Stock Code:1303

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Review Report For the Nine Months Ended September 30, 2020 and 2019

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

The independent auditors’ review 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’ review report and consolidated financial statements, the Chinese version shall prevail.

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

1
2
3
4
5
6
7
8
8
8～9
10～12
12～13
14～46
46～54
54
55
56
56
56
57、60～72
57、73～75
57、76～77
57～58
58～59

Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Review Report 4. Consolidated Balance Sheets 5. Consolidated Statements of Comprehensive Income 6. Consolidated Statements of Changes in Equity 7. Consolidated Statements of Cash Flows 8. Notes to the Consolidated Financial Statements (1) Company history (2) Approval date and procedures of the consolidated financial statements (3) New standards, amendments and interpretations adopted (4) Summary of significant accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Significant Commitments and contingencies (10) Losses Due to Major Disasters (11) Subsequent Events (12) Other (13) Other disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in mainland China (d) Major shareholders (14) Segment information	Page
	1 2 3 4 5 6 7 8 8 8`～`9 10`～`12 12`～`13 14`～`46 46`～`54 54 55 56 56 56 57`、`60`～`72 57`、`73`～`75 57`、`76`～`77 57`～`58 58`～`59

3

==> picture [169 x 19] intentionally omitted <==

KPMG

台北市110615信義路5段7號68樓(台北101大樓) Telephone 電話 + 886 2 8101 6666 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, Fax 傳真 + 886 2 8101 6667 Xinyi Road, Taipei City 110615, Taiwan (R.O.C.) Internet 網址 home.kpmg/tw

Independent Auditors’ Review Report

To the Board of Directors of NAN YA PLASTICS CORPORATION:

Introduction

We have reviewed the accompanying consolidated balance sheets of NAN YA PLASTICS CORPORATION and its subsidiaries (the "Consolidated Company") as of September 30, 2020 and 2019, and the related consolidated statements of comprehensive income for the three months and nine months ended September 30, 2020 and 2019, as well as the changes in equity and cash flows for the nine months ended September 30, 2020 and 2019, and notes to the consolidated financial statements, including a summary of significant accounting policies. 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 International Accounting Standard 34, “ Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews. 台北市 KPMG 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, Xinyi Road, Taipei City 110615, Taiwan (R.O.C.)110615信義路5段7號68樓(台北101大樓) Internet Fax Telephone 網址傳真電話 home.kpmg/tw+ 886 2 8101 6667+ 886 2 8101 6666 Scope of Review 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.

Except as explained in the Basis for Qualified Conclusion paragraph, we conducted our reviews in accordance with Statement of Auditing Standards 65, “ Review of Financial Information Performed by the Independent Auditor of the Entity”. A review of the consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the generally accepted auditing standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As stated in Note 4 (b), the consolidated financial statements included the financial statements of certain nonsignificant subsidiaries, which were not reviewed by independent auditors. These financial statements reflect the total assets amounting to $85,077,172 thousand and $83,646,667 thousand, constituting 15.48% and 14.86% of the consolidated total assets; and the total liabilities amounting to $27,346,342 thousand and $17,806,042 thousand, constituting 12.32% and 8.66% of the consolidated total liabilities as of September 30, 2020 and 2019, respectively; as well as the total comprehensive income (loss) amounting to $(706,679) thousand, $(1,750,727) thousand, $(4,549,889) thousand and $(1,038,166) thousand, constituting (10.00)%, 27.28%, 44.12% and (9.80)% of the consolidated total comprehensive income (loss) for the three months and nine months ended September 30, 2020 and 2019, respectively.

Furthermore, as stated in Note 6 (g), the other equity accounted investments of the Consolidated Company in its investee companies of $38,744,703 thousand and $41,152,781 thousand as of September 30, 2020 and 2019, respectively, and its equity in net earnings on these investee companies of $986,087 thousand, $414,989 thousand, $1,551,841 thousand and $796,130 thousand for the three months and nine months ended September 30, 2020 and 2019, respectively, were recognized solely on the financial statements prepared by these investee companies, but not reviewed by independent auditors.

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

3-1

Qualified Conclusion

Except for the adjustments, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries and equity accounted investee companies described in the Basis for Qualified Conclusion paragraph above been reviewed by independent auditors, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Consolidated Company as of September 30, 2020 and 2019, and of its consolidated financial performance for the three months and nine months ended September 30, 2020 and 2019, as well as its consolidated cash flows for the nine months ended September 30, 2020 and 2019 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “ Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Other Matter

We did not review the financial statements of certain subsidiaries of the Consolidated Company. Those financial statements were reviewed by other auditors, whose review reports have been furnished to us, and our conclusion, insofar as it relates to the amounts included for those subsidiaries, is based solely on the review reports of other auditors. The financial statements of those subsidiaries reflect the total assets amounting to $105,398,939 thousand and $100,324,086 thousand, constituting 19.18% and 17.82% of the consolidated total assets as of September 30, 2020 and 2019, respectively; and the total operating revenues amounting to $19,639,445 thousand, $19,389,101 thousand, $50,425,027 thousand and $54,872,784 thousand, constituting 28.97%, 26.97%, 26.00% and 25.56% of the consolidated total operating revenues for the three months and nine months ended September 30, 2020 and 2019, respectively.

We did not review the financial statements of certain investee companies, which represented the investment in other entities accounted for using the equity method of the Consolidated Company. Those financial statements were reviewed by another auditor, whose review report has been furnished to us, and our conclusion, insofar as it relates to the amounts included for those investee companies, is based solely on the review report of another auditor. The aforementioned investments accounted for using the equity method amounted to $64,527,731 thousand and $75,051,365 thousand, constituting 11.74% and 13.33% of the consolidated total assets as of September 30, 2020 and 2019, respectively; and the related shares of profit of associates and joint ventures accounted for using the equity method amounted to $3,662,601 thousand, $2,875,256 thousand, $(646,983) thousand and $6,860,755 thousand, constituting 31.08%, 32.34%, (3.86)% and 31.67% of the consolidated total profit before tax for the three months and nine months ended September 30, 2020 and 2019, respectively.

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

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

KPMG

Taipei, Taiwan (Republic of China) November 9, 2020

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 review such consolidated financial statements are those generally accepted and applied in the Republic of China.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with the generally accepted auditing standards as of September 30, 2020 and 2019

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

September 30, 2020, December 31 and September 30, 2019 (Expressed in Thousands of New Taiwan Dollars)

September 30, 2020 Assets Amount % Current assets: 1100 Cash and cash equivalents (notes 6(a) and (w)) $ 52,193,383 9 1110 Current financial assets at fair value through profit or loss (notes 6(b), (w)) 3,963,809 1 1120 Current financial assets at fair value through other comprehensive income (notes 6(c), (w), and 8) 32,683,918 6 1150 Notes receivable, net (notes 6(d) and (w)) 5,530,351 1 1170 Accounts receivable, net (notes 6(d) and (w)) 38,562,833 7 1180 Accounts receivable due from related parties (notes 6(d), (w) and 7) 1,188,555 - 1200 Other receivables (note 6(e) and (w)) 1,510,172 - 1210 Other receivables due from related parties (notes 6(e), (w), and 7) 4,921,780 1 130X Inventories (note 6(f)) 43,256,402 8 1470 Other current assets 4,549,215 1 Total current assets 188,360,418 34 Non-current assets: 1510 Non-current financial assets at fair value through profit or loss (notes 6(b) and (w)) 797,880 - 1517 Non-current financial assets at fair value through other comprehensive income (notes 6(c) and (w)) 16,571,647 3 1550 Investments accounted for using equity method (notes 6(g) and 7) 153,604,898 28 1600 Property, plant and equipment (notes 6(h),7 and 8) 169,252,459 31 1755 Right-of-use assets (notes 6(i) and 7) 1,022,875 - 1782 Intangible assets (note 6(j)) 2,148,736 - 1812 Technology development expense 26,721 - 1840 Deferred tax assets 5,062,890 1 1915 Prepayments for purchase of equipment 3,074,942 1 1937 Overdue receivables (note 6(d)) - - 1990 Other non-current assets 9,499,594 2 Total non-current assets 361,062,642 66 Total assets $ 549,423,060 100	December 31, 2019 Amount % 43,608,119 8 4,044,356 1 41,715,821 8 5,557,174 1 36,640,358 7 1,866,001 - 2,237,168 - 5,925,227 1 41,567,752 7 4,314,370 1 187,476,346 34 824,726 - 22,662,110 4 165,109,381 30 156,095,364 28 1,198,549 - 2,293,595 - 30,257 - 5,439,156 1 3,468,440 1 - - 10,080,755 2 367,202,333 66 554,678,679 100	September 30, 2019
		Amount % 47,813,577 9 4,143,095 1 40,041,002 7 5,601,138 1 38,316,325 7 1,549,997 - 1,655,545 - 7,951,132 1 44,120,284 8 4,290,066 1 195,482,161 35 1,058,413 - 24,692,264 4 165,798,430 30 154,054,622 27 1,271,831 - 2,341,881 - 32,039 - 5,516,709 1 3,812,078 1 - - 9,020,457 2 367,598,724 65 563,080,885 100

December 31, 2019	December 31, 2019	September 30, 2019
Amount	%	Amount % 31,498,633 6 14,594,612 3 9,433,263 2 6,625,722 1 19,890,240 3 204,623 - 6,396,774 1 3,854,724 1 1,639,178 - 94,137,769 17 54,236,261 10 15,721,983 3 13,124,345 2 337,703 - 5,096,600 1 22,164,201 4 653,916 - 80,118 - 111,415,127 20 205,552,896 37 79,308,216 14 26,608,158 5 200,060,637 35 40,603,465 7 10,947,513 2 357,527,989 63 563,080,885 100
24,012,100 15,392,795 9,102,231 6,986,969 18,539,776 197,527 4,647,875 3,333,333 1,303,544	4 3 2 1 3 - 1 1 - 15 11 3 2 - 1 4 - - 21 36 14 5 37 6 2 64 100
83,516,150
59,330,786 14,751,117 13,122,029 291,222 5,096,417 22,183,650 712,939 103,669
115,591,829
199,107,979
79,308,216 26,617,834 204,105,146 34,540,688 10,998,816
355,570,700
554,678,679

See accompanying notes to Consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the three months and nine months ended September 30, 2020 and 2019

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

4000 Operating revenue (notes 6(t) and 7) 5000 Operating costs (notes 6(f), (p), (u), 7 and 12) 5910 Less: Unrealized (realized) profit from affiliated companies (note 7) Gross profit from operation Operating expenses (notes 6(p), (u), 7 and 12): 6100 Selling expenses 6200 Administrative expenses 6450 Expected credit gain (notes 6(d)) Total operating expenses Net Operating income Non-operating income and expenses (notes 6(g), (o), (v) and 7): 7010 Other income 7020 Other gains and losses 7050 Finance costs 7060 Share of profit of associates and joint ventures accounted for using equity method 7100 Interest income Total non-operating income and expenses Profit before tax 7950 Less: Income tax expenses (note 6(q)) Profit 8300 Other comprehensive income (loss) (note 6(g) and (r)): 8310 Components of other comprehensive income that will not be reclassified to profit or loss 8316 Unrealized (losses) gains from investments in equity instruments measured at fair value through other comprehensive income 8320 Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss 8349 Less: income tax related to components of other comprehensive income that will not be reclassified to profit or loss Total items that may not be reclassified subsequently to profit and loss 8360 Components of other comprehensive income (loss) that will be reclassified to profit or loss 8361 Exchange differences on translation 8370 Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss 8399 Less: income tax related to components of other comprehensive income that will be reclassified to profit or loss Total items that may be reclassified subsequently to profit and loss 8300 Other comprehensive income 8500 Total comprehensive income Profit, attributable to: 8610 Owners of parent 8620 Non-controlling interests Comprehensive income attributable to: 8710 Owners of parent 8720 Non-controlling interests Basic earnings per share (note 6(s)): 9710 Income from continuing operations Income from non-controlling equity 9750 Income attributable to shareholders of the parent	For the three months ended September 30 For the nine months ended September 30 2020 2019 2020 2019 Amount % Amount % Amount % Amount % $ 67,790,205 100 71,885,358 100 $ 193,972,294 100 214,657,229 100 58,628,071 86 65,258,868 91 169,630,688 87 194,692,802 91 303 - 7,778 - 1,790 - (12,412) - 9,161,831 14 6,618,712 9 24,339,816 13 19,976,839 9 2,372,716 4 2,482,393 3 6,857,682 4 7,201,379 3 2,311,518 3 2,165,250 3 6,832,842 4 6,277,550 3 - - (2,230) - - - (56,165) - 4,684,234 7 4,645,413 6 13,690,524 8 13,422,764 6 4,477,597 7 1,973,299 3 10,649,292 5 6,554,075 3 2,733,168 4 2,881,825 4 4,159,267 2 4,691,756 2 (602,714) (1) 195,996 - (994,767) (1) 669,254 - (355,775) (1) (523,421) (1) (1,019,813) - (1,252,487) (1) 5,322,568 8 3,968,556 6 3,371,012 2 10,124,994 5 209,449 - 394,992 - 612,866 - 877,381 1 7,306,696 10 6,917,948 9 6,128,565 3 15,110,898 7 11,784,293 17 8,891,247 12 16,777,857 8 21,664,973 10 1,093,944 1 753,522 1 2,447,221 1 2,724,435 1 10,690,349 16 8,137,725 11 14,330,636 7 18,940,538 9 (3,405,499) (5) (11,064,008) (15) (14,376,081) (7) (7,990,696) (4) (443,707) (1) (593,091) (1) (6,041,520) (3) 744,180 1 - - - - - - - - (3,849,206) (6) (11,657,099) (16) (20,417,601) (10) (7,246,516) (3) 222,499 - (2,901,761) (4) (4,264,990) (2) (1,120,289) (1) 2,724 - 2,593 - 38,332 - 15,366 - - - - - - - - - 225,223 - (2,899,168) (4) (4,226,658) (2) (1,104,923) (1) (3,623,983) (6) (14,556,267) (20) (24,644,259) (12) (8,351,439) (4) $ 7,066,366 10 (6,418,542) (9) (10,313,623) (5) 10,589,099 5 $ 10,359,495 16 8,017,606 11 13,529,785 7 18,926,725 9 330,854 - 120,119 - 800,851 - 13,813 - $ 10,690,349 16 8,137,725 11 14,330,636 7 18,940,538 9 $ 6,677,359 10 (6,461,545) (9) (11,082,328) (5) 10,626,348 5 389,007 - 43,003 - 768,705 - (37,249) - $ 7,066,366 10 (6,418,542) (9) (10,313,623) (5) 10,589,099 5 Before Tax After Tax Before Tax After Tax Before Tax After Tax Before Tax After Tax $ 1.49 1.35 1.12 1.03 2.12 1.81 2.73 2.39 (0.15) (0.04) (0.08) (0.02) (0.34) (0.10) (0.18) - $ 1.34 1.31 1.04 1.01 1.78 1.71 2.55 2.39	For the three months ended September 30 For the nine months ended September 30 2020 2019 2020 2019 Amount % Amount % Amount % Amount % $ 67,790,205 100 71,885,358 100 $ 193,972,294 100 214,657,229 100 58,628,071 86 65,258,868 91 169,630,688 87 194,692,802 91 303 - 7,778 - 1,790 - (12,412) - 9,161,831 14 6,618,712 9 24,339,816 13 19,976,839 9 2,372,716 4 2,482,393 3 6,857,682 4 7,201,379 3 2,311,518 3 2,165,250 3 6,832,842 4 6,277,550 3 - - (2,230) - - - (56,165) - 4,684,234 7 4,645,413 6 13,690,524 8 13,422,764 6 4,477,597 7 1,973,299 3 10,649,292 5 6,554,075 3 2,733,168 4 2,881,825 4 4,159,267 2 4,691,756 2 (602,714) (1) 195,996 - (994,767) (1) 669,254 - (355,775) (1) (523,421) (1) (1,019,813) - (1,252,487) (1) 5,322,568 8 3,968,556 6 3,371,012 2 10,124,994 5 209,449 - 394,992 - 612,866 - 877,381 1 7,306,696 10 6,917,948 9 6,128,565 3 15,110,898 7 11,784,293 17 8,891,247 12 16,777,857 8 21,664,973 10 1,093,944 1 753,522 1 2,447,221 1 2,724,435 1 10,690,349 16 8,137,725 11 14,330,636 7 18,940,538 9 (3,405,499) (5) (11,064,008) (15) (14,376,081) (7) (7,990,696) (4) (443,707) (1) (593,091) (1) (6,041,520) (3) 744,180 1 - - - - - - - - (3,849,206) (6) (11,657,099) (16) (20,417,601) (10) (7,246,516) (3) 222,499 - (2,901,761) (4) (4,264,990) (2) (1,120,289) (1) 2,724 - 2,593 - 38,332 - 15,366 - - - - - - - - - 225,223 - (2,899,168) (4) (4,226,658) (2) (1,104,923) (1) (3,623,983) (6) (14,556,267) (20) (24,644,259) (12) (8,351,439) (4) $ 7,066,366 10 (6,418,542) (9) (10,313,623) (5) 10,589,099 5 $ 10,359,495 16 8,017,606 11 13,529,785 7 18,926,725 9 330,854 - 120,119 - 800,851 - 13,813 - $ 10,690,349 16 8,137,725 11 14,330,636 7 18,940,538 9 $ 6,677,359 10 (6,461,545) (9) (11,082,328) (5) 10,626,348 5 389,007 - 43,003 - 768,705 - (37,249) - $ 7,066,366 10 (6,418,542) (9) (10,313,623) (5) 10,589,099 5 Before Tax After Tax Before Tax After Tax Before Tax After Tax Before Tax After Tax $ 1.49 1.35 1.12 1.03 2.12 1.81 2.73 2.39 (0.15) (0.04) (0.08) (0.02) (0.34) (0.10) (0.18) - $ 1.34 1.31 1.04 1.01 1.78 1.71 2.55 2.39
	2020 Amount % $ 67,790,205 100 58,628,071 86 303 - 9,161,831 14 2,372,716 4 2,311,518 3 - - 4,684,234 7 4,477,597 7 2,733,168 4 (602,714) (1) (355,775) (1) 5,322,568 8 209,449 - 7,306,696 10 11,784,293 17 1,093,944 1 10,690,349 16 (3,405,499) (5) (443,707) (1) - - (3,849,206) (6) 222,499 - 2,724 - - - 225,223 - (3,623,983) (6) $ 7,066,366 10 $ 10,359,495 16 330,854 - $ 10,690,349 16 $ 6,677,359 10 389,007 - $ 7,066,366 10 Before Tax After Tax $ 1.49 1.35 (0.15) (0.04) $ 1.34 1.31
		Before Tax 1.12 (0.08) 1.04

See accompanying notes to Consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the nine months ended September 30, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

Equity attributable to owners of parent

Ordinary shares	Capital surplus	Retained earnings	Retained earnings	Retained earnings	Retained earnings	Items of other equity interest	Items of other equity interest	Items of other equity interest	Items of other equity interest	Items of other equity interest	Items of other equity interest	Total equity attributable to owners of parent	Non- controlling interests	Total equity
						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
		Legal reserve	Special reserve	Unappropriated retained earnings
$ 79,308,216 - - - - - - - - - $ 79,308,216 $ 79,308,216 - - - - - - - - - $ 79,308,216	26,672,119	63,325,953	93,737,091		63,724,976		(5,705,296) - - - - - - (1,069,227) (1,069,227) - (6,774,523) (11,571,431) - - - - - - (4,239,259) (4,239,259) - (15,810,690)		54,624,319		(15,181) - - - - - - 15,366 15,366 - 185 631 - - - - - - 38,332 38,332 - 38,963	375,672,197	11,232,795 - - - - - 13,813 (51,062) (37,249) (248,033) 10,947,513 10,998,816 - - - - - 800,851 (32,146) 768,705 (188,122) 11,579,399	386,904,992 - - (39,654,108) - (63,961) 18,940,538 (8,351,439) 10,589,099 (248,033) 357,527,989 355,570,700 - - (17,447,807) - (84,949) 14,330,636 (24,683,219) (10,352,583) (188,122) 327,497,239
		5,274,602 - - - - - -
		-
		-
		68,600,555
		68,600,555
		2,307,613 - - - - - -
		-
		-
		70,908,168

