Stock Code:1303

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Consolidated 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 consolidated 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 consolidated financial statements, the Chinese version shall prevail.

Contents	Page
1. Cover Page	1
2. Table of Contents	2
3. Representation Letter	3
4. Independent Auditors’ Report	4
5. Consolidated Balance Sheets	5
6. Consolidated Statement of Comprehensive Income	6
7. Consolidated Statement of Changes in Equity	7
8. Consolidated Statement of Cash Flows	8
9. Notes to the Consolidated Financial Statements
(1) Company history	9
(2) Approval date and procedures of the consolidated financial statements	9
(3) New standards, amendments and interpretations adopted	9~11
(4) Summary of material accounting policies	11~30
(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty	30~32
(6) Explanation of significant accounts	33~68
(7) Related-party transactions	68~75
(8) Pledged assets	75
(9) Significant Commitments and contingencies	76~77
(10) Losses Due to Major Disasters	77
(11) Subsequent Events	77
(12) Other	78
(13) Other disclosures
(a) Information on significant transactions	78、82~92
(b) Information on investees	78、93~94
(c) Information on investment in mainland China	79、95~96
(d) Major shareholders	79
(14) Segment information	79~81

Representation Letter

The entities that are required to be included in the consolidated financial statements of NAN YA PLASTICS CORPORATION as of and for the year ended December 31, 2024 under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports, and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with International Financial Reporting Standards No. 10 endorsed by the Financial Supervisory Commission, "Consolidated Financial Statements." In addition, the information required to be disclosed in the combined financial statements is included in the consolidated financial statements. Consequently, NAN YA PLASTICS CORPORATION and Subsidiaries do not prepare a separate set of consolidated financial statements.

Company name: NAN YA PLASTICS CORPORATION
Chairman: Wu, Chia-Chau
Date: March 11, 2025

KPMG

多侯速素群合作計算學論叢

KPMG

台北市110615信義路5段7號68樓(台北101大樓)

68F., TAIPEI 101 TOWER, No. 7, Sec. 5,

Xinyi Road, Taipei City 110615, Taiwan (R.O.C.)

電話 Tel +886 2 8101 6666

傳真 Fax +886 2 8101 6667

網址 Web kpmg.com/tw

Independent Auditors' Report

To the Board of Directors of NAN YA PLASTICS CORPORATION:

Opinion

We have audited the consolidated financial statements of NAN YA PLASTICS CORPORATION and its subsidiaries (“the Group”), which comprise the consolidated balance sheets as of December 31, 2024 and 2023, the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.

In our opinion, based on our audits and the report of other auditors (please refer to Other Matter paragraph), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2024 and 2023, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards (“IFRSs”), International Accounting Standards (“IASs”), Interpretations developed by the International Financial Reporting Interpretations Committee (“IFRIC”) or the former Standing Interpretations Committee (“SIC”) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

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 Consolidated Financial Statements section of our report. We are independent of the Group 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 consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated 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 Group's financial statements are stated as follows:

Revenue recognition

Please refer to note 4(p) "Revenue recognition" for accounting policy related to revenue recognition, and note 6(t) "Revenue" for information related to revenue recognition of the consolidated 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.

KPMG
4-1

How the matter was addressed in our audit

The operating performance of the Group has an effect on the distribution to its shareholders and stock price. Thus, their financial performance will have an impact on the users of financial statements. Therefore, the veracity and appropriateness of revenue recognition is a key matter when conducting our audit.

Our principal audit procedures included the following:

Assessing the accounting policies and appropriateness of revenue recognition (including sales returns and discounts).
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 Group’s financial position after the reporting period to verify the frequency of the unusual sales returns for the purpose of assessing the appropriateness of revenue recognition.
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.
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(h) "Inventories" for accounting policy related to valuation of inventories, and note 6(f) "Inventories" for information related to valuation of inventories of the consolidated financial statements.

How the matter was addressed in our audit

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

Our principal audit procedures included the following:

Assessing the appropriateness of inventory valuation policies.
Ensuring the process of inventory valuation is in conformity with the accounting policies.
Understanding the net realizable value used by the management, and the variation of the prices in a period after the reporting date, to ensure the appropriateness of the valuation price.
Assessing whether the disclosure of provision for inventory valuation is appropriate.

KPMG
4-2

Other Matter

We did not audit the financial statements of certain subsidiaries and investee companies, which represented investment in other entities accounted for using the equity method of the Group. 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 certain subsidiaries and investee companies, is based solely on the report of other auditors. The financial statements of the aforementioned subsidiaries reflect the total assets constituting 12.78% and 11.53% of the consolidated total assets as at December 31, 2024 and 2023, respectively; and the total revenues constituting 14.78% and 13.44% of the consolidated total revenues for the years ended December 31, 2024 and 2023, respectively. The investment in aforementioned investee companies accounted for using the equity method constituted 12.39% and 12.94% of the consolidated total assets as at December 31, 2024 and 2023, respectively, and the related share of profit of associated and joint ventures accounted for using the equity method constituted (36.57)% and 51.28% of consolidated total comprehensive income for the years ended December 31, 2024 and 2023, respectively.

The Company has prepared its parent-company-only financial statements as of and for the years ended December 31, 2024 and 2023, on which we have issued an unmodified opinion.

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

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the IFRSs, IASs, IFRC, SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group'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 Group 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 Group's financial reporting process.

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated 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 consolidated financial statements.

KPMG

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:

Identify and assess the risks of material misstatement of the consolidated 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.
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 Group's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
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 Group'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 consolidated 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 Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group 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.

KPMG

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's 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 consolidated financial statements are intended only to present the consolidated statement of 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 consolidated financial statements are those generally accepted and applied in the Republic of China.

The independent auditors' audit report and the accompanying consolidated 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 consolidated financial statements, the Chinese version shall prevail.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2024 and 2023

(Expressed in Thousands of New Taiwan Dollars)

Assets	December 31, 2024		December 31, 2023
		Amount	%	Amount	%
Current assets:
1100	Cash and cash equivalents (notes 6(a) and (w))	$ 66,445,373	11	80,301,186	12
1110	Current financial assets at fair value through profit or loss (notes 6(b) and (w))	1,846,201	-	1,641,598	-
1120	Current financial assets at fair value through other comprehensive income (notes 6(c), (w) and 8)	14,407,700	2	32,339,271	5
1150	Notes receivable, net (notes 6(d) and (w))	2,853,793	1	3,411,353	1
1170	Trade receivables, net (notes 6(d) and (w))	37,190,281	6	33,821,570	5
1180	Trade receivables due from related parties (notes 6(d), (w) and 7)	1,807,747	-	1,121,294	-
1200	Other receivables (notes 6(e) and (w))	2,633,824	1	3,476,429	1
1210	Other receivables due from related parties (notes 6(e), (w) and 7)	194,530	-	3,299,420	1
130X	Inventories (note 6(f))	51,696,294	8	50,552,031	7
1470	Other current assets (note 8)	6,425,853	1	5,174,793	1
	Total current assets	185,501,596	30	215,138,945	33
Non-current assets:
1510	Non-current financial assets at fair value through profit or loss (notes 6(b) and (w))	664,863	-	665,521	-
1517	Non-current financial assets at fair value through other comprehensive income (notes 6(c) and (w))	20,801,552	3	19,537,040	3
1550	Investments accounted for using equity method (notes 6(g), 7 and 8)	170,622,891	28	176,181,389	27
1600	Property, plant and equipment (notes 6(h), 7 and 8)	218,272,850	35	216,213,265	33
1755	Right-of-use assets (notes 6(i) and 7)	877,666	-	911,113	-
1782	Intangible assets (note 6(j))	1,327,871	-	1,521,015	-
1812	Technology development expense	6,680	-	11,396	-
1840	Deferred tax assets (note 6(q))	2,465,461	1	3,082,742	1
1915	Prepayments for purchase of equipment	2,903,091	1	3,873,796	1
1937	Overdue receivables (note 6(d))	-	-	-	-
1975	Net defined benefit asset-non-current (note 6(p))	103,896	-	84,358	-
1990	Other non-current assets (note 8)	13,925,080	2	11,307,373	2
	Total non-current assets	431,971,901	70	433,389,008	67
Total assets		$ 617,473,497	100	648,527,953	100
Liabilities and Equity	December 31, 2024		December 31, 2023
---	---	---	---	---
	Amount	%	Amount	%
Current liabilities:
Short-term borrowings (notes 6(l), (w) and (z))	$ 22,975,600	4	31,802,900	5
Short-term notes and bills payable (notes 6(k), (w) and (z))	42,850,386	7	36,304,203	6
Notes and trade payables (note 6(w))	7,689,760	1	11,305,522	2
Trade payables to related parties (notes 6(w) and 7)	7,363,533	1	5,058,154	1
Other payables (including related parties) (note 7)	25,078,374	4	23,686,698	4
Current lease liabilities(notes 6(o), (w), (z) and 7)	110,121	-	130,182	-
Current portion of bonds payable (notes 6(n), (w) and (z))	10,619,603	2	9,270,477	1
Current portion of long-term borrowings (notes 6(m), (w) and (z))	20,747,315	3	6,729,400	1
Other current liabilities	3,236,381	1	2,920,238	-
Total current liabilities	140,671,073	23	127,207,774	20
Non-Current liabilities:
Bonds payable (notes 6(n), (w) and (z))	45,862,803	7	56,471,990	9
Long-term borrowings (notes 6(n), (w) and (z))	37,286,905	6	49,879,126	7
Deferred tax liabilities (note 6(q))	14,932,132	2	18,163,021	3
Non-current lease liabilities (notes 6(o), (w), (z) and 7)	185,803	-	202,261	-
Net defined benefit liability-non-current	9,367,835	2	11,239,567	2
Guarantee deposits (note 6(p))	988,280	-	941,364	-
Other non-current liabilities	5,575,361	1	7,338,791	1
Total non-current liabilities	114,199,119	18	144,236,120	22
Total liabilities	254,870,192	41	271,443,894	42
Equity attributable to owners of parent (note 6(r)):
Ordinary shares	79,308,216	13	79,308,216	12
Capital surplus	27,042,992	4	27,733,533	4
Retained earnings	229,117,977	37	230,801,650	36
Others	11,114,038	2	22,300,880	3
Total equity attributable to owners of parent:	346,583,223	56	360,144,279	55
Non-controlling interests	16,020,082	3	16,939,780	3
Total equity	362,603,305	59	377,084,059	58
Total liabilities and equity	$ 617,473,497	100	648,527,953	100

See accompanying notes to Consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Consolidated Statement 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		2023
		Amount	%	Amount	%
4000	Operating revenues (notes 6(t) and 7)	$ 259,608,483	100	259,755,344	100
5000	Operating costs (notes 6(f), (p), (u), 7 and 12)	241,033,392	93	240,519,344	93
	Gross profit from operations	18,575,091	7	19,236,000	7
5910	Less: Unrealized profit from affiliated companies (note 7)	1,054	-	9,697	-
	Total gross profit from operations	18,574,037	7	19,226,303	7
	Operating expenses (notes 6(u), (p), (u), 7 and 12):
6100	Selling expenses	9,043,323	3	8,179,516	3
6200	Administrative expenses	9,184,638	4	9,052,209	4
6450	Impairment loss (impairment gain and reversal of impairment loss) determined in accordance with IFRS 9 (note 6(d))	(101,458)	-	10,726	-
	Total operating expenses	18,126,503	7	17,242,451	7
	Net Operating income	447,534	-	1,983,852	-
	Non-operating income and expenses (notes 6(g), (v) and 7):
7010	Other income	3,299,244	1	4,365,013	2
7020	Other gains and losses	1,425,016	1	77,595	-
7050	Finance costs	(4,347,851)	(2)	(3,997,897)	(2)
7060	Shares of profit of associates and joint ventures accounted for using equity method	1,414,229	1	3,974,170	2
7100	Interest income	2,285,298	1	2,727,582	1
	Total non-operating income and expenses	4,075,936	2	7,146,463	3
	Profit before tax	4,523,470	2	9,130,315	3
7950	Less: Income tax expenses (note 6(q))	1,216,300	-	1,020,268	-
	Profit	3,307,170	2	8,110,047	3
8300	Other comprehensive income (loss) (notes 6(g), (q) and (r)):
8310	Components of other comprehensive income (loss) that will not be reclassified to profit or loss
8311	Gains on remeasurements of defined benefit plans	504,928	-	1,073,938	-
8316	Unrealized (losses) gains from investments in equity instruments measured at fair value through other comprehensive income	(16,711,217)	(7)	5,464	-
8320	Shares of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss	(6,130,476)	(2)	3,900,784	2
8349	Less: income tax related to components of other comprehensive income that will not be reclassified to profit or loss	101,138	-	214,875	-
	Total items that may not be reclassified subsequently to profit and loss	(22,437,903)	(9)	4,765,311	2
8360	Components of other comprehensive income (loss) that will be reclassified to profit or loss
8361	Exchange differences on translation	12,070,200	4	(2,312,780)	(1)
8370	Shares of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss	(28,921)	-	7,919	-
8399	Less: income tax related to components of other comprehensive income that will be reclassified to profit or loss	-	-	-	-
	Total items that may be reclassified subsequently to profit and loss	12,041,279	4	(2,304,861)	(1)
8300	Other comprehensive income (loss)	(10,396,624)	(5)	2,460,450	1
8500	Total comprehensive income (loss)	$ (7,089,454)	(3)	10,570,497	4
	Profit, attributable to:
8610	Owners of parent	$ 3,340,129	2	6,310,050	2
8620	Non-controlling interests	(32,959)	-	1,799,997	1
		$ 3,307,170	2	8,110,047	3
	Comprehensive income attributable to:
8710	Owners of parent	$ (7,350,918)	(3)	8,769,819	3
8720	Non-controlling interests	261,464	-	1,800,678	1
		$ (7,089,454)	(3)	10,570,497	4
	Basic earnings per share (note 6(s)):	Before Tax	After Tax	Before Tax	After Tax
9710	Income from continuing operations	$ 0.57	0.42	1.15	1.02
	Income from non-controlling equity	(0.08)	-	(0.43)	(0.22)
9750	Income attributable to shareholders of the parent	$ 0.49	0.42	0.72	0.80

See accompanying notes to Consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Consolidated Statement of Changes in Equity

For the years ended December 31, 2024 and 2023

(Expressed in Thousands of New Taiwan Dollars)

	Equity attributable to owners of parent
	Retained earnings					Items of other equity interest			Non-controlling interests
	Ordinary shares	Capital surplus	Legal reserve	Special reserve	Unappropriated retained earnings	Exchange differences on translation of foreign financial statements	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income	Gains (losses) on hedging instruments	Total equity attributable to owners of parent	Total equity attributable to total
Balance at January 1, 2023	$ 79,308,216	27,692,943	81,491,665	112,663,858	53,349,944	(6,503,889)	27,101,700	153	375,104,590	18,996,840	394,101,430
Profit	-	-	-	-	6,310,050	-	-	-	6,310,050	1,799,997	8,110,047
Other comprehensive income (loss)	-	-	-	-	756,853	(2,209,692)	3,904,689	7,919	2,459,769	681	2,460,450
Total comprehensive income (loss)	-	-	-	-	7,066,903	(2,209,692)	3,904,689	7,919	8,769,819	1,800,678	10,570,497
Appropriation and distribution of retained earnings:
Legal reserve appropriated	-	-	3,353,520	-	(3,353,520)	-	-	-	-	-	-
Special reserve appropriated	-	-	-	4,817,936	(4,817,936)	-	-	-	-	-	-
Cash dividends of ordinary share	-	-	-	-	(23,792,465)	-	-	-	(23,792,465)	-	(23,792,465)
Reversal of special reserve	-	-	-	(4,656)	4,656	-	-	-	-	-	-
Other changes in capital surplus:
Other changes in capital surplus	-	40,590	-	-	21,745	-	-	-	62,335	(4)	62,331
Disposal of investments in equity instruments designated at fair value through other comprehensive income	-	-	-	-	-	-	-	-	-	(3,857,734)	(3,857,734)
Balance at December 31, 2023	79,308,216	27,733,533	84,845,185	117,477,138	28,479,327	(8,713,581)	31,006,389	8,072	360,144,279	16,939,780	377,084,059
Profit	-	-	-	-	3,340,129	-	-	-	3,340,129	(32,959)	3,307,170
Other comprehensive income (loss)	-	-	-	-	468,308	11,752,674	(22,883,108)	(28,921)	(10,691,047)	294,423	(10,396,624)
Total comprehensive income (loss)	-	-	-	-	3,808,437	11,752,674	(22,883,108)	(28,921)	(7,350,918)	261,464	(7,089,454)
Appropriation and distribution of retained earnings:
Legal reserve appropriated	-	-	709,330	-	(709,330)	-	-	-	-	-	-
Special reserve appropriated	-	-	-	402,607	(402,607)	-	-	-	-	-	-
Cash dividends of ordinary share	-	-	-	-	(5,551,575)	-	-	-	(5,551,575)	-	(5,551,575)
Reversal of special reserve	-	-	-	(6,068)	6,068	-	-	-	-	-	-
Other changes in capital surplus:
Other changes in capital surplus	-	(690,541)	-	-	31,978	-	-	-	(658,563)	(10)	(658,573)
Disposal of investments accounted for using equity method	-	-	-	-	27,487	-	(27,487)	-	-	-	-
Changes in non-controlling interests	-	-	-	-	-	-	-	-	-	(1,181,152)	(1,181,152)
Balance at December 31, 2024	$ 79,308,216	27,042,992	85,554,515	117,873,677	25,689,785	3,039,093	8,095,794	(20,849)	346,583,223	16,020,082	362,603,305

See accompanying notes to Consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Consolidated Statement of Cash Flows

For the years ended December 31, 2024 and 2023

(Expressed in Thousands of New Taiwan Dollars)

