542), respectively.

Nan Ya International (Cayman) Limited, a subsidiary which was originally owned by the Company, was liquidated in November 2020, and 11.43% of the total outstanding voting shares of Formosa Ha Tinh (Cayman) Ltd., recognized as non-current financial assets at fair value through other comprehensive income, had been transferred to the Company.

In April and October, 2019, the Company participated in the capital increase by cash of its subsidiary, Nan Ya Plastics (Hong Kong) Co., Ltd., with the total investments amounting to USD77,000 thousand (equivalent to $2,378,838) and USD63,000 thousand (equivalent to $1,929,753), respectively.

Please refer to the consolidate financial statements for the year ended December 31, 2020 for further related information.

(Continued)

32

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(ii) Associates

For the years ended December 31, 2020 and 2019, the Company’s share of net income (loss) of associates were as follows:

For the years ended December 31, 2020 and 2019, the Com associates were as follows:	pany’s share of net income (loss) o	pany’s share of net income (loss) o
The Company’s share of net income of associates	For the years ended December 31 2020 2019 $ 5,934,843 11,964,784
	2020 $ 5,934,843
		11,964,784

• 1) Aforementioned information of associates was derived from financial statements audited by auditors.

• 2) The unrealized translation gain or loss arising from the investment in foreign entities, which was determined on exchange rates as of December 31, 2020 and 2019, were recognized in comprehensive income.

• 3) The unrealized sales profits from downstream transactions with investees under the equity method are treated as deductions from gross income. The realized sales profits from downstream sales are added to gross income. Details of these transactions are disclosed in note 7.

• 4) In January, March , June and December 2020, the Company participated in the cash capital increase of FG Inc. and Formosa Plastics Construction Corporation, with the total investments amounting to USD8,200 thousand (equivalent to $245,909) and $500,000, respectively. Also, in September 2020, The Company purchased the shares of Nan YA Photonics Incorporation at an amount of $101,252.

• 5) Formosa Synthetic Rubber Corporation Limited, an associate originally owned by the Company, was liquidated in September 2020, and 0.8% of the total outstanding voting shares of Formosa Synthetic Rubber (Hong Kong) Corporation Limited, accounted for using equity method, had been transferred to the Company, resulting in the accumulated other comprehensive income of $(44,168) to be reclassified from other equity interest to retained earnings.

• 6) Yi Jih Development Corporation, an associate originally owned by the Company, carried out a capital reduction on December 31, 2020, resulting in a refund of $44,665, recognized in other receivables. However, the shareholding ratio remained unchanged after the above transaction.

• 7) In March, August and December, 2019, the Company participated in the capital increase by cash of FG Inc., Formosa Resources Corporation and Formosa Synthetic Rubber Corporation, with the total investment amounting to USD7,500 thousand (equivalent to $231,570), $1,570,000 and $46,000, respectively.

(Continued)

33

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

• 8) The Company’ s financial information for investments accounted for using the equity method that are individually insignificant were as follows:

The carrying value of associates that were not individually material Attributable to the Company: Net Income Other comprehensive income Total comprehensive income	December 31, 2020 December 31, 2019 $ 156,846,378 160,321,830 For the years ended December 31 2020 2019 $ 5,934,843 11,964,784 (2,473,208) (1,741,168) $ 3,461,635 10,223,616	December 31, 2020 December 31, 2019 $ 156,846,378 160,321,830 For the years ended December 31 2020 2019 $ 5,934,843 11,964,784 (2,473,208) (1,741,168) $ 3,461,635 10,223,616
		11,964,784 (1,741,168) 10,223,616

(iii) Collateral

As of December 31, 2020 and 2019, the Company did not provide any investment accounted for using equity method as collaterals to any financial institutions or court for its loans.

(h) Property, Plant and Equipment

The cost, depreciation, and impairment of property, plant and equipment of the Company for the years ended December 31, 2020 and 2019 were as follows:

Cost or deemed cost: Balance on January 1, 2020 Additions Disposals Reclassification Balance on December 31, 2020 Balance on January 1, 2019 Additions Disposals Reclassification Balance on December 31, 2019 Depreciation and impairment loss: Balance on January 1, 2020 Depreciation for the period Disposals Reclassification Balance on December 31, 2020 Balance on January 1, 2019 Depreciation for the period Disposals Reclassification Balance on December 31, 2019	Land $ 13,337,724 - (463) (1,075) $ 13,336,186 $ 13,337,724 - - - $ 13,337,724 $ - - - - $ - $ - - - - $ -	Building and construction 30,595,253 - - 76,998 30,672,251 30,485,242 - - 110,011 30,595,253 19,519,624 794,217 - - 20,313,841 18,730,805 788,819 - - 19,519,624	Machinery equipment 172,841,792 - (2,204,258) 5,785,401 176,422,935 167,019,428 - (728,957) 6,551,321 172,841,792 143,744,582 4,752,676 (2,195,074) (2,453) 146,299,731 139,613,668 4,856,548 (725,759) 125 143,744,582	Transportation equipment 1,022,434 - (20,597) 26,743 1,028,580 1,021,680 - (32,137) 32,891 1,022,434 930,538 23,750 (20,597) - 933,691 941,893 20,782 (32,137) - 930,538	Other facilities 4,139,769 - (184,993) 338,967 4,293,743 3,759,966 - (178,250) 558,053 4,139,769 2,802,313 293,028 (184,808) 208 2,910,741 2,716,908 263,582 (178,043) (134) 2,802,313	Construction in progress 7,886,115 6,339,324 - (2,370,942) 11,854,497 5,671,977 4,842,444 - (2,628,306) 7,886,115 - - - - - - - - - -	Total 229,823,087 6,339,324 (2,410,311) 3,856,092
							237,608,192
							221,296,017 4,842,444 (939,344) 4,623,970
							229,823,087
							166,997,057 5,863,671 (2,400,479) (2,245)
							170,458,004
							162,003,274 5,929,731 (935,939) (9)
							166,997,057

(Continued)

34

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

Carrying amounts: Balance on December 31, 2020 Balance on December 31, 2019	Land $ 13,336,186 $ 13,337,724	Building and construction 10,358,410 11,075,629	Machinery equipment 30,123,204 29,097,210	Transportation equipment 94,889 91,896	Other facilities 1,383,002 1,337,456	Construction in progress 11,854,497 7,886,115	Total 67,150,188
							62,826,030

• (i) Please refer to note 8 for the property, plant and equipment pledged to secure bank loans as of December 31, 2020 and 2019.

• (ii) For the years ended December 31, 2020 and 2019, the capitalized interest on borrowings for the purchase of the property, plant and equipment of the Company amounted to $95,664 and $63,061, respectively. The capitalized interest rate ranged from 1.215%~1.3170% and 1.303%~1.410% for the years ended December 31, 2020 and 2019, respectively.

(i) Right-of-use assets

The Company leases many assets including land and buildings. Information about leases for which the Company as a lessee is presented below:

Cost： Balance at January 1, 2020 Acquisitions Disposal Balance at December 31, 2020 Balance on January 1, 2019 Acquisitions Disposal Balance on December 31, 2019 Accumulated depreciation and impairment losses: Balance at January 1, 2020 Depreciation for the period Disposal Balance at December 31, 2020 Balance on January 1, 2019 Depreciation for the period Disposal Balance on December 31, 2019 Carrying amount: Balance at December 31, 2020 Balance at December 31, 2019	Land $ 7,354 2,539 (818) $ 9,075 $ 5,356 2,270 (272) $ 7,354 $ 1,383 1,548 (818) $ 2,113 $ - 1,655 (272) $ 1,383 $ 6,962 $ 5,971	Building and construction 179,952 174,765 (108,908) 245,809 108,909 71,043 - 179,952 58,049 87,119 (108,908) 36,260 - 58,049 - 58,049 209,549 121,903	Total 187,306 177,304 (109,726) 254,884 114,265 73,313 (272) 187,306 59,432 88,667 (109,726) 38,373 - 59,704 (272) 59,432 216,511 127,874

(Continued)

35

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

• (j) Short-term notes and bills payable

Short-term notes and bills payable Discount on short-term notes and bills payable Total Interest rate Short-term borrowings Unsecured short-term borrowings Unused Short-term credit line Interest rate	December 31, 2020 $ 18,300,000 (3,421) $ 18,296,579 0.225%~0.29% December 31, 2020 $ 30,740,000 $ 106,111,620 0.61%~0.88%	December 31, 2019 15,400,000 (7,205) 15,392,795 0.532%~0.695% December 31, 2019 22,443,300 114,408,320 0.67%~0.98%

• (k) Short-term borrowings

The Company did not provide any assets as collaterals for its short-term borrowings.

• (l) Long-term debts

Long-term debts consisted of the following:

Unsecured long-term debts Less : current portion Total Unused Long-term credit line Secured long-term debts Unsecured long-term debts Long-term notes payable Less : current portion Total Unused Long-term credit line		December 31, 2020 Interest rate Expiration Amount 0.7866%~0.9449% 2021~2023 $ 4,300,000 (500,000) $ 3,800,000 $ 8,950,000 December 31, 2019 Interest rate Expiration Amount 0.9900%~1.6316% 2020~2021 $ 4,000,000 0.9456%~1.0920% 2020~2022 4,300,000 0.57%~0.842% 2020 5,096,417 (3,333,333) $ 10,063,084 $ 8,950,000
	Currency	Interest rate
	TWD TWD
	Currency	Interest rate
	TWD TWD TWD TWD	0.9900%~1.6316% 0.9456%~1.0920% 0.57%~0.842%

• (i) Please refer to note 6(v) for information on the Company’s exposure to liquidity risk, and risk of changes in interest rates and liquidation risk.

• (ii) Pledged assets for bank loans

For the collateral for long-term borrowings, please refer to note 8.

(Continued)

36

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(m) Bonds payable

Domestic unsecured nonconvertible corporate bonds Costs of issuing bonds Current portion Total	December 31, 2020 $ 69,400,000 (71,093) (5,747,142) $ 63,581,765	December 31, 2019 64,050,000 (71,339) (4,647,875) 59,330,786

The terms of domestic corporate bonds as of December 31, 2020 were as follows:

Issued amount Balance, end of year Current portion Issuance date Issuance period Coupon rate Interest payment date Repayment method	The first domestic unsecured nonconvertible corporate bond in 2013	The third domestic unsecured nonconvertible corporate bond in 2013	The first domestic unsecured nonconvertible corporate bond in 2014	The second domestic unsecured nonconvertible corporate bond in 2014	The first domestic unsecured nonconvertible corporate bond in 2016
	TWD6,000,000 3,599,008 - February 25, 2013 7 years and 10 years 1.36% and 1.50% February 25 Payable in 2 equal installments for each coupon rate in 2019~2020 and 2022~2023, respectively	TWD10,400,000 10,391,082 - December 18, 2013 10 years and 12 years 1.98% and 2.08% December 18 Payable in 2 equal installments for each coupon rate in 2022~2023 and 2024~2025, respectively	TWD10,000,000 9,985,677 - June 24, 2014 14 years and 15 years 2.04% June 24 Payable in 2 equal installments for each coupon rate in 2028 and 2029.	TWD5,000,000 1,499,108 - November 11, 2014 5 years and 10 years 1.45% and 1.93% November 11 Payable in 2 equal installments for each coupon rate in 2018~2019 and 2023~2024, respectively	TWD5,000,000 2,499,000 2,499,000 August 16, 2016 5 years 0.68% August 16 Payable in 2 equal installments for each coupon rate in 2020 and 2021.

Issued amount Balance, end of year Current portion Issuance date Issuance period Coupon rate Interest payment date Repayment method	The first domestic unsecured nonconvertible corporate bond in 2017	The first domestic unsecured nonconvertible corporate bond in 2018	The first domestic unsecured nonconvertible corporate bond in 2019	The second domestic unsecured nonconvertible corporate bond in 2019	The first domestic unsecured nonconvertible corporate bond in 2020
	TWD9,500,000 9,494,569 3,248,142 July 10, 2017 5 years and 7 years 1.03% and 1.25% July 10 Payable in 2 equal installments for each coupon rate in 2021~2022 and 2023~2024, respectively.	TWD10,500,000 10,489,813 - September 6, 2018 5 years, 7 years and 10 years 0.83%%, 0.91% and 1.07% September 6 Payable in 2 equal installments for each coupon rate in 2022~2023, 2024~2025, and 2027~2028, respectively.	TWD6,300,000 6,292,220 - June 17, 2019 5 years, 7 years and 10 years 0.74% , 0.82% and 0.91% June 17 Payable in 2 equal installments for each coupon rate in 2023~2024, 2025~2026, and 2028~2029, respectively.	TWD5,100,000 5,093,326 - October 15, 2019 5 years, 7 years and 10 years 0.71%, 0.75% and 0.84% October 15 Payable in 2 equal installments for each coupon rate in 2023~2024, 2025~2026, and 2028~2029, respectively.	TWD10,000,000 9,985,104 - September 24, 2020 5 years, 7 years and 10 years 0.49%, 0.58% and 0.62% September 24 Payable in 2 equal installments for each coupon rate in 2024~2025, 2026~2027, and 2029~2030, respectively.

(Continued)

37

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(n) Lease liabilities

The carrying values of lease liabilities were as follows:

The carrying values of lease liabilities were as follows:
Current Non-current	December 31, 2020 $ 62,584 $ 155,369	December 31, 2019
		59,288
		69,457

For information on the maturity analysis, please refer to note 6(v).

The amounts recognized in profit or loss were as follows:

Interest on lease liabilities Expenses relating to shortterm leases	For the years ended December 31 2020 2019 $ 2,604 2,248 $ 11,788 12,790	For the years ended December 31 2020 2019 $ 2,604 2,248 $ 11,788 12,790
		2019
		2,248
		12,790

The amounts recognized in the statement of cash flows for the Company was as follows:

Total cash outflow for leases	For the years ended December 31	For the years ended December 31
	2020 $ 102,488	2019
		73,871

(i) Real estate leases

The Company leases land and buildings for its office space and plant. The leases of land typically run for a period of 1 to 17 years, of office space for 2 to 20 years, and of plant for 2 year. Some leases include an option to renew the lease for an additional period of the same duration after the end of the contract term.

Some leases require the Company to make payments that relate to the property taxes levied on the lessor and insurance payments made by the lessor; these amounts are generally determined annually.

The Company expects the relative proportions of fixed and variable lease payments to remain broadly consistent in future years.

(ii) Other leases

The Company leases buildings with contract terms of one year. These leases are short-term items. The Company has elected not to recognize right-of-use assets and lease liabilities for these leases.

(Continued)

38

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(o) Employee Benefits

(i) Defined benefit plans

Reconciliation of defined benefit obligation at present value and plan asset at fair value were as follows:

Present value of defined benefit obligation Fair value of plan assets Net defined benefit liabilities	December 31, 2020 $ 25,682,996 (7,055,612) $ 18,627,384	December 31, 2019 27,140,150 (7,716,018) 19,424,132

The Company makes defined benefit plan contributions to the pension fund account with Bank of Taiwan that provides pensions for its employees upon retirement. Plans (covered by the Labor Standards Law) entitle a retired employee to receive retirement benefits based on years of service and average monthly salary for the six months prior to retirement.

1) Composition of plan assets

The Company allocates pension funds in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund, and such funds are managed by the Bureau of Labor Funds, Ministry of Labor. With regard to the utilization of the funds, minimum earnings shall be no less than the earnings attainable from two-year time deposits with interest rates offered by local banks.

The Company’ s Bank of Taiwan labor pension reserve account balance amounted to $7,087,718 as of December 31, 2020. For information on the utilization of the labor pension fund assets, including the asset allocation and yield of the fund, please refer to the website of the Bureau of Labor Funds, Ministry of Labor.

2) Movements in the present value of the defined benefit obligation

The movements in the present value of the defined benefit obligation were as follows:

Balance, beginning of year Current service cost and interest expense Remeasurements of the net defined benefit liabilities: Experience adjustments Benefits paid from plan assets Increase from transfer of related party employees Balance, end of year	For the years ended December 31 2020 2019 $ 27,140,150 27,760,041 556,428 658,029 (175,306) 297,227 (1,863,428) (1,583,581) 25,152 8,434 $ 25,682,996 27,140,150
	2020 $ 27,140,150 556,428 (175,306) (1,863,428) 25,152 $ 25,682,996

(Continued)

39

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

• 3) Movements in the fair value of the plan assets

The movements in the fair value of the plan assets were as follows:

Balance, beginning of year Interest income Remeasurements of the net defined benefit liabilities: Return on plan assets (except for interest income) Contributions from employer Benefits paid Balance, end of year	For the years ended December 31 2020 2019 $ 7,716,018 8,163,421 72,580 97,717 333,625 331,628 284,881 293,315 (1,351,492) (1,170,063) $ 7,055,612 7,716,018	For the years ended December 31 2020 2019 $ 7,716,018 8,163,421 72,580 97,717 333,625 331,628 284,881 293,315 (1,351,492) (1,170,063) $ 7,055,612 7,716,018
	2020 $ 7,716,018 72,580 333,625 284,881 (1,351,492) $ 7,055,612
		7,716,018

• 4) Expenses recognized in profit or loss

The expenses recognized in profit or loss were as follows:

Current service cost Net interest expense of net defined benefit liabilities Operating costs Selling expenses Administrative expenses	For the years ended December 31 2020 2019 $ 291,073 317,276 192,775 243,036 $ 483,848 560,312 For the years ended December 31 2020 2019 $ 372,703 432,688 18,671 20,830 92,474 106,794 $ 483,848 560,312	For the years ended December 31 2020 2019 $ 291,073 317,276 192,775 243,036 $ 483,848 560,312 For the years ended December 31 2020 2019 $ 372,703 432,688 18,671 20,830 92,474 106,794 $ 483,848 560,312
	2020 $ 372,703 18,671 92,474 $ 483,848
		560,312

• 5) Remeasurement of net defined benefit liability recognized in other comprehensive income

The Company's remeasurement of the net defined benefit liability recognized in other comprehensive income were as follows:

Accumulated amount at January 1 Recognized during the period Accumulated amount at December 31	For the years ended December 31 2020 2019 $ (5,426,650) (5,461,051) 508,931 34,401 $ (4,917,719) (5,426,650)	For the years ended December 31 2020 2019 $ (5,426,650) (5,461,051) 508,931 34,401 $ (4,917,719) (5,426,650)
	2020 $ (5,426,650) 508,931 $ (4,917,719)
		(5,426,650)

(Continued)

40

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

6) Actuarial assumptions

The principal actuarial assumptions at the reporting date were as follows:

Discount rate Future salary increase rate	For the years ended December 31
	December 31, 2020 December 31, 2019 % 1.00 % 1.00 % 2.85 % 2.85

The expected allocation payment to be made by the Company to the defined benefit plans for the one-year period after the reporting date is $279,854.

