NPC — Annual Report 2024

Dec 10, 2024

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Stock Code:1303

NAN YA PLASTICS CORPORATION

Financial Statements

With Independent Auditors’ Report For the Years Ended December 31, 2024 and 2023

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 material 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) Significant 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

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KPMG 台北市110615信義路5段7號68樓(台北101大樓) 電 話 Tel + 886 2 8101 6666 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, 傳 真 Fax + 886 2 8101 6667 Xinyi Road, Taipei City 110615, Taiwan (R.O.C.) 網 址 Web kpmg.com/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 comprise the balance sheets as of December 31, 2024 and 2023, the statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the financial statements, including a summary of material accounting policies.

In our opinion, based on our audits and the reports 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, 2024 and 2023, 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 audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of 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 Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Based on our audits and the reports 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 of the financial statements.

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" for information related to valuation of inventories of the financial statements.

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.

3-2

Other Matter

We did not audit the financial statements of certain investee companies, which represented investments 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 21.32% and 21.42% of total assets at December 31, 2024 and 2023, respectively, and the related share of profit of subsidiaries, associates and joint ventures accounted for using the equity method constituting 28.46% and 46.93% of total profit before tax for the years ended December 31, 2024 and 2023, 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 Standards on Auditing of 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 the Standards on Auditing of the Republic of China, we exercise professional judgment and 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 Ko, Hui-Chih and Chen, Chun-Kuang.

KPMG

Taipei, Taiwan (Republic of China) March 11, 2025

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, 2024 and 2023

(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 Trade receivables, net (notes 6(d) and (v)) 1180 Trade receivables due from related parties (notes 6(d), (v) and 7) 1200 Other receivables (notes 6(e), (g) and (v)) 1210 Other receivables due from related parties (notes 6(e), (v) and 7) 130X Inventories (note 6(f)) 1470 Other current assets (notes 8) Total current assets Non-current assets: 1517 Non-current financial assets at fair value through other comprehensive income (notes 6(c) and (v)) 1550 Investments accounted for using equity method (notes 6(g), 7 and 8) 1600 Property, plant and equipment (notes 6(h) and 7) 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 (notes 8) Total non-current assets Total assets	December 31, 2024 Amount % $ 11,331,633 2 1,846,201 - 14,301,342 3 1,385,457 - 10,516,489 2 3,996,832 1 1,308,739 - 300,000 - 25,621,023 5 3,722,310 1 74,330,026 14 20,091,157 4 353,001,053 65 81,346,142 15 75,275 - 6,680 - 1,865,927 - 1,512,778 - - - 8,689,715 2 466,588,727 86 $ 540,918,753 100	December 31, 2023 Amount % 2,363,334 - 1,641,598 - 32,101,988 5 1,686,319 - 9,918,335 2 3,218,077 1 1,522,099 - 3,068,195 1 27,694,341 5 2,907,399 1 86,121,685 15 18,621,183 3 372,768,077 66 78,189,372 14 87,698 - 11,396 - 2,188,617 - 1,656,501 - - - 8,781,931 2 482,304,775 85 568,426,460 100 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 trade payables (note 6(v)) 2180 Trade payables to related parties (notes 6(v) and 7) 2200 Other payables 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 (note 6(p)) 2580 Non-current lease liabilities (notes 6(n), (v), (y) and 7) 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(note 6(q)): 3110 Ordinary Shares 3200 Capital surplus 3300 Retained earnings 3400 Others Total equity Total liabilities and equity	December 31, 2024	December 31, 2024		December 31, 2023
			Amount	%		Amount % 28,723,900 5 36,304,203 6 5,543,911 1 3,913,076 1 15,905,164 3 22,922 - 9,270,477 2 5,500,000 1 541,081 - 105,724,734 19 56,471,990 9 26,242,602 5 9,692,160 2 66,843 - 9,565,986 2 485,494 - 32,372 - 102,557,447 18 208,282,181 37 79,308,216 13 27,733,533 5 230,801,650 41 22,300,880 4 360,144,279 63 568,426,460 100
			$ 20,154,600 42,850,386 4,212,814 4,631,655 17,085,700 21,712 10,619,603 20,747,315 524,450 120,848,235 45,862,803 12,500,000 6,596,421 55,866 7,919,080 535,209 17,916 73,487,295 194,335,530 79,308,216 27,042,992 229,117,977 11,114,038 346,583,223 $ 540,918,753	4 8 1 1 4 - 2 4 - 24 8 2 1 - 1 - - 12 36 15 5 42 2 64 100

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, 2024 and 2023

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

2024 Amount % 4000 Operating revenues(notes 6(s) and 7) $123,158,129 100 5000 Operating costs(notes 6(f), (o), (t), 7 and 12) 110,897,321 90 Gross profit from operations 12,260,808 10 5910 Less: Unrealized (realized) profit from affiliated companies (note 7) 8,126 - Total gross profit from operations 12,252,682 10 Operating expenses(notes 6(o), (t), 7 and 12): 6100 Selling expenses 4,561,097 4 6200 Administrative expenses 5,707,146 5 6450 Reversal of impairment losses (impairment losses) determined in accordance with IFRS 9 (note 6(d)) (96,344) - Total operating expenses 10,171,899 9 Operating income (Loss) 2,080,783 1 Non-operating income and expenses(notes 6(g), (h), (n), (u) and 7): 7010 Other income 2,422,611 2 7020 Other gains and losses 883,789 1 7050 Finance costs (2,596,783) (2) 7060 Share of profit of subsidiaries, associates and joint ventures accounted for using equity method 949,349 1 7100 Interest income 151,987 - Total non-operating income and expenses 1,810,953 2 Profit before income tax 3,891,736 3 7950 Less: Income tax expense (benefit) (note 6(p)) 551,607 - Profit 3,340,129 3 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 on remeasurements of defined benefit plans 343,800 - 8316 Unrealized losses from investments in equity instruments measured at fair value through other comprehensive income (16,327,188) (13) 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 (6,362,652) (5) 8349 Less : income tax related to components of other comprehensive income that will not be reclassified to profit or loss 68,760 - Total items that may not be reclassified subsequently to profit and loss (22,414,800) (18) 8360 Components of other comprehensive income (loss) that will be reclassified to profit or loss 8361 Exchange differences on translation of foreign financial statements 11,752,674 10 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 (28,921) - 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 11,723,753 10 8300 Other comprehensive income (loss) (10,691,047) (8) 8500 Total comprehensive income (loss) $ (7,350,918) (5) Before Tax After Tax Basic earnings per share(note 6(r)): $ 0.49 0.42

2023 Amount % 121,040,720 100 112,868,334 93 8,172,386 7 (8,409) - 8,180,795 7 4,324,651 4 5,413,891 4 13,723 - 9,752,265 8 (1,571,470) (1) 3,180,105 3 109,358 - (2,353,074) (2) 6,258,952 5 113,514 - 7,308,855 6 5,737,385 5 (572,665) - 6,310,050 5 491,333 - (252,616) - 4,521,092 4 98,267 - 4,661,542 4 (2,209,692) (2) 7,919 - - - (2,201,773) (2) 2,459,769 2 8,769,819 7 Before Tax After Tax 0.72 0.80

Basic earnings per share (note 6(r)) :

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, 2024 and 2023

(Expressed in Thousands of New Taiwan Dollars)

Balance at January 1, 2023 Profit Other comprehensive income (loss) Total comprehensive income (loss) 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 Balance at December 31, 2023 Profit Other comprehensive income (loss) Total comprehensive income (loss) Appropriation and distribution of retained earnings: Legal reserve appropriated Special reserve appropriated Cash dividends of ordinary share Reversal of special reserve Other changes in capital surplus: Other changes in capital surplus Disposal of investments accounted for using equity method Balance at December 31, 2024	Ordinary shares $ 79,308,216 - - - - - - - - 79,308,216 - - - - - - - - - $ 79,308,216	Capital surplus 27,692,943 - - - - - - - 40,590 27,733,533 - - - - - - - (690,541) - 27,042,992	Retained earnings	Retained earnings	Unappropriated retained earnings 53,349,944 6,310,050 756,853 7,066,903 (3,353,520) (4,817,936) (23,792,465) 4,656 21,745 28,479,327 3,340,129 468,308 3,808,437 (709,330) (402,607) (5,551,575) 6,068 31,978 27,487 25,689,785	Items	of other equity interest Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Gains (losses) on hedging instruments 27,101,700 153 - - 3,904,689 7,919 3,904,689 7,919 - - - - - - - - - - 31,006,389 8,072 - - (22,883,108) (28,921) (22,883,108) (28,921) - - - - - - - - - - (27,487) - 8,095,794 (20,849)	Total equity 375,104,590 6,310,050 2,459,769 8,769,819 - - (23,792,465) - 62,335 360,144,279 3,340,129 (10,691,047) (7,350,918) - - (5,551,575) - (658,563) - 346,583,223
			Legal reserve 81,491,665 - - - 3,353,520 - - - - 84,845,185 - - - 709,330 - - - - - 85,554,515	Special reserve 112,663,858 - - - - 4,817,936 - (4,656) - 117,477,138 - - - - 402,607 - (6,068) - - 117,873,677		Exchange differences on translation of foreign financial statements (6,503,889) - (2,209,692) (2,209,692) - - - - - (8,713,581) - 11,752,674 11,752,674 - - - - - - 3,039,093	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income 27,101,700 - 3,904,689 3,904,689 - - - - - 31,006,389 - (22,883,108) (22,883,108) - - - - - (27,487) 8,095,794

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, 2024 and 2023

(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 Reversal of impairment losses (impairment losses) determined in accordance with IFRS 9 Net gains on financial assets 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 Gains on disposal of property, plant and equipment Property, plant and equipment transferred to expenses Gain on disposal of investments accounted for using equity method Unrealized losses from affiliated companies Unrealized foreign exchange (gains) losses Total adjustments to reconcile profit (loss) Changes in operating assets and liabilities: Decrease in notes receivable (Increase) decrease in trade receivables (including related parties) Decrease (increase) in other receivables Decrease (increase) in inventories (Increase) decrease in other current assets Total changes in operating assets Decrease in notes and trade payables (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 Disposal of investments accounted for using equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease in refundable deposits Decrease (increase) in other receivables due from related parties Increase in other non-current assets Net cash flows used in investing activities Cash flows from (used in) financing activities: Decrease in short-term borrowings Increase in short-term notes and bills payable Proceeds from issuing bonds Repayments of bonds Proceeds from long-term borrowings Repayments of long-term borrowings Increase in guarantee deposits Payment of lease liabilities (Decrease) 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	2024 $ 3,891,736 6,851,325 411,529 (96,344) (204,603) 2,596,783 (151,987) (736,402) (949,349) (19,366) 94 (3,934) 8,126 (177,809) 7,528,063 305,348 (1,146,828) 212,482 527,332 (814,911) (916,577) (645,375) (213,530) (16,631) (1,303,106) (2,178,642) (3,095,219) 4,432,844 8,324,580 152,864 28,710,636 (2,695,543) (1,890,727) 32,601,810 3,484 (2,569,646) 3,934 (4,597,489) 23,855 72,157 2,768,195 (4,067,305) (8,362,815) (8,569,449) 6,600,000 - (9,275,000) 29,800,000 (28,300,000) 49,715 (24,491) (8,257) (5,615,258) (15,342,740) 72,044 8,968,299 2,363,334 $ 11,331,633	2023 5,737,385 7,123,321 735,462 13,723 (78,878) 2,353,074 (113,514) (1,770,576) (6,258,952) (57,570) 282 - (8,409) 280,117 2,218,080 3,371 548,886 (666,805) (456,613) 688,394 117,233 (532,147) 3,089 30,160 (1,663,964) (2,162,862) (2,045,629) 172,451 5,909,836 113,540 14,209,816 (2,366,074) (3,450,667) 14,416,451 6,847 (2,048,600) - (5,163,679) 74,303 99,286 (633,591) (5,007,065) (12,672,499) (7,773,659) 900,000 12,979,826 (11,575,000) 26,250,000 (6,500,000) 29,820 (22,912) 38,385 (23,833,140) (9,506,680) (27,107) (7,789,835) 10,153,169 2,363,334

See accompanying notes to financial statements.

8

(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, 2024 and 2023

(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 issuance by the Board of Directors on March 11, 2025.

(3) New standards, amendments and interpretations adopted

• (a) The impact of the IFRS Accounting Standards endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted.

The Company has initially adopted the following new amendments, which do not have a significant impact on its financial statements, from January 1, 2024:

• ●Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”

• ●Amendments to IAS 1 “Non-current Liabilities with Covenants”

• ●Amendments to IAS 7 and IFRS 7 “Supplier Finance Arrangements”

• ●Amendments to IFRS 16 “Lease Liability in a Sale and Leaseback”

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

The Company assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2025, would not have a significant impact on its financial statements:

• ●Amendments to IAS21 “Lack of Exchangeability”

(Continued)

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NAN YA PLASTICS CORPORATION Notes to the 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 IFRS 18 “Presentation and Disclosure in Financial Statements”

Content of amendment Effective date per IASB The new standard introduces three categories of income and expenses, two income statement subtotals and one single note on management performance measures. The three amendments, combined with enhanced guidance on how to disaggregate information, set the stage for better and more consistent information for users, and will affect all the entities. January 1, 2027

• ●A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined ‘operating profit’ subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company’ s main business activities.

• ●Management performance measures (MPMs): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS Accounting Standards.

• ●Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes.

(Continued)

10

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

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

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

• ●Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”

• ●IFRS 17 “ Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”

• ●IFRS 19 “Subsidiaries without Public Accountability: Disclosures”

• ●Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”

• ●Annual Improvements to IFRS Accounting Standards—Volume 11

• ●Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”

(4) Summary of material accounting policies:

The material 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 financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as "the Regulations").

• (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)

11

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 currencies 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)

12

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

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

The Company classifies the asset 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 normal operating cycle;

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

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

• (iv) The asset is cash or a cash equivalent (as defined in IAS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

The Company classifies the liability as current under one of the following criteria, and all other liabilities are classified as non-current.

• (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 the right at end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period.

• (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)

13

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)

14

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 (e.g. financial assets held for trading and those that are managed and whose performance is evaluated on a fair value basis) are measured at FVTPL, including derivative financial assets. Trade receivables that the Company intends to sell immediately or in the near term are measured at FVTPL; however, they are included in the ‘trade receivables’ line item. 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.

(Continued)

15

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

• 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.

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.

(Continued)

16

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

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.

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.

(Continued)

17

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

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.

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.

(Continued)

18

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

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.

