Stock Code:2408

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors' Review Report For the Nine Months Ended September 30, 2019 and 2018

Address: No.98, Nanlin Rd., Dake Vil., Taishan Dist., New Taipei City, Taiwan (R.O.C.) Telephone: (02)2904-5858

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	Page
1. Cover Page	1
2. Table of Contents	2
3. Independent Auditors' Report	3
4. Consolidated Balance Sheets	4
5. Consolidated Statements of Comprehensive Income	5
6. Consolidated Statements of Changes in Equity	6
7. Consolidated Statements of Cash Flows	7
8. Notes to the Consolidated Financial Statements
Company history (1)	8
Approval date and procedures of the consolidated financial statements (2)	8
New standards, amendments and interpretations adopted (3)	$8 - 11$
Summary of significant accounting policies (4)	$11 - 14$
Significant accounting assumptions and judgments, and major sources (5) of estimation uncertainty	14
Explanation of significant accounts (6)	$14 - 39$
Related-party transactions (7)	$39 - 42$
Pledged assets (8)	42
Commitments and contingencies (9)	43
(10) Losses Due to Major Disasters	44
(11) Subsequent Events	44
$(12)$ Other	44
(13) Other disclosures
(a) Information on significant transactions	$45 - 46$
(b) Information on investees	46
(c) Information on investment in mainland China	47
(14) Segment information	$47 - 48$

KPMG

台北市11049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, Xinyi Road, Taipei City 11049, Taiwan (R.O.C.)

Fax 傳真 + 886 (2) 8101 6667 Internet 網址 kpmg.com/tw

Oualified Conclusion

Except for the adjustments, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries described in the Basis for Qualified Conclusion paragraph above been reviewed by independent auditors, based on our reviews and the review report of another auditor (please refer to Other Matter paragraph), 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 Group as of September 30, 2019 and 2018, and of its consolidated financial performance for the three months and nine months ended September 30, 2019 and 2018, as well as of its consolidated cash flows for the nine months ended September 30, 2019 and 2018, 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 Formosa Advanced Technologies Co., Ltd., an investment in other accounted for using the equity method of the Group. The 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 Formosa Advanced Technologies Co., Ltd., is based solely on the review report of another auditor. The aforementioned investment accounted for using the equity method amounted to \$2,949,195 thousand and \$3,067,266 thousand, constituting 1.78% and 1.69% of the consolidated total assets as of September 30, 2019 and 2018, respectively; and the share of profit of associates accounted for using the equity method amounted to \$74,627 thousand, \$28,065 thousand, 176,033 thousand and 28,065 thousand, constituting 2.78%, 0.22%, 1.82% and 0.08% of the consolidated total profit before tax for the three months and nine months ended September 30, 2019 and 2018, respectively.

The engagement partners on the reviews resulting in this independent auditors' review report are Hui-Chih Ko and Hsin-Yi Kuo.

KPMG

Taipei, Taiwan (Republic of China) November 8, 2019

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.

Reviewed only, not audited in accordance with the generally accepted auditing standards as of September 30, 2019 and 2018 (English Translation of Consolidated Financial Statements Originally Issued in Chinese)

Nanya Technology Corporation and Subsidiaries

September 30, 2019, December 31 and September 30, 2018 Consolidated Balance Sheets

(Expressed in Thousands of New Taiwan Dollars)

		September 30, 2019		December 31, 2018		September 30, 2018				September 30, 2019	December 31, 2018	September 30, 2018
	Current assets: Assets	Amount	℅	Amount	℅	Amount	$\frac{1}{2}$		Liabilities and Equity Current liabilities:	৽ৼ Amount	҉ Amount	Amount	⊱
$\frac{8}{2}$	Cash and cash equivalents (Note 6(a))	43,183,908	26	57,384,006	ಸ	57,258,699	$\overline{5}$	2170	Accounts payable	2 2,836,676 69	4,247,638	9,115,923	5
$\frac{170}{2}$	Notes and accounts receivable, net (Notes 6(b)(p))	8,048,012		9,763,741		15,663,667		2180	Accounts payable to related parties (Note 7)	270,690	332,064	350,249
1200	Other receivables (Note 6(h))	1,817,457		1,313,111		1,154,515		2200	Other payables	6,828,677	8,786,790	8,123,588
1310	Inventories (Note 6(c))	17,561,426		12,167,737		9,326,928		2220	Other payables to related parties (Note 7)	,620,364	938,944	975,316
1410	Prepayments	1,593,011		1,758.316		2,400,565		2230	Current tax liabilities	1,382,167	2,456,338	2,483,639
	Total current assets	72,203,814	$\frac{4}{3}$	82,386,911	$\frac{45}{5}$	85,804,374	$\overline{11}$	280	Current lease liabilities(Notes 6(j) and 7)	149,622
	Non-current assets:							2399	Other current liabilities	896	1,568	2,921
1550	Investments accounted for using equity method (Note 6(d))	2,949,195	$\mathbf{\hat{c}}$	3,006,603	2	3,067,266	$\mathbf{\Omega}$		Total current liabilities	$\infty$ 13,089,092	$\mathbf{r}$ 16,763,342	21,051,636	$\overline{12}$
1600	Property, plant and equipment (Notes 6(f) and 7)	88,662,250	24	95,358,992	52	90,903,196	$\mathbf{50}$	2570	Non-Current liabilities: Deferred tax liabilities	53	625	580
1755	Right-of-use assets (Notes 6(g) and 7)	148,833						2640	Net defined benefit liability, non-current	535,465	537,303	521,815
1780	Intangible assets	234,236		45,881		57,050		2670	Other non-current liabilities	239,762	377,245	179,802
1840	Deferred tax assets	657,886		867,311		862,112			Total non-current liabilities	775,858	915,173	702,197
1935	Long-term lease payments receivable (Note 6(h))			875,900		919,452			Total liabilities	$\infty$ 13,864,950	$\Xi$ 17,678,515	21,753,833	$\overline{12}$
194D	Long-term financial lease payments receivable (Note 6(h))	738,223							Equity (Note 6(m)):
1990	Other non-current assets (Note 8)	53,161		44,215		31,839		$\frac{10}{2}$	Ordinary share	$\overline{9}$ 30,725,609	$\overline{a}$ 31,032,389	31,014,199	17
	Total non-current assets	93,443,784	56	100,198,902	55	95,840,915	$\mathbb{Z}$	3140	Advance receipts for share capital	22,430	6,488	59,584
								\$200	Capital surplus	ຊ 31,957,132	≌ 33,557,005	33,428,438	≌
								310	Legal reserve	13,128,412	9,192,249	9,192,249
								3320	Special reserve	273,834	39,163	39,163
								3350	Unappropriated retained earnings	46 76,804,409	25 94,136,513	86,199,214	$\frac{8}{3}$
								3400	Other equity interest	17,754	(273, 834)	(41,391)
								3500	Treasury shares	⋷ (1,146,932)	ලු (2,782,675)
									Total equity	ଖ 151,782,648	ଟ୍ଟ 164,907,298	159,891,456	$\frac{88}{2}$
	Total assets	165,647,598	흭	182,585,813	흭	181,645,289	휇		Total liabilities and equity	회 \$165,647,598	$\frac{1}{2}$ 182,585,813	181,645,289	훼

See accompanying notes to consolidated financial statements.