The weighted-average lifetime of the defined benefits plans is 8 years.

7) Sensitivity analysis

If the actuarial assumptions had changed, the impact on the present value of the defined benefit obligation as of December 31, 2020 and 2019 shall be as follows:

December 31, 2020 Discount rate( 0.25% variation) Future salary increasing rate( 1.00% variation) December 31, 2019 Discount rate( 0.25% variation) Future salary increasing rate( 1.00% variation)	Influences of defined benefit obligations Increase Decrease $ (351,671) 363,992 1,562,844 (1,394,240) $ (418,103) 433,712 1,859,641 (1,643,891)

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions remain constant, would have affected the defined benefit obligation by the amounts shown above. The method used in the sensitivity analysis is consistent with the calculation of pension liabilities in the balance sheets.

There is no change in the method and assumptions used in the preparation of sensitivity analysis for 2020 and 2019.

(ii) Defined contribution plan

The Company allocates 6% of each employee’s monthly wages to the labor pension personal account at the Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. Under these defined contribution plans, the Company allocates a fixed amount to the Bureau of Labor Insurance without additional legal or constructive obligation.

The pension costs incurred from the contributions to the Bureau of the Labour Insurance amounted to $303,050 and $301,776 for the years ended December 31, 2020 and 2019, respectively.

(Continued)

41

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(p) Income taxes

(i) Income tax expense

The components of income tax expense for 2020 and 2019 were as follows:

Current income tax expense Current period Adjustment for prior periods Deferred tax expense Origination and reversal of temporary differences Total income tax expense	For the years ended December 31 2020 2019 $ 1,497,252 976,213 (503,404) (58,659) 926,278 569,780 $ 1,920,126 1,487,334
	2020 $ 1,497,252 (503,404) 926,278 $ 1,920,126

The amount of income tax recognized in other comprehensive income for 2020 and 2019 were as follows:

Items that will not be reclassified subsequently to profit or loss: Remeasurement from defined benefit plans	For the years ended December 31	For the years ended December 31
	2020 $ 101,786	2019
		6,880

Reconciliation of income tax and profit before tax for 2020 and 2019 were as follows:

		For the years ended	December 31
		2020	2019
Profit excluding income tax	$	27,629,175	24,563,457
Income tax using the Company's domestic tax rate	$	5,525,835	4,912,691
Effect of tax rates in foreign jurisdiction		204,075	162,493
Tax effect on tax-exempt dividend income		(440,653)	(642,419)
Tax-exempt income		31,095	(5,421)
Income tax expense arising from investment income in associates
and joint ventures		13,953	25,374
Tax effect on investment income recognized under equity method		(2,974,711)	(3,340,943)
Differences between estimated and actual income tax and income
tax adjustments on prior years		(503,404)	(58,659)
Undistributed earnings additional tax		-	391,303
Other income tax adjustments		63,936	42,915
Income tax expense	$	1,920,126	1,487,334

(Continued)

42

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(ii) Deferred tax assets and liabilities

Recognized deferred tax assets and liabilities

Movement in the amount of deferred tax assets and liabilities for 2020 and 2019 were as follows:

Deferred tax liabilities:

Balance on January 1, 2020 Recognized in profit or loss Balance on December 31, 2020 Balance on January 1, 2019 Recognized in profit or loss Balance on December 31, 2019	Foreign investment income recognized under equity method $ 11,480,294 679,779 $ 12,160,073 $ 10,984,786 495,508 $ 11,480,294	Others - 129,943 129,943 - - -	Total
			11,480,294 809,722
			12,290,016
			10,984,786 495,508
			11,480,294

Deferred tax assets:

Defined benefit plans Balance on January 1, 2020 $ 3,884,827 Recognized in profit or loss (57,564) Recognized in other comprehensive income (101,786) Balance on December 31, 2020 $ 3,725,477 Balance on January 1, 2019 $ 3,919,324 Recognized in profit or loss (27,617) Recognized in other comprehensive income (6,880) Balance on December 31, 2019 $ 3,884,827	Idle capacity 78,262 (43,917) - 34,345 78,039 223 - 78,262	Others 16,495 (15,075) - 1,420 63,373 (46,878) - 16,495	Total
			3,979,584 (116,556) (101,786)
			3,761,242
			4,060,736 (74,272) (6,880)
			3,979,584

• (iii) Assessment of tax

The Company’s tax returns for the year through 2018 were assessed by the ROC authorities.

(Continued)

43

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(q) Capital and other equity

As of December 31, 2020 and 2019, the Company’s government registered total authorized capital and issued capital stock both amounted to $79,308,216, divided into 7,930,822 thousand shares of stock with $10 par value per share.

(i) Capital surplus

The components of capital surplus as of December 31, 2020 and 2019 were as follows:

The components of capital surplus as of December 31, 202	0 and 2019 were as	follows:
Paid-in capital from conversion of corporate bond to common stock in excess of par value Gains on acquisition of Taiwan Plasticizer Corporation Other Total	December 31, 2020 $ 8,997,136 74,474 17,452,321 $ 26,523,931	December 31, 2019
		8,997,136 74,474 17,546,224
		26,617,834

According to the R.O.C. Company Act, capital surplus can only be used to offset a deficit, and only the realized capital surplus can be used to increase the common stock or be distributed as cash dividends. The aforementioned realized capital surplus includes capital surplus resulting from premium on issuance of capital stock and earnings from donated assets received. According to the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, capital increases by transferring capital surplus in excess of par value should not exceed 10% of the total common stock outstanding.

(ii) Retained earnings

1) Legal reserve

If the Company incurs no loss, it may, pursuant to a resolution by a shareholders’ meeting, distribute its legal reserve by issuing new shares or by distributing cash, and only the portion of legal reserve which exceeds 25% of capital may be distributed.

2) Special reserve

As the Company opted to avail of the exemptions allowed under IFRS 1“ First-time Adoption of International Financial Reporting Standards” during the Company’s firsttime adoption of the IFRSs as endorsed by the FSC, unrealized revaluation increments and cumulative translation adjustments (gains) of $6,277,052, which were previously recognized in shareholders’ equity were reclassified to retained earnings. In accordance with Regulatory Permit No.1010012865 as issued by the FSC on April 6, 2012, a special reserve is appropriated from retained earnings for aforementioned reclassification. In addition, during the use, disposal or reclassifications of relevant assets, these special reserves can be reverted to distributable earnings proportionately. As the amount appropriated exceeds the increase in retained earnings arising from the adoption of IFRSs, only $6,243,060 is appropriated in compliance to the IFRSs as endorsed by the FSC. The balance of special reserve amounted to $6,126,609 and $6,128,451 as of December 31, 2020 and 2019, respectively.

(Continued)

44

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

Pursuant to the Regulatory Permit mentioned above, the Company is also required to set aside an additional special reserve from current-period earnings and undistributed priorperiod earnings during earnings distribution. The amount to be set aside should be equal to the difference between net current-period reduction of the other stockholders’ equity and the amount of above-mentioned special reserve. The accumulated prior-period reduction of the other stockholders’ equity shall be set aside as an additional special reserve, which does not qualify for earnings distribution, from undistributed prior-period earnings. Amounts of subsequent reversals pertaining to the net reduction of other shareholders’ equity shall qualify for additional distributions.

3) Earnings distribution

According to the rules of the Company’s articles, the Company’s annual net earnings, after providing for income tax and covering the losses of previous years, is first set aside for legal reserve at the rate of 10% thereof. In addition, a special reserve in accordance with applicable laws and regulations shall also be set aside. The remainder plus the undistributed earnings of the previous years are distributed or left undistributed for business purposes according to the resolution of the stockholders’ dividend distribution plan, which are initially proposed by the Board of Directors and adopted by the shareholders in the Annual Stockholders’ Meeting.

The Company belongs to a mature industry, in which the annual profit is stable. It adopts three kinds of dividend distribution policies, which are cash dividends, capitalization of earnings, and capital surplus. The net earnings after deducting the legal reserve and special reserve may first be distributed by way of cash dividends which shall be equal to at least fifty percent of the Company’ s total dividend distribution every year. The capitalization of earnings and capital surplus shall not exceed fifty percent of the total dividends.

Based on the resolution approved by stockholders during meetings held on June 12, 2020 and June 12, 2019, the distribution of the Company's earnings in 2019 and 2018, respectively, were as follows:

and June 12, 2019, the distribution of the Compa espectively, were as follows:	ny's earnings in 2	019 and 2018
Dividends per share: Cash dividends	2019 $ 2.20	2018
		5.00

The aforementioned earnings distributions did not differ from those proposed by the board of directors and those estimated and accrued amount in the financial statements. The related information can be obtained from the Market Observation Post System website.

(Continued)

45

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(iii) Other equity accounts (net of tax)

Balance, January 1, 2020 Exchange differences on associates and subsidiaries accounted for using equity method Unrealized gains (losses) from financial assets at fair value through other comprehensive income Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income, associates and subsidiaries accounted for using equity method Share of cash flow hedge of associates and subsidiaries under equity method Disposal of equity instrument at fair value through other comprehensive income Balance, December 31, 2020 Balance, January 1, 2019 Exchange differences on associates and subsidiaries accounted for using equity method Unrealized gains (losses) from financial assets at fair value through other comprehensive income Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income, associates and subsidiaries accounted for using equity method Share of cash flow hedge of associates and subsidiaries under equity method Balance, December 31, 2019	Exchange differences on translation of foreign financial statements $ (11,571,431) (3,053,963) - - - - $ (14,625,394) Exchange differences on translation of foreign financial statements $ (5,705,296) (5,866,135) - - - $ (11,571,431)	Unrealized gains (losses) on financial assets at fair value through other comprehensive income 46,111,488 - (11,455,198) 5,969,733 - 122,627 40,748,650 Unrealized gains (losses) on financial assets at fair value through other comprehensive income 54,624,319 - (3,101,808) (5,411,023) - 46,111,488	Gains (losses) on hedging instruments 631 - - - 30,107 - 30,738 Gains (losses) on hedging instruments (15,181) - - - 15,812 631	Total 34,540,688 (3,053,963) (11,455,198) 5,969,733 30,107 122,627
				26,153,994
				Total 48,903,842 (5,866,135) (3,101,808) (5,411,023) 15,812
				34,540,688

(Continued)

46

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(r) Earnings Per Share

The basic earnings per share for the years ended December 31, 2020 and 2019 were calculated on profit attributable to ordinary shareholders of the Company of $25,709,049 and $23,076,123, respectively, and weighted average number of outstanding shares of stock were 7,930,822 thousand ordinary shares, calculated as follows:

• (i) Profit attributable to ordinary shareholders

		For the years ended	December 31
		2020	2019
Profit attributable to ordinary shareholders	$	25,709,049	23,076,123
Weighted average number of outstanding ordinary shares
		For the years ended	December 31
		2020	2019
Shares outstanding as of January 1 is the same as weighted average
number of common stock outstanding as of December 31		$ 7,930,822	7,930,822

(ii) Weighted average number of outstanding ordinary shares

• (s) Revenue from contracts with customers

Primary geographical markets Taiwan China Others Main Products PVC sheet Rigid sheet Pipes Phthalate Plasticizers BPA EG CCL Epoxy Polyester Staple Fiber PET Resin DTY Machinery and Switchgear Others		For	the year ended December 31, 2020	the year ended December 31, 2020	the year ended December 31, 2020
	Plastics industry $ 18,209,820 1,269,214 6,741,384 $ 26,220,418 $ 3,356,941 3,297,306 4,914,436 - - - - - - - - - 14,651,734 $ 26,220,417	Chemical industry 17,800,928 25,219,769 11,613,307 54,634,004 - - - 6,123,338 12,674,918 20,766,206 - - - - - - 15,069,541 54,634,003	Electronic industry 12,910,633 14,376,952 10,227,170 37,514,755 - - - - - - 11,952,924 13,291,416 - - - - 12,270,415 37,514,755	Polyester industry 10,602,676 1,697,725 7,203,142 19,503,543 - - - - - - - - 3,138,948 635,652 7,168,419 - 8,560,525 19,503,544	Other industries 4,774,574 460,296 297,931 5,532,801 - - - - - - - - - - - 4,788,357 744,445 5,532,802	Total 64,298,631 43,023,956 36,082,934
						143,405,521
						3,356,941 3,297,306 4,914,436 6,123,338 12,674,918 20,766,206 11,952,924 13,291,416 3,138,948 635,652 7,168,419 4,788,357 51,296,660
						143,405,521

(Continued)

47

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

Primary geographical markets Taiwan China Others Main Products PVC sheet Rigid sheet Pipes Phthalate Plasticizers BPA EG CCL Epoxy Polyester Staple Fiber PET Resin DTY Machinery and Switchgear Others		For	the year ended December 31, 2019	the year ended December 31, 2019	the year ended December 31, 2019
	Plastics industry $ 17,453,447 1,375,158 7,511,999 $ 26,340,604 $ 3,540,253 3,571,701 4,328,463 - - - - - - - - - 14,900,186 $ 26,340,603	Chemical industry 18,775,371 27,116,134 13,172,268 59,063,773 - - - 8,033,180 10,538,314 25,064,611 - - - - - - 15,427,668 59,063,773	Electronic industry 10,467,018 13,266,141 13,702,510 37,435,669 - - - - - - 12,369,984 13,205,639 - - - - 11,860,046 37,435,669	Polyester industry 13,532,410 2,311,084 10,186,750 26,030,244 - - - - - - - - 4,226,708 5,415,426 10,653,668 - 5,734,443 26,030,245	Other industries 4,308,875 801,347 819,276 5,929,498 - - - - - - - - - - - 5,357,299 572,199 5,929,498	Total 64,537,121 44,869,864 45,392,803
						154,799,788
						3,540,253 3,571,701 4,328,463 8,033,180 10,538,314 25,064,611 12,369,984 13,205,639 4,226,708 5,415,426 10,653,668 5,357,299 48,494,542
						154,799,788

• (t) Employee compensation

According to the specifications of the Company’s article, 0.05% to 0.5% of the earnings before tax and bonuses should be appropriated to employees as bonuses. However, certain amounts of the earnings should be reserved if there is an accumulated loss from the operations in the previous years in advance of the appropriation of the employee bonuses.

For the years ended December 31, 2020 and 2019, the Company estimated its employee remuneration amounted to $27,657 and $24,588, respectively, which were based on the Company's profit before tax without the employee's compensation of each period, multiplied by the percentage of remuneration to employees as specified in the Company's articles. These remunerations were expensed under operating costs or operating expenses during 2020 and 2019.

For the years ended December 31, 2019 and 2018, the remunerations to employees amounted to $24,588 and $57,879, respectively, which were paid in cash. There was no difference from the actual distribution. The information is available on the Market Observation Post System website.

• (u) Non-operating income and expenses

• (i) Interest income

The details of interest income were as follows:

Interest income from bank deposits Other interest income	2020 $ 23,461 64,360 $ 87,821	2019
		61,666 243,451
		305,117

(Continued)

48

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(ii) Other income

The details of other income were as follows:

The details of other income were as follows:
Dividend income Other income	2020 $ 2,203,267 1,304,983 $ 3,508,250	2019
		3,212,093 1,297,059
		4,509,152

(iii) Other gains and losses

The details of other gains and losses were as follows:

Gain on disposal of property, plant and equipment Foreign currency exchange (loss) gain (Loss) gain on financial assets at fair value through profit or loss Others	2020 $ 7,930 (791,198) (155,473) (123,489) $ (1,062,230)	2019 8,856 22,628 27,107 (143,249) (84,658)

(iv) Finance costs

The details of finance costs were as follows:

Interest expense Less: interest capitalized	2020 $ 1,356,581 (95,664) $ 1,260,917	2019 1,432,814 (63,061) 1,369,753

(v) Financial Instruments

(i) Credit Risk

1) Credit risk exposure

The Company is exposed to credit risk primarily from cash and cash equivalents, deposits, and trade receivables.

2) Concentration of credit risk

As sales are made to customers worldwide, the Company’ s exposure to credit risk concentration is expected to be low. Also, the Company mitigates its exposure by evaluating the customers’ financial situation regularly.

(Continued)

49

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(ii) Liquidity risk

The following table shows the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements.