	2024	2023
Cash flows from (used in) operating activities:
Profit before tax	$ 4,523,470	9,130,315
Adjustments:
Adjustments to reconcile profit (loss):
Depreciation expense	22,031,941	22,437,166
Amortization expense	669,761	1,007,218
Impairment loss (impairment gain and reversal of impairment loss) determined in accordance with IFRS 9	(101,458)	10,726
Gain on disposal of investments accounted for using equity method	(3,934)	-
Net gains on financial assets at fair value through profit or loss	(160,546)	(23,994)
Interest expense	4,347,851	3,997,897
Interest income	(2,285,298)	(2,727,582)
Dividend income	(778,116)	(1,811,176)
Shares of profit of associates and joint ventures accounted for using equity method	(1,414,229)	(3,974,170)
Losses on disposal of property, plant and equipment	22,531	(2,147)
Property, plant and equipment transferred to expenses	62,863	8,406
Gains from lease modifications	(6,846)	(1,712)
Unrealized profit from affiliated companies	1,054	9,697
Unrealized foreign exchange (gains) losses	(281,731)	476,118
Other revenue, overdue dividends and compensation of board and directors	50,663	1,895
Reversal of impairment losses of property, plant and equipment	(75)	(14,033)
Total adjustments to reconcile profit (loss)	22,154,431	19,394,309
Changes in operating assets and liabilities:
Decrease in notes receivable	562,046	89,546
(Increase) decrease in trade receivables (including related parties)	(3,819,420)	11,876,137
Decrease in other receivables	1,355,609	1,081,376
(Increase) decrease in inventories	(2,690,249)	2,532,607
(Increase) decrease in other current assets	(1,251,060)	1,446,866
Total changes in operating assets	(5,843,074)	17,026,532
Decrease in notes and trade payables (including related parties)	(1,343,390)	(3,631,139)
Decrease in other payable	(209,457)	(2,056,760)
Increase in other current liabilities	316,143	859,284
Decrease in net defined benefit liability	(1,386,343)	(2,029,682)
Total changes in operating liabilities	(2,623,047)	(6,858,297)
Total changes in operating assets and liabilities	(8,466,121)	10,168,235
Total adjustments	13,688,310	29,562,544
Cash inflow generated from operations	18,211,780	38,692,859
Interest received	1,772,389	2,681,408
Dividends received	6,382,933	6,451,434
Interest paid	(4,482,686)	(4,019,383)
Income taxes paid	(3,098,584)	(8,128,620)
Net cash flows from operating activities	18,785,832	35,677,698
Cash flows from (used in) investing activities:
Acquisition of financial assets at fair value through other comprehensive income	-	(276,606)
Proceeds from capital reduction of financial assets at fair value through other comprehensive income	3,484	6,847
Proceeds from disposal of financial assets at fair value through profit or loss	-	41,249
Acquisition of investments accounted for using equity method	(2,569,646)	(2,048,600)
Proceeds from disposal of investments accounted for using equity method	3,934	-
Acquisition of property, plant and equipment	(12,640,451)	(23,957,751)
Proceeds from disposal of property, plant and equipment	193,115	149,238
Decrease in refundable deposits	74,969	77,052
Decrease (increase) in other receivables due from related parties	3,104,795	(613,459)
Increase in other non-current assets	(6,070,372)	(4,785,664)
Net cash flows used in investing activities	(17,900,172)	(31,407,694)
Cash flows from (used in) financing activities:
Decrease in short-term borrowings	(8,827,449)	(6,973,279)
Increase in short-term notes and bills payable	6,600,000	900,000
Proceeds from issuing bonds	-	12,979,826
Repayments of bonds	(9,275,000)	(11,575,000)
Proceeds from long-term borrowings	33,975,860	29,835,470
Repayments of long-term borrowings	(34,242,570)	(8,994,240)
Increase in guarantee deposits	46,916	130,108
Increase in other payables to related parties	300,000	-
Payments of lease liabilities	(136,088)	(145,255)
Decrease in other non-current liabilities	(1,757,232)	(397,215)
Cash dividends paid	(5,615,258)	(23,833,140)
Change in non-controlling interests	(1,181,152)	(3,857,734)
Net cash flows used in financing activities	(20,111,973)	(11,930,459)
Effect of exchange rate changes on cash and cash equivalents	5,370,500	(1,482,872)
Net decrease in cash and cash equivalents	(13,855,813)	(9,143,327)
Cash and cash equivalents at beginning of period	80,301,186	89,444,513
Cash and cash equivalents at end of period	$ 66,445,373	80,301,186

See accompanying notes to Consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated 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 ("the Company") was incorporated on August 22, 1958, and established its factories in Kaohsiung City. The Company and its subsidiaries ("the Group") engages in the manufacture and sale of plastic products, polyester fibers, petrochemical products, and electronic materials. It has gone through several capital increases and established many divisions. Currently, the Company has the following divisions: plastics, fiber, petrochemical, electronics, and engineering. It also 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 consolidated financial statements

The accompanying consolidated 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 Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated 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 Group 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 consolidated financial statements:

Amendments to IAS21 "Lack of Exchangeability"

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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

Standards or Interpretations	Content of amendment	Effective date per IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”	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.

• 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. | January 1, 2027 |

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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

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

(a) Statement of compliance

These consolidated 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”) and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed by the Financial Supervisory Commission, ROC.

(b) Basis of preparation

Basis of measurement

Except for the following significant accounts, the consolidated 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) Fair value through other comprehensive income (Available-for-sale) financial assets are measured at fair value;

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

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Functional and presentation currency

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

(c) Basis of consolidation

(i) Principle of preparing consolidated financial statements

The consolidated financial statements comprise the Company and subsidiaries. Subsidiaries are entities controlled by the Group. The Group ‘controls’ an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. Intragroup balances and transactions, and any unrealized income and expenses arising from Intragroup transactions are eliminated in preparing the consolidated financial statements. The Group attributes the profit or loss and each component of other comprehensive income to the owners of the parent and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.

The Group prepares consolidated financial statements using uniform accounting policies for like transactions and other events in similar circumstances. Changes in the Group’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received will be recognized directly in equity, and the Group will attribute it to the owners of the parent.

(ii) List of subsidiaries in the consolidated financial statements:

Investor	The name of subsidiaries	Business activity	Shareholding
			December 31, 2024	December 31, 2023
The Company	Nan Ya Plastics Corporation U.S.A	production of chemical products	100.00 %	100.00 %
The Company	Nan Ya Plastics Corporation America	production of plastic, polyester and chemical products	100.00 %	100.00 %
The Company	Formosa Plastics Group Investment Corp.	investment	100.00 %	100.00 %
The Company	Nan Ya Plastics (Hong Kong) Co., Ltd.	plastics and electronic products trading, investment	100.00 %	100.00 %
The Company	Superior World Wide Trading Co., Ltd.	plastics trading, investment	100.00 %	100.00 %
The Company	Nan Ya PCB Corporation	production of printed circuit board	66.97 %	66.97 %
The Company	Wen Fung Industrial Co., Ltd.	production of electronic components	100.00 %	100.00 %
The Company	Nan Chung Petrochemical Corporation	production of chemical products	50.00 %	50.00 %
The Company	PFG Fiber Glass Corporation	production of glass fiber	100.00 %	100.00 %
The Company	PFG Fiber Glass (Hong Kong) Corporation Limited	investment	100.00 %	100.00 %
Nan Ya PCB Corporation	Nan Ya PCB (U.S.A.) Corporation	retargeting	100.00 %	100.00 %
Nan Ya PCB Corporation	Nan Ya PCB (HK) Corporation	electronic materials trading, investment	100.00 %	100.00 %

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Investor	The name of subsidiaries	Business activity	Shareholding
			December 31, 2024	December 31, 2023
Nan Ya PCB (HK) Corporation	Nan Ya PCB (Kunshan) Corporation	production of printed circuit board	100.00 %	100.00 %
Nan Ya Plastics (Hong Kong) Co., Ltd.	Nan Ya Plastics (Nantong) Co., Ltd.	production of plastic products, steam and electricity	100.00 %	100.00 %
Nan Ya Plastics (Hong Kong) Co., Ltd.	Nan Ya Electric (Nantong) Co., Ltd.	production of switch gear and control panel	100.00 %	100.00 %
Nan Ya Plastics (Hong Kong) Co., Ltd.	China Nantong Huafeng Co., Ltd.	trading	100.00 %	100.00 %
Nan Ya Plastics (Hong Kong) Co., Ltd.	Nantong Huafu Plastics Co., Ltd.	trading	100.00 %	100.00 %
Nan Ya Plastics (Hong Kong) Co., Ltd.	Nan Ya Electronic Materials (Kunshan) Co., Ltd.	production of copper clad laminate, glass fabrics, steam and electricity, copper clad, epoxy	100.00 %	100.00 %
Nan Ya Plastics (Hong Kong) Co., Ltd.	Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd.	production of fiber	100.00 %	100.00 %
Nan Ya Plastics (Hong Kong) Co., Ltd.	Nan Ya Plastics (Guangzhou) Co., Ltd.	production of plastics products	100.00 %	100.00 %
Nan Ya Plastics (Hong Kong) Co., Ltd.	Nan Ya Plastics (Huizhou) Co., Ltd.	production of plastics products	100.00 %	100.00 %
Nan Ya Plastics (Hong Kong) Co., Ltd.	Nan Ya Electronic Materials (Huizhou) Co., Ltd.	production of electronic materials, glass fabrics	100.00 %	100.00 %
Nan Ya Plastics (Hong Kong) Co., Ltd.	Nan Ya Trading (Huizhou) Co., Ltd.	trading	100.00 %	100.00 %
Nan Ya Plastics (Hong Kong) Co., Ltd.	Nan Ya Plastics (Xiamen) Co., Ltd.	production of plastic products	85.00 %	85.00 %
Nan Ya Plastics (Hong Kong) Co., Ltd.	Nan Ya Plastics (Ningbo) Co., Ltd.	production of plastic products and plasticizer	100.00 %	100.00 %
Wen Fung Industrial Co., Ltd.	Wellink Technology Corporation	production of electronic components	100.00 %	100.00 %
Nan Ya Plastics Corporation America	Nan Ya Plastics Corporation Texas	production of chemical products	100.00 %	100.00 %
PFG Fiber Glass (Hong Kong) Corporation Limited	PFG Fiber Glass (Kunshan) Co., Ltd.	production of glass fiber	100.00 %	100.00 %

The Company holds over fifty-percent voting shares of Nan Chung Petrochemical Corporation (Nan Chung) and the general manager of Nan Chung has been designated by the Company. As the Company has control over the operations of Nan Chung, hence, the Company included Nan Chung as one of its subsidiaries in its consolidated financial statements.

(iii) Subsidiaries excluded from the consolidated financial statements: None.

(d) Foreign currency

(i) Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currencies of the Group entities 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.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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 the average exchange 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 Group 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 non controlling interests. When the Group 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 planned nor likely to occur in the foreseeable future. Exchange differences arising from such a monetary item that are considered to form part of the net investment in the foreign operation are recognized in other comprehensive income.

(e) Classification of current and non-current assets and liabilities

The Group 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 the normal operating cycle;
(ii) It is held primarily for the purpose of trading;
(iii) It is expected to be realized within twelve months after the reporting period; or
(iv) The asset is cash or a cash equivalent (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.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The Group 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 Group does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period.

(f) 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 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.

(g) 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 Group 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.

On initial recognition, a financial asset is classified as measured at: amortized cost; Fair value through other comprehensive income (FVOCI); or FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Group 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 (SPPI) on the principal amount outstanding.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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 Group 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.

Debt investments at FVOCI are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in other comprehensive income. On derecognition, gains and losses accumulated in other comprehensive income are reclassified to profit or loss.

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 Group’s right to receive payment is established, which in the case of quoted securities is normally the ex-dividend date.

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 Group 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 Group 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.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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 Group 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 Group 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 as sales for this purpose, and are consistent with the Group’s continuing recognition of the assets.

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 Group 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 Group considers the following:

contingent events that would change the amount or timing of cash flows;
terms that may adjust the contractual coupon rate, including variable rate features;

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

prepayment and extension features; and
terms that limit the Group's claim to cash flows from specified assets (e.g. non-recourse features)

6) Impairment of financial assets

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

debt securities that are determined to have low credit risk at the reporting date; and
other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

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

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

12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months 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 Group 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 Group 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 Group’s historical experience and informed credit assessment, as well as forward-looking information.

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

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

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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 Group in accordance with the contract and the cash flows that the Group expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

At each reporting date, the Group 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 asset is credit-impaired includes the following observable data:

significant financial difficulty of the borrower or issuer;
a breach of contract such as a default or being more than one year past due;
the lender of the borrower, for economic or contractual reasons relating to the borrower's financial difficulty, having granted to the borrower a concession that the lender would not otherwise consider;
it is probable that the borrower will enter bankruptcy or other financial reorganization; or
the disappearance of an active market for a security because of financial difficulties.

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

The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. The Group 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 Group 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 Group’s procedures for recovery of amounts due. Based on its experience, there have been no corporate customer recoveries after six months.

7) Derecognition of financial assets

The Group 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 Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Group 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.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Financial liabilities and equity instruments

1) Classification of debt or equity

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

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

4) Offsetting of financial assets and liabilities

Financial assets and financial liabilities are offset and the net amount presented in the statement of balance sheet when, and only when, the Group 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.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(h) 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.

(i) Investment in associates

Associates are those entities in which the Group 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 consolidated financial statements include the Group’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 Group, from the date on which significant influence commences until the date on which significant influence ceases. The Group 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 Group and an associate are recognized only to the extent of unrelated Group’s interests in the associate.

When the Group’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 Group has incurred legal or constructive obligations or made payments on behalf of the associate.

When the Group 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 Group’s proportionate interest in the net assets of the associate. The Group 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 Group’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.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(j) Joint arrangements

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

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

(ii) the contractual arrangement gives two or more of those parties joint control of the arrangement. IFRS 11 “Joint Arrangements” defines joint control as the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities (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 Group accounts for the assets, liabilities, revenues and expenses in relation to its interest in a joint operation in accordance with the IFRS Accounting Standards applicable to the particular assets, liabilities, revenues and expenses. When assessing whether a joint arrangement is a joint operation or a joint venture, the Group considers the structure and legal form of the arrangement, the terms agreed by the parties in the contractual arrangement and, when relevant, other facts and circumstances.

A joint venture is a joint arrangement whereby the Group has joint control of the arrangement (i.e. joint venturers) in which the Group has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities. The Group 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 Group 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 Group 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 Group reevaluates whether the classification of the joint arrangement has changed.

(k) Investment property

Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services, or for administrative purposes. Investment property is measured at cost on initial recognition, and subsequently at cost, less accumulated depreciation and accumulated impairment losses. Depreciation expense is calculated based on the depreciation method, useful life, and residual value which are the same as those adopted for property, plant and equipment. Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and the carrying amount) is recognized in profit or loss. Rental income from investment property is recognized as other revenue on a straight-line basis over the term of the lease. Lease incentives granted are recognized as an integral part of the total rental income, over the term of the lease.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(l) 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 Group.

(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.

(iv) Reclassification to investment property

A property is reclassified to investment property at its carrying amount when the use of the property changes from owner occupied to investment property.

(m) Lease

At inception of a contract, the Group 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.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(i) As a leasee

The Group 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 Group’s incremental borrowing rate. Generally, the Group 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 Group’s estimate of the amount expected to be payable under a residual value guarantee; or
3) there is a change in the lease term resulting from a change of its assessment on whether it will exercise an option to purchase the underlying asset, or
4) there is a change of its assessment on whether it will exercise a extension or termination option; or
5) there is any lease modifications

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

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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

(ii) As a leasor

When the Group determines whether the lease is a finance lease or an operating leases at commencement date of the contract. To classify each lease, the Group 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 Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

When the Group 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 leas. If a head lease is a short-term lease to which the Group 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 Group applies IFRS 15 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 Group recognizes lease payments received under operating leases as income on a straight-line basis over the lease term as part of 'other income'.

(n) Intangible assets and technical cooperation fee

(i) Intangible assets and technical cooperation fee

Other intangible assets, including intangible assets and technical cooperation fee, that are acquired by the Group and have finite useful lives are measured at cost less accumulated amortization and any accumulated impairment losses.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(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 expenditure, including expenditure on internally generated goodwill and brands, is 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) Trademark 15 years
2) Technical cooperation fee 5~15 years

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

(o) Impairment – Non-financial assets

At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than inventories, contract assets, deferred tax assets and investment properties, measured at fair value) 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. Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.

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.

An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(p) Revenue recognition

(i) Revenue from contracts with customers

Revenue is measured based on the consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. The Group 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 Group’s main types of revenue are explained below.

1) Sale of goods

The Group 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 Group any has objective evidence that all criteria for acceptance have been satisfied.

2) Financing components

The Group 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 Group does not adjust any of the transaction prices for the time value of money.

(q) Contract costs

(i) Incremental costs of obtaining a contract

The Group recognizes the incremental costs of obtaining a contract with a customer as an asset if the Group expects to recover those costs. The incremental costs of obtaining a contract are those costs that the Group 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 Group 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.

(ii) Costs to fulfill 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 Group recognizes an asset from the costs incurred to fulfill 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 Group can specifically identify;

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

the costs generate or enhance resources of the Group 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 Group cannot distinguish whether the costs relate to unsatisfied performance obligations or to satisfied performance obligations (or partially satisfied performance obligations), the Group recognizes these costs as expenses when incurred.

(r) 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 Group’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 Group, 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 Group determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset). Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.

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

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(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 Group 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.

(s) 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 Group has determined that the global minimum top-up tax is an income tax where the Group is required to pay based on IAS 12 Pillar Two. Therefore, the Group 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.

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 Group 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.

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

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

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(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.

(t) Earnings per share

The Group 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. Diluted 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 after adjustment for the effects of all potentially dilutive ordinary shares, such as employee compensation.

(u) Operating segments

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the Group). Operating results of the operating segment are regularly reviewed by the Group's chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance. Each operating segment consists of standalone financial information.

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

In preparing these consolidated 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 Group'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)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The accounting policies involved significant judgments and the information that have significant effect on the amounts recognized in the consolidated financial statements are as follows:

(a) Judgment of whether the Group has substantive control over its investees-Nanya Technology Corporation

The Group holds 29.28% of the outstanding voting shares of Nanya Technology Corporation, which has a total number of 12 directors in its board, including 3 seats representing the Group. Although the Group is the single largest shareholder of the investee, it has no absolute rights and influence on its management decisions. Therefore, it is determined that the Group does not have control over Nanya Technology Corporation.

(b) Judgment of whether the Group has substantive control over its investees-Nan YA Photonics Incorporation

The Group holds 29.01% of the outstanding voting shares of Nan YA Photonics Incorporation, which has a total number of 6 directors in its board, including 2 seats representing the Group. Although the Group is the single largest shareholder of the investee, it has no absolute rights and influence on its management decisions. Therefore, it is determined that the Group does not have control over Nan YA Photonics Incorporation.

The Group holds 45.00% of the outstanding voting shares of Formosa Automobile Sales Corporation, which has a total number of 5 directors, including 2 seats representing the Group. Although the Group is the single largest shareholder of the investee, it has no absolute rights and influence on its management decisions. Therefore, it is determined that the Group does not have control over Formosa Automobile Sales Corporation.

(d) Judgment of whether the Group has substantive control over its investees-Formosa Plastics Transport Corporation

The Group holds 33.33% of the outstanding voting shares of Formosa Plastics Transport Corporation, which has a total number of 7 directors, including 2 seats representing the Group. Although the Group is the single largest shareholder of the investee, it has no absolute rights and influence on its management decisions. Therefore, it is determined that the Group does not have control over Formosa Plastics Transport Corporation.

(e) Judgment of whether the Group has substantive control over its investees-Formosa Environmental Technology Corporation

The Group holds 26.99% of the outstanding voting shares of Formosa Environmental Technology Corporation, which has a total number of 5 directors, including 1 seat representing the Group. Although the Group is the single largest shareholder of the investee, it has no absolute rights and influence on its management decisions. Therefore, it is determined that the Group does not have control over Formosa Environmental Technology Corporation.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(f) Judgment of whether the Group has substantive control over its investees-Hwa Ya Technology Park Management Consulting Corporation

The Group holds 34.00% of the outstanding voting shares of Hwa Ya Technology Park Management Consulting Corporation, which has a total number of 3 directors, including 1 seat representing the Group. Although the Group is the single largest shareholder of the investee, it has no absolute rights and influence on its management decisions. Therefore, it is determined that the Group does not have control over Hwa Ya Technology Park Management Consulting Corporation.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment 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 Group 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(p) for further description of the actuarial assumptions and sensitivity analysis.