See accompanying notes to Consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the nine months ended September 30, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from (used in) operating activities: Profit before tax Adjustments: Adjustments to reconcile profit (loss): Depreciation expense Amortization expense Net loss (profit) on financial assets at fair value through profit or loss Interest expense Interest income Dividend income Share of profit of associates and joint ventures accounted for using equity method Loss on disposal of property, plant and equipment Property, plant and equipment transferred to expenses Gain on disposal of other assets Realized loss (profit) from affiliated companies Unrealized foreign exchange loss Other revenue, overdue dividends and compensation of board and directors Loss (gain) on reversal of impairment loss of property, plant and equipment Total adjustments to reconcile profit (loss) Changes in operating assets and liabilities: Decrease in notes receivable (Increase) decrease in accounts receivable (including related parties) Decrease in other receivable (Increase) decrease in inventories Increase in other current assets Total changes in operating assets Increase (decrease) in notes and accounts payable (Decrease) increase in other payable Increase in other current liabilities Decrease in net defined benefit liability Total changes in operating liabilities Total changes in operating assets and liabilities Total adjustments Cash inflow generated from operations Interest received Dividends received Interest paid Income taxes paid Net cash flows from operating activities Cash flows from (used in) investing activities: Proceeds from capital reduction of financial assets at fair value through other comprehensive income Acquisition of investments accounted for using equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease (increase) in refundable deposits Decrease (increase) in other receivables due from related parties Increase in other non-current assets Net cash flows used in investing activities Cash flows from (used in) financing activities: Increase in short-term loans Increase in short-term notes and bills payable Proceeds from issuing bonds Repayments of bonds Proceeds from long-term debt Repayments of long-term debt Decrease in other borrowings (long-term notes payables) Decrease in guarantee deposits received Increase in other payables to related parties Payment of lease liabilities Increase (decrease) in other non-current liabilities Cash dividends paid Change in non-controlling interests Net cash flows from financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	For the nine months ended September 30 2020 2019 $ 16,777,857 21,664,973 11,199,582 11,580,171 1,217,111 945,453 80,547 (125,846) 1,019,813 1,252,487 (612,866) (877,381) (2,234,710) (3,237,584) (3,371,012) (10,124,994) 38,200 24,302 59,859 23,086 (261,371) - 1,790 (12,412) 284,388 112,278 1,885 3,364 36,205 (59) 7,459,421 (437,135) 26,823 922,950 (1,362,507) 1,797,589 754,246 134,650 (2,213,288) 5,005,921 (234,845) (227,962) (3,029,571) 7,633,148 370,959 (2,155,111) (611,128) 1,196,428 251,595 529,737 (250,936) (122,144) (239,510) (551,090) (3,269,081) 7,082,058 4,190,340 6,644,923 20,968,197 28,309,896 594,040 956,223 10,017,689 20,261,092 (1,604,710) (1,007,503) (1,594,414) (4,193,899) 28,380,802 44,325,809 12,500 - (347,161) (1,801,570) (22,776,953) (22,495,812) 32,615 89,659 6,370 (5,016) 1,003,447 (1,833,262) (2,587,374) (5,271,813) (24,656,556) (31,317,814) 23,621,265 10,251,286 3,000,000 5,700,000 9,984,330 6,289,880 (4,650,000) (4,200,000) 6,249,156 14,388,650 (14,206,000) (7,075,680) - (2,000,000) (82,106) (25,548) 50,829 98,600 (163,264) (157,717) 155 (29,499) (17,455,839) (39,639,407) (188,105) (248,033) 6,160,421 (16,647,468) (1,299,403) (912,832) 8,585,264 (4,552,305) 43,608,119 52,365,882 $ 52,193,383 47,813,577
	2020 $ 16,777,857 11,199,582 1,217,111 80,547 1,019,813 (612,866) (2,234,710) (3,371,012) 38,200 59,859 (261,371) 1,790 284,388 1,885 36,205 7,459,421 26,823 (1,362,507) 754,246 (2,213,288) (234,845) (3,029,571) 370,959 (611,128) 251,595 (250,936) (239,510) (3,269,081) 4,190,340 20,968,197 594,040 10,017,689 (1,604,710) (1,594,414) 28,380,802 12,500 (347,161) (22,776,953) 32,615 6,370 1,003,447 (2,587,374) (24,656,556) 23,621,265 3,000,000 9,984,330 (4,650,000) 6,249,156 (14,206,000) - (82,106) 50,829 (163,264) 155 (17,455,839) (188,105) 6,160,421 (1,299,403) 8,585,264 43,608,119 $ 52,193,383

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

For the nine months ended
September 30
2020
2019
$ 16,777,857
21,664,973
11,199,582
11,580,171
1,217,111
945,453
80,547
(125,846)
1,019,813
1,252,487
(612,866)
(877,381)
(2,234,710)
(3,237,584)
(3,371,012)
(10,124,994)
38,200
24,302
59,859
23,086
(261,371)
-
1,790
(12,412)
284,388
112,278
1,885
3,364
36,205
(59)
7,459,421
(437,135)
26,823
922,950
(1,362,507)
1,797,589
754,246
134,650
(2,213,288)
5,005,921
(234,845)
(227,962)
(3,029,571)
7,633,148
370,959
(2,155,111)
(611,128)
1,196,428
251,595
529,737
(250,936)
(122,144)
(239,510)
(551,090)
(3,269,081)
7,082,058
4,190,340
6,644,923
20,968,197
28,309,896
594,040
956,223
10,017,689
20,261,092
(1,604,710)
(1,007,503)
(1,594,414)
(4,193,899)
28,380,802
44,325,809
12,500
-
(347,161)
(1,801,570)
(22,776,953)
(22,495,812)
32,615
89,659
6,370
(5,016)
1,003,447
(1,833,262)
(2,587,374)
(5,271,813)
(24,656,556)
(31,317,814)
23,621,265
10,251,286
3,000,000
5,700,000
9,984,330
6,289,880
(4,650,000)
(4,200,000)
6,249,156
14,388,650
(14,206,000)
(7,075,680)
-
(2,000,000)
(82,106)
(25,548)
50,829
98,600
(163,264)
(157,717)
155
(29,499)
(17,455,839)
(39,639,407)
(188,105)
(248,033)
6,160,421
(16,647,468)
(1,299,403)
(912,832)
8,585,264
(4,552,305)
43,608,119
52,365,882
$
52,193,383
47,813,577

2020
$ 16,777,857
11,199,582
1,217,111
80,547
1,019,813
(612,866)
(2,234,710)
(3,371,012)
38,200
59,859
(261,371)
1,790
284,388
1,885
36,205
7,459,421
26,823
(1,362,507)
754,246
(2,213,288)
(234,845)
(3,029,571)
370,959
(611,128)
251,595
(250,936)
(239,510)
(3,269,081)
4,190,340
20,968,197
594,040
10,017,689
(1,604,710)
(1,594,414)
28,380,802
12,500
(347,161)
(22,776,953)
32,615
6,370
1,003,447
(2,587,374)
(24,656,556)
23,621,265
3,000,000
9,984,330
(4,650,000)
6,249,156
(14,206,000)
-
(82,106)
50,829
(163,264)
155
(17,455,839)
(188,105)
6,160,421
(1,299,403)
8,585,264
43,608,119
$
52,193,383

See accompanying notes to Consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

September 30, 2020 and 2019

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

(1) Company history

Nan Ya Plastics Corporation was incorporated on August 22, 1958, and established its factories in Kaohsiung City. The Company engages in the manufacture and sale of plastic products, polyester fibers, petrochemical products, and electronic materials. 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 issue by the Board of Directors on November 9, 2020.

(3) New standards, amendments and interpretations adopted:

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

The following new standards, interpretations and amendments have been endorsed by the FSC and are effective for annual periods beginning on or after January 1, 2020.

	Effective date
New, Revised or Amended Standards and Interpretations	per IASB
Amendments to IFRS 3 “Definition of a Business”	January 1, 2020
Amendments to IFRS 9, IAS39 and IFRS7 “Interest Rate Benchmark Reform”	January 1, 2020
Amendments to IAS 1 and IAS 8 “Definition of Material”	January 1, 2020
Amendments to IFRS 16 “Covid-19-Related Rent Concessions”	June 1, 2020

The Consolidated Company assesses that the adoption of the abovementioned standards would not have any material impact on its consolidated financial statements.

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

The following new standards, interpretations and amendments have been endorsed by the FSC and are effective for annual periods beginning on or after January 1, 2021:

	Effective date
New, Revised or Amended Standards and Interpretations	per IASB
Amendments to IFRS 4 “Extension of the Temporary Exemption from Applying	January 1, 2021
IFRS 9”

The Consolidated Company assesses that the adoption of the abovementioned amendments would not have any material impact on its consolidated financial statements.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

As of the date, the following IFRSs that have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

Effective date New, Revised or Amended Standards and Interpretations per IASB Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between Effective date to an Investor and Its Associate or Joint Venture” be determined by IASB IFRS 17 “Insurance Contracts” January 1, 2023 Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” January 1, 2023 － Amendments to IAS 16 “Property, Plant and Equipment Proceeds before January 1, 2022 Intended Use” － Amendments to IAS 37 “Onerous Contracts Cost of Fulfilling a Contract” January 1, 2022 Annual Improvements to IFRS Standards 2018-2020 January 1, 2022 Amendments to IFRS 3 “Reference to the Conceptual Framework” January 1, 2022 Amendments to IFRS 17 “Insurance Contracts” January 1, 2023 Amendments to IFRS 9, IAS39, IFRS7, IFRS 4 and IFRS 16 “Interest Rate January 1, 2021 － Benchmark Reform Phase 2”

Those which may be relevant to the Consolidated Company are set out below:

Issuance / Release
Dates
September 11, 2014

Standards or
Interpretations
Content of amendment
Amendments to IFRS 10 and
IAS 28 “Sale or Contribution
of Assets Between an Investor
and Its Associate or Joint
Venture”
The amendments address an acknowledged
inconsistency between the requirements in
IFRS 10 and those in IAS 28 (2011) in
dealing with the sale or contribution of assets
between an investor and its associate or joint
venture.

The main consequence of the amendments is that a full gain or loss is recognized when a transaction involves a business (whether it is housed in a subsidiary or not). A partial gain or loss is recognized when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary.

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

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(4) Summary of significant accounting policies:

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the preparation and guidelines of IAS 34 “Interim Financial Reporting” which are endorsed and issued into effect by FSC, and do not include all of the information required by the Regulations and International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations endorsed and issued into effect by the FSC (hereinafter referred to IFRS endorsed by the FSC) for a complete set of the annual consolidated financial statements.

Except the following accounting policies mentioned below, the significant accounting policies adopted in the consolidated financial statements are the same as those in the consolidated financial statement for the year ended December 31, 2019. For the related information, please refer to note 4 of the consolidated financial statements for the year ended December 31, 2019.

(b) Basis of consolidation

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

Investor	The name of subsidiaries	Business activity		Shareholding	September 30, 2019 Note % 100.00 Note 1 % 100.00 Note 1 % 100.00 Note 1 % 100.00 % 100.00 Note 1 % 66.97 % 100.00 Note 1 % 50.00 Note 1 % 100.00 Note 1 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 (Continued)
			September 30, 2020 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 66.97 % 100.00 % 50.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00	December 31, 2019 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 66.97 % 100.00 % 50.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company Nan Ya PCB Corporation Nan Ya PCB Corporation Nan Ya PCB (HK) Corporation Nan Ya Plastics (Hong Kong) Co., Ltd. Nan Ya Plastics (Hong Kong) Co., Ltd.	Nan Ya Plastics Corporation U.S.A. Nan Ya Plastics Corporation America Formosa Plastics Group Investment Corp. Nan Ya Plastics (Hong Kong) Co., Ltd. Superior World Wide Trading Co., Ltd. Nan Ya PCB Corporation Wen Fung Industrial Co., Ltd. Nan Chung Petrochemical Corporation Nan Ya Plastics International (Cayman) Limited PFG Fiber Glass Corporation PFG Fiber Glass (Hong Kong) Corporation Limited Nan Ya PCB (U.S.A.) Corporation Nan Ya PCB (HK) Corporation Nan Ya PCB (Kunshan) Corporation Nan Ya Plastics (Nantong) Co., Ltd. Nan Ya Electric (Nantong) Co., Ltd.	production of plastic products production of plastic, polyester and chemical products investment plastics and electronic products trading, investment plastics trading, investment production of printed circuit board production of electronic components production of chemical products investment production of glass fiber investment retargeting electronic materials trading, investment production of printed circuit board production of plastic products, steam and electricity production of switch gear and control panel

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Investor	The name of subsidiaries	Business activity		Shareholding	September 30, 2019 Note
			September 30, 2020 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 85.00 % 100.00 % 100.00 % 100.00 % 100.00	December 31, 2019 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 85.00 % 100.00 % 100.00 % 100.00 % 100.00
Nan Ya Plastics (Hong Kong) Co., Ltd. Nan Ya Plastics (Hong Kong) Co., Ltd. Nan Ya Plastics (Hong Kong) Co., Ltd. Nan Ya Plastics (Hong Kong) Co., Ltd. Nan Ya Plastics (Hong Kong) Co., Ltd. Nan Ya Plastics (Hong Kong) Co., Ltd. Nan Ya Plastics (Hong Kong) Co., Ltd. Nan Ya Plastics (Hong Kong) Co., Ltd. Nan Ya Plastics (Hong Kong) Co., Ltd. Nan Ya Plastics (Hong Kong) Co., Ltd. Wen Fung Industrial Co., Ltd. Nan Ya Plastics Corporation America PFG Fiber Glass (Hong Kong) Corporation Limited	China Nantong Huafeng Co., Ltd. Nantong Huafu Plastics Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. Nan Ya Plastics (Guangzhou) Co., Ltd. Nan Ya Plastics (Huizhou) Co., Ltd. Nan Ya Electronic Materials (Huizhou) Co., Ltd. Nan Ya Trading (Huizhou) Co., Ltd. Nan Ya Plastics (Xiamen) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd. Wellink Technology Corporation Nan Ya Plastics Corporation Texas PFG Fiber Glass (Kunshan) Co., Ltd.	trading trading production of electronic materials, polyester products, steam and electricity production of fiber production of polyester products production of polyester products production of electronic materials trading production of plastic products production of plastic products and plasticizer production of electronic components production of chemical products production of glass fiber			% 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 85.00 % 100.00 % 100.00 Note 1 % 100.00 Note 1 % 100.00

Note 1 ： The aforementioned companies are non-significant subsidiaries, their financial statements have not been reviewed.

The Company holds fifty-percent voting shares of Nan Chung Petrochemical Corporation (Nan Chung), therefore, 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.

(c) Employee benefits

The pension cost in the interim period was calculated and disclosed on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior fiscal year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off event.

(d) Income taxes

The income tax expenses have been prepared and disclosed in accordance with paragraph B12 of International Financial Reporting Standards 34, Interim Reporting.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Income tax expenses for the period are best estimated by multiplying pre-tax income for the interim reporting period by the effective annual tax rate as forecasted by the management.

Temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases shall be measured based on the tax rates that have been enacted or substantively enacted at the time of the asset or liability is recovered or settled, and be recognized directly in equity or other comprehensive income as tax expense.

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

The preparation of the consolidated financial statements in conformity with the Regulations and IFRSs (in accordance with IAS 34 “Interim Financial Reporting” and endorsed by the FSC) requires management to make judgments, estimates and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

The preparation of the consolidated interim financial statements, estimates and underlying assumptions are reviewed on an ongoing basis which are in conformity with the consolidated financial statements for the year ended December 31, 2019. For the related information, please refer to Note 5 of the consolidated financial statements for the year ended December 31, 2019.

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 Nanya Technology Corporation has substantive control over its investees

The Consolidated Company holds 29.52% of the outstanding voting shares of Nanya Technology Corporation, who has a total number of 12 directors in its board, including 3 seats representing the Consolidated Company. Although the Consolidated Company 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 Consolidated Company does not have control over Nanya Technology Corporation.

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

The Consolidated Company holds 23.02% of the outstanding voting shares of Nan YA Photonics Incorporation, who has a total number of 6 directors in its board, including 3 seats representing the Consolidated Company. However, the Consolidated Company failed to make an agreement with other shareholders on the collective decision-making which should obtain more than half of the voting rights during a shareholders’ meeting. Therefore, it is determined that the Consolidated Company does not have control over Nan YA Photonics Incorporation.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Consolidated Company holds 45.00% of the outstanding voting shares of Formosa Automobile Sales Corporation, who has a total number of 5 directors, including 2 seats representing the Consolidated Company. Although the Consolidated Company 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 Consolidated Company does not have control over Formosa Automobile Sales Corporation.

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

The Consolidated Company holds 33.33% of the outstanding voting shares of Formosa Plastics Transport Corporation, who has a total number of 7 directors, including 1 seat representing the Consolidated Company. Although the Consolidated Company 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 Consolidated Company does not have control over Formosa Plastics Transport Corporation.

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

The Consolidated Company holds 26.99% of the outstanding voting shares of Formosa Environmental Technology Corporation, who has a total number of 5 directors, including 1 seat representing the Consolidated Company. Although the Consolidated Company 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 Consolidated Company does not have control over Formosa Environmental Technology Corporation.

(f) Judgment of whether Formosa Fairway Corporation has substantive control over its investees

The Consolidated Company holds 33.34% of the outstanding voting shares of Formosa Fairway Corporation, who has a total number of 5 directors, including 2 seats representing the Consolidated Company. Although the Consolidated Company 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 Consolidated Company does not have control over Formosa Fairway Corporation.

(g) Judgment of whether Hwa Ya Technology Park Management Consulting Corporation has substantive control over its investees

The Consolidated Company holds 34.00% of the outstanding voting shares of Hwa Ya Technology Park Management Consulting Corporation, who has a total number of 3 directors, including 1 seat representing the Consolidated Company. Although the Consolidated Company 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 Consolidated Company does not have control over Hwa Ya Technology Park Management Consulting Corporation.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(6) Explanation of significant accounts:

Except for the following disclosures, there is no significant difference as compared with those disclosed in the consolidated financial statements for the year ended December 31, 2019. Please refer to Note 6 of the 2019 annual consolidated financial statements.

(a) Cash and Cash Equivalents

Cash on hand Cash in banks Time deposits Cash equivalents Cash and cash equivalents	September 30, 2020 $ 1,414 6,652,859 37,843,765 7,695,345 $ 52,193,383	December 31, 2019 1,483 5,922,259 28,061,383 9,622,994 43,608,119	September 30, 2019 1,942 6,515,922 32,329,410 8,966,303 47,813,577

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

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

Current financial assets designated as at fair value through profit or loss: Funds Non-current financial assets designated as at fair value through profit or loss: Foreign Bonds Foreign Stocks Total	September 30, 2020 $ 3,963,809 September 30, 2020 $ 493,990 303,890 $ 797,880	December 31, 2019 4,044,356 December 31, 2019 510,611 314,115 824,726	September 30, 2019
			4,143,095
			September 30, 2019
			722,481 335,932
			1,058,413

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

Current financial assets at fair value through other comprehensive income

Equity instruments at fair value through other comprehensive income: Stocks	September 30, 2020 $ 32,683,918	December 31, 2019 41,715,821	September 30, 2019
			40,041,002

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Non-current financial assets at fair value through other comprehensive income

Equity instruments at fair value through other comprehensive income: Stocks	September 30, 2020 $ 16,571,647	December 31, 2019 22,662,110	September 30, 2019
			24,692,264

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

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

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

There were no disposals of strategic investments and transfers of any cumulative gain or loss within equity relating to these investments as of September 30, 2019

(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 Consolidated Company had been pledged as collateral; please refer to note 8.
(d) Notes and accounts receivable

Notes receivable from operating activities Accounts receivable Overdue receivables Less: Loss allowance	September 30, 2020 $ 5,543,569 40,077,845 20,281 (359,956) $ 45,281,739	December 31, 2019 5,573,110 38,849,472 4,555 (363,604) 44,063,533	September 30, 2019 5,617,119 40,158,624 33,352 (341,635)
			45,467,460

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Consolidated Company applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables on September 30, 2020, December 31 and September 30, 2019. 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 as of September 30, 2020, December 31 and September 30, 2019 amounted to $359,956, $363,604 and $341,635, respectively. The expected loss rate on September 30, 2020, is 0.45% to 1.87% for current, 2.01% to 12.55% for 1 to 90 days past due, 2.21% to 20.34% for 90 to 180 days past due, 10.38% to 67.78% for 180 to 360 days past due, and 92.10% to 100% for more than 360 days past due. The expected loss rate less than 1% on December 31 and September 30, 2019.