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.

(Continued)

19

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

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.

(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 (i.e 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.

(Continued)

20

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

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 considered 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.

• (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 as 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 as necessary.

(Continued)

21

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(l) Lease

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

(i) 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 the 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.

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

(Continued)

22

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

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.

(ii) As a lessor

When the Company determines whether the lease is a finance lease or an operating leases at commencement date of the contract. 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.

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’.

(Continued)

23

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(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, are recognized in profit or loss as incurred.

• (iii) Amortization

Amortization is calculated as 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 as necessary.

(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.

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.

(Continued)

24

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(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, 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 expects all customer contracts will transfer goods or services to customers at intervals of no more than one year, as well as payment by the customer. 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 the incremental costs of obtaining a contract with a customer as an asset 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.

The Company applies the practical expedient to recognize the incremental costs of obtaining a contract as an expense when the amortization period of the asset is in one year.

(Continued)

25

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(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.

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.

(Continued)

26

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

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.

The Company has determined that the global minimum top-up tax is an income tax where the Cpmpany is required to pay based on IAS 12 Pillar Two. Therefore, the Company has applied the deferred tax accounting based on the temporary mandatory relief policy. Due to the impacts of the top-up tax, the income tax incurred by the Company during the year will be recognized as current tax.

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 at the time of the transaction (i) affects neither accounting nor taxable profits (losses) and (ii) does not give rise to equal taxable and deductible temporary differences;

• (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)

27

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, 2024, thus no additional information will be disclosed herein.

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

In preparing these financial statements, management has made judgments and estimates about the future, including climate-related risks and opportunities, 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.

Estimates and underlying assumptions are reviewed on an ongoing basis and are consistent with the Company’s risk management and climate-related commitments where appropriate. Revisions to estimates are recognised prospectively in the period of the change and future periods.

(Continued)

28

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the consolidated 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) Evaluation of inventories

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) Measurement of defined benefit obligations

Accrued pension liabilities and resulting pension expenses under defined benefit pension plans are calculated using the Projected Unit Credit Method. Actuarial assumptions comprise the discount rate, rate of employee turnover, future salary increase rate, etc. Changes in economic circumstances and market conditions will affect these assumptions and may have a material impact on the amount of the expense and the liability. Refer to note 6(o) for further description of the actuarial assumptions and sensitivity analysis.

• (c) Measurement of fair value

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:

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

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

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

Please refer to note 6(v), financial instruments, for assumptions used in measuring fair value.

(Continued)

29

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(6) Explanation of significant accounts:

(a) Cash and Cash Equivalents

Cash on hand Cash in banks Time deposits Cash equivalents Cash and cash equivalents	December 31, 2024 $ 540 2,798,759 6,232,443 2,299,891 $ 11,331,633	December 31, 2023 101 2,363,233 - - 2,363,334

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

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

December 31, 2024 Financial assets designated as at fair value through profit or loss： Funds $ 1,846,201 Remeasurement at fair value recognized in profit or loss is disclosed in note 6(u). Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income - current December 31, 2024 Equity instruments at fair value through other comprehensive income : Shares of stocks of listes companies $ 14,301,342 Financial assets at fair value through other comprehensive income- non-current December 31, 2024 Equity instruments at fair value through other comprehensive income： Shares of stocks of unlisted companies $ 20,091,157	December 31, 2023
	1,641,598
	December 31, 2023
	32,101,988
	December 31, 2023
	18,621,183

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

(Continued)

30

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

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

• 1) 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.

• 2) 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, 2024 and 2023.

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

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

(d) Notes and trade receivables

Notes receivable from operating activities Trade receivables-measured as amortized cost Trade receivables-fair value through profit or loss Overdue receivables Less: Loss allowance	December 31, 2024 $ 1,392,380 14,559,796 2,383 1,504 (57,285) $ 15,898,778	December 31, 2023 1,697,728 13,263,928 12,651 2,053 (153,629) 14,822,731

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, 2024 and 2023. To measure the expected credit losses, accounts 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 were determined as follows:

Current 1 to 3 months past due 3 to 6 months past due 6 to 12 months past due More than 1 year past due	December 31, 2024	December 31, 2024
	Gross carrying amount $ 15,855,266 57,400 4,521 33,857 5,019 $ 15,956,063	Weighted- average loss rate 0.10% 13.55% 57.72% 75.00% 100%	Loss allowance provision
			16,484 7,779 2,609 25,394 5,019
			57,285

(Continued)

31

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

Current 1 to 3 months past due 3 to 6 months past due 6 to 12 months past due More than 1 year past due	December 31, 2023	December 31, 2023
	Gross carrying amount $ 14,843,140 40,667 4,121 4,997 83,435 $ 14,976,360	Weighted- average loss rate 0.23% 68.96% 88.56% 94.98% 100%	Loss allowance provision
			33,755 28,044 3,649 4,746 83,435
			153,629

The movements in the allowance for notes and trade receivables were as follows:

Balance at January 1, 2024 and 2023 Impairment (gains) losses recognized Balance at December 31, 2024 and 2023	For the years ended December 31	For the years ended December 31
	2024 $ 153,629 (96,344) $ 57,285	2023
		139,906 13,723
		153,629

As of December 31, 2024 and 2023, notes and trade receivable which were overdue or under legal proceedings amounted to $1,504 and $2,053, respectively. Such receivables were reclassified to overdue receivables under other assets and provided with a full impairment loss provision.

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, 2024 and 2023, the outstanding accounts receivable factoring transactions between the Company and the financial institutions were as follows:

EXPAFOL S.L. EXPAFOL S.L. Gold Circuit Electronics, Ltd	December 31, 2024	December 31, 2024
	Purchaser Factoring Balance Factoring Line Advanced Amount HSBC Bank $ 2,383 USD 500 - December 31, 2023	Advanced Amount -	Range of Interest Rate Guarantee project - None
	Purchaser Factoring Balance Factoring Line HSBC Bank $ 2,495 USD 500 E. Sun Bank $ 10,156 150,000	Advanced Amount -	Range of Interest Rate Guarantee project - None - None
		-

(e) Other receivables

Other receivables-other Other receivables-loans to associates Less: Loss allowance Total	December 31, 2024 $ 1,308,739 300,000 - $ 1,608,739	December 31, 2023
		1,522,099 3,068,195 -
		4,590,294

(Continued)

32

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

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, 2024 and 2023, 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, 2024 $ 6,820,359 7,027,333 5,389,892 5,937,081 107 253,781 17,889 174,581 $ 25,621,023	December 31, 2023
		7,246,520 6,991,200 7,178,348 5,044,550 3,687 996,505 20,197 213,334
		27,694,341

The details of the operating costs were as follows:

The details of the operating costs were as follows:
Inventory that has been sold Write-down of inventories (Reversal of write-downs) Unallocated production overheads	For the years ended December 31 2024 2023 $ 106,400,372 107,312,526 23,318 (261,856) 4,473,631 5,817,664 $ 110,897,321 112,868,334
	2024 $ 106,400,372 23,318 4,473,631 $ 110,897,321

As of December 31, 2024 and 2023, 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 at the reporting date were as follows:

Subsidiaries Associates	December 31, 2024 $ 191,314,758 161,686,295 $ 353,001,053	December 31, 2023
		203,900,568 168,867,509
		372,768,077

(Continued)

33

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(i) Subsidiaries

For the years ended December 31, 2024 and 2023, the Company’s share of net income in its subsidiaries was as follows:

The Company’s share of net income in its subsidiaries	For the years ended December 31	For the years ended December 31
	2024 $ 790,389	2023
		2,743,798

Please refer to the consolidated financial statements for the year ended December 31, 2024 for further information.

• (ii) Associates

For the years ended December 31, 2024 and 2023, the Company’ s share of net income of associates was as follows:

associates was as follows:
The Company’s share of net income of associates	For the years ended December 31
	2024 $ 158,960	2023
		3,515,154

• 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, 2024 and 2023, 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 please refer to note 7.

• 4) In August 2024, the Company purchased the shares of Nanya Photonics Incorporation at an amount of $69,646, resulting in its shareholding to increase from 23.02% to 29.01%.

• 5) In May 2024, the Company participated in the capital increase by cash of its associate company, Formosa Smart Energy Tech Corporation, with a total investment amounting to $2,500,000. The shareholding ratio remained unchanged.

• 6) In March 2024, the Company disposed its holdings in Formosa Fairway Corporation, at the fair value and net disposal amounting to $0 and $3,934, respectively, resulting in the amount of $3,934 to be recognized as gain on disposal of investment and the amount of $27,487 to be reclassified from accumulated unrealized gains from financial assets measured at FVOCI using equity method to undistributed earnings.

(Continued)

34

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

• 7) In November 2023, the Company participated in the capital increase by cash of Formosa Plastics Construction Corporation, with the total investment amounting to $500,000.

• 8) In August 2023, the Company participated in the capital increase by cash of Formosa Resources Corporation, with the total investment amounting to USD 25,000 thousand (equivalent to $798,600).

• 9) In July 2023, the Company participated in the capital increase by cash of Formosa Smart Energy Tech Corporation, with the total investment amounting to $750,000.

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

Carrying amount of individually insignificant associates' equity Attributable to the Company: Net Income Other comprehensive income (loss) Total comprehensive income (loss)	December 31, 2024 December 31, 2023 $ 161,686,295 168,867,509 For the years ended December 31 2024 2023 $ 158,960 3,515,154 (3,651,118) 3,698,061 $ (3,492,158) 7,213,215	December 31, 2023 168,867,509
		3,515,154 3,698,061
		7,213,215

(iii) Collateral

As of December 31, 2024 and 2023, the Company provide investment accounted for using equity method as collaterals to any financial institutions or court for its loans; please refer to note 8.

• (h) Property, Plant and Equipment

The cost, depreciation, and impairment of property, plant and equipment of the Company for the years ended December 31, 2024 and 2023 were as follows:

Cost or deemed cost: Balance on January 1, 2024 Additions Disposals Reclassification Balance on December 31, 2024 Balance on January 1, 2023 Additions Disposals Reclassification Balance on December 31, 2023	Land $ 19,093,480 - - 2,613 $ 19,096,093 $ 19,036,558 - (115) 57,037 $ 19,093,480	Building and construction 36,040,535 - (15,582) 975,080 37,000,033 35,007,838 - (800) 1,033,497 36,040,535	Machinery equipment 191,474,102 - (1,326,242) 6,782,514 196,930,374 187,362,186 - (2,621,957) 6,733,873 191,474,102	Transportation equipment 1,034,566 - (25,569) 14,582 1,023,579 1,039,089 - (26,298) 21,775 1,034,566	Other facilities 5,111,495 - (183,021) 365,939 5,294,413 4,894,998 - (89,251) 305,748 5,111,495	Construction in progress 9,608,394 4,597,489 - (2,750,323) 11,455,560 8,682,023 5,163,679 - (4,237,308) 9,608,394	Total 262,362,572 4,597,489 (1,550,414) 5,390,405 270,800,052 256,022,692 5,163,679 (2,738,421) 3,914,622 262,362,572

(Continued)

35

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

Depreciation and impairment loss: Balance on January 1, 2024 Depreciation for the period Disposals Reclassification Balance on December 31, 2024 Balance on January 1, 2023 Depreciation for the period Disposals Reclassification Balance on December 31, 2023 Carrying amounts: Balance on December 31, 2024 Balance on December 31, 2023	Land $ - - - - $ - $ - - - - $ - $ 19,096,093 $ 19,093,480	Building and construction 22,943,787 1,070,552 (13,224) - 24,001,115 21,904,802 1,039,014 (623) 594 22,943,787 12,998,918 13,096,748	Machinery equipment 156,679,285 5,349,682 (1,324,459) (4,666) 160,699,842 153,622,575 5,664,613 (2,606,113) (1,790) 156,679,285 36,230,532 34,794,817	Transportation equipment 932,542 27,583 (25,559) (29,792) 904,774 927,953 30,884 (26,295) - 932,542 118,805 102,024	Other facilities 3,617,586 378,780 (182,589) 34,402 3,848,179 3,339,564 365,487 (88,375) 910 3,617,586 1,446,234 1,493,909	Construction in progress - - - - - - - - - - 11,455,560 9,608,394	Total 184,173,200 6,826,597 (1,545,831) (56) 189,453,910 179,794,894 7,099,998 (2,721,406) (286) 184,173,200 81,346,142 78,189,372

• (i) As of December 31, 2024 and 2023, the Company did not provide any property, plant and equipment as collaterals to any financial institutions or court for its loans.

• (ii) For the years ended December 31, 2024 and 2023, the capitalized interest on borrowings for the purchase of the property, plant and equipment of the Company amounted to $117,147 and $86,677, respectively. The capitalized interest rate ranged from 1.321%~1.400% and 1.168%~1.349% for the years ended December 31, 2024 and 2023, 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 on January 1, 2024 Additions Disposal Balance on December 31, 2024 Balance on January 1, 2023 Additions Disposal Reclassification Balance on December 31, 2023 Accumulated depreciation: Balance on January 1, 2024 Depreciation for the period Disposal Balance on December 31, 2024	Land $ 5,035 3,131 (1,641) $ 6,525 $ 7,790 1,007 (3,430) (332) $ 5,035 $ 3,211 1,509 (1,641) $ 3,079	Building and construction 110,578 9,174 - 119,752 108,130 2,452 (336) 332 110,578 31,590 18,077 - 49,667	Machinery and equipment 15,426 - - 15,426 15,426 - - - 15,426 8,540 5,142 - 13,682	Total 131,039 12,305 (1,641) 141,703 131,346 3,459 (3,766) - 131,039 43,341 24,728 (1,641) 66,428

(Continued)

36

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

Balance on January 1, 2023 Depreciation for the period Disposal Reclassification Balance on December 31, 2023 Carrying amount: Balance on December 31, 2024 Balance on December 31, 2023	Land $ 4,848 1,876 (3,430) (83) $ 3,211 $ 3,446 $ 1,824	Building and construction 15,538 16,305 (336) 83 31,590 70,085 78,988	Machinery and equipment 3,398 5,142 - - 8,540 1,744 6,886	Total 23,784 23,323 (3,766) - 43,341 75,275 87,698

(j) Short-term notes and bills payable

Short-term notes and bills payable Discount on short-term notes and bills payable Total Range of interest rates Short-term borrowings Unsecured short-term loans Unused short-term credit lines Range of interest rate	December 31, 2024 $ 43,000,000 (149,614) $ 42,850,386 1.68%~1.87% December 31, 2024 $ 20,154,600 $ 143,413,255 1.75%~1.90%	December 31, 2023 36,400,000 (95,797) 36,304,203 1.42%~1.57% December 31, 2023 28,723,900 140,950,825 1.62%~1.69%

(k) Short-term borrowings

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

(l) Long-term borrowings

Unsecured long-term loans Less : current portion Total Unused long-term credit lines Unsecured long-term loans Less : current portion Total Unused long-term credit lines		December 31, 2024 Interest rate Expiration Amount 1.7500%~1.9700% 2025~2027 $ 33,247,315 (20,747,315) $ 12,500,000 $ 11,500,000 December 31, 2023	December 31, 2024 Interest rate Expiration Amount 1.7500%~1.9700% 2025~2027 $ 33,247,315 (20,747,315) $ 12,500,000 $ 11,500,000 December 31, 2023
	Currency	Interest rate
	TWD
	Currency	Interest rate	Expiration Amount 2024~2025 $ 31,742,602 (5,500,000) $ 26,242,602 $ 5,000,000
	TWD	1.6250%~1.7895%

(Continued)

37

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

• (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

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

• (iii) Financial covenants of significant loans and borrowings

The Company entered into a syndicated credit agreement with different financial institutions, with Bank of Taiwan being the lead bank, wherein the Company shall maintain certain financial ratios on the balance sheet date. (i.e. current ratio, debt ratio, etc.) If, however, the Company breach the contract, it should enhance its performance by increasing its cash capital or other means during the improvement period. Otherwise, the loans will be considered due and the Company will be required to pay the remaining amount of loan immediately. As of December 31, 2024, the Company has not breached financial covenants.