Carrying amount December 31, 2020 Non-derivative financial liabilities Short-term notes and bills payable $ 18,296,579 Notes and accounts payable 5,473,604 Payables to related parties 6,362,707 Short-term borrowings 30,740,000 Long-term debts 4,300,000 Bonds payable 69,328,907 Other payables-related parties 3,000,000 Lease lisbility 217,953 $ 137,719,750 December 31, 2019 Non-derivative financial liabilities Short-term notes and bills payable $ 15,392,795 Notes and accounts payable 5,045,472 Payables to related parties 5,957,209 Short-term borrowings 22,443,300 Long-term debts 8,300,000 Bonds payable 63,978,661 Long-term notes payable 5,096,417 Other payables-related parties 4,000,000 Lease lisbility 128,745 $ 130,342,599	Contractual cash flows 18,303,421 5,473,604 6,362,707 30,758,787 4,354,478 73,629,785 3,000,000 229,573 142,112,355 15,407,205 5,045,472 5,957,209 22,456,331 8,415,051 68,740,741 5,185,968 4,000,000 139,028 135,347,005	Within 6 months 18,303,421 5,473,604 6,362,707 30,758,787 17,112 309,920 - 32,633 61,258,184 15,407,205 5,045,472 5,957,209 22,456,331 711,826 1,526,240 7,164 - 30,485 51,141,932	6-12 months - - - - 509,892 6,299,830 3,000,000 32,633 9,842,355 - - - - 2,698,470 3,975,235 7,164 4,000,000 30,239 10,711,108	1-2 years - - - - 1,817,618 11,584,275 - 65,266 13,467,159 - - - - 3,200,372 6,553,430 2,128,656 - 5,202 11,887,660	2-5 years - - - - 2,009,856 30,297,385 - 44,890 32,352,131 - - - - 1,804,383 31,840,153 3,042,984 - 14,521 36,702,041	Over 5 years
						- - - - - 25,138,375 - 54,151
						25,192,526
						- - - - - 24,845,683 - - 58,581
						24,904,264

It is not expected that the cash flows included in the maturity analysis to occur significantly earlier or at significantly different amounts.

(Continued)

50

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(iii) Currency risk

• 1) Exposure to foreign currency risk

The Company’s significant exposure to foreign currency were as follows:

Financial assets Monetary items USD JPY EUR CNY Non-monetary items USD HKD VND Financial liabilities Monetary items USD JPY EUR Financial assets Monetary items USD JPY EUR CNY Non-monetary items USD HKD VND Financial liabilities Monetary items USD JPY EUR	December 31, 2020	December 31, 2020
	Foreign Currency Exchange Rate TWD $ 550,104 28.5080 15,682,365 149,176 0.2724 40,636 756 34.5600 26,127 1,042 4.3691 4,553 1,993,100 28.5080 56,819,296 28,126,788 3.6549 103,001,551 6,494,031,285 0.0012 8,015,342 41,245 28.5080 1,175,812 470,410 0.2724 128,140 2,148 34.5600 74,235 December 31, 2019
	Foreign Currency $ 475,805 139,561 118 22,179 2,285,122 24,253,931 6,283,412,736 28,723 416,880 1,151	Exchange Rate TWD 30.1060 14,324,585 0.2763 38,561 33.6900 3,975 4.3160 95,713 30.1060 68,795,879 3.8597 93,612,898 0.0013 8,164,369 30.1060 864,735 0.2763 115,184 33.6900 38,777

(Continued)

51

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

2) Sensitivity analysis

The Company’ s exposure to exchange rate risk arises from the foreign currency exchange fluctuations on cash and cash equivalents, accounts receivable, other receivables, financial assets at fair value through other comprehensive income (availablefor-sale financial assets), loans and borrowings, accounts payable and other payables which are denominated in different foreign currencies. The overall effects to net income before tax for the years ended December 31, 2020 and 2019 assuming the TWD depreciated or appreciated by 1% against the USD, JPY, EUR and CNY as of December 31, 2020 and 2019 were as follows:

Appreciation in value of 1% Depreciation in value of 1%	For the years ended December 31 2020 2019 $ (143,772) (134,452) 143,772 134,452

This analysis is performed on the same basis for the two periods.

• 3) Foreign exchange gain and loss on monetary items

The Company foreign exchange gains and losses on monetary items (including realized and unrealized portions) converted to functional currency were as follow :

TWD	For the years ended December 31	For the years ended December 31
	2020 2019 foreign exchange gains and (losses) foreign exchange gains and (losses) $ (791,198) 22,628
		22,628

(iv) Interest rate analysis

The Company's financial assets and liabilities exposed to interest rates risk are described in liquidity risk

The following sensitivity analysis is based on the risk exposure to the interest rates of derivative and non-derivative financial instruments on the reporting date. For variable rate instruments, the sensitivity analysis assumes the liabilities bearing variable interest rates are outstanding for the whole year. A 1% increase or decrease in interest rate is assessed by management to be a reasonably possible change in interest rate.

An increase or decrease of 1% in interest rates mainly from loans with floating interest rates at the reporting date would have increased or decreased net income by $749 and $945 for the years ended December 31, 2020 and 2019, respectively.

(Continued)

52

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(v) Other market price risks

For the years ended December 31, 2020 and 2019, the sensitivity analyses for the changes in the securities price at the reporting date were performed using the same basis for the comprehensive income as illustrated below:

Prices of securities at the reporting date Increasing 1% Decreasing 1%	For the year ended December 31, 2020 For the year ended December 31, 2019
	Other comprehensive income after tax Other comprehensive income after tax $ 403,201 417,158 $ (403,201) (417,158)

• (vi) Fair value of financial instruments

• 1) Fair value hierarchy

The fair value of financial assets and liabilities at fair value through profit or loss and financial assets at fair value though other comprehensive income (available for sale financial assets) is measured on a recurring basis. The carrying amount and fair value of the Company’ s financial assets and liabilities, including the information on fair value hierarchy as stated below. However, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, and for equity investments that has no quoted prices in the active markets and whose fair value cannot be reliably measured, disclosure of fair value information is not required :

Financial assets at fair value through profit or loss Financial assets designated as at fair value through profit or loss Financial assets at fair value through other comprehensive income Stocks in listed companies Unquoted equity instruments Subtotal		December 31, 2020	December 31, 2020	December 31, 2020
	Carrying amount $ 3,888,883 $ 40,320,070 18,338,611 $ 58,658,681	Level 1 - 40,320,070 - 40,320,070	Fair Value
			Level 2 3,888,883 - - -	Level 3 - - 18,338,611 18,338,611	Total 3,888,883
					40,320,070 18,338,611
					58,658,681

(Continued)

53

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

Financial assets measured at amortized cost Cash and cash equivalent Notes and accounts receivable (including related parties) Other receivables due from related parties Subtotal Financial liabilities at amortized cost Short-term borrowings Short-term notes and bills payable Other payables-related parties Notes and accounts payable (including related parties) Bonds payable Long-term borrowings Lease liabilities Subtotal Financial assets at fair value through profit or loss Financial assets designated as at fair value through profit or loss Financial assets at fair value through other comprehensive income Stocks in listed companies Unquoted equity instruments Subtotal Financial assets measured at amortized cost Cash and cash equivalent Notes and accounts receivable (including related parties) Other receivables due from related parties Subtotal		December 31, 2020	December 31, 2020	December 31, 2020
	Carrying amount $ 3,763,462 19,825,969 5,108,869 $ 28,698,300 $ 30,740,000 18,296,579 3,000,000 11,836,311 69,328,907 4,300,000 217,953 $ 137,719,750	Fair Value Level 1 Level 2 Level 3 - - - - - - - - - - - - 30,740,000 - - 18,296,579 - - - - - - - - 69,328,907 - - 4,300,000 - - 217,953 - - 122,883,439 - - December 31, 2019	Fair Value
					Total - - -
					-
					30,740,000 18,296,579 - - 69,328,907 4,300,000 217,953
					122,883,439
		Level 1 - 41,715,821 - 41,715,821 - - - -	Fair Value
			Level 2 4,044,356 - - - - - - -	Level 3 - - 10,843,196 10,843,196 - - - -	Total 4,044,356
					41,715,821 10,843,196
					52,559,017
					- - -
					-

(Continued)

54

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

Financial liabilities at amortized cost Short-term borrowings Short-term notes and bills payable Other payables-related parties Notes and accounts payable (including related parties) Bonds payable Long-term borrowings Long-term notes payable Lease liabilities Subtotal		December 31, 2019	December 31, 2019	December 31, 2019
	Carrying amount $ 22,443,300 15,392,795 4,000,000 11,002,681 63,978,661 8,300,000 5,096,417 128,745 $ 130,342,599		Fair Value
		Level 1 22,443,300 15,392,795 - - 63,978,661 8,300,000 5,096,417 128,745 115,339,918	Level 2 - - - - - - - - -	Level 3 - - - - - - - - -	Total 22,443,300 15,392,795 - - 63,978,661 8,300,000 5,096,417 128,745
					115,339,918

• 2) Valuation techniques for financial instruments not measured at fair value

The Company’ s valuation techniques and assumptions used for financial instruments not measured at fair value are as follows:

• a) Financial assets measured at amortized cost (held-to-maturity financial assets)

If the quoted prices in active markets are available, the market price is established as the fair value. However, if quoted prices in active markets are not available, the estimated valuation or prices used by competitors are adopted.

• b) Financial liabilities measured at amortized cost

If there is quoted price generated by transactions, the recent transaction price and quoted price data is used as the basis for fair value measurement. However, if no quoted prices are available, the discounted cash flows are used to estimate fair values.

• 3) Valuation techniques for financial instruments measured at fair value

• a) Non-derivative financial instruments

Financial instruments traded in active markets are measured at fair value based on the quoted market prices. Quoted prices are the prices announced by the main stock exchanges and over-the-counter markets. They are the basis for recognizing the fair value of the listed and over-the-counter equity instruments. Financial instrument possesses a quoted price in the active markets if the trading prices fairly represent the frequent and orderly transactions for financial instrument, and are readily available from trade centers, security brokers, underwriters, trade unions, pricing service institutes or other related authorities. The market for the said financial instrument shall be seen as inactive should the aforementioned requirements have not been met. Large or significantly increasing gap between the purchase and the exit prices of a financial instrument, or low trade volume, are general indicators of an inactive market.

(Continued)

55

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

If the financial instrument of the Company possesses an active market, its fair value should be recognized according to different categories and characteristics as follows:

For listed and over-the-counter stocks with standard terms and are publicly traded in active markets, their fair value are calculated by the market’ s quoted prices. Other financial instruments that are not traded in active markets are measured with fair values provided by using the valuation techniques via market approach or the discounted cash flow method or other available methods.

• 4) Transfers between levels of the fair value hierarchy

There were no transfers between levels of the fair value hierarchy for the years ended December 31, 2020 and 2019.

• 5) Reconciliation of Level 3 fair values

January 1, 2020 Total gains and losses recognized: In other comprehensive income Reclassified Refund capital reduction December 31, 2020 January 1, 2019 Total gains and losses recognized: In other comprehensive income December 31, 2019	Fair value through other comprehensive income Unquoted equity instruments $ 10,843,196 (10,059,447) 17,567,362 (12,500) $ 18,338,611 $ 11,132,158 (288,962) $ 10,843,196

6) The valuation procedures for fair value measurements being categorized within Level 3 is to ensure the valuation results are reasonable by applying independent information to make results close to the current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price. According to the Company’ s accounting policy, the analysis of value changes on remeasured or reevaluated assets and liabilities at the reporting date is performed to ensure the reasonability of the evaluation results.

• 7) Quantified information on significant unobservable inputs (Level 3) used in fair value measurement

Most of the Company’s financial instruments that use Level 3 inputs involve only one significant unobservable input. Only equity investment with no-active markets involves multiple significant unobservable inputs.

(Continued)

56

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

Quantified information of significant unobservable inputs were as follows:

Inter-relationship between significant unobservable inputs Significant and fair value Item Valuation technique unobservable inputs measurement Financial assets at Market comparable Price to earnings ratio The higher the companies multiple, price to book multiple, the higher the fair value through ratio multiple, fair value other enterprise value to comprehensive operating income ratio multiple, enterprise income – unquoted value to EBITA equity instruments multiple, discount for lack of marketability Net Asset Value Not applicable Not applicable Method

• 8) Fair value measurement in Level 3 - sensitivity analysis of reasonably possible alternative assumption

The valuation models and assumptions used to measure the fair value of the financial instruments is reasonable. However, the use of different valuation models or assumptions may result in different measurements. For fair value measurements in Level 3, changing one or more of the assumptions to reflect reasonably possible alternative assumptions would have the following effects:

December 31, 2020 Financial assets at fair value through other comprehensive income – unquoted equity instruments December 31, 2019 Financial assets at fair value through other comprehensive income – unquoted equity instruments	Input	Change	Recognized in other comprehensive income	Recognized in other comprehensive income
			Favorable change $ 145,908 $ 71,266	Unfavorable change (145,908) (71,266)
	Price to earnings ratio multiple, price to book ratio multiple, enterprise value to operating income ratio multiple, enterprise value to EBITA multiple, discount for lack of marketability Price to earnings ratio multiple, price to book ratio multiple, enterprise value to operating income ratio multiple, enterprise value to EBITA multiple, discount for lack of marketability	± 1% ± 1%

(Continued)

57

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(w) Financial risk management

• (i) The Company have exposures to the following risks from its financial instruments:

• 1) Credit risk

• 2) Liquidity risk

• 3) Market risk

The following likewise discusses the Company’ s objectives, policies and processes for measuring and managing the above mentioned risks. For more disclosures about the quantitative effects of these risks exposures, please refer to the respective notes in the accompanying financial statements.

(ii) Structure of risk management

The Company’ s risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits.

The Company Audit Committee oversees how management monitors compliance with the Company’ s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.

• (iii) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations.

To maintain the credit quality of receivables, a credit risk management policy has been established. Under this policy, each customer is analyzed individually regarding customer’s financial situation, external and internal credit rating, historical trading record, and current economic condition which may affect customer’s payment ability. In addition, some methods are adopted to reduce the credit risk for specific customers, such as prepayment and insurance of accounts receivable.

The credit risk exposure on bank deposits and other financial instruments are measured and monitored by the Company’ s finance department. As the Company’ s transactions are done with the banks and other external parties with good credit standing, management is not aware of any noncompliance issues and is not expecting significant credit risk.

(iv) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as much as possible, that it will always have sufficient current funds, such as cash and cash equivalents, securities with high liquidity and sufficient credit line from banks, to meet its liabilities when due, without incurring unacceptable losses or risking damage to the Company’s reputation.

(Continued)

58

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(v) Market risk

Market risk is the risk that changes in the market, such as foreign exchange rates, interest rates and equity prices of that will affect the Company’ s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

• 1) Currency risk

The Company is exposed to currency risk is due to global transactions that are denominated in a currency other than the respective functional currency of the Company, the New Taiwan Dollars (TWD). These transactions are primarily denominated in USD. The currency risk mainly arises from future business transactions and recognized assets and liabilities. Part of the currency risks arising from purchases and sales can be offset each other to achieve automatic hedge.

When the Company has foreign currency needs, the Company uses spot exchange contracts and forward exchange contracts if the exchange rate is advantageous to the Company to manage the risk. If necessary, the Company uses derivatives operated by prestigious international banks to manage its exposure to foreign currency exchange rate fluctuation risk, which monitor the exchange rate risks and adhere to acceptable levels by the Company.

• 2) Interest rate risk

The Company’ s interest rate risk mainly arises from long-term loans with variable interest rates, which bear cash flow risks to the Company. Part of the interest rate risk can be offset by cash and cash equivalents with variable interest rates held by the Company.

The Company monitors and manages interest rate risks, using derivatives when necessary, to lower the risks to acceptable levels.

• 3) Other market price risk

The Company is exposed to fair value change risk due to financial assets at fair value through other comprehensive income (available-for-sale financial assets), which were measured at fair value.

(x) Capital management

Although business operated by the Company has reached the stage of maturity, a sufficient amount of capital is still required to support the operation of investee companies, construction and expand its production facilities and equipment.

The Company’s policy is to maintain sufficient financial resources and operating plan to meet future demands such as operating capital, capital expenditure, research and development expenditures, loan reimbursements, and dividend distributions.

(Continued)

59

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

The Company and other entities in the same industry use the debt-to-equity ratio to manage its capital. This ratio is the total net debt divided by the total capital. The net debt from the balance sheet is derived from the total liabilities less cash and cash equivalents. The total capital and equity include share capital, capital surplus, retained earnings, and other equity plus net debt. The Company’s debt-to-equity ratio at the end of the reporting period were as follows :

Total liabilities Less: cash and cash equivalents Net debt Total equity Debt-to-equity ratio at December 31	December 31, 2020 $ 181,089,323 (3,763,462) $ 177,325,861 $ 344,616,867 % 33.97	December 31, 2019 173,593,882 (2,398,959)
		171,194,923
		344,571,884
		% 33.19

(y) Movements in liabilities arising from financing activities

Balance, January 1, 2020 Changes in cash flows from financing activities Changes in non-cash Changes in foreign exchange movement Balance, December 31, 2020 Balance, January 1, 2019 Changes in cash flows from financing activities Changes in non-cash Changes in foreign exchange movement Balance, December 31, 2019		Other payables due from related parties		Short-term borrowings		Short-term notes and bills payable		Long-term notes payable		Long-term borrowings (including current portion)		Bonds payable (including current portion)		Lease liabilities (including current portion) 128,745 (88,096) 177,304 - 217,953 Lease liabilities (including current portion) 114,265 (58,833) 73,313 - 128,745	Total liabilities arising from financing activities 119,339,918 6,342,916 200,587 18
				22,443,300 8,296,682 - 18		15,392,795 2,900,000 3,784 -
				30,740,000		18,296,579		-							125,883,439
		Other payables due from related parties		Short-term borrowings		Short-term notes and bills payable		Long-term notes payable							Total liabilities arising from financing activities 106,854,250 12,402,215 83,874 (421)
															119,339,918

(7) Related-party transactions:

• (a) Parent company and ultimate controlling party

The Company is the ultimate controlling party of the Company and its subsidiaries.