$\ddot{\phantom{0}}$

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

Reviewed only, not audited in accordance with generally accepted auditing standards

Nanya Technology Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income

For the three months and nine months ended September 30, 2019 and 2018

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

			September 30,	For the three months ended			September 30,	For the nine months ended
		2019		2018		2019		2018
		Amount	%	Amount	%	Amount	%	Amount	%
4000	Operating revenue (Note 6(p))	14,799,353 \$	100	24,374,586	100	38,611,949	100	67,764,242	10 _C
5000	Operating costs (Notes $6(c)(k)(n)(q)$ and 7)	10,662,428	72	10,008,492	41	25,494,613	66	30,120,068	44
	Gross profit from operations	4,136,925	28	14,366,094	59	13,117,336	34	37,644,174	56
	Operating expenses (Notes $6(k)(n)(q)$ and 7):
6100	Selling expenses	204,726	2	218,119	1	527,521	1	667,145
6200	Administrative expenses	335,332	2	377,983	$\overline{c}$	960,819	3	1,144,025
6300	Research and development expenses	1,344,676	9	1,335,921	5	3,552,126		3,569,673
	Total operating expenses	1,884,734	13	1,932,023	8	5,040,466	13	5,380,843
	Net operating income	2,252,191	15	12,434,071	51	8,076,870	21	32,263,331	48
	Non-operating income and expenses (Notes $6(d)(e)(h)(i)(r)$ and 7):
7010	Other income	262,241	2	246,492	1	1,015,088	3	681,778
7020	Other gains and losses, net	95,286	1	163,984	1	400,005	$\mathbf{1}$	632,129
7050	Finance costs	(725)	$\overline{\phantom{a}}$	(148)		(2,716)		(5,611)
7055	Expected credit impairment gain(Note 6(b))	108	(1)			9,546
7060	Share of profit of associates accounted for using equity method, net	74,627	-1	28,065	$\overline{\phantom{a}}$	176,033		28,065
	Total non-operating income and expenses	431,537	3	438,393	$\overline{2}$	1,597,956	4	1,336,361
7900	Profit from continuing operations before tax	2,683,728	18	12,872,464	53	9,674,826	25	33,599,692	50
7950	Income tax expenses(Note 6(l))	478,931	3	379	$\sim$	1,136,096	3	2,191,621
	Profit	2,204,797	15	12,872,085	53	8,538,730	22	31,408,071	46
8300	Other comprehensive income: (Note 6(I))
8310	Components of other comprehensive (loss) income that will not be reclassified to profit or loss
8311	Remeasurements of the net defined benefit
8320	Share of other comprehensive loss of associates accounted for using equity method, components of other comprehensive loss that will not be reclassified to profit or loss	(34, 541)	$\overline{\phantom{a}}$	(10, 803)		(23, 405)		(10, 803)
8349	Income tax related to components of other comprehensive loss that will not be reclassified to profit or loss							(2,571)
	Components of other comprehensive income that will not be reclassified to profit or loss	(34, 541)		(10, 803)		(23, 405)		(8,232)
8360	Components of other comprehensive income that will be reclassified to profit or loss
8361	Exchange differences on translation of foreign financial statements	(35,514)	$\blacksquare$	(3,633)		314,993	1	8,575
8399	Income tax related to components of other comprehensive income that will be reclassified to profit or loss
	Components of other comprehensive (loss) income that will be reclassified to profit or loss	(35, 514)		(3,633)		314.993		8,575
8300	Other comprehensive (loss) income, net	(70, 055)		(14, 436)		291,588		343
8500	Comprehensive income	S 2,134,742	15	12,857,649	53	8,830,318	23	31,408,414
	Profit, attributable to:
8610	Profit, attributable to owners of parent	2,204,797 \$	15	12,872,085	53	8,538,730	22	31,408,846	46
8620	Loss, attributable to non-controlling interests	2,204,797	15	12,872,085	$\overline{53}$	8,538,730	22	(775) 31,408,071	46
	Comprehensive income attributable to:
8710	Comprehensive income, attributable to owners of parent	2,134,742 \$	15	12,857,649	53	8,830,318	23	31,409,189	46
8720	Comprehensive loss, attributable to non-controlling interests							(775)
		2,134,742	15	12,857,649	53	8,830,318	$\overline{23}$	31,408,414	46
	Earnings per share (Note 6(o))
9750	Basic earnings per share		0.72		4.15		2,81		10.23
9850	Diluted earnings per share	s	0.72		4.04		2.77		9.88

$\sim$

Nanya Technology Corporation and Subsidiaries

Consolidated Statements of Changes in Equity

For the nine months ended September 30, 2019 and 2018

(Expressed in Thousands of New Taiwan Dollars)

Equity attributable to owners of parent

									Other equity interest Unrealized gains
		Certificate of entitlement to						differences on Exchange	measured at fair financial assets (losses) on
	Ordinary	new shares convertible from	receipts for Advance	Capital surplus	Legal	Special	Unappropriated retained	translation of financial foreign	comprehensive Total other equity value through other		Treasury	attributable to Total equity owners of	Non-controlling
Balance at January 1, 2018	29,639,38 shares	223,958 boud	share capita	27,277,191	5,164,057 reserve	reserve	69,734,440 earnings	(39, 163) statements	income	(39, 163) interest	shares	131,999,865 parent	115,323 interests	132,115,188 Total equity
Net profit (loss) for the nine months ended September 30, 2018							31,408,846					31,408,846	(775)	31,408,071
Other comprehensive income (loss) for the nine months ended September 30, 2018							2,571	8,575	(10, 803)	(2, 228)		343		343
Total comprehensive income (loss) for the nine months ended September 30, 2018							31,411,417	8,575	(10, 803)	(2,228)		31,409,189	(775)	31,408,414
Appropriation and distribution of retained earnings:
Legal reserve appropriated					4,028,192		(4,028,192)
Special reserve appropriated						39,163	(39, 163)
Cash dividends of ordinary share							(10, 879, 288)					(10, 879, 288)		(10, 879, 288)
Other changes in capital surplus:
Changes in equity of associates accounted for using equity method
Recognized compensation costs on employee stock options				632,071								632,071		632,071
Conversion of convertible bonds	732,839			4,504,323								5,237,162		5,237,162
Conversion of certificates of bonds to share	223,958	(223,958)
Exercise of employee share options	418,020		584 59 _z	1,014,848								1,492,452		1,492,452
Disposal of subsidiaries accounted for using equity method													(114, 548)	(114, 548)
Balance at September 30, 2018	31,014,199		S,	33,428,438	9,192,249	39,163	86,199,214	(30, 588)	(10, 803)	(41,391)		159,891,456	и	159,891,456
Balance at January 1, 2019	31,032,389		휇╣	33,557,005	9,192,249	39,163	94,136,513	(179, 736)	(94,098)	(273, 834)	(2,782,675)	164,907,298		164,907,29
Net profit for the nine months ended September 30, 2019							8,538,730					8,538,730		8,538,730
Other comprehensive income (loss) for the nine months ended September 30, 2019								314,993	(23, 405)	291,588		291,588		291,588
Total comprehensive income (loss) for the nine months ended September 30, 2019							8,538,730	314,993	(23, 405)	291,588		8,830,318		8,830,318
Appropriation and distribution of retained earnings:
Legal reserve appropriated					3,936,163	ï	(3,936,163)
Special reserve appropriated						234,671	(234, 671)
Cash dividends of ordinary share							(21,700,000)					(21,700,000)		(21,700,000)
Other changes in capital surplus:
Changes in equity of associates accounted for using equity method				$\mathbf{e}$								$\mathbf{e}$		$\overline{a}$
Recognized compensation costs on employee stock options				117,759								117,759		117,759
Repurchase of treasury share											(1,029,878)	(1,029,878)		(1,029,878)
Retirement of treasury share	(501,360)			(2,164,261)							2,665,621
Exercise of employee share options	194,580		잋 5,	446,610								657,132		657,132
Balance at September 30, 2019	30,725,609		430 $\mathbf{z}$	31,957,132	13,128,412	273,834	76,804,409	135,257	(117,503)	17,754	(1.146, 932)	151,782,648		151,782,648

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

Nanya Technology Corporation and Subsidiaries

Consolidated Statements of Cash Flows

For the nine months ended September 30, 2019 and 2018

(Expressed in Thousands of New Taiwan Dollars)