• (m) Bonds payable

Domestic unsecured nonconvertible corporate bonds Less: Costs of issuing bonds Less: Current portion Total	December 31, 2024 $ 56,525,000 (42,594) (10,619,603) $ 45,862,803	December 31, 2023 65,800,000 (57,533) (9,270,477) 56,471,990

The terms of domestic corporate bonds as of December 31, 2024 were as follows:

Issued amount Balance, end of year Current portion Issuance date Issuance period Coupon rate Interest payment date Repayment method	The second domestic unsecured nonconvertible corporate bond in 2013	The first domestic unsecured nonconvertible corporate bond in 2014	The first domestic unsecured nonconvertible corporate bond in 2018	The first domestic unsecured nonconvertible corporate bond in 2019
	TWD10,400,000 2,099,320 2,099,320 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 9,992,418 - 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, respectively.	TWD10,500,000 3,723,286 1,524,298 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 4,597,812 1,399,334 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.

(Continued)

38

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

The second domestic The first domestic The first domestic The first domestic unsecured unsecured unsecured unsecured nonconvertible nonconvertible nonconvertible nonconvertible corporate bond corporate bond corporate bond corporate bond in 2019 in 2020 in 2021 in 2023 Issued amount TWD5,100,000 TWD10,000,000 TWD11,500,000 TWD13,000,000 Balance, end of year 3,198,438 8,394,399 11,493,008 12,983,725 Current portion 1,249,390 1,598,933 2,748,328 - Issuance date October 15, 2019 September 24, 2020 June 3, 2021 October 5, 2023 Issuance period 5 years, 7 years and 5 years, 7 years and 5 years and 7 years 5 years and 10 years 10 years 10 years Coupon rate 0.71%, 0.75% and 0.49%, 0.58% and 0.45% and 0.53% 1.57% and 1.77% 0.84% 0.62% Interest payment date October 15 September 24 June 3 October 5 Repayment method Payable in 2 equal Payable in 2 equal Payable in 2 equal Payable in 2 equal installments for each installments for each installments for each installments for each coupon rate in coupon rate in coupon rate in coupon rate in 2023~2024, 2024~2025, 2025~2026 and 2027~2028 and 2025~2026, and 2026~2027, and 2027~2028, 2032~2033, 2028~2029, 2029~2030, respectively. respectively. respectively. respectively.

(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, 2024 $ 21,712 $ 55,866	December 31, 2023
		22,922
		66,843

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 short-term leases	For the years ended December 31 2024 2023 $ 1,121 1,254 $ 61,990 20,920	For the years ended December 31 2024 2023 $ 1,121 1,254 $ 61,990 20,920
		2023
		1,254
		20,920

The amounts recognized in the statement of cash flows were as follows:

Total cash outflow for leases	For the years ended December 31	For the years ended December 31
	2024 $ 87,602	2023
		45,086

(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 8 years, of office space for 2 to 20 years, and of plant for 3 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.

(Continued)

39

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

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.

The lease period for the machinery and equipment leased by the Company is three years. Some of the lease contracts stipulate that the Company will guarantee the residual value of the leased equipment upon expiration of the lease period.

(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, 2024 $ 20,931,556 (13,012,476) $ 7,919,080	December 31, 2023 21,803,944 (12,237,958) 9,565,986

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 $12,983,394 as of December 31, 2024. 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.

(Continued)

40

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

• 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 2024 2023 $ 21,803,944 23,669,544 399,543 468,143 902,615 (397,028) (2,195,813) (1,965,498) 21,267 28,783 $ 20,931,556 21,803,944	For the years ended December 31 2024 2023 $ 21,803,944 23,669,544 399,543 468,143 902,615 (397,028) (2,195,813) (1,965,498) 21,267 28,783 $ 20,931,556 21,803,944
	2024 $ 21,803,944 399,543 902,615 (2,195,813) 21,267 $ 20,931,556
		21,803,944

• 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 2024 2023 $ 12,237,958 11,948,261 143,657 141,555 1,246,415 94,305 944,149 1,453,298 (1,559,703) (1,399,461) $ 13,012,476 12,237,958	For the years ended December 31 2024 2023 $ 12,237,958 11,948,261 143,657 141,555 1,246,415 94,305 944,149 1,453,298 (1,559,703) (1,399,461) $ 13,012,476 12,237,958
	2024 $ 12,237,958 143,657 1,246,415 944,149 (1,559,703) $ 13,012,476
		12,237,958

• 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 2024 2023 $ 137,910 181,729 117,976 144,859 $ 255,886 326,588 For the years ended December 31 2024 2023 $ 192,860 247,436 10,601 13,146 52,425 66,006 $ 255,886 326,588	For the years ended December 31 2024 2023 $ 137,910 181,729 117,976 144,859 $ 255,886 326,588 For the years ended December 31 2024 2023 $ 192,860 247,436 10,601 13,146 52,425 66,006 $ 255,886 326,588
		326,588

(Continued)

41

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

• 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 2024 2023 $ (5,515,397) (5,024,064) (343,800) (491,333) $ (5,859,197) (5,515,397)
	2024 $ (5,515,397) (343,800) $ (5,859,197)

• 6) Actuarial assumptions

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

Discount rate Future salary increase rate	December 31, 2024 December 31, 2023 % 1.45 % 1.25 % 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 $943,636.

The weighted-average lifetime of the defined benefits plans is 5.3 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, 2024 and 2023 shall be as follows:

December 31, 2024 Discount rate ( 0.25% variation) Future salary increasing rate ( 1.00% variation) December 31, 2023 Discount rate ( 0.25% variation) Future salary increasing rate ( 1.00% variation)	Influences of defined benefit obligations
	Increase Decrease $ (145,701) 149,508 664,112 (614,582) (180,057) 185,097 811,832 (745,440)

(Continued)

42

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

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 2024 and 2023.

(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 Labor Insurance amounted to $313,243 and $310,598 for the years ended December 31, 2024 and 2023, respectively.

(p) Income taxes

(i) Income tax expense (benefit)

The components of income tax expense for 2024 and 2023 were as follows:

The components of income tax expense for 2024 and 2023	were as follows:	were as follows:
Current income tax expense (benefit) Current period Adjustment for prior periods Deferred tax expense Origination and reversal of temporary differences Total income tax expense (benefit)	For the years ended December 31 2024 2023 $ 2,879,709 18,712 513,707 18,474 (2,841,809) (609,851) $ 551,607 (572,665)
	2024 $ 2,879,709 513,707 (2,841,809) $ 551,607
		(572,665)

The amount of income tax recognized in other comprehensive income for 2024 and 2023 were as follows:

as follows:
Items that will not be reclassified subsequently to profit or loss: Remeasurement from defined benefit plans	For the years ended December 31 2024 2023 $ 68,760 98,267
	2024 $ 68,760

(Continued)

43

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

Reconciliation of income tax and profit before tax for 2024 and 2023 were as follows:

	For	the years ended	December 31
		2024	2023
Profit excluding income tax	$	3,891,736	5,737,385
Income tax using the Company's domestic tax rate	$	778,347	1,147,477
Effect of tax rates in foreign jurisdiction		(7,443)	(217,766)
Tax effect on tax-exempt dividend income		(143,654)	(354,115)
Tax effect on unrecognized temporary differences		(503,961)	815,559
Tax-exempt income		(40,921)	(26,650)
Income tax expense arising from investment income in associates
and joint ventures		182,692	(87,915)
Tax effect on investment income recognized under equity method		(208,382)	(1,905,392)
Differences between estimated and actual income tax and income
tax adjustments on prior years		513,707	18,474
Undistributed earnings additional tax		-	18,711
Other income tax adjustments		(18,778)	18,952
Income tax expense (benefit)	$	551,607	(572,665)

(ii) Deferred tax assets and liabilities

Recognized deferred tax assets and liabilities

Movement in the amount of deferred tax assets and liabilities for 2024 and 2023 were as follows:

Deferred tax liabilities:

Balance on January 1, 2024 Recognized in profit or loss Balance on December 31, 2024 Balance on January 1, 2023 Recognized in profit or loss Balance on December 31, 2023	Foreign investment income recognized under equity method $ 9,475,902 (3,072,765) $ 6,403,137 $ 10,435,185 (959,283) $ 9,475,902	Others 216,258 (22,974) 193,284 250,269 (34,011) 216,258	Total
			9,692,160 (3,095,739) 6,596,421 10,685,454 (993,294) 9,692,160

(Continued)

44

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

Deferred tax assets:

Defined benefit plans Balance on January 1, 2024 $ 1,913,197 Recognized in profit or loss (260,621) Recognized in other comprehensive income (68,760) Balance on December 31, 2024 $ 1,583,816 Balance on January 1, 2023 $ 2,344,257 Recognized in profit or loss (332,793) Recognized in other comprehensive income (98,267) Balance on December 31, 2023 $ 1,913,197	Idle capacity 121,081 (16,404) - 104,677 151,341 (30,260) - 121,081	Others 154,339 23,095 - 177,434 174,729 (20,390) - 154,339	Total 2,188,617 (253,930) (68,760) 1,865,927 2,670,327 (383,443) (98,267) 2,188,617

(iii) Assessment of tax

The Company’s tax returns for the year through 2022 were assessed by the ROC authorities.

(iv) Global minimum top-up tax

As of December 31, 2024, there have been legislative or substantive legislative enactments on supplementary taxes in certain country where the location of operations; however no related deferred income taxes have been recognized. Although the retrospective application of － Amendments to IAS 12 "International Tax Reform Pillar Two Model Rules" has no impact on its consolidated financial statements, the Company is closely monitoring the legislative developments related to the introduction of the Global minimum top-up tax in the jurisdictions where it operates.

The Company has applied the deferred tax accounting based on the temporary mandatory relief policy. Due to the impacts of the top-up tax, the income tax incurred by the Group during the year will be recognized as current tax. (see Note 4 (r)).

(q) Capital and other equity

As of December 31, 2024 and 2023, 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 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, 2024 $ 8,997,136 74,474 17,971,382 $ 27,042,992	December 31, 2023 8,997,136 74,474 18,661,923 27,733,533 (Continued)

45

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

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. According to Rulering by FSC, 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 $6,111,201 and $6,105,133 as of December 31, 2024 and 2023, respectively.

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 prior period 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.

(Continued)

46

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

3) Earnings distribution

According to the Company’s Articles of Association, the Company’s annual net earnings, after providing for income tax and covering the losses of previous years, should first be set aside for legal reserve at the rate of 10% thereof. However, this is not the case when the accumulated legal reserve has reached the amount of paid-in capital of the Company. If necessary, may set aside a special reserve. If there is any unappropriated earnings in the current year, the Board of Directors shall prepare a proposal for the distribution of dividends to shareholders, of which the proposal for cash dividends is authorized to be distributed by the Board of Directors with the attendance of at least two-thirds of the directors and the resolution of a majority of the directors who attend the meeting, and shall be reported to the shareholders' meeting; the proposal for stock dividends shall be submitted to the shareholders' meeting for resolution. Special reserve referred to in the preceding paragraph includes reserve for special purposes, the profit accounted for using equity method, and net appraisal profit recognized for financial instruments transactions. However, when the accumulated amount decreases, special reserve shall be reduced by the same amount, limited to the amount listed in this item, and other special reserve set aside in accordance with laws.

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.