The Consolidated Company applies the expected credit losses to analyze notes and accounts receivable as of September 30, 2020, December 31 and September 30, 2019 as follows:

Past due 1 to 90 days Past due 90 to 180 days Past due 180 to 360 days Past due over 360 days	September 30, 2020 $ 113,239 51,794 115,836 63,554 $ 344,423	December 31, 2019 99,867 63,102 45,317 56,025 264,311	September 30, 2019
			140,601 78,680 42,503 44,767
			306,551

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

Balance at January 1, 2020 and 2019 Impairment losses reversed Foreign exchange gains/(losses) Balance at September 30, 2020 and 2019	For the nine months ended September 30 2020 2019 $ 363,604 399,954 - (56,165) (3,648) (2,154) $ 359,956 341,635
	2020 $ 363,604 - (3,648) $ 359,956

As of September 30, 2020, December 31 and September 30, 2019, notes and accounts receivable which were overdue or under legal proceedings amounted to $20,281, $4,555 and $33,352. 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 Consolidated Company signed without-recourse factoring and financing contracts with financial institutions. According to these contracts, the net accounts receivable that have matured but are still uncollected will be paid by the financial institutions, except for those affected by trade disputes. As of September 30, 2020, December 31 and September 30, 2019, the outstanding accounts receivable factoring transactions between the Consolidated Company and the financial institutions were as follows:

September 30, 2020	September 30, 2020	September 30, 2020
Purchaser Factoring Balance Factoring Line Advanced Amount HSBC Bank $ 3,040 USD 500 - E. Sun Bank $ 35,070 100,000 - December 31, 2019		Advanced Amount -	Range of Interest Rate Guarantee project - None - None
		-

`Purchaser` Factoring Balance E. Sun Bank $ 69,693	Factoring Line Advanced Amount 100,000 - September 30, 2019	Advanced Amount -	Range of Interest Rate Guarantee project - None
`Purchaser` Factoring Balance E. Sun Bank $ 41,503	Factoring Line 100,000	Advanced Amount -	Range of Interest Rate Guarantee project - None

(e) Other receivables

Other accounts receivable—other Other accounts receivable—loans to associates Less: Loss allowance Total	September 30, 2020 $ 1,510,172 4,921,780 - $ 6,431,952	December 31, 2019 2,237,168 5,925,227 - 8,162,395	September 30, 2019
			1,655,545 7,951,132 -
			9,606,677

(f) Inventories

The components of inventories were as follows:

Finished goods Work in process Machinery and accessories in process Raw materials Supplies Consigned-out raw materials Consigned-out finished goods Goods in transit Inventories, net	September 30, 2020 $ 11,351,537 9,662,247 8,786,836 11,035,331 1,227,495 134,386 17,247 1,041,323 $ 43,256,402	December 31, 2019 12,537,778 10,154,245 4,835,894 11,326,558 950,930 189,211 16,881 1,556,255 41,567,752	September 30, 2019
			13,978,554 10,813,615 4,590,411 11,602,186 1,146,482 177,980 13,098 1,797,958
			44,120,284

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The details of the cost of sales were as follows:

Inventory that has been sold Write-down of inventories (Reversal of write-downs) Unallocated production overheads	For the three months ended September 30 2020 2019 $ 57,753,837 64,154,665 14,680 96,078 859,554 1,008,125 $ 58,628,071 65,258,868	For the nine months ended September 30 2020 2019 166,886,259 191,971,976 15,424 (126,448) 2,729,005 2,847,274 169,630,688 194,692,802
	2020 $ 57,753,837 14,680 859,554 $ 58,628,071

For September 30, 2020, December 31 and September 30, 2019, the Consolidated Company 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:

follows:
Associates Joint ventures	September 30, 2020 $ 153,031,141 573,757 $ 153,604,898	December 31, 2019 164,591,844 517,537 165,109,381	September 30, 2019
			165,310,532 487,898
			165,798,430

(i) Associates

The Consolidated Company’s share of net income (loss) of associates was as follows:

The Consolidated Company’s share of net income of associates	For the three months ended September 30 2020 2019 $ 5,287,968 3,942,543	For the nine months ended September 30 2020 2019 3,291,501 10,058,206	For the nine months ended September 30 2020 2019 3,291,501 10,058,206
	2020 $ 5,287,968		2019 10,058,206

1) The unrealized translation gain or loss arising from the investment in foreign entities, which was determined on exchange rates as of September 30, 2020, December 31 and September 30, 2019, 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 are disclosed in note 7.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

3) In January, March and June 2020, the Consolidated Company participated in the capital increase by cash of FG Inc., with the total investment amounting to USD8,200 thousand (equivalent to $245,909), and acquired shares of Nan YA Photonics Incorporation at an amount of $101,252 in September 2020.
4) In March and August, 2019, the Consolidated Company participated in the capital increase by cash of FG Inc. and Formosa Resources Corporation, with the total investment amounting to USD7,500 thousand (equivalent to $231,570) and $1,570,000, respectively.
5) The Consolidated Company’s financial information for investments accounted for using the equity method that are individually insignificant was as follows:

September 30, 2020 Carrying amount of individually insignificant associates’ equity $ 153,031,141 For the three months ended September 30 2020 2019 Attributable to the Consolidated Company: Net Income $ 5,287,968 3,942,543 Other comprehensive income (1,140,308) (565,179) Total comprehensive income $ 4,147,660 3,377,364	December 31, 2019 September 30, 2019 164,591,844 165,310,532 For the nine months ended September 30 2020 2019 3,291,501 10,058,206 (7,305,236) 1,056,656 (4,013,735) 11,114,862	December 31, 2019 September 30, 2019 164,591,844 165,310,532 For the nine months ended September 30 2020 2019 3,291,501 10,058,206 (7,305,236) 1,056,656 (4,013,735) 11,114,862
	2020 3,291,501 (7,305,236) (4,013,735)
		10,058,206 1,056,656
		11,114,862

(ii) Joint ventures

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

The Consolidated Company’s share of net income of joint ventures	For the three months ended September 30 2020 2019 $ 34,600 26,013	For the nine months ended September 30 2020 2019 79,511 66,788	For the nine months ended September 30 2020 2019 79,511 66,788
	2020 $ 34,600		2019 66,788

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Consolidated Company’ s financial information for 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.

September 30, 2020 The carrying value of joint ventures that were not individually material $ 573,757 For the three months ended September 30 2020 2019 Attributable to the Consolidated Company: Net income $ 34,600 26,013 Other comprehensive income - - Total comprehensive income $ 34,600 26,013	September 30, 2020	December 31, 2019 September 30, 2019 517,537 487,898 For the nine months ended September 30	September 30, 2019
			487,898
2020 $ 34,600 - $ 34,600	2019	2020 79,511 - 79,511	2019
	26,013 -		66,788 -
	26,013		66,788

(iii) Collateral

Please refer to note 8 for investments accounted for using equity method which were pledged to banks or courts as collateral to secure the Consolidated Company’s bank loans and lawsuits as of September 30, 2020, December 31 and September 30, 2019.

(iv) The unreviewed financial statements of investments accounted for using equity method

Except for Formosa Petrochemical Corporation, Nan Ya Technology Corporation, Nan Ya Kyowa Plastics (Nantong) Corporation and Nan Ya Plastics (Zhengzhou) Corporation, which were reviewed by other auditors, investments were accounted for by the equity method, and the share of profit or loss and other comprehensive income of those investments were calculated based on the financial statements that have not been reviewed.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(h) Property, Plant and Equipment

The cost, depreciation, and impairment of property, plant and equipment of the Consolidated Company were as follows:

Cost or deemed cost: Balance on January 1, 2020 Additions Disposals Reclassification Effect of movements in exchange rates Balance on September 30, 2020 Balance on January 1, 2019 Additions Disposals Reclassification Effect of movements in exchange rates Balance on September 30, 2019 Depreciation and impairment loss: Balance on January 1, 2020 Depreciation for the period Impairment loss Disposals Reclassification Effect of movements in exchange rates Balance on September 30, 2020 Balance on January 1, 2019 Depreciation for the period Reversal of impairment Disposals Reclassification Effect of movements in exchange rates Balance on September 30, 2019 Carrying amounts: Balance on September 30, 2020 Balance on January 1, 2020 Balance on September 30, 2019	Land $ 13,500,497 - (463) - (2,385) $ 13,497,649 $ 13,494,231 - (2,016) - 652 $ 13,492,867 $ - - - - - - $ - $ - - - - - - $ - $ 13,497,649 $ 13,500,497 $ 13,492,867	Building and construction 61,688,821 - - 114,235 (392,779) 61,410,277 62,744,023 1,750 (2,347) 100,863 (361,494) 62,482,795 36,320,619 1,441,919 - - (58) (225,724) 37,536,756 34,982,056 1,516,575 - (2,049) - (179,498) 36,317,084 23,873,521 25,368,202 26,165,711	Machinery and equipment 347,328,836 1,007,588 (2,916,867) 8,877,437 (2,011,576) 352,285,418 344,851,726 1,043,523 (2,628,431) 6,809,816 (1,656,659) 348,419,975 275,222,625 9,046,484 36,205 (2,827,170) (15,463) (1,652,832) 279,809,849 270,655,062 9,358,442 (59) (2,525,958) 7,153 (1,000,834) 276,493,806 72,475,569 72,106,211 71,926,169	Transportation equipment 1,533,383 14,560 (22,395) 101,575 (10,722) 1,616,401 1,547,158 12,340 (34,929) 32,371 (3,850) 1,553,090 1,339,699 40,222 - (21,768) (783) (7,294) 1,350,076 1,357,620 38,938 - (34,077) (4,763) (3,088) 1,354,630 266,325 193,684 198,460	Other facilities 12,978,622 253,006 (205,560) 314,682 (45,405) 13,295,345 12,480,222 190,894 (186,850) 523,920 (78,169) 12,930,017 9,888,316 492,412 - (205,188) (72,908) (36,669) 10,065,963 9,685,710 482,145 - (182,745) (7,162) (59,067) 9,918,881 3,229,382 3,090,306 3,011,136	Construction in progress 41,836,464 21,501,799 (39,515) (6,176,047) (1,212,688) 55,910,013 22,470,349 21,247,305 (27,303) (4,495,599) 65,527 39,260,279 - - - - - - - - - - - - - - 55,910,013 41,836,464 39,260,279	Total 478,866,623 22,776,953 (3,184,800) 3,231,882 (3,675,555) 498,015,103 457,587,709 22,495,812 (2,881,876) 2,971,371 (2,033,993) 478,139,023 322,771,259 11,021,037 36,205 (3,054,126) (89,212) (1,922,519) 328,762,644 316,680,448 11,396,100 (59) (2,744,829) (4,772) (1,242,487) 324,084,401 169,252,459 156,095,364 154,054,622

(i) Collateral

Please refer to note 8 for the property, plant and equipment pledged to secure bank loans as of September 30, 2020, December 31 and September 30, 2019.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Property, plant and equipment under construction

For the three months and nine months ended September 30, 2020 and 2019 the capitalized interest on borrowings for the purchase of the property, plant and equipment of the Consolidated Company amounted to $52,341, $123,828, $234,159 and $153,004, respectively. The capitalized interest rate ranged from 1.2818%~2.8875% and 1.356%~3.523% for the nine months ended September 30, 2020 and 2019, respectively.

(i) Right-of-use assets

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

Carrying amount: Balance at September 30, 2020 Balance at January 1, 2020 Balance at September 30, 2019	Land $ 655,952 $ 723,448 $ 740,463	Building and construction 87,522 136,190 144,706	Machinery and equipment 37,397 19,925 22,210	Transportation equipment 242,004 318,986 364,452	Total 1,022,875
					1,198,549
					1,271,831

The right-of-use assets of the Consolidated Company have no significant additions, dispositions, impairment, or reversals for the nine months ended September 30, 2020 and 2019. Please refer to note 12 for the amount of depreciation, and for other related information, please refer to note 6(i) of the consolidated financial statement for the year ended December 31, 2019.

(j) Intangible assets

The cost, amortization and impairment of the intangible assets of the Consolidated Company were as follows:

follows:
Carrying value`：` Balance at September 30, 2020 Balance at January 1, 2020 Balance at September 30, 2019	Trademark
	$ 2,148,736 $ 2,293,595 $ 2,341,881

The intangible assets of the Consolidated Company have no significant additions, dispositions, impairment, or reversals for the nine months ended September 30, 2020 and 2019. For the related information, please refer to note 6(j) of the consolidated financial statement for the year ended December 31, 2019.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(k) Short-term notes and bills payable

Short-term notes and bills payable Discount on short-term notes and bills payable Total Range of interest rates	September 30, 2020 $ 18,400,000 (6,093) $ 18,393,907 0.382%~0.435%	December 31, 2019 15,400,000 (7,205) 15,392,795 0.532%~0.695%	September 30, 2019
			14,600,000 (5,388)
			14,594,612
			0.60%-0.695%

(l) Short-term borrowings

Unsecured short-term borrowings Range of interest rates	September 30, 2020 $ 47,248,739 0.64%~3.24%	December 31, 2019 24,012,100 0.67%~0.99%	September 30, 2019
			31,498,633
			0.75%~4.30%

For the nine months ended September 30, 2020 and 2019, the Consolidated Company issued shortterm borrowings amounting to $23,621,265 and $10,251,286, and there were no significant repurchases and repayments on short-term borrowings. For information concerning interest expense, please refer to note 6(v)

(m) Long-term debts

Long-term debts consisted of the following:

Secured bank long-term debts Unsecured bank long-term debts Unsecured long-term debts Long-term notes payable Less: current portion Total Secured bank long-term debts Unsecured bank long-term debts Unsecured long-term debts Long-term notes payable Less: current portion Total		September 30, 2020 Interest rate Expiration Amount 0.8450% 2023 $ 2,000,000 0.7873%~0.9449% 2021~2022 2,300,000 1.2500%~2.8875% 2021~2023 5,571,816 0.3400%~0.8420% 2022~2023 5,098,732 (5,742,680) $ 9,227,868 December 31, 2019 Interest rate Expiration Amount 0.9900%~1.6316% 2020~2021 $ 4,000,000 0.9456%~1.0920% 2020~2022 4,300,000 3.2140%~3.5230% 2021 9,784,450 0.5700%~0.8420% 2020 5,096,417 (3,333,333) $ 19,847,534
	Currency	Interest rate
	TWD TWD USD TWD
	Currency	Interest rate
	TWD TWD USD TWD	0.9900%~1.6316% 0.9456%~1.0920% 3.2140%~3.5230% 0.5700%~0.8420%

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Secured bank long-term debts Unsecured bank long-term debts Unsecured long-term debts Unsecured bank long-term debts Long-term notes payable Less: current portion Total		September 30, 2019 Interest rate Expiration Amount 0.9900%~1.6316% 2019~2021 $ 4,666,666 0.9459%~1.0916% 2019~2022 4,300,000 3.2140%~3.5230% 2021 10,088,650 4.7500% 2020 521,391 0.6500%~0.8420% 2020 5,096,600 (3,854,724) $ 20,818,583
	Currency	Interest rate
	TWD TWD USD CNY TWD	0.9900%~1.6316% 0.9459%~1.0916% 3.2140%~3.5230% 4.7500% 0.6500%~0.8420%

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

(i) The Consolidated Company issued the amounts of $6,249,156 and $14,388,650 on long term loans for the nine months ended September 30, 2020 and 2019, respectively. The amounts of $14,206,000 and $7,075,680 were redeemed for the nine months ended September 30, 2020 and 2019, respectively. For information on interest expenses, please refer to note 6(v).
(ii) Pledged assets for bank loans

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

(iii) Secured debts

In order to raise funds to repay debts and for reinvestments, new factory construction plans, and foreign and domestic equipment acquisitions, the Consolidated Company signed a syndicated long-term mortgage loan agreement with Bank of Taiwan, the lead bank of the syndicated loan, and other banks on November 14, 2013. The key terms and conditions of the loan agreement are as follows:

1) Credit line: TWD6,000,000
2) Interest rate: as settled with each participating bank.
3) Period: 7 years (including a 3-year grace period)
4) Collateral: the acquired land financed by the loan.
5) The financial covenants under this loan agreement include the requirement to maintain certain financial ratios based on the audited annual financial reports. Failure to comply with these financial covenants may cause the syndicated banks to terminate the credit line or declare the unpaid principal and interest under the loan agreement to be immediately due and payable. These financial ratios are as follows:
a) Current Ratio (total current assets divided by total current liabilities): not less than 100%

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

b) Leverage Ratio (total liabilities plus contingent liabilities to tangible net worth): not higher than 150%

As of September 30, 2020 and 2019, none of the credit line had been used.

(n) Bonds payable

Domestic unsecured nonconvertible corporate bonds Costs of issuing bonds Current portion Total	September 30, 2020 $ 69,400,000 (75,359) (5,746,481) $ 63,578,160	December 31, 2019 64,050,000 (71,339) (4,647,875) 59,330,786	September 30, 2019 60,700,000 (66,965) (6,396,774) 54,236,261

The terms of domestic corporate bonds as of September 30, 2020 were as follows:

Issued amount Balance, end of year Current portion Issuance date Issuance period Coupon rate Interest payment date Repayment method	The third domestic unsecured nonconvertible corporate bond in 2012	The second domestic unsecured nonconvertible corporate bond in 2013 TWD10,400,000 10,390,469 - December 18, 2013 10 years and 12 years 1.98% and 2.08% December 18 Payable in 2 equal installments for each coupon rate in 2022~2023 and 2024~2025, respectively	The first domestic unsecured nonconvertible corporate bond in 2014	The second domestic unsecured nonconvertible corporate bond in 2014	The first domestic unsecured nonconvertible corporate bond in 2016
	TWD6,000,000 3,598,889 - February 25, 2013 7 years and 10 years 1.36% and 1.50% February 25 Payable in 2 equal installments for each coupon rate in 2018~2019 and 2021~2022, respectively		TWD10,000,000 9,985,256 - June 24, 2014 14 years and 15 years 2.04% June 24 Payable in 2 equal installments for each coupon rate in 2028 and 2029, respectively.	TWD5,000,000 1,499,049 - November 11, 2014 5 years and 10 years 1.45% and 1.93% November 11 Payable in 2 equal installments for each coupon rate in 2018~2019 and 2023~2024, respectively.	TWD5,000,000 2,498,572 2,498,572 August 16, 2016 5 years 0.68% August 16 Payable in 2 equal Installments for cash Coupon rate in 2020~2021, respectively.