	For the nine months ended September 30,
	2019	2018
Cash flows from operating activities:
Profit before tax	9,674,826	33,599,692
Adjustments:
Adjustments to reconcile profit:
Depreciation expense	10,621,739	8,871,715
Amortization expense	66,328	84,334
Expected credit impairment gain	(9, 546)
Net loss on financial liabilities at fair value through profit or loss		281,107
Interest expense	2,716	5,611
Interest income	(1,015,088)	(681,778)
Share-based payments	117,759	632,071
Share of profit of associates accounted for using equity method	(176, 033)	(28,065)
Gain on disposal of property, plant and equipment	(4, 416)	(2,966)
Gain on disposal of a subsidiary		(497)
Reversal of impairment loss on non-financial assets	(213, 283)	(109, 744)
Unrealized foreign exchange loss	110,271	149,817
Total adjustments to reconcile profit	9,500,447	9,201,605
Changes in operating assets and liabilities: Notes and accounts receivable	1,670,279	(7,275,992)
Other receivables	(424, 959)	(179,088)
Inventories	(5,393,689)	(2,575,304)
Prepayments	165,305	(781, 629)
Financial liabilities held for trading		(523, 136)
Accounts payable (including related parties)	(384,766)	6,258,337
Other payables (including related parties)	(1,296,227)	(3,947,584)
Other current liabilities	(672)	967
Net defined benefit liability	(1,838)	(3,982)
Other non-current liabilities	16,733	(16, 375)
Total changes in operating assets and liabilities	(5,649,834)	(9,043,786)
Cash inflow generated from operations	13,525,439	33,757,511
Interest received	885,366	496,011
Dividends received	210,055
Interest paid	(373)	(569)
Income taxes paid	(2,011,004)	(1,435,550)
Net cash flows from operating activities	12,609,483	32,817,403
Cash flows (used in) from investing activities:		(3,049,999)
Acquisition of financial assets at amortized cost Proceeds from disposal of a subsidiary		(85, 937)
Acquisition of property, plant and equipment	(4.655, 843)	(7,680,547)
Proceeds from disposal of property, plant and equipment	4,712	11,849
Increase in refundable deposits	(5,641)	(4,039)
Decrease in other receivables		10,616,574
Acquisition of intangible assets	(79, 529)
Decrease in lease and installment receivables	198,248	321,997
Increase in other non-current assets	(9,503)	(4.923)
Net cash flows (used in) from investing activities	(4,547,556)	124,975
Cash flows (used in) from financing activities:
(Decrease) increase in guarantee deposits received	(311, 368)	110,069
(Decrease) increase in other payables to related parties	(4,115)	1,348
Payment of lease liabilities	(133, 947)
Cash dividends paid	(21,700,000)	(10, 879, 288)
Exercise of employee share options	657,132	1,492,452
Payments to acquire treasury shares	(1,029,878)
Net cash flows used in financing activities	(22, 522, 176)	(9,275,419)
Effect of exchange rate changes on cash and cash equivalents	260,151	(176, 937)
Net (decrease) increase in cash and cash equivalents	(14,200,098)	23,490,022
Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	57,384,006 43,183,908 s	33,768,677 57,258,699

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

Nanya Technology Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

September 30, 2019 and 2018

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

(1) Company history

Nanya Technology Corporation (the "Company") was legally established with the approval of the Ministry of Economic Affairs on March 4, 1995, with registered address at No.98 Nanlin Road Dake Vil., Taishan District, New Taipei City, Taiwan. The main operating activities of the Company and its subsidiary (the "Group") are researching, developing, manufacturing and selling semiconductor products, and the import and export of its machinery, equipment and raw materials.

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

The consolidated financial statements were authorized for issuance by the Board of Directors on November 8, 2019.

(3) New standards, amendments and interpretations adopted:

The impact of the International Financial Reporting Standards ("IFRSs") endorsed by the Financial $(a)$ 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, 2019.

New, Revised or Amended Standards and Interpretations	Effective date per IASB
IFRS 16 "Leases"	January 1, 2019
IFRIC 23 "Uncertainty over Income Tax Treatments"	January 1, 2019
Amendments to IFRS 9 "Prepayment features with negative compensation"	January 1, 2019
Amendments to IAS 19 "Plan Amendment, Curtailment or Settlement"	January 1, 2019
Amendments to IAS 28 "Long-term interests in associates and joint ventures"	January 1, 2019
Annual Improvements to IFRS Standards 2015-2017 Cycle	January 1, 2019

Except for the following items, the Group believes that the adoption of the above IFRSs would not have any material impact on its consolidated financial statements. The extent and impact of signification changes are as follows:

IFRS 16"Leases" $(i)$

IFRS 16 replaces the existing leases guidance, including IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases – Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease.

The Group applied IFRS 16 using the modified retrospective approach. The details of the changes in accounting policies are disclosed below,

$1)$ Definition of a lease

Previously, the Group determined at contract inception whether an arrangement is or contains a lease under IFRIC 4. Under IFRS 16, the Group assesses whether a contract is or contains a lease based on the definition of a lease, as explained in Note 4(c).

On transition to IFRS 16, the Group elected to apply the practical expedient to grandfather the assessment of which transactions are leases. The Group applied IFRS 16 only to contracts that were previously identified as leases. Contracts that were not identified as leases under IAS 17 and IFRIC 4 were not reassessed for whether there is a lease. Therefore, the definition of a lease under IFRS 16 was applied only to contracts entered into or changed on or after January 1, 2019.

As a lessee $2)$

As a lessee, the Group previously classified its leases as operating or finance leases based on its assessment of whether the lease transferred significantly all of the risks and rewards incidental to ownership of the underlying asset to the Group. Under IFRS 16, the Group recognizes its right-of-use assets and lease liabilities for most leases.

The Group decided to apply the recognition exemptions to the short-term and low-value leases of its parking lots and office spaces.

Leases classified as operating leases under IAS 17

At transition, lease liabilities were measured at the present value of the remaining lease payments, discounted at the Group's incremental borrowing rate as at January 1, 2019. The right-of-use assets are measured below:

their carrying amount as if IFRS 16 had been applied since the commencement date, discounted using the lessee's incremental borrowing rate at the date of initial application – the Group applied this approach to its land leases.

In addition, the Group used the following practical expedients when applying IFRS 16 to leases.

Applied a single discount rate to a portfolio of leases with similar characteristics.
Used hindsight when determining the lease term if the contract contains options to extend or terminate the lease.

$3)$ As a lessor

The Group is not required to make any adjustments on transition to IFRS 16 for leases in which it acts as a lessor. The Group accounted for its leases in accordance with IFRS 16 from the date of initial application.

Impacts on financial statements $4)$

On transition to IFRS 16, the Group recognized both additional \$300,605 of right-of-use assets and lease liabilities at the date of initial application. When measuring lease liabilities, the Group discounted lease payments using its incremental borrowing rate at January 1, 2019. The interest rate applied is 1.41%.

The explanation of differences between operating lease commitments disclosed at the end of the annual reporting period immediately preceding the date of initial application, and lease liabilities recognized in the statement of financial position at the date of initial application disclosed as follows:

		January 1, 2019
Operating lease commitment at December 31, 2018 as disclosed in the Group's consolidated financial statements	S	385,636
Recognition exemption for:
short-term leases		(8,037)
leases of low-value assets		(73,619)
		303,980
Discounted using the incremental borrowing rate at January 1, 2019	Я	300,605

$(b)$ The impact of IFRS endorsed by 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, or after, January 1, 2020 in accordance with Ruling No. 1080323028 issued by the FSC on July 29, 2019:

	Effective date
New, Revised or Amended Standards and Interpretations	per IASB
Amendments to IFRS 3 "Definition of a Business"	January 1, 2020
Amendments to IAS 1 and IAS 8 "Definition of Material"	January 1, 2020

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

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

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:

New, Revised or Amended Standards and Interpretations	Effective date per IASB
Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture"	Effective date to be determined by IASB
IFRS 17 "Insurance Contracts" Amendments to IFRS 9, IAS39 and IFRS7 "Interest Rate Benchmark Reform"	January 1, 2021 January 1, 2020

The Group is evaluating the impact of the 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 Group completes its evaluation.

Summary of significant accounting policies: $(4)$

$(a)$ 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 full annual consolidated financial statements.

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, 2018. For the related information, please refer to note 4 of the consolidated financial statements for the year ended December 31, 2018.

$(b)$ Basis of consolidation
$(i)$ List of subsidiaries included in the consolidated financial statements:

Investor	The name of subsidiaries	Business activity	September 2019 30,	December 31. 2018	September 2018 30.	Note
The Company	NANYA TECHNOLOGY CORP. U.S.A.	Sales of semiconductor products	100.00 %	100.00 %	100.00 %	Note 3
The Company	NANYA TECHNOLOGY CORP. Delaware	Design of semiconductor products	100.00 %	100.00%	100.00 %	Note 3
The Company	NANYA TECHNOLOGY CORP. H.K.	Sales of semiconductor products	100.00 %	100.00 %	100.00 %	Note 3
The Company	NANYA TECHNOLOGY CORP. Japan	Sales of semiconductor products	100.00 %	100.00 %	100.00 %	Note 3
The Company	PEI JEN Co., Ltd.	General import and export business	$\%$ ۰	$\%$		100.00 % Note 1 and note 3
The Company	NANYA TECHNOLOGY INTERNATIONAL LTD.	General investment business	100.00 %	100.00 %	$\frac{0}{2}$ ٠	Note 2
NANYA TECHNOLOGY CORP. H.K.	NANYA TECHNOLOGY CORP Europe GmbH	Sales of semiconductor products	100.00 %	100.00 %	100.00 %	Note 3
NANYA TECHNOLOGY CORP. H.K.	NANYA TECHNOLOGY CORP. Shenzen	Sales of semiconductor products	100.00 %	100.00 %	100.00%	Note 3

$=$ $\alpha$ $\beta$

(Continued)

Shareholding

Note 1: Pei Jen Co. applied for the completion of its liquidation to the court in December 2018, resulting in the Company's to loss of control over Pei Jen Co..
Note 2: The Company fully invested in its subsidiary, Nanya Technology International Ltd., in which the registration process had been completed in November 2018.
Note 3: Company is a non-significant subsidiary, its financial statement have not been reviewed by independent auditors.
Subsidiaries not included in the consolidated financial statements: None. $(ii)$
Leases (Policy applicable from January 1, 2019) $(c)$
Identifying a lease $(i)$

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

$-$ the contract involves the use of an identified asset $-$ this may be specified explicitly or implicitly, and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified; and
-the Group has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and
the Group has the right to direct the use of the asset. The Group has the right to direct the use of the asset when it has the decision-making rights that are most relevant to changing how and for what purpose the asset is used. In rare cases where the decision about how and for what purpose the asset is used is predetermined, the Group has the right to direct the use of an asset if either:
the Group has the right to operate the asset; or
the Group designed the asset in a way that predetermines how and for what purpose it will be used.