The Group’s accounting policies include measuring financial and non-financial assets and liabilities at fair value through profit or loss. The Group establishes a measurement and review mechanism for measuring fair value.

The Group 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(w), financial instruments, for assumptions used in measuring fair value.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(6) Explanation of significant accounts

(a) Cash and Cash Equivalents

	December 31, 2024	December 31, 2023
Cash on hand	$ 1,668	1,265
Cash in banks	7,750,983	23,004,655
Time deposits	43,690,288	49,505,101
Cash equivalents	15,002,434	7,790,165
Cash and cash equivalents	$ 66,445,373	80,301,186

Please refer to note 6(w) for the interest rate risk and fair value sensitivity analysis.

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

	December 31, 2024	December 31, 2023
Current financial assets designated as at fair value through profit or loss:
Funds	$ 1,846,201	1,641,598
	December 31, 2024	December 31, 2023
Non-current financial assets designated as at fair value through profit or loss:
Foreign Bonds	$ 426,630	466,584
Foreign Stocks	238,233	198,937
Total	$ 664,863	665,521

Remeasurement at fair value recognized in profit or loss is disclosed in note 6(v).

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Current financial assets at fair value through other comprehensive income

	December 31, 2024	December 31, 2023
Equity instruments at fair value through other comprehensive income:
Shares of stocks of listes companies	$ 14,407,700	32,339,271
Non-current financial assets at fair value through other comprehensive income
	December 31, 2024	December 31, 2023
Equity instruments at fair value through other comprehensive income:
Shares of stocks of unlisted companies	$ 20,801,552	19,537,040

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

1) The Group designated the investments shown above as equity instruments at fair value through other comprehensive income because these equity instruments represent those investments that the Group 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(w).

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

(d) Notes and trade receivables

	December 31, 2024	December 31, 2023
Notes receivable from operating activities	$ 2,860,716	3,422,762
Trade receivables-measured as amortized cost	39,333,374	35,351,013
Trade receivables-fair value through profit or loss	2,383	12,651
Overdue receivables	1,504	2,053
Less: Loss allowance	(346,156)	(434,262)
	$ 41,851,821	38,354,217

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The Group 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:

	December 31, 2024
	Gross carrying amount	Weighted-average loss rate	Loss allowance provision
Current	$ 41,453,428	0.10%~0.67%	166,938
1 to 3 months past due	319,149	1.75%~13.55%	12,417
3 to 6 months past due	93,615	0.34%~57.72%	2,748
6 to 12 months past due	160,023	3.55%~75%	32,509
More than 1 year past due	171,762	67.09%~100%	131,544
	$ 42,197,977		346,156
	December 31, 2023
	Gross carrying amount	Weighted-average loss rate	Loss allowance provision
Current	$ 38,246,645	0.23%~1.52%	253,980
1 to 3 months past due	296,521	1.28%~68.96%	52,231
3 to 6 months past due	74,560	3.08%~88.56%	8,025
6 to 12 months past due	62,942	11.80%~94.98%	12,215
More than 1 year past due	107,811	100%	107,811
	$ 38,788,479		434,262

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

	For the years ended December 31
	2024	2023
Balance at January 1, 2024 and 2023	$ 434,262	426,025
Impairment (gains) losses recognized	(101,458)	10,726
Foreign exchange losses (gains)	13,352	(2,489)
Balance at December 31, 2024 and 2023	$ 346,156	434,262

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

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The Group 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 Group and the financial institutions were as follows:

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

(e) Other receivables

	December 31, 2024	December 31, 2023
Other receivables-other	$ 2,633,824	3,476,429
Other receivables-loans to associates	194,530	3,299,420
Less: Loss allowance	-	-
Total	$ 2,828,354	6,775,849

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

(f) Inventories

The components of inventories were as follows:

	December 31, 2024	December 31, 2023
Finished goods	$ 14,439,719	14,552,060
Work in process	13,545,403	13,175,227
Machinery and accessories in process	5,736,759	7,513,389
Raw materials	14,230,828	11,751,541
Supplies	2,162,037	1,745,931
Consigned-out raw materials	260,925	1,006,273
Consigned-out finished goods	22,601	21,334
Goods in transit	1,298,022	786,276
Inventories, net	$ 51,696,294	50,552,031

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The details of the operating costs were as follows:

	For the years ended December 31
	2024	2023
Cost of goods sold	$ 232,039,048	230,405,507
Write-down of inventories (Reversal of write-downs)	(21,370)	(306,490)
Unallocated production overheads	9,015,714	10,420,327
	$ 241,033,392	240,519,344

For the years ended December 31, 2024 and 2023, the amounts of inventories recovery benefit recognized due to changes in inventories prices and the loss of inventories decline recognized due to inventory write-down to net realizable value were recognized as cost of revenue.

As of December 31, 2024 and 2023, the Group did not provide any inventory 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:

	December 31, 2024	December 31, 2023
Associates	$ 170,065,840	175,618,957
Joint ventures	557,051	562,432
	$ 170,622,891	176,181,389

(i) Associates

The Group’s share of net income of associates was as follows:

	For the years ended December 31
	2024	2023
The Group’s share of net income of associates	$ 1,399,157	3,893,579

1) The unrealized translation gain or loss arising from the investment in foreign entities, which was based on exchange rates as of December 31, 2024 and 2023, were recognized in comprehensive income.

2) 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.

3) In August 2024, the Group 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%.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

4) In May 2024, the Group 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.

5) In March 2024, the Group 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.

6) In November 2023, the Group participated in the cash capital increase of Formosa Construction Co., Ltd., with a total investment amount of $500,000.

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

8) In July 2023, the Group participated in the cash capital increase of Formosa Smart Energy Tech Corporation with a total investment amounting to $750,000.

9) The Group’s financial information for investments accounted for using the equity method that are individually insignificant was as follows:

	December 31, 2024	December 31, 2023
Carrying amount of individually insignificant associates’ equity	$ 170,065,840	175,618,957
	For the years ended December 31
	2024	2023
Attributable to the Group:
Net Income	$ 1,399,157	3,893,579
Other comprehensive income (loss)	(3,824,125)	3,659,487
Total comprehensive income (loss)	$ (2,424,968)	7,553,066

(ii) Joint ventures

The Group’s share of net income of joint venture was as follows:

	For the years ended December 31
	2024	2023
The Group’s share of net income of joint ventures	$ 15,072	80,591

The Group's financial information on investments in individually insignificant joint venture accounted for using equity method at the reporting date was as follows. This financial information is included in the consolidated financial statements.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	December 31, 2024	December 31, 2023
The carrying value of joint ventures that were not individually material	$ 557,051	562,432
	For the years ended December 31
	2024	2023
Attributable to the Group:
Net income	$ 15,072	80,591
Other comprehensive income	-	-
Total comprehensive income	$ 15,072	80,591

(iii) Collateral

As of December 31, 2024 and 2023, the Group 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

	Land	Building and construction	Machinery and equipment	Transportation equipment	Other facilities	Construction in progress	Total
Cost or deemed cost:
Balance on January 1, 2024	$ 19,255,598	78,610,727	443,259,505	1,655,767	17,754,798	30,712,051	591,248,446
Additions	-	-	1,676,779	10,563	270,239	10,682,870	12,640,451
Disposals	-	(31,845)	(5,027,591)	(42,300)	(402,172)	-	(5,503,908)
Reclassification	2,650	1,150,104	12,964,471	35,332	933,128	(9,572,672)	5,513,013
Effect of movements in exchange rates	4,834	2,211,153	11,272,075	34,250	354,007	709,759	14,586,078
Balance on December 31, 2024	$ 19,263,082	81,940,139	464,145,239	1,693,612	18,910,000	32,532,008	618,484,080
Balance on January 1, 2023	$ 19,198,613	77,046,486	416,548,705	1,661,912	15,425,545	43,042,874	572,924,135
Additions	-	50,626	1,775,903	9,028	293,337	21,828,857	23,957,751
Disposals	(115)	(3,864)	(6,843,935)	(44,522)	(295,873)	-	(7,188,309)
Reclassification	57,037	1,863,733	33,835,590	33,879	2,414,861	(34,097,839)	4,107,261
Effect of movements in exchange rates	63	(346,254)	(2,056,758)	(4,530)	(83,072)	(61,841)	(2,552,392)
Balance on December 31, 2023	$ 19,255,598	78,610,727	443,259,505	1,655,767	17,754,798	30,712,051	591,248,446
Depreciation and impairment loss:
Balance on January 1, 2024	$ -	45,229,310	316,824,433	1,414,703	11,566,735	-	375,035,181
Depreciation for the period	-	2,552,409	18,150,820	66,244	1,086,821	-	21,856,294
Reversal of impairment	-	-	(75)	-	-	-	(75)
Disposals	-	(21,591)	(4,784,210)	(41,740)	(377,858)	-	(5,225,399)
Disposals	-	-	(6,007)	(25,543)	31,494	-	(56)
Effect of movements in exchange rates	-	1,096,649	7,200,994	26,652	220,990	-	8,545,285
Balance on December 31, 2024	$ -	48,856,777	337,385,955	1,440,316	12,528,182	-	400,211,230

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	Land	Building and construction	Machinery and equipment	Transportation equipment	Other facilities	Construction in progress	Total
Balance on January 1, 2023	$ -	42,986,796	305,568,396	1,392,161	11,009,760	-	360,957,113
Depreciation for the period	-	2,475,591	18,705,213	69,906	1,007,428	-	22,258,138
Reversal of impairment	-	-	(936)	(7)	(13,090)	-	(14,033)
Disposals	-	(3,585)	(6,708,556)	(43,741)	(276,930)	-	(7,032,812)
Reclassification	-	594	667,471	417	(102,101)	-	566,381
Effect of movements in exchange rates	-	(230,086)	(1,407,155)	(4,033)	(58,332)	-	(1,699,606)
Balance on December 31, 2023	$ -	45,229,310	316,824,433	1,414,703	11,566,735	-	375,035,181
Carrying amounts:
Balance on December 31, 2024	$ 19,263,082	33,083,362	126,759,284	253,296	6,381,818	32,532,008	218,272,850
Balance on December 31, 2023	$ 19,255,598	33,381,417	126,435,072	241,064	6,188,063	30,712,051	216,213,265

(i) Collateral

Please refer to note 8 for the property, plant and equipment pledged to secure bank loans as of December 31, 2024 and 2023.

(ii) Property, plant and equipment under construction

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 Group amounted to $298,097 and $305,229, respectively. The capitalized interest rate ranged from 1.3210%~6.8840% and 1.1680%~6.7880% for the years ended December 31, 2024 and 2023, respectively.

(i) Right-of-use assets

	Land	Building and construction	Machinery and equipment	Transportation equipment	Total
Cost:
Balance on January 1, 2024	$ 719,877	117,318	83,331	530,780	1,451,306
Additions	3,131	18,623	9,642	84,066	115,462
Disposal	(1,641)	(13,989)	(1,599)	(94,202)	(111,431)
Effect of movements in exchange rates	36,035	46	2,456	35,125	73,662
Balance on December 31, 2024	$ 757,402	121,998	93,830	555,769	1,528,999
Balance on January 1, 2023	$ 728,302	103,498	75,229	570,669	1,477,698
Additions	2,457	18,459	10,561	50,739	82,216
Disposal	(4,320)	(4,954)	(1,691)	(91,712)	(102,677)
Reclassification	(332)	332	-	-	-
variable lease payments	5,092	-	-	-	5,092
Effect of movements in exchange rates	(11,322)	(17)	(768)	1,084	(11,023)
Balance on December 31, 2023	$ 719,877	117,318	83,331	530,780	1,451,306
Accumulated depreciation:
Balance on January 1, 2024	$ 125,499	41,070	29,751	343,873	540,193
Depreciation for the period	29,508	26,655	12,936	99,950	169,049
Disposal	(1,641)	(13,989)	(1,599)	(71,244)	(88,473)
Effect of movements in exchange rates	6,403	38	642	23,481	30,564
Balance on December 31, 2024	$ 159,769	53,774	41,730	396,060	651,333

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	Land	Building and construction	Machinery and equipment	Transportation equipment	Total
Balance on January 1, 2023	$ 102,271	21,206	18,733	311,413	453,623
Depreciation for the period	29,657	24,512	12,876	105,579	172,624
Disposal	(4,320)	(4,715)	(1,691)	(72,928)	(83,654)
Reclassification	(83)	83	-	-	-
Effect of movements in exchange rates	(2,026)	(16)	(167)	(191)	(2,400)
Balance on December 31, 2023	$ 125,499	41,070	29,751	343,873	540,193
Carrying amount:
Balance on December 31, 2024	$ 597,633	68,224	52,100	159,709	877,666
Balance on December 31, 2023	$ 594,378	76,248	53,580	186,907	911,113

(j) Intangible assets

	Trademark
Costs :
Balance at December 31, 2024 (same as balance at January 1, 2024)	$ 2,897,172
Balance at December 31, 2023 (same as balance at January 1, 2023)	$ 2,897,172
Accumulated amortization and impairment losses :
Balance at January 1, 2024	$ 1,376,157
Amortization for the period	193,144
Balance at December 31, 2024	$ 1,569,301
Balance at January 1, 2023	$ 1,183,012
Amortization for the period	193,145
Balance at December 31, 2023	$ 1,376,157
Carrying value :
Balance at December 31, 2024	$ 1,327,871
Balance at December 31, 2023	$ 1,521,015

The amortization expense relating to the intangible assets of the Group for the years ended December 31, 2024 and 2023 were recognized in the administrative expenses in the statements of comprehensive income.

(k) Short-term notes and bills payable

	December 31, 2024	December 31, 2023
Short-term notes and bills payable	$ 43,000,000	36,400,000
Discount on short-term notes and bills payable	(149,614)	(95,797)
Total	$ 42,850,386	36,304,203
Range of interest rates	1.68%~1.87%	1.42%~1.57%

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(l) Short-term borrowings

	December 31, 2024	December 31, 2023
Unsecured short-term loans	$ 22,975,600	31,802,900
Unused short-term credit lines	$ 146,415,358	144,842,818
Range of interest rates	1.75%~1.90%	1.62%~1.76%

As of December 31, 2024 and 2023, The Group did not provide any assets as collaterals for its short-term borrowings.

(m) Long-term borrowings

	December 31, 2024
	Currency	Interest rate	Expiration	Amount
Secured long-term loans	USD	5.6771%~6.9602%	2026	$ 24,786,905
Unsecured long-term loans	TWD	1.7500%~1.9310%	2025~2027	33,247,315
Less: current portion				(20,747,315)
Total				$ 37,286,905
Unused long-term credit lines				$ 19,367,440
	December 31, 2023
---	---	---	---	---
	Currency	Interest rate	Expiration	Amount
Secured long-term loans	USD	6.7013%~6.9602%	2024~2026	$ 24,865,924
Unsecured long-term loans	TWD	1.6250%~1.7895%	2024~2025	31,742,602
Less: current portion				(6,729,400)
Total				$ 49,879,126
Unused long-term credit lines				$ 16,832,975

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

(ii) Pledged assets for bank loans

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

(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 Group has not breached the financial covenants.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(n) Bonds payable

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

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

	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
Issued amount	TWD10,400,000	TWD10,000,000	TWD10,500,000	TWD6,300,000
Balance, end of year	2,099,320	9,992,418	3,723,286	4,597,812
Current portion	2,099,320	-	1,524,298	1,399,334
Issuance date	December 18, 2013	June 24, 2014	September 6, 2018	June 17, 2019
Issuance period	10 years and 12 years	14 years and 15 years	5 years, 7 years and 10 years	5 years, 7 years and 10 years
Coupon rate	1.98% and 2.08%	2.04%	0.83%, 0.91% and 1.07%	0.74%, 0.82% and 0.91%
Interest payment date	December 18	June 24	September 6	June 17
Repayment method	Payable in 2 equal installments for each coupon rate in 2022–2023 and 2024–2025, respectively.	Payable in 2 equal installments for each coupon rate in 2028 and 2029, respectively.	Payable in 2 equal installments for each coupon rate in 2022–2023, 2024–2025, and 2027–2028, respectively.	Payable in 2 equal installments for each coupon rate in 2023–2024, 2025–2026, and 2028–2029, respectively.
	The second domestic unsecured nonconvertible corporate bond in 2019	The first domestic unsecured nonconvertible corporate bond in 2020	The first domestic unsecured nonconvertible corporate bond in 2021	The first domestic unsecured nonconvertible corporate bond 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 10 years	5 years, 7 years and 10 years	5 years and 7 years	5 years and 10 years
Coupon rate	0.71%, 0.75% and 0.84%	0.49%, 0.58% and 0.62%	0.45% and 0.53%	1.57% and 1.77%
Interest payment date	October 15	September 24	June 3	October 5
Repayment method	Payable in 2 equal installments for each coupon rate in 2023–2024, 2025–2026, and 2028–2029, respectively.	Payable in 2 equal installments for each coupon rate in 2024–2025, 2026–2027, and 2029–2030, respectively.	Payable in 2 equal installments for each coupon rate in 2025–2026 and 2027–2028, respectively.	Payable in 2 equal installments for each coupon rate in 2027–2028 and 2032–2033, respectively.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(o) Lease liabilities

The carrying values of lease liabilities were as follows:

	December 31, 2024	December 31, 2023
Current	$ 110,121	130,182
Non-current	$ 185,803	202,261

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

The amounts recognized in profit or loss were as follows:

	For the years ended December 31
	2024	2023
Interest on lease liabilities	$ 10,152	10,080
Expenses relating to short-term leases	$ 187,616	154,040

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

	For the years ended December 31
	2024	2023
Total cash outflow for leases	$ 333,856	309,375

(i) Real estate leases

The Group leases land and buildings for its office space and plants. The leases of land typically run for a period of 4 to 20 years, of office space for 2 to 20 years, and of plants for 3 years. Besides, the rights-of-use for land in mainland China typically run for 50 years. Some leases include an option to renew the lease for an additional period of the same duration after the end of the contract term.

Some leases require the Group 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 Group expects the relative proportions of fixed and variable lease payments to remain broadly consistent in future years.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Other leases

The Group leases transportation equipment, with lease terms of 2 to 7 years. In some cases, the Group has options to purchase the assets at the end of the contract term.

The Group leases machinery and equipment for a period of 3 to 8 years, with an option to extend the lease for the same duration as the original contract upon expiration.