Issued amount Balance, end of year Current portion Issuance date Issuance period Coupon rate Interest payment date Repayment method	The first domestic unsecured nonconvertible corporate bond in 2017	The first domestic unsecured nonconvertible corporate bond in 2018 TWD10,500,000 10,489,147 - September 6, 2018 5 years, 7 years and 10 years 0.83%, 0.91% and 1.07% September 6 Payable in 2 equal installments for each coupon rate in 2022~2023, 2024~2025, and 2027~2028, respectively	The first domestic unsecured nonconvertible corporate bond in 2019	The second domestic unsecured nonconvertible corporate bond in 2019	The first domestic unsecured nonconvertible corporate bond in 2020
	TWD9,500,000 9,493,888 3,247,909 July 10, 2017 5 years and 7 years 1.03% and 1.25% July 10 Payable in 2 equal installments for each coupon rate in 2021~2022 and 2023~2024, respectively		TWD6,300,000 6,291,850 - June 17, 2019 5 years, 7 years and 10 years 0.74%, 0.82% and 0.91% June 17 Payable in 2 equal installments for each coupon rate in 2023~2024, 2025~2026, and 2028~2029, respectively	TWD5,100,000 5,092,997 - October 15, 2019 5 years, 7 years and 10 years 0.71%, 0.75% and 0.84% October 15 Payable in 2 equal installments for each coupon rate in 2023~2024, 2025~2026, and 2028~2029, respectively	TWD10,000,000 9,984,524 - September 24, 2020 5 years,7 years and 10 years 0.49%, 0.58% and 0.62% September 24 Payable in 2 equal Installments for cash Coupon rate in 2024~2025, 2026~2027 and 2029~2030, 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:

Current Non-current	September 30, 2020 $ 139,023 $ 244,146	December 31, 2019 197,527 291,222	September 30, 2019
			204,623
			337,703

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

The amounts recognized in profit or loss were as follows:

For the three months ended September 30 2020 2019 $ 3,089 4,270 $ 21,701 33,382	For the nine months ended September 30	For the nine months ended September 30
2020 $ 3,089 $ 21,701	2020 9,732 86,529	2019
		13,899
		87,805

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

Total cash outflow for leases	For the nine months ended September 30	For the nine months ended September 30
	2020 $ 249,793	2019
		245,522

(i) Real estate leases

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

(ii) Other leases

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

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

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(p) Employee Benefits

(i) Defined benefit plans

Management believes that there was no material volatility of the market, no material reimbursement and settlement or other material one-time events since prior fiscal year. As a result, the pension cost in the accompanying interim consolidated financial statements was measured and disclosed according to the actuarial report as of December 31, 2019 and 2018.

The expenses recognized in profit or loss for the Consolidated Company were as follows:

For the three months ended September 30 2020 2019 $ 22,477 130,123 5,301 5,842 25,059 28,737 $ 52,837 164,702	For the nine months ended September 30	For the nine months ended September 30
2020 $ 22,477 5,301 25,059 $ 52,837	2020 338,115 15,690 74,789 428,594	2019
		390,560 17,532 85,755
		493,847

(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 Consolidated Company’s expenses under the pension plan cost to the Bureau of Labor Insurance were as follows:

For the three months ended September 30 2020 2019 $ 240,523 274,603 11,509 15,250 34,316 37,425 $ 286,348 327,278	For the nine months ended September 30	For the nine months ended September 30
2020 $ 240,523 11,509 34,316 $ 286,348	2020 669,490 35,222 99,716 804,428	2019
		855,419 46,949 113,851
		1,016,219

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(q) Income Tax

(i) Income tax expense

The components of income tax expense were as follows:

Current income tax expense Current period Adjustment for prior periods Deferred tax expense Origination and reversal of temporary differences Total income tax expense	For the three months ended September 30 2020 2019 $ 828,657 674,756 1,629 - 263,658 78,766 $ 1,093,944 753,522	For the nine months ended September 30 2020 2019 2,389,605 2,264,217 (617,809) (58,658) 675,425 518,876 2,447,221 2,724,435
	2020 $ 828,657 1,629 263,658 $ 1,093,944	2020 2,389,605 (617,809) 675,425 2,447,221

(ii) Assessment of tax

The Corporation’ s income tax return for the year 2018 had been examined by the tax authorities.

(r) Capital and other equity

As of September 30, 2020 and 2019, the Consolidated Company’ s government registered total authorized capital and issued capital stock both amounted to $79,308,216, divided into 7,930,822 thousand shares of stock with $10 par value per share.

(i) Capital surplus

The components of capital surplus were as follows:

Paid-in capital from conversion of corporate bond to common stock in excess of par value Gains on acquisition of Taiwan Plasticizer Corporation Other Total	September 30, 2020 $ 8,997,136 74,474 17,461,275 $ 26,532,885	December 31, 2019 8,997,136 74,474 17,546,224 26,617,834	September 30, 2019
			8,997,136 74,474 17,536,548
			26,608,158

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Retained earnings

1) Special reserve

As the Company opted to avail of the exemptions allowed under IFRS 1“ First-time Adoption of International Financial Reporting Standards” during the Company’s firsttime adoption of the IFRSs as endorsed by the FSC, unrealized revaluation increments and cumulative translation adjustments (gains) of $6,277,052, which were previously recognized in shareholders’ equity were reclassified to retained earnings. In accordance with Regulatory Permit No. 1010012865 as issued by the FSC on April 6, 2012, a special reserve is appropriated from retained earnings for aforementioned reclassification. In addition, during the use, disposal or reclassifications of relevant assets, these special reserves can be reverted to distributable earnings proportionately. As the amount appropriated exceeds the increase in retained earnings arising from the adoption of IFRSs, only $6,243,060 is appropriated in compliance to the IFRSs as endorsed by the FSC. The balance of special reserve amounted to $6,126,609, $6,128,451 and $6,128,451 as of September 30, 2020, December 31 and September 30, 2019.

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

2) Earnings distribution

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

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

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

Dividends per share: Cash dividends	2019 2018 $ 2.20 5.00

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

(iii) Other equity accounts (net of tax)

Balance at January 1, 2020 Exchange differences arising on translation of foreign operations Exchange differences on associates / joint ventures accounts for using equity method Unrealized gains (losses) from financial assets at fair value through other comprehensive income Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income, associates and joint ventures accounted for using equity method Share of cash flow hedge of associates / joint ventures Disposal of equity instrument at fair value through other comprehensive income Balance at September 30, 2020	Exchange differences on translation of foreign financial statements $ (11,571,431) (2,956,631) (1,282,628) - - - - $ (15,810,690)	Unrealized gains (losses) on financial assets at fair value through other comprehensive income 46,111,488 - - (14,369,666) (6,041,520) - 122,627 25,822,929	Gains (losses) on hedging instruments 631 - - - - 38,332 - 38,963	Total 34,540,688 (2,956,631) (1,282,628) (14,369,666) (6,041,520) 38,332 122,627
				10,051,202

Balance at January 1, 2019 Exchange differences arising on translation of foreign operations Exchange differences on associates / joint ventures accounted for using equity method Unrealized gains (losses) from financial assets at fair value through other comprehensive income Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income, associates and joint ventures accounted for using equity method Share of cash flow hedge of associates / joint ventures Balance at September 30, 2019	Exchange differences on translation of foreign financial statements $ (5,705,296) (1,366,337) 297,110 - - - $ (6,774,523)	Unrealized gains (losses) on financial assets at fair value through other comprehensive income 54,624,319 - - (7,990,696) 744,180 - 47,377,803	Gains (losses) on hedging instruments (15,181) - - - - 15,366 185	Total 48,903,842 (1,366,337) 297,110 (7,990,696) 744,180 15,366
				40,603,465

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(s) Earnings Per Share

The calculation of the Consolidated Company's basic earnings per share is as follows:

For the three months ended September 30, 2020 2019 $ 10,359,495 8,017,606 7,930,822 7,930,822 $ 1.31 1.01	For the nine months ended September 30,	For the nine months ended September 30,
2020 $ 10,359,495 7,930,822 $ 1.31	2020 13,529,785 7,930,822 1.71	2019
		18,926,725
		7,930,822
		2.39

(t) Revenue from contracts with customers

	For the three months ended September 30, 2020	For the three months ended September 30, 2020	For the three months ended September 30, 2020	For the three months ended September 30, 2020	Total 18,450,278 29,972,583 19,367,344
Plastics industry $ 4,538,089 2,623,026 3,331,036 $ 10,492,151 $ 1,645,252 1,844,587 1,642,389 - - - - - - - - - - 5,359,923 $ 10,492,151	Chemical industry 4,001,113 6,944,752 3,290,677 14,236,542 - - - 2,204,130 3,348,882 4,775,968 - - - - - - - 3,907,562 14,236,542	Electronic industry 6,556,028 19,023,028 5,357,991 30,937,047 - - - - - - 6,625,585 6,639,386 10,505,051 - - - - 7,167,025 30,937,047	Polyester industry 2,703,299 909,049 7,340,667 10,953,015 - - - - - - - - - 2,214,896 4,525,751 2,772,246 - 1,440,122 10,953,015	Other industries 651,749 472,728 46,973 1,171,450 - - - - - - - - - - - - 1,106,363 65,087 1,171,450
					67,790,205
					1,645,252 1,844,587 1,642,389 2,204,130 3,348,882 4,775,968 6,625,585 6,639,386 10,505,051 2,214,896 4,525,751 2,772,246 1,106,363 17,939,719
					67,790,205

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

	For the three months ended September 30, 2019	For the three months ended September 30, 2019	For the three months ended September 30, 2019	For the three months ended September 30, 2019
Plastics industry $ 3,960,603 3,567,134 3,114,815 $ 10,642,552 $ 1,655,814 2,133,958 1,377,831 - - - - - - - - - - 5,474,949 $ 10,642,552	Chemical industry 5,800,620 7,118,373 4,433,775 17,352,768 - - - 2,775,256 2,674,364 7,903,525 - - - - - - - 3,999,623 17,352,768	Electronic industry 6,129,619 16,062,718 7,366,490 29,558,827 - - - - - - 7,225,765 6,587,733 8,429,073 - - - - 7,316,256 29,558,827	Polyester industry 3,683,907 904,119 8,837,723 13,425,749 - - - - - - - - - 2,541,566 5,236,866 4,141,757 - 1,505,560 13,425,749	Other industries 760,855 99,824 44,783 905,462 - - - - - - - - - - - - 823,396 82,066 905,462	Total 20,335,604 27,752,168 23,797,586
					71,885,358
					1,655,814 2,133,958 1,377,831 2,775,256 2,674,364 7,903,525 7,225,765 6,587,733 8,429,073 2,541,566 5,236,866 4,141,757 823,396 18,378,454
					71,885,358

	For the nine months ended September 30, 2020	For the nine months ended September 30, 2020	For the nine months ended September 30, 2020	For the nine months ended September 30, 2020
Plastics industry $ 13,360,228 6,838,261 9,075,146 $ 29,273,635 $ 4,570,037 5,486,383 4,466,986 - - - - - - - - - - 14,750,229 $ 29,273,635	Chemical industry 13,350,357 22,277,986 9,993,348 45,621,691 - - - 5,923,751 10,255,249 18,480,507 - - - - - - - 10,962,184 45,621,691	Electronic industry 22,151,983 46,517,427 15,759,088 84,428,498 - - - - - - 18,230,952 17,721,159 27,524,525 - - - - 20,951,862 84,428,498	Polyester industry 7,807,240 2,641,056 21,178,679 31,626,975 - - - - - - - - - 6,146,343 12,600,754 8,420,623 - 4,459,255 31,626,975	Other industries 2,329,415 570,891 121,189 3,021,495 - - - - - - - - - - - - 2,702,780 318,715 3,021,495	Total 58,999,223 78,845,621 56,127,450
					193,972,294
					4,570,037 5,486,383 4,466,986 5,923,751 10,255,249 18,480,507 18,230,952 17,721,159 27,524,525 6,146,343 12,600,754 8,420,623 2,702,780 51,442,245
					193,972,294

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

	For the nine months ended September 30, 2019	For the nine months ended September 30, 2019	For the nine months ended September 30, 2019	For the nine months ended September 30, 2019
Plastics industry $ 13,140,834 8,378,546 10,331,681 $ 31,851,061 $ 5,216,301 6,207,668 4,156,258 - - - - - - - - - - 16,270,834 $ 31,851,061	Chemical industry 17,065,321 25,264,678 12,582,062 54,912,061 - - - 9,031,372 10,701,558 22,702,183 - - - - - - - 12,476,948 54,912,061	Electronic industry 17,594,200 46,116,197 18,591,528 82,301,925 - - - - - - 19,769,990 19,630,614 22,315,264 - - - - 20,586,057 82,301,925	Polyester industry 10,422,739 3,102,806 28,884,001 42,409,546 - - - - - - - - - 8,581,766 16,228,380 13,020,631 - 4,578,769 42,409,546	Other industries 2,224,229 628,080 330,327 3,182,636 - - - - - - - - - - - - 2,913,936 268,700 3,182,636	Total 60,447,323 83,490,307 70,719,599
					214,657,229
					5,216,301 6,207,668 4,156,258 9,031,372 10,701,558 22,702,183 19,769,990 19,630,614 22,315,264 8,581,766 16,228,380 13,020,631 2,913,936 54,181,308
					214,657,229

(u) Employee compensation

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

The remunerations to employees amounted to $10,651, $8,242, $14,111 and $20,283, respectively, for the three months and nine months ended September 30, 2020 and 2019, respectively. These amounts were calculated using the Company's net income before tax without the remunerations to employees for each period, multiplied by the proposed percentage which is stated under the Company's proposed Article 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 shareholder’ meeting, the adjustment will be regarded as changes in accounting estimates and will be reflected in profit or loss in the following year.

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

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(v) Non-operating income and expenses

(i) Interest income

The details of interest income were as follows:

Interest income from bank deposits Other interest income	For the three months ended September 30, 2020 2019 $ 156,062 210,152 53,387 184,840 $ 209,449 394,992	For the nine months ended September 30, 2020 2019 495,672 607,512 117,194 269,869 612,866 877,381	For the nine months ended September 30, 2020 2019 495,672 607,512 117,194 269,869 612,866 877,381
			2019 607,512 269,869 877,381

(ii) Other income

The details of other income were as follows:

Dividend income Other income	For the three months ended September 30, 2020 2019 $ 2,197,640 2,340,669 535,528 541,156 $ 2,733,168 2,881,825	For the nine months ended September 30, 2020 2019 2,234,710 3,237,584 1,924,557 1,454,172 4,159,267 4,691,756	For the nine months ended September 30, 2020 2019 2,234,710 3,237,584 1,924,557 1,454,172 4,159,267 4,691,756
	2020 $ 2,197,640 535,528 $ 2,733,168	2020 2,234,710 1,924,557 4,159,267
			4,691,756

(iii) Other gains and losses

The details of other gains and losses were as follows:

For the three months ended September 30, 2020 2019 $ (17,022) (14,162) (476,330) 243,954 (59,497) 23,836 6 55 (49,871) (57,687) $ (602,714) 195,996	For the nine months ended September 30, 2020 2019 (38,200) (24,302) (566,354) 726,179 (80,547) 125,846 (36,205) 59 (273,461) (158,528) (994,767) 669,254 (Continued)	For the nine months ended September 30, 2020 2019 (38,200) (24,302) (566,354) 726,179 (80,547) 125,846 (36,205) 59 (273,461) (158,528) (994,767) 669,254 (Continued)
2020 $ (17,022) (476,330) (59,497) 6 (49,871) $ (602,714)	2020 (38,200) (566,354) (80,547) (36,205) (273,461) (994,767)
		669,254
		(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iv) Finance costs

The details of finance costs were as follows:

Interest expense Less: interest capitalized	For the three months ended September 30, 2020 2019 $ 408,116 647,249 (52,341) (123,828) $ 355,775 523,421	For the nine months ended September 30, 2020 2019 1,253,972 1,405,491 (234,159) (153,004) 1,019,813 1,252,487
	2020 $ 408,116 (52,341) $ 355,775	2020 1,253,972 (234,159) 1,019,813

(w) Financial Instruments

Except for the contention mentioned below, there was no significant change in the fair value of the Consolidated Company’s financial instruments and degree of exposure to credit risk, liquidity risk and market risk arising from financial instruments. For the related information, please refer to note 6(x) of the consolidated financial statements for the year ended December 31, 2019.

(i) Liquidity risk

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

September 30, 2020 Non-derivative financial liabilities Short-term notes and bills payable Notes and accounts payable Accounts payables to related parties Short-term borrowings Long-term borrowings Bonds payable (TWD) Long-term notes payable Lease liabilities December 31, 2019 Non-derivative financial liabilities Short-term notes and bills payable Notes and accounts payable Accounts payables to related parties Short-term borrowings Long-term borrowings Bonds payable (TWD) Long-term notes payable Lease liabilities	Carrying amount $ 18,393,807 10,746,762 5,689,778 47,248,739 9,871,816 69,324,641 5,098,732 383,169 $ 166,757,444 $ 15,392,795 9,102,231 6,986,969 24,012,100 18,084,450 63,978,661 5,096,417 488,749 $ 143,142,372	Contractual cash flows 18,406,093 10,746,762 5,689,778 47,484,473 10,100,929 73,906,975 5,115,651 424,772 171,875,433 15,407,205 9,102,231 6,986,969 24,040,204 18,235,167 68,740,741 5,185,968 520,549 148,219,034	Within 6 months 18,406,093 10,746,762 5,689,778 32,825,980 110,200 331,190 2,538 102,610 68,215,151 15,407,205 9,102,231 6,986,969 22,500,021 711,826 1,526,240 7,164 109,000 56,350,656	6-12 months - - - 14,658,493 5,813,937 6,316,680 2,538 58,867 26,850,515 - - - 1,540,183 2,698,470 3,975,235 7,164 99,955 8,321,007	1-2 years - - - - 1,824,044 8,484,275 5,076 84,048 10,397,443 - - - - 13,020,488 6,553,430 2,128,656 112,797 21,815,371	2-5 years - - - - 2,352,748 31,492,775 5,105,499 103,598 39,054,620 - - - - 1,804,383 31,840,153 3,042,984 131,903 36,819,423	Over 5 years
							- - - - - 27,282,055 - 75,649
							27,357,704
							- - - - - 24,845,683 - 66,894
							24,912,577

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

September 30, 2019 Non-derivative financial liabilities Short-term notes and bills payable Notes and accounts payable Accounts payables to related parties Short-term borrowings Long-term borrowings Bonds payable Bonds payable (TWD) Long-term notes payable Lease liabilities	Carrying amount $ 14,594,612 9,433,263 6,625,722 31,498,633 19,576,707 60,633,035 5,096,600 98,600 542,326 $ 148,099,498	Contractual cash flows 14,605,388 9,433,263 6,625,722 31,524,646 20,636,528 65,416,745 5,179,980 99,998 578,430 154,100,700	Within 6 months 14,605,388 9,433,263 6,625,722 31,524,646 1,574,415 3,284,765 7,998 - 113,476 67,169,673	6-12 months - - - - 3,381,743 3,953,965 7,998 99,998 104,302 7,548,006	1-2 years - - - - 3,537,536 6,515,310 2,115,996 - 136,421 12,305,263	2-5 years - - - - 12,142,834 27,119,772 3,047,988 - 152,047 42,462,641	Over 5 years
							- - - - - 24,542,933 - - 72,184
							24,615,117

It is expected that the cash flows included in the maturity analysis to occur significantly earlier or at significantly different amounts.