$(ii)$ As a lessee

The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability.

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

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

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

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

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

there is a change in future lease payments arising from the change in an index or rate; or
-there is a change of its assessment on whether it will exercise a purchase, extension or termination option; or
there is any lease modifications

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

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

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

$(iii)$ As a lessor

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

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

Income taxes $(d)$

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

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. This should be recognized fully as tax expense for the current period. (and allocated to current amd deferred taxes based on its proportionate size.)

For a change in tax rate that is substantively enacted in an interim period, the effect of the change should immediately be recognized in the interim period in which the change occurs.

Employee benefits $(e)$

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.

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

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, 2018. For the related information, please refer to note 5 of the consolidated financial statements for the year ended December 31, 2018.

Explanation of significant accounts: $(6)$

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, 2018. Please refer to Note 6 of the 2018 annual consolidated financial statements.

(a) Cash and cash equivalents

		September 30, 2019	December 31, 2018	September 30, 2018
Petty cash	\$	146	157	126
Checking accounts and demand deposit		4,715,457	6,377,176	12,436,939
Cash equivalents:
Time deposits		36,284,926	50,601,623	44,077,538
Commercial paper		1,560,881	404,150	312,036
Repurchase agreements collateralized by corporate bonds		622,498	900	432,060
	S	43,183,908	57,384,006	57,258,699

(b) Notes and accounts receivable

	September 30, 2019	December 31, 2018	September 30, 2018
Notes receivable from operating activities	1,039	481	626
Accounts receivable-measured at amortized cost	8,046,973	9,772,558	15,672,071
$Less : Loss$ allowance		(9,298)	(9,030)
	8,048,012	9,763,741	15,663,667

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for notes and accounts receivables. To measure the expected credit losses, notes and 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 provisions for notes and accounts receivable were determined as follows:

		September 30, 2019
	Notes and accounts receivables gross carrying	Weighted average loss	Loss allowance
Due days	amount	rate	provision
Current	\$ 7,862,119	-
1 to 30 days past due	183,526		-
31 to 60 days past due	2,367
	8,048,012

			December 31, 2018
Due days		Notes and accounts receivables gross carrying amount	Weighted average loss rate	Loss allowance provision
Current	\$	8,984,499	0.02%	2,088
1 to 30 days past due		766,506	0.90%	6,899
31 to 60 days past due		4,442	1.10%	49
61 to 90 days past due		1,154	1.30%	15
Over 91 days past due		16,438	1.50%	247
	S	9,773,039		9,298
		September 30, 2018
Due days		Notes and accounts receivables gross carrying amount	Weighted average loss rate	Loss allowance provision
Current	\$	15,300,427	0.03%	5,041
1 to 30 days past due		368,384	1.07%	3,942

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

$S_{-}$

	For the nine months ended September 30,
	2019	2018
Balance on January 1,	9.298	8,859
Reversal of impairment losses	(9, 546)
Foreign exchange gains	248
Balance on September 30,		9,030

3,886

15,672,697

1.20%

31 to 60 days past due

	September 30, 2019	December 31, 2018	September 30, 2018
Raw materials	\$ 526,754	598,067	560,538
Work in progress	7,604,615	5,870,118	5,782,687
Finished goods	9,430,057	5,699,552	2,983,703
	17,561,426	12,167,737	9,326,928

(Continued)

9,030

The Group did not recognized any loss from devaluation or gain from recovery in the value of inventories for the three months and nine months ended September 30, 2019 and 2018.

(d) Investments accounted for using equity method

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

	2019	September 30, December 31, September 30, -2018	2018
Associates	2,949,195	3,006,603	3,067,266

The related information of the major associate to the Group were as follows:

			Percentage of ownership
Name of Associates	Nature of Relationship to the Group	Registration Country	September 30, 2019	December 31, 2018	September 30, 2018
Formosa Advanced Technologies Co., Ltd.(FATC)	It mainly engages in assembling and testing of module products, as well as in the research and development of integrated circuits.	Taiwan	19.00 $%$	19.00 $%$	19.00 $%$

The fair value of major associates listed on the Stock Exchange were as follows:

	September 30, December 31, September 30,
	2019	2018	2018
Formosa Advanced Technologies Co., Ltd.	15,057,667	14,062,667	14,858,667

The aggregated financial information of the major associate were as follows:

The financial information of FATC were as follows:

	September 30, 2019	December 31, 2018	September 30, 2018
Current assets	\$ 6,287,991	6,792,443	7,305,931
Non-current assets	6,623,131	5,882,131	5,538,894
Current liabilities	(1,229,925)	(1,231,815)	(1,196,228)
Non-current liabilities	(597, 351)	(86, 280)	(80, 466)
Net asset	11,083,846	11,356,479	11,568,131
Net asset contributed to FATC	11,083,846	11,356,479	11,568,131

	For the three months ended			For the nine months ended
	September 30,			September 30,
	2019	2018		2019	2018
Operating revenue	2,456,336	2,281,452		6,899,134	6,556,523
Profit	\$ 355,817	462,866		956,006	1,188,273
Other comprehensive (loss) income	(181,791)	(56, 861)		(123, 182)	305,002
Total comprehensive (loss) income	174,026	406,005		832,824	1,493,275
Comprehensive income contributed to FATC	174,026	406,005		832,824	1,493,275
				For the nine months ended September 30,
				2019	2018
Share of net assets of the major associate at January 1			\$	2,157,732
Acquisition of share of net assets of the major associate allocated to the Group					2,162,315
Uncollected dividends beyond the collection period which are reclassified to capital surplus				19	5
Total comprehensive income contributed to the Group				158,178	35,577
Cash dividends contributed to the Group				(210, 055)
Share of net assets of major associate at September 30				2,105,874	2,197,897
Add:good will				887,684	887,684
Less: unrealized profits on upstream sales net assets of the associates				(44, 363)	(18,315)
Total carrying amount of the major associate				2,949,195	3,067,266

$(e)$ Loss control over subsidiaries
The Company had disposed 53.56% of its shares in Piece Makers, with a selling price of $(i)$ \$132,584; therefore, it lost control over Piece Makers on February 26, 2018. The Group recognized a gain on disposal of \$497 in profit or loss, which was included in other gains and losses.

The carrying amount of assets and liabilities of Piece Makers Technology Corp on February 26, 2018 were as follow:

	February 26, 2018
Cash and cash equivalents	218,521 \$
Accounts receivable and other receivables	54,228
Inventories	136,906
Other current assets	3,160
Property, plant, and equipment	3,892
Other non-current assets	666
Accounts payable and other payables	(170, 752)
Other non-current liabilities	(6)
Carrying amount of net assets	246,615

(ii) Pei Jen Co., Ltd (hereinafter referred to as " Pei Jen" ), a subsidiary of the Company, had applied for the completion of its liquidation to the court on December 10, 2018, resulting in the Company's loss of control over Pei Jen. The Company included the distribution of the remaining properties from Pei Jen in its balance sheet, which consisted of cash and cash equivalents amounting to \$44,284, and other tax refund receivable amounting to \$12.
$(f)$ Property, plant and equipment