• (b) Names and relationship with related parties

The followings are entities that have had transactions with related party during the periods covered in the consolidated financial statements.

Name of related party	Relationship with the Group
Nan Ya Plastics Corporation U.S.A	Subsidiaries
Nan Ya Plastics Corporation America	Subsidiaries
Formosa Plastics Group Investment Corp.	Subsidiaries

(Continued)

60

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

Name of related party Relationship with the Group Nan Ya Plastics (Hong Kong) Co., Ltd Subsidiaries Superior World Wide Trading Co., Ltd Subsidiaries Nan Ya PCB Corporation Subsidiaries Wen Fung Industrial Co., Ltd Subsidiaries Nan Chung Petrochemical Corporation Subsidiaries Nan Ya International (Cayman) Limited Subsidiaries PFG Fiber Glass Corporation Subsidiaries PFG Fiber Glass (Hong Kong) Corporation Limited Subsidiaries Nan Ya PCB (U.S.A) Corporation Subsidiaries Nan Ya PCB (Hong Kong) Corporation Subsidiaries Nan Ya PCB (Kunshan) Corporation Subsidiaries Nan Ya Plastics (Nantong) Co., Ltd Subsidiaries Nan Ya Electric (Nantong) Co., Ltd Subsidiaries China Nantong Huafeng Co., Ltd Subsidiaries Nantong Huafu Plastics Co., Ltd. Subsidiaries Nan Ya Electronic Materials (Kunshan) Co., Ltd Subsidiaries Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd Subsidiaries Nan Ya Plastics (Guangzhou) Co., Ltd Subsidiaries Nan Ya Plastics (Huizhou) Co., Ltd Subsidiaries Nan Ya Electronic Materials (Huizhou) Co., Ltd Subsidiaries Nan Ya Trading (Huizhou) Co., Ltd Subsidiaries Nan Ya Plastics (Xiamen) Co., Ltd Subsidiaries Nan Ya Plastics (Ningbo) Co., Ltd Subsidiaries Wellink Technology Corporation Subsidiaries Nan Ya Plastics Corporation Texas Subsidiaries PFG Fiber Glass (Kunshan) Co., Ltd Subsidiaries Formosa Petrochemical Corporation Associates Nanya Technology Corporation Associates Formosa Resources Corporation Associates Formosa Plastics Construction Corporation Associates Formosa Heavy Industries Corporation Associates Formosa Heavy Industries (Ningbo) Co., Ltd. Associates Formosa Heavy Industries Corp. (GZ) Ltd. Associates

(Continued)

61

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

Name of related party

Formosa Synthetic Rubber (Hong Kong) Corporation Limited Formosa Synthetic Rubber (Ningbo) Co., Ltd. Formosa Industries Corporation Formosa Group (Cayman) Limited Formosa Utility Venture, Ltd. Formosa Environmental Technology Corporation FG Inc. P.T. Indonesia Nanya Indah Plastics Co. Nan Ya Plastics (Zhengzhou) Co., Ltd. Nanya Kyowa Plastics (Nantong) Co., Ltd. Formosa Plastics Corporation Formosa Chemicals and Fiber Corporation Hwa Ya Power Corporation Formosa Taffeta Co., Ltd. Formosa Advanced Technology Corporation Formosa Ha Tinh (Cayman) Ltd. Formosa Ha Tinh Steel Corporation Formosa Ha Tinh (Cayman) Limited Taiwan Branch China Man-made Fiber Corporation Mai Liao Harbor Administration Corp. Formosa Industries (Ningbo) Co., Ltd. Formosa Power (Ningbo) Limited Company Formosa Electronic (Ningbo) Co., Ltd. Formosa ABS Plastics (Ningbo) Limited Company Formosa Chemicals and Fiber (Ningbo) Corporation Formosa Phenol (Ningbo) Limited Company Xiamen Haicang Investment Group Co., Ltd. Formosa Plastics Marine Corporation Formosa Plastics Corporation U.S.A. FG LA LLC Ming Chi University Of Technology

Relationship with the Group Associates

Associates Associates Associates Associates Associates Associates Joint ventures Joint ventures Joint ventures Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties

(Continued)

62

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(c) Significant related-party transactions

(i) Sales to related parties

The amount of significant sales by the Company to related parties were as follows:

The amount of significant sales by the Company to related	parties were as follows:	parties were as follows:
Subsidiaries Associates and joint ventures Other related parties	For the years ended December 31
	2020 $ 14,303,047 2,777,895 9,372,812 $ 26,453,754	2019
		13,730,940 4,207,868 9,619,460
		27,558,268

The receivables from related parties were as follows:

Subsidiaries Nan Ya Electronic Materials (Huizhou) Co., Ltd Nan Ya Electronic Materials (Kunshan) Co., Ltd Other subsidiaries Associates and joint ventures Other related parties	December 31, 2020 $ 1,165,223 1,991,134 1,077,973 617,339 1,499,323 $ 6,350,992	December 31, 2019
		2,254,032 1,138,058 1,144,046 410,877 779,697
		5,726,710

The selling prices and collection terms of sales to related parties are not significantly different from those of third-party customers. The accounts receivable arising from sales of machinery and equipment, and machine parts are collected after the delivery inspection, and the accounts receivable arising from sales of other products are collected on the 30th day of the following month.

The Company sells mainly machinery and provides engineering services to related parties in China and Vietnam. Payment is made after the test run of machinery sold. Also, it sells other products to these related parties. Selling prices and collection terms of other products sold to these associates are not materially different from those to non-related general buyers. Payments are collected 30 to 180 days after shipping of these other products.

(Continued)

63

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(ii) Purchase from related parties

The amounts of significant purchases by the company from related parties were as follows:

Subsidiaries Associates and joint ventures Formosa Petrochemical Corporation Other related parties Formosa Plastics Corporation Formosa Chemicals and Fiber Corporation Other related parties The payables to related parties were as follows: Subsidiaries Associates and joint ventures Formosa Petrochemical Corporation Other related parties Formosa Chemicals and Fiber Corporation Formosa Plastics Corporation Other related parties	For the years ended December 31	For the years ended December 31
	2020 $ 4,768,795 24,963,737 11,141,397 20,526,039 8,439 $ 61,408,407 December 31, 2020 $ 251,937 2,750,104 2,134,838 1,224,446 500 $ 6,361,825	2019
		6,074,110 30,339,000 11,978,383 24,442,785 13,686 72,847,964 December 31, 2019
		594,849 2,358,012 1,923,275 1,080,354 719
		5,957,209

Purchase prices and payment terms of purchases from related parties are not materially different from those of non-related general suppliers. Payment shall be paid within 30 to 180 days of the month following the month of purchase with checks which are due and payable immediately.

(iii) Unrealized sales profit

Significant unrealized (realized) profits from sales to related parties for the years ended December 31, 2020 and 2019 were as follows:

Investee company Subsidiaries Associates and joint ventures	For the year ended December	For the year ended December	For the year ended December	31, 2020
	Unrealized sales profit at beginning of period		(Realized) Unrealized Sales Profits (16,823) 671	Unrealized sales profit at end of period
	$ 74,651 $ 38,996			57,828
				39,667

(Continued)

64

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

Investee company Subsidiaries Associates and joint ventures	For the year ended December	For the year ended December	For the year ended December	31, 2019
	Unrealized sales profit at beginning of period		(Realized) Unrealized Sales Profits (23,068) (6,964)	Unrealized sales profit at end of period
	$ 97,719 $ 45,960			74,651
				38,996

(iv) Construction

The Company contracted with associates to construct and expand the Company’s factory. The construction costs were as follows:

The Company contracted with associates to construct and construction costs were as follows:	expand the Company’s factory. Th	expand the Company’s factory. Th
Associates and joint ventures Formosa Heavy Industries Corporation	For the years ended December 31
	2020 $ 439,734	2019
		110,994

As of December 30, 2020 and 2019, there was $882 and $0 outstanding balance, respectively.

(v) Utility expenses

Part of the utilities of the Company's Lin-Yuan plant and all of the utilities of the Company’s Ren-Wu plant, including power, water and steam, are supplied by or paid on behalf of the Company by the utility plants of Formosa Plastics Corporation. The utilities of the Company’s Mai Liao plant, including power, water and steam, are supplied by Formosa Petrochemical Corporation. The expenses for utilities for the years ended December 31, 2020 and 2019 were as follows:

Subsidiaries Nan Chung Petrochemical Corporation Associates and joint ventures Formosa Petrochemical Corporation Other related parties Formosa Plastics Corporation	For the years ended December 31	For the years ended December 31
	2020 $ 13,482 5,766,151 102,129 $ 5,881,762	2019
		21,017 6,329,046 106,786
		6,456,849

(Continued)

65

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(vi) Property transactions ─ Acquisition of financial assets

Subsidiaries ─ Nan Ya Plastics(Hong Kong) Co.,Ltd. Associates ─FG Inc. Associates ─Formosa Plastics Construction Corporation Subsidiaries ─ Nan Ya Plastics (Hong Kong) Co., Ltd. Associates ─ Formosa Resources Corporation Associates ─ FG Inc. Associates ─ Formosa Synthetic Rubber Corporation Limited	Account Investments accounted for using equity method Investments accounted for using equity method Investments accounted for using equity method Account Investments accounted for using equity method Investments accounted for using equity method Investments accounted for using equity method Investments accounted for using equity method	Number of Shares (in thousands) 23,790 - 50,000 Number of Shares (in thousands) 109,200 157,000 - 4,600	Purpose For the year ended December 31, 2020 Shares of stock of Nan Ya Plastics(Hong Kong) Co.,Ltd. $ 892,371 Shares of stock of FG Inc. 245,909 Shares of stock of Formosa Plastics Construction Corporation 500,000 $ 1,638,280 Purpose For the year ended December 31, 2019 Shares of stock of Nan Ya Plastics (Hong Kong) Co., Ltd. $ 4,308,591 Shares of stock of Formosa Resources Corporation 1,570,000 Shares of stock of FG Inc. 231,570 Shares of stock of Formosa Synthetic Rubber Corporation Limited 46,000 $ 6,156,161

(vii) Loans to related parties

The loans to related parties were as follows:

Formosa Plastics Marine Corporation	Other Receivables from Related Parties	Other Receivables from Related Parties
	December 31, 2020 $ 4,263,200	December 31, 2019 5,640,819

(viii) Borrowings from Related Parties:

Subsidiaries Nan Ya PCB Corporation

Other Payables to Related Parties	Other Payables to Related Parties
December 31, 2020 $ 3,000,000	December 31, 2019 4,000,000

(Continued)

66

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(ix) Endorsements and guarantees

As of December 31, 2020 and 2019, the amounts of the Company’ s endorsements and guarantees for securing related parties’ loans were as follows:

Associates and joint ventures Formosa Group (Cayman) Limited Formosa Industries Corporation Formosa Resources Corporation Other related parties Formosa Ha Tinh (Cayman) Ltd.	December 31, 2020 $ 7,127,000 - 3,064,610 18,967,581 $ 29,159,191	December 31, 2019
		7,526,500 602,120 3,236,395 20,753,559
		32,118,574

(x) Leases

• 1) The rental income of the Company from leasing its plants to its related parties, recognized as other income, were as follows:

Subsidiaries Nan Ya PCB Corporation Associates and joint ventures Nan Ya Technology Corporation	For the years ended December 31	For the years ended December 31
	2020 $ 207,514 263,341 $ 470,855	2019 202,242 258,976 461,218

The rentals charged to related parties are determined based on the local market prices, and rents are collected monthly depending on the contract.

2) The rental expenses of the Company's offices and buildings leased from its related parties, recognized as operating costs and expenses, were as follows:

The Company rented an office building and a piece of land from Formosa Plastics Corporation. The rentals charged to related parties are determined based on the local market prices. For the years ended December 31, 2020 and 2019, the Company recognized the amount of $204 and $548 as interest expense, respectively. As of December 31, 2020 and 2019, the balance of lease liabilities amounted to $1,121 and $25,657, respectively.

The Company rented an office building from Formosa Chemicals and Fiber Corporation. The rentals charged to related parties are determined based on the local market prices. For the years ended December 31, 2020 and 2019, the Company recognized the amount of $201 and $568 as interest expense, respectively. As of December 31, 2020 and 2019, the balance of lease liabilities amounted to $0 and $26,190, respectively.

(Continued)

67

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

The Company rented an office building from Ming Chi University of Technology. The rentals charged to related parties are determined based on the local market prices. For the years ended December 31, 2020 and 2019, the Company recognized the amount of $940 and $984 as interest expense, respectively. As of December 31, 2020 and 2019, the balance of lease liabilities amounted to $64,808 and $67,947, respectively.

The Company rented an office building from Nan Ya PCB Corporation.The rentals charged to related parties are determined based on the local market prices. For the year ended December 31, 2020, the Company recognized the amount of $1,153 as interest expense, respectively. As of December 31, 2020, the balance of lease liabilities amounted to $145,871, respectively.

(xi) Other

Associates－Formosa Plastics Corporation	For the year ended December 31, 2019
	$ 10

For the year ended December 31, 2019, the Company purchased official vehicles from Formosa Plastics Corporation, managed assets in series and recognized as miscellaneous purchases. The Company did not have similar transactions for the year ended December 31, 2020.

• (d) Key management personnel compensation

Key management personnel compensation comprised:

Key management personnel compensation comprised:
Short-term employee benefits	For the years ended December 31
	2020 $ 126,937	2019
		126,953

(8) Pledged assets:

The carrying values of pledged assets were as follows:

Pledged assets	Object	Usage	December 31, 2020 $ 1,227,750 7,529,494 $ 8,757,244
Current financial assets at fair value through other comprehensive income－stock of Formosa Plastics Corporation Land (include idle land) Total	Others Bank loans	The collateral to provisional execution in litigation Bank loans

(9) Commitments and contingencies:

(a) Outstanding standby letter of credit (b) Endorsements and guarantees	December 31, 2020 December 31, 2019 $ 1,430,499 2,247,989 29,159,191 32,118,574 (Continued

68

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

• (c) Formosa Ha Tinh (Cayman) Ltd., Company’s investees, signed a syndicated line of credit with a group of financial institutions amounting to USD 1,485,000 thousand for its operational needs. According to the requirement of the consortium, the Company has to offer a letter of undertaking or a letter of support based on its ownership of 11.432% and commits to monitor the operation of Formosa Ha Tinh (Cayman) Ltd. to ensure it they complete its financial obligation.

• (d) Nan Ya Electronic Materials (Huizhou) Co., Ltd, a Company's investee, planned to apply for a fiveyear syndicated loan with a total amount of no more than CNY1,000,000 thousand, with a group of financial institutions, among which Mega International Commercial Bank Suzhou Branch and Fubon Bank (China) Co., Ltd. act as leading banks. According to the requirement of the consortium, the Company has to offer a letter of support, and commit to monitor the operations of Nan Ya Electronic Materials (Huizhou) Co., Ltd to ensure that it completes its financial obligation.

• (e) Litigation between the Company and DBTEL Incorporated

The Company’s client, DBTEL Inc. (DBTEL), placed several orders from the Company concerning LCD monitors since May 2003. However, in June 2004, it decided to cancel some of them, even demanding the Company to postpone its delivery; and in some cases, it went to a certain extent as to refuse accepting the goods delivered by the Company, resulting in a stock up of both raw materials and finished products in the Company’ s warehouse amounting to USD 5,409,815 and TWD 100,846,141. In light of this matter, the Company filed a lawsuit against DBTEL to the Taiwan High Court on April 6, 2006, demanding for compensation for the damage caused by DBTEL. In reply, as stated in the second judgement rendered after the case has been remanded by Taiwan High Court on April 22, 2020, the original judgement which ordered DBTEL to pay the amount exceeding USD 5,395,363 and NTD 100,846,141 (both including principal and interest), related provisional execution and litigation fee were abolished. According to the aforementioned abolishment, the application the Company made in the judgement of the court of the first instance and the application for provisional execution were both denied. The rest of the appeal was also denied. DEBTEL has appealed to a higher court and the case is being adjudicated on the Supreme Court. The Company will file a favorable response actively.

(10) Losses Due to Major Disasters:None

(11) Subsequent Events:None

(12) Other:

A summary of current-period employee benefits, depreciation, and amortization, by function, were as follows:

follows:
By function By item	For the year ended December 31, 2020				For the year ended December 31, 2019
	Operating costs	Operating expenses	Non-Operating expenses	Total	Operating costs	Operating expenses	Non-Operating expenses	Total
Employee benefit Salaries Labor and health insurance Pension expenses Remuneration of directors Others personnel expenses Depreciation Amortization	9,613,727 715,802 577,173 - 256,173 5,599,814 1,176,858	4,303,410 230,762 209,725 29,997 74,447 333,139 15,915	- - - - - 19,385 -	13,917,137 946,564 786,898 29,997 330,620 5,952,338 1,192,773	10,265,158 735,699 637,644 - 263,439 5,779,963 891,226	4,171,573 230,520 224,444 29,092 74,368 178,692 15,646	- - - - - 30,780 -	14,436,731 966,219 862,088 29,092 337,807 5,989,435 906,872

(Continued)

69

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

The company's number of employees and additional information on employee benefits are as follows:

Number of employees Number of non-concurrently employees by directors Average employee benefit expenses Average employee salary expenses Adjustment of average employee salary expenses Remuneration of the supervisors		For the years ended December 31,	For the years ended December 31,
			2019
			12,545
			9
			1,324
			1,152
			% (6.34)
			-

• (a) Policy for directors’ remuneration:

• (i) The Company's independent directors will receive the remuneration monthly, and they are also provided with transportation allowances based on their board meeting attendance.