(ii) Currency risk

1) Exposure to foreign currency risk

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

Financial assets Monetary items USD JPY EUR HKD CNY Non-monetary items USD CNY IDR VND	September 30, 2020	September 30, 2020
	Foreign Currency $ 878,748 99,400 2,162 3,326 2,718 376,127 70,124 131,684,534 6,307,169,236	Exchange Rate TWD 29.1260 25,594,414 0.2744 27,275 34.0506 73,617 3.7341 12,420 4.2770 11,625 29.1260 10,955,075 4.2770 299,920 0.0021 276,538 0.0013 8,199,320

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial liabilities Monetary items USD JPY EUR CNY Financial assets Monetary items USD JPY EUR HKD CNY Non-monetary items USD CNY IDR VND Financial liabilities Monetary items USD JPY EUR Financial assets Monetary items USD JPY EUR HKD CNY	September 30, 2020	September 30, 2020
	Foreign Currency Exchange Rate TWD $ 182,295 29.1260 5,309,524 1,749,259 0.2744 479,997 2,316 34.0506 78,861 153 4.2770 654 December 31, 2019
	Foreign Currency Exchange Rate TWD $ 814,690 30.1060 24,527,057 391,109 0.2763 108,063 598 33.6895 20,146 5,840 3.8597 22,541 23,304 4.3155 100,568 482,507 30.1060 14,526,356 59,888 4.3155 258,447 119,869,376 0.0022 263,713 6,283,412,736 0.0013 8,168,437 159,283 30.1060 4,795,374 1,487,754 0.2763 411,066 2,498 33.6895 84,156 September 30, 2019
	Foreign Currency $ 1,194,302 73,842 1,341 7,536 2,516	Exchange Rate TWD 31.0420 37,073,523 0.2875 21,230 33.9439 45,519 3.9797 29,991 4.3888 11,042

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Non-monetary items USD CNY IDR VND Financial liabilities Monetary items USD JPY EUR CNY	September 30, 2019	September 30, 2019
	Foreign Currency $ 541,689 57,185 109,922,345 6,353,577,659 143,804 1,225,970 2,184 766	Exchange Rate TWD 31.0420 16,815,110 4.3888 250,974 0.0022 241,829 0.0013 8,259,651 31.0420 4,463,964 0.2875 352,466 33.9439 74,133 4.3888 3,362

2) Sensitivity analysis

The Consolidated Company’ 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 nine months ended September 30, 2020 and 2019 assuming the TWD depreciated or appreciated by 1% against the USD, JPY, EUR, HKD and CNY as of September 30, 2020 and 2019 were as follows:

Appreciation in value of 1% Depreciation in value of 1%	For the nine months ended September 30, 2020 2019 $ (198,604) (322,823) 198,604 322,823

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

3) Foreign exchange gain and loss on monetary items

Since the Consolidated Company has many kinds of functional currency, the information on foreign exchange gain (loss) on monetary items is disclosed by total amount. for the nine months ended September 30, 2020 and 2019, foreign exchange gain (loss) (including realized and unrealized portions) amounted to loss $566,354 and gain $726,179, respectively.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Other market price risks

For the nine months ended September 30, 2020 and 2019, the sensitivity analyses for the changes in the securities price at the reporting date were performed using the same basis for the comprehensive income as illustrated below:

Prices of securities at the reporting date Increasing 1% Decreasing 1%	For the nine months ended September 30, 2020 For the nine months ended September 30, 2019 Other comprehensive income after tax Other comprehensive income after tax $ 326,839 400,410 $ (326,839) (400,410)

(iv) Fair value of financial instruments
1) Fair value hierarchy

The fair value of financial assets and liabilities at fair value through profit or loss and financial assets at fair value though other comprehensive income is measured on a recurring basis. The carrying amount and fair value of the Consolidated Company’ 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:

	September 30, 2020	September 30, 2020	September 30, 2020
Book Value $ 4,761,689 $ 32,683,918 16,571,647 $ 49,255,565 $ 52,193,383 45,281,739 6,431,952 $ 103,907,074	Level 1 - 32,683,918 - 32,683,918 - - - -	Fair Value
		Level 2 3,963,809 - - - - - - -	Level 3 797,880 - 16,571,647 16,571,647 - - - -	Total 4,761,689
				32,683,918 16,571,647
				49,255,565
				- - -
				-

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

	September 30, 2020	September 30, 2020	September 30, 2020
Book Value $ 47,248,739 383,169 18,393,907 16,436,540 69,324,641 9,871,816 5,098,732 $ 166,757,544	Fair Value Level 1 Level 2 Level 3 47,248,739 - - - - - 18,393,907 - - - - - 69,324,641 - - 9,871,816 - - 5,098,732 - - 149,937,835 - - December 31, 2019	Fair Value
				Total 47,248,739 - 18,393,907 - 69,324,641 9,871,816 5,098,732
				149,937,835

	Level 1 - 41,715,821 - 41,715,821 - - - - 24,012,100 - 15,392,795 - 63,978,661 18,084,450 5,096,417 126,564,423	Fair Value
		Level 2 4,044,356 - - - - - - - - - - - - - - -	Level 3 824,726 - 22,662,110 22,662,110 - - - - - - - - - - - -	Total 4,869,082
				41,715,821 22,662,110
				64,377,931
				- - -
				-
				24,012,100 - 15,392,795 - 63,978,661 18,084,450 5,096,417
				126,564,423

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

	September 30, 2019	September 30, 2019	September 30, 2019
Book Value $ 5,201,508 $ 40,041,002 24,692,264 $ 64,733,266 $ 47,813,577 45,467,460 9,606,677 $ 102,887,714 $ 31,498,633 98,600 542,326 14,594,612 16,058,985 60,633,035 19,576,707 5,096,600 $ 148,099,498	Level 1 - 40,041,002 - 40,041,002 - - - - 31,498,633 - 542,326 14,594,612 - 60,633,035 19,576,707 5,096,600 131,941,913	Fair Value
		Level 2 4,143,095 - - - - - - - - - - - - - - - -	Level 3 1,058,413 - 24,692,264 24,692,264 - - - - - - - - - - - - -	Total 5,201,508
				40,041,002 24,692,264
				64,733,266
				- - -
				-
				31,498,633 - 542,326 14,594,612 - 60,633,035 19,576,707 5,096,600
				131,941,913

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

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

a) Financial assets measured at amortized cost

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

b) Financial liabilities measured at amortized cost

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

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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 Consolidated Company possesses an active market, its fair value should be recognized according to different categories and characteristics as follows:

For listed and over-the-counter stocks with standard terms and are publicly traded in active markets, their fair value are calculated by the market’s quoted prices.

Other financial instruments that are not traded in active markets are measured with fair values provided by using the valuation techniques via market approach or the discounted cash flow method or other available methods.

If the financial instruments held by the Consolidated Company 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 nine months ended September 30, 2020 and 2019.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

5) Reconciliation of Level 3 fair value

Balance at January 1, 2020 Total gains and losses recognized: In other comprehensive income Reclassified Refund capital reduction Effect of exchange rate changes Balance at September 30, 2020 Balance at January 1, 2019 Total gains and losses recognized: In other comprehensive income Effect of exchange rate changes Balance at September 30, 2019	Fair value through profit and loss Fair value through other comprehensive income $ 824,726 22,662,110 - (5,324,757) - (169,815) - (12,500) (26,846) (583,391) $ 797,880 16,571,647 $ 1,047,877 28,011,349 - (3,503,031) 10,536 183,946 $ 1,058,413 24,692,264

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 Consolidated Company’s accounting policy, the analysis of value changes on remeasured or reevaluated assets and liabilities at the reporting date is performed to ensure the reasonability of the evaluation results.
7) Quantified information on significant unobservable inputs (Level 3) used in fair value measurement

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

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Quantified information of significant unobservable inputs was as follows:

Inter-relationship between significant unobservable inputs Significant and fair value Item Valuation technique unobservable inputs measurement Financial assets at Market comparable Price to earnings ratio The higher the fair value through companies multiple, price to book multiple, the higher the ratio multiple, fair value other enterprise value to comprehensive operating income ratio income - multiple, enterprise equity instruments value to EBITDA without an active market multiple, discount for lack of marketability Net Asset Value Not applicable Not applicable Method

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:

September 30, 2020 Financial assets at fair value through other comprehensive income – unquoted equity instruments December 31, 2019 Financial assets at fair value through other comprehensive income – unquoted equity instruments	Input	Change	Recognized in other comprehensive income	Recognized in other comprehensive income
			Favorable change $ 133,542 $ 189,147	Unfavorable change (133,542) (189,147)
	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 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% ± 1%

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Recognized in other comprehensive income Favorable Unfavorable Input Change change change September 30, 2019 Financial assets at fair Price to earnings ratio value through other multiple, price to book ratio comprehensive income – multiple, enterprise value to unquoted equity operating income ratio instruments multiple, enterprise value to EBITDA multiple, discount for lack of marketability ± 1% $ 209,859 (209,859)

(x) Financial risk management

There were no significant changes in the Consolidated Company's financial risk management and policies as disclosed in note 6(y) of the consolidated financial statements for the year ended December 31, 2019.

(y) Capital Management

Management believes that the objectives, policies and processes of capital management of the Consolidated Company has been applied consistently with those described in the consolidated financial statements for the year ended December 31, 2019. Also, management believes that there were no significant changes in the Consolidated Company's capital management information as disclosed for the year ended December 31, 2019. Please refer to note 6(z) of the consolidated financial statements for the year ended December 31, 2019 for further details.

(z) Reconciliation of liabilities arising from financing activities

Short-term borrowings Balance as of January 1, 2020 $ 24,012,100 Change in cash from financing activities 23,621,265 Non-cash changes - Influence due to fluctuation of exchange rate (384,626) Balance as of September 30, 2020 $ 47,248,739	Short-term notes payable 15,392,795 3,000,000 1,112 - 18,393,907	Long-term notes payable 5,096,417 - 2,315 - 5,098,732	Long-term borrowings (including current portion) 18,084,450 (7,956,844) - (255,790) 9,871,816	Bonds payable (including current portion) 63,978,661 5,334,330 11,650 - 69,324,641	Lease liabilities (including current portion) 488,749 (163,264) 66,661 (8,977) 383,169	Total liabilities arising from financing activities 127,053,172 23,835,487 81,738 (649,393) 150,321,004

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Short-term borrowings Balance as of January 1, 2019 $ 21,253,381 Change in cash from financing activities 10,251,286 Non-cash changes - Influence due to fluctuation of exchange rate (6,034) Balance as of September 30, 2019 $ 31,498,633	Short-term notes payable 8,897,747 5,700,000 (3,135) - 14,594,612	Long-term notes payable 7,096,550 (2,000,000) 50 - 5,096,600	Long-term borrowings (including current portion) 12,270,805 7,312,970 - (7,068) 19,576,707	Bonds payable (including curren portion) 58,531,455 2,089,880 11,700 - 60,633,035	Lease liabilities (including current portion) 624,278 (157,717) 71,043 4,722 542,326	Total liabilities arising from financing activities 108,674,216 23,196,419 79,658 (8,380)
						131,941,913

(7) Related-party transactions:

(a) Parent company and ultimate controlling party

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

(b) Names and relationship with related parties

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

in the consolidated financial statements.
	Relationship with the
Name of related party	Consolidated Company
Formosa Petrochemical Corporation	Associates
Nanya Technology Corporation	Associates
Formosa Resources Corporation	Associates
Formosa Plastics Construction Corporation	Associates
Formosa Heavy Industries Corporation	Associates
Formosa Heavy Industries (Ningbo) Co., Ltd.	Associates
Formosa Synthetic Rubber (Hong Kong) Corporation Limited	Associates
Formosa Synthetic Rubber (Ningbo) Co., Ltd.	Associates
Formosa Industries Corporation	Associates
Formosa Group (Cayman) Limited	Associates
Formosa Utility Venture, Ltd.	Associates
Formosa Environmental Technology Corporation	Associates
Formosa Plastics Transport Corporation	Associates
FG Inc.	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

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of related party

Formosa Chemicals and Fiber Corporation Hwa Ya Power Corporation Formosa Taffeta Co., Ltd. Formosa Advanced Technologies Co., Ltd. Formosa Ha Tinh (Cayman) Ltd. Formosa Ha Tinh Steel Corporation Formosa Ha Tinh (Cayman) Limited Taiwan Branch China Man-made Fiber Corporation Mai Liao Harbor Administration Corp. Formosa Industries (Ningbo) Co., Ltd. Formosa Power (Ningbo) Limited Company Formosa Chemicals and Fiber (Ningbo) Corporation Xiamen Haicang Investment Group Co., Ltd. Formosa Plastics Marine Corporation Formosa Plastics Corporation U.S.A. FG LA LLC Ming Chi University Of Technology Formosa Industries Corporation, U.S.A. Formosa Plastics Marine Corporation Formosa Electronic (Ningbo) Co., Ltd.

Relationship with the Consolidated Company

Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties

(i) Sales to related parties

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

For the three months ended September 30 2020 2019 $ 917,829 1,009,431 2,439,824 2,925,651 $ 3,357,653 3,935,082	For the nine months ended September 30	For the nine months ended September 30
2020 $ 917,829 2,439,824 $ 3,357,653	2020 2,169,386 8,844,107 11,013,493	2019
		3,514,463 10,470,128
		13,984,591

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The receivables from related parties were as follows:

Associates and joint ventures Other related parties	September 30, 2020 $ 473,150 715,405 $ 1,188,555	December 31, 2019 683,497 1,182,504 1,866,001	September 30, 2019
			760,812 789,185
			1,549,997

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

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

(ii) Purchase from related parties

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

For the three months ended September 30 2020 2019 $ 6,567,246 8,601,055 5,860 7,901 5,142,476 6,188,307 4,578,413 4,968,159 $ 16,293,995 19,765,422	For the nine months ended September 30	For the nine months ended September 30
2020 $ 6,567,246 5,860 5,142,476 4,578,413 $ 16,293,995	2020 20,998,241 22,940 15,376,763 14,054,085 50,452,029	2019
		28,130,500 34,541 19,026,362 16,115,268
		63,306,671

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The payables to related parties were as follows:

Associates and joint ventures Formosa Petrochemical Corporation Other associates and joint ventures Other related parties Formosa Chemicals and Fiber Corporation Other related parties	September 30, 2020 $ 2,093,511 5,141 1,707,913 1,872,443 $ 5,679,008	December 31, 2019 2,862,473 4,727 1,959,178 2,160,591 6,986,969	September 30, 2019
			2,707,243 3,753 1,942,899 1,970,021
			6,623,916

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:

For the three	m	onths ended September 30, 2020 (Realized) Unrealized sales profits Unrealized sales profit at end of period 303 40,785 onths ended September 30, 2020 (Realized) Unrealized sales profits Unrealized sales profit at end of period 1,790 40,785	For the three Unrealized sales profit at beginning of period 25,769		months ended September 30, 2019 (Realized) Unrealized sales profits Unrealized sales profit at end of period 7,778 33,547 onths ended September 30, 2019 (Realized) Unrealized sales profits Unrealized sales profit at end of period (12,412) 33,547
Unrealized sales profit at beginning of period		(Realized) Unrealized sales profits 303
$ 40,482 For the nine	m			m
			For the nine
Unrealized sales profit at beginning of period		(Realized) Unrealized sales profits 1,790	Unrealized sales profit at beginning of period 45,959		(Realized) Unrealized sales profits (12,412)
$ 38,995

(iv) Construction

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

For the three months ended September 30 2020 2019 $ 118,671 922,310 - 17,988 $ 118,671 940,298	For the nine months ended September 30	For the nine months ended September 30
2020 $ 118,671 - $ 118,671	2020 366,182 - 366,182	2019
		3,059,633 17,988
		3,077,621
		(Continued

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The payables to related parties were as follows:

Formosa Heavy Industries Corporation	September 30, 2020 $ 10,770	December 31, 2019 -	September 30, 2019
			1,806

(v) Utility expenses

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

Associates and joint ventures Formosa Petrochemical Corporation Other related parties Other related parties	For the three months ended September 30 2020 2019 $ 1,682,230 2,001,997 29,149 30,126 $ 1,711,379 2,032,123	For the nine months ended September 30 2020 2019 5,009,344 5,715,733 77,234 81,989 5,086,578 5,797,722	For the nine months ended September 30 2020 2019 5,009,344 5,715,733 77,234 81,989 5,086,578 5,797,722
	2020 $ 1,682,230 29,149 $ 1,711,379		2019
			5,715,733 81,989
			5,797,722

The payables to related parties were as follows:

Associates and joint ventures Formosa Petrochemical Corporation	September 30, 2020 $ 19,414	December 31, 2019 84,083	September 30, 2019
			96,177

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(vi) Loans to related parties

The loans to related parties were as follows:

Associates and joint ventures Formosa Heavy Industries Corporation Other associates and joint ventures Other related parties Formosa Plastics Marine Corporation Other related parties	Other receivables from related parties	Other receivables from related parties	Other receivables from related parties
	September 30, 2020 - $ 171,203 4,665,036 85,541 $ 4,921,780	December 31, 2019 - 198,097 5,640,819 86,311 5,925,227	September 30, 2019 2,000,000 217,997 5,645,359 87,776 7,951,132

(vii) Property transaction

1) Acquisitions of financial assets

Associate ─ Formosa Resources Corporation Associate - FG Inc. Associate - FG Inc. Associate ─ Formosa Resources Corporation	Financial Statement Account Investments accounted for using equity method Financial Statement Account Investments accounted for using equity method Financial Statement Account Investments accounted for using equity method Investments accounted for using equity method	Transaction Shares (in thousands)	Transaction Items For the three months ended September 30, 2019 Shares of stock of Formosa Resources Corporation $ 1,570,000 Transaction Items For the nine months ended September 30, 2020 Shares of stock of FG Inc. $ 245,909 Transaction Items For the nine months ended September 30, 2019 Shares of stock of FG Inc. $ 231,570 Shares of stock of Formosa Resources Corporation 1,570,000 $ 1,801,570
		157,000 Transaction Shares (in thousands)
		- Transaction Shares (in thousands)
		- 157,000

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

2) Acquisition of property, plant, and equipment

The amount of property, plant, and equipment acquired from the related parties was as follows:

Associates and joint ventures	For the three months ended September 30, 2020 2019 $ - 898,983	For the nine months ended September 30,	For the nine months ended September 30,
	2020 $ -	2020 209,741	2019
			2,971,866

As of September 30, 2020 and 2019, there was no outstanding balance. For further description of property, plant and equipment, please refer to note 6(h).

3) Disposals of property, plant and equipment

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

For the three months ended September 30	For the three months ended September 30	For the three months ended September 30
2019
Disposal price Gain (loss) from disposal $ 422 102 For the nine months ended September 30		Gain (loss) from disposal
		102
	2019
Disposal price $ 422		Gain (loss) from disposal
		102

As of September 30, 2019, there was $422 outstanding balance. For further description of property, plant and equipment, please refer to note 6(h).

The Consolidated Company did not have such kind of transactions during the nine months ended September 30, 2020.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(viii) Borrowing from related parties

The borrowing from related parties were as follows:

Associates and joint ventures Formosa Heavy Industries Corporation	September 30, 2020 $ -	December 31, 2019 -	September 30, 2019
			98,600

(ix) Endorsements and guarantees

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

Associates and joint ventures Formosa Group (Cayman) Limited Formosa Industries Corporation Formosa Resources Corporation Other related parties Formosa Ha Tinh (Cayman) Ltd.	September 30, 2020 $ 7,281,500 - 3,131,045 19,728,380 $ 30,140,925	December 31, 2019 7,526,500 602,120 3,236,395 20,753,559 32,118,574	September 30, 2019
			7,760,500 620,840 3,337,015 21,398,790
			33,117,145

(x) Leases

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

Associates and joint ventures Nan Ya Technology Corporation	For the three months ended September 30 2020 2019 $ 65,545 65,011	For the nine months ended September 30	For the nine months ended September 30
	2020 $ 65,545	2020 196,511	2019
			193,851

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

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

The Consolidated Company rented an office building and a piece of land from Formosa Plastics Corporation. The rentals charged to related parties are determined based on the local market prices. For the three months and nine months ended September 30, 2020 and 2019, the Consolidated Company recognized the amount of $42, $130, $191 and $456 as interest expense, respectively. As of September 30, 2020, December 31 and September 30, 2019, the balance of lease liabilities amounted to $7,471, $26,385 and 32,646, respectively.

The Consolidated Company rented an office building from Formosa Chemicals and Fiber Corporation. The rentals charged to related parties are determined based on the local market prices. For the three months and nine months ended September 30, 2020 and 2019 amount to $40, $134, $191 and $473 as interest expense, respectively. As of September 30, 2020, December 31 and September 30, 2019, the balance of lease liabilities amounted to $6,765, $26,918 and $33,588, respectively.

The Consolidated Company rented an office building from Ming Chi University Of Technology. The rentals charged to related parties are determined based on the local market prices. For the three months and nine months ended September 30, 2020 and 2019 amount to $233, $244, $709 and $742 as interest expense, respectively. As of September 30, 2020, December 31 and September 30, 2019, the balance of lease liabilities amounted to 65,597, 67,947 and 68,725, respectively.