The amounts of cash dividends for the 2023 and 2022 earnings distribution had been approved and proposed by the board meeting held on March 12, 2024 and March 8, 2023, respectively; while other items of the 2023 and 2022 earnings distribution had been approved by the stockholders' meeting held on June 19, 2024 and May 31, 2023, as follows:

ollows:
Dividends per share: Cash dividends (dollars)	2023 $ 0.70	2022
		3.00

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)

47

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(iii) Other equity accounts (net of tax)

Balance at January 1, 2024 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 investments accounted for using equity method Balance at December 31, 2024 Balance at January 1, 2023 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 at December 31, 2023	Exchange differences on translation of foreign financial statements $ (8,713,581) 11,752,674 - - - - $ 3,039,093 $ (6,503,889) (2,209,692) - - - $ (8,713,581)	Unrealized gains (losses) on financial assets at fair value through other comprehensive income 31,006,389 - (16,327,188) (6,555,920) - (27,487) 8,095,794 27,101,700 - (252,616) 4,157,305 - 31,006,389	Gains (losses) on hedging instruments 8,072 - - - (28,921) - (20,849) 153 - - - 7,919 8,072	Total 22,300,880 11,752,674 (16,327,188) (6,555,920) (28,921) (27,487) 11,114,038 20,597,964 (2,209,692) (252,616) 4,157,305 7,919 22,300,880

(Continued)

48

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(r) Earnings Per Share

The basic earnings per share for the years ended December 31, 2024 and 2023 were calculated on profit attributable to ordinary shareholders of the Company of $3,340,129 and $6,310,050, respectively, and weighted average number of outstanding shares of stock were 7,930,822 thousand ordinary shares, were calculated as follows:

• (i) Profit attributable to ordinary shareholders

For the years ended December 31 2024 2023 Profit attributable to ordinary shareholders $ 3,340,129 6,310,050 Weighted average number of outstanding ordinary shares For the years ended December 31 2024 2023 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	For the years ended December 31	For the years ended December 31	For the years ended December 31	For the years ended December 31	For the years ended December 31
				2023
				6,310,050
			2024 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, 2024	the year ended December 31, 2024	the year ended December 31, 2024
	Plastics industry $ 17,756,954 1,008,236 7,187,047 $ 25,952,237 $ 2,838,809 2,893,568 5,701,892 - - - - - - - - - 14,517,968 $ 25,952,237	Chemical industry 17,635,347 8,079,038 13,216,214 38,930,599 - - - 5,403,921 8,965,258 5,359,818 - - - - - - 19,201,602 38,930,599	Electronic industry 9,056,214 10,972,496 12,252,854 32,281,564 - - - - - - 10,607,802 9,596,002 - - - - 12,077,760 32,281,564	Polyester industry 10,727,168 1,311,733 7,396,951 19,435,852 - - - - - - - - 2,911,689 3,929,574 7,091,982 - 5,502,607 19,435,852	Other industries 5,923,022 145,727 489,128 6,557,877 - - - - - - - - - - - 6,081,505 476,372 6,557,877	Total 61,098,705 21,517,230 40,542,194
						123,158,129
						2,838,809 2,893,568 5,701,892 5,403,921 8,965,258 5,359,818 10,607,802 9,596,002 2,911,689 3,929,574 7,091,982 6,081,505 51,776,309
						123,158,129

(Continued)

49

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, 2023	the year ended December 31, 2023	the year ended December 31, 2023
	Plastics industry $ 17,132,040 1,066,146 6,207,489 $ 24,405,675 $ 2,706,802 2,528,256 5,636,322 - - - - - - - - - 13,534,295 $ 24,405,675	Chemical industry 19,433,610 6,810,589 13,372,086 39,616,285 - - - 5,390,338 8,327,270 3,952,669 - - - - - - 21,946,008 39,616,285	Electronic industry 9,109,219 8,381,855 13,644,814 31,135,888 - - - - - - 9,434,937 10,575,383 - - - - 11,125,568 31,135,888	Polyester industry 9,883,858 1,433,980 7,513,523 18,831,361 - - - - - - - - 2,900,713 5,183,439 5,849,635 - 4,897,574 18,831,361	Other industries 6,305,900 126,994 618,617 7,051,511 - - - - - - - - - - - 6,574,903 476,608 7,051,511	Total 61,864,627 17,819,564 41,356,529
						121,040,720
						2,706,802 2,528,256 5,636,322 5,390,338 8,327,270 3,952,669 9,434,937 10,575,383 2,900,713 5,183,439 5,849,635 6,574,903 51,980,053
						121,040,720

(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.

The estimated amounts of employee compensation for the fiscal years 2024 and 2023 are $3,896 thousand and $5,743 thousand, respectively. These amounts are based on the Company's pre-tax net profit for the respective periods, before deducting employee compensation, multiplied by the percentage specified in the Company's articles of association. These amounts are reported as operating costs or operating expenses for the fiscal years 2024 and 2023. If there is any difference between the actual distribution amount in the following year and the estimated amount, it will be treated as a change in accounting estimates and the difference will be recognized in the profit or loss of the following year.

The amounts, as stated in the financial statements, are identical to those of the actual distributions for 2024 and 2023.

(Continued)

50

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(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 (ii) Other income The details of other income were as follows: Dividend income Other income (iii) Other gains and losses The details of other gains and losses were as follows: Gains on disposal of property, plant and equipment Gains on disposal of investment Foreign currency exchange gains Gains on financial assets at fair value through profit or loss Disater losses Others (iv) Finance costs The details of finance costs were as follows: Interest expense Less: interest capitalized	2024 $ 102,568 49,419 $ 151,987 2024 $ 736,402 1,686,209 $ 2,422,611 2024 $ 19,366 3,934 1,039,981 204,603 (241,332) (142,763) $ 883,789 2024 $ 2,713,930 (117,147) $ 2,596,783	2023 41,271 72,243 113,514 2023 1,770,576 1,409,529 3,180,105 2023 57,570 - 114,959 78,878 - (142,049) 109,358 2023 2,439,751 (86,677) 2,353,074

(Continued)

51

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(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.

(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, 2024 Non-derivative financial liabilities Short-term notes and bills payable $ 42,850,386 Notes and trade payables 4,212,814 Trade payables to related parties 4,631,655 Short-term borrowings 20,154,600 Long-term borrowings (including current portion) 33,247,315 Bonds payable (including current portion) 56,482,406 Lease liabilities 77,578 $ 161,656,754 December 31, 2023 Non-derivative financial liabilities Short-term notes and bills payable $ 36,304,203 Notes and trade payables 5,543,911 Trade payables to related parties 3,913,076 Short-term borrowings 28,723,900 Long-term borrowings (including current portion) 31,742,602 Bonds payable (including current portion) 65,742,467 Lease liabilities 89,765 $ 172,059,924	Contractual cash flows 43,000,000 4,212,814 4,631,655 20,154,600 34,055,291 59,337,148 83,306 165,474,814 36,400,000 5,543,911 3,913,076 28,802,609 32,567,056 69,393,803 96,197 176,716,652	Within 6 months 43,000,000 4,212,814 4,631,655 20,154,600 307,070 4,449,890 12,937 76,768,966 36,400,000 5,543,911 3,913,076 28,802,609 276,884 1,156,180 12,112 76,104,772	6-12 months - - - - 20,899,583 6,845,108 9,736 27,754,427 - - - - 5,775,410 8,900,475 11,838 14,687,723	1-2 years - - - - 230,946 7,871,370 8,185 8,110,501 - - - - 26,514,762 11,294,998 18,757 37,828,517	2-5 years - - - - 12,617,692 32,395,975 15,728 45,029,395 - - - - - 32,281,185 12,690 32,293,875	Over 5 years
						- - - - - 7,774,805 36,720
						7,811,525
						- - - - - 15,760,965 40,800
						15,801,765

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

(Continued)

52

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	December 31, 2024	December 31, 2024
	Foreign Currency $ 555,715 733,685 1,206 47,935 1,985,654 25,348,936 3,937,174,287 27,656 269,878 3,085	Exchange Rate TWD 32.7810 18,216,893 0.2087 153,120 34.0652 41,083 4.5603 218,598 32.7810 65,091,736 4.2027 106,597,472 0.0013 5,075,412 32.7810 906,591 0.2087 56,324 34.0652 105,091

Financial assets Monetary items USD JPY EUR CNY Non-monetary items USD HKD VND Financial liabilities Monetary items USD JPY EUR	December 31, 2023 Foreign Currency Exchange Rate TWD $ 435,549 30.7350 13,386,599 139,526 0.2172 30,305 405 33.9755 13,760 31,637 4.3396 137,292 1,933,840 30.7350 59,436,563 30,485,421 3.9404 120,221,569 4,184,706,161 0.0013 5,301,424 33,411 30.7350 1,026,887 426,909 0.2172 92,725 2,865 33.9755 97,340 (Continued)
	Foreign Currency $ 435,549 139,526 405 31,637 1,933,840 30,485,421 4,184,706,161 33,411 426,909 2,865

53

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, 2024 and 2023 assuming the TWD depreciated or appreciated by 1% against the USD, JPY, EUR and CNY as of December 31, 2024 and 2023 were as follows:

Appreciation in value of 1% Depreciation in value of 1%	For the years ended December 31 2024 2023 $ (175,624) (123,522) 175,624 123,522

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
	2024 2023 foreign exchange gains (losses) foreign exchange gains (losses) $ 1,039,981 114,959
		114,959

(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 $332,500 and $317,500 for the years ended December 31, 2024 and 2023, respectively.

(Continued)

54

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(v) Other market price risks

For the years ended December 31, 2024 and 2023, 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	For the year ended December 31
	2024 2023 Other comprehensive income before tax Other comprehensive income before tax $ 143,013 321,020 $ (143,013) (321,020)
		321,020
		(321,020)

• (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 Trade receivables Total Financial assets at fair value through other comprehensive income Stocks in listed companies Unquoted equity instruments Total		December 31, 2024	December 31, 2024	December 31, 2024
	Carrying amount $ 1,846,201 2,383 $ 1,848,584 $ 14,301,342 20,091,157 $ 34,392,499	Level 1 - - - 14,301,342 - 14,301,342	Fair Value
			Level 2 1,846,201 - 1,846,201 - - -	Level 3 - - - - 20,091,157 20,091,157	Total 1,846,201 -
					1,846,201
					14,301,342 20,091,157
					34,392,499

(Continued)

55

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

Financial assets measured at amortized cost Cash and cash equivalent Notes and trade receivables (including related parties) Other receivables due from related parties Total Financial liabilities at amortized cost Short-term borrowings Short-term notes and bills payable Notes and trade payables (including related parties) Bonds payable (including due within one year) Long-term borrowings (including due within one year) Lease liabilities Total		December 31, 2024	December 31, 2024	December 31, 2024
	Carrying amount $ 11,331,633 15,896,395 1,608,739 $ 28,836,767 $ 20,154,600 42,850,386 8,844,469 56,482,406 33,247,315 77,578 $ 161,656,754	Level 1 - - - - - - - - - - -	Fair Value
			Level 2 - - - - - - - - - - -	Level 3 - - - - - - - - - - -	Total - - -
					-
					- - - - - -
					-

Financial assets at fair value through profit or loss Financial assets designated as at fair value through profit or loss Trade receivables Total Financial assets at fair value through other comprehensive income Stocks in listed companies Unquoted equity instruments Total Financial assets measured at amortized cost Cash and cash equivalent Notes and trade receivables (including related parties) Other receivables due from related parties Total		December 31, 2023	December 31, 2023	December 31, 2023
	Carrying amount $ 1,641,598 12,651 $ 1,654,249 $ 32,101,988 18,621,183 $ 50,723,171 $ 2,363,334 14,810,080 4,590,294 $ 21,763,708	Level 1 - - - 32,101,988 - 32,101,988 - - - -	Fair Value
			Level 2 1,641,598 - 1,641,598 - - - - - - -	Level 3 - - - - 18,621,183 18,621,183 - - - -	Total 1,641,598 -
					1,641,598
					32,101,988 18,621,183
					50,723,171
					- - -
					-

(Continued)

56

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

Financial liabilities at amortized cost Short-term borrowings Short-term notes and bills payable Notes and trade payables (including related parties) Bonds payable (including due within one year) Long-term borrowings (including due within one year) Lease liabilities Total		December 31, 2023	December 31, 2023	December 31, 2023
	Carrying amount $ 28,723,900 36,304,203 9,456,987 65,742,467 31,742,602 89,765 $ 172,059,924		Fair Value
		Level 1 - - - - - - -	Level 2 - - - - - - -	Level 3 - - - - - - -	Total - - - - - -
					-

• 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

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)

57

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, 2024 and 2023.

• 5) Reconciliation of Level 3 fair values

Balance at January 1, 2024 Total gains and losses recognized: In other comprehensive income Return of capital from capital reduction Balance at December 31, 2024 Balance at January 1, 2023 Total gains and losses recognized: In other comprehensive income Return of capital from capital reduction Balance at December 31, 2023

• 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)

58

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, 2024 Financial assets at fair value through other comprehensive income – unquoted equity instruments December 31, 2023 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 $ 172,178 $ 148,228	Unfavorable change (172,178) (148,228)
	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)

59

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’s 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)

60

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 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, 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)

61

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	December 31, 2024 $ 194,335,530 (11,331,633) $ 183,003,897 $ 346,583,223 % 34.56	December 31, 2023 208,282,181 (2,363,334) 205,918,847 360,144,279 % 36.38

(y) Reconciliation of liabilities arising from financing activities

Balance, January 1, 2024 Changes in cash flows from financing activities Non-cash changes Foreign exchange movement Balance, December 31, 2024 Balance, January 1, 2023 Changes in cash flows from financing activities Non-cash changes Foreign exchange movement Balance, December 31, 2023	Short-term borrowings		Short-term notes and bills payable		Long-term borrowings (including current portion)		Bonds payable (including current portion)		Lease liabilities (including current portion) 89,765 (24,491) 12,304 - 77,578 Lease liabilities (including current portion) 109,217 (22,912) 3,460 - 89,765	Total liabilities arising from financing activities 162,602,937 (9,768,940) (21,861) 149
					31,742,602 1,500,000 4,713 -
					33,247,315		56,482,406			152,812,285
					Long-term borrowings (including current portion)		Bonds payable (including current portion)			Total liabilities arising from financing activities 148,380,070 14,258,255 (32,947) (2,441)
							64,321,492 1,404,826 16,149 -
							65,742,467			162,602,937

(7) Related-party transactions:

(a) Parent company and ultimate controlling party

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

(Continued)

62

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(b) Names and relationship with related parties

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

(Continued)

63

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

Name of related party	Relationship with the Group
Formosa Heavy Industries Corporation	Associates
Formosa smart Energy Tech Corporation	Associates
Nan Ya Photonics Incorporation	Associates
Formosa Industries Corporation	Associates
Formosa Group (Cayman) Limited	Associates
FG Inc.	Associates
Formosa Advanced Technology Corporation	Associates
P.T. Indonesia Nanya Indah Plastics Co.	Joint ventures
Nanya Kyowa Plastics (Nantong) Co., Ltd.	Joint ventures
Formosa Plastics Corporation	Other related parties
Formosa Chemicals and Fiber Corporation	Other related parties
Formosa Taffeta Co., Ltd.	Other related parties
Formosa Ha Tinh (Cayman) Ltd.	Other related parties
Formosa Ha Tinh Steel Corporation	Other related parties
Formosa Industries (Ningbo) Co., Ltd.	Other related parties
Formosa Chemicals and Fiber (Ningbo) Corporation	Other related parties
Formosa Plastics Marine Corporation	Other related parties
Formosa Plastics Corporation U.S.A.	Other related parties
Formosa Ineos Chemicals Corporation	Other related parties
Ming Chi University Of Technology	Other related parties

(c) Significant related-party transactions

• (i) Sales to related parties

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

Subsidiaries Associates and joint ventures Other related parties	For the years ended December 31	For the years ended December 31
	2024 $ 11,057,878 3,060,907 7,910,099 $ 22,028,884	2023
		9,894,756 2,560,757 8,085,563
		20,541,076

(Continued)

64

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

The receivables from related parties were as follows:

Subsidiaries Nan Ya Electronic Materials (Kunshan) Co., Ltd Other subsidiaries Associates and joint ventures Other related parties	December 31, 2024 $ 572,121 1,930,584 751,744 742,383 $ 3,996,832	December 31, 2023
		416,163 1,837,969 347,721 616,224
		3,218,077

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.