• (ii) According to the Company's articles, the directors’ remuneration is approved by the board of directors in accordance with the degree of participation and value of contributions to the operation of the Company, as well as the salary standards of the same peer or industry. Also, they are provided with transportation allowances based on their board meeting attendance.

• (iii) On June 22, 2010, the Company had approved to abolish the appropriation earnings for directors as remuneration at the Annual Stockholders’ Meeting.

• (b) Policy for remuneration of the Supervisors:

On June 23, 2016, the Company has established an Audit Committee to replace its Supervisors.

(c) Policy for managers’ remuneration:

According to the Company's articles and Article 29 of the R.O.C. Company Act, the Company's managers will receive the remuneration monthly. They will also receive their annual bonus, performance bonus and managers’ bonus, depending on the business conditions of the Company. Besides, they can propose the adjustment of their remuneration to the remuneration committee based on that offered to general employees.

(d) Policy for employee remuneration:

The Company's employees are paid monthly. They will also receive their annual bonus, festival bonus, performance bonus and managers’ bonus, depending on the business conditions of the Company. Besides, the monthly wages are adjusted with reference to the Consumer Price Index (CPI), industry salary level, and relevant economic data.

(Continued)

70

NAN YA PLASTICS CORPORATION Notes to Financial Statements

(13) Other disclosures:

• (a) Information on significant transactions:

• (i) Loans to other parties: Please see attached Table 1.

• (ii) Guarantees and endorsements for other parties: Please see attached Table 2.

• (iii) Information regarding securities held as of December 31, 2020 (excluding investment in subsidiaries, associates and joint ventures): Please see attached Table 3.

• (iv) Information regarding individual securities acquired or disposed of with accumulated amount exceeding the lower of TWD300 million or 20% of the capital stock: Please see attached Table 4.

• (v) Information regarding acquisition of individual real estate with amount exceeding the lower of TWD300 million or 20% of the capital stock: None

• (vi) Information regarding disposal of individual real estate with amount exceeding the lower of TWD300 million or 20% of the capital stock: Please see attached Table 5.

• (vii) Information regarding related-party transactions for purchases and sales with amounts exceeding the lower of TWD100 million or 20% of the capital stock: Please see attached Table 6.

• (viii) Information regarding receivables from related parties with amounts exceeding the lower of TWD100 million or 20% of the capital stock: Please see attached Table 7.

• (ix) Information regarding trading in derivative instruments: None

• (b) Information on investees: Please see attached Table 8.

• (c) Information on investment in mainland China: Please see attached Table 9.

• (d) Major shareholders:

Major shareholders:
Shareholding Shareholder’s Name	Shares	Percentage
Chang Gung Medical Foundation	876,733,453	% 11.05
Formosa Plastics Corporation	783,356,866	% 9.87
Formosa Chemicals and Fiber Corporation	413,327,750	% 5.21

• (i) The information on major shareholders, which is provided by the Taiwan Depository & Clearing Corporation, summarized the shareholders who held over 5% of total non-physical common stocks and preferred stocks (including treasury stocks) on the last business date of each quarter. The registered non-physical stocks may be different from the capital stocks disclosed in the financial statement due to different calculation basis.

(Continued)

71

NAN YA PLASTICS CORPORATION

Notes to the Financial Statements

• (ii) If share are entrusted, the above information regarding such shares will be revealed by each trustors of individual trust account. The shareholders holding more than 10% of the total shares of the company should declare insider’s equity according to Securities and Exchange Act. The numbers of the shares declared by the insider include the shares of the trust assets which the insider has discretion over use. For details of the insider’s equity announcement please refer to the TWSE website.

(14) Segment information:

Please refer to the consolidated financial report as of and for the year ended December 31, 2020.

��

NAN YA PLASTICS CORPORATION LENDING TO OTHER PARTIES FOR THE YEAR ENDED DECEMBER 31, 2020 (Expressed in thousands of New Taiwan Dollars)

TABLE 1

No.	Name of Lenders	Name of Borrowers	Account Name	Related Party	Highest Balance of Financing to Other Parties during the Period	Ending Balance	Actual Usage during the Period	Range of Interest Rates during the Period.	Purposes of Fund Financing for the Borrowers (Note 1)	Transaction Amount for Business Between Two Parties (Note 2)	Reasons for Short-term Financing	Allowance for Bad Debt	Collateral	Collateral	Individual Funding Loan Limits (Note 3.4)	Maximum Limitation on Fund Financing (Note 3.4)
													Item	Value
0 0 0 0 0 0 0 0 0 0 1 1 2 2	The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company Nan Ya Plastics Corporation America Nan Ya Plastics Corporation America Nan Ya PCB Corporation Nan Ya PCB Corporation	Formosa Plastics Group Investment Corp. Wellink Technology Corporation PFG Fiber Glass Corporation Nan Ya Plastics (Hong Kong) Co., Ltd. Nan Chung Petrochemical Corporation Formosa Heavy Industries Corporation Formosa Petrochemical Corporation Formosa Plastics Corporation Formosa Chemicals and Fiber Corporation Formosa Plastics Marine Corporation Nan Ya Plastics Corporation Texas Nan Ya Plastics Corporation U.S.A. The Company Nan Ya PCB (HK) Corporation	Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties	YES YES YES YES YES YES YES YES YES YES YES YES YES YES	100,000 100,000 500,000 500,000 500,000 9,000,000 10,000,000 8,000,000 8,000,000 7,683,706 18,245,120 855,240 7,000,000 100,000	100,000 100,000 500,000 500,000 500,000 5,700,000 4,500,000 4,500,000 4,500,000 6,203,200 10,262,880 855,240 3,000,000 100,000	- - - - - - - - - 4,263,200 10,262,880 214,755 3,000,000 -	- - - - 1.229931%~1.418142% - - - - 1.229561%~1.418142% 1.315%~2.937% 1.315%~2.937% 1.230%~1.418% -	2 2 2 2 2 2 2 2 2 2 2 2 2 2	- - - - - - - - - - - - - -	Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital	- - - - - - - - - - - - - -	� � � � � � � � � � � - - �	- - - - - - - - - - - - - -	86,154,217 86,154,217 86,154,217 86,154,217 86,154,217 86,154,217 86,154,217 86,154,217 86,154,217 86,154,217 20,648,695 20,648,695 8,090,672 8,090,672	172,308,434 172,308,434 172,308,434 172,308,434 172,308,434 172,308,434 172,308,434 172,308,434 172,308,434 172,308,434 41,297,390 41,297,390 16,181,345 16,181,345

��

No.	Name of Lenders	Name of Borrowers	Account Name	Related Party	Highest Balance of Financing to Other Parties during the Period	Ending Balance	Actual Usage during the Period	Range of Interest Rates during the Period.	Purposes of Fund Financing for the Borrowers (Note 1)	Transaction Amount for Business Between Two Parties (Note 2)	Reasons for Short-term Financing	Allowance for Bad Debt	Collateral	Collateral	Individual Funding Loan Limits (Note 3.4)	Maximum Limitation on Fund Financing (Note 3.4)
													Item	Value
4 4 4 5 5 5 6 6 8 8 8 8 8 9 9 10 10	Wen Fung Industrial Co., Ltd. Wen Fung Industrial Co., Ltd. Wen Fung Industrial Co., Ltd. Nan Ya Plastics (Guangzhou) Co., Ltd. Nan Ya Plastics (Guangzhou) Co., Ltd. Nan Ya Plastics (Guangzhou) Co., Ltd. Nan Ya Plastics (Huizhou) Co., Ltd. Nan Ya Plastics (Huizhou) Co., Ltd. Nan Ya Plastics (Xiamen) Co., Ltd. Nan Ya Plastics (Xiamen) Co., Ltd. Nan Ya Plastics (Xiamen) Co., Ltd. Nan Ya Plastics (Xiamen) Co., Ltd. Nan Ya Plastics (Xiamen) Co., Ltd. Nan Ya Plastics (Nantong) Co., Ltd. Nan Ya Plastics (Nantong) Co., Ltd. China Nantong Huafeng Co., Ltd. China Nantong Huafeng Co., Ltd.	Wellink Technology Corporation Formosa Fairway Corporation Formosa Environmental Technology Corporation PFG Fiber Glass (Kunshan) Co., Ltd. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd. Xiamen Haicang Investment Group Co., Ltd. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd. PFG Fiber Glass (Kunshan) Co., Ltd. Nan Ya Plastics (Zhengzhou) Co., Ltd. PFG Fiber Glass (Kunshan) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd.	Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties	YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES	23,000 15,000 60,000 52,429 567,979 729,634 1,048,576 533,026 87,381 139,810 43,691 39,322 139,810 21,845 1,651,507 166,025 157,286	23,000 15,000 60,000 - 567,979 345,156 1,048,576 109,227 87,381 139,810 43,691 - 100,489 - 463,121 166,025 146,364	- 15,000 60,000 - 567,979 345,156 1,048,576 109,227 87,381 139,810 43,691 - 100,489 - 463,121 166,025 146,364	- 1.230% 1.230% 3.08%~3.08% 3.08%~3.32% 3.08%~3.48% 3.08%~3.48% 3.08%~3.48% 3.08%~3.48% 3.08%~3.32% 3.08%~3.08% 3.24%~3.48% 3.08%~3.48% 3.08%~3.08% 3.08%~3.48% 3.08%~3.48% 3.08%~3.32%	2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2	- - - - - - - - - - - - - - - - -	Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital	- - - - - - - - - - - - - - - - -	� � � � - � � � - - - � - � � � �	- - - - - - - - - - - - - - - - -	25,149 100,595 125,744 1,362,738 1,362,738 1,362,738 1,752,748 1,752,748 564,802 564,802 564,802 564,802 564,802 5,201,519 5,201,519 169,192 169,192	251,487 251,487 251,487 2,725,472 2,725,472 2,725,472 3,505,491 3,505,491 706,004 706,004 706,004 706,004 706,004 10,403,038 10,403,038 338,384 338,384

��

No.	Name of Lenders	Name of Borrowers	Account Name	Related Party	Highest Balance of Financing to Other Parties during the Period	Ending Balance	Actual Usage during the Period	Range of Interest Rates during the Period.	Purposes of Fund Financing for the Borrowers (Note 1)	Transaction Amount for Business Between Two Parties (Note 2)	Reasons for Short-term Financing	Allowance for Bad Debt	Collateral	Collateral	Individual Funding Loan Limits (Note 3.4)	Maximum Limitation on Fund Financing (Note 3.4)
													Item	Value
11 11 12 12 12 13 13 13 13	Nantong Huafu Plastics Co., Ltd. Nantong Huafu Plastics Co., Ltd. Nan Ya Electric (Nantong) Co., Ltd. Nan Ya Electric (Nantong) Co., Ltd. Nan Ya Electric (Nantong) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd.	PFG Fiber Glass (Kunshan) Co., Ltd. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. PFG Fiber Glass (Kunshan) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd. PFG Fiber Glass (Kunshan) Co., Ltd. Nan Ya PCB (Kunshan) Corporation Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd.	Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties	YES YES YES YES YES YES YES YES YES	31,457 43,691 43,691 65,536 314,573 262,144 327,680 1,660,246 4,910,832	- 43,691 43,691 - 52,429 65,536 - 1,511,697 2,970,966	- 43,691 43,691 - 52,429 65,536 - 1,511,697 2,970,966	3.32%~3.32% 3.24%~3.48% 3.24%~3.24% 3.08%~3.24% 3.08%~3.48% 3.08%~3.48% 3.08%~3.48% 3.08%~3.48% 3.08%~3.48%	2 2 2 2 2 2 2 2 2	- - - - - - - - -	Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital	- - - - - - - - -	� � - � � � � - �	- - - - - - - - -	47,618 47,618 609,354 609,354 609,354 30,054,767 30,054,767 30,054,767 30,054,767	95,233 95,233 1,218,708 1,218,708 1,218,708 60,109,530 60,109,530 60,109,530 60,109,530

Note 1 � (a) Those with business contact please fill in 1; (b) Those necessary for short-term financing please fill in 2.

Note 2 � Amount from business contact stands for the sum of purchases and sales.

• Note 3�Capital loaned to other parties should not exceed 50% of the lender’s net worth, of which the sum loaned to non-interested parties for capital requirements should not exceed 40% of the net worth of borrower. The cap amount of loans to associates and interested parties should not exceed 25% of the equity of the lenders. Other parties should not exceed 20% of the lender’s net worth.

• Note 4 � Subsidiaries' capital loaned to associates and interested parties should not exceed 50% of the equity of the lenders. Other parties should not exceed 40% of the lender’s net worth.

• The subsidiaries' cap amount of loans to other parties should not exceed 100% of its equity. Non-interested parties should not exceed 40% of its net worth. However, subsidiaries' capital loaned to the parties located in non-Taiwan and directly or indirectly held by the company 100% of the shares are not be limited.

• Note 5�Reporting currency of Nan Ya Plastics corporation, America and Nan Ya Plastics corporation USA are denominated in USD, and the exchange rate of TWD to USD as of December 31, 2020 (in average) is 28.508(29.567)�1.

• Reporting currency of Nan Ya Plastics (Hong Kong) Co., Ltd and Superior World Wide Trading Co., Ltd. are denominated in HKD, and the exchange rate of TWD to HKD as of December 31, 2020 (in average) is 3.6549(3.7907)�1.

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NAN YA PLASTICS CORPORATION GUARANTEES AND ENDORSEMENTS FOR OTHER PARTIES FOR THE YEAR ENDED DECEMBER 31, 2020 (Expressed in thousands of New Taiwan Dollars)

TABLE 2

				B=A/2		C			D=C/SE	A=S/E*1.3
No	Endorsement Guarantee Provider	Counterparty of Guarantee and Endorsement		Limitation Amount of Guarantees and Endorsements for a Specific Enterprise	Highest Balance for Guarantee and Endorsements during the Period	Balance of Guarantees and Endorsements as of December 31, 2020	Amount Secured by Guaranteedand Endorsed Property	Amount of Endorsement /Guarantee Collateralized by Properties	Ratio of Accumulated Amounts of Guarantees and Endorsements to Net Worth of the Latest Financial Statements	Maximum Amounts for Guarantees and Endorsements	Parent Company Endorses /Guarantees to Third Parties on Behalf of Subsidiary	Subsidiary Endorses /Guarantees to Third Parties on Behalf of Parent Company	Endorsements /Guarantees to the Third Parties on Behalf of the Companies in Mainland China
		Name	Relationship with The Company (Note)
0 0 0 0 1	The Company The Company The Company The Company Nan Ya Plastics Corporation America	Formosa Industries Corporation Formosa Group (Cayman) Ltd. Formosa Ha Tinh (Cayman) Ltd. Formosa Resources Corporation Nan Ya Plastics Corporation Texas	1 6 6 6 4	9,025,177 224,000,964 224,000,964 224,000,964 26,843,304	427,620 7,127,000 19,651,978 3,064,610 97,482	- 7,127,000 18,967,581 3,064,610 -	- 7,127,000 18,967,581 3,064,610 -	- - - - -	0.00% 2.07% 5.50% 0.89% 0.00%	448,001,927 448,001,927 448,001,927 448,001,927 53,686,607	N N N N Y	N N N N N	N N N N N

Note1: The total amount of guarantees and endorsements by the company shall not exceed 1.3 times of the company's net value, and the amount of guarantees and endorsements for a specific enterprise shall not exceed one half of the foregoing total.

Note2: There are seven conditions in which the Company may have guarantees or endorsements for other parties as follows:

• (1)The Company has business relationship.

• (2)The Company holds directly and indirectly more than 50% of the voting shares of the subsidiaries.

• (3)In aggregate, the Company holds directly or its subsidiaries hold indirectly more than 50% of the investee.

• (4)Subsidiaries in which the Company holds directly or indirectly more than 90% of the voting shares make endorsement and guarantees for each other.

• (5)The Company is required to provide guarantees or endorsements for the construction project based on the construction contract.

• (6)The stockholders of the Company provide guarantees or endorsements for the investee in proportion to their stockholding percentage.

• (7)According to Consumer Protection Act, companies are required to provide guarantees and endorsements for joint and several libilities if take part in business of preconstruction real estate.