(d) Key management personnel compensation

Key management personnel compensation comprised:

Short-term employee benefits	For the three months ended September 30 2020 2019 $ 35,734 31,301	For the nine months ended September 30	For the nine months ended September 30
	2020 $ 35,734	2020 99,645	2019
			93,331

(8) Pledged assets:

The carrying values of pledged assets were as follows:

Pledged assets	Object	Usage	September 30, 2020 $ 1,001,050 7,529,494 $ 8,530,544	December 31, 2019 1,271,053 7,529,494 8,800,547	September 30, 2019 1,203,552 7,529,494
Current Financial asset at fair value through other comprehensive income`－` stock of Formosa Plastics Corporation Land (include idle land) Total	Others Bank loans	The collateral to provisional execution in litigation Bank loans
					8,733,046

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(9) Significant Commitments and contingencies:

(a) Outstanding standby letter of credit (b) Endorsements and guarantees (c) Bonding guarantees by banks (d) Letters of credit guarantees by banks	September 30, 2020 $ 1,015,686 30,140,925 35,000 32,000	December 31, 2019 September 30, 2019 2,358,537 3,282,858 32,118,574 33,117,145 29,000 29,000 24,000 24,000

(e) Formosa Industries Corporation, a Company’s investee, signed a syndicated line of credit with a group of financial institutions amounting to USD 250,000 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 42.5% and commit to monitor the operations of Formosa Industries Corporation to ensure that it completes its financial obligation.
(f) Formosa Ha Tinh (Cayman) Ltd. and Formosa Ha Tinh Steel Corporation, Company’ s investees, signed a syndicated line of credit with a group of financial institutions amounting to USD 1,485,000 thousand and USD 500,000 thousand, respectively, for its operational needs. According to the requirement of the consortium, the Company has to offer a letter of undertaking or a letter of support based on its ownership of 11.432% and commit to monitor the operations of Formosa Ha Tinh (Cayman) Ltd. and Formosa Ha Tinh Steel Corporation to ensure that they complete their financial obligation.
(g) Nan Ya Electronic Materials (Huizhou) Co., Ltd, a Company's investee, planned to apply for a fiveyear syndicated loan with a total amount of no more than CNY 1,000,000 thousand, with a group of financial institutions, among which Mega International Commercial Bank Suzhou Branch and Fubon Bank (China) Co., Ltd. act as leading banks. According to the requirement of the consortium, the Company has to offer a letter of support, and commit to monitor the operations of Nan Ya Electronic Materials (Huizhou) Co., Ltd to ensure that it completes its financial obligation.
(h) Litigation between the Company and DBTEL Incorporated

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

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(10) Losses Due to Major Disasters: None

(11) Subsequent Events: None

(12) Other:

(a) A summary of current-period employee benefits, depreciation, and amortization, by function, was as follows:

follows:
by function by item	For the three months ended September 30,
	2020				2019
	Operating Costs	Operating expenses	Non-Operating expenses	Total	Operating Costs	Operating expenses	Non-Operating expenses	Total
Employee benefit Salaries Labor and health insurance Pension expenses Remuneration of directors Others personnel expenses Depreciation expenses Amortization expenses	5,887,133 506,516 263,000 - 340,650 3,589,129 319,292	1,626,945 87,202 76,185 8,868 65,560 193,126 60,358	- - - - - 4,044 -	7,514,078 593,718 339,185 8,868 406,210 3,786,299 379,650	5,739,839 520,866 404,726 - 414,308 3,566,132 243,779	1,517,329 90,494 87,254 8,889 71,302 199,384 62,240	- - - - - 6,769 -	7,257,168 611,360 491,980 8,889 485,610 3,772,285 306,019

by function by item	For the nine months ended September 30,
	2020				2019
	Operating Costs	Operating expenses	Non-Operating expenses	Total	Operating Costs	Operating expenses	Non-Operating expenses	Total
Employee benefit Salaries Labor and health insurance Pension expenses Remuneration of directors Others personnel expenses Depreciation expenses Amortization expenses	17,148,265 1,489,153 1,007,605 - 970,549 10,602,527 1,034,549	4,736,049 263,363 225,417 27,074 179,890 581,651 182,562	- - - - - 15,404 -	21,884,314 1,752,516 1,233,022 27,074 1,150,439 11,199,582 1,217,111	16,772,614 1,593,948 1,245,979 - 1,057,757 11,064,928 756,298	4,405,451 273,368 264,087 26,086 181,151 491,075 189,155	- - - - - 24,168 -	21,178,065 1,867,316 1,510,066 26,086 1,238,908 11,580,171 945,453

(b) Impact assessment of the COVID-19:

The outbreak of COVID-19 in the first half of 2020 affected the global economy. Under the influence of the decrease in price of crude oil, the price of the Consolidated Company’s products and the cost of its raw materials also fell. Thus, the overall profitability remained the same. However, as a result of losses from affiliated companies, the Consolidated Company’s combined pre-tax profit was less for the nine months ended September 30, 2020 than for the nine months ended September 30, 2019.

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(13) Other disclosures:

(a) Information on significant transactions:
(i) Lending 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 (subsidiaries, associates and joint ventures not included): Please see attached Table 3.
(iv) Information regarding purchase or sale of securities for the period exceeding 300 million or 20% of the Company’s paid-in capital: Please see attached Table 4.
(v) Information on acquisition of real estate with purchase amount exceeding 300 million or 20% of the Company's paid-in capital: None
(vi) Information regarding receivables from disposal of real estate exceeding 300 million or 20% of the Company's paid-in capital: Please see attached Table 5.
(vii) Information regarding related-parties purchases and/or sales exceeding 100 million or 20% of the Company's paid-in capital: Please see attached Table 6.
(viii) Information regarding receivables from related-parties exceeding 100 million or 20% of the Company's paid-in capital: Please see attached Table 7.
(ix) Information regarding trading in derivative financial instruments: None.
(x) Significant transactions and business relationship: Please see attached Table 8.
(b) Information on investees: Please see attached Table 9.
(c) Information on investment in mainland China: Please see attached Table 10.
(d) Major shareholders:

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

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

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

(14) Segment information:

Segment information:
Revenue`：` Net revenue from external customers Net revenue from sales among intersegments Total revenue Reportable segment profit or loss Revenue`：` Net revenue from external customers Net revenue from sales among intersegments Total revenue Reportable segment profit or loss Revenue`：` Net revenue from external customers Net revenue from sales among intersegments Total revenue Reportable segment profit or loss Revenue`：` Net revenue from external customers Net revenue from sales among intersegments Total revenue Reportable segment profit or loss			For the three	months ended September 30, 202		0	Total 67,790,205 -
	Plastics Product $ 10,492,151 316,544 $ 10,808,695 $ 1,081,430	Plastics Material 14,236,542 1,757,679 15,994,221 (318,531)	Electronic Materials 30,937,047 5,181,202 36,118,249 3,238,054 For the three	Polyester Product 10,953,015 92,473 11,045,488 369,561 months ended	Other Departments 1,171,450 927,950 2,099,400 9,923,892 September 30, 201	Reconciliations - (8,275,848) (8,275,848) (2,510,113) 9
							67,790,205
							11,784,293

		Plastics Material 17,352,768 1,942,723 19,295,491 (1,314,063)	Electronic Materials 29,558,827 5,548,399 35,107,226 2,457,867 For the nine	Polyester Product Other Departments 13,425,749 905,462 247,676 1,120,735 13,673,425 2,026,197 279,803 8,389,535 months ended September 30, 202		Reconciliations - (9,175,465) (9,175,465) (1,655,820) 0	Total 71,885,358 -
							71,885,358
							8,891,247
							Total 193,972,294 -
		Plastics Material 45,621,691 5,211,024 50,832,715 (1,075,226)	Electronic Materials 84,428,498 14,015,410 98,443,908 9,014,382 For the nine	Polyester Product Other Departments 31,626,975 3,021,495 337,307 2,527,315 31,964,282 5,548,810 623,166 11,672,473 months ended September 30, 201		Reconciliations - (22,946,510) (22,946,510) (6,105,039) 9
							193,972,294
							16,777,857

		Plastics Material 54,912,061 6,154,292 61,066,353 (1,883,648)	Electronic Materials 82,301,925 14,491,990 96,793,915 5,276,607	Polyester Product 42,409,546 695,837 43,105,383 1,031,175	Other Departments 3,182,636 3,007,160 6,189,796 19,364,191	Reconciliations - (25,322,299) (25,322,299) (4,424,653)	Total 214,657,229 -
							214,657,229
							21,664,973

(Continued)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

September 30, 2020 December 31, 2019 September 30, 2019 September 30, 2020 December 31, 2019 September 30, 2019	Plastics Product $ 38,470,762 $ 36,222,891 $ 35,274,279 Plastics Product $ 10,724,689 $ 10,417,840 $ 10,451,521	Plastics Material 80,634,440 76,553,181 80,262,560 Plastics Material 13,708,543 19,255,892 20,981,508	Electronic Materials 147,802,962 139,519,674 137,550,875 Electronic Materials 31,326,359 29,203,048 30,452,482	Polyester Product 31,649,677 34,504,449 34,859,220 Polyester Product 9,898,270 10,063,287 10,840,168	Other Departments 433,805,161 451,894,399 460,594,548 Other Departments 166,762,289 142,497,488 145,574,000	Reconciliations (182,939,942) (184,015,915) (185,460,597) Reconciliations (10,494,329) (12,329,576) (12,746,783)	Total 549,423,060
							554,678,679
							563,080,885
							Total 221,925,821
							199,107,979
							205,552,896

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES LENDING TO OTHER PARTIES FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020 (Expressed in thousands of New Taiwan Dollars)

TABLE 1

No.	Name of Lenders	Name of Borrowers	Account Name	Related Party	Highest Balance of Financing to Other Parties during the Period	Ending Balance	Actual Usage during the Period	Range of Interest Rates during the Period.	Purposes of Fund Financing for the Borrowers (Note 1)	Transaction Amount for Business Between Two Parties (Note 2)	Reasons for Short-term Financing	Allowance for Bad Debt	Collateral	Collateral	Individual Funding Loan Limits (Note 3.4)	Maximum Limitation on Fund Financing (Note 3.4)
													Item	Value
0 0 0 0 0 0 0 0 0 1 1 2 2 4 4 5 5 5 6 6 8 8 8	The Company The Company The Company The Company The Company The Company The Company The Company The Company Nan Ya Plastics Corporation America Nan Ya Plastics Corporation America Nan Ya PCB Corporation Nan Ya PCB Corporation Wen Fung Industrial Co., Ltd. Wen Fung Industrial Co., Ltd. Nan Ya Plastics (Guangzhou) Co., Ltd. Nan Ya Plastics (Guangzhou) Co., Ltd. Nan Ya Plastics (Guangzhou) Co., Ltd. Nan Ya Plastics (Huizhou) Co., Ltd. Nan Ya Plastics (Huizhou) Co., Ltd. Nan Ya Plastics (Xiamen) Co., Ltd. Nan Ya Plastics (Xiamen) Co., Ltd. Nan Ya Plastics (Xiamen) Co., Ltd.	Formosa Plastics Group Investment Corp. (Note 6) Wellink Technology Corporation (Note 6) Nan Ya Plastics (Hong Kong) Co., Ltd. (Note 6) Nan Chung Petrochemical Corporation (Note 6) Formosa Heavy Industries Corporation Formosa Petrochemical Corporation Formosa Plastics Corporation Formosa Chemicals and Fiber Corporation Formosa Plastics Marine Corporation Nan Ya Plastics Corporation Texas (Note 6) Nan Ya Plastics Corporation U.S.A. (Note 6) The Company (Note 6) Nan Ya PCB (HK) Corporation (Note 6) Wellink Technology Corporation (Note 6) Formosa Environmental Technology Corporation PFG Fiber Glass (Kunshan) Co., Ltd. (Note 6) Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. (Note 6) Nan Ya Plastics (Ningbo) Co., Ltd. (Note 6) Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. (Note 6) Nan Ya Plastics (Ningbo) Co., Ltd. (Note 6) Xiamen Haicang Investment Group Co., Ltd. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. (Note 6) PFG Fiber Glass (Kunshan) Co., Ltd. (Note 6)	Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties	YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES	70,000 100,000 500,000 500,000 9,000,000 10,000,000 8,000,000 8,000,000 7,325,824 18,640,640 873,780 7,000,000 50,000 23,000 60,000 51,324 329,332 714,265 513,245 521,799 85,541 132,588 38,493	70,000 100,000 500,000 500,000 6,000,000 6,000,000 6,000,000 6,000,000 6,635,036 13,980,480 873,780 3,000,000 50,000 23,000 60,000 51,324 329,332 611,616 513,245 466,197 85,541 78,698 -	- - - - - - - - 4,665,036 10,485,360 728,372 3,000,000 - - 60,000 51,324 329,332 611,616 513,245 466,197 85,541 78,698 -	- - - 1.229931%~1.418142% - - - - 1.229561%~1.418142% 1.329%~2.937% 1.329%~2.937% 1.230%~1.418% - - 1.230% 3.08%~3.08% 3.32%~3.32% 3.08%~3.48% 3.24%~3.48% 3.08%~3.48% 3.08%~3.48% 3.32%~3.32% 3.24%~3.24%	2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2	- - - - - - - - - - - - - - - - - - - - - - -	Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital	- - - - - - - - - - - - - - - - - - - - - - -	‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ - - ‑ ‑ ‑ ‑ - ‑ ‑ ‑ - - ‑	- - - - - - - - - - - - - - - - - - - - - - -	78,979,460 78,979,460 78,979,460 78,979,460 78,979,460 78,979,460 78,979,460 78,979,460 78,979,460 20,316,242 20,316,242 7,754,402 7,754,402 24,174 120,868 1,334,032 1,334,032 1,334,031 1,715,825 1,715,825 552,906 552,906 552,906	157,958,920 157,958,920 157,958,920 157,958,920 157,958,920 157,958,920 157,958,920 157,958,920 157,958,920 40,632,484 40,632,484 15,508,805 15,508,805 241,735 241,735 2,668,063 2,668,063 2,668,063 3,431,652 3,431,652 691,133 691,133 691,133

No.	Name of Lenders	Name of Borrowers	Account Name	Related Party	Highest Balance of Financing to Other Parties during the Period	Ending Balance	Actual Usage during the Period	Range of Interest Rates during the Period.	Purposes of Fund Financing for the Borrowers (Note 1)	Transaction Amount for Business Between Two Parties (Note 2)	Reasons for Short-term Financing	Allowance for Bad Debt	Collateral	Collateral	Individual Funding Loan Limits (Note 3.4)	Maximum Limitation on Fund Financing (Note 3.4)
													Item	Value
8 9 9 10 10 11 11 12 12 12 13 13 13 13	Nan Ya Plastics (Xiamen) Co., Ltd. Nan Ya Plastics (Nantong) Co., Ltd. Nan Ya Plastics (Nantong) Co., Ltd. China Nantong Huafeng Co., Ltd. China Nantong Huafeng Co., Ltd. Nantong Huafu Plastics Co., Ltd. Nantong Huafu Plastics Co., Ltd. Nan Ya Electric (Nantong) Co., Ltd. Nan Ya Electric (Nantong) Co., Ltd. Nan Ya Electric (Nantong) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd.	Nan Ya Plastics (Zhengzhou) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd. (Note 6) Nan Ya Plastics (Ningbo) Co., Ltd. (Note 6) Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. (Note 6) Nan Ya Plastics (Ningbo) Co., Ltd. (Note 6) PFG Fiber Glass (Kunshan) Co., Ltd. (Note 6) Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. (Note 6) Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. (Note 6) PFG Fiber Glass (Kunshan) Co., Ltd. (Note 6) Nan Ya Plastics (Ningbo) Co., Ltd. (Note 6) Nan Ya Plastics (Ningbo) Co., Ltd. (Note 6) PFG Fiber Glass (Kunshan) Co., Ltd. (Note 6) Nan Ya PCB (Kunshan) Corporation (Note 6) Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. (Note 6)	Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties	YES YES YES YES YES YES YES YES YES YES YES YES YES YES	136,865 21,385 1,616,720 133,871 153,973 30,795 42,770 42,770 64,156 307,947 256,622 320,778 1,625,274 4,807,391	111,203 21,385 547,461 133,871 - - 42,770 42,770 42,770 59,879 256,622 21,385 1,390,037 3,780,902	111,203 21,385 547,461 133,871 - - 42,770 42,770 42,770 59,879 256,622 21,385 1,390,037 3,780,902	3.08%~3.48% 3.08%~3.08% 3.08%~3.48% 3.32%~3.48% 3.32%~3.32% 3.32%~3.32% 3.24%~3.48% 3.24%~3.24% 3.08%~3.24% 3.24%~3.48% 3.24%~3.48% 3.08%~3.48% 3.08%~3.48% 3.08%~3.48%	2 2 2 2 2 2 2 2 2 2 2 2 2 2	- - - - - - - - - - - - - -	Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital	- - - - - - - - - - - - - -	- ‑ ‑ ‑ ‑ ‑ ‑ - ‑ ‑ ‑ ‑ - ‑	- - - - - - - - - - - - - -	552,906 5,091,955 5,091,955 165,629 165,629 46,614 46,614 596,519 596,519 596,519 29,421,696 29,421,696 29,421,696 29,421,696	691,133 10,183,910 10,183,910 331,257 331,257 93,227 93,227 1,193,037 1,193,037 1,193,037 58,843,392 58,843,392 58,843,392 58,843,392

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

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

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

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

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

Note 5：Reporting currency of Nan Ya Plastics corporation, America and Nan Ya Plastics corporation USA are denominated in USD, and the exchange rate of TWD to USD as of September 30, 2020 (in average) is 29.126(29.84)：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 September 30, 2020 (in average) is 3.7341(3.8256)：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 NINE MONTHS ENDED SEPTEMBER 30, 2020 (Expressed in thousands of New Taiwan Dollars)

TABLE 2

				B=A/2		C			D=C/SE	*A=S/E1.3**
No	Endorsement Guarantee Provider	Counterparty of Guarantee and Endorsement		Limitation Amount of Guarantees and Endorsements for a Specific Enterprise	Highest Balance for Guarantee and Endorsements during the Period	Balance of Guarantees and Endorsements as of September 30, 2020	Amount Secured by Guaranteedand Endorsed Property	Amount of Endorsement /Guarantee Collateralized by Properties	Ratio of Accumulated Amounts of Guarantees and Endorsements to Net Worth of the Latest Financial Statements	Maximum Amounts for Guarantees and Endorsements	Parent Company Endorses /Guarantees to Third Parties on Behalf of Subsidiary	Subsidiary Endorses /Guarantees to Third Parties on Behalf of Parent Company	Endorsements /Guarantees to the Third Parties on Behalf of the Companies in Mainland China
		Name	Relationship with The Company (Note)
0 0 0 0 1	The Company The Company The Company The Company Nan Ya Plastics Corporation America	Formosa Industries Corporation Formosa Group (Cayman) Ltd. Formosa Ha Tinh (Cayman) Ltd. Formosa Resources Corporation Nan Ya Plastics Corporation Texas	1 6 6 6 4	9,220,826 205,346,596 205,346,596 205,346,596 26,411,115	436,890 7,281,500 20,077,996 3,131,045 99,595	- 7,281,500 19,728,380 3,131,045 -	- 7,281,500 19,728,380 3,131,045 -	- - - - -	0.00% 2.30% 6.24% 0.99% 0.00%	410,693,192 410,693,192 410,693,192 410,693,192 52,822,229	N N N N Y	N N N N N	N N N N N

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

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

(1)The Company has business relationship.
(2)The Company holds directly and indirectly more than 50% of the voting shares of the subsidiaries.
(3)In aggregate, the Company holds directly or its subsidiaries hold indirectly more than 50% of the investee.
(4)Subsidiaries in which the Company holds directly or indirectly more than 90% of the voting shares make endorsement and guarantees for each other.
(5)The Company is required to provide guarantees or endorsements for the construction project based on the construction contract.
(6)The stockholders of the Company provide guarantees or endorsements for the investee in proportion to their stockholding percentage.
(7)According to Consumer Protection Act, companies are required to provide guarantees and endorsements for joint and several libilities if take part in business of preconstruction real estate.