		Land	Building	Machinery and equipment	Other equipment	Under construction	Total
Cost:
Balance as of January 1, 2019	\$	1,013,924	7,740,635	180,746,435	1,132,778	13,886,443	204,520,215
Additions				1,494,970	35,313	2,032,605	3,562,888
Disposals				(89, 892)	(6.431)		(96, 323)
Reclassification			416.922	12,979,294	13,822	(13, 410, 038)
Effect of exchange rate change			72	(3,550)	4,948		1,470
Balance as of September 30, 2019	S	1,013,924	8,157,629	195, 127, 257	1,180,430	2,509,010	207,988,250
Balance as of January 1, 2018		1,013,924	7,502,631	172,719,912	1,133,770	1,778,293	184, 148, 530
Additions				2,014,927	18,474	11,402,563	13,435,964
Disposals				(117, 149)	(64, 714)		(181, 863)
Disposal of a subsidiary				(60)	(23, 771)		(23, 831)
Reclassification			237,913	5,725,690	23,909	(5,987,398)	114
Effect of exchange rate change			35	424	1,282		1,741
Balance as of September 30, 2018	S	1,013,924	7,740,579	180,343,744	1,088,950	7,193,458	197,380,655
Accumulated depreciation / impairment:
Balance as of January 1, 2019	\$		1,978,349	106.196.034	986,840		109, 161, 223
Depreciation for the period			237,029	10,206,524	29,190		10,472,743
Reversal of impairment loss				(213, 283)			(213, 283)
Disposals				(92, 546)	(3, 481)		(96, 027)
Reclassification				(9,904)	9,904
Effect of exchange rate change			53	(981)	2,272		1,344
Balance as of September 30, 2019			2,215,431	116,085,844	1,024,725		119,326,000

(Continued)

		Land	Building	Machinery and equipment	Other equipment	Under construction	Total
Balance as of January 1, 2018	s		1,676,927	95,179,932	1,049,791		97,906,650
Depreciation for the period			225,817	8,629,424	16,474		8,871,715
Reversal of impairment loss			$\tilde{\phantom{a}}$	(109, 744)			(109, 744)
Disposals				(108, 266)	(64, 714)		(172,980)
Disposal of a subsidiary				(60)	(19, 879)		(19,939)
Reclassification				(10, 135)	10,141		6
Effect of exchange rate change			22	(312)	2,041		1,751
Balance as of September 30, 2018			1,902,766	103,580,839	993,854		106,477,459
Carrying amounts:
Balance as of September 30, 2019		1,013,924	5,942,198	79,041,413	155,705	2,509,010	88,662,250
Balance as of December 31, 2018		1,013,924	5,762,286	74,550,401	145,938	13,886,443	95,358,992
Balance as of September 30, 2018		1,013,924	5,837,813	76,762,905	95,096	7,193,458	90,903,196

(g) Right-of-use assets

	Land
Cost:
Balance at January 1,2019	\$
Effect of retrospective application	300,605
Change in an index of lease payment	(2,776)
Balance at September 30, 2019	297,829
Accumulated depreciation:
Balance at January 1, 2019	\$
Effect of retrospective application
Depreciation for the period	148,996
Balance at September 30, 2019	148,996 S
Carrying Amount:
Balance at January 1, 2019
Balance at September 30, 2019	148,833

(h) Lease receivables

$(i)$ On June 18, 2009, the Group signed an amended long term lease agreement with Inotera Memories, Inc. (its name was changed to Micron Technology Taiwan in March, 2017, referred to as "MTTW") on the lease of building, facilities and land located on 348, 348-1 and 348-3, Hwa Ya Section, Kueishan District, Taoyuan City. This amended lease agreement, which took effect retroactively from January 1, 2009, includes the renewal term. Initial lease term is from January 1, 2009 to December 31, 2018. However MTTW is entitled to renew this amended lease agreement for an unlimited number of consecutive additional terms of five years each, by providing a written notice with the intention to renew the lease term commencing from January 1, 2019. MTTW has completed the renewal of its lease agreement, with a written notice on December 13, 2018. In addition, MTTW has an exclusive option to purchase the leased assets for a total purchase price of USD50,000 thousand on and after January 1, 2024. Also, the rental receivable for the entire year of 2009 has been waived. Initial yearly rentals for the leased building (including facilities and land) were USD13,010 thousand and USD1,990 thousand, respectively from January 1, 2010 to December 31, 2018; the first yearly renewal rentals for the leased building (including facilities and land) will be USD8,010 thousand and USD1,990 thousand, respectively, from January 1, 2019 to December 31, 2023; the subsequent yearly renewal rentals for the leased building (including facilities and land) will be USD10 thousand and USD1.990 thousand commencing from January 1, 2024. The amended lease agreement for the building (including facilities) is treated as a capital lease because (a) the present value of the periodic rental payments made since the inception date is at least 90% of the market value of the leased assets and (b) the lease term is equal to 75% or more of the total estimated economic life of the leased assets. The land is treated as an operating lease.
$(ii)$ The total lease receivable from the capital lease of the building (including facilities) was \$5,185,620; the implicit interest rate was 10.56%. The cost of the leased assets at the beginning of the lease period was \$2,656,223. The difference was recognized as unrealized interest revenue of \$2,529,397. For the three months and nine months ended September 30, 2019 and 2018, the Group recognized the interest revenue of \$23,651, \$28,912, \$74,199 and \$92,736, respectively, from the amortization of unrealized interest revenue.

						December 31, 2018		September 30, 2018
	Gross investment in the lease	Unearned finance income		Present value of minimum lease payments receivable	Gross investment in the lease	Unearned finance income	Present value of minimum lease payments	Gross investment receivable in the lease	Unearned finance income	Present value of minimum lease payments receivable
Less than one year	264,330	83,101		181,229	264,331	96,730	167,601	305,580	101,041	204,539
Between one and five years	859,073	120,850		738,223	1,057,320	181,420	875,900	1,057,320	203,951	853,369
More than five years								66,083		66,083
Sub-total	\$1,123,403	203,951		919,452	1,321,651	278,150	1,043,501	1,428,983	304,992	1,123,991
Current			s	181,229			167,601			204,539
Non-current				738,223			875,900			919,452
			S	919,452			1,043,501			1,123,991

The details of lease receivables were as follows:

Bonds Payable $(i)$

			September 30, 2019	December 31, September 30, 2018	2018
Issuance of unsecured overseas convertible bonds		\$		14,267,000	14,267,000
Conversion of convertible bonds to ordinary shares				(14,267,000)	(14,267,000)
		S
	For the three months ended September 30,			For the nine months ended September 30,
Embedded derivatives-call and put options and conversion rights re- measured at fair value through loss (included other gain and losses)	2019 S		2018	2019	2018 140,266
Item				The first unsecured overseas convertible bond
1. Issue amount	USD 500,000 thousand
2. Issue par value	USD 200 thousand
3. Issue period				$2017.1.24 \sim 2022.1.24$
4. Bond expiration				5 years
5. Coupon rate				0%
6. Conversion price				TWD 52.47 dollars
7. Conversion period	the issuance date itself).			The bondholder has the right to convert any bonds into shares that are subject to the terms set forth in the contract. The bonds are convertible anytime after 40 day from the issuance date (excluding
8. Put option of bond holders	(A)Each bondholder may require the Company to redeem, in whole or in part, the convertible bonds at an amount, hereinafter referred to as "Early Redemption Amount" (ERA), calculated at par value, plus, interest compensation, which is calculated semi- annually at the rate of 1.75% per annum, after 3 years from the issuance date (excluding the issuance date itself).
	(B) Each bondholder may redeem in advance, in whole or in part, the convertible bond if the Company is delisted from the Taiwan stock exchange.
				(C) Each bondholder may redeem in advance, in whole or in part, the convertible bonds if the Company meets all the conditions on the changes in its rights of control in the contract.

Item	The first unsecured overseas convertible bond
9. Call option of issuer	(A) The issuer may redeem, in whole or in part, the convertible bonds at the ERA if the closing price of the Company's shares which translated into US dollars at the prevailing rate for a period of 20 trading days in any period of 30 consecutive trading days is above 130 percent of the ERA multiplied the conversion ratio and divided by par value.
	(B) The issuer may redeem its outstanding convertible bonds at their Early Redemption Amount if more than 90 per cent, in principal, of the amount of the bonds have already been converted, redeemed, repurchased or cancelled.
	(C) The issuer may redeem, in whole or in part, or the convertible bonds at their Early Redemption Amount if the Company has become obliged to pay the additional interests and costs as a result of any changes in, or amendment to, the laws or regulations of the ROC.

The host contract debt instruments and derivative conversion rights instruments were included in convertible bond, the host contract are measured at an effective annual rate equal to 1.6593%; the derivative conversion rights instruments are measured at fair value recognized in profit or loss. The Company approved to distribute its cash dividends for 2016 in the general meeting of stockholders held on May 26, 2017. As a result, the conversion price decreased to \$50.94 dollars since June 26, 2017 (ex-dividend date).