For those machinery sold to and engineering services provided to related parties in China and Vietnam, payment is made after the test run of machinery sold. However, for the other items sold to related parties in China and Vietnam, the selling prices are not materially different from those of third-party customers. Payments are collected 30 to 180 days after shipping of these other products.

(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 associates and joint ventures Other related parties Formosa Plastics Corporation Formosa Chemicals and Fiber Corporation Other related parties	For the years ended December 31	For the years ended December 31
	2024 $ 3,355,213 16,904,084 266,736 8,592,039 23,404,477 113,274 $ 52,635,823	2023
		2,839,867 16,673,343 9,322 9,496,629 24,008,251 142,863 53,170,275

(Continued)

65

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

The payables to related parties were as follows:

Subsidiaries Associates and joint ventures Formosa Petrochemical Corporation Other associates and joint ventures Other related parties Formosa Chemicals and Fiber Corporation Formosa Plastics Corporation Other related parties	December 31, 2024 $ 188,685 1,885,496 45,438 1,820,523 683,892 7,205 $ 4,631,239	December 31, 2023
		195,972 998,957 5,365 1,920,188 769,831 22,619
		3,912,932

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, 2024 and 2023 were as follows:

Investee company Subsidiaries Associates and joint ventures Investee company Subsidiaries Associates and joint ventures	For the year ended December	For the year ended December	For the year ended December	31, 2024
	Unrealized sales profit at beginning of period			Unrealized sales profit at end of period
				83,416
				48,565
				31, 2023
	Unrealized sales profit at beginning of period		(Realized) Unrealized Sales Profits (18,106) 9,697	Unrealized sales profit at end of period
	$ 94,450 $ 37,814			76,344
				47,511

(Continued)

66

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(iv) Construction

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

Associates and joint ventures Formosa Heavy Industries Corporation	For the years ended December 31	For the years ended December 31
	2024 $ 601,688	2023
		307,826

As of December 31, 2024 and 2023, there were $416 and $144 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, 2024 and 2023 were as follows:

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
	2024 $ - 3,850,697 121,942 $ 3,972,639	2023
		99,623 5,023,464 115,713
		5,238,800

(vi) Property transactions

• 1) Purchase of property, plant and equipment

The purchase price of property, plant and equipment purchased from related parties were as follows:

Subsidiaries Nan Ya Plastic (Guangzhou) Co., Ltd Associates Nan Ya Photonics Incorporation	December 31, 2024 $ 873 192,375 $ 193,248	December 31, 2023
		- 191,961
		191,961

As of December 31, 2024 and 2023, there was no outstanding balance. For further description of the property, plant, and equipment, please refer to note 6(h).

(Continued)

67

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

• 2) Acquisitions of financial assets

Associate - Formosa Smart Energy Tech Corporation Associates - Formosa Plastics Construction Corporation Associates - Formosa Smart Energy Tech Corporation Associates - Formosa Resources Corporation	Financial Statement Account Investments accounted for using equity method Financial Statement Account Investments accounted for using equity method Investments accounted for using equity method Investments accounted for using equity method	Transaction Shares (in thousands) 250,000 Transaction Shares (in thousands) 50,000 75,000 79,860	Transaction Items For the year ended December 31, 2024 Shares of stock of Formosa Smart Energy Tech Corporation $ 2,500,000 Transaction Items For the year ended December 31, 2023 Shares of stock of Formosa Plastics Construction Corporation $ 500,000 Shares of stock of Formosa Smart Energy Tech Corporation 750,000 Shares of stock of Formosa Resources Corporation 798,600 $ 2,048,600

• 3) Disposals of property, plant and equipment

The disposals of property, plant and equipment to related parties are summarized as follows:

follows:
Other related parties	For the years ended December 31, 2024 Disposal price Gain (loss) from disposal $ 350 43	For the years ended December 31, 2023
	Disposal price $ 350	Disposal price -	Gain (loss) from disposal
			-

As of December 31, 2024, there was no outstanding balance. Please refer to note 6(h) for the details of property, plant and equipment.

• (vii) Loans to related parties

The loans to related parties were as follows:

Associates and joint ventures Formosa Steel IB Pty Ltd Other related parties Formosa Plastics Marine Corporation Subsidiaries Nan Chung Petrochemical Corporation	Other receivables from related parties	Other receivables from related parties
	December 31, 2024 $ - - 300,000 $ 300,000	December 31, 2023 1,622,500 1,445,695 - 3,068,195

(Continued)

68

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(viii) Endorsements and guarantees

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	December 31, 2024 $ 8,195,250	December 31, 2023
		7,683,750

(ix) 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
	2024 $ 299,912 463,813 $ 763,725	2023
		295,859 436,075
		731,934

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:

Financial Statement Account Other related parties Ming Chi Vniversity of Technology lease liabilities Subsidiaries Nan Ya PCB Corporation lease liabilities Other related parties Formosa Industries Corporation Ming Chi University of Technology Subsidiaries Nan Ya PCB Corporation	December 31, 2024 $ 51,795 11,578 $ 63,373 Interest	December 31, 2023
		55,118 23,604
		78,722
		expen
	For the years ended December 31
	2024 $ - 758 178 $ 936	2023
		2 804 296
		1,102

The rentals charged to related parties are detormined base on the local market prices.

(Continued)

69

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

(d) Key management personnel compensation

Short-term employee benefits

For the years ended December 31	For the years ended December 31
2024 $ 169,082	2023
	166,750

(8) Pledged assets:

The carrying values of pledged assets were as follows:

Pledged assets	Object	Usage	December 31, 2024 $ 452,128 - 73,602 16,500 $ 542,230	December 31, 2023 1,008,691 58,099 - -
Current financial assets at fair value through other comprehensive income－stock of Formosa Plastics Corporation Investment accounted for using equity method－ stock of Formosa Petrochemical Corporation Other non current assets-cash in banks Other current assets-time deposits Total	Others Others Others Others	The collateral to provisional execution in litigation The collateral to provisional execution in litigation The collateral to provisional execution in litigation The collateral to provisional execution in litigation
				1,066,790

(9) Significant Commitments and contingencies:

(a) Outstanding standby letter of credit (b) Endorsements and guarantees	December 31, 2024 December 31, 2023 $ 196,447 560,222 8,195,250 7,683,750

• (c) Formosa Ha Tinh (Cayman) Ltd. (the Company’s investee) and Formosa Ha Tinh Steel Corporation (a subsidiary of Formosa Ha Tinh (Cayman) Ltd.), each separately signed a syndicated line of credit with a group of financial institutions amounting to USD 4,548,500 thousand and USD 1,953,500 thousand, respectively, for their 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 commit to monitor the operations of both companies to ensure they fulfill their financial obligations.

• (d) Nan Ya Plastics Corporation America (the Company's subsidiary) and Nan Ya Plastics Corporation Texas (a subsidiary of Nan Ya Plastics Corporation America), signed a syndicated line of credit with a group of financial institutions amounting to USD 1,000,000 thousand for their investment and expansion needs. According to the requirement of the consortium, the Company has to offer a letter of support based on its direct and indirect ownership of 100.00% and commit to monitor the operations of both companies to ensure they fulfill their financial obligations.

(Continued)

70

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

• (e) Formosa Industries Corporation, a Company’s investee, signed a syndicated line of credit with a group of financial institutions amounting to USD 200,000 thousand for its operational needs. According to the requirement of the consortium, the Company has to offer a letter of support based on its ownership of 42.50% and commit to monitor the operations of Formosa Industries Corporation to ensure that it completes its financial obligation.

• (f) Formosa Steel IB Pty Ltd. (a subsidiary of Formosa Resources Corporation), signed a syndicated line of credit with a group of financial institutions amounting to USD 1,195,000 thousand, for their operational needs. According to the requirement of the consortium, the Company has to offer a letter of support based on its ownership of 25.00% and commit to monitor the operations of Formosa Steel IB Pty Ltd. to ensure that it completes its financial obligation.

• (g) Formosa Resources Corporation, a Company’s investee company, signed a syndicated line of credit with various banks amounting to USD 430,000 thousand for its operational needs. According to the requirement of the banks, the Company has to offer a letter of support based on its 25.00% direct shareholding in Formosa Resources Corporation, and commit to monitor the operations of Formosa Resources Corporation to ensure that it completes its financial obligation.

• (h) Formosa Resources Australia Pty Ltd. (a subsidiary of Formosa Resources Corporation), signed a syndicated line of credit with various banks amounting to USD 550,000 thousand, for their operational needs. According to the requirement of the banks, the Company has to offer a letter of support based on its 25.00% indirect shareholding in Formosa Resources Australia Pty Ltd., and commit to monitor the operations of Formosa Resources Australia Pty Ltd. to ensure that it completes its financial obligation.

• (i) Litigation between the Company and DBTEL Incorporated(a)

DBTEL Incorporated (DBTEL), a customer of the Company, placed multiple orders for LCD monitors in May 2003. However, DBTEL unexpectedly cancelled partial orders in June 2004. Additionally, DBTEL repeatedly changed the delivery schedule, and even refused to accept some delivery made by the Company, leading to a stock up of both raw materials and finished goods, as well as uncollectible accounts receivable, resulting in the Company to file a lawsuit against DBTEL in the Taiwan High Court on April 6, 2006, demanding for the damage claims of USD 5,392,620 and TWD 100,846,141.

On June 26, 2024, the Taiwan High Court ordered DBTEL to compensate the Company the amounts of USD 1,278,863, plus, USD 2,000,000 and TWD 10,000,000, for principal and interest. In addition, the court granted DBTEL two options in providing for security: (i) for provisional execution, the amount of TWD 22,340,000 is required; (ii) while the payment of TWD 67,000,000 is necessary for dismissal of provisional execution. On the other hand, the court also ruled that the Company has to pay 37% of the litigation costs. Since the Company did not fully agree with the above ruling,it filed an appeal to the Supreme Court. The case is currently in progress and the Company has engaged lawyers to handle the matter.

(Continued)

71

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

• (j) Litigation between the Company and DBTEL Incorporated (b)

DBTEL alleged that during the abovementioned transaction, the Company had delayed payment and had delivered defective goods, which led to losses from the inability to manufacture mobile phones for timely sale and increased customer returns.

As a result, DBEL filed a lawsuit to the Taipei District Court on June 29, 2018, seeking compensation fTor the losses amounting to $10 million, which was subsequently increased to $1 billion. On April 29, 2021, the Taipei District Court ruled in favor of the Company, prompting DBTEL to file an appeal to the Taiwan High Court.

(10) Losses Due to Major Disasters:

On April 7, 2024, a fire broke out at the Company's Linkou plant, causing damage to its equipment and inventory amounting to $241,332, recognized as "other gains and losses". Since the above assets were insured, the Company estimated the above recoverable claim to be $217,199, recognized as "other income".

(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, 2024				For the year ended December 31, 2023
	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	8,929,303 732,433 409,448 - 236,515 6,232,853 391,878	3,761,186 233,452 159,681 32,372 65,014 605,464 19,651	- - - - - 13,008 -	12,690,489 965,885 569,129 32,372 301,529 6,851,325 411,529	9,016,402 755,625 463,182 - 249,190 6,611,129 719,313	3,824,990 235,986 174,004 33,089 66,130 490,374 16,149	- - - - - 21,818 -	12,841,392 991,611 637,186 33,089 315,320 7,123,321 735,462
The company's number of employees and additional information on employee benefits are as follows: For the years ended December 31, 2024 2023 Number of employees 11,904 12,333 Number of non-concurrently employees by directors 9 9 Average employee benefit expenses $ 1,221 1,200 Average employee salary expenses $ 1,067 1,042 Adjustment of average employee salary expenses % 2.40 % (3.52) Remuneration of the supervisors $ - -

(Continued)

72

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

• (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 Article 21 and Article 29 of the R.O.C. Company Act, the Company’s managers will receive a monthly remuneration, performance bonus, annual bonus and managers’ bonus. Also, The Company monthly allocates retirement pension (including both old and new) and welfare payments to their personal accounts in accordance with the provisions of the Company's Pension. Furthermore, an additional remuneration will be provided to managers under exceptional situations, such as executive retirement bonuses, severance payment, etc. Besides, the chairman of the board of directors will propose the adjustment to the remuneration committee after considering and evaluating the overall performance of the manager's responsibilities (including operational effectiveness, financial performance, industrial safety incidents, environmental sustainability, energy saving, etc.) as well as the achievement of the individual's "annual work target".

• (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.

(13) Other disclosures

• (a) Information on significant transactions:

• (i) Loan 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 at the reporting date (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.

(Continued)

73

NAN YA PLASTICS CORPORATION Notes to the Financial Statements

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

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

• (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 financial 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:

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.

• (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, 2024.