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES INFORMATION REGARDING SECURITIES HELD AT THE REPORTING DATE (SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES NOT INCLUDED) SEPTEMBER 30, 2020 (Expressed in thousands of New Taiwan Dollars)

TABLE 3

TABLE 3
Security Holder	Category and Name of Security	Relationship Between Issuer of Security and the Company which Holds Securities	Account Name	September 30, 2020				Notes
				Number of Shares (in thousands)	Carrying Value	Shareholding Percentage	Market Value or Net Asset Value
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company	Mega Internaitonal Private USD Money Market Formosa Plastics Corporation Formosa Chemicals and Fiber Corporation Formosa Group Ocean Marine Investment Corporation Formosa Plastics Corporation U.S.A. Ostendo Technologies Inc. Formosa Plastics Maritime Corp. Formosa International Development Co., Ltd. Mai Liao Harbor Administration Corp. Formosa Plastics Marine Corporation ASIA Pacific Investment Co. Formosa Technologies Corporation WK Technology Fund Ltd. WK Technology Fund IV Ltd. Central Leasing Corp. Chinese Television System Inc. China Investment & Development Company,Limited	- Other related parties Other related parties Other related parties Other related parties - Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties - - - - -	Financial assets valued at FVTPL －current Financial assets valued at FVTOCI－current Financial assets valued at FVTOCI－current Financial assets valued at FVTOCI－non current Financial assets valued at FVTOCI－non current Financial assets valued at FVTOCI－non current Financial assets valued at FVTOCI－non current Financial assets valued at FVTOCI－non current Financial assets valued at FVTOCI－non current Financial assets valued at FVTOCI－non current Financial assets valued at FVTOCI－non current Financial assets valued at FVTOCI－non current Financial assets valued at FVTOCI－non current Financial assets valued at FVTOCI－non current Financial assets valued at FVTOCI－non current Financial assets valued at FVTOCI－non current Financial assets valued at FVTOCI－non current	12,479 294,793 140,520 3 2 150 352 18,255 39,562 2,429 63,717 2,925 326 460 1,779 1,769 1,287	3,963,809 23,170,738 9,513,180 4,055,619 412,572 - 225,959 240,342 831,320 298,729 1,855,714 95,929 5,614 3,961 - 30,660 12,757	- 4.63% 2.40% 19.00% 0.51% 0.12% 18.00% 18.00% 17.98% 15.00% 14.99% 12.50% 1.63% 1.08% 1.07% 1.04% 0.80%	3,963,809 23,170,738 9,513,180 4,055,619 412,572 - 225,959 240,342 831,320 298,729 1,855,714 95,929 5,614 3,961 - 30,660 12,757	Note 1

Security Holder	Category and Name of Security	Relationship Between Issuer of Security and the Company which Holds Securities	Account Name	September 30, 2020	September 30, 2020	September 30, 2020	September 30, 2020	Notes
				Number of Shares (in thousands)	Carrying Value	Shareholding Percentage	Market Value or Net Asset Value
The Company The Company The Company Nan Ya Plastics Corporation America Nan Ya Plastics Corporation America Nan Ya Plastics Corporation America Nan Ya Plastics Corporation America Nan Ya Plastics (Hong Kong) Co., Ltd. Nan Ya Plastics (Hong Kong) Co., Ltd. Formosa Plastics Group Investment Corp. Formosa Plastics Group Investment Corp. Nan Ya International (Cayman) Limited	Taiwan Aerospace Corp. Guang Yuan Securities Investment Consulting Corporation Mega Growth Capital Venture Double Oak (Bonds) Sutton (Bonds) American Overseas Reinsurance Co., Ltd. (Preferred Stock) MBIA Insurance Corp. (Preferred Stock) Hua Ya (Dong Ying) Plastics Corp. Hua Ya (Wu Hu) Plastics Corp. WK Technology Fund Ltd. WK Technology Fund IV Ltd. Formosa Ha Tinh (Cayman) Ltd.	- - - - - - - - - - - Other related parties	Financial assets valued at FVTOCI－non current Financial assets valued at FVTOCI－non current Financial assets valued at FVTOCI－non current Financial assets valued at FVTPL －non current Financial assets valued at FVTPL －non current Financial assets valued at FVTPL －non current Financial assets valued at FVTPL －non current Financial assets valued at FVTOCI－non current Financial assets valued at FVTOCI－non current Financial assets valued at FVTOCI－non current Financial assets valued at FVTOCI－non current Financial assets valued at FVTOCI－non current	1,070 3,750 2,500 - - - - - - 1,935 658 621,178	12,846 21,225 20,130 174,159 319,831 103,292 200,598 284,720 362,271 8,327 13,204 7,779,748	0.79% 3.91% 1.97% - - - - 15.00% 15.00% 2.42% 3.60% 11.43%	12,846 21,225 20,130 174,159 319,831 103,292 200,598 284,720 362,271 8,327 13,204 7,779,748

Note 1 ： The Company pledged its shares of Formosa Plastics Corporation of 12,736 thousand common shares amounting to $1,001,050.

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

INFORMATION REGARDING PURCHASE OR SALE OF SECURITIES FOR THE PERIOD EXCEEDING 300 MILLION OR 20% OF THE COMPANY'S PAID-IN CAPITAL FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

(Expressed in thousands of New Taiwan Dollars)

TABLE 4

TABLE 4
Company Name	Category and Name of Security	Financial Statement Account	Counter-party	Relationship	Beginning Balance		Purchases		Sales				Ending Balance
					Shares (in thousands)	Amount	Shares (in thousands)	Amount	Shares (in thousands)	Price	Carrying Value	Gain/Loss on Disposal	Shares (in thousands)	Amount
Nan Ya PCB Corporation Nan Ya PCB (Hong Kong) Corporation Nan Ya Plastics Corporation America The Company Nan Ya Plastics (Hong Kong) Co., Ltd.	Nan Ya PCB (Hong Kong) Corporation Nan Ya PCB (Kunshan) Corporation Nan Ya Plastics Corporation Texas Nan Ya Plastics (Hong Kong) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd.	Investments accounted for using equity method Investments accounted for using equity method Investments accounted for using equity method Investments accounted for using equity method Investments accounted for using equity method	Nan Ya PCB (Hong Kong) Corporation Nan Ya PCB (Kunshan) Corporation Nan Ya Plastics Corporation Texas Nan Ya Plastics (Hong Kong) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd.	Investments accounted for using equity method Investments accounted for using equity method Investments accounted for using equity method Investments accounted for using equity method Investments accounted for using equity method	1,223,820 - 3 953,253 -	9,603,122 9,589,396 9,611,580 85,283,330 1,886,579	374,400 - - 23,790 -	1,456,560 1,456,560 4,660,160 892,371 892,371					1,598,220 - 3 977,043 -	11,172,918 (Note 1.2) 11,159,520 (Note 1.2) 12,666,875 (Note1.2) 89,608,799 (Note1.2) 3,218,412 (Note1.2)

Note 1 ： End of period amount includes investment income and transaction adjustment under equity method and the effect of exchange changes. Note 2 ： This transaction has already been written off during the consolidation process.

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

INFORMATION REGARDING RECEIVABLES FROM DISPOSAL OF REAL ESTATE EXCEEDING 300 MILLION OR 20% OF THE COMPANY'S PAID-IN CAPITAL FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020 (Expressed in thousands of New Taiwan Dollars)

TABLE 5

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

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES INFORMATION REGARDING RELATED-PARTIES PURCHASES AND/OR SALES EXCEEDING 100 MILLION OR 20% OF THE COMPANY'S PAID-IN-CAPITAL FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020 (Expressed in thousands of New Taiwan Dollars)

TABLE 6

TABLE 6
Company Name	Related Party	Relationship	Transaction Details				Abnormal Transaction		Notes/Accounts (Payable) Receivable		Notes
			Purchases / (Sales)	Amount	% to total purchase/(sales)	Credit Period	Unit Price	Payment Term	Ending Balance	% to Total
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company Nan Ya PCB Corporation Nan Ya PCB Corporation Nan Ya PCB Corporation Nan Ya PCB (Kunshan) Corporation Nan Ya PCB (Kunshan) Corporation Nan Ya PCB (Kunshan) Corporation Nan Chung Petrochemical Corporation Nan Chung Petrochemical Corporation Nan Chung Petrochemical Corporation	Formosa Plastics Corporation Formosa Chemicals and Fiber Corporation Nan Ya PCB Corporation Formosa Petrochemical Corporation Nanya Technology Corporation Formosa Taffeta Co., Ltd. Nan Ya Plastics Corporation U.S.A. Nan Ya Plastics Corporation America Nan Ya Electronic Materials (Huizhou) Co., Ltd. Nan Ya Plastics (Nantong) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Formosa Industries Corporation Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd. Nan Chung Petrochemical Corporation Nan Ya Plastics (Guangzhou) Co., Ltd. Formosa Plastics Corporation Formosa Chemicals and Fiber Corporation Formosa Petrochemical Corporation PFG Fiber Glass Corporation Nan Chung Petrochemical Corporation The Company Nan Ya PCB (Kunshan) Corporation Formosa Advanced Technologies Co., LTD. Nan Ya PCB Corporation Nan Ya Electronic Materials (Kunshan) Co., Ltd. Formosa Advanced Technologies Co., LTD. The Company China Man-made Fiber Corporation Formosa Petrochemical Corporation	Other related parties Other related parties Subsidiaries Associates Associates Other related parties Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Associates Subsidiaries Subsidiaries Subsidiaries Subsidiaries Other related parties Other related parties Associates Subsidiaries Subsidiaries Parent Subsidiaries Associates Subsidiaries Same chairman Associates Parent Other related parties Associates	(Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) Purchases Purchases Purchases Purchases Purchases Purchases Purchases (Sales) (Sales) Purchases (Sales) (Sales) (Sales) Purchases	(855,311) (4,631,940) (811,593) (771,091) (143,127) (442,010) (407,738) (262,068) (2,851,707) (603,069) (4,188,767) (849,928) (111,468) (284,309) (151,764) (107,115) 7,933,347 15,038,401 18,023,909 1,974,353 2,061,138 811,593 6,139,141 (207,123) (6,139,141) 902,005 (136,040) (2,061,138) (2,053,199) 2,876,024	(0.84)% (4.55)% (0.80)% (0.76)% (0.14)% (0.43)% (0.40)% (0.26)% (2.80)% (0.59)% (4.11)% (0.83)% (0.11)% (0.28)% (0.15)% (0.11)% 11.65% 22.09% 26.48% 2.90% 3.03% 6.10% 46.15% (0.87)% (61.93)% 15.96% (1.37)% (49.94)% (49.75)% 94.75%	30 days 30 days 30 days 30 days 30 days 30 days O/A105 days O/A105 days O/A180 days O/A150 days O/A150 days O/A150 days O/A150 days O/A150 days 30 days O/A150 days 30 days 30 days 30 days 30 days 30 days 30 days 30 days 70 days 30 days 60 days 70 days 30 days 15th day of next month 15th day of next month	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑	82,582 475,311 102,860 145,435 35,123 39,550 198,782 24,189 1,542,231 385,959 1,578,471 163,007 27,995 0 0 29,710 (914,524) (1,659,770) (2,064,904) (193,914) (8,175) (102,860) (727,943) 55,328 727,943 (106,909) 39,975 8,175 0 (19,497)	0.51% 2.95% 0.64% 0.90% 0.22% 0.25% 1.23% 0.15% 9.56% 2.39% 9.79% 1.01% 0.17% 0.00% 0.00% 0.18% (8.91)% (16.16)% (20.11)% (1.89)% (0.08)% (4.38)% (31.00)% 0.66% 36.77% (6.55)% 2.02% 100.00% 0.00% (99.88)%	Note Note Note Note Note Note Note Note Note Note Note Note Note Note Note Note Note

Company Name	Related Party	Relationship	Transaction Details	Transaction Details	Transaction Details	Transaction Details	Abnormal Transaction	Abnormal Transaction	Notes/Accounts (Payable) Receivable	Notes/Accounts (Payable) Receivable	Notes
			Purchases / (Sales)	Amount	% to total purchase/(sales)	Credit Period	Unit Price	Payment Term	Ending Balance	% to Total
Nan Chung Petrochemical Corporation PFG Fiber Glass Corporation PFG Fiber Glass Corporation Nan Ya Plastics Corporation U.S.A. Nan Ya Plastics Corporation U.S.A. Nan Ya Plastics Corporation U.S.A. Nan Ya Plastics Corporation America Nan Ya Plastics Corporation America Nan Ya Plastics Corporation America Nan Ya Plastics Corporation America PFG Fiber Glass (Kunshan) Co., Ltd. PFG Fiber Glass (Kunshan) Co., Ltd. Nan Ya Plastics (Xiamen) Co., Ltd. Nan Ya Plastics (Guangzhou) Co., Ltd. Nan Ya Plastics (Guangzhou) Co., Ltd. Nan Ya Plastics (Guangzhou) Co., Ltd. Nan Ya Electronic Materials (Huizhou) Co., Ltd. Nan Ya Electronic Materials (Huizhou) Co., Ltd. Nan Ya Plastics (Nantong) Co., Ltd. Nan Ya Plastics (Nantong) Co., Ltd. Nan Ya Plastics (Nantong) Co., Ltd. Nan Ya Plastics (Nantong) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd.	The Company The Company Formosa Chemicals and Fiber Corporation Formosa Plastics Corporation U.S.A. The Company Nan Ya Plastics Corporation America Formosa Plastics Corporation U.S.A. Nan Ya Plastics Corporation U.S.A. Formosa Plastics Corporation U.S.A. The Company Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Formosa Industries (Ningbo) Co., Ltd. Formosa Plastics Corporation Formosa Industries (Ningbo) Co., Ltd. The Company The Company Nan Ya Electronic Materials (Kunshan) Co., Ltd. Formosa Plastics Corporation The Company Formosa Industries (Ningbo) Co., Ltd. Nanya Kyowa Plastics (Nantong) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Formosa Chemicals and Fiber (Ningbo) Corporation The Company Nan Ya Electronic Materials (Huizhou) Co., Ltd. Nan Ya PCB (Kunshan) Corporation PFG Fiber Glass (Kunshan) Co., Ltd. The Company Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. PFG Fiber Glass (Kunshan) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd. The Company Nan Ya Electronic Materials (Kunshan) Co., Ltd.	Parent Parent Other related parties Other related parties Parent Subsidiaries Other related parties Subsidiaries Other related parties Parent Subsidiaries Subsidiaries Other related parties Other related parties Other related parties Parent Parent Subsidiaries Other related parties Parent Other related parties Joint venture Subsidiaries Other related parties Parent Subsidiaries Same chairman Subsidiaries Parent Subsidiaries Subsidiaries Subsidiaries Parent Subsidiaries	Purchases (Sales) Purchases Purchases Purchases Purchases (Sales) (Sales) Purchases Purchases (Sales) Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases (Sales) (Sales) Purchases Purchases (Sales) (Sales) (Sales) Purchases Purchases Purchases Purchases Purchases (Sales)	151,764 (1,974,353) 326,875 425,121 407,738 130,091 (437,038) (130,091) 120,221 262,068 (1,884,453) 180,836 188,672 390,244 202,621 107,115 2,851,707 2,477,258 306,293 603,069 396,186 (255,712) (2,176,853) 3,888,970 284,309 (2,477,258) (902,005) (180,836) 4,188,767 180,581 1,884,453 2,176,853 111,468 (180,581)	5.00% (76.98)% 21.46% 23.98% 23.00% 7.34% (2.31)% (0.69)% 0.71% 1.54% (83.94)% 17.95% 23.25% 31.07% 16.13% 8.53% 48.64% 42.25% 9.26% 18.22% 11.97% (7.16)% (30.89)% 71.36% 5.22% (7.50)% (2.73)% (0.55)% 16.66% 0.72% 7.49% 8.66% 9.22% (10.15)%	30 days 30 days 30 days payment within one h O/A 105 days payment within one h payment within one h payment within one h payment within one h O/A 105 days 60 days 60 days 60 days O/A 150 days 60 days O/A 150 days O/A 180 days 180 days O/A 150 days O/A 150 days 60 days 60 days 60 days 60 days O/A 150 days 180 days 60 days 60 days O/A 150 days 60 days 60 days 60 days O/A 150 days 60 days	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ - ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑	0 193,914 (40,616) (39,757) (198,782) (17,463) 0 17,463 (14,129) (24,189) 257,162 (21,003) (44,945) (121,946) (59,594) (29,710) (1,542,231) (2,017,036) (111,498) (385,959) (45,244) 99,277 85,392 (482,158) 0 2,017,036 106,909 21,003 (1,578,471) (22,200) (257,162) (85,392) (27,995) 22,200	0.00% 78.58% (15.93)% (12.36)% (61.80)% (5.43)% 0.00% 0.50% (6.69)% (11.46)% 66.26% (9.51)% (44.54)% (49.45)% (24.17)% (12.05)% (42.82)% (56.01)% (11.32)% (39.19)% (4.59)% 6.58% 15.09% (93.84)% 0.00% 12.91% 0.68% 0.13% (54.92)% (0.77)% (8.95)% (2.97)% (26.98)% 18.32%	Note Note Note Note Note Note Note Note Note Note Note Note Note Note Note Note Note Note Note Note Note Note Note Note

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

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

INFORMATION REGARDING RECEIVABLES FROM RELATED-PARTIES EXCEEDING 100 MILLION OR 20% OF THE COMPANY'S PAID-IN-CAPITAL SEPTEMBER 30, 2020

(Expressed in thousands of New Taiwan Dollars)

TABLE 7

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 The Company The Company The Company The Company The Company The Company The Company Nan Ya PCB (Kunshan) Corporation PFG Fiber Glass Corporation PFG Fiber Glass (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. The Company Nan Ya Plastics Corporation America Nan Ya Plastics Corporation America Nan Ya PCB Corporation Nan Ya Plastics (Nantong) Co., Ltd.	Formosa Chemicals and Fiber Corporation Nan Ya PCB Corporation Formosa Petrochemical Corporation Nan Ya Plastics Corporation U.S.A.(Note 1) Nan Ya Electronic Materials (Huizhou) Co., Ltd.(Note 1) Nan Ya Plastics (Nantong) Co., Ltd. (Note 1) Nan Ya Electronic Materials (Kunshan) Co., Ltd.(Note 1) Formosa Industries Corporation Nan Ya PCB Corporation(Note 1) The Company(Note 1) Nan Ya Electronic Materials (Kunshan) Co., Ltd.(Note 1) Nan Ya Electronic Materials (Huizhou) Co., Ltd.(Note 1) Nan Ya PCB (Kunshan) Corporation(Note1) Formosa Plastics Marine Corporation Nan Ya Plastics Corporation Texas(Note 1) Nan Ya Plastics Corporation U.S.A.(Note 1) The Company(Note 1) Nan Ya Plastics (Ningbo) Co., Ltd.(Note 1)	Other related parties Subsidiaries Assosiates Subsidiaries Subsidiaries Subsidiaries Subsidiaries Assosiates Subsidiaries Parent Subsidiaries Subsidiaries Same chairman Other related parties Subsidiaries Subsidiaries Parent Subsidiaries	Receivables from related parties： 475,311 Receivables from related parties： 102,860 Receivables from related parties： 145,435 Receivables from related parties： 198,782 Receivables from related parties： 1,542,231 Receivables from related parties： 385,959 Receivables from related parties： 1,578,471 Receivables from related parties： 163,007 Receivables from related parties： 727,943 Receivables from related parties： 193,914 Receivables from related parties： 257,162 Receivables from related parties： 2,017,036 Receivables from related parties： 106,909 Other receivables from related parties： 4,665,036 Other receivables from related parties： 10,485,360 Other receivables from related parties： 728,372 Other receivables from related parties： 3,000,000 Other receivables from related parties： 547,461	11.15 11.61 8.82 2.27 2.00 2.37 4.11 5.38 9.59 12.09 9.54 1.49 10.13 note note note note note	‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑	‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑	310,033 102,860 50,201 46,584 410,384 69,697 531,309 134,165 727,943 193,914 257,162 221,458 106,909 ‑ ‑ ‑ ‑ ‑	‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑