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

(p) Employee Benefits

(i) Defined benefit plans

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

	December 31, 2024	December 31, 2023
Present value of defined benefit obligation	$ 24,562,216	25,539,115
Fair value of plan assets	(15,298,277)	(14,383,906)
Net defined benefit liabilities	$ 9,263,939	11,155,209

The Group 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 Group 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 Group’s Bank of Taiwan labor pension reserve account balance amounted to $15,011,734 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)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated 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:

	For the years ended December 31
	2024	2023
Balance, beginning of year	$ 25,539,115	28,072,240
Current service cost and interest expense	480,970	568,382
Remeasurements of the net defined benefit liabilities:
Actuarial losses (gains) arising from changes in financial assumptions	3,532	4,276
Experience adjustments	915,903	(948,642)
Benefits paid from plan assets	(2,422,158)	(2,197,422)
Increase from transfer of related party employees	34,426	40,162
Effect of movements in exchange rates	10,428	119
Balance, end of year	$ 24,562,216	25,539,115

3) Movements in the fair value of the plan assets

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

	For the years ended December 31
	2024	2023
Balance, beginning of year	$ 14,383,906	13,813,408
Interest income	178,559	173,479
Remeasurements of the net defined benefit liabilities:
Return on plan assets	1,424,363	129,572
Contributions from employer	1,040,339	1,868,295
Benefits paid	(1,744,815)	(1,601,058)
Effect of movements in exchange rates	15,925	210
Balance, end of year	$ 15,298,277	14,383,906

4) Expenses recognized in profit or loss

The expenses recognized in profit or loss were as follows:

	For the years ended December 31
	2024	2023
Current service cost	$ 168,288	223,027
Net interest expense of net defined benefit liabilities	134,123	171,876
Settlement losses	328	301
	$ 302,739	395,204

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	For the years ended December 31
	2024	2023
Operating Costs	$ 231,983	305,366
Selling expenses	12,981	15,793
Administrative expenses	57,775	74,045
	$ 302,739	395,204

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

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

	For the years ended December 31
	2024	2023
Accumulated amount at January 1	$ (4,619,068)	(5,693,006)
Recognized during the period	504,928	1,073,938
Accumulated amount at December 31	$ (4,114,140)	(4,619,068)

6) Actuarial assumptions

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

	December 31, 2024	December 31, 2023
Discount rate	1.25%~5.42%	1.25%~4.76%
Future salary increase rate	2.85%~9.48%	2.85%~9.48%

The expected allocation payment to be made by the Group to the defined benefit plans for the one-year period after the reporting date is $1,041,552.

The weighted average lifetime of the defined benefits plans is 5.3~18 years.

7) Sensitivity analysis

As the principle actuarial assumptions change, the present value of the defined benefit obligation of the Company, Nan Ya PCB Corp., Nan Chung Petrochemical Corp., Wellink Technology Corp., and PFG Fiber Glass Corporation would increase (decrease) as follows:

	Influences of defined benefit obligations
	Increase	Decrease
December 31, 2024
Discount rate( 0.25% variation)	$ (211,483)	217,465
Future salary increasing rate( 1.00% variation)	944,469	(866,384)
December 31, 2023
Discount rate( 0.25% variation)	(256,271)	263,861
Future salary increasing rate( 1.00% variation)	1,137,076	(1,034,837)

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

As the principle actuarial assumptions change, the present value of the defined benefit obligation of Nan Ya Plastics Corporation U.S.A. would increase (decrease) as follows:

	Influences of defined benefit obligations
	Increase	Decrease
December 31, 2024
Discount rate( 1.00% variation)	$ (9,696)	11,421
Future salary increasing rate( 1.50% variation)	3,387	(2,912)
December 31, 2023
Discount rate( 1.00% variation)	(9,985)	11,840
Future salary increasing rate( 1.50% variation)	3,484	(2,973)

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 Labor Pension Act ("The Act") prescribes a defined contribution plan. Pursuant to the Act, the Company, and its subsidiaries namely, Nan Ya PCB Corp., Wen Fung Industrial Corp., Nan Chung Petrochemical Corp., Wellink Technology Corp. and PFG Fiber Glass Corporation have made monthly contributions equal to 6% of each employee's monthly salary to employees' pension accounts.

Nan Ya Plastics Corporation America and Nan Ya PCB (U.S.A.) Corporation adopt a Defined Contribution Plan and periodically provide contributions thereon according to local law. Those contributions are recognized as an expense on an accrual basis.

Subsidiaries in China are governed by China laws and regulation. Based on China laws and regulation, those companies contribute for employees' pension benefits at rates ranging from 6% to 20% of salary every month and remit those contributions to the related authority.

The Group's pension costs under the defined contribution pension plan amounted to $1,591,320 and $1,594,448 for the years ended December 31, 2024 and 2023, respectively.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(q) Income taxes

(i) Income tax expenses

The components of income tax expenses were as follows:

	For the years ended December 31
	2024	2023
Current income tax expenses
Current period	$ 3,978,477	1,625,608
Adjustment for prior periods	515,278	7,776
Deferred tax expenses
Origination and reversal of temporary differences	(3,277,455)	(613,116)
Total income tax expense	$ 1,216,300	1,020,268

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

	For the three months ended December 31
	2024	2023
Items that will not be reclassified subsequently to profit or loss:
Re-measurement from defined benefit plans	$ 101,138	214,875

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

	For the years ended December 31
	2024	2023
Income tax using the Company's domestic tax rate	$ 904,694	1,826,063
Effect of tax rate in foreign jurisdiction	215,040	1,062,467
Tax effect on tax-exempt dividend income	(143,654)	(354,115)
Tax-exempt income	(92,567)	(55,716)
Tax effect on unrecognized deferred assets of tax losses	149,106	1,003,354
Tax effect on unrecognized temporary differences	235	51
Income tax expense arising from investment income in joint ventures	182,692	(87,915)
Tax effect on investment income recognized under equity method	(213,413)	(1,906,942)
Differences between estimated and actual income tax and income tax adjustments on prior years	515,278	7,776
Undistributed earnings additional tax	-	18,711
Other income tax adjustments	(301,111)	(493,466)
Income tax expense	$ 1,216,300	1,020,268

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Deferred tax assets and liabilities

1) Unrecognized deferred tax assets

Deferred tax assets have not been recognized in respect of the following items:

	December 31, 2024	December 31, 2023
The carryforward of unused tax losses	$ 55,575	84,525
Tax effect of deductible temporary differences	595	360
	$ 56,170	84,885

The R.O.C Income Tax Act allows net losses, as assessed by the tax authorities, to offset taxable income over a period of ten years for local tax reporting purposes. Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profit will be available against which the Group can utilize the benefits therefrom.

As of December 31, 2024, the information of the Group’s unutilized business losses for which no deferred tax assets were recognized are as follows:

Occurrence year	Unutilized creditable amount	Expiry date
2014	$ 21,680	2024
2015	93	2025
2017	5,065	2027
2022	17,999	2032
2023	374,644	2033
2024	224,916	2034
	$ 644,397

2) Recognized deferred tax assets and liabilities

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

Deferred tax liabilities:

	Foreign investment income recognized under equity method	Defined benefit plans	Others	Total
Balance on January 1, 2024	$ 12,460,022	4,217	5,698,782	18,163,021
Recognized in profit or loss	(3,521,134)	(246)	(34,950)	(3,556,330)
Recognized in other comprehensive income	-	3,073	-	3,073
Foreign currency translation differences for foreign operations	-	165	322,203	322,368
Balance on December 31, 2024	$ 8,938,888	7,209	5,986,035	14,932,132

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	Foreign investment income recognized under equity method	Defined benefit plans	Others	Total
Balance on January 1, 2023	$ 13,000,752	2,150	6,196,038	19,198,940
Recognized in profit or loss	(540,730)	(162)	(487,331)	(1,028,223)
Recognized in other comprehensive income	-	2,228	-	2,228
Foreign currency translation differences for foreign operations	-	1	(9,925)	(9,924)
Balance on December 31, 2023	$ 12,460,022	4,217	5,698,782	18,163,021

Deferred tax assets:

	Defined benefit plans	Idle capacity	Loss carryforward	Others	Total
Balance on January 1, 2024	$ 2,235,012	125,991	125,888	595,851	3,082,742
Recognized in profit or loss	(276,729)	(17,847)	46,294	(30,593)	(278,875)
Recognized in other comprehensive income	(98,065)	-	-	-	(98,065)
Foreign currency translation differences for foreign operations	-	-	-	(240,341)	(240,341)
Balance on December 31, 2024	$ 1,860,218	108,144	172,182	324,917	2,465,461
Balance on January 1, 2023	$ 2,890,066	163,232	39,682	539,489	3,632,469
Recognized in profit or loss	(442,407)	(37,241)	86,206	(21,665)	(415,107)
Recognized in other comprehensive income	(212,647)	-	-	-	(212,647)
Foreign currency translation differences for foreign operations	-	-	-	78,027	78,027
Balance on December 31, 2023	$ 2,235,012	125,991	125,888	595,851	3,082,742

(iii) Assessment of tax

The Corporation’s income tax return for the year 2022 had been examined by the tax 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 Group is closely monitoring the legislative developments related to the introduction of the Global minimum top-up tax in the jurisdictions where it operates.

The Group 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. For the accounting policy, please refer to note 4(s) of the consolidated financial statement for the year ended December 31, 2024.

(r) Capital and other equity

As of December 31, 2024 and 2023, the Group’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.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(i) Capital surplus

The components of capital surplus were as follows:

	December 31, 2024	December 31, 2023
Paid-in capital from conversion of corporate bond to common stock in excess of par value	$ 8,997,136	8,997,136
Gains on acquisition of Taiwan Plasticizer Corporation	74,474	74,474
Other	17,971,382	18,661,923
Total	$ 27,042,992	27,733,533

(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 first-time 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 Ruling 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 $6,099,065 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)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated 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 Group. 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:

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

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iii) Other equity accounts (net of tax)

	Exchange differences on translation of foreign financial statements	Unrealized gains (losses) on financial assets at fair value through other comprehensive income	Gains (losses) on hedging instruments	Total
Balance at January 1, 2024	$ (8,713,581)	31,006,389	8,072	22,300,880
Exchange differences arising on translation of foreign operations	9,244,188	-	-	9,244,188
Exchange differences on associates / joint ventures accounts for using equity method	2,508,486	-	-	2,508,486
Unrealized gains (losses) from financial assets at fair value through other comprehensive income	-	(16,654,006)	-	(16,654,006)
Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income, associates and joint ventures accounted for using equity method	-	(6,229,102)	-	(6,229,102)
Share of cash flow hedge of associates / joint ventures	-	-	(28,921)	(28,921)
Disposal of investments accounted for using equity method	-	(27,487)	-	(27,487)
Balance at December 31, 2024	$ 3,039,093	8,095,794	(20,849)	11,114,038
Balance at January 1, 2023	$ (6,503,889)	27,101,700	153	20,597,964
Exchange differences arising on translation of foreign operations	(1,999,288)	-	-	(1,999,288)
Exchange differences on associates / joint ventures accounted for using equity method	(210,404)	-	-	(210,404)
Unrealized gains (losses) from financial assets at fair value through other comprehensive income	-	18,283	-	18,283
Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income, associates and joint ventures accounted for using equity method	-	3,886,406	-	3,886,406
Share of cash flow hedge of associates / joint ventures	-	-	7,919	7,919
Balance at December 31, 2023	$ (8,713,581)	31,006,389	8,072	22,300,880

(s) 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

(ii) 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

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(t) Revenue from contracts with customers

For the years ended December 31, 2024

	Plastics industry	Chemical industry	Electronic industry	Polyester industry	Other industries	Total
Primary geographical markets
Taiwan	$ 17,828,427	19,354,276	20,293,628	10,622,027	4,398,191	72,496,549
China	8,246,677	16,669,987	64,257,155	3,016,126	570,062	92,760,007
U.S.A.	8,073,316	8,227,184	2,873,428	25,665,773	55,493	44,895,194
Other	5,089,117	14,111,852	20,940,310	9,205,645	109,809	49,456,733
	$ 39,237,537	58,363,299	108,364,521	48,509,571	5,133,555	259,608,483
Major Products
PVC sheet	$ 4,802,884	-	-	-	-	4,802,884
Rigid sheet	6,450,712	-	-	-	-	6,450,712
Pipes	6,607,665	-	-	-	-	6,607,665
Phthalate Plasticizers	-	8,762,685	-	-	-	8,762,685
BPA	-	14,714,025	-	-	-	14,714,025
EG	-	14,529,040	-	-	-	14,529,040
CCL	-	-	27,172,144	-	-	27,172,144
Epoxy	-	-	21,553,688	-	-	21,553,688
PCB	-	-	32,282,706	-	-	32,282,706
Polyester Staple Fiber	-	-	-	8,097,740	-	8,097,740
PET Resin	-	-	-	23,162,827	-	23,162,827
DTY	-	-	-	11,071,329	-	11,071,329
Machinery and Switchgear	-	-	-	-	4,707,155	4,707,155
Others	21,376,276	20,357,549	27,355,983	6,177,675	426,400	75,693,883
	$ 39,237,537	58,363,299	108,364,521	48,509,571	5,133,555	259,608,483

For the years ended December 31, 2023

	Plastics industry	Chemical industry	Electronic industry	Polyester industry	Other industries	Total
Primary geographical markets
Taiwan	$ 17,233,559	20,634,683	23,906,214	9,865,610	4,352,078	75,992,144
China	10,283,979	13,542,975	62,974,682	2,969,298	781,330	90,552,264
U.S.A.	7,124,750	5,753,062	3,339,469	24,824,870	40,187	41,082,338
Other	3,896,485	14,968,788	25,325,623	7,550,816	386,886	52,128,598
	$ 38,538,773	54,899,508	115,545,988	45,210,594	5,560,481	259,755,344
Major Products
PVC sheet	$ 5,144,009	-	-	-	-	5,144,009
Rigid sheet	6,092,284	-	-	-	-	6,092,284
Pipes	6,821,880	-	-	-	-	6,821,880
Phthalate Plasticizers	-	8,987,654	-	-	-	8,987,654
BPA	-	11,661,881	-	-	-	11,661,881
EG	-	11,935,211	-	-	-	11,935,211
CCL	-	-	25,194,149	-	-	25,194,149
Epoxy	-	-	23,346,952	-	-	23,346,952
PCB	-	-	42,251,797	-	-	42,251,797
Polyester Staple Fiber	-	-	-	8,089,833	-	8,089,833
PET Resin	-	-	-	21,980,845	-	21,980,845
DTY	-	-	-	9,638,814	-	9,638,814
Machinery and Switchgear	-	-	-	-	5,218,526	5,218,526
Others	20,480,600	22,314,762	24,753,090	5,501,102	341,955	73,391,509
	$ 38,538,773	54,899,508	115,545,988	45,210,594	5,560,481	259,755,344

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(u) Remunerations to employees

According to the Articles of Incorporation, once the Company has annual profit, 0.05% to 0.5% of the earnings before tax and bonuses should be appropriated to employees as remuneration. 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 remuneration.

The remunerations to employees amounted to $3,896 and $5,743, respectively, for the years ended December 31, 2024 and 2023, respectively. These amounts were calculated using the Company's pre-tax income for each period before deducting the remunerations of employees, multiplied by the proposed percentage of remunerations of employees as stated in the Company's Articles of Incorporation. These remunerations were expensed under operating costs or expenses for each period. If there are any subsequent adjustments to the actual remuneration amounts after the annual shareholders' meeting, the adjustments will be regarded as changes in accounting estimates and will be reflected in profit or loss in the following year.

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

(v) Non-operating income and expenses

(i) Interest income

The details of interest income were as follows:

	For the years ended December 31
	2024	2023
Interest income from bank deposits	$ 1,964,348	2,309,563
Other interest income	320,950	418,019
	$ 2,285,298	2,727,582

(ii) Other income

The details of other income were as follows:

	For the years ended December 31
	2024	2023
Dividend income	$ 778,116	1,811,176
Other income	2,521,128	2,553,837
	$ 3,299,244	4,365,013

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iii) Other gains and losses

The details of other gains and losses were as follows:

	For the years ended December 31
	2024	2023
(Losses) gains on disposal of property, plant and equipment	$ (22,531)	2,147
Gains on disposal of investment	3,934	-
Gains from lease modifications	6,846	1,712
Foreign currency exchange gains	1,746,664	252,957
Gains on financial assets at fair value through profit or loss	160,546	23,994
Reversal of impairment losses on plant, property, and equipment	75	14,033
Disaster losses	(241,332)	-
Others	(229,186)	(217,248)
	$ 1,425,016	77,595

(iv) Finance costs

The details of finance costs were as follows:

	For the years ended December 31
	2024	2023
Interest expense	$ 4,645,948	4,303,126
Less: interest capitalized	(298,097)	(305,229)
	$ 4,347,851	3,997,897

(w) Financial Instruments

(i) Credit Risk

1) Credit risk exposure

The Group 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 Group’s exposure to credit risk concentration is expected to be low. Also, the Group mitigates its exposure by evaluating the customers’ financial situation regularly.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Liquidity risk

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

	Carrying amount	Contractual cash flows	Within 6 months	6-12 months	1-2 years	2-5 years	Over 5 years
December 31, 2024
Non-derivative financial liabilities
Short-term notes and bills payable	$ 42,850,386	43,000,000	43,000,000	-	-	-	-
Notes and trade payables	7,689,760	7,689,760	7,689,760	-	-	-	-
Trade payables to related parties	7,363,533	7,363,533	7,363,533	-	-	-	-
Short-term borrowings	22,975,600	23,332,371	23,023,671	308,700	-	-	-
Long-term borrowings (including current portion)	58,034,220	61,505,367	4,891,179	21,528,292	22,468,204	12,617,692	-
Bonds payable (including current portion)	56,482,406	59,337,148	4,449,890	6,845,108	7,871,370	32,395,975	7,774,805
Lease liabilities	295,924	323,549	75,042	48,116	63,183	79,641	57,567
	$ 195,691,829	202,551,728	90,493,075	28,730,216	30,402,757	45,093,308	7,832,372
December 31, 2023
Non-derivative financial liabilities
Short-term notes and bills payable	$ 36,304,203	36,400,000	36,400,000	-	-	-	-
Notes and trade payables	11,305,522	11,305,522	11,305,522	-	-	-	-
Trade payables to related parties	5,058,154	5,058,154	5,058,154	-	-	-	-
Short-term borrowings	31,802,900	31,897,130	31,897,130	-	-	-	-
Long-term borrowings (including current portion)	56,608,526	62,055,483	3,999,437	7,160,229	29,220,224	21,675,593	-
Bonds payable (including current portion)	65,742,467	69,393,803	1,156,180	8,900,475	11,294,998	32,281,185	15,760,965
Lease liabilities	332,443	350,764	71,330	62,065	79,918	69,833	67,618
	$ 207,154,215	216,460,856	89,887,753	16,122,769	40,595,140	54,026,611	15,828,583

The Group does not expect the cash flows included in the maturity analysis to occur significantly earlier or at significantly different amounts.