74

NAN YA PLASTICS CORPORATION LENDING TO OTHER PARTIES FOR THE YEAR ENDED DECEMBER 31, 2024 (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 0 0 1 1 2 3 3 3 4 5 5	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 Nan Ya Plastics Corporation America Nan Ya Plastics (Hong Kong) Co., Ltd. Wen Fung Industrial Co., Ltd. Wen Fung Industrial Co., Ltd. Wen Fung Industrial Co., Ltd. Nan Ya Plastics (Huizhou) Co., Ltd. Nan Ya Plastics (Xiamen) Co., Ltd. Nan Ya Plastics (Xiamen) Co., Ltd.	Formosa Plastics Group Investment Corp. Wellink Technology Corporation PFG Fiber Glass Corporation Nan Ya Plastics (Hong Kong) Co., Ltd. Formosa Plastics Construction Corporation Nan Chung Petrochemical Corporation Formosa Heavy Industries Corporation Formosa Petrochemical Corporation Formosa Plastics Corporation Formosa Chemicals and Fiber Corporation Formosa Plastics Marine Corporation Formosa Steel IB Pty Ltd Nan Ya Plastics Corporation Texas Nan Ya Plastics Corporation U.S.A. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. Wellink Technology Corporation Formosa Environmental Technology Corporation Formosa Fairway Corporation Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. Xiamen Haicang Investment Group Co., Ltd. Nan Ya Plastics (Zhengzhou) 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 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 YES YES YES YES	100,000 100,000 500,000 500,000 5,200,000 300,000 7,600,000 6,000,000 6,000,000 6,000,000 1,725,695 1,622,500 11,801,160 3,278,100 1,824,140 23,000 60,000 15,000 1,276,898 77,526 95,767	100,000 100,000 500,000 500,000 150,000 300,000 5,700,000 4,500,000 4,500,000 4,500,000 - - - 3,278,100 1,824,140 23,000 60,000 - 1,276,898 77,526 57,004	- - - - - 300,000 - - - - - - - 2,097,403 1,824,140 - 60,000 - 1,276,898 77,526 57,004	- - - - - 2.9% - - - - 1.99433%~2.122345% 1.99433%~2.170171% 6.3908%~6.591% 5.780%~6.604% 0.70% - 1.99433%~2.176365% 1.99433%~1.99433% 2.48%~2.76% 2.76%~2.84% 2.48%~2.84%	2 2 2 2 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 Operating capital Operating capital Operating capital Operating capital	- - - - - - - - - - - - - - - - - - - - -	‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ - ‑ - ‑ ‑ ‑ ‑ ‑ - -	- - - - - - - - - - - - - - - - - - - - -	34,658,322 34,658,322 34,658,322 34,658,322 86,645,806 86,645,806 86,645,806 86,645,806 86,645,806 86,645,806 86,645,806 86,645,806 23,357,428 23,357,428 48,745,061 25,372 101,487 101,487 1,938,136 290,330 290,330	173,291,612 173,291,612 173,291,612 173,291,612 173,291,612 173,291,612 173,291,612 173,291,612 173,291,612 173,291,612 173,291,612 173,291,612 46,714,856 46,714,856 97,490,121 253,717 253,717 253,717 3,876,272 580,660 580,660

75

NAN YA PLASTICS CORPORATION LENDING TO OTHER PARTIES FOR THE YEAR ENDED DECEMBER 31, 2024 (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
6 7 8 9 9 10	Nan Ya Plastics (Nantong) Co., Ltd. China Nantong Huafeng Co., Ltd. Nantong Huafu Plastics Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (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 Draw Textured Yarn (Kunshan) Co., Ltd. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Huizhou) Co., Ltd. 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	YES YES YES YES YES YES	346,587 177,854 50,164 2,093,201 6,521,301 1,085,363	- 177,854 50,164 2,093,201 6,156,473 -	- 177,854 50,164 2,093,201 3,876,298 -	2.76%~2.76% 2.48%~2.76% 2.48%~2.76% 2.48%~2.76% 2.48%~2.92% 2.48%~2.76%	2 2 2 2 2 2	- - - - - -	Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital	- - - - - -	‑ ‑ ‑ ‑ - ‑	- - - - - -	5,763,052 186,013 53,571 30,283,364 30,283,364 6,989,101	11,526,104 372,027 107,142 60,566,728 60,566,728 13,978,201

• 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.

• The Company's authorized loans should not exceed 10% of the its 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 limite

• 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, 2024 (in average) is 32.781(32.122)：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, 2024 (in average) is 4.2027(4.1183)：1.

76

NAN YA PLASTICS CORPORATION GUARANTEES AND ENDORSEMENTS FOR OTHER PARTIES FOR THE YEAR ENDED DECEMBER 31, 2024 (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, 2024	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	The Company	Formosa Group (Cayman) Ltd.	6	225,279,095	8,209,000	8,195,250	8,195,250	-	2.36%	450,558,190	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.

77

NAN YA PLASTICS CORPORATION INFORMATION REGARDING SECURITIES HELD AT THE REPORTING DATE (SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES NOT INCLUDED) DECEMBER 31, 2024 (Expressed in thousands of New Taiwan Dollars)

TABLE 3

TABLE 3
Security Holder	Category and Name of Security	Relationship Between Issuer of Security and the Company which Holds Securities	Account Name	December 31, 2024				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	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 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	4,554 294,793 140,520 3 2 150 4,442 20,471 39,562 16,234 63,717 2,925 1,779 1,769 1,287	1,846,201 10,465,155 3,836,187 8,820,458 560,475 - 249,968 191,372 1,053,347 599,906 1,339,788 455,243 - 21,142 2,447	- 4.63% 2.40% 19.00% 0.51% 0.12% 18.00% 18.00% 17.98% 15.00% 14.99% 12.50% 1.07% 1.04% 0.80%	1,846,201 10,465,155 3,836,187 8,820,458 560,475 - 249,968 191,372 1,053,347 599,906 1,339,788 455,243 - 21,142 2,447	Note 1

78

Security Holder	Category and Name of Security	Relationship Between Issuer of Security and the Company which Holds Securities	Account Name	December 31, 2024	December 31, 2024	December 31, 2024	December 31, 2024	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 PCB Corporation Nan Ya Plastics Corporation America Nan Ya Plastics Corporation America Nan Ya Plastics (Hong Kong) Co., Ltd. Nan Ya Plastics (Hong Kong) Co., Ltd.	Taiwan Aerospace Corp. Guang Yuan Securities Investment Consulting Corporation Mega Growth Capital Venture Formosa Ha Tinh (Cayman) Ltd. Formosa Plastics Corporation Sutton (Bonds) MBIA Insurance Corp. (Preferred Stock) Hua Ya (Dong Ying) Plastics Corp. Hua Ya (Wu Hu) Plastics Corp.	- - - - Other related parties - - - -	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－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	1,070 3,750 1,042 621,178 2,996 - - - -	29,959 38,363 8,951 6,719,738 106,358 426,630 238,233 389,262 321,133	0.79% 3.91% 1.97% 11.43% 0.05% - - 15.00% 15.00%	29,959 38,363 8,951 6,719,738 106,358 426,630 238,233 389,262 321,133

Note 1 ： The Company pledged its shares of Formosa Plastics Corporation of 12,736 thousand common shares amounting to $452,128.

79

NAN YA PLASTICS CORPORATION

INFORMATION REGARDING INDIVIDUAL SECURITIES ACQUIRED OR DISPOSED OF WITH ACCUMULATED AMOUNT EXCEEDING THE LOWER OF TWD300 MILLION OR 20% OF THE CAPITAL STOCK FOR THE YEAR ENDED DECEMBER 31, 2024

(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 Plastics Corporation America The Company	Nan Ya Plastics Corporation Texas Formosa Smart Energy Tech Corporation	Investments accounted for using equity method Investments accounted for using equity method	Nan Ya Plastics Corporation Texas Formosa Smart Energy Tech Corporation	Parent-subsidiary Investments accounted for using equity method	3 175,000	2,738,991 1,733,910	- 250,000	15,675,100 2,500,000	- -	- -	- -	- -	3 425,000	16,109,171 4,174,692

Note 1: The "securities" in this table refer to stocks, bonds, beneficiary certificates, and the marketable securities derived from the above items.

Note 2: Investors who adopt the equity method in the marketable securities must fill these two columns, and the rest may be omitted. Note 3: The accumulated buying and selling amount should be calculated separately according to the market price, whether it reaches $300 million or 20% of the paid-in capital.

80

NAN YA PLASTICS CORPORATION INFORMATION REGARDING ACQUISITION OF INDIVIDUAL REAL ESTATE WITH AMOUNT EXCEEDING THE LOWER OF TWD300 MILLION OR 20% OF THE CAPITAL STOCK FOR THE YEAR ENDED DECEMBER 31, 2024

(Expressed in thousands of New Taiwan Dollars)

TABLE 5

Company Name	Name of Property	Transaction Date (Note 1)	Transaction Amount (Note 2)	Status of Payment	Counter-party	Relationship with the Company	Disclosure of Information on Previous Transfer of Equipment is Required for Related Parties who are also the Counter Parties	Disclosure of Information on Previous Transfer of Equipment is Required for Related Parties who are also the Counter Parties	Disclosure of Information on Previous Transfer of Equipment is Required for Related Parties who are also the Counter Parties	Disclosure of Information on Previous Transfer of Equipment is Required for Related Parties who are also the Counter Parties	References for Determining Price	Purpose of Acquisition and Current Condition	Others
							Owner	Relationship with the Company	Date of Transfer	Amount
Nan Ya Plastics (Ningbo) Co., Ltd. Nan Ya Electronic Materials (Huizhou) Co., Ltd.	BPA process area and finished product silo Construction in progress	2020.7.30 2023.7.14	RMB 257,631 RMB 174,809	RMB 246,396 RMB 60,678	China MCC20 Group Corporaion Ltd. China Construction Seventh Engineering Division. Corp. Ltd.	Unrelated party Unrelated party	- -	- -	- -	- -	Negotiation Negotiation	Plant expansion Plant expansion	None None

Note1：Transaction date refers to the date of contract signing, date of payment, date of consignment trade, date of transfer, dates of boards of directors resolutions, or other date that can confirm the counterpart and monetary amount of the transaction, whichever date is earlier.

Note 2 ： Contract amount.

81

NAN YA PLASTICS CORPORATION

INFORMATION REGARDING RELATED-PARTY TRANSACTIONS FOR PURCHASES AND SALES WITH AMOUNTS EXCEEDING THE LOWER OF TWD 100 MILLION OR 20% OF THE CAPITAL STOCK FOR THE YEAR ENDED DECEMBER 31, 2024

(Expressed in thousands of New Taiwan Dollars)

TABLE 6

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
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 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 Wellink Technology Corporation PFG Fiber Glass Corporation PFG Fiber Glass Corporation 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	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.	Other related parties Other related parties Subsidiaries Associates Associates Associates Other related parties Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Associates Subsidiaries Subsidiaries Other related parties Other related parties Associates Subsidiaries Associates Other related parties Subsidiaries Subsidiaries Parent Subsidiaries Associates Subsidiaries Same chairman Associates Same chairman Subsidiaries Parent Other related parties Other related parties Parent Subsidiaries Other related parties Subsidiaries Other related parties Parent	(Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases (Sales) (Sales) Purchases (Sales) Purchases (Sales) (Sales) Purchases Purchases Purchases Purchases (Sales) (Sales) Purchases Purchases	(2,081,240) (5,310,361) (1,636,724) (1,690,893) (378,179) (615,481) (500,341) (1,179,837) (184,248) (3,904,367) (337,157) (2,544,315) (251,429) (243,692) (782,475) 8,592,039 23,404,477 16,904,084 1,944,133 266,736 106,184 402,037 837,826 1,636,724 4,079,415 (244,226) (4,079,415) 757,021 (401,063) 123,980 (123,980) (1,944,133) 304,070 628,414 1,179,837 133,593 (216,257) (133,593) 5,022,244 184,248	(1.69)% (4.31)% (1.33)% (1.37)% (0.31)% (0.50)% (0.41)% (0.96)% (0.15)% (3.17)% (0.27)% (2.07)% (0.20)% (0.20)% (0.64)% 10.97% 29.89% 21.59% 2.48% 0.34% 0.14% 0.51% 1.07% 17.05% 42.50% (1.12)% (28.12)% 9.80% (2.76)% 1.61% (71.20)% (67.37)% 27.74% 22.12% 41.53% 4.70% (0.67)% (0.42)% 17.18% 0.63%	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 30 days 30 days 30 days O/A150 days 30 days O/A150 days O/A150 days 30 days 30 days 70 days 30 days 60 days 70 days 60 days O/A150 days 30 days 30 days payment within one month O/A105 days payment within one month payment within one month payment within one month payment within one month O/A105 days	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑	130,676 573,097 141,630 210,599 124,739 341,105 38,009 643,932 109,482 766,057 81,741 572,121 54,149 65,302 66,173 (683,892) (1,820,523) (1,885,496) (173,451) (45,438) (6,422) (60,617) (158,752) (141,630) (361,726) 7,861 361,726 (47,428) 46,707 (19,988) 19,988 173,451 (24,788) (44,162) (643,932) (19,355) 612 19,355 (511,937) (109,482)	0.82% 3.60% 0.89% 1.32% 0.78% 2.15% 0.24% 4.05% 0.69% 4.82% 0.51% 3.60% 0.34% 0.41% 0.42% (7.73)% (20.58)% (21.32)% (1.96)% (0.51)% (0.07)% (0.69)% (1.79)% (13.17)% (33.64)% 0.18% 12.34% (5.89)% 1.59% (2.48)% 66.82% 80.21% (23.12)% (5.43)% (79.21)% (2.38)% 0.02% 0.48% (45.10)% (9.65)%
	Formosa Industries Corporation
	Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd. Formosa Plastics Corporation Formosa Chemicals and Fiber Corporation Formosa Petrochemical Corporation PFG Fiber Glass Corporation Formosa Industries Corporation Formosa Ineos Chemicals Corporation Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. 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 Nan Ya PCB (Kunshan) Corporation The Company Formosa Chemicals and Fiber Corporation 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 Plastics Corporation U.S.A. The Company