Because the bondholders had exercised the entire conversion rights, the first unsecured overseas convertible bond issued by the Company had been fully converted in the first quarter of 2018.

Lease liabilities $(i)$

		September 30, 2019
Current		149,622
For the maturity analysis, please refer to Note $6(s)$ .
The amount recognized in profit or loss were as follows:
	For the three months ended September 30, 2019	For the nine months ended September 30, 2019
Interest on lease liabilities	645	2,463
Expense relating to short-term and low-value lease assets	18,608	52,053

The amount recognized in the statement of cash flows of the Group was as follows:

	For the nine months ended
	September 30, 2019
Total cash outflow for leases

$(i)$ Land lease

As of September 30, 2019, the Group leases its land with a period of 3 years. The lease included an option to terminate, which are exercisable only by the Group and not by the lessors. The lease payment changes annually based on a local price index.

$(ii)$ Other lease

The Group leases parking lots and office spaces with contract terms ranging from one to five years. These leases are short-term or with low-value items. The Group applied the recognition exemptions and elected not to recognize its right-of-use assets and lease liabilities for these leases.

Employee benefits $(k)$
Defined benefit plan $(i)$

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 period was measured and disclosed according to the actuarial report as of December 31, 2018 and 2017.

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

	For the three months ended September 30,		For the nine months ended September 30,
	2019	2018	2019	2018
Operating cost	1,879	1,958	5,743	5,909
Operating expenses	1,086	1.006	3.153	2,980
Total	2,965	2.964	8,896	8,889

(ii) Defined contribution plans

The Group's expenses under the pension plan cost to the Bureau of local government were as follows:

	September 30,	For the three months ended	For the nine months ended September 30,
	2019	2018	2019	2018
Operating cost	22,729	21,270	68,199	63,571
Operating expenses	17,649	14,453	51,455	44,186
Total	40,378	35,723	119,654	107,757

$(1)$ Income tax

The Group's income tax expenses were as follows: $(i)$

		For the three months ended September 30,		For the nine months ended September 30,
		2019	2018	2019	2018
Current tax expense
Current period	S	319,364	379	738,640	3,926
Surtax on undistributed
earnings				187,965	2,187,695
Deferred tax expense		159,567		209,491
Tax expense		478,931	379	1,136,096	2,191,621

(ii) The Group's tax expense recognized in other comprehensive income were as follows:

		For the three months ended September 30,	For the nine months ended September 30,
	2019	2019	2019	2018
Items that could not be reclassified subsequently to profit or loss:
Remeasurement of net defined benefit plan				2.571

(iii) The Company's tax returns have been examined by the ROC tax authority through 2016.

(m) Capital and other equity

Except as described below, there was no material change in equity for the nine months ended September 30, 2019 and 2018. Please refer to Note 6(o) of the consolidated financial statements as of and for the year ended December 31, 2018 for the related detail disclosures on equity.

$(i)$ Ordinary Share

On February 27, May 10, and August 12, 2019, the Company's Board of Directors approved to issue the Company's ordinary shares deriving from the exercise of employee share options. The Company had issued 313 thousand, 89 thousand and 19,056 thousand ordinary shares at par value, respectively, with an issuing prices of \$33.1, \$33.1 and \$29.2 to \$33.1 per share, respectively, which totaled \$194,580. All issued shares were paid up upon issuance and the related process for registration had been completed.

For the third quarter of 2019, the Company's ordinary shares were derived from the exercise of employee share options. Accordingly, the Company had issued 754 thousand ordinary shares, at issuing prices of \$30.3 and \$29.2 per share, respectively, which totaled \$22,430, which was recognized as advance receipts for share capital as of September 30, 2019.

$(ii)$ Capital surplus

	September 30, 2019	December 31, 2018	September 30, 2018
Premium from the issuance of stock	\$ 28,994,659	30,712,310	30,669,328
Employee stock option plans	2,699,950	2,844,690
Expired employee stock option plans	262,499
Employee stock option plans			2,759,105
Change in equity of associates accounted for using equity method	24
	\$ 31,957,132	33,557,005	33,428,438

(iii) Retain earning

According to the Company's Articles of Incorporation, the Company's annual net profit, 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 until the accumulated balance of legal reserve equals the total issued capital and any special reserves pursuant to relevant laws and regulations. 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.

As it belongs to a highly capital intensive industry with strong growth potential, the Company adopts a dividend distribution policy which is in line with its plans for product line expansion and the demand of fund. This policy requires that the distribution of cash dividends shall be equal to at least fifty percent (50%) of the Company's total dividend distribution every year.

$1)$ Legal reserve

In accordance with the ROC Company Act, 10% of net income should be set aside as legal reserve, until it is equal to share capital. When the Group incurs no loss, it may, in pursuant to a resolution to be adopted by a shareholders' meeting, distribute its legal reserve by issuing new shares or by cash. Only the portion of legal reserve which exceeds 25 percent of the paid-in capital may be distributed.

$2)$ Special Reserve

In accordance with Ruling No. 1010012865 issued by the FSC on April 6, 2012, a portion of current-period earnings and undistributed prior-period earnings shall be reclassified as special earnings reserve during earnings distribution. The amount to be reclassified should equal the current-period total net reduction of other shareholders' equity. Similarly, a portion of undistributed prior-period earnings shall be reclassified as special earnings reserve (and does not qualify for earnings distribution) to account for cumulative changes to other shareholders' equity pertaining to prior periods. Amounts of subsequent reversals pertaining to the net reduction of other shareholders' equity shall qualify for additional distributions.

$3)$ Earrings distribution

Earnings distribution for 2018 and 2017 were approved by the general meetings of shareholders were held on May 30, 2019 and May 24, 2018, respectively. The relevant dividend distributions to shareholders were as follows:

	2018	For the year ended December 31,
Dividends attributable to ordinary shareholders:	Dividends per share	Amount
Cash dividends	\$ 7.11	21,700,000
	2017	For the year ended December 31,
Dividends attributable to ordinary shareholders:	Dividends per share	Amount
Cash dividends	\$ 3.51	10,879,288

(iv) Treasury shares

The Company repurchased shares from the securities exchange market based on section 28(2) of the Securities and Exchange Act and the movement in treasury shares were as follows:

		Reasons for repurchase of shares
	Transferring to employees		Total
	thousand shares	Amount	thousand shares	Amount	thousand shares	Amount
Balance as of January 1, 2019	20,000 \$	1.146.932	30.445	1,635,743	50,445	2,782,675
Repurchase for the period			19,691	1.029.878	19.691	1,029,878
Retirement for the period			(50, 136)	(2,665,621)	(50, 136)	(2,665,621)
Balance as of September 30, 2019	20,000 \$	1,146,932			20,000	1,146,932

On February 27, 2019, the Company's Board of Directors approved to retire 50,136 thousand treasury shares, resulting in a decrease in ordinary shares amounting to \$501,360. The Company recognized the decrease in capital surplus of \$2,164,261, with the same record date as the capital reduction, due to the book value being higher than the par value of the treasury shares. The related process for registration had been completed.

In accordance with the requirements of Securities and Exchange Act, treasury shares held by the Company should not be pledged, and do not hold any shareholder rights before their transfer.

$(v)$ Other equity (net of tax)

Exchange differences on translation of foreign financial statements		Unrealized losses from financial assets measured at fair value through other comprehensive income	Total
\$	(179, 736)		(273, 834)
	314,993		314,993

		(23, 405)	(23, 405)
	135,257	(117,503)	17,754
			(94, 098)

	Exchange differences on translation of foreign financial statements		Unrealized losses from financial assets measured at fair value through other comprehensive income	Total
Balance as of January 1, 2018	\$	(39, 163)		(39, 163)
Exchange differences on translation of foreign financial statements		8,575		8,575
Unrealized loss from financial assets measured at fair value through other comprehensive loss associates accounted
for using equity method			(10, 803)	(10, 803)
Balance as of September 30, 2018		(30, 588)	(10, 803)	(41,391)

Share-based payment $(n)$

Except as described below, there was no material change on the share-based payment transactions for nine months ended September 30, 2019 and 2018. Please refer to Note $6(p)$ of consolidated financial statements as of and for the year ended December 31, 2018 for related disclosures on sharebased payment transactions.