Company Name	Related Party	Relationship	Ending Balance	Turnover Rate	Overdue	Overdue	Amounts Received in Subsequent Periods	Allowance for Bad Debts
					Amount	Action Taken
Nan Ya Plastics (Huizhou) Co., Ltd. Nan Ya Plastics (Huizhou) Co., Ltd. Nan Ya Plastics (Xiamen) Co., Ltd. Nan Ya Plastics (Guangzhou) Co., Ltd. Nan Ya Plastics (Guangzhou) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. China Nantong Huafeng Co., Ltd.	Nan Ya Plastics (Ningbo) Co., Ltd.(Note 1) Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd.(Note 1) Nan Ya Plastics (Zhengzhou) Co., Ltd.(Note 1) Nan Ya Plastics (Ningbo) Co., Ltd.(Note 1) Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd.(Note 1) Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd.(Note 1) Nan Ya PCB (Kunshan) Corporation(Note 1) Nan Ya Plastics (Ningbo) Co., Ltd.(Note 1) Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd.(Note 1)	Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries	Other receivables from related parties： 466,197 Other receivables from related parties： 513,245 Other receivables from related parties： 111,203 Other receivables from related parties： 611,616 Other receivables from related parties： 329,332 Other receivables from related parties： 3,780,902 Other receivables from related parties： 1,390,037 Other receivables from related parties： 256,622 Other receivables from related parties： 133,871	note note note note note note note note 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 FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020 (Expressed in thousands of New Taiwan Dollars)

TABLE 8

No. (Note 1)	Company Name	Counter-party	Relationship (Note 2)	Intercompany Transactions	Intercompany Transactions	Intercompany Transactions	Intercompany Transactions
				Financial Statement Item	Amount	Terms	Percentage of Consolidated Total Gross Sales or Total Assets
0 0 0 0 0 0 0 1 2 3 4 5 5 6 6 6 7 0 0 0	The Company The Company The Company The Company The Company The Company The Company Nan Chung Petrochemical Corporation Wen Fung Industrials Co., Ltd. and its subsidiaries PFG Fiber Glass Corporation Nan Ya Plastics Corporation U.S.A. Nan Ya Plastics Corporation America Nan Ya Plastics Corporation America Nan Ya Plastics (Hong Kong) Co., Ltd. and its subsidiaries Nan Ya Plastics (Hong Kong) Co., Ltd. and its subsidiaries Nan Ya Plastics (Hong Kong) Co., Ltd. and its subsidiaries PFG Fiber Glass (Hong Kong) Corporation Limited and its subsidiaries The Company The Company The Company	Nan Ya PCB Corporation and its subsidiaries Nan Chung Petrochemical Corporation PFG Fiber Glass Corporation Nan Ya Plastics Corporation U.S.A Nan Ya Plastics Corporation America Nan Ya Plastics (Hong Kong) Co., Ltd. and its subsidiaries PFG Fiber Glass (Hong Kong) Corporation Limited and its subsidiaries The Company Nan Ya PCB Corporation and its subsidiaries The Company The Company Nan Ya Plastics Corporation U.S.A The Company The Company Nan Ya PCB Corporation and its subsidiaries PFG Fiber Glass (Hong Kong) Corporation Limited and its subsidiaries Nan Ya Plastics (Hong Kong) Co., Ltd. and its subsidiaries Nan Ya PCB Corporation and its subsidiaries Nan Ya Plastics Corporation U.S.A Nan Ya Plastics (Hong Kong) Co., Ltd. and its subsidiaries	1 1 1 1 1 1 1 2 3 2 2 3 2 2 3 3 3 1 1 1	Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Accounts receivable Accounts receivable Accounts receivable	835,099 151,764 42,723 407,738 262,068 8,281,075 15,060 2,061,138 121,688 1,974,353 33,481 130,091 49,581 102,184 1,259,238 196,145 1,885,883 105,338 198,782 3,590,373	30-150 days 30 days 30 days O/A 105 days O/A 105 days O/A 150-180 days O/A 150 days 30 days 30 days 30 days O/A 105 days payment within one month O/A 105 days 60 days 60 days 60 days 60 days 30-150 days O/A 105 days O/A 150-180 days	0.43% 0.08% 0.02% 0.21% 0.14% 4.27% 0.01% 1.06% 0.06% 1.02% 0.02% 0.07% 0.03% 0.05% 0.65% 0.10% 0.97% 0.02% 0.04% 0.65%

No. (Note 1)	Company Name	Counter-party	Relationship (Note 2)	Intercompany Transactions	Intercompany Transactions	Intercompany Transactions	Intercompany Transactions
				Financial Statement Item	Amount	Terms	Percentage of Consolidated Total Gross Sales or Total Assets
3 6 6 7 0	PFG Fiber Glass Corporation Nan Ya Plastics (Hong Kong) Co., Ltd. and its subsidiaries Nan Ya Plastics (Hong Kong) Co., Ltd. and its subsidiaries PFG Fiber Glass (Hong Kong) Corporation Limited and its subsidiaries The Company	The Company The Company Nan Ya PCB Corporation and its subsidiaries Nan Ya Plastics (Hong Kong) Co., Ltd. and its subsidiaries Nan Ya PCB Corporation and its subsidiaries	2 3 3 3 1	Accounts receivable Accounts receivable Accounts receivable Accounts receivable Rent revenue	193,914 33,528 157,738 257,701 155,429	30 days O/A 150-180 days 60 days 60 days 30-150 days	0.04% 0.01% 0.03% 0.05% 0.08%

Note 1: The appointed numbers represent:

0 refers to the Parent Company.
Subsidiaries are numbered and organized in a ascending chronological order.

Note 2: Transactions are categorized as follows:

Parent company to subsidiary.
Subsidiary to parent company.
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 NINE MONTHS ENDED SEPTEMBER 30, 2020 (Expressed in thousands of New Taiwan Dollars)

TABLE 9

TABLE 9
Investor Company	Investee Company	Location	Major Operations	Original Investment Amount		Balance as of September 30, 2020			Net Income of Investee	Investment Income (Loss) Recognized by the Investor Company	Notes
				September 30, 2020	December 31, 2019	Shares (in thousands)	%	Carrying Value
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company	Nan Ya Plastics Corporation U.S.A. (Note) Nan Ya Plastics Corporation America (Note) Nan Ya Plastics (Hong Kong) Co., Ltd. (Note 1) Superior World Wide Trading Co., Ltd. (Note 1) Formosa Synthetic Rubber (Hong Kong) Corporation Limited (Note) PFG Fiber Glass (Hong Kong) Corporation Limited (Note 1) Formosa Industries Corporation (Note 2) Nan Ya PCB Corporation Formosa Plastics Group Investment Corp. Nanya Technology Corporation Formosa Environmental Technology Corporation Formosa Petrochemical Corporation PFG Fiber Glass Corporation Nan Chung Petrochemical Corporation Wen Fung Industrial Co., Ltd.	U.S.A. U.S.A. Hong Kong Hong Kong Hong Kong Hong Kong Vietnam Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan	production of plastic products production of plastic, polyester and chemical plastics, electronic products trading, and investment plastics trading and investment production of synthetic rubber products investment chemical fiber, dyeing and finishing and electric power production of printed circuit board investment semiconductor production and marketing environmental protection production of chemical products production of glass fiber production of chemical products production of electronic components	313,920 7,853,605 40,059,044 33,677 4,213,858 4,495,987 8,435,875 4,480,417 76,859 52,438,472 672,370 24,647,480 2,648,131 1,000,002 214,236	313,920 7,853,605 39,166,673 33,677 4,162,010 4,495,987 8,435,875 4,480,417 76,859 52,438,472 672,370 24,647,480 2,648,131 1,000,002 214,236	2 60 977,043 14 138,333 76 - 432,745 5,000 907,304 46,257 2,201,306 100,000 100,000 18,738	100.00% 100.00% 100.00% 100.00% 33.33% 100.00% 42.50% 66.97% 100.00% 29.52% 26.99% 23.11% 100.00% 50.00% 100.00%	1,876,302 40,632,484 89,608,799 781,673 2,111,270 7,587,328 7,924,194 20,728,903 76,671 45,284,914 251,328 64,527,731 4,017,614 1,166,564 253,123	76,747 412,130 3,956,987 29,458 (363,983) (66,939) 71,704 2,342,542 161 6,761,892 4,027 (2,799,240) 110,092 29,974 2,801	76,747 412,130 3,956,987 29,458 (118,688) (81,937) 30,474 1,570,129 161 2,002,324 1,087 (646,983) (19,636) 15,201 2,836	Note 3.4 Note 3.4 Note 3.4 Note 3.4 Note 3 Note 3.4 Note 3 Note 3.4 Note 3.4 Note 3 Note 3 Note 3 Note 3.4 Note 3.4 Note 3.4

Investor Company	Investee Company	Location	Major Operations	Original Investment Amount	Original Investment Amount	Balance as of September 30, 2020	Balance as of September 30, 2020	Balance as of September 30, 2020	Net Income of Investee	Investment Income (Loss) Recognized by the Investor Company	Notes
				September 30, 2020	December 31, 2019	Shares (in thousands)	%	Carrying Value
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company Nan Ya Plastics Corporation America (Note) Nan Ya Plastics Corporation America (Note) Nan Ya Plastics Corporation Texas (Note)	Formosa Automobile Sales Corporation Ya Tai Development Corporation Formosa Heavy Industries Corporation Formosa Fairway Corporation Formosa Plastics Transport Corporation Hwa Ya Technology Park Management Consulting Corporation Yi Jih Development Corporation Mai Liao Power Corporation Nan YA Photonics Inc. Formosa Synthetic Rubber Corporation Formosa Resources Corporation Formosa Group (Cayman) Limited (Note) Formosa Plastics Construction Corporation Nan Ya International (Cayman) Limited (Note) FG Inc. (Note) Formosa Utility Venture, Ltd.(Note) Nan Ya Plastics Corporation Texas (Note) Formosa Olefins, L.L.C. (Note)	Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Cayman Islands Taiwan Cayman Islands U.S.A. U.S.A. U.S.A. U.S.A.	production of automobile development industry machinery industry transportation business transportation business service business construction business electricity generation business LED equipment manufacturer production of synthetic rubber products mining industry investment construction business investment investment electricity generation and trading production of chemical products chemical business	945,028 53,941 2,497,721 33,340 67,254 359 58,000 5,985,465 761,820 - 7,415,940 377 100,000 18,784,619 1,137,655 233,008 14,271,740 2,003,141	945,028 53,941 2,497,721 33,340 67,254 359 58,000 5,985,465 - 446,000 7,415,940 377 100,000 18,784,619 891,746 233,008 9,611,580 2,003,141	27,046 1,304 651,706 4,699 6,566 34 5,800 601,727 10,609 - 741,594 13 10,000 52 2 - 3 -	45.00% 44.96% 32.91% 33.34% 33.33% 34.00% 29.22% 24.94% 23.02% - 25.00% 25.00% 33.33% 100.00% 10.00% 12.10% 100.00% 21.00%	262,079 18,107 6,808,708 53,218 1,148,348 2,615 64,798 11,701,125 274,191 - 6,330,101 660,685 70,115 7,779,986 1,063,821 2,377,916 12,666,875 1,636,476	179,482 194 188,476 (20,620) 270,048 26 433 6,534,746 55,960 (686,042) 324 116,320 (16,218) - (163,162) 307,056 (286,892) 1,495,281	80,769 87 62,029 (6,874) 90,017 9 126 1,629,887 4,160 (228,681) 81 29,080 (5,406) - (16,316) 38,012 (286,892) 314,009	Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3.4 Note 3 Note 3 Note 3.4 Note 3

Investor Company	Investee Company	Location	Major Operations	Original Investment Amount	Original Investment Amount	Balance as of September 30, 2020	Balance as of September 30, 2020	Balance as of September 30, 2020	Net Income of Investee	Investment Income (Loss) Recognized by the Investor Company	Notes
				September 30, 2020	December 31, 2019	Shares (in thousands)	%	Carrying Value
Nan Ya PCB Corporation Nan Ya PCB Corporation Nan Ya PCB Corporation Nan Ya PCB (Hong Kong) Corporation Wen Fung Industrial Co., Ltd. Superior World Wide Trading Co., Ltd. (Note 1)	Nan Ya PCB (Hong Kong) Corporation Nan Ya PCB (U.S.A.) Corporation Formosa Advanced Technologies Co.,LTD. Nan Ya PCB (Kunshan) Corporation Wellink Technology Corporation P.T.Indonesia Nanya Indah Plastics Co.	Hong Kong U.S.A. Taiwan China Taiwan Indonesia	production of electronic products and investment retargeting IC packaging, testing and modules production of printed circuit board production of electronic components production of plastic products	6,477,460 3,479 472,968 6,474,281 212,017 117,871	5,020,900 3,479 472,968 5,017,721 212,017 117,871	1,598,220 1,000 13,267 - 12,739 5	100.00% 100.00% 3.00% 100.00% 100.00% 50.00%	11,172,918 14,676 459,401 11,159,520 137,967 273,835	208,819 1,418 1,086,685 208,698 2,214 47,489	208,819 1,418 32,298 208,698 2,214 23,745	Note 3.4 Note 3.4 Note 3 Note 3.4 Note 3.4 Note 3

Note ： The reporting currency of Nan Ya Plastics Corporation U.S.A, Nan Ya Plastics Corporation America, Formosa Synthetic Rubber (Hong Kong) Corporation Limited, Formosa Group (Cayman)

Limited, Nan Ya International (Cayman) Limited, FG Inc., Formosa Utility Venture, Ltd., Nan Ya Plastics Corporation Texas, and Formosa Olefins, L.L.C is denominated in USD,

and the exchange rate of TWD to USD as of September 30, 2020 (in average) is 29.126(29.84)：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 September 30, 2020 (in average) is 3.7341(3.8256)：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 September 30, 2020 (in average) is 0.001256(0.001283)：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 INFORMATON ON INVESTMENT IN MAINLAND CHINA FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020 (Expressed in thousands of New Taiwan Dollars)

TABLE 10

(a) Information regarding investments in Mainland China :

Name of the PRC Investee Company	Primary Business Scope	Amount of Paid-in Capital	Method of Investment	Investment Transferred from Taiwan as of January 1, 2020	For The Nine Months Ended September 30, 2020	For The Nine Months Ended September 30, 2020	Investment Transferred from Taiwan as of September 30, 2020	Current Income of Investees	Direct and Indirect Shareholding Percentage by the Company	Investment Gain (Loss)	Carrying Value of Investment as of September 30, 2020	Accumulated Inward Remittance of Earnings as of September 30, 2020
					Outflow	Inflow
Nan Ya Plastics (Guangzhou) Co., Ltd.(Note1) Nan Ya Plastics (Xiamen) Co., Ltd.(Note1) Nan Ya Plastics (Huizhou) Co., Ltd.(Note1) Nan Ya Electronic Materials (Huizhou) Co., Ltd.(Note1) Nan Ya Trading (Huizhou) Co., Ltd.(Note1) Nan Ya Plastics (Nantong) Co., Ltd.(Note1) China Nantong Huafeng Co., Ltd.(Note1) Nantong Huafu Plastics Co., Ltd.(Note1) Nan Ya Electric (Nantong) Co.,Ltd.(Note1) Nanya Kyowa Plastics (Nantong) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd.(Note1) Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd.(Note1) Nan Ya Plastics (Zhengzhou) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd.(Note1) PFG Fiber Glass (Kunshan) Co., Ltd.(Note1)	production of polyester products production of plastic products production of polyester products production of copper clad laminate trading sale of plastic products, steam and electricity trading trading production of switch gear and control panel interior decorating business production of copper clad laminate, polyester products, steam and electricity, copper clad, epoxy production of polyester products production of plastic products production of BPA and plasticizer production of glass fiber	1,998,681 775,457 2,527,462 5,489,509 32,267 4,540,736 93,004 79,111 339,275 200,988 15,159,216 7,035,085 261,737 3,081,205 4,668,263	Indirect investment Indirect investment Indirect investment Indirect investment Indirect investment Indirect investment Indirect investment Indirect investment Indirect investment Indirect investment Indirect investment Indirect investment Indirect investment Indirect investment Indirect investment	1,998,681 738,752 2,418,397 5,489,509 32,267 3,008,918 99,636 71,503 339,275 100,494 15,159,216 7,035,085 130,869 1,989,308 4,487,409	- - - - - - - - - - - - - 892,371 -	- - - - - - - - - - - - - - -	1,998,681 738,752 2,418,397 5,489,509 32,267 3,008,918 99,636 71,503 339,275 100,494 15,159,216 7,035,085 130,869 2,881,679 4,487,409	54,718 79,578 88,701 334,028 345 188,137 3,784 1,732 46,877 76,406 2,970,354 (355,996) 35,127 456,186 (74,201)	100.00% 85.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 50.00% 100.00% 100.00% 50.00% 100.00% 100.00%	54,718 67,641 88,701 334,028 345 188,137 3,784 1,732 46,877 38,203 2,970,354 (355,996) 17,563 456,186 (74,201)	2,354,517 964,785 3,287,178 6,629,388 57,586 9,892,729 331,602 93,897 1,141,587 224,244 58,879,156 (155,496) 75,678 3,218,412 7,565,315	611,825 72,820 - - - 103,612 - - - - - - - - 149,416

Name of the PRC Investee Company	Primary Business Scope	Amount of Paid-in Capital	Method of Investment	Investment Transferred from Taiwan as of January 1, 2020	For The Nine Months Ended September 30, 2020	For The Nine Months Ended September 30, 2020	Investment Transferred from Taiwan as of September 30, 2020	Current Income of Investees	Direct and Indirect Shareholding Percentage by the Company	Investment Gain (Loss)	Carrying Value of Investment as of September 30, 2020	Accumulated Inward Remittance of Earnings as of September 30, 2020
					Outflow	Inflow
Hua Ya (Dong Ying) Plastics Corp. Hua Ya (Wu Hu) Plastics Corp. Formosa Synthetic Rubber (Ningbo) Limited Corporation	production of plastic products production of plastic products synthetic rubber	254,190 624,948 12,777,590	Indirect investment Indirect investment Indirect investment	34,591 34,591 4,162,010	- - -	- - -	34,591 34,591 4,162,010	- - (363,983)	15.00% 15.00% 33.33%	- - (118,688)	284,720 362,271 2,111,270	23,020 12,687 -

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

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 September 30, 2020 (Note 1)	Amount of Investment Approved by Investment Commission, Ministry of Economic Affairs(Note 2)	Limit on the Amount of Investment in Mainland China (Note 3)
48,483,340	53,671,092	-

Note 1 ： Reporting currency of Chinese subsidiaries is CNY, and the monetary amount is first translated to HKD using the exchange rate as of September 30, 2020 (in average) is 1：1.1454(1.1158), and translated to TWD using the exchange rate as of September 30, 2020 (in average) is 1：3.7341(3.8256) Note 2 ： It includes the amount of $3,010,315 from capital increase out of earnings and capital increase out of capital surplus.

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

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

(c) Information on significant transactions ：

For more information concerning the direct or indirect significant transactions between the Company and its Chinese investees for the nine months ended September 30, 2020, please refer to the attachment of note 13 for "Information on material transaction items".

AI assistant

NPC — Interim / Quarterly Report 2020

51763_rns_2020-12-15_17979f53-cf8a-49b8-9f66-0adb1c0abe1e.pdf

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Consolidated Financial Statements

Table of contents

3

KPMG

Independent Auditors’ Review Report

Introduction

Basis for Qualified Conclusion

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.

Qualified Conclusion

Other Matter

KPMG

Notes to Readers

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with the generally accepted auditing standards as of September 30, 2020 and 2019

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the three months and nine months ended September 30, 2020 and 2019

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

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

Equity attributable to owners of parent

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the nine months ended September 30, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

September 30, 2020 and 2019

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

(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 significant accounting policies:

(a) Statement of compliance

(b) Basis of consolidation

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Employee benefits

(d) Income taxes

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(6) Explanation of significant accounts:

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

(e) Other receivables

(f) Inventories

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

(h) Property, Plant and Equipment

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Property, plant and equipment under construction

(i) Right-of-use assets

(j) Intangible assets

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

(n) Bonds payable

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(o) Lease liabilities

(i) Real estate leases

(ii) Other leases

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(p) Employee Benefits

(i) Defined benefit plans

(ii) Defined contribution plan

NAN YA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(q) Income Tax

(i) Income tax expense

NPC Interim / Quarterly Report 2020