82

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 America Nan Ya Plastics Corporation America Nan Ya Plastics Corporation Texas Nan Ya Plastics Corporation Texas Nan Ya Plastics Corporation Texas PFG Fiber Glass (Kunshan) Co., Ltd. PFG Fiber Glass (Kunshan) Co., Ltd. PFG Fiber Glass (Kunshan) Co., Ltd. Nan Ya Plastics (Xiamen) Co., Ltd. Nan Ya Electronic Materials (Huizhou) Co., Ltd. Nan Ya Electronic Materials (Huizhou) 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 Electric (Nantong) Co., Ltd. Nan Ya Electric (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 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. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd.	Formosa Chemicals and Fiber Corporation Nan Ya Plastics Corporation Texas Nan Ya Plastics Corporation America Formosa Plastics Corporation U.S.A. Formosa Plastics Corporation U.S.A. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Huizhou) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Formosa Industries (Ningbo) Co., Ltd. The Company PFG Fiber Glass (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. The Company Formosa Industries (Ningbo) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Formosa Industries (Ningbo) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Formosa Chemicals and Fiber (Ningbo) Corporation The Company The Company Nan Ya Electronic Materials (Huizhou) Co., Ltd. Nan Ya PCB (Kunshan) Corporation PFG Fiber Glass (Kunshan) Co., Ltd. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. The Company Nan Ya Electronic Materials (Huizhou) Co., Ltd. PFG Fiber Glass (Kunshan) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd. Nan Ya Electric (Nantong) Co.,Ltd. The Company Nan Ya Electronic Materials (Kunshan) Co., Ltd. Formosa Industries Corporation The Company	Other related parties Subsidiaries Subsidiaries Other related parties Other related parties Subsidiaries Subsidiaries Subsidiaries Other related parties Parent Subsidiaries Subsidiaries Subsidiaries Parent Other related parties Subsidiaries Other related parties Subsidiaries Other related parties Parent Parent Subsidiaries Same chairman Subsidiaries Subsidiaries Parent Subsidiaries Subsidiaries Subsidiaries Subsidiaries Parent Subsidiaries Associates Parent	Purchases Purchases (Sales) (Sales) Purchases (Sales) (Sales) Purchases Purchases Purchases Purchases Purchases (Sales) Purchases Purchases (Sales) (Sales) (Sales) Purchases Purchases (Sales) (Sales) (Sales) (Sales) (Sales) Purchases Purchases Purchases Purchases Purchases Purchases Purchases (Sales) (Sales)	313,922 1,489,012 (1,489,012) (285,566) 777,502 (1,815,896) (364,198) 128,461 121,409 3,904,367 364,198 6,805,308 (145,347) 337,157 899,335 (162,928) (155,664) (4,883,507) 9,856,907 782,475 (402,037) (6,805,308) (757,021) (128,461) (374,902) 2,544,315 145,347 1,815,896 4,883,507 (162,928) 243,692 374,902 (609,667) (837,826)	1.07% 5.10% (18.70)% (3.59)% 14.49% (62.01)% (12.44)% 9.70% 13.75% 30.67% 2.86% 53.46% (1.04)% 8.10% 21.62% (20.15)% (19.25)% (34.23)% 75.33% 5.98% (0.92)% (15.62)% (1.74)% (0.29)% (0.86)% 6.78% 0.39% 4.84% 13.00% (0.43)% 9.50% 14.61% (16.12)% (22.15)%	30 days payment within one month payment within one month payment within one month payment within one month 60 days 60 days 60 days 60 days O/A180 days 60 days 180 days 180 days O/A150 days 60 days 60 days 60 days 60 days 60 days O/A150 days O/A150 days 180 days 30 days 60 days 60 days O/A150 days 180 days 60 days 60 days 60 days O/A150 days 60 days O/A151 days O/A150 days	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑	(77,296) (386,807) 386,807 0 (1,175,694) 176,026 140,128 (13,977) (22,432) (766,057) (140,128) (2,286,492) 26,910 (81,741) (46,072) 2,448 11,786 315,686 (941,152) (66,173) 60,617 2,286,492 47,428 13,977 41,132 (572,121) (26,910) (176,026) (315,686) (2,448) (65,302) (41,132) 184,358 158,752	(6.81)% (34.08)% 41.29% 0.00% (89.21)% 39.64% 31.55% (8.87)% (47.63)% (23.91)% (4.37)% (71.36)% 0.64% (20.39)% (11.49)% 1.09% 5.24% 36.98% (92.23)% (6.48)% 0.53% 19.98% 0.41% 0.12% 0.36% (23.04)% (1.08)% (7.09)% (12.71)% (0.10)% (45.63)% (28.74)% 38.61% 33.25%

83

NAN YA PLASTICS CORPORATION

INFORMATION REGARDING RECEIVABLES FROM RELATED-PARTIES WITH AMOUNTS EXCEEDING THE LOWER OF TWD100 MILLION OR 20% OF THE CAPITAL STOCK DECEMBER 31, 2024 (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 The Company The Company Nan Ya PCB (Kunshan) Corporation PFG Fiber Glass Corporation Nan Ya Plastics Corporation Texas PFG Fiber Glass (Kunshan) Co., Ltd. PFG Fiber Glass (Kunshan) Co., Ltd. Nan Ya Plastics (Ningbo) 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. The Company Nan Ya Plastics Corporation America Nan Ya Plastics (Hong Kong) Co., Ltd. Nan Ya Trading(Huizhou) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. China Nantong Huafeng Co., Ltd.	Formosa Plastics Corporation Formosa Chemicals and Fiber Corporation Nan Ya PCB Corporation Formosa Petrochemical Corporation Nanya Technology Corporation Formosa Heavy Industries Corporation Nan Ya Plastics Corporation U.S.A. Nan Ya Plastics Corporation America Nan Ya Electronic Materials (Huizhou) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya PCB Corporation The Company Nan Ya Plastics Corporation America Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Huizhou) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Huizhou) Co., Ltd. Formosa Industries Corporation The Company Nan Chung Petrochemical Corporation Nan Ya Plastics Corporation U.S.A. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Huizhou) Co., Ltd. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd.	Other related parties Other related parties Subsidiaries Assosiates Assosiates Assosiates Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Parent Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Assosiates Parent Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries	Receivables from related parties： 130,676 Receivables from related parties： 573,097 Receivables from related parties： 141,630 Receivables from related parties： 210,599 Receivables from related parties： 124,739 Receivables from related parties： 341,105 Receivables from related parties： 643,932 Receivables from related parties： 109,482 Receivables from related parties： 766,057 Receivables from related parties： 572,121 Receivables from related parties： 361,726 Receivables from related parties： 173,451 Receivables from related parties： 386,807 Receivables from related parties： 176,026 Receivables from related parties： 140,128 Receivables from related parties： 315,686 Receivables from related parties： 2,286,492 Receivables from related parties： 184,358 Receivables from related parties： 158,752 Other receivables from related parties： 300,000 Other receivables from related parties： 2,097,403 Other receivables from related parties： 1,824,140 Other receivables from related parties： 1,276,898 Other receivables from related parties： 2,093,201 Other receivables from related parties： 3,876,298 Other receivables from related parties： 177,854	16.19 10.36 12.16 8.49 5.31 3.58 1.91 1.27 5.59 5.15 12 11 8 11 2 22 3 7 0 Note Note Note Note Note Note Note	‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ - ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑	‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ - ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑	92,088 573,097 141,630 145,004 75,740 231,688 1,117 9,652 368,941 409,671 361,726 163,704 386,807 176,026 62,120 315,686 1,228,761 52,568 118,163 ‑ ‑ ‑ ‑ ‑ ‑	‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑

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

84

NAN YA PLASTICS CORPORATION INFORMATION ON INVESTEES (EXCLUDING THOSE IN MAINLAND CHINA) FOR THE YEAR ENDED DECEMBER 31, 2024

(Expressed in thousands of New Taiwan Dollars)

TABLE 8

Investor Company	Investee Company	Location	Major Operations	Original Investment Amount	Original Investment Amount	Balance as of December 31, 2024	Balance as of December 31, 2024	Balance as of December 31, 2024	Net Income of Investee	Investment Income (Loss) Recognized by the Investor Company	Notes
				December 31, 2024	December 31, 2023	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 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. Formosa Automobile Sales Corporation Ya Tai Development Corporation Formosa Heavy Industries Corporation Formosa Fairway Corporation Formosa Plastics Transport Corporation	U.S.A. U.S.A. Hong Kong Hong Kong Hong Kong Hong Kong Vietnam Taiwan Taiwan Taiwan Taiwan Taiwan 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 production of automobile development industry machinery industry transportation business transportation business	313,920 7,853,605 41,450,832 33,677 4,213,864 4,495,987 8,435,875 4,480,417 26,959 52,438,472 672,370 24,647,480 2,648,131 1,000,002 214,236 945,028 53,941 2,497,721 - 67,254	313,920 7,853,605 41,450,832 33,677 4,213,864 4,495,987 8,435,875 4,480,417 26,959 52,438,472 672,370 24,647,480 2,648,131 1,000,002 214,236 945,028 53,941 2,497,721 33,340 67,254	2 60 1,015,653 14 138,333 76 - 432,745 10 907,304 46,257 2,201,306 100,000 100,000 17,523 27,046 1,304 661,334 - 6,566	100.00% 100.00% 100.00% 100.00% 33.33% 100.00% 42.50% 66.97% 100.00% 29.28% 26.99% 23.11% 100.00% 50.00% 100.00% 45.00% 44.96% 32.91% - 33.33%	3,467,544 46,714,856 97,415,938 1,100,299 1,575,995 8,081,235 5,075,412 30,449,917 1,086 48,328,952 266,638 68,587,809 3,003,290 827,075 253,518 393,433 18,725 5,848,740 - 1,401,037	179,407 (271,970) 1,492,023 65,055 (490,056) (400,804) (747,632) 203,727 (52) (5,083,350) 19,705 5,970,918 (108,166) (225,212) (447) 161,594 (1,972) (1,650,957) (9,613) 322,179	179,407 (271,970) 1,492,023 65,055 (163,352) (420,861) (317,744) 141,157 (52) (1,488,474) 5,318 1,379,365 (281,318) (112,606) (446) 72,719 (887) (543,343) (3,205) 107,394	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 Note 3 Note 3

85

Investor Company	Investee Company	Location	Major Operations	Original Investment Amount	Original Investment Amount	Balance as of December 31, 2024	Balance as of December 31, 2024	Balance as of December 31, 2024	Net Income of Investee	Investment Income (Loss) Recognized by the Investor Company	Notes
				December 31, 2024	December 31, 2023	Shares (in thousands)	%	Carrying Value
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) 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)	Hwa Ya Technology Park Management Consulting Corporation Yi Jih Development Corporation Mai Liao Power Corporation Nan YA Photonics Inc. Formosa Resources Corporation Formosa Group (Cayman) Limited (Note) Formosa Plastics Construction Corporation FG Inc. (Note) Formosa Smart Energy Tech Corporation Formosa Utility Venture, Ltd.(Note) Nan Ya Plastics Corporation Texas (Note) Formosa Olefins, L.L.C. (Note) 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.	Taiwan Taiwan Taiwan Taiwan Taiwan Cayman Islands Taiwan U.S.A. Taiwan U.S.A. U.S.A. U.S.A. Hong Kong U.S.A. Taiwan China Taiwan Indonesia	service business construction business electricity generation business LED equipment manufacturer mining industry investment construction business investment green batteries electricity generation and trading production of chemical products chemical business 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	359 13,335 5,985,465 831,466 9,099,071 377 1,100,000 1,137,655 4,250,000 262,248 32,125,380 2,254,513 8,595,674 3,479 472,968 8,592,495 212,017 132,662	359 13,335 5,985,465 761,820 9,099,071 377 1,100,000 1,137,655 1,750,000 262,248 16,062,690 2,254,513 8,595,674 3,479 472,968 8,592,495 212,017 132,662	34 1,221 764,193 13,372 909,907 13 110,000 2 425,000 - 3 - 2,152,020 1,000 13,267 - 12,739 5	34.00% 29.22% 24.94% 29.01% 25.00% 25.00% 33.33% 10.00% 25.00% 12.10% 100.00% 21.00% 100.00% 100.00% 3.00% 100.00% 100.00% 50.00%	5,213 19,980 16,147,947 315,935 6,403,505 968,839 1,016,074 1,137,369 4,174,692 2,856,448 16,109,171 5,063,371 22,782,301 22,349 459,726 22,766,352 129,759 266,181	489 (56) 12,795,766 78,702 (8,052,194) 305,391 (26,397) (383,754) (469,121) 637,172 (2,817,050) 5,410,526 (294,659) 1,373 900,345 (295,303) (1,737) 53,654	166 (16) 3,191,501 20,673 (2,013,049) 76,348 (8,799) (38,375) (117,280) 77,098 (2,817,050) 1,136,210 (294,659) 1,373 26,889 (295,303) (1,737) 26,827	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

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, 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, 2024 (in average) is 32.781(32.122)：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, 2024 (in average) is 4.2027(4.1183)：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, 2024 (in average) is 0.00129054(0.001283648)：1. Note 3 ： Investment income of the current period does not include cumulative translation adjustment and capital surplus adjustment.

86

NAN YA PLASTICS CORPORATION INFORMATON ON INVESTMENT IN MAINLAND CHINA FOR THE YEAR ENDED DECEMBER 31, 2024 (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, 2024	For The Year Ended December 31, 2024	For The Year Ended December 31, 2024	Investment Transferred from Taiwan as of December 31, 2024	Current Income of Investees	Direct and Indirect Shareholding Percentage by the Company	Investment Gain (Loss)	Carrying Value of Investment as of December 31, 2024	Accumulated Inward Remittance of Earnings as of December 31, 2024
					Outflow	Inflow
Nan Ya Plastics (Guangzhou) Co., Ltd. Nan Ya Plastics (Xiamen) Co., Ltd. Nan Ya Plastics (Huizhou) Co., Ltd. Nan Ya Electronic Materials (Huizhou) Co., Ltd. Nan Ya Trading (Huizhou) Co., Ltd. Nan Ya Plastics (Nantong) Co., Ltd. China Nantong Huafeng Co., Ltd. Nantong Huafu Plastics Co., Ltd. Nan Ya Electric (Nantong) Co.,Ltd. Nan Ya Kyowa Plastics (Nantong) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. Nan Ya Plastics (Zhengzhou) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd. PFG Fiber Glass (Kunshan) Co., Ltd.	production of polyester products production of plastic products production of polyester products production of electronic materials, glass fabrics, copper clad 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 12,208,913 32,267 4,540,736 93,004 79,111 339,275 200,988 15,159,216 7,035,085 261,737 4,472,993 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 4,273,467 4,487,409	- - - - - - - - - - - - - - -	- - - - - - - - - - - - - - -	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 4,273,467 4,487,409	(121,712) 82,385 141,699 377,173 343 141,853 5,936 2,352 47,941 (28,113) 1,726,454 (185,209) 4,602 (931,741) (403,147)	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%	(121,712) 70,027 141,699 377,173 343 141,853 5,936 2,352 47,941 (14,056) 1,726,454 (185,209) 2,301 (931,741) (403,147)	1,741,246 1,040,195 3,809,951 16,694,060 63,304 8,697,733 378,030 109,520 1,224,497 217,782 50,695,866 (1,957,911) 73,088 11,161,659 8,259,099	1,208,243 72,820 191,257 - - 2,342,542 - - 303,107 - 24,444,784 - - 1,789,880 282,300

87

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, 2024	For The Year Ended December 31, 2024	For The Year Ended December 31, 2024	Investment Transferred from Taiwan as of December 31, 2024	Current Income of Investees	Direct and Indirect Shareholding Percentage by the Company	Investment Gain (Loss)	Carrying Value of Investment as of December 31, 2024	Accumulated Inward Remittance of Earnings as of December 31, 2024
					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	345,645 624,948 12,777,590	Indirect investment Indirect investment Indirect investment	34,591 34,591 4,162,010	- - -	- - -	34,591 34,591 4,162,010	- - (490,056)	15.00% 15.00% 33.33%	- - (163,352)	389,262 321,133 1,575,995	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, 2024 (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)
49,875,128	60,200,692	-

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, 2024 (in average) is 1：1.0851(1.0953), and translated to TWD using the exchange rate as of December 31, 2024 (in average) is 1：4.2027(4.1183). Note 2 ： It includes the amount of $3,024,033 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, 2024, please refer to the attachment of note 13 for "Information on material transaction items".