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NAN YA PLASTICS CORPORATION INFORMATION REGARDING SECURITIES HELD AT THE REPORTING DATE (SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES NOT INCLUDED) DECEMBER 31, 2020 (Expressed in thousands of New Taiwan Dollars)

TABLE 3

Security Holder	Category and Name of Security	Relationship Between Issuer of Security and the Company which Holds Securities	Account Name	December 31, 2020	December 31, 2020	December 31, 2020	December 31, 2020	Notes
				Number of Shares (in thousands)	Carrying Value	Shareholding Percentage	Market Value or Net Asset Value
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company	Mega Internaitonal Private USD Money Market Formosa Plastics Corporation Formosa Chemicals and Fiber Corporation Formosa Group Ocean Marine Investment Corporation Formosa Plastics Corporation U.S.A. Ostendo Technologies Inc. Formosa Plastics Maritime Corp. Formosa International Development Co., Ltd. Mai Liao Harbor Administration Corp. Formosa Plastics Marine Corporation ASIA Pacific Investment Co. Formosa Technologies Corporation WK Technology Fund Ltd. WK Technology Fund IV Ltd. Central Leasing Corp. Chinese Television System Inc. China Investment & Development Company, Limited	- Other related parties Other related parties Other related parties Other related parties - Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties - - - - -	Financial assets valued at FVTPL �current Financial assets valued at FVTOCI�current Financial assets valued at FVTOCI�current Financial assets valued at FVTOCI�non current Financial assets valued at FVTOCI�non current Financial assets valued at FVTOCI�non current Financial assets valued at FVTOCI�non current Financial assets valued at FVTOCI�non current Financial assets valued at FVTOCI�non current Financial assets valued at FVTOCI�non current Financial assets valued at FVTOCI�non current Financial assets valued at FVTOCI�non current Financial assets valued at FVTOCI�non current Financial assets valued at FVTOCI�non current Financial assets valued at FVTOCI�non current Financial assets valued at FVTOCI�non current Financial assets valued at FVTOCI�non current	12,479 294,793 140,520 3 2 150 352 18,255 39,562 2,429 63,717 2,925 326 460 1,779 1,769 1,287	3,888,883 28,418,056 11,902,014 5,685,107 286,442 - 215,173 266,735 780,924 313,958 2,439,310 93,747 6,310 4,490 - 37,277 6,926	- 4.63% 2.40% 19.00% 0.51% 0.12% 18.00% 18.00% 17.98% 15.00% 14.99% 12.50% 1.63% 1.08% 1.07% 1.04% 0.80%	3,888,883 28,418,056 11,902,014 5,685,107 286,442 - 215,173 266,735 780,924 313,958 2,439,310 93,747 6,310 4,490 - 37,277 6,926	Note 1

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Security Holder	Category and Name of Security	Relationship Between Issuer of Security and the Company which Holds Securities	Account Name	December 31, 2020	December 31, 2020	December 31, 2020	December 31, 2020	Notes
				Number of Shares (in thousands)	Carrying Value	Shareholding Percentage	Market Value or Net Asset Value
The Company The Company The Company The Company Nan Ya Plastics Corporation America Nan Ya Plastics Corporation America Nan Ya Plastics Corporation America Nan Ya Plastics (Hong Kong) Co., Ltd. Nan Ya Plastics (Hong Kong) Co., Ltd. Formosa Plastics Group Investment Corp. Formosa Plastics Group Investment Corp.	Taiwan Aerospace Corp. Guang Yuan Securities Investment Consulting Corporation Mega Growth Capital Venture Formosa Ha Tinh (Cayman) Ltd. Sutton (Bonds) American Overseas Reinsurance Co., Ltd. (Preferred Stock) MBIA Insurance Corp. (Preferred Stock) Hua Ya (Dong Ying) Plastics Corp. Hua Ya (Wu Hu) Plastics Corp. WK Technology Fund Ltd. WK Technology Fund IV Ltd.	- - - - - - - - - - -	Financial assets valued at FVTOCI�non current Financial assets valued at FVTOCI�non current Financial assets valued at FVTOCI�non current Financial assets valued at FVTOCI�non current Financial assets valued at FVTPL �non current Financial assets valued at FVTPL �non current Financial assets valued at FVTPL �non current Financial assets valued at FVTOCI�non current Financial assets valued at FVTOCI�non current Financial assets valued at FVTOCI�non current Financial assets valued at FVTOCI�non current	1,070 3,750 2,500 621,178 - - - - - 1,935 658	14,372 21,450 20,458 8,145,932 248,972 105,481 203,775 341,170 390,831 9,359 14,968	0.79% 3.91% 1.97% 11.43% - - - 15.00% 15.00% 2.42% 3.60%	14,372 21,450 20,458 8,145,932 248,972 105,481 203,775 341,170 390,831 9,359 14,968

Note 1 � The Company pledged its shares of Formosa Plastics Corporation of 12,736 thousand common shares amounting to $1,227,750.

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NAN YA PLASTICS CORPORATION

RMATION REGARDING INDIVIDUAL SECURITIES ACQUIRED OR DISPOSED OF WITH ACCUMULATED AMOUNT EXCEEDING THE LOWER OF 300 MILLION OR 20% OF THE CAPITAL ST FOR THE YEAR ENDED DECEMBER 31, 2020

(Expressed in thousands of New Taiwan Dollars)

TABLE 4

Company Name	Category and Name of Security	Financial Statement Account	Counter-party	Relationship	Beginning Balance	Beginning Balance	Purchases	Purchases	Sales	Sales	Sales	Sales	Ending Balance	Ending Balance
					Shares (in thousands)	Amount	Shares (in thousands)	Amount	Shares (in thousands)	Price	Carrying Value	Gain/Loss on Disposal	Shares (in thousands)	Amount
Nan Ya PCB Corporation Nan Ya PCB (Hong Kong) Corporation Nan Ya Plastics Corporation America The Company Nan Ya Plastics (Hong Kong) Co., Ltd. The Company	Nan Ya PCB (Hong Kong) Corporation Nan Ya PCB (Kunshan) Corporation Nan Ya Plastics Corporation Texas Nan Ya Plastics (Hong Kong) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd. Formosa Plastics Construction Corporation	Investments accounted for using equity method Investments accounted for using equity method Investments accounted for using equity method Investments accounted for using equity method Investments accounted for using equity method Investments accounted for using equity method	Nan Ya PCB (Hong Kong) Corporation Nan Ya PCB (Kunshan) Corporation Nan Ya Plastics Corporation Texas Nan Ya Plastics (Hong Kong) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd. Formosa Plastics Construction Corporation	Investments accounted for using equity method Investments accounted for using equity method Investments accounted for using equity method Investments accounted for using equity method Investments accounted for using equity method Investments accounted for using equity method	1,223,820 - 3 953,253 - 10,000	9,603,122 9,589,396 8,565,565 85,283,330 1,886,579 75,521	374,400 - - 23,790 - 50,000	1,456,560 1,456,560 4,660,160 892,371 892,371 500,000	- - - - - -	- - - - - -	- - - - - -	- - - - - -	1,598,220 - 3 977,043 - 60,000	11,534,930 (Note1) 11,521,860 (Note1) 12,306,315 (Note1) 94,503,253 (Note1) 4,256,031 (Note1) 568,402 (Note1)

Note 1 � End of period amount includes investment income and transaction adjustment under equity method and the effect of exchange changes.

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NAN YA PLASTICS CORPORATION

ORMATION REGARDING DISPOSAL OF INDIVIDUAL REAL ESTATE WUTH AMOUNT EXCEEDING THE LOWER OF 300 MILLION OR 20% OF THE CAPITAL STO FOR THE YEAR ENDED DECEMBER 31, 2020 (Expressed in thousands of New Taiwan Dollars)

TABLE 5

TABLE 5
Company Name	Name of Property	Transaction Date	Acquisition Date	Book Value	Transaction Amount	Status of Payment	Gains (Loss) on Disposal	**Counter-party **	Relationship	Purpose of Disposal	Reference for Determining Price	Others
Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd.	Right-of-use asset (Land)	2020.06	2003.11	42,579	304,789	The full amount has been collected on July 2020.	261,371	Kunshan Guochuang Investment Group Co., Ltd.	Non-related parties	Disposal of Idle Land	Based on the government repurchase land price of state-owned construction land use right of Kunshan Economic and Technological Development Zone Planning and Construction Bureau.	None

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NAN YA PLASTICS CORPORATION

INFORMATION REGARDING RELATED-PARTY TRANSACTIONS FOR PURCHASES AND SALES WITH AMOUNTS EXCEEDING THE LOWER OF 100 MILLION OR 20% OF THE CAPITAL STOCK FOR THE YEAR ENDED DECEMBER 31, 2020 (Expressed in thousands of New Taiwan Dollars)

TABLE 6

TABLE 6
Company Name	Related Party	Relationship	Transaction Details				Abnormal Transaction		Notes/Accounts (Payable) Receivable		Notes
			Purchases / (Sales)	Amount	% to total purchase/(sales)	Credit Period	**Unit Price **	Payment Term	Ending Balance	% to Total
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company Nan Ya PCB Corporation Nan Ya PCB Corporation Nan Ya PCB Corporation Nan Ya PCB (Kunshan) Corporation Nan Ya PCB (Kunshan) Corporation Nan Ya PCB (Kunshan) Corporation Nan Ya PCB (Kunshan) Corporation Nan Chung Petrochemical Corporation Nan Chung Petrochemical Corporation Nan Chung Petrochemical Corporation Nan Chung Petrochemical Corporation Wellink Technology Corporation PFG Fiber Glass Corporation PFG Fiber Glass Corporation PFG Fiber Glass Corporation	Formosa Plastics Corporation Formosa Chemicals and Fiber Corporation Nan Ya PCB Corporation Formosa Petrochemical Corporation Nanya Technology Corporation Formosa Heavy Industries Corporation Formosa Taffeta Co., Ltd. Nan Ya Plastics Corporation U.S.A. Nan Ya Plastics Corporation America Nan Ya Electronic Materials (Huizhou) Co., Ltd. Nan Ya Plastics (Nantong) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Formosa Industries Corporation Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd. Nan Chung Petrochemical Corporation Nan Ya Plastics (Guangzhou) Co., Ltd. Formosa Plastics Corporation Formosa Chemicals and Fiber Corporation Formosa Petrochemical Corporation PFG Fiber Glass Corporation Nan Chung Petrochemical Corporation The Company Nan Ya PCB (Kunshan) Corporation Formosa Advanced Technologies Co., LTD. Nan Ya PCB Corporation Nan Ya Electronic Materials (Kunshan) Co., Ltd. Formosa Advanced Technologies Co., LTD. Wellink Technology Corporation The Company China Man-made Fiber Corporation Formosa Petrochemical Corporation The Company Nan Ya PCB (Kunshan) Corporation The Company Formosa Chemicals and Fiber Corporation Formosa Petrochemical Corporation	Other related parties Other related parties Subsidiaries Associates Associates Associates Other related parties Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Associates Subsidiaries Subsidiaries Subsidiaries Subsidiaries Other related parties Other related parties Associates Subsidiaries Subsidiaries Parent Subsidiaries Associates Subsidiaries Same chairman Associates Same chairman Parent Other related parties Associates Parent Subsidiaries Parent Other related parties Other related parties	(Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) Purchases Purchases Purchases Purchases Purchases Purchases Purchases (Sales) (Sales) Purchases (Sales) Purchases (Sales) (Sales) Purchases Purchases (Sales) (Sales) Purchases Purchases	(1,213,121) (7,460,636) (1,060,830) (1,152,996) (197,131) (174,988) (596,978) (574,780) (316,391) (3,962,713) (804,741) (6,303,415) (1,227,351) (144,265) (489,568) (166,282) (184,155) 11,141,397 20,526,039 24,963,737 2,599,495 2,073,749 1,060,830 8,605,502 (213,434) (8,605,502) 1,249,818 (201,128) 105,982 (2,073,749) (2,053,199) 2,875,621 166,282 (105,982) (2,599,495) 422,637 128,175	(0.85)% (5.20)% (0.74)% (0.80)% (0.14)% (0.12)% (0.42)% (0.40)% (0.22)% (2.76)% (0.56)% (4.40)% (0.86)% (0.10)% (0.34)% (0.12)% (0.13)% 12.13% 22.34% 27.17% 2.83% 2.26% 5.69% 46.19% (0.64)% (62.43)% 16.00% (1.46)% 1.36% (50.04)% (49.54)% 94.21% 5.45% (50.76)% (75.77)% 24.15% 7.33%	30 days 30 days 30 days 30 days 30 days 30 days 30 days O/A105 days O/A105 days O/A180 days O/A150 days O/A150 days O/A150 days O/A150 days O/A150 days 30 days O/A150 days 30 days 30 days 30 days 30 days 30 days 30 days 30 days 70 days 30 days 60 days 70 days 60 days 30 days 15th day of next month 15th day of next month 30 days O/A150 days 30 days 30 days 30 days	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �	176,445 1,269,799 82,150 283,494 34,608 96,331 46,114 317,278 57,528 1,165,223 352,445 1,991,134 191,827 57,950 90,968 0 66,075 (1,224,446) (2,134,838) (2,750,104) (235,311) 0 (82,150) (872,319) 0 872,319 (147,626) 46,704 (26,916) 0 0 0 0 26,916 235,311 (33,554) (12,243)	0.89% 6.40% 0.41% 1.43% 0.17% 0.49% 0.23% 1.60% 0.29% 5.88% 1.78% 10.04% 0.97% 0.29% 0.46% 0.00% 0.33% (10.34)% (18.04)% (23.23)% (1.99)% 0.00% (2.74)% (29.13)% 0.00% 45.50% (9.18)% 2.44% (1.67)% 0.00% 0.00% 0.00% 0.00% 60.80% 73.93% (19.61)% (7.15)%

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Company Name	Related Party	Relationship	Transaction Details	Transaction Details	Transaction Details	Transaction Details	Abnormal Transaction	Abnormal Transaction	Notes/Accounts (Payable) Receivable	Notes/Accounts (Payable) Receivable	Notes
			Purchases / (Sales)	Amount	% to total purchase/(sales)	Credit Period	**Unit Price **	Payment Term	Ending Balance	% to Total
Nan Ya Plastics Corporation U.S.A. Nan Ya Plastics Corporation U.S.A. Nan Ya Plastics Corporation U.S.A. Nan Ya Plastics Corporation America Nan Ya Plastics Corporation America Nan Ya Plastics Corporation America Nan Ya Plastics Corporation America Nan Ya Plastics Corporation America Nan Ya Plastics Corporation Texas PFG Fiber Glass (Kunshan) Co., Ltd. PFG Fiber Glass (Kunshan) Co., Ltd. Nan Ya Plastics (Xiamen) Co., Ltd. Nan Ya Plastics (Guangzhou) Co., Ltd. Nan Ya Plastics (Guangzhou) Co., Ltd. Nan Ya Plastics (Guangzhou) Co., Ltd. Nan Ya Electronic Materials (Huizhou) Co., Ltd. Nan Ya Electronic Materials (Huizhou) Co., Ltd. Nan Ya Plastics (Nantong) Co., Ltd. Nan Ya Plastics (Nantong) Co., Ltd. Nan Ya Plastics (Nantong) Co., Ltd. Nan Ya Plastics (Nantong) Co., Ltd. Nan Ya Plastics (Nantong) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd.	Formosa Plastics Corporation U.S.A. The Company Nan Ya Plastics Corporation America Formosa Plastics Corporation U.S.A. Nan Ya Plastics Corporation U.S.A. Formosa Industries Corporation Formosa Plastics Corporation U.S.A. The Company Formosa Plastics Corporation U.S.A. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Formosa Industries (Ningbo) Co., Ltd. Formosa Plastics Corporation Formosa Industries (Ningbo) Co., Ltd. The Company The Company Nan Ya Electronic Materials (Kunshan) Co., Ltd. Formosa Plastics Corporation The Company Formosa Industries (Ningbo) Co., Ltd. The Company Nanya Kyowa Plastics (Nantong) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Formosa Chemicals and Fiber (Ningbo) Corporation The Company Nan Ya Electronic Materials (Huizhou) Co., Ltd. Nan Ya PCB (Kunshan) Corporation PFG Fiber Glass (Kunshan) Co., Ltd. The Company Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. PFG Fiber Glass (Kunshan) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd. The Company The Company Nan Ya Electronic Materials (Kunshan) Co., Ltd.	Other related parties Parent Subsidiaries Other related parties Subsidiaries Other related parties Other related parties Parent Other related parties Subsidiaries Subsidiaries Other related parties Other related parties Other related parties Parent Parent Subsidiaries Other related parties Parent Other related parties Parent Joint venture Subsidiaries Other related parties Parent Subsidiaries Same chairman Subsidiaries Parent Subsidiaries Subsidiaries Subsidiaries Parent Parent Subsidiaries	Purchases Purchases Purchases (Sales) (Sales) Purchases Purchases Purchases Purchases (Sales) Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases (Sales) (Sales) (Sales) Purchases Purchases (Sales) (Sales) (Sales) Purchases Purchases Purchases Purchases Purchases (Sales) (Sales)	621,221 574,780 152,987 (517,296) (152,987) 145,510 160,901 316,391 418,656 (2,657,429) 236,570 243,947 555,586 349,674 184,155 3,962,713 3,438,921 348,605 804,741 759,925 (117,924) (343,650) (3,411,215) 5,250,106 489,568 (3,438,921) (1,249,818) (236,570) 6,303,415 261,720 2,657,429 3,411,215 144,265 (109,696) (261,720)	26.50% 24.52% 6.53% (2.02)% (0.60)% 0.63% 0.70% 1.37% 100.00% (79.76)% 18.12% 22.23% 30.12% 18.96% 9.98% 48.01% 41.66% 7.06% 16.30% 15.39% (2.19)% (6.37)% (31.90)% 68.40% 6.38% (7.22)% (2.63)% (0.50)% 17.33% 0.72% 7.30% 9.38% 8.15% (4.14)% (9.89)%	payment within one month O/A 105 days payment within one month payment within one month payment within one month O/A150 days payment within one month O/A 105 days payment within one month 60 days 60 days 60 days O/A 150 days 60 days O/A 150 days O/A180 days 180 days O/A 150 days O/A 150 days 60 days O/A 150 days 60 days 60 days 60 days O/A 150 days 180 days 60 days 60 days O/A 150 days 60 days 60 days 60 days O/A 150 days O/A 150 days 60 days	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	� � � � � - � � - � � � � � � � � � � � � - � � � � � � � � � � � � �	(70,077) (317,278) 0 0 0 0 (16,955) (57,528) (403,446) 295,724 (24,111) (17,748) (141,287) (54,884) (66,075) (1,165,223) (2,233,163) (40,748) (352,445) (85,392) 28,248 79,496 231,495 (509,100) (90,968) 2,233,163 147,626 24,111 (1,991,134) (31,626) (295,724) (231,495) (57,950) 78,043 31,626	(12.49)% (56.53)% 0.00% 0.00% 0.00% 0.00% (2.64)% (8.96)% (100.00)% 50.84% (10.62)% (18.79)% (43.61)% (16.94)% (20.39)% (33.94)% (65.05)% (5.19)% (44.90)% (10.88)% 1.55% 4.37% 27.41% (71.01)% (12.69)% 11.73% 0.78% 0.13% (49.89)% (0.79)% (7.41)% (5.80)% (31.88)% 23.19% 9.40%