(iii) Currency risk

1) Exposure to foreign currency risk

The Group’s significant exposure to foreign currency risk was as follows:

	December 31, 2024
	Foreign Currency	Exchange Rate	TWD
Financial assets
Monetary items
USD	$ 907,747	32.7810	29,756,854
JPY	781,324	0.2087	163,062
EUR	2,583	34.0652	87,990
HKD	956	4.2027	4,018
CNY	53,305	4.5603	243,087

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	December 31, 2024
	Foreign Currency	Exchange Rate	TWD
Non-monetary items
USD	$ 112,327	32.7810	3,682,191
CNY	63,782	4.5603	290,865
IDR	154,459,272	0.0021	324,364
VND	3,937,174,287	0.0013	5,118,327
Financial liabilities
Monetary items
USD	47,990	32.7810	1,573,160
JPY	1,018,920	0.2087	212,649
EUR	3,103	34.0652	105,704
CNY	11,909	4.5603	54,309
	December 31, 2023
---	---	---	---
	Foreign Currency	Exchange Rate	TWD
Financial assets
Monetary items
USD	$ 700,267	30.7350	21,522,706
JPY	197,307	0.2172	42,855
EUR	1,445	33.9755	49,095
HKD	886	3.9404	3,491
CNY	37,341	4.3396	162,045
Non-monetary items
USD	116,976	30.7350	3,995,257
CNY	66,388	4.3396	288,097
IDR	154,459,272	0.0020	308,919
VND	4,184,706,161	0.0013	5,440,118
Financial liabilities
Monetary items
USD	65,766	30.7350	2,021,318
JPY	2,212,642	0.2172	480,586
EUR	2,965	33.9755	100,737
CNY	14,493	4.3396	62,894

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

2) Sensitivity analysis

The Group’s exposure to exchange rate risk arises from the foreign currency exchange fluctuations on cash and cash equivalents, accounts receivable, other receivables, loans and borrowings, accounts payable and other payables that are dominated in foreign currency. 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, HKD and CNY as of December 31, 2024 and 2023 were as follows:

	For the years ended December 31
	2024	2023
Appreciation in value of 1%	$ 283,085	(191,122)
Depreciation in value of 1%	(283,085)	191,122

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

3) Foreign exchange gain and loss on monetary items

Since the Group has many kinds of functional currency, the information on foreign exchange gain (loss) on monetary items is disclosed by total amount. For the years ended December 31, 2024 and 2023, the foreign exchange gain (loss) (including realized and unrealized portions) amounted to gain $1,746,664 and gain $252,957, respectively.

(iv) Interest rate analysis

Please refer to the notes on liquidity risk management and interest rate exposure of the Group's financial assets and liabilities.

The following sensitivity analysis is based on the risk exposure to the interest rates risk 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 reasonable 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 $608,579 and $598,871 for the years ended December 31, 2024 and 2023, respectively.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated 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:

	For the years ended December 31
	2024	2023
	Other comprehensive income before tax	Other comprehensive income before tax
Prices of securities at the reporting date
Increasing 1%	$ 144,077	323,393
Decreasing 1%	$ (144,077)	(323,393)

(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 through other comprehensive income is measured on a recurring basis. The carrying amount and fair value of the Group’s financial assets and liabilities, including the information on fair value hierarchy were as follows; 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 lease liabilities, disclosure of fair value information is not required:

	December 31, 2024
	Book Value	Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss
Designated at fair value through profit or loss	$ 2,511,064	-	1,846,201	664,863	2,511,064
Trade receivables	2,383	-	-	-	-
Total	$ 2,513,447	-	1,846,201	664,863	2,511,064
Financial assets at fair value through other comprehensive income
Stocks in listed companies	$ 14,407,700	14,407,700	-	-	14,407,700
Unquoted equity instruments	20,801,552	-	-	20,801,552	20,801,552
Total	$ 35,209,252	14,407,700	-	20,801,552	35,209,252
Financial assets measured at amortized cost
Cash and cash equivalent	$ 66,445,373	-	-	-	-
Notes and trade receivables (including related parties)	41,849,438	-	-	-	-
Other receivables (including related parties)	2,828,354	-	-	-	-
Total	$ 111,123,165	-	-	-	-

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	December 31, 2024
	Book Value	Fair Value
		Level 1	Level 2	Level 3	Total
Financial liabilities at amortized cost
Short-term borrowings	$ 22,975,600	-	-	-	-
Short-term notes and bills payable	42,850,386	-	-	-	-
Notes and trade payables
(including related parties)	15,053,293	-	-	-	-
Bonds payable
(including due within on year)	56,482,406	-	-	-	-
Long-term borrowings
(including due within on year)	58,034,220	-	-	-	-
Lease liabilities	295,924	-	-	-	-
Total	$ 195,691,829	-	-	-	-
	December 31, 2023
	Book Value	Fair Value
		Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss
Designated at fair value through profit or loss	$ 2,307,119	-	1,641,598	665,521	2,307,119
Trade receivables	12,651	-	-	-	-
Total	$ 2,319,770	-	1,641,598	665,521	2,307,119
Financial assets at fair value through other comprehensive income
Stocks in listed companies	$ 32,339,271	32,339,271	-	-	32,339,271
Unquoted equity instruments	19,537,040	-	-	19,537,040	19,537,040
Total	$ 51,876,311	32,339,271	-	19,537,040	51,876,311
Financial assets measured at amortized cost
Cash and cash equivalent	$ 80,301,186	-	-	-	-
Notes and trade receivables
(including related parties)	38,341,566	-	-	-	-
Other receivables
(including related parties)	6,775,849	-	-	-	-
Total	$ 125,418,601	-	-	-	-
Financial liabilities at amortized cost
Short-term borrowings	$ 31,802,900	-	-	-	-
Short-term notes and bills payable	36,304,203	-	-	-	-
Notes and trade payables
(including related parties)	16,363,676	-	-	-	-
Bonds payable
(including due within on year)	65,742,467	-	-	-	-
Long-term borrowings
(including due within on year)	56,608,526	-	-	-	-
Lease liabilities	332,443	-	-	-	-
Total	$ 207,154,215	-	-	-	-

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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

The Group’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 are 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.

If the financial instrument of the Group 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.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

If the financial instruments held by the Group are not traded in active markets, the valuation of their fair value is categorized as follows:

Bond investments that has no quoted prices: Fair value is measured with the income approach by applying the discounted cash flow method that convert future cash flow amounts to a single current amount on the basis of the value indicated by current market expectations about those future amounts.

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

	Fair value through profit and loss	Fair value through other comprehensive income
	Bond investment and others	Unquoted equity instruments
Balance at January 1, 2024	$ 665,521	19,537,040
Total gains and losses recognized:
In profit or loss	(44,057)	-
In other comprehensive income	-	1,262,644
Return of capital from capital reduction	-	(3,484)
Effect of exchange rate changes	43,399	5,352
Balance at December 31, 2024	$ 664,863	20,801,552
Balance at January 1, 2023	$ 759,912	16,106,851
Total gains and losses recognized:
In profit or loss	5,333	-
In other comprehensive income	-	3,436,965
Return of capital from capital reduction	-	(6,847)
Disposals	(101,466)	-
Effect of exchange rate changes	1,742	71
Balance at December 31, 2023	$ 665,521	19,537,040

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 Group'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.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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

Most of the Group’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.

Quantified information of significant unobservable inputs was as follows:

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

8) Fair value measurement in Level 3 - sensitivity analysis of the possible alternative assumptions

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:

	Input	Change	Recognized in other comprehensive income
			Favorable change	Unfavorable change
December 31, 2024
Financial assets at fair value through other comprehensive income – unquoted equity instruments	Price to earnings ratio multiple, price to book ratio multiple, enterprise value to operating income ratio multiple, enterprise value to EBITDA multiple, discount for lack of marketability	± 1%	$ 179,282	(179,282)
December 31, 2023
Financial assets at fair value through other comprehensive income – unquoted equity instruments	Price to earnings ratio multiple, price to book ratio multiple, enterprise value to operating income ratio multiple, enterprise value to EBITDA multiple, discount for lack of marketability	± 1%	$ 157,387	(157,387)

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(x) Financial risk management

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

1) Credit risk
2) Liquidity risk
3) Market risk

The following likewise discusses the Group'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 consolidated financial statements.

(ii) Structure of risk management

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

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

(iii) Credit risk

Credit risk is the risk of financial loss to the Group 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 Group’s finance department. As the Group’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 Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’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 Group’s reputation.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated 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 Group’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 Group is exposed to currency risk due to global transactions that are denominated in a currency other than the respective functional currency of the Group, primarily 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 Group has foreign currency needs, the Group uses spot exchange contracts and forward exchange contracts if the exchange rate is advantageous to the Group to manage the risk. If necessary, the Group 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 Group.

2) Interest rate risk

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

The Group manages interest rate risks by using derivatives when necessary, to lower the risk to acceptable levels.

3) Other market price risk

The Group is exposed to fair value change risk due to financial assets at fair value through other comprehensive income, which were measured at fair value.

(y) Capital Management

Although business operated by the Group 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 Group’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)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The Group 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 Group’s debt-to-equity ratio at the end of the reporting period were as follows:

	December 31, 2024	December 31, 2023
Total liabilities	$ 254,870,192	271,443,894
Less: cash and cash equivalents	(66,445,373)	(80,301,186)
Net debt	$ 188,424,819	191,142,708
Total equity	$ 362,603,305	377,084,059
Debt-to-equity ratio	34.20 %	33.64 %

(z) Reconciliation of liabilities arising from financing activities

	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)	Total liabilities arising from financing activities
Balance as of January 1, 2024	$ 31,802,900	36,304,203	56,608,526	65,742,467	332,443	190,790,539
Change in cash from financing activities	(8,827,449)	6,600,000	(266,710)	(9,275,000)	(136,088)	(11,905,247)
Non-cash changes	-	(53,817)	71,968	14,939	85,658	118,748
Foreign exchange movement	149	-	1,620,436	-	13,911	1,634,496
Balance as of December 31, 2024	$ 22,975,600	42,850,386	58,034,220	56,482,406	295,924	180,638,536
Balance as of January 1, 2023	$ 38,775,000	35,449,361	35,825,562	64,321,492	410,466	174,781,881
Change in cash from financing activities	(6,973,279)	900,000	20,841,230	1,404,826	(145,255)	16,027,522
Non-cash changes	-	(45,158)	(64,521)	16,149	66,573	(26,957)
Foreign exchange movement	1,179	-	6,255	-	659	8,093
Balance as of December 31, 2023	$ 31,802,900	36,304,203	56,608,526	65,742,467	332,443	190,790,539

(7) Related-party transactions

(a) Parent company and ultimate controlling party

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

(b) Names and relationship with related parties

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

Name of related party	Relationship with the Group
Formosa Petrochemical Corporation	Associates
Nanya Technology Corporation	Associates
Formosa Resources Corporation	Associates
Formosa Heavy Industries Corporation	Associates

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Name of related party	Relationship with the Group
Formosa Heavy Industries (Ningbo) Co., Ltd.	Associates
Formosa Smart Energy Tech Corporation	Associates
Nan Ya Photonics Incorporation	Associates
Formosa Fairway Corporation	Associates (Note)
Formosa Industries Corporation	Associates
Formosa Group (Cayman) Limited	Associates
Formosa Environmental Technology Corporation	Associates
Formosa Advanced Technologies Co., Ltd.	Associates
Nan Ya Plastics (Zhengzhou) Co., Ltd.	Joint ventures
Nanya Kyowa Plastics (Nantong) Co., Ltd.	Joint ventures
P.T. Indonesia Nanya Indah Plastics Co.	Joint ventures
Formosa Plastics Corporation	Other related parties
Formosa Chemicals and Fiber Corporation	Other related parties
Formosa Taffeta Co., Ltd	Other related parties
Formosa Taffeta Viet Nam Co., Ltd	Other related parties
Formosa Ha Tinh (Cayman) Ltd.	Other related parties
Formosa Ha Tinh Steel Corporation	Other related parties
China Man-made Fiber Corporation	Other related parties
Formosa Industries (Ningbo) Co., Ltd.	Other related parties
Formosa Chemicals and Fiber (Ningbo) Corporation	Other related parties
Xiamen Haicang Investment Group Co., Ltd.	Other related parties
Formosa Plastics Marine Corporation	Other related parties
Formosa Plastics Corporation U.S.A.	Other related parties
Formosa Industries Corporation, U.S.A.	Other related parties
Formosa Electronic (Ningbo) Co., Ltd.	Other related parties
Formosa Ineos Chemicals Corporation	Other related parties
Ming Chi University Of Technology	Other related parties

Note : Formosa Fairway Corporation was previously an investee company accounted for by the Company using the equity method. However, the Company's entire equity shares in Formosa Fairway Corporation has been divested as of March 25, 2024. Hence, it is no longer considered as an affiliated of the Company thereafter.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(i) Sales to related parties

The amounts of significant sales by the Group to related parties were as follows:

	For the years ended December 31
	2024	2023
Associates and joint ventures	$ 4,486,152	3,381,606
Other related parties	8,629,994	9,623,571
	$ 13,116,146	13,005,177

The receivables from related parties were as follows:

	December 31, 2024	December 31, 2023
Associates and joint ventures	$ 1,036,691	474,421
Other related parties	771,056	646,873
	$ 1,807,747	1,121,294

The selling prices and collection terms of sales to domestic 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 Group from related parties were as follows:

	For the years ended December 31
	2024	2023
Associates and joint ventures
Formosa Petrochemical Corporation	$ 16,905,926	17,750,787
Other associates and joint ventures	303,151	259,449
Other related parties
Formosa Chemicals and Fiber Corporation	24,022,469	24,436,553
Other related parties	26,428,329	19,310,390
	$ 67,659,875	61,757,179

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The payables to related parties were as follows:

	December 31, 2024	December 31, 2023
Associates and joint ventures
Formosa Petrochemical Corporation	$ 1,885,543	998,957
Other associates and joint ventures	45,926	136,650
Other related parties
Formosa Chemicals and Fiber Corporation	1,922,607	1,993,408
Formosa Plastics Corporation U.S.A.	1,731,793	66,682
Other related parties	1,777,248	1,862,313
	$ 7,363,117	5,058,010

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 were as follows:

Investee	For the year ended December 31, 2024			For the year ended December 31, 2023
	Unrealized sales profit at beginning of period	(Realized) Unrealized sales profits	Unrealized sales profit at end of period	Unrealized sales profit at beginning of period	(Realized) Unrealized sales profits	Unrealized sales profit at end of period
Associates and joint ventures	$ 47,511	1,054	48,565	37,814	9,697	47,511

(iv) Construction

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

	For the years ended December 31
	2024	2023
Associates and joint ventures
Formosa Heavy Industries Corporation	$ 601,688	307,826
The payables to related parties were as follows:
	December 31, 2024	December 31, 2023
Formosa Heavy Industries Corporation	$ 416	144

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(v) Utility expenses

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

	For the years ended December 31
	2024	2023
Associates and joint ventures
Formosa Petrochemical Corporation	$ 3,854,060	5,400,412
Other related parties
Other related parties	121,942	115,713
	$ 3,976,002	5,516,125

The payables to related parties were as follows:

	December 31, 2024	December 31, 2023
Associates and joint ventures
Formosa Petrochemical Corporation	$ 56	839

(vi) Property transactions

1) Purchases of property, plant and equipment

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

	For the years ended December 31
	2024	2023
Associates and other related parties	$ 232,775	353,906

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).

2) Acquisitions of financial assets

	Financial Statement Account	Transaction Shares (in thousands)	Transaction Items	For the year ended December 31, 2024
Associate - Formosa Smart Energy Tech Corporation	Investments accounted for using equity method	250,000	Shares of stock of Formosa Smart Energy Tech Corporation	$ 2,500,000

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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

	For the years ended December 31, 2024		For the years ended December 31, 2023
	Disposal price	Gain (loss) from disposal	Disposal price	Gain (loss) from disposal
Nanya Technology Corporation	$ 350	43	-	-
P.T. Indonesia Nanya Indah Plastics Co	15,112	509	-	-
Formosa Petrochemical Corporation	34	34	-	-
	$ 15,496	586	-	-

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:

	Other receivables from related parties
	December 31, 2024	December 31, 2023
Associates and joint ventures
Formosa Steel IB PTy Ltd	$ -	1,622,500
Other associates and joint ventures	117,004	157,452
Other related parties
Formosa Plastics Marine Corporation	-	1,445,695
Other related parties	77,526	73,773
	$ 194,530	3,299,420

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The borrowings from related parties were as follows:

	Other payable to related parties
	December 31, 2024	December 31, 2023
Other related parties
China Man-made Fiber Corporation	$ 300,000	-

(viii) Endorsements and guarantees

The amounts of the Group’s endorsements and guarantees for securing related parties’ loans were as follows:

	December 31, 2024	December 31, 2023
Associates and joint ventures
Formosa Group (Cayman) Limited	$ 8,195,250	7,683,750

(ix) Leases

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

	For the years ended December 31
	2024	2023
Associates and joint ventures
Nan Ya Technology Corporation	$ 463,813	436,075

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 Group's offices and buildings leased its relate parties, recognized as operating costs and expenses, were as follows:

	Financial Statement Account	December 31, 2024	December 31, 2023
Other related parties
Formosa Petrochemical Corporation	Lease liabilities	$ 1,367	-
Formosa Chemicals and Fiber Corporation	Lease liabilities	1,367	-
Ming Chi University Of Technology	Lease liabilities	51,795	55,118
Associates and joint ventures
Formosa Petrochemical Corporation	Lease liabilities	1,367	-
		$ 55,896	55,118

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	Interest expense
	For the years ended December 31
	2024	2023
Other related parties
Formosa Petrochemical Corporation	$ 23	6
Formosa Chemicals and Fiber Corporation	23	5
Ming Chi University Of Technology	758	804
Associates and joint ventures
Formosa Petrochemical Corporation	23	-
	$ 827	815

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

(d) Key management personnel compensation

	For the years ended December 31
	2024	2023
Short-term employee benefits	$ 198,133	202,866

(8) Pledged assets

The carrying values of pledged assets were as follows

Pledged assets	Object	Usage	December 31, 2024	December 31, 2023
Current financial assets at fair value through other comprehensive income – shares of stocks of Formosa Plastics Corporation	Others	The collateral to provisional execution in litigation	$ 452,128	1,008,691
Investment accounted for using equity method – stock of Formosa Petrochemical Corporation	Others	The collateral to provisional execution in litigation	-	58,099
Other current assets – time deposits	Others	The collateral to provisional execution in litigation	16,500	-
Buildings	Bank loans	Bank loans	37,537,524	37,247,786
Other non current assets – cash in bank	Others	The collateral to provisional execution in litigation	73,602	-
Other non current assets – time deposits	Bank loans	Bank loans	1,639,050	-
Total			$ 39,718,804	38,314,576

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(9) Significant Commitments and contingencies

	December 31, 2024	December 31, 2023
(a) Outstanding standby letter of credit	$ 288,484	851,668
(b) Endorsements and guarantees	8,195,250	7,683,750
(c) Bonding guarantees by banks	26,000	22,000
(d) Letters of credit guarantees by banks	39,500	48,000

(e) 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.

(f) 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.

(g) 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.

(h) 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.

(i) 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.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(j) 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.

(k) 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.

(l) 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, DBTEL filed a lawsuit to the Taipei District Court on June 29, 2018, seeking compensation for 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

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(12) Other

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

| by function
by item | For the years ended December 31, | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | 2024 | | | | 2023 | | | |
| | Operating Costs | Operating expenses | Non-Operating expenses | Total | Operating Costs | Operating expenses | Non-Operating expenses | Total |
| Employee benefit | | | | | | | | |
| Salaries | 21,652,011 | 5,470,319 | - | 27,122,330 | 22,389,702 | 5,569,523 | - | 27,959,225 |
| Labor and health insurance | 2,297,740 | 420,642 | - | 2,718,382 | 2,371,514 | 424,776 | - | 2,796,290 |
| Pension expenses | 1,533,434 | 360,625 | - | 1,894,059 | 1,612,684 | 376,968 | - | 1,989,652 |
| Remuneration of directors | - | 38,502 | - | 38,502 | - | 39,384 | - | 39,384 |
| Others personnel expenses | 1,353,919 | 255,342 | - | 1,609,261 | 1,395,184 | 262,751 | - | 1,657,935 |
| Depreciation | 21,009,535 | 1,009,398 | 13,008 | 22,031,941 | 21,495,756 | 919,592 | 21,818 | 22,437,166 |
| Amortization | 393,601 | 276,160 | - | 669,761 | 746,395 | 260,823 | - | 1,007,218 |

(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.