The company approved to distribute its cash dividends in the third quarter of 2019. As a result, $(i)$ the exercise price of the 8^th and 9^th batch of the employee stock option plan were adjusted to \$29.2 dollars and \$30.3 dollars respectively, in accordance with the offering and exercising terms and conditions of ESOP.
(ii) Relevant information of employee stock option plans

The Company:

		For the nine months ended September 30,
	2019		2018
	Weighted- average exercise (price TWD)	Number of options (Thousand Units)	Weighted- average exercise (price TWD)	Number of options (Thousand Units)
Outstanding at January 1,	\$ 34.49	109.382	35.34	155,374
Options granted	29.22	(20,016)	33.12	(43, 573)
Options expired	35.60	(60, 367)
Options forfeited	29.24	(519)	34.00	(2,122)
Outstanding at September 30,	30.08	28,480	34.49	109,679
Options exercisable at September 30,	30.07	5,808	35.49	63,236

(iii) Compensation cost

$(0)$

		September 30,	For the three months ended		For the nine months ended September 30,
		2019	2018	2019	2018
Compensation cost arising from share options granted to employees	\$	32,509	86,111	117,759	632,071
Earnings per share
		September 30,	For the three months ended	For the nine months ended September 30,
		2019	2018	2019	2018
Basic earnings per share:
Net profit attributable to the Company	S	2,204,797	12,872,085	8,538,730	31,408,846
Weighted-average number of ordinary shares outstanding (basic)		3,052,680	3,102,214	3,042,467	3,068,888
Basic earnings per share (dollar) \$		0.72	4.15	2.81	10.23
Diluted earnings per share:
Net profit attributable to the Company (basic)	S	2,204,797	12,872,085	8,538,730	31,408,846
Weighted-average number of ordinary shares (basic)		3,052,680	3,102,214	3,042,467	3,068,888
Effect of employee share option		17,401	57,273	22,049	78,959
Effect of employee remuneration		12,659	28,244	12,659	31,745
Weighted-average number of ordinary shares (diluted)		3,082,740	3,187,731	3,077,175	3,179,592
Diluted earnings per share (dollar)	S	0.72	4.04	2.77	9.88

(p) Revenue from contracts with customers

Disaggregation of revenue $(i)$

				For the three months ended September 30, 2019
		Japanese department	USA department	Manufacturing department	Other department	Total
Primary geographic markets:
Taiwan	\$	1,067	291,487	4,970,539	18,757	5,281,850
Turkey					70,421	70,421
Japan		460,663				460,663
Malaysia			176,088	7.757		183,845
Korea		162,330	10,108	23,530		195,968
China		374,795	1,205,981	5,637,169	349,145	7,567,090
USA			40.924	118,709		159,633
Thailand		7,495	174,234	144,405		326,134
Germany					97,341	97,341
Other countries		131,261	29,693	106,938	188,516	456,408
		1,137,611	1,928,515	11,009,047	724,180	14,799,353
Major products/services line:
Dynamic Random Access Memory (DRAM)	-S	1,137,611	1,928,234	10,969,856	724,180	14,759,881
Other			281	39,191		39,472
		1,137,611	1,928,515	11,009,047	724,180	14,799,353

		For the three months ended September 30, 2018
		Japanese department	USA department	Manufacturing department	Other department	Total
Primary geographic markets:
Taiwan	\$	1,722	59,544	11,141,135	23,495	11,225,896
Turkey			-		3,778	3,778
Japan		457,358				457,358
Malaysia			281,502	125,915		407,417
Korea		81,957	4	102,232		184,193
China		530,851	3,490,462	6,015,695	398,549	10,435,557
USA			65,732	261,867		327,599
Other countries		152,631	19,286	525,177	635,694	1,332,788
	S	1,224,519	3,916,530	18,172,021	1,061,516	24,374,586
Major products/services line:
Dynamic Random Access Memory (DRAM)	-S	1,224,519	3,916,530	18,135,414	1,061,516	24,337,979
Other				36,607		36,607
	S	1,224,519	3,916,530	18,172,021	1,061,516	24,374,586

		For the nine months ended September 30, 2019
		Japanese department	USA department	Manufacturing department	Other department	Total
Primary geographic markets:
Taiwan	\$	8,173	413,552	15,494,544	67,673	15,983,942
Turkey					188,150	188,150
Japan		1,416,325				1,416,325
Malaysia			601,602	22,536		624,138
Korea		351,548	27,439	142,330		521,317
China		1,154,232	2,197,596	12,822,351	1,112,080	17,286,259
USA			136,718	188,746		325,464
Thailand		52,186	386,088	282,620		720,894
Germany					277,850	277,850
Other countries		255,232	126,331	312,667	573,380	1,267,610
		3,237,696	3,889,326	29,265,794	2,219,133	38,611,949
Major products line:
Dynamic Random Access Memory (DRAM)	S	3,237,696	3,888,487	29,149,737	2,219,133	38,495,053
Other			839	116,057		116,896
		3,237,696	3,889,326	29,265,794	2,219,133	38,611,949

		For the nine months ended September 30, 2018
		Japanese department	USA department	Manufacturing department	Other department	Total
Primary geographic markets:
Taiwan	\$	6,278	145,509	29,882,730	111,477	30,145,994
Turkey					427,929	427,929
Japan		1,560,005			1,609	1,561,614
Malaysia			703,742	409,310	12,610	1,125,662
Korea		206,308	298	436,813	1,715	645,134
China		1,302,833	7,081,439	20,668,052	1,511,736	30,564,060
USA			228,579	269,407		497,986
Other countries		294,202	53,114	1,122,377	1,326,170	2,795,863
	S	3,369,626	8,212,681	52,788,689	3,393,246	67,764,242
Major products line:
Dynamic Random Access Memory (DRAM)	S.	3,369,626	8,212,681	52,683,153	3,393,246	67,658,706
Other				105,536		105,536
	\$	3,369,626	8,212,681	52,788,689	3,393,246	67,764,242

Contract balances $(i)$

		September 30, 2019	December 31, 2018	September 30, 2018
Notes receivable from operating activities	\$	1.039	481	626
Accounts receivable		8,046,973	9,772,558	15,672,071
Less: allowance for impairment			(9,298)	(9,030)
Total	S	8,048,012	9,763,741	15,663,667

For details on notes and accounts receivable, and loss allowance for impairment, please refer to note $6(b)$ .

$(q)$ Remuneration to employees

According to the Company's articles of incorporation, if the Company makes a profit, it should appropriate for employee remuneration to employees which is calculated based on 1% to 12% of the Company's net income before tax before deduction of employee remuneration to employees and after offsetting accumulated deficits, if any, should be distributed as employee remuneration to employees. Employees who are entitled to receive the above mentioned employee remuneration to employees, in shares or cash, include the employees of the subsidiaries of the Company who meet certain specific requirements.

The estimated employee remuneration which was charged to profit or loss under operating costs or expense amounted to \$167,948, \$120,000, \$539,035 and \$1,640,949 for the three months and nine months ended September 30, 2019 and 2018, respectively. This employee remuneration to employees was estimated based on the Company's net income before tax before deducting any employee remuneration, according to the earnings allocation method as stated under the Company's articles of association. If there is any difference between the actual amounts and the estimated amounts of employee remuneration to employees after the financial reports are issued, the management of the Company is expecting that the differences will be treated as a changes in accounting estimates and recognized through profit or loss in the following year.

The difference between the estimated employee remuneration, which was stated in the financial statement for the year ended December 31, 2018, and the amount of actual distribution in 2019, amounted to \$1,739,997. The company recognized difference of \$3 in profit or loss in 2019.

The difference between the estimated employee remuneration, which was stated in the financial statement for the year ended December 31, 2017, and the amount of actual distributions in 2018, amounted to \$1,362,183. The Company recognized difference of \$1,830 in profit or loss in 2018.

Non-operating income and expenses $(r)$

Other incomes $(i)$

	For the three months ended September 30,		For the nine months ended September 30,
	2019	2018	2019	2018
Interest income
Bank deposits and short-term notes	\$ 238,590	217,580	940,889	589,042
Financial lease	23,651	28,912	74,199	92,736
	262,241	246,492	1,015,088	681,778

(ii) Other gains and losses

		For the three months ended September 30,		For the nine months ended September 30,
		2019	2018	2019	2018
Foreign exchange (loss) gains	\$	(38, 396)	113,144	78,150	702,816
Net loss on financial liabilities at fair value through profit or loss					(281, 107)
Gain on disposal of a subsidiary					497
Reversal of impairment gain on non-financial assets		92,961	8,883	213,283	109,744
Gain on disposals of property, plant and equipment		4,703	2,920	4,416	2,966
Others		36,018	39,037	104,156	97,213
	S	95,286	163,984	400,005	632,129

(iii) Finance costs

	For the three months ended September 30,		September 30,	For the nine months ended
	2019	2018	2019	2018
Bank loans	\$			26
Amortization interest of overseas convertible bond				5,105
Financing from other related parties	32	99	110	334
Amortization interest of lease liabilities	645		2,463
Others	48	49	143	146
	725	148	2,716	5,611

Financial instruments $(s)$

Except for the contention mentioned below, there was no significant change in the fair value of the Group'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 $6(w)$ of the consolidated financial statements for the year ended December 31, 2018.