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NAN YA PLASTICS CORPORATION

INFORMATION REGARDING RECEIVABLES FROM RELATED-PARTIES WITH AMOUNTS EXCEEDING THE LOWER OF 100 MILLION OR 20% OF THE CAPITAL STOCK DECEMBER 31, 2020

(Expressed in thousands of New Taiwan Dollars)

TABLE 7

Company Name	Related Party	Relationship	Ending Balance	Turnover Rate	Overdue	Overdue	Amounts Received in Subsequent Periods	Allowance for Bad Debts
					Amount	Action Taken
The Company The Company The Company The Company The Company The Company The Company The Company Nan Ya PCB (Kunshan) Corporation PFG Fiber Glass Corporation PFG Fiber Glass (Kunshan) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. The Company Nan Ya Plastics Corporation America Nan Ya Plastics Corporation America Nan Ya PCB Corporation Nan Ya Plastics (Nantong) Co., Ltd.	Formosa Plastics Corporation Formosa Chemicals and Fiber Corporation Formosa Petrochemical Corporation Nan Ya Plastics Corporation U.S.A. Nan Ya Electronic Materials (Huizhou) Co., Ltd. Nan Ya Plastics (Nantong) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Formosa Industries Corporation Nan Ya PCB Corporation The Company Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Huizhou) Co., Ltd. Nan Ya PCB (Kunshan) Corporation Formosa Plastics Marine Corporation Nan Ya Plastics Corporation Texas Nan Ya Plastics Corporation U.S.A. The Company Nan Ya Plastics (Ningbo) Co., Ltd.	Other related parties Other related parties Assosiates Subsidiaries Subsidiaries Subsidiaries Subsidiaries Assosiates Subsidiaries Parent Subsidiaries Subsidiaries Subsidiaries Same chairman Other related parties Subsidiaries Subsidiaries Parent Subsidiaries	Receivables from related parties� 176,445 Receivables from related parties� 1,269,799 Receivables from related parties� 283,494 Receivables from related parties� 317,278 Receivables from related parties� 1,165,223 Receivables from related parties� 352,445 Receivables from related parties� 1,991,134 Receivables from related parties� 191,827 Receivables from related parties� 872,319 Receivables from related parties� 235,311 Receivables from related parties� 295,724 Receivables from related parties� 231,495 Receivables from related parties� 2,233,163 Receivables from related parties� 147,626 Other receivables from related parties� 4,263,200 Other receivables from related parties� 10,262,880 Other receivables from related parties� 214,755 Other receivables from related parties� 3,000,000 Other receivables from related parties� 463,121	10.36 7.85 6.21 1.92 2.32 2.50 4.03 5.45 9.30 10.90 9.41 12.03 1.48 8.99 note note note note note	� � � � � � � � � � � - � � � � � � �	� � � � � � � � � � � - � � � � � � �	122,580 832,238 31,443 77,494 461,503 79,204 643,064 50,084 873,319 235,311 295,724 231,495 500,469 147,626 � � � � �	� � � � � � � � � � � - � � � � � � �

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Company Name	Related Party	Relationship	Ending Balance	Turnover Rate	Overdue	Overdue	Amounts Received in Subsequent Periods	Allowance for Bad Debts
					Amount	Action Taken
Nan Ya Plastics (Huizhou) Co., Ltd. Nan Ya Plastics (Huizhou) Co., Ltd. Nan Ya Plastics (Xiamen) Co., Ltd. Nan Ya Plastics (Xiamen) Co., Ltd. Nan Ya Plastics (Guangzhou) Co., Ltd. Nan Ya Plastics (Guangzhou) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. China Nantong Huafeng Co., Ltd. China Nantong Huafeng Co., Ltd.	Nan Ya Plastics (Ningbo) Co., Ltd. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. Nan Ya Plastics (Zhengzhou) Co., Ltd. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. Nan Ya PCB (Kunshan) Corporation Nan Ya Plastics (Ningbo) Co., Ltd. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd.	Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries	Other receivables from related parties� 109,227 Other receivables from related parties� 1,048,576 Other receivables from related parties� 100,489 Other receivables from related parties� 139,810 Other receivables from related parties� 345,156 Other receivables from related parties� 567,979 Other receivables from related parties� 2,970,966 Other receivables from related parties� 1,511,697 Other receivables from related parties� 146,364 Other receivables from related parties� 166,025	note note note note note note note note note note	� � � � � � � � � �	� � � � � � � � � �	� � � � � � � � � �	� � � � � � � � � �

Note� The turnover rate of other receivables from related parties cannot be calculated.

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NAN YA PLASTICS CORPORATION INFORMATION ON INVESTEES (EXCLUDING THOSE IN MAINLAND CHINA) FOR THE YEAR ENDED DECEMBER 31, 2020 (Expressed in thousands of New Taiwan Dollars)

TABLE 8

TABLE 8
Investor Company	Investee Company	Location	Major Operations	Original Investment Amount		Balance as of December 31, 2020			Net Income of Investee	Investment Income (Loss) Recognized by the Investor Company	Notes
				December 31, 2020	December 31, 2019	Shares (in thousands)	%	Carrying Value
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company	Nan Ya Plastics Corporation U.S.A. (Note) Nan Ya Plastics Corporation America (Note) Nan Ya Plastics (Hong Kong) Co., Ltd. (Note 1) Superior World Wide Trading Co., Ltd. (Note 1) Formosa Synthetic Rubber (Hong Kong) Corporation Limited (Note) PFG Fiber Glass (Hong Kong) Corporation Limited (Note 1) Formosa Industries Corporation (Note 2) Nan Ya PCB Corporation Formosa Plastics Group Investment Corp. Nanya Technology Corporation Formosa Environmental Technology Corporation Formosa Petrochemical Corporation PFG Fiber Glass Corporation Nan Chung Petrochemical Corporation Wen Fung Industrial Co., Ltd.	U.S.A. U.S.A. Hong Kong Hong Kong Hong Kong Hong Kong Vietnam Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan	production of plastic products production of plastic, polyester and chemical plastics, electronic products trading, and investment plastics trading and investment production of synthetic rubber products investment chemical fiber, dyeing and finishing and electric power production of printed circuit board investment semiconductor production and marketing environmental protection production of chemical products production of glass fiber production of chemical products production of electronic components	313,920 7,853,605 40,059,044 33,677 4,213,858 4,495,987 8,435,875 4,480,417 76,859 52,438,472 672,370 24,647,480 2,648,131 1,000,002 214,236	313,920 7,853,605 39,166,673 33,677 4,162,010 4,495,987 8,435,875 4,480,417 76,859 52,438,472 672,370 24,647,480 2,648,131 1,000,002 214,236	2 60 977,043 14 138,333 76 - 432,745 5,000 907,304 46,257 2,201,306 100,000 100,000 18,738	100.00% 100.00% 100.00% 100.00% 33.33% 100.00% 42.50% 66.97% 100.00% 29.51% 26.99% 23.11% 100.00% 50.00% 100.00%	1,806,611 41,297,390 94,503,253 757,984 2,163,217 7,740,314 8,015,342 21,635,835 79,430 45,385,484 252,079 71,161,386 4,098,568 1,103,433 258,824	48,611 1,992,139 6,872,106 34,477 (500,699) (66,309) 630,599 3,665,917 124 7,686,041 5,812 7,429,610 143,185 (98,496) 8,444	48,611 1,992,139 6,872,106 34,477 (164,284) (86,308) 268,005 2,456,661 124 2,274,089 1,568 1,717,157 (29,796) (49,034) 8,487	Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3

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Investor Company	Investee Company	Location	Major Operations	Original Investment Amount	Original Investment Amount	Balance as of December 31, 2020	Balance as of December 31, 2020	Balance as of December 31, 2020	Net Income of Investee	Investment Income (Loss) Recognized by the Investor Company	Notes
				December 31, 2020	December 31, 2019	Shares (in thousands)	%	Carrying Value
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company Nan Ya Plastics Corporation America (Note) Nan Ya Plastics Corporation America (Note) Nan Ya Plastics Corporation Texas (Note)	Formosa Automobile Sales Corporation Ya Tai Development Corporation Formosa Heavy Industries Corporation Formosa Fairway Corporation Formosa Plastics Transport Corporation Hwa Ya Science Park Management Consulting Co., Ltd. Yi Jih Development Corporation Mai Liao Power Corporation Nan YA Photonics Inc. Formosa Synthetic Rubber Corporation Formosa Resources Corporation Formosa Group (Cayman) Limited (Note) Formosa Plastics Construction Corporation Nan Ya International (Cayman) Limited (Note) FG Inc. (Note) Formosa Utility Venture, Ltd.(Note) Nan Ya Plastics Corporation Texas (Note) Formosa Olefins, L.L.C. (Note)	Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Cayman Islands Taiwan Cayman Islands U.S.A. U.S.A. U.S.A. U.S.A.	production of automobile development industry machinery industry transportation business transportation business service business construction business electricity generation business LED equipment manufacturer production of synthetic rubber products mining industry investment construction business investment investment electricity generation and trading production of chemical products chemical business	945,028 53,941 2,497,721 33,340 67,254 359 13,335 5,985,465 761,820 - 7,415,940 377 600,000 - 1,137,655 228,064 13,968,920 1,960,638	945,028 53,941 2,497,721 33,340 67,254 359 58,000 5,985,465 - 446,000 7,415,940 377 100,000 18,784,619 891,746 228,064 9,407,640 1,960,638	27,046 1,304 651,706 4,699 6,566 34 1,221 601,727 10,609 - 741,594 13 60,000 - 2 - 3 -	45.00% 44.96% 32.91% 33.34% 33.33% 34.00% 29.22% 24.94% 23.02% - 25.00% 25.00% 33.33% - 10.00% 12.10% 100.00% 21.00%	259,350 18,067 7,179,892 68,267 1,177,690 3,121 20,512 12,415,371 297,265 - 6,169,287 649,229 568,402 - 1,042,417 2,289,468 12,306,315 1,844,017	173,301 104 566,338 (38,443) 308,015 1,176 1,730 6,702,012 90,298 (686,050) 74,886 125,884 (21,358) - (149,350) (21,404) (379,469) 2,678,094	77,988 47 186,386 (12,817) 102,673 400 505 1,671,606 12,065 (228,683) 18,721 31,471 (7,119) - (14,935) (1,739) (379,469) 562,400	Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3

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Investor Company	Investee Company	Location	Major Operations	Original Investment Amount	Original Investment Amount	Balance as of December 31, 2020	Balance as of December 31, 2020	Balance as of December 31, 2020	Net Income of Investee	Investment Income (Loss) Recognized by the Investor Company	Notes
				December 31, 2020	December 31, 2019	Shares (in thousands)	%	Carrying Value
Nan Ya PCB Corporation Nan Ya PCB Corporation Nan Ya PCB Corporation Nan Ya PCB (Hong Kong) Corporation Wen Fung Industrial Co., Ltd. Superior World Wide Trading Co., Ltd. (Note 1)	Nan Ya PCB (Hong Kong) Corporation Nan Ya PCB (U.S.A.) Corporation Formosa Advanced Technologies Co.,LTD. Nan Ya PCB (Kunshan) Corporation Wellink Technology Corporation P.T.Indonesia Nanya Indah Plastics Co.	Hong Kong U.S.A. Taiwan China Taiwan Indonesia	production of electronic products and investment retargeting IC packaging, testing and modules production of printed circuit board production of electronic components production of plastic products	6,477,460 3,479 472,968 6,474,281 212,017 115,371	5,020,900 3,479 472,968 5,017,721 212,017 115,371	1,598,220 1,000 13,267 - 12,739 5	100.00% 100.00% 3.00% 100.00% 100.00% 50.00%	11,534,930 14,580 487,152 11,521,860 143,447 236,557	325,627 1,629 1,402,677 325,553 7,644 56,659	325,627 1,629 41,970 325,553 7,644 29,633	Note 3 Note 3 Note 3 Note 3 Note 3 Note 3

Note � The reporting currency of Nan Ya Plastics Corporation U.S.A, Nan Ya Plastics Corporation America, Formosa Synthetic Rubber (Hong Kong) Corporation Limited, Formosa Group (Cayman) Limited, Nan Ya International (Cayman) Limited, FG Inc., Formosa Utility Venture, Ltd., Nan Ya Plastics Corporation Texas, and Formosa Olefins, L.L.C is denominated in USD, and the exchange rate of TWD to USD as of December 31, 2020 (in average) is 28.508(29.567)�1.

Note 1 � The reporting currency of Nan Ya Plastics (Hong Kong) Co., Ltd., Superior World Wide Trading Co., Ltd. and PFG Fiber Glass (Hong Kong) Corporation Limited is denominated in HKD, and the exchange rate of TWD to HKD as of December 31, 2020 (in average) is 3.6549(3.7907)�1.

Note 2 � The reporting currency of Formosa Industries Corporation, Vietnam is denominated in VND, and the exchange rate of TWD to VND as of December 31, 2020 (in average) is 0.001234113(0.001272465)�1.

Note 3 � Investment income of the current period does not include cumulative translation adjustment and capital surplus adjustment.

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NAN YA PLASTICS CORPORATION INFORMATON ON INVESTMENT IN MAINLAND CHINA FOR THE YEAR ENDED DECEMBER 31, 2020 (Expressed in thousands of New Taiwan Dollars)

TABLE 9

(a) Information regarding investments in Mainland China :

Name of the PRC Investee Company	Primary Business Scope	Amount of Paid-in Capital	Method of Investment	Investment Transferred from Taiwan as of January 1, 2020	For The Year Ended December 31, 2020	For The Year Ended December 31, 2020	Investment Transferred from Taiwan as of December 31, 2020	Current Income of Investees	Direct and Indirect Shareholding Percentage by the Company	Investment Gain (Loss)	Carrying Value of Investment as of December 31, 2020	Accumulated Inward Remittance of Earnings as of December 31, 2020
					Outflow	Inflow
Nan Ya Plastics (Guangzhou) Co., Ltd.(Note1) Nan Ya Plastics (Xiamen) Co., Ltd.(Note1) Nan Ya Plastics (Huizhou) Co., Ltd.(Note1) Nan Ya Electronic Materials (Huizhou) Co., Ltd.(Note1) Nan Ya Trading (Huizhou) Co., Ltd.(Note1) Nan Ya Plastics (Nantong) Co., Ltd.(Note1) China Nantong Huafeng Co., Ltd.(Note1) Nantong Huafu Plastics Co., Ltd.(Note1) Nan Ya Electric (Nantong) Co.,(Note1) Nanya Kyowa Plastics (Nantong) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd.(Note1) Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd.(Note1) Nan Ya Plastics (Zhengzhou) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd.(Note1) PFG Fiber Glass (Kunshan) Co., Ltd.(Note1)	production of polyester products production of plastic products production of polyester products production of copper clad laminate trading sale of plastic products, steam and electricity trading trading production of switch gear and control panel interior decorating business production of copper clad laminate, polyester products, steam and electricity, copper clad, epoxy production of polyester products production of plastic products production of BPA and plasticizer production of glass fiber	1,998,681 775,457 2,527,462 5,489,509 32,267 4,540,736 93,004 79,111 339,275 200,988 15,159,216 7,035,085 261,737 3,081,205 4,668,263	Indirect investment Indirect investment Indirect investment Indirect investment Indirect investment Indirect investment Indirect investment Indirect investment Indirect investment Indirect investment Indirect investment Indirect investment Indirect investment Indirect investment Indirect investment	1,998,681 738,752 2,418,397 5,489,509 32,267 3,008,918 99,636 71,503 339,275 100,494 15,159,216 7,035,085 130,869 1,989,308 4,487,409	- - - - - - - - - - - - - 892,371 -	- - - - - - - - - - - - - - -	1,998,681 738,752 2,418,397 5,489,509 32,267 3,008,918 99,636 71,503 339,275 100,494 15,159,216 7,035,085 130,869 2,881,679 4,487,409	87,203 115,125 127,363 486,266 447 377,606 5,657 2,224 57,904 108,888 4,533,043 (429,694) 43,503 1,409,295 (73,420)	100.00% 85.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 50.00% 100.00% 100.00% 50.00% 100.00% 100.00%	87,203 97,856 127,363 486,266 447 377,606 5,657 2,224 57,904 54,444 4,533,043 (429,694) 21,752 1,409,295 (73,420)	2,437,985 1,015,972 3,396,832 6,925,380 58,928 10,297,597 340,625 96,409 1,177,143 222,630 61,722,460 (232,087) 81,482 4,256,031 7,729,271	611,825 72,820 - - - 103,612 - - - - - - - - 149,416

��

Name of the PRC Investee Company	Primary Business Scope	Amount of Paid-in Capital	Method of Investment	Investment Transferred from Taiwan as of January 1, 2020	For The Year Ended December 31, 2020	For The Year Ended December 31, 2020	Investment Transferred from Taiwan as of December 31, 2020	Current Income of Investees	Direct and Indirect Shareholding Percentage by the Company	Investment Gain (Loss)	Carrying Value of Investment as of December 31, 2020	Accumulated Inward Remittance of Earnings as of December 31, 2020
					Outflow	Inflow
Hua Ya (Dong Ying) Plastics Corp. Hua Ya (Wu Hu) Plastics Corp. Formosa Synthetic Rubber (Ningbo) Limited Corporation	production of plastic products production of plastic products synthetic rubber	254,190 624,948 12,777,590	Indirect investment Indirect investment Indirect investment	34,591 34,591 4,162,010	- - -	- - -	34,591 34,591 4,162,010	- - (500,699)	15.00% 15.00% 33.33%	- - (164,284)	341,170 390,831 2,163,217	23,020 12,687 -

Note: All companies disclosed within the investment income of the current year column are recognized according to the audited financial statements of the Company, except for Formosa Synthetic Rubber (Ningbo) Co., Ltd., which are recognized according to the financial statements audited by an international accounting firm.