(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.

(x) Significant transactions and business relationship between the Company and its subsidiaries: Please see attached Table 8.

(b) Information on investees: Please see attached Table 9.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(d) Major shareholders:

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

(a) General Information

The Group’s four reportable segments are: plastics products, plastic materials, electronic materials and fiber products. Plastic products department mainly engaged in the manufacture and sale of flexible PVC sheets and other plastics processing products; plastic materials department is mainly engaged in the manufacture and sale of ethylene glycol and other plastic petrochemical raw materials; electronic materials department is mainly engaged in the manufacture and sale of copper clad laminate; fiber products department is mainly engaged in the manufacture and sale of polyester products.

The Group’s reportable segments are responsible for the Group’s strategic business units, including the manufacturing and supplying of different products. As each strategic business unit requires different technology and marketing strategies, each unit is administered individually.

(b) Segment revenue and operating results

The Group uses the internal management report that the chief operating decision maker reviews as the basis to determine resource allocation and make a performance evaluation. The internal management report includes profit before taxation, excluding any shares of profit (loss) of associates and joint ventures accounted for using equity method, income tax, extraordinary gains and losses, and foreign exchange gains and losses, because they are managed on a group basis, and hence they are not allocated to each reportable segment. In addition, not all reportable segments include depreciation and amortization of significant non-cash items. The reportable amount is similar to that in the report used by the chief operating decision maker.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

There were no material differences between the accounting policies adopted for the Group’s operating segments and those described in Note 4. The terms and conditions for the Group’s intersegment sales and transfers are the same as those of third-party transactions, which are measured at market price.

Operating segments are combined and reconciled as follows:

	For the year ended December 31, 2024
	Plastics Product	Plastics Material	Electronic Materials	Polyester Product	Other Department	Reconciliations	Total
Revenue:
Net revenue from external customers	$ 39,237,537	58,363,299	108,364,521	48,509,571	5,133,555	-	259,608,483
Net revenue from sales among intersegments	1,167,842	7,551,360	18,748,977	1,492,169	3,229,497	(32,189,845)	-
Interest revenue	175,010	102,611	1,089,719	3,815	997,799	(83,656)	2,285,298
Total revenue	$ 40,580,389	66,017,270	128,203,217	50,005,555	9,360,851	(32,273,501)	261,893,781
Interest expense	$ 201,703	149,606	357,394	181,756	3,462,654	(5,262)	4,347,851
Depreciation and amortization	1,977,746	6,346,442	11,837,638	1,777,710	762,166	-	22,701,702
Share of profit (loss) of associates and joint ventures accounted for using equity method							1,414,229
Reportable segment profit or loss	$ 3,389,975	(3,453,379)	1,938,218	(342,053)	3,969,587	(978,878)	4,523,470
Reportable segment assets	$ 35,959,314	93,005,689	178,947,364	29,523,992	477,550,049	(197,512,911)	617,473,497
Reportable segment liabilities	$ 7,275,703	34,725,739	39,659,625	8,726,924	171,945,501	(7,463,300)	254,870,192
	For the year ended December 31, 2023
---	---	---	---	---	---	---	---
	Plastics Product	Plastics Material	Electronic Materials	Polyester Product	Other Department	Reconciliations	Total
Revenue:
Net revenue from external customers	$ 38,538,773	54,899,508	115,545,988	45,210,594	5,560,481	-	259,755,344
Net revenue from sales among intersegments	1,114,501	6,725,227	15,313,024	1,624,750	3,397,431	(28,174,933)	-
Interest revenue	186,834	134,621	1,448,454	3,398	1,034,828	(80,553)	2,727,582
Total revenue	$ 39,840,108	61,759,356	132,307,466	46,838,742	9,992,740	(28,255,486)	262,482,926
Interest expense	$ 162,262	136,461	334,509	167,645	3,306,389	(109,369)	3,997,897
Depreciation and amortization	1,841,089	7,173,722	11,426,525	1,716,712	1,286,336	-	23,444,384
Share of profit (loss) of associates and joint ventures accounted for using equity method							3,974,170
Reportable segment profit or loss	$ 2,813,248	(5,812,667)	7,776,124	(562,509)	7,845,038	(2,928,919)	9,130,315
Reportable segment assets	$ 37,719,177	90,049,608	191,081,319	30,703,505	507,544,927	(208,570,583)	648,527,953
Reportable segment liabilities	$ 9,164,925	48,188,029	44,599,112	10,129,188	165,493,363	(6,130,723)	271,443,894

Further explanations of the significant reconciling items of reportable segment information exhibited above are described as follows:

The eliminations of the Group’s intersegment revenue amounted to $32,273,501 and $28,255,486 in 2024 and 2023, respectively.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The Group’s revenues from continuing operations from external customers by location of operations and information about its non-current assets by location of assets are as follows:

Geographic	For the years ended December 31
	2024	2023
Net Revenue from External Customers:
Taiwan	$ 72,496,549	75,992,144
China and HK	95,348,266	92,907,058
U.S.A.	44,895,194	41,082,338
Others	46,868,474	49,773,804
	$ 259,608,483	259,755,344
Geographic	December 31, 2024	December 31, 2023
Non-current Assets:
Taiwan	$ 124,564,893	124,175,612
China and HK	59,063,031	60,870,561
U.S.A.	53,685,314	48,791,786
	$ 237,313,238	233,837,959

Non-current assets include property, plant and equipment, intangible assets, technology development expense, prepayments for purchase of equipment and other assets, but do not include financial instruments, deferred tax assets, post-employment benefit assets, and non-current assets arising from insurance contracts.

(d) Information about major customers

There is no single customer’s sale which exceeds 10% of the Group’s revenues.

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

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		Individual Funding Loan Limits (Note 3.4)	Maximum Limitation on Fund Financing (Note 3.4)
													Item	Value
0	The Company	Formosa Plastics Group Investment Corp. (Note 6)	Other receivables from related parties	YES	100,000	100,000	-	-	2	-	Operating capital	-	-	-	34,658,322	173,291,612
0	The Company	Wellink Technology Corporation (Note 6)	Other receivables from related parties	YES	100,000	100,000	-	-	2	-	Operating capital	-	-	-	34,658,322	173,291,612
0	The Company	PFG Fiber Glass Corporation (Note 6)	Other receivables from related parties	YES	500,000	500,000	-	-	2	-	Operating capital	-	-	-	34,658,322	173,291,612
0	The Company	Nan Ya Plastics (Hong Kong) Co., Ltd. (Note 6)	Other receivables from related parties	YES	500,000	500,000	-	-	2	-	Operating capital	-	-	-	34,658,322	173,291,612
0	The Company	Formosa Plastics Construction Corporation (Note 6)	Other receivables from related parties	YES	5,200,000	150,000	-	-	2	-	Operating capital	-	-	-	86,645,806	173,291,612
0	The Company	Nan Chung Petrochemical Corporation (Note 6)	Other receivables from related parties	YES	300,000	300,000	300,000	2.9%	2	-	Operating capital	-	-	-	86,645,806	173,291,612
0	The Company	Formosa Heavy Industries Corporation	Other receivables from related parties	YES	7,600,000	5,700,000	-	-	2	-	Operating capital	-	-	-	86,645,806	173,291,612
0	The Company	Formosa Petrochemical Corporation	Other receivables from related parties	YES	6,000,000	4,500,000	-	-	2	-	Operating capital	-	-	-	86,645,806	173,291,612
0	The Company	Formosa Plastics Corporation	Other receivables from related parties	YES	6,000,000	4,500,000	-	-	2	-	Operating capital	-	-	-	86,645,806	173,291,612
0	The Company	Formosa Chemicals and Fiber Corporation	Other receivables from related parties	YES	6,000,000	4,500,000	-	-	2	-	Operating capital	-	-	-	86,645,806	173,291,612
0	The Company	Formosa Steel IB Pty Ltd	Other receivables from related parties	YES	1,622,500	-	-	1.99433%-2.170171%	2	-	Operating capital	-	-	-	86,645,806	173,291,612
1	Nan Ya Plastics Corporation America	Nan Ya Plastics Corporation Texan (Note 6)	Other receivables from related parties	YES	11,801,160	-	-	6.3908%-6.591%	2	-	Operating capital	-	-	-	23,357,427	46,714,856
1	Nan Ya Plastics Corporation America	Nan Ya Plastics Corporation U.S.A. (Note 6)	Other receivables from related parties	YES	3,278,100	3,278,100	2,097,403	5.780%-6.604%	2	-	Operating capital	-	-	-	23,357,427	46,714,856
2	Nan Ya Plastics (Hong Kong) Co., Ltd.	Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. (Note 6)	Other receivables from related parties	YES	1,824,140	1,824,140	1,824,140	0.70%	2	-	Operating capital	-	-	-	48,745,061	97,490,121
3	Wen Fung Industrial Co., Ltd.	Wellink Technology Corporation (Note 6)	Other receivables from related parties	YES	23,000	23,000	-	-	2	-	Operating capital	-	-	-	25,372	253,717
3	Wen Fung Industrial Co., Ltd.	Formosa Environmental Technology Corporation	Other receivables from related parties	YES	60,000	60,000	60,000	1.99433%-2.176365%	2	-	Operating capital	-	-	-	101,487	253,717
3	Wen Fung Industrial Co., Ltd.	Formosa Fairway Corporation	Other receivables from related parties	YES	15,000	-	-	1.99433%-1.99433%	2	-	Operating capital	-	-	-	101,487	253,717
4	Nan Ya Trading (Haizhou) Co., Ltd.	Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. (Note 6)	Other receivables from related parties	YES	1,276,898	1,276,898	1,276,898	2.48%-2.76%	2	-	Operating capital	-	-	-	1,938,136	3,876,272
5	Nan Ya Plastics (Xiamen) Co., Ltd.	Xiamen Haicung Investment Group Co., Ltd.	Other receivables from related parties	YES	77,526	77,526	77,526	2.76%-2.84%	2	-	Operating capital	-	-	-	290,330	580,660
6	Nan Ya Plastics (Xiamen) Co., Ltd.	Nan Ya Plastics (Zhengzhou) Co., Ltd.	Other receivables from related parties	YES	95,767	57,004	57,004	2.48%-2.84%	2	-	Operating capital	-	-	-	290,330	580,660

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		Individual Funding Loan Limits (Note 3.4)	Maximum Limitation on Fund Financing (Note 3.4)
													Item	Value
6	Nan Ya Plastics (Nantong) Co., Ltd.	Nan Ya Draw Textured Yarn (Kanshan) Co., Ltd. (Note 6)	Other receivables from related parties	YES	346,587	-	-	2.76%–2.76%	2	-	Operating capital	-	-	-	5,763,052	11,526,104
7	China Nantong Haafeng Co., Ltd.	Nan Ya Draw Textured Yarn (Kanshan) Co., Ltd. (Note 6)	Other receivables from related parties	YES	177,854	177,854	177,854	2.48%–2.76%	2	-	Operating capital	-	-	-	186,013	372,027
8	Nantong Huafu Plastics Co., Ltd.	Nan Ya Draw Textured Yarn (Kanshan) Co., Ltd. (Note 6)	Other receivables from related parties	YES	50,164	50,164	50,164	2.48%–2.76%	2	-	Operating capital	-	-	-	53,571	107,142
9	Nan Ya Electronic Materials (Kanshan) Co., Ltd.	Nan Ya Draw Textured Yarn (Kanshan) Co., Ltd. (Note 6)	Other receivables from related parties	YES	2,093,201	2,093,201	2,093,201	2.48%–2.76%	2	-	Operating capital	-	-	-	30,283,364	60,566,728
10	Nan Ya Electronic Materials (Kanshan) Co., Ltd.	Nan Ya Electronic Materials (Huizhou) Co., Ltd. (Note 6)	Other receivables from related parties	YES	6,521,301	6,156,473	3,876,298	2.48%–2.92%	2	-	Operating capital	-	-	-	30,283,364	60,566,728
11	Nan Ya Plastics (Ningbo) Co., Ltd.	Nan Ya Draw Textured Yarn (Kanshan) Co., Ltd. (Note 6)	Other receivables from related parties	YES	1,085,363	-	-	2.48%–2.76%	2	-	Operating capital	-	-	-	6,989,101	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 limited.

Note 5: Reporting currency of Nan Ya Plastics corporation, America and Nan Ya Plastics corporation USA are denominated in USD, and the exchange rate of TWD to USD as of December 31, 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.

Note 6: This transaction has already been written off during the consolidation process.

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

GUARANTEES AND ENDORSEMENTS FOR OTHER PARTIES

FOR THE YEAR ENDED DECEMBER 31, 2024

(Expressed in thousands of New Taiwan Dollars)

TABLE 2

No	Endorsement Guarantee Provider	Counterparty of Guarantees and Endorsement		Limitation Amount of Guarantees and Endorsements for a Specific Enterprise	Highest Balance for Guarantee and Endorsements during the Period	Ending Balance of Guarantees and Endorsements as of December 31,2024	Amount Secured by Guaranteed and Endorsed Property	Amount of Endorsement Guarantee Collateralized to 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 Par Company	Endorsements Guarantees to the Third Parties on Behalf of the Companies in Mainland China
		Name	Relationship with The Company (Note)
0	The Company	Furnose Group (Cayman) Ltd.	6	225,279,094	8,289,066	8,195,256	8,195,256	-	2.50%	450,538,190	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 invoices.

(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 invoices in proportion to their stockholding percentage.

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

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

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

Security Holder	Category and Name of Security	Relationship Between Issuer of Security and the Company which Holds Securities	Account Name	December 31,2024				Highest Percentage of Ownership During the Year	Notes
				Number of Shares (in thousands)	Carrying Value	Shareholding Percentage	Market Value or Net Asset Value
The Company	Mega International Private USD Money Market	-	Financial assets valued at FVTPL -current	4,554	1,846,201	-	1,846,201	-
The Company	Formosa Plastics Corporation	Other related parties	Financial assets valued at FVTOCI -current	294,793	10,465,155	4.63%	10,465,155	4.63%	Note 1
The Company	Formosa Chemicals and Fiber Corporation	Other related parties	Financial assets valued at FVTOCI -current	140,520	3,836,187	2.40%	3,836,187	2.40%
The Company	Formosa Group Ocean Marine Investment Corporation	Other related parties	Financial assets valued at FVTOCI -non current	3	8,820,458	19.00%	8,820,458	19.00%
The Company	Formosa Plastics Corporation U.S.A.	Other related parties	Financial assets valued at FVTOCI -non current	2	560,475	0.51%	560,475	0.51%
The Company	Ostendo Technologies Inc.	-	Financial assets valued at FVTOCI -non current	150	-	0.12%	-	0.12%
The Company	Formosa Plastics Maritime Corp.	Other related parties	Financial assets valued at FVTOCI -non current	4,442	249,968	18.00%	249,968	18.00%
The Company	Formosa International Development Co., Ltd.	Other related parties	Financial assets valued at FVTOCI -non current	20,471	191,372	18.00%	191,372	18.00%
The Company	Mai Liao Harbor Administration Corp.	Other related parties	Financial assets valued at FVTOCI -non current	39,562	1,053,347	17.98%	1,053,347	17.98%
The Company	Formosa Plastics Marine Corporation	Other related parties	Financial assets valued at FVTOCI -non current	16,234	599,906	15.00%	599,906	15.00%
The Company	ASIA Pacific Investment Co.	Other related parties	Financial assets valued at FVTOCI -non current	63,717	1,339,788	14.99%	1,339,788	14.99%
The Company	Formosa Technologies Corporation	Other related parties	Financial assets valued at FVTOCI -non current	2,925	455,243	12.50%	455,243	12.50%
The Company	Central Leasing Corp.	-	Financial assets valued at FVTOCI -non current	1,779	-	1.07%	-	1.07%
The Company	Chinese Television System Inc.	-	Financial assets valued at FVTOCI -non current	1,769	21,142	1.04%	21,142	1.04%
The Company	China Investment & Development Company, Limited	-	Financial assets valued at FVTOCI -non current	1,287	2,447	0.80%	2,447	0.80%

Security Holder	Category and Name of Security	Relationship Between Issuer of Security and the Company which Holds Securities	Account Name	December 31,2024				Highest Percentage of Ownership During the Year
				Number of Shares (in thousands)	Carrying Value	Shareholding Percentage	Market Value or Net Asset Value
The Company	Taiwan Aerospace Corp.	-	Financial assets valued at FVTOCI —non current	1,070	29,959	0.79%	29,959	0.79%
The Company	Guang Yuan Securities Investment Consulting Corporation	-	Financial assets valued at FVTOCI —non current	3,750	38,363	3.91%	38,363	3.91%
The Company	Mega Growth Capital Venture	-	Financial assets valued at FVTOCI —non current	1,042	8,951	1.97%	8,951	1.97%
The Company	Formosa Ha Tinh (Cayman) Ltd.	-	Financial assets valued at FVTOCI —non current	621,178	6,719,738	11.43%	6,719,738	11.43%
Nan Ya PCB Corporation	Formosa Plastics Corporation	Other related parties	Financial assets valued at FVTOCI —current	2,996	106,358	0.05%	106,358	0.05%
Nan Ya Plastics Corporation America	Sutton (Bonds)	-	Financial assets valued at FVTPL—non current	-	426,630	-	426,630	-
Nan Ya Plastics Corporation America	MBIA Insurance Corp. (Preferred Stock)	-	Financial assets valued at FVTPL—non current	-	238,233	-	238,233	-
Nan Ya Plastics (Hong Kong) Co., Ltd.	Hua Ya (Dong Ying) Plastics Corp.	-	Financial assets valued at FVTOCI —non current	-	389,262	15.00%	389,262	15.00%
Nan Ya Plastics (Hong Kong) Co., Ltd.	Hua Ya (Wu Hu) Plastics Corp.	-	Financial assets valued at FVTOCI —non current	-	321,133	15.00%	321,133	15.00%

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

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

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 (Note 1)	Financial Statement Account	Counter-party (Note 2)	Relationships (Note 2)	Beginning Balance		Purchases (Note 3)		Sales (Note 3)				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	Nan Ya Plastics Corporation Texas	Investments accounted for using equity method	Nan Ya Plastics Corporation Texas	Parent-subsidiary	3	2,738,991	-	15,675,100	-	-	-	-	3	16,109,171
The Company	Formosa Smart Energy Tech Corporation	Investments accounted for using equity method	Formosa Smart Energy Tech Corporation	Investments accounted for using equity method	175,000	1,733,910	250,000	2,500,000	-	-	-	-	425,000	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.

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

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				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.	BPA process area and finished product silo	2020.7.30	RMB 257,631	RMB 246,396	China MCC20 Group Corporation Ltd.	Unrelated party	-	-	-	-	Negotiation	Plant expansion	None
Nan Ya Electronic Materials (Huizhou) Co., Ltd.	Construction in progress	2023.7.14	RMB 174,809	RMB 60,678	China Construction Seventh Engineering Division. Corp. Ltd.	Unrelated party	-	-	-	-	Negotiation	Plant expansion	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.