88

NAN YA PLASTICS CORPORATION

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

For the year ended December 31, 2024

(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 $ 2,604,713 140,520 1,435,800 $ 4,040,513	Fair	Value Total Amount Note 10,465,155 For detailed information concerning pledged assets please see Note 8. 3,836,187 14,301,342
			Unit Cost 35.50 27.30

89

NAN YA PLASTICS CORPORATION

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

December 31, 2024

(Expressed in thousands of New Taiwan Dollars)

Asset Funds	Description Mega Internaitonal Private USD Money Market	Number of Acquisition Shares Cost 4,554 $ 1,495,338	Fair	Value Total Amount Note 1,846,201
			Unit Cost 405.40

90

NAN YA PLASTICS CORPORATION

Statement of notes receivable

December 31, 2024

(Expressed in thousands of New Taiwan Dollars)

Item		Amount
CHIN-POON INDUSTRIAL CO., LTD.	$	100,821
NAKOSIN ENTERPRISE CO., LTD.		171,086
Others (Note)		1,120,474
Less: Loss allowance		(6,924)
Total	$	1,385,457
Note: Items that do not reach the five percent benchmark for this account.

Statement of trade receivables

Item Others (Note) Less: Loss allowance Total Formosa Chemicals and Fiber Corporation Nan Ya PCB Corporation Nan Ya Plastics Corporation U.S.A Formosa Petrochemical Corporation Nan Ya Electronic Materials (Huizhou) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Others (Note) Total	Description Amount Ordinary Clients $ 10,565,346 〃 (48,857) $ 10,516,489 Related party $ 573,097 〃 141,630 〃 643,932 〃 210,599 〃 766,057 〃 572,121 〃 1,089,396 $ 3,996,832

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

91

NAN YA PLASTICS CORPORATION

Statement of inventories

December 31, 2024

(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 Inventory, net	Amount	Amount
	Cost $ 5,948,254 73,891 7,187,299 6,834,903 5,389,892 253,781 174,581 17,889 25,880,490 (259,467) $ 25,621,023	Net Realizable Value
		5,937,081 107 7,027,333 6,820,359 5,389,892 253,781 174,581 17,889
		25,621,023

92

NAN YA PLASTICS CORPORATION

Statement of changes in investments accounted for using the equity method

For the year ended December 31, 2024

(Expressed in thousands of New Taiwan Dollars)

Investee Company 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 Technology Park Management Corporation Yi-Jih Development Corporation Mai Liao Power Corporation Nan YA Photonics Incorporation Formosa Resources Corporation Formosa Group (Cayman) Limited FG Inc. Formosa Plastics Construction Corporation Formosa Smart Energy Tech Corporation Subtotal Add : Loss from foreign exchange	Beginning Balance Number of Shares Amount 2 $ 3,034,700 60 43,358,521 1,015,653 118,455,840 14 1,085,420 138,333 1,691,707 76 8,726,221 - 6,356,723 432,745 32,792,510 10 1,138 907,304 48,621,293 46,257 260,606 2,201,306 77,578,173 100,000 3,271,663 100,000 940,083 17,523 253,791 27,046 390,880 1,304 19,612 656,517 7,068,827 4,699 5,573 6,566 1,300,639 34 4,430 1,221 19,996 764,193 13,921,170 10,609 266,728 830,047 7,334,166 13 851,925 2 1,083,766 60,000 1,051,647 100,000 1,733,910 381,481,658 (8,713,581) $ 372,768,077	Additions Number of Shares Amount - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2,763 69,646 - - - - - - - - 250,000 2,500,000 2,569,646 - 2,569,646	Additions Number of Shares Amount - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2,763 69,646 - - - - - - - - 250,000 2,500,000 2,569,646 - 2,569,646	Disposals Number of Shares Amount	Disposals Number of Shares Amount	Disposals Number of Shares Amount	Dividend from Investees	Dividend from Investees	Others Number of Shares Amount - 12,158 - - - (224,075) - - - - - - - (1,113) - (39,831) - - - (122,102) - 687 - (6,452,442) - 12,945 - (402) - 173 - 207 - - - (525,759) - (2,368) - (2,217) - 617 - - - 284,973 - (37,199) - - - - - - - (26,774) - 58,062 (7,064,460) 11,752,674 4,688,214	Others Number of Shares Amount - 12,158 - - - (224,075) - - - - - - - (1,113) - (39,831) - - - (122,102) - 687 - (6,452,442) - 12,945 - (402) - 173 - 207 - - - (525,759) - (2,368) - (2,217) - 617 - - - 284,973 - (37,199) - - - - - - - (26,774) - 58,062 (7,064,460) 11,752,674 4,688,214	Income (loss) from Investments 179,407 (271,970) 1,492,023 65,055 (163,352) (420,861) (317,744) 141,157 (52) (1,488,474) 5,318 1,379,365 (281,318) (112,606) (446) 72,719 (887) (543,343) (3,205) 107,394 166 (16) 3,191,501 20,673 (2,013,049) 76,348 (38,375) (8,799) (117,280) 949,349	Ending Balance	Ending Balance	Ending Balance	Amount Note 3,226,265 Note 1 43,086,551 99,722,528 Note 1 1,150,475 1,528,355 8,305,360 6,037,866 Note 1 30,513,739 Note 1 1,086 47,010,717 Note 1 266,611 Note 1 68,102,484 Note 1 3,003,290 Note 1 827,075 Note 1 253,518 Note 1 393,433 Note 1 18,725 5,999,725 Note 1 - Note 1 1,405,816 Note 1 5,213 Note 1 19,980 16,283,450 Note 1 314,151 Note 1 5,321,117 928,273 1,045,391 1,016,074 Note 1 4,174,692 Note 1 349,961,960 3,039,093 353,001,053
	Number of Shares	Number of Shares				Amount	Share Dividend (Number of shares)	Cash Dividend - - (20,001,260) - - - - (2,380,097) - - - (4,402,612) - - - (70,373) - - - - - - (1,114,194) (5,697) - - - - - (27,974,233) - 27,974,233	Number of Shares			Number of Shares 2 60 1,015,653 14 138,333 76 - 432,745 10 907,304 46,257 2,201,306 100,000 100,000 17,523 27,046 1,304 656,517 4,699 6,566 34 1,221 764,193 13,372 830,047 13 2 60,000 350,000	Percentage of Ownership
	2 60 1,015,653 14 138,333 76 - 432,745 10 907,304 46,257 2,201,306 100,000 100,000 17,523 27,046 1,304 656,517 4,699 6,566 34 1,221 764,193 10,609 830,047 13 2 60,000 100,000	- - - - - - - - - - - - - - - - - - - - - - - 2,763 - - - - 250,000		- - - - - - - - - - - - - - - - - - - - - - - - - - - - -		- - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - -		- - - - - - - - - - - - - - - - - - - - - - - - - - - - -				100.00 100.00 100.00 100.00 33.33 100.00 42.50 66.97 100.00 29.28 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 29.01 25.00 25.00 25.00 33.33 25.00
						- -
						-

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.

93

NAN YA PLASTICS CORPORATION

Statement of short-term borrowings

December 31, 2024

(Expressed in thousands of New Taiwan Dollars)

Categories	Creditor Bank of Taiwan Taiwan Cooperative Bank Taiwan Cooperative Bank First Commercial Bank First Commercial Bank First Commercial Bank Hua Nan Commercial Bank Hua Nan Commercial Bank Hua Nan Commercial Bank Bank of China Bank of China Bank of Communications Mega International Commercial Bank Mega International Commercial Bank Cathay United Bank Mizuho Bank Mizuho Bank Taiwan Business Bank Co., Ltd. Taiwan Business Bank Co., Ltd. Yuanta Bank DBS Bank Ltd. DBS Bank Ltd. OCBC Bank Ltd. OCBC Bank Ltd.	End of Term Amount $ 900,000 500,000 800,000 448,000 100,000 1,500,000 595,900 1,027,400 183,300 500,000 1,000,000 1,000,000 1,500,000 1,300,000 500,000 500,000 500,000 1,000,000 900,000 1,500,000 670,000 730,000 1,000,000 1,500,000 $ 20,154,600	Contract Period 2024.09.25~2025.03.24 2024.09.09~2025.09.04 2024.06.14~2025.06.09 2024.12.11~2025.01.11 2024.12.16~2025.01.16 2024.12.23~2025.01.23 2024.12.19~2025.01.18 2024.12.23~2025.01.22 2024.12.26~2025.01.25 2024.11.18~2025.02.18 2024.12.18~2025.03.18 2024.12.25~2025.03.25 2024.12.06~2025.01.03 2024.12.27~2025.01.24 2024.12.30~2025.02.27 2024.10.14~2025.01.10 2024.10.14~2025.01.10 2024.12.16~2025.01.16 2024.12.25~2025.01.24 2024.11.11~2025.02.07 2024.11.29~2025.01.02 2024.12.11~2025.01.10 2024.11.28~2025.01.06 2024.11.29~2025.01.07	Interest Rate Collateral 1.75% Nil 1.78% Nil 1.78% Nil 1.85% Nil 1.85% Nil 1.85% Nil 1.78% Nil 1.78% Nil 1.78% Nil 1.80% Nil 1.80% Nil 1.90% Nil 1.80% Nil 1.82% Nil 1.82% Nil 1.80% Nil 1.80% Nil 1.78% Nil 1.78% Nil 1.80% Nil 1.80% Nil 1.80% Nil 1.80% Nil 1.80% 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 Total

94

NAN YA PLASTICS CORPORATION

Statement of long-term borrowings

December 31, 2024

(Expressed in thousands of New Taiwan Dollars)

Creditor Syndicated Loans with Bank of Taiwan and other 10 participating banks Sumitomo Mitsui Banking Corporation Bank of China Mizuho Bank DBS Bank Ltd. Mega International Commercial Bank Mega International Commercial Bank Bank of Taiwan	Loan Amount Current portionof long-term debts Noncurrent portion of long-term debts $ 18,747,315 - 1,000,000 - 1,000,000 - - 3,000,000 - 1,000,000 - 1,000,000 - 1,000,000 - 6,500,000 $ 20,747,315 12,500,000	Loan Amount Current portionof long-term debts Noncurrent portion of long-term debts $ 18,747,315 - 1,000,000 - 1,000,000 - - 3,000,000 - 1,000,000 - 1,000,000 - 1,000,000 - 6,500,000 $ 20,747,315 12,500,000		Total 18,747,315 1,000,000 1,000,000 3,000,000 1,000,000 1,000,000 1,000,000 6,500,000 33,247,315	Contract Period 2023.07.27~2025.07.27 2024.02.06~2025.09.30 2023.11.21~2025.09.19 2024.03.15~2027.03.15 2024.06.21~2027.04.23 2024.08.21~2027.07.10 2024.11.15~2027.07.10 2024.09.25~2027.09.12	Interest Rate 1.8441% 1.9600% 1.9513% 1.9670% 1.9600% 1.9293% 1.9293% 1.7500%	Collateral
	Current portionof long-term debts $ 18,747,315 1,000,000 1,000,000 - - - - - $ 20,747,315
							Nil Nil Nil Nil Nil Nil Nil Nil

Note

Debt will be repaid in one installment. Debt will be repaid in one installment. Debt will be repaid in one installment. Debt will be repaid in one installment. Debt will be repaid in one installment. Debt will be repaid in one installment. Debt will be repaid in one installment. Debt will be repaid in one installment.

95

NAN YA PLASTICS CORPORATION

Statement of operating revenues

For the year ended December 31, 2024

(Expressed in thousands of New Taiwan Dollars)

Item Flexible PVC Sheeting Rigid PVC Sheeting PU Synthetic Leather Metalized Film Plastic Doors and Windows Plastic Conduit BOPP Film Engineering Plastics PVC Compound Plasticizer and Accelerator PA Ethyl hexanol Isononyl alcohol Biphenol Butanediol Ethylene glycol Copper Cladded Laminate Epoxy Glass Fabrics Copper Foil Multiple-Filament Non-Standard Products Plastic Textured Yarn Plastic Compound Jersey cloth Plastic Textured Yarn Cake Collodion Cutton Draw Textured Yarn BOPET Film Release Film Construction and Distribution Panel Others Total Service Revenue Other Operating Revenue Total Operating Revenue	Unit KG KG Y M KG KG KG KG KG KG KG KG KG KG KG KG SH KG M KG KG KG KG KG KG KG KG KG KG KG	Quantity 30,945 35,521 1,663 21,636 20,224 109,065 20,053 15,761 17,858 104,661 117,323 179,570 22,395 220,504 27,478 297,009 16,551 130,042 76,017 16,164 7,745 37,435 117,430 427 17,811 73,478 42,550 46,482 136,254	Amount
			$ 2,838,809 2,893,568 263,924 163,640 4,621,270 5,701,892 1,695,365 1,371,170 943,644 5,403,921 4,015,749 6,610,732 1,010,485 8,965,258 1,398,583 5,359,818 10,607,802 9,596,002 2,393,485 7,129,739 55,151 2,764,898 3,929,574 84,239 816,663 2,911,689 3,510,422 3,375,709 1,241,629 6,081,505 12,161,062 119,917,397 268,836 2,971,896 $ 123,158,129

96

NAN YA PLASTICS CORPORATION

Statement of operating costs

For the year ended December 31, 2024

(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 Costs Total Operating Costs

Amount $ 6,274,974 72,885,207 (6,394,505) 72,765,676 72,362 5,413,153 (73,891) 5,411,624 6,970,077 32,088,739 117,236,116 14,239,262 (12,577,191) (5,146,507) 113,751,680 7,343,892 (6,834,903) (5,783,789) 108,476,880 257,066 2,163,375 $ 110,897,321

97

NAN YA PLASTICS CORPORATION

Statement of selling expenses

For the year ended December 31, 2024

(Expressed in thousands of New Taiwan Dollars)

Items		Amount
Export Freight Expenses-Shipping	$	1,521,829
Export Freqight Expenses-Container Handling		246,282
Domestic Freight Expenses		854,290
Salary		793,751
Export Freight Expenses-Inland Transport		304,077
Others		840,868
Total	$	4,561,097

98

NAN YA PLASTICS CORPORATION

Statement of administrative expenses

For the year ended December 31, 2024

(Expressed in thousands of New Taiwan Dollars)

Items		Amount
Salary	$	2,056,735
Depreciation Expenses		522,035
Maintenance Expenses		432,259
Miscellaneous Expenses		281,660
Computer Usage Fee		296,998
Research and Development Expenses		708,960
Others		1,408,499
Total	$	5,707,146