(b) Quota for investments in Mainland China :

Accumulative Remittance from Taiwan to Mainland China as of December 31, 2020 (Note 1)	Amount of Investment Approved by Investment Commission, Ministry of Economic Affairs (Note 2)	Limit on the Amount of Investment in Mainland China (Note 3)
48,483,340	53,671,092	-

Note 1 � Reporting currency of Chinese subsidiaries is CNY, and the monetary amount is first translated to HKD using the exchange rate as of December 31, 2020 (in average) is 1�1.1954(1.1317), and translated to TWD using the exchange rate as of December 31, 2020 (in average) is 1�3.6549(3.7907). Note 2 � It includes the amount of $3,010,315 from capital increase out of earnings and capital increase out of capital surplus.

Note 3 � The Industrial Development Bureau of the MOEA issued a letter to the Company stating that it qualifies under Section 12 of the Statute for Upgrading Industries.

Note 4 : The accumulative remittance from Taiwan to Mainland China, end of the period includes the amount of Nan Ya Plastics (Anshan) Co., Ltd.

(c) Information on significant transactions �

For more information concerning the direct or indirect significant transactions between the Company and its Chinese investees for the year ended December 31, 2020, please refer to the attachment of note 13 for "Information on material transaction items".

89

NAN YA PLASTICS CORPORATION

Statement of financial assets measured at fair value through other comprehensive income - current

For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Asset Shares of Stock 〃 Total	Description Formosa Plastics Corporation Formosa Chemicals and Fiber Corporation	Number of Acquisition Shares Cost 294,793,105 $ 2,604,713 140,519,648 1,435,800 $ 4,040,513	Fair	Value Total Amount Note 28,418,056 For detailed information concerning pledged assets please see Note 8. 11,902,014 40,320,070
			Unit Cost 96.40 84.70

90

NAN YA PLASTICS CORPORATION

Statement of financial assets measured at fair value through profit or loss - current

December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Asset Funds	Description Mega Internaitonal Private USD Money Market	Number of Acquisition Shares Cost 12,479,188 $ 4,097,403	Fair	Value Total Amount Note 3,888,883
			Unit Cost 311.63

91

NAN YA PLASTICS CORPORATION

Statement of notes receivable

December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Item		Amount
NAKOSIN ENTERPRISE CO., LTD.	$	138,012
CHIN-POON INDUSTRIAL CO., LTD.		102,000
YIH THAI ENTERPRISE CO., LTD.		131,159
Others (Note)		1,649,132
Less: Allowance to reduce notes receivables to fair value		(11,128)
Total	$	2,009,175
Note: Items that do not reach the five percent benchmark for this account.

Statement of accounts receivable

Item Others (Note) Less: Allowance to reduce accounts receivables to fair value Total Formosa Chemicals and Fibre Corporation Nan Ya Electronic Materials (Huizhou) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Others (Note) Total	Description Amount Ordinary Clients $ 11,520,635 〃 (54,833) $ 11,465,802 Related party $ 1,269,799 〃 1,165,223 〃 1,991,134 〃 1,924,836 $ 6,350,992

Note: Items that do not reach the five percent benchmark for this account.

92

NAN YA PLASTICS CORPORATION

Statement of inventories

December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Item Raw Materials Other Materials Work-in-Process Finished Goods Parts Work-in-Process Out-sourced processing Inventory in transit Consigned Inventory Subtotal Less: Allowance to reduce inventory to market prices Net inventory	Amount	Amount
	Cost $ 4,946,410 63,183 4,436,623 4,571,720 8,084,118 149,890 113,376 6,564 22,371,884 (92,055) $ 22,279,829	Net Realizable Value
		4,946,381 781 4,435,162 4,543,556 8,084,118 149,891 113,376 6,564
		22,279,829

93

NAN YA PLASTICS CORPORATION

Statement of changes in investments accounted for using the equity method

For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Investee Company	Beginning Balance	Beginning Balance	Add	i	tions	Disposals Number of Shares Amount	Disposals Number of Shares Amount	Disposals Number of Shares Amount	Dividend fro	m Investees	Ot	h	ers Amount (3,429) - 391,033 - - - 2,249 (146,481) (6,567) (123,264) 238 (196,751) 91,114 1,104 50 30 - (271,417) (1,101) 10,278 115 - (317,393) 14,207 6,435,535 (3,682) - - - - 5,875,868 (3,053,963) 2,821,905	Income (loss) from Investments	Ending Balanc	Ending Balanc	e	Amount Note 1,947,266 Note 1 44,060,601 101,637,837 Note 1 910,904 2,190,359 8,327,094 9,318,809 Note 1 22,174,692 Note 1 79,430 Note 1 46,239,341 Note 1 252,110 Note 1 71,429,328 Note 1 4,098,568 Note 1 1,103,433 Note 1 258,824 Note 1 259,350 Note 1 18,067 7,393,891 Note 1 68,267 Note 1 1,199,952 Note 1 3,121 Note 1 20,512 12,516,841 Note 1 297,340 Note 1 - Note 1 - Note 1 6,556,053 719,614 1,103,408 568,402 344,753,414 (14,625,394) 330,128,020
	Number of Shares	Amount	Number of Shares		Amount			Amount	Share Dividend (Number of shares)	Cash Dividend - - - - - - - (302,922) (1,000) (1,358,497) - (6,383,787) (158,900) (18,441) - - - - - - - - - - - - - - - - (8,223,547) - 8,223,547	Number of Shares				Number of Shares	Percentage of Ownership
Nan Ya Plastics Corporation U.S.A. Nan Ya Plastics Corporation America Nan Ya Plastics (Hong Kong) Co., Ltd Superior World Wide Trading Co., Ltd Formosa Synthetic Rubber (Hong Kong) Corporation Limited PFG Fiber Glass (Hong Kong) Corporation Limited Formosa Industries Corporation Nan Ya PCB Corporation Formosa Plastics Group Investment Corp. Nan Ya Technology Corporation Formosa Environmental Technology Corporation Formosa Petrochemical Corporation PFG Fiber Glass Corporation Nan Chung Petrochemical Corporation Wen Fung Industrial Co., Ltd Formosa Automobile Sales Corporation Ya Tai Development Corporation Formosa Heavy Industries Corporation Formosa Fairway Corporation Formosa Plastics Transport Corporation Hwa Ya Science Park Management Consulting Co. Ltd. Yi-Jih Development Corporation Mai Liao Power Corporation Nan YA Photonics Incorporation Nan Ya International (Cayman) Limited Formosa Synthetic Rubber Corporation Limited Formosa Resources Corporation Formosa Group (Cayman) Limited FG Inc. Formosa Plastics Construction Corporation Subtotal Add : Loss from foreign exchange	2 $ 1,902,084 60 42,068,462 953,253 93,482,327 14 876,427 135,000 2,302,795 76 8,413,402 - 9,048,555 432,745 20,167,434 5,000 86,873 907,304 45,447,013 46,257 250,304 2,201,306 76,292,709 100,000 4,196,150 100,000 1,169,804 18,738 250,287 27,046 181,332 1,304 18,020 651,706 7,478,922 4,699 82,185 6,566 1,087,001 34 2,606 5,800 64,672 547,025 11,162,628 - - 52 11,301,879 44,600 292,635 741,594 6,537,332 13 688,143 2 872,434 10,000 75,521 345,799,936 (11,571,431) $ 334,228,505		- - 23,790 - 3,333 - - - - - - - - - - - - - - - - - 54,702 10,609 - - - - - 50,000		- - 892,371 - 51,848 - - - - - - - - - - - - - - - - - - 271,068 - - - - 245,909 500,000 1,961,196 - 1,961,196	- - - - - - - - - - - - - - - - - - - - - 4,579 - - 52 44,600 - - - -		- - - - - - - - - - - - - - - - - - - - - 44,665 - - 17,737,414 60,270 - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -		- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -			48,611 1,992,139 6,872,106 34,477 (164,284) (86,308) 268,005 2,456,661 124 2,274,089 1,568 1,717,157 (29,796) (49,034) 8,487 77,988 47 186,386 (12,817) 102,673 400 505 1,671,606 12,065 - (228,683) 18,721 31,471 (14,935) (7,119) 17,182,310	2 60 977,043 14 138,333 76 - 432,745 5,000 907,304 46,257 2,201,306 100,000 100,000 18,738 27,046 1,304 651,706 4,699 6,566 34 1,221 601,727 10,609 - - 741,594 13 2 60,000	100.00 100.00 100.00 100.00 33.33 100.00 42.50 66.97 100.00 29.51 26.99 23.11 100.00 50.00 100.00 45.00 44.96 32.91 33.34 33.33 34.00 29.22 24.94 23.02 - - 25.00 25.00 10.00 33.33
								17,842,349 -
								17,842,349

• Note 1: Others is mainly comprised of adjustmet on initial application of IFRS 16, financial assets’ unrealized profit or loss, capital surplus, downstream realized (unrealized) profit or loss, actuarial gains and losses and gains from re-measuring fair value of original interest from business combination are proportionately recognized and accounted for using equity method.

94

NAN YA PLASTICS CORPORATION

Statement of short-term borrowings

December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Categories	Creditor Bank of Taiwan First Commercial Bank Hua Nan Commercial Bank Bank of China Bank of China Bank of Communications Taiwan Cooperative Bank Taipei Fubon Commercial Bank Co., Ltd. Citybank Taiwan, Ltd. Citybank Taiwan, Ltd. Mizuho Bank HSBC Bank Banco Bilbao Vizcaya ArgentariaS.A. Banco Bilbao Vizcaya ArgentariaS.A. Sumitomo Mitsui Banking Corporation Taiwan Business Bank Co., Ltd. Credit Agricole Corporate and Investment Bank Credit Agricole Corporate and Investment Bank MUFG Bank, Ltd. CTBC Commercial Bank Co., Ltd. DBS Bank Ltd. Standard Chartered Bank Yuanta Bank E. Sun Bank CTBC Commercial Bank Co., Ltd.	End of Term Amount $ 900,000 2,000,000 440,000 1,200,000 800,000 1,400,000 800,000 500,000 1,000,000 1,000,000 1,300,000 1,200,000 2,000,000 1,500,000 1,400,000 1,400,000 1,500,000 1,000,000 3,000,000 1,600,000 1,000,000 1,500,000 1,000,000 800,000 500,000 $ 30,740,000	Contract Period 2020.12.31~2021.06.29 2020.12.11~2021.01.04 2020.12.15~2021.01.14 2020.12.18~2021.01.18 2020.12.25~2021.01.08 2020.12.22~2021.01.06 2020.08.04~2021.07.30 2020.12.11~2021.01.11 2020.10.06~2021.01.04 2020.11.11~2021.01.11 2020.12.30~2021.01.15 2020.12.18~2021.01.18 2020.11.13~2021.01.13 2020.12.02~2021.01.05 2020.12.29~2021.01.13 2020.12.21~2021.01.04 2020.10.28~2021.04.28 2020.12.30~2021.01.14 2020.12.29~2021.01.13 2020.08.12~2021.01.07 2020.12.28~2021.01.12 2020.11.25~2021.02.23 2020.12.17~2021.01.05 2020.12.23~2021.01.07 2020.10.15~2021.01.07	Interest Rate Collateral 0.845% Nil 0.78% Nil 0.88% Nil 0.75% Nil 0.75% Nil 0.76% Nil 0.88% Nil 0.82% Nil 0.68% Nil 0.66% Nil 0.72% Nil 0.80% Nil 0.73% Nil 0.70% Nil 0.75% Nil 0.741% Nil 0.70% Nil 0.75% Nil 0.75% Nil 0.75% Nil 0.75% Nil 0.61% Nil 0.75% Nil 0.72% Nil 0.75% Nil
Credit Loans Credit Loans Credit Loans Credit Loans Credit Loans Credit Loans Credit Loans Credit Loans Credit Loans Credit Loans Credit Loans Credit Loans Credit Loans Credit Loans Credit Loans Credit Loans Credit Loans Credit Loans Credit Loans Credit Loans Credit Loans Credit Loans Credit Loans Credit Loans Credit Loans Total

95

NAN YA PLASTICS CORPORATION

Statement of long-term borrowings December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Loan Amount

Noncurrent Current portion of portionof long-term Creditor long-term debts debts Total Contract Period Interest Rate Collateral Note Bank of Taiwan $ - 2,000,000 2,000,000 2020.08.10~2023.08.10 0.8450% Nil Debt will be repaid in one installment. Bank of Taiwan. 500,000 - 500,000 2018.07.10~2021.07.10 0.9449% Nil Debt will be repaid in one installment. KGI Commercial Bank Co., Ltd. - 1,800,000 1,800,000 2019.04.03~2022.04.03 0.7866% Nil Debt will be repaid in one installment. $ 500,000 3,800,000 4,300,000

96

NAN YA PLASTICS CORPORATION

Statement of operating revenue

For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Item Flexible PVC Sheeting PVC Leather products Rigid PVC Sheeting Metalized Film Plastic Conduit Injection Products Extruded Products Tiles Plastic Film Products PU Synthetic Leather Non-woven Fabric UP Resin Engineering Plastics Biphenol Epoxidisedsoyabean oil Hydrogen Peroxide Butanediol Tetrahydrofuran Maleic anhydride Stabilizer Plastic Doors and Windows Collodion Cutton Plastic Compound Plastic Textured Yarn Cake Plastic Textured Yarn Draw Textured Yarn Coloured Texture Yarn Jersey cloth Film Ethylene glycol Liquid Air Air Silk Woven Cloth Release Film Plasticizer and Accelerator PA Ethyl hexanol Isononyl alcohol Epoxy Copper Cladded Laminate Base Material Glass Fabrics Liquid Crystal Display Copper Foil Machine Processing Distribution Panel Others Total Service Revenue Other Operating Revenue Total Operating Revenue	Unit KG Y KG KG KG KG KG SS KG Y Y KG KG KG KG KG KG KG KG KG KG KG KG KG KG KG KG KG KG KG KG KG Y Square Meter KG KG KG KG KG SH M M PC KG	Quantity 45,944,971 765,109 52,083,025 19,610,903 101,607,390 13,173,086 41,412,477 306,946 47,033,158 2,279,685 786,382 4,446,080 14,367,699 323,209,350 9,892,980 12,466,160 33,019,479 28,666,508 32,558,380 3,873,690 22,896,981 95,015,391 155,923,391 21,349,033 43,490,128 59,894,408 621,428 780,762 57,440,541 1,528,475,697 166,179,143 778,133,100 9,326,097 135,233,290 183,579,387 141,925,325 129,258,045 53,527,981 181,677,489 22,505,038 21,813,879 122,269,063 3,454,238 19,024,069 - -	Amount
			$ 3,356,941 61,895 3,297,319 148,004 4,914,436 1,329,779 1,763,997 139,122 3,326,160 339,048 187,917 193,395 1,256,392 12,674,918 366,513 132,212 1,190,721 1,348,910 924,800 362,444 3,971,173 3,138,992 3,573,281 760,487 2,470,545 3,843,318 94,056 143,683 3,972,856 22,815,658 845,809 941,232 422,444 999,732 6,125,235 3,051,440 2,941,110 913,002 13,318,240 11,954,756 1,796,089 3,390,882 930,091 5,940,478 932,253 1,762,263 2,328,744 140,692,772 125,309 2,587,440 $ 143,405,521

97

NAN YA PLASTICS CORPORATION

Statement of operating costs

For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Items Direct Material Balance, beginning of year Purchases Less: Balance, end of year Total Direct Material Supplies, beginning of year Purchases Less: Supplies, end of year Total Supplies Direct Labor Manufacturing Expenses Manufacturing Cost Add: Work-in-Process, beginning of year Less: Work-in-Process, end of year Internal Transfer Adjustment Items Cost of Finished Goods Add: Finished Goods, beginning of year Less: Finished Goods, end of year Internal Transfer Adjustment Items Cost of Goods Sold Labor Cost Other Operating Cost Total Operating Cost

Amount $ 5,818,191 79,579,904 (5,216,240) 80,181,855 86,948 12,303,866 (63,183) 12,327,631 7,097,535 35,339,412 134,946,433 9,806,849 (12,520,741) (8,295,080) 123,937,461 6,233,593 (4,571,720) (4,562,675) 121,036,659 95,846 1,887,859 $ 123,020,364

98

NAN YA PLASTICS CORPORATION

Statement of selling expenses

For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Items		Amount
Export Freight Expenses	$	2,087,196
Export Commissions		338,519
Domestic Freight Expenses		879,638
Direct Labor		335,457
Indirect Labor		513,386
Inland Freight oharges-Export		379,977
Terminal Handling Charges-Export		311,482
Others		834,723
Total	$	5,680,378

99

NAN YA PLASTICS CORPORATION

Statement of administrative expenses For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Items		Amount
Indirect Labor	$	3,084,676
Computer Usage Fee		315,275
Research and Development Expenses		569,882
Others		1,583,179
Total	$	5,553,012