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

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				Abnormal Transaction		Notes/Accounts (Payable) Receivable		Notes
			Purchases / (Sales)	Amount	% to total purchase(sales)	Credit Period	Unit Price	Payment Term	Ending Balance	% to Total
The Company	Formosa Plastics Corporation	Other related parties	(Sales)	(2,091,240)	(1.65)%	30 days	-	-	130,676	0.82%
The Company	Formosa Chemicals and Fiber Corporation	Other related parties	(Sales)	(5,310,361)	(4.31)%	30 days	-	-	573,097	3.60%
The Company	Nan Ya PCB Corporation	Subsidiaries	(Sales)	(1,636,724)	(1.33)%	30 days	-	-	141,638	0.89%	None
The Company	Formosa Petrochemical Corporation	Associates	(Sales)	(1,690,893)	(1.37)%	30 days	-	-	210,599	1.32%
The Company	Nanya Technology Corporation	Associates	(Sales)	(378,179)	(0.31)%	30 days	-	-	124,739	0.78%
The Company	Formosa Heavy Industries Corporation	Associates	(Sales)	(615,481)	(0.50)%	30 days	-	-	341,105	2.15%
The Company	Formosa Talfista Co., Ltd.	Other related parties	(Sales)	(500,341)	(0.41)%	30 days	-	-	38,009	0.24%
The Company	Nan Ya Plastics Corporation U.S.A.	Subsidiaries	(Sales)	(1,179,837)	(0.96)%	O/A105 days	-	-	643,932	4.05%	None
The Company	Nan Ya Plastics Corporation America	Subsidiaries	(Sales)	(184,248)	(0.15)%	O/A105 days	-	-	109,482	0.69%	None
The Company	Nan Ya Electronic Materials (Huizhou) Co., Ltd.	Subsidiaries	(Sales)	(3,904,367)	(3.17)%	O/A180 days	-	-	766,057	4.82%	None
The Company	Nan Ya Plastics (Nantong) Co., Ltd.	Subsidiaries	(Sales)	(337,137)	(0.27)%	O/A150 days	-	-	81,741	0.51%	None
The Company	Nan Ya Electronic Materials (Kanshan) Co., Ltd.	Subsidiaries	(Sales)	(2,544,315)	(2.07)%	O/A150 days	-	-	572,121	3.60%	None
The Company	Formosa Industries Corporation	Associates	(Sales)	(251,429)	(0.20)%	O/A150 days	-	-	54,149	0.34%
The Company	Nan Ya Draw Textured Yarn (Kanshan) Co., Ltd.	Subsidiaries	(Sales)	(243,692)	(0.20)%	O/A150 days	-	-	65,302	0.41%	None
The Company	Nan Ya Plastics (Ningbo) Co., Ltd.	Subsidiaries	(Sales)	(782,475)	(0.64)%	O/A150 days	-	-	66,173	0.42%	None
The Company	Formosa Plastics Corporation	Other related parties	Purchases	8,592,039	10.97%	30 days	-	-	(683,892)	(7.73)%
The Company	Formosa Chemicals and Fiber Corporation	Other related parties	Purchases	23,404,477	29.89%	30 days	-	-	(1,820,523)	(20.58)%
The Company	Formosa Petrochemical Corporation	Associates	Purchases	16,904,004	21.59%	30 days	-	-	(1,885,496)	(21.32)%
The Company	PFG Fiber Glass Corporation	Subsidiaries	Purchases	1,944,133	2.48%	30 days	-	-	(173,451)	(1.96)%	None
The Company	Formosa Industries Corporation	Associates	Purchases	266,736	0.34%	O/A150 days	-	-	(45,438)	(0.51)%
The Company	Formosa Inse Chemicals Corporation	Other related parties	Purchases	106,184	0.14%	30 days	-	-	(6,422)	(0.07)%
The Company	Nan Ya Electronic Materials (Kanshan) Co., Ltd.	Subsidiaries	Purchases	402,037	0.51%	O/A150 days	-	-	(60,617)	(0.69)%	None
The Company	Nan Ya Draw Textured Yarn (Kanshan) Co., Ltd.	Subsidiaries	Purchases	837,826	1.07%	O/A150 days	-	-	(158,752)	(1.79)%	None
Nan Ya PCB Corporation	The Company	Parent	Purchases	1,636,724	17.05%	30 days	-	-	(141,630)	(13.17)%
Nan Ya PCB Corporation	Nan Ya PCB (Kanshan) Corporation	Subsidiaries	Purchases	4,079,415	42.50%	30 days	-	-	(361,726)	(33.64)%	None
Nan Ya PCB Corporation	Formosa Advanced Technologies Co., Ltd.	Associates	(Sales)	(244,226)	(1.12)%	70 days	-	-	7,861	0.18%
Nan Ya PCB (Kanshan) Corporation	Nan Ya PCB Corporation	Subsidiaries	(Sales)	(4,079,415)	(28.12)%	30 days	-	-	361,726	12.34%	None
Nan Ya PCB (Kanshan) Corporation	Nan Ya Electronic Materials (Kanshan) Co., Ltd.	Same chairman	Purchases	757,021	9.80%	60 days	-	-	(47,428)	(5.89)%
Nan Ya PCB (Kanshan) Corporation	Formosa Advanced Technologies Co., Ltd.	Associates	(Sales)	(401,063)	(2.76)%	70 days	-	-	46,707	1.59%
Nan Ya PCB (Kanshan) Corporation	Welfink Technology Corporation	Same chairman	Purchases	123,980	1.61%	60 days	-	-	(19,988)	(2.48)%	None
Welfink Technology Corporation	Nan Ya PCB (Kanshan) Corporation	Subsidiaries	(Sales)	(123,980)	(71.20)%	O/A150 days	-	-	19,988	66.82%	None
PFG Fiber Glass Corporation	The Company	Parent	(Sales)	(1,944,133)	(67.37)%	30 days	-	-	173,451	80.21%	None
PFG Fiber Glass Corporation	Formosa Chemicals and Fiber Corporation	Other related parties	Purchases	304,070	27.74%	30 days	-	-	(24,788)	(23.12)%
Nan Ya Plastics Corporation U.S.A.	Formosa Plastics Corporation U.S.A.	Other related parties	Purchases	628,414	22.12%	payment within one month	-	-	(44,162)	(5.43)%
Nan Ya Plastics Corporation U.S.A.	The Company	Parent	Purchases	1,179,837	41.53%	O/A105 days	-	-	(643,932)	(79.21)%	None
Nan Ya Plastics Corporation U.S.A.	Nan Ya Plastics Corporation America	Subsidiaries	Purchases	133,593	4.70%	payment within one month	-	-	(19,355)	(2.38)%
Nan Ya Plastics Corporation America	Formosa Plastics Corporation U.S.A.	Other related parties	(Sales)	(216,257)	(0.67)%	payment within one month	-	-	612	0.02%
Nan Ya Plastics Corporation America	Nan Ya Plastics Corporation U.S.A.	Subsidiaries	(Sales)	(133,593)	(0.42)%	payment within one month	-	-	19,355	0.48%
Nan Ya Plastics Corporation America	Formosa Plastics Corporation U.S.A.	Other related parties	Purchases	5,022,244	17.18%	payment within one month	-	-	(511,937)	(45.10)%
Nan Ya Plastics Corporation America	The Company	Parent	Purchases	184,248	0.63%	O/A105 days	-	-	(109,482)	(9.65)%	None

Company Name	Related Party	Relationship	Transaction Details				Abnormal Transaction	Notes/Accounts (Payable) Receivable		Notes
			Purchases / (Sales)	Amount	% to total purchase/index	Credit Period	Unit Price	Payment Term	Ending Balance	% to Total
Nax Ya Plastics Corporation America	Formosa Chemicals and Fiber Corporation	Other related parties	Purchases	313,922	1.67%	30 days	-	-	(77,296)	(6.81)%
Nax Ya Plastics Corporation America	Nan Ya Plastics Corporation Texas	Subsidiaries	Purchases	1,489,012	5.10%	payment within one month	-	-	(386,807)	(34.08)%
Nax Ya Plastics Corporation Texas	Nan Ya Plastics Corporation America	Subsidiaries	(Sales)	(1,489,012)	(18.70)%	payment within one month	-	-	386,807	41.29%
Nax Ya Plastics Corporation Texas	Formosa Plastics Corporation U.S.A.	Other related parties	(Sales)	(285,566)	(3.59)%	payment within one month	-	-	0	0.00%
Nax Ya Plastics Corporation Texas	Formosa Plastics Corporation U.S.A.	Other related parties	Purchases	777,502	14.49%	payment within one month	-	-	(1,175,694)	(89.21)%
PFG Fiber Glass (Kanahan) Co., Ltd.	Nan Ya Electronic Materials (Kanahan) Co., Ltd.	Subsidiaries	(Sales)	(1,815,896)	(62.01)%	60 days	-	-	176,024	39.64%
PFG Fiber Glass (Kanahan) Co., Ltd.	Nan Ya Electronic Materials (Huizhou) Co., Ltd.	Subsidiaries	(Sales)	(364,198)	(12.44)%	60 days	-	-	140,128	31.55%
PFG Fiber Glass (Kanahan) Co., Ltd.	Nan Ya Electronic Materials (Kanahan) Co., Ltd.	Subsidiaries	Purchases	128,461	9.70%	60 days	-	-	(13,977)	(8.87)%
Nax Ya Plastics (Xiamen) Co., Ltd.	Formosa Industries (Ningbo) Co., Ltd.	Other related parties	Purchases	121,409	13.75%	60 days	-	-	(22,432)	(47.63)%
Nax Ya Electronic Materials (Huizhou) Co., Ltd.	The Company	Parent	Purchases	3,904,367	30.67%	O/A180 days	-	-	(766,057)	(23.91)%
Nax Ya Electronic Materials (Huizhou) Co., Ltd.	PFG Fiber Glass (Kanahan) Co., Ltd.	Subsidiaries	Purchases	364,198	2.86%	60 days	-	-	(140,128)	(4.37)%
Nax Ya Electronic Materials (Huizhou) Co., Ltd.	Nan Ya Electronic Materials (Kanahan) Co., Ltd.	Subsidiaries	Purchases	6,805,308	53.46%	180 days	-	-	(2,286,492)	(71.36)%
Nax Ya Electronic Materials (Huizhou) Co., Ltd.	Nan Ya Electronic Materials (Kanahan) Co., Ltd.	Subsidiaries	(Sales)	(145,347)	(1.04)%	180 days	-	-	26,918	0.64%
Nax Ya Plastics (Nantong) Co., Ltd.	The Company	Parent	Purchases	337,157	8.10%	O/A150 days	-	-	(81,741)	(20.39)%
Nax Ya Plastics (Nantong) Co., Ltd.	Formosa Industries (Ningbo) Co., Ltd.	Other related parties	Purchases	899,335	21.62%	60 days	-	-	(46,072)	(11.49)%
Nax Ya Electric (Nantong) Co., Ltd.	Nan Ya Electronic Materials (Kanahan) Co., Ltd.	Subsidiaries	(Sales)	(162,928)	(20.15)%	60 days	-	-	2,448	1.09%
Nax Ya Electric (Nantong) Co., Ltd.	Formosa Industries (Ningbo) Co., Ltd.	Other related parties	(Sales)	(155,664)	(19.25)%	60 days	-	-	11,784	5.24%
Nax Ya Plastics (Ningbo) Co., Ltd.	Nan Ya Electronic Materials (Kanahan) Co., Ltd.	Subsidiaries	(Sales)	(4,883,507)	(34.23)%	60 days	-	-	315,688	36.98%
Nax Ya Plastics (Ningbo) Co., Ltd.	Formosa Chemicals and Fiber (Ningbo) Corporation	Other related parties	Purchases	9,856,907	75.33%	60 days	-	-	(941,152)	(92.23)%
Nax Ya Plastics (Ningbo) Co., Ltd.	The Company	Parent	Purchases	782,475	5.98%	O/A150 days	-	-	(66,173)	(6.48)%
Nax Ya Electronic Materials (Kanahan) Co., Ltd.	The Company	Parent	(Sales)	(402,037)	(0.92)%	O/A150 days	-	-	60,617	0.53%
Nax Ya Electronic Materials (Kanahan) Co., Ltd.	Nan Ya Electronic Materials (Huizhou) Co., Ltd.	Subsidiaries	(Sales)	(6,805,308)	(15.62)%	180 days	-	-	2,286,492	19.98%
Nax Ya Electronic Materials (Kanahan) Co., Ltd.	Nan Ya PCB (Kanahan) Corporation	Same chairman	(Sales)	(757,021)	(1.74)%	30 days	-	-	47,428	0.41%
Nax Ya Electronic Materials (Kanahan) Co., Ltd.	PFG Fiber Glass (Kanahan) Co., Ltd.	Subsidiaries	(Sales)	(128,461)	(0.29)%	60 days	-	-	13,977	0.12%
Nax Ya Electronic Materials (Kanahan) Co., Ltd.	Nan Ya Draw Textured Yarn (Kanahan) Co., Ltd.	Subsidiaries	(Sales)	(374,902)	(0.86)%	60 days	-	-	41,132	0.36%
Nax Ya Electronic Materials (Kanahan) Co., Ltd.	The Company	Parent	Purchases	2,544,315	6.78%	O/A150 days	-	-	(572,121)	(23.04)%
Nax Ya Electronic Materials (Kanahan) Co., Ltd.	PFG Fiber Glass (Kanahan) Co., Ltd.	Subsidiaries	Purchases	1,815,896	4.84%	60 days	-	-	(176,026)	(7.09)%
Nax Ya Electronic Materials (Kanahan) Co., Ltd.	Nan Ya Electronic Materials (Huizhou) Co., Ltd.	Subsidiaries	Purchases	145,347	0.39%	180 days	-	-	(26,910)	(1.08)%
Nax Ya Electronic Materials (Kanahan) Co., Ltd.	Nan Ya Plastics (Ningbo) Co., Ltd.	Subsidiaries	Purchases	4,883,507	13.00%	60 days	-	-	(315,686)	(12.71)%
Nax Ya Electronic Materials (Kanahan) Co., Ltd.	Nan Ya Electric (Nantong) Co., Ltd.	Subsidiaries	Purchases	162,928	0.43%	60 days	-	-	(2,448)	(0.10)%
Nax Ya Draw Textured Yarn (Kanahan) Co., Ltd.	The Company	Parent	Purchases	243,692	9.50%	O/A150 days	-	-	(65,302)	(45.63)%
Nax Ya Draw Textured Yarn (Kanahan) Co., Ltd.	Nan Ya Electronic Materials (Kanahan) Co., Ltd.	Subsidiaries	Purchases	374,902	14.61%	60 days	-	-	(41,132)	(28.74)%
Nax Ya Draw Textured Yarn (Kanahan) Co., Ltd.	Formosa Industries Corporation	Associates	(Sales)	(609,667)	(16.12)%	O/A151 days	-	-	184,358	38.61%
Nax Ya Draw Textured Yarn (Kanahan) Co., Ltd.	The Company	Parent	(Sales)	(837,826)	(22.15)%	O/A150 days	-	-	158,752	33.25%

Note : The transaction has been written off during the consolidation process.

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

INFORMATION REGARDING RECEIVABLES FROM RELATED-PARTIES WITH AMOUNTS EXCEEDING THE LOWER OF TWD 100 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		Amounts Received in Subsequent Periods	Allowance for Bad Debts
					Amount	Action Taken
The Company	Formosa Plastics Corporation	Other related parties	Receivables from related parties :	130,676	16.19	-	-	92,088
The Company	Formosa Chemicals and Fiber Corporation	Other related parties	Receivables from related parties :	573,097	10.36	-	-	573,097
The Company	Nan Ya PCB Corporation(Note 1)	Subsidiaries	Receivables from related parties :	141,630	12.16	-	-	141,630
The Company	Formosa Petrochemical Corporation	Assosiates	Receivables from related parties :	210,599	8.49	-	-	145,004
The Company	Nanya Technology Corporation	Assosiates	Receivables from related parties :	124,739	5.31	-	-	75,740
The Company	Formosa Heavy Industries Corporation	Assosiates	Receivables from related parties :	341,105	3.58	-	-	231,688
The Company	Nan Ya Plastics Corporation U.S.A.(Note 1)	Subsidiaries	Receivables from related parties :	643,932	1.91	-	-	1,117
The Company	Nan Ya Plastics Corporation America(Note 1)	Subsidiaries	Receivables from related parties :	109,482	1.27	-	-	9,652
The Company	Nan Ya Electronic Materials (Huizhou) Co., Ltd.(Note 1)	Subsidiaries	Receivables from related parties :	766,057	5.59	-	-	368,941
The Company	Nan Ya Electronic Materials (Kunshan) Co., Ltd.(Note 1)	Subsidiaries	Receivables from related parties :	572,121	5.15	-	-	409,671
Nan Ya PCB (Kunshan) Corporation	Nan Ya PCB Corporation(Note 1)	Subsidiaries	Receivables from related parties :	361,726	12	-	-	361,726
PFG Fiber Glass Corporation	The Company(Note 1)	Parent	Receivables from related parties :	173,451	11	-	-	163,704
Nan Ya Plastics Corporation Texas	Nan Ya Plastics Corporation America(Note 1)	Subsidiaries	Receivables from related parties :	386,807	8	-	-	386,807
PFG Fiber Glass (Kunshan) Co., Ltd.	Nan Ya Electronic Materials (Kunshan) Co., Ltd.(Note 1)	Subsidiaries	Receivables from related parties :	176,026	11	-	-	176,026
PFG Fiber Glass (Kunshan) Co., Ltd.	Nan Ya Electronic Materials (Huizhou) Co., Ltd.(Note 1)	Subsidiaries	Receivables from related parties :	140,128	2	-	-	62,120
Nan Ya Plastics (Ningbo) Co., Ltd.	Nan Ya Electronic Materials (Kunshan) Co., Ltd.(Note 1)	Subsidiaries	Receivables from related parties :	315,686	22	-	-	315,686
Nan Ya Electronic Materials (Kunshan) Co., Ltd.	Nan Ya Electronic Materials (Huizhou) Co., Ltd.(Note 1)	Subsidiaries	Receivables from related parties :	2,286,492	3	-	-	1,228,761
Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd.	Formosa Industries Corporation	Assosiates	Receivables from related parties :	184,358	7	-	-	52,568
Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd.	The Company(Note 1)	Parent	Receivables from related parties :	158,752	0	-	-	118,163
The Company	Nan Chung Petrochemical Corporation(Note 1)	Subsidiaries	Other receivables from related parties :	300,000	Note	-	-	-
Nan Ya Plastics Corporation America	Nan Ya Plastics Corporation U.S.A.(Note 1)	Subsidiaries	Other receivables from related parties :	2,097,403	Note	-	-	-
Nan Ya Plastics (Hong Kong) Co., Ltd.	Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd.(Note 1)	Subsidiaries	Other receivables from related parties :	1,824,140	Note	-	-	-
Nan Ya Trading(Huizhou) Co., Ltd.	Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd.(Note 1)	Subsidiaries	Other receivables from related parties :	1,276,898	Note	-	-	-
Nan Ya Electronic Materials (Kunshan) Co., Ltd.	Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd.(Note 1)	Subsidiaries	Other receivables from related parties :	2,093,201	Note	-	-	-
Nan Ya Electronic Materials (Kunshan) Co., Ltd.	Nan Ya Electronic Materials (Huizhou) Co., Ltd.(Note 1)	Subsidiaries	Other receivables from related parties :	3,876,298	Note	-	-	-
China Nantong Huafeng Co., Ltd.	Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd.(Note 1)	Subsidiaries	Other receivables from related parties :	177,854	Note	-	-	-

Note : The turnover rate of other receivables from related parties cannot be calculated.
Note 1 : The transaction has been written off during the consolidation process.

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

SIGNIFICANT TRANSACTIONS AND BUSINESS RELATIONSHIP BETWEEN THE COMPANY AND ITS SUBSIDIARIES

FOR THE YEAR ENDED DECEMBER 31, 2024

(Expressed in thousands of New Taiwan Dollars)

TABLE 8

No. (Note 1)	Company Name	Counter-party	Relationship (Note 2)	Intercompany Transactions
				Financial Statement Item	Amount	Terms	Percentage of Consolidated Total Gross Sales or Total Assets
0	The Company	Nan Ya PCB Corporation and its subsidiaries	1	Sales	1,660,092	30-150days	0.64%
0	The Company	Nan Chung Petrochemical Corporation	1	Sales	24,801	30days	0.01%
0	The Company	PFG Fiber Glass Corporation	1	Sales	76,384	30days	0.03%
0	The Company	Nan Ya Plastics Corporation U.S.A	1	Sales	1,179,837	O/A 105days	0.45%
0	The Company	Nan Ya Plastics Corporation America	1	Sales	184,248	O/A 105days	0.07%
0	The Company	Nan Ya Plastics (Hong Kong) Co., Ltd. and its subsidiaries	1	Sales	7,910,746	O/A 150-180days	3.05%
0	The Company	Superior World Wide Trading Co., Ltd.	1	Sales	13,615	O/A 150days	0.01%
1	Wen Fung Industrials Co., Ltd. and its subsidiaries	Nan Ya PCB Corporation and its subsidiaries	3	Sales	145,122	30days	0.06%
2	PFG Fiber Glass Corporation	The Company	2	Sales	1,944,133	30days	0.75%
3	Nan Ya Plastics Corporation U.S.A.	The Company	2	Sales	55,040	O/A 105 days	0.02%
4	Nan Ya Plastics Corporation America	Nan Ya Plastics Corporation U.S.A	3	Sales	133,593	payment within one month	0.05%
4	Nan Ya Plastics Corporation America	The Company	2	Sales	38,930	O/A 105 days	0.01%
6	Nan Ya Plastics (Hong Kong) Co., Ltd. and its subsidiaries	The Company	2	Sales	1,324,922	O/A 150-180 days	0.51%
6	Nan Ya Plastics (Hong Kong) Co., Ltd. and its subsidiaries	Nan Ya PCB Corporation and its subsidiaries	3	Sales	1,099,304	60 days	0.42%
6	Nan Ya Plastics (Hong Kong) Co., Ltd. and its subsidiaries	PFG Fiber Glass (Hong Kong) Corporation Limited and its subsidiaries	3	Sales	194,823	60 days	0.08%
7	PFG Fiber Glass (Hong Kong) Corporation Limited and its subsidiaries	Nan Ya Plastics (Hong Kong) Co., Ltd. and its subsidiaries	3	Sales	2,180,094	60 days	0.84%
5	Nan Ya Plastics Corporation Texas	Nan Ya Plastics Corporation America	3	Sales	1,489,012	payment within one month	0.57%
0	The Company	Nan Ya PCB Corporation and its subsidiaries	1	Accounts receivable	145,372	30-150days	0.02%
0	The Company	Nan Ya Plastics Corporation U.S.A	1	Accounts receivable	643,932	O/A 105days	0.10%
0	The Company	Nan Ya Plastics Corporation America	1	Accounts receivable	109,482	O/A 105days	0.02%
0	The Company	Nan Ya Plastics (Hong Kong) Co., Ltd. and its subsidiaries	1	Accounts receivable	1,568,134	O/A 150-180 days	0.25%
3	PFG Fiber Glass Corporation	The Company	2	Accounts receivable	173,451	30days	0.03%
6	Nan Ya Plastics (Hong Kong) Co., Ltd. and its subsidiaries	The Company	2	Accounts receivable	231,626	O/A 150-180 days	0.04%
6	Nan Ya Plastics (Hong Kong) Co., Ltd. and its subsidiaries	Nan Ya PCB Corporation and its subsidiaries	3	Accounts receivable	87,734	60 days	0.01%
7	PFG Fiber Glass (Hong Kong) Corporation Limited and its subsidiaries	Nan Ya Plastics (Hong Kong) Co., Ltd. and its subsidiaries	3	Accounts receivable	316,154	60 days	0.05%
8	Nan Ya Plastics Corporation Texas	Nan Ya Plastics Corporation America	3	Accounts receivable	386,807	payment within one month	0.06%
0	The Company	Nan Ya PCB Corporation and its subsidiaries	1	Rent revenue	299,912	30-150days	0.12%

Note 1: The appointed numbers represent:
1. 0 refers to the Parent Company.
2. Subsidiaries are numbered and organized in a ascending chronological order.

Note 2: Transactions are categorized as follows:
1. Parent company to subsidiary.
2. Subsidiary to parent company.
3. Subsidiary to subsidiary.

Note 3: Disclosure of information on significant transactions and business relationship between the parent company and its subsidiaries regarding sales and accounts receivable, excluding their related purchases and accounts payable.

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTEES (EXCLUDING THOSE IN MAINLAND CHINA)
FOR THE YEAR ENDED DECEMBER 31, 2024
(Expressed in thousands of New Taiwan Dollars)

TABLE 9

Investor Company	Investee Company	Location	Major Operations	Original Investment Amount		Balance as of December 31, 2024			Highest Percentage of Ownership During the Year	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	Nan Ya Plastics Corporation U.S.A. (Note)	U.S.A.	production of plastic products	313,920	313,920	2	100.00%	3,467,544	100.00%	179,407	179,407	Note 3.4
The Company	Nan Ya Plastics Corporation America (Note)	U.S.A.	production of plastic, polyester and chemical	7,853,605	7,853,605	60	100.00%	46,714,856	100.00%	(271,970)	(271,970)	Note 3.4
The Company	Nan Ya Plastics (Hong Kong) Co., Ltd. (Note 1)	Hong Kong	plastics, electronic products trading, and investment	41,450,832	41,450,832	1,015,653	100.00%	97,415,938	100.00%	1,492,023	1,492,023	Note 3.4
The Company	Superior World Wide Trading Co., Ltd. (Note 1)	Hong Kong	plastics trading and investment	33,677	33,677	14	100.00%	1,100,299	100.00%	65,055	65,055	Note 3.4
The Company	Formosa Synthetic Rubber (Hong Kong) Corporation Limited (Note)	Hong Kong	production of synthetic rubber products	4,213,864	4,213,864	138,333	33.33%	1,575,995	33.33%	(490,056)	(163,352)	Note 3
The Company	PFG Fiber Glass (Hong Kong) Corporation Limited (Note 1)	Hong Kong	investment	4,495,987	4,495,987	76	100.00%	8,081,235	100.00%	(400,804)	(420,861)	Note 3.4
The Company	Formosa Industries Corporation (Note 2)	Vietnam	chemical fiber, dyeing and finishing and electric power	8,435,875	8,435,875	-	42.50%	5,075,412	42.50%	(747,632)	(317,744)	Note 3
The Company	Nan Ya PCB Corporation	Taiwan	production of printed circuit board	4,480,417	4,480,417	432,745	66.97%	30,449,917	66.97%	203,727	141,157	Note 3.4
The Company	Formosa Plastics Group Investment Corp.	Taiwan	investment	26,959	26,959	10	100.00%	1,086	100.00%	(52)	(52)	Note 3.4
The Company	Nanya Technology Corporation	Taiwan	semiconductor production and marketing	52,438,472	52,438,472	907,304	29.28%	48,328,952	29.28%	(5,083,350)	(1,488,474)	Note 3
The Company	Formosa Environmental Technology Corporation	Taiwan	environmental protection	672,370	672,370	46,257	26.99%	266,638	26.99%	19,705	5,318	Note 3
The Company	Formosa Petrochemical Corporation	Taiwan	production of chemical products	24,647,480	24,647,480	2,201,306	23.11%	68,587,809	23.11%	5,970,918	1,379,365	Note 3
The Company	PFG Fiber Glass Corporation	Taiwan	production of glass fiber	2,648,131	2,648,131	100,000	100.00%	3,003,290	100.00%	(108,166)	(281,318)	Note 3.4
The Company	Nan Chung Petrochemical Corporation	Taiwan	production of chemical products	1,000,002	1,000,002	100,000	50.00%	827,075	50.00%	(225,212)	(112,606)	Note 3.4
The Company	Wen Fung Industrial Co., Ltd.	Taiwan	production of electronic components	214,236	214,236	17,523	100.00%	253,518	100.00%	(447)	(446)	Note 3.4
The Company	Formosa Automobile Sales Corporation	Taiwan	production of automobile	945,028	945,028	27,046	45.00%	393,433	45.00%	161,594	72,719	Note 3
The Company	Ya Tai Development Corporation	Taiwan	development industry	53,941	53,941	1,304	44.96%	18,725	44.96%	(1,972)	(887)	Note 3
The Company	Formosa Heavy Industries Corporation	Taiwan	machinery industry	2,497,721	2,497,721	661,334	32.91%	5,848,740	32.91%	(1,650,957)	(543,343)	Note 3
The Company	Formosa Fairway Corporation	Taiwan	transportation business	-	33,340	-	-	-	-	(9,613)	(3,205)	Note 3
The Company	Formosa Plastics Transport Corporation	Taiwan	transportation business	67,254	67,254	6,566	33.33%	1,401,037	33.33%	322,179	107,394	Note 3

Investor Company	Investee Company	Location	Major Operations	Original Investment Amount		Balance as of December 31, 2024			Highest Percentage of Ownership During the Year	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	Hwa Ya Technology Park Management Consulting Corporation	Taiwan	service business	359	359	34	34.00%	5,213	34.00%	489	166	Note 3
The Company	Yi Jih Development Corporation	Taiwan	construction business	13,335	13,335	1,221	29.22%	19,980	29.22%	(56)	(16)	Note 3
The Company	Mai Liao Power Corporation	Taiwan	electricity generation business	5,985,465	5,985,465	764,193	24.94%	16,147,947	24.94%	12,795,766	3,191,501	Note 3
The Company	Nan YA Photonics Inc.	Taiwan	LED equipment manufacturer	831,466	761,820	13,372	29.01%	315,935	29.01%	78,702	20,673	Note 3
The Company	Formosa Resources Corporation	Taiwan	mining industry	9,099,071	9,099,071	909,907	25.00%	6,403,505	25.00%	(8,052,194)	(2,013,049)	Note 3
The Company	Formosa Group (Cayman) Limited (Note)	Cayman Islands	investment	377	377	13	25.00%	968,839	25.00%	305,391	76,348	Note 3
The Company	Formosa Plastics Construction Corporation	Taiwan	construction business	1,100,000	1,100,000	110,000	33.33%	1,016,074	33.33%	(26,397)	(8,799)	Note 3
The Company	FG Inc. (Note)	U.S.A.	investment	1,137,655	1,137,655	2	10.00%	1,137,369	10.00%	(383,754)	(38,375)	Note 3
The Company	Formosa Smart Energy Tech Corporation	Taiwan	green batteries	4,250,000	1,750,000	425,000	25.00%	4,174,692	25.00%	(469,121)	(117,280)	Note 3
Nan Ya Plastics Corporation America (Note)	Formosa Utility Venture, Ltd.(Note)	U.S.A.	electricity generation and trading	262,248	262,248	-	12.10%	2,856,448	12.10%	637,172	77,098	Note 3
Nan Ya Plastics Corporation America (Note)	Nan Ya Plastics Corporation Texas (Note)	U.S.A.	production of chemical products	32,125,380	16,062,690	3	100.00%	16,109,171	100.00%	(2,817,050)	(2,817,050)	Note 3.4
Nan Ya Plastics Corporation Texas (Note)	Formosa Olefins, L.L.C. (Note)	U.S.A.	chemical business	2,254,513	2,254,513	-	21.00%	5,063,371	21.00%	5,410,526	1,136,210	Note 3
Nan Ya PCB Corporation	Nan Ya PCB (Hong Kong) Corporation	Hong Kong	production of electronic products and investment	8,595,674	8,595,674	2,152,020	100.00%	22,782,301	100.00%	(294,659)	(294,659)	Note 3.4
Nan Ya PCB Corporation	Nan Ya PCB (U.S.A.) Corporation	U.S.A.	retargeting	3,479	3,479	1,000	100.00%	22,349	100.00%	1,373	1,373	Note 3.4
Nan Ya PCB Corporation	Formosa Advanced Technologies Co.,LTD.	Taiwan	IC packaging, testing and modules	472,968	472,968	13,267	3.00%	459,726	3.00%	900,345	26,889	Note 3
Nan Ya PCB (Hong Kong) Corporation	Nan Ya PCB (Kunshan) Corporation	China	production of printed circuit board	8,592,495	8,592,495	-	100.00%	22,766,352	100.00%	(295,303)	(295,303)	Note 3.4
Wen Fung Industrial Co., Ltd.	Wellink Technology Corporation	Taiwan	production of electronic components	212,017	212,017	12,739	100.00%	129,759	100.00%	(1,737)	(1,737)	Note 3.4
Superior World Wide Trading Co., Ltd. (Note 1)	P.T.Indonesia Nanya Indah Plastics Co.	Indonesia	production of plastic products	132,662	132,662	5	50.00%	266,181	50.00%	53,654	26,827	Note 3

Note 1 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.

Note 4 : The transaction has been written off during the consolidation process.

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENT IN MAINLAND CHINA
FOR THE YEAR ENDED DECEMBER 31, 2024
(Expressed in thousands of New Taiwan Dollars)

TABLE 10
(a) Information regarding investments in Mainland China :

Name of the PRC Investor 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		Investment Transferred from Taiwan as of December 31, 2024	Current Income of Investors	Direct and Indirect Shareholding Percentage by the Company	Highest Percentage of Ownership During the Year	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.(Note1)	production of polyester products	1,998,681	Indirect investment	1,998,681	-	-	1,998,681	(121,712)	100.00%	100.00%	(121,712)	1,741,246	1,208,243
Nan Ya Plastics (Xiamen) Co., Ltd.(Note1)	production of plastic products	775,457	Indirect investment	738,752	-	-	738,752	82,385	85.00%	85.00%	70,027	1,040,195	72,820
Nan Ya Plastics (Huizhou) Co., Ltd.(Note1)	production of polyester products	2,527,462	Indirect investment	2,418,397	-	-	2,418,397	141,699	100.00%	100.00%	141,699	3,809,951	191,257
Nan Ya Electronic Materials (Huizhou) Co., Ltd.(Note1)	production of electronic materials, glass fabrics, copper clad	12,208,913	Indirect investment	5,489,509	-	-	5,489,509	377,173	100.00%	100.00%	377,173	16,694,060	-
Nan Ya Trading (Huizhou) Co., Ltd.(Note1)	trading	32,267	Indirect investment	32,267	-	-	32,267	343	100.00%	100.00%	343	63,304	-
Nan Ya Plastics (Nantong) Co., Ltd.(Note1)	sale of plastic products, steam and electricity	4,540,736	Indirect investment	3,008,918	-	-	3,008,918	141,853	100.00%	100.00%	141,853	8,697,733	2,342,542
China Nantong Huailing Co., Ltd.(Note1)	trading	93,004	Indirect investment	99,636	-	-	99,636	5,936	100.00%	100.00%	5,936	378,030	-
Nantong Huafu Plastics Co., Ltd.(Note1)	trading	79,111	Indirect investment	71,503	-	-	71,503	2,352	100.00%	100.00%	2,352	109,520	-
Nan Ya Electric (Nantong) Co., Ltd.(Note1)	production of switch gear and control panel	339,275	Indirect investment	339,275	-	-	339,275	47,941	100.00%	100.00%	47,941	1,224,497	303,107
Nan Ya Kyowa Plastics (Nantong) Co., Ltd.	interior decorating business	200,988	Indirect investment	100,494	-	-	100,494	(28,113)	50.00%	50.00%	(14,056)	217,782	-
Nan Ya Electronic Materials (Kanshan) Co., Ltd.(Note1)	production of copper clad laminate, polyester products, steam and electricity, copper clad, epoxy	15,159,216	Indirect investment	15,159,216	-	-	15,159,216	1,726,454	100.00%	100.00%	1,726,454	50,695,866	24,444,784
Nan Ya Draw Textured Yarn (Kanshan) Co., Ltd.(Note1)	production of polyester products	7,035,085	Indirect investment	7,035,085	-	-	7,035,085	(185,209)	100.00%	100.00%	(185,209)	(1,957,911)	-
Nan Ya Plastics (Zhengzhou) Co., Ltd.	production of plastic products	261,737	Indirect investment	130,869	-	-	130,869	4,602	50.00%	50.00%	2,301	73,088	-
Nan Ya Plastics (Ningbo) Co., Ltd.(Note1)	production of BPA and plasticizer	4,472,993	Indirect investment	4,273,467	-	-	4,273,467	(931,741)	100.00%	100.00%	(931,741)	11,161,659	1,789,880
PFG Fiber Glass (Kanshan) Co., Ltd.(Note1)	production of glass fiber	4,668,263	Indirect investment	4,487,409	-	-	4,487,409	(403,147)	100.00%	100.00%	(403,147)	8,259,099	282,300

Name of the PBC Investor 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		Investment Transferred from Taiwan as of December 31, 2024	Current Income of Investors	Direct and Indirect Shareholding Percentage by the Company	Highest Percentage of Ownership During the Year	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.	production of plastic products	345,645	Indirect investment	34,591	-	-	34,591	-	15.00%	15.00%	-	389,262	23,020
Hua Ya (Wu Hu) Plastics Corp.	production of plastic products	624,948	Indirect investment	34,591	-	-	34,591	-	15.00%	15.00%	-	321,133	12,687
Formosa Synthetic Rubber (Ningbo) Limited Corporation	synthetic rubber	12,777,590	Indirect investment	4,162,018	-	-	4,162,018	(490,056)	33.33%	33.33%	(163,352)	1,575,995	-

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

Note 1: The transaction has been written-off during the consolidation process.

(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 MOKA 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".

AI assistant

NPC — Audit Report / Information 2024

51763_rns_2024-12-10_2cbfda14-eb08-4bca-87b7-76ee08ecaaa6.pdf

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Table of contents

Representation Letter

Independent Auditors' Report

Opinion

Basis for Opinion

Key Audit Matters

How the matter was addressed in our audit

2. Valuation of inventories

How the matter was addressed in our audit

Other Matter

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

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Notes to Readers

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

(1) Company history

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

(3) New standards, amendments and interpretations adopted

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(4) Summary of material accounting policies

(a) Statement of compliance

(b) Basis of preparation

Basis of measurement

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Functional and presentation currency

(c) Basis of consolidation

(i) Principle of preparing consolidated financial statements

(ii) List of subsidiaries in the consolidated financial statements:

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

NPC Audit Report / Information 2024