$(i)$ Liquidity risk

The following are the remaining contractual maturities at the end of the reporting period of financial liabilities, including estimated interest payments but excluding the impact of netting agreements:

		Carrving amount	Contractual cash flow	Within 6 months	6-12months
September 30, 2019
Non-derivative financial liabilities
Financing from other related parties	\$	3,510	3,668	79	3,589
Accounts payable (including related parties)		3,107,366	3,107,366	3,107,366
Other payables (including related parties)		8,445,531	8,445,531	8,445,531
Lease liabilities		149,622	150,505	100,337	50,168
	s	11,706,029	11,707,070	11,653,313	53,757
December 31, 2018 Non-derivative financial liabilities
Financing from other related parties	S	7,625	8,046	211	7,835
Accounts payable (including related parties)		4,579,702	4.579.702	4,579,702
Other payable (including related parties)		9,718,109	9,718,109	9,718,109
	s	14,305,436	14,305,857	14,298,022	7.835
September 30, 2018 Non-derivative financial liabilities
Financing from other related parties	\$	9,764	10,249	242	10,007
Accounts payable (including related parties)		9,466,172	9,466,172	9,466,172
Other payables (including related parties)		9,089,140	9,089,140	9,089,140
	S	18,565,076	18,565,561	18,555,554	10,007

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

$(ii)$ Currency risk

1) Exposure to currency risk

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

			September 30, 2019		December 31, 2018				September 30, 2018
		Foreign currency (in thousands)	Exchange rate (dollars)	New Taiwan Dollars	Foreign currency (in thousands)	Exchange rate (dollars)	New Taiwan Dollars	Foreign currency (in thousands)	Exchange rate (dollars)	New Taiwan Dollars
Financial assets:
Monetary items
USD	s	393,810	31.042	12,224,650	1,565,831	30.733	48.122,684	1,733,932	30.551	52,973,357
JPY		1,662,378	0.2875	477,934	3,219,721	0.2772	892,507	143,737	0.2692	38,694
EUR		61	33.9439	2,071	7	35.167	246	17	35.5288	604
HKD		68,469	3.9581	271,007	٠
Financial liabilities:
Monetary items
USD		131,174	31.042	4,071,903	135,655	30.733	4,169,085	177,032	30.551	5,408,505
JPY		2,302,487	0.2875	661,965	2,644,019	0.2772	732,922	4,104,067	0.2692	1,104,815
EUR		434	33.9439	14,732	4,387	35,1670	154,278	42,595	35.5288	1,513,349

The Group's exposure to foreign currency risk arises from the translation of the foreign currency exchange fluctuations on cash and cash equivalents, accounts receivable, accounts payable and other payable (including related parties) which are denominated in different foreign currencies. A 1% depreciation of the TWD against the USD, EUR, JPY, and HKD as of September 30, 2019 and 2018 would have increased the net income before tax by \$82,271 and \$449,860 for the nine months ended September 30, 2019 and 2018, respectively. This analysis assumes that all other variables remain constant and ignores any impact of forecasted sales and purchases. The analysis is performed on the same basis as prior year.

Since the Group has many kinds of functional currency, the information on foreign exchange loss on monetary items is disclosed by total amount. For the nine months ended September 30, 2019 and 2018, foreign exchange gain (including realized and unrealized portions) amounted to \$78,150 and \$702,816, respectively.

$2)$ interest rate risk

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

The following sensitivity analysis is based on the exposure to the interest rate risk of derivative and non-derivative financial instruments on the reporting date. Regarding liabilities with variable interest rates, the analysis is based on the assumption that the amount of liabilities outstanding at the reporting date was outstanding throughout the year. The rate of change is expressed as the interest rate increases by 1% when reporting to management internally, which also represents the Group management's assessment of the reasonably possible interest rate change.

If the interest rate had increased by 1 basis points, the Group's net income would have increased or decreased by \$35 and \$98 for the nine months ended September 30, 2019 and 2018 with all other variable factors remaining constant. This is mainly due to the Group's borrowing at variable rates and investment in variable-rate bills.

(iii) Fair value of financial instruments
Types and fair value of financial instruments $1)$

The fair value of financial liabilities was measured at recurring fair value. The carrying amount and fair value of the Group's financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, disclosure of fair value information is not required:

				September 30, 2019
					Fair Value
		Book Value	Level 1	Level 2	Level 3	Total
Financial assets measured at amortized cost
Cash and cash equivalents	\$	43,183,908
Notes and accounts Receivable		8,048,012
Other receivables (including related parties)		1,636,228
Lease payments receivable (including current portion)		919,452
Total		\$ 53,787,600
Financial liabilities measured at amortized cost
Accounts payable (including related parties)	S	3,107,336
Other payables (including related parties)		8,449,041
Lease liabilities-current		149,622
Total		11,705,999

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES
Notes to the Consolidated Financial Statements

			December 31, 2018
			Fair Value
	Book Value	Level 1	Level 2	Level 3	Total
Financial assets measured at amortized cost
Cash and cash equivalents	S. 57,384,006
Notes and accounts receivable, net	9,763,741
Other receivables	1,145,510
Lease payments receivable (including current position)	1,043,501
Total	69,336,758
Financial liabilities measured at amortized cost
Accounts payable (including related parties)	\$ 4,579,702
Other payables (including related parties)	9,725,734
Total	14,305,436
			September 30, 2018
			Fair Value
	Book Value	Level 1	Level 2	Level 3	Total
Financial assets measured at amortized cost
Cash and cash equivalents	57,258,699 \$
Notes and accounts receivable, net	15,663,667
Other receivables	949,976
Lease payments receivable (including current portion)	1,123,991
Total	74,996,333 S
Financial liabilities measured at amortized cost
Accounts payable (including related parties)	\$ 9,466,172
Other payables (including related
parties)	9,098,904

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

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

Financial assets and liabilities measured at amortized cost. $a)$

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 fair value is determined by discounted cash flows, using estimation and assumptions under existing market conditions which are obtainable by the Company.

$3)$ There were no transfers from financial assets for the nine months ended September 30, 2019 and 2018.

Financial risk management $(t)$

There were no significant changes in the Group's financial risk management and policies as disclosed in Note $6(x)$ of the consolidated financial statements for the year ended December 31, 2018.

$(u)$ Capital management

Management believes that the objectives, policies and processes of capital management of the Group has been applied consistently with those described in the consolidated financial statements for the year ended December 31, 2018. Also, management believes that there were no significant changes in the Group's capital management information as disclosed for the year ended December 31, 2018. Please refer to Note 6(z) of the consolidated financial statements for the year ended December 31, 2018 for further details.

The investing and financing activities on non-cash transactions $(v)$

The Group's investing and financing activities on non-cash transactions for the nine months ended September 30, 2019 and 2018 were as follows:

$(i)$ Acquisition of right-of-use assets by lease, please refer to Note6 $(g)$ .
Financing activities which did not affect the current cash flows: $(ii)$

	September 30,	For the nine months ended
	2019	2018
Conversion of convertible bonds to ordinary shares	-	3,240,750
Retirement of treasury shares	2,665,621

(iii) Reconciliation of liabilities arising from financing activities were as follows:

				Non-Cash changes
	January 1, 2019	Cash flow	Change in an index of lease payment	Increased by other payables	Interest expense	September 30, 2019
Other payables to related parties	7.625	(4, 115)		-	-	3,510
Lease liabilities	300.605	(133, 947)	(2.776)	(16.723)	2.463	149.622
	308,230	(138.062)	(2,776)	(16, 723)	2,463	153,132

(7) Related-party transactions:

$(a)$ Names and relationship with related parties

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

Name of related party	Relationship with the Group
Nan Ya Photonics Incorporation	The Group's other related parties
Formosa Technologies (Nanjing) Corporation	The Group's other related parties
Formosa Sumco Technology Corporation	The Group's other related parties

Name of related party	Relationship with the Group
Formosa Advanced Technologies Co., Ltd. (referred to as "FATC")	The Group's associates (Note)
Formosa Technologies Corporation	The Group's other related parties
Formosa Biomedical Technology Corp.	The Group's other related parties
Formosa Plastics Corporation	The Group's other related parties
Formosa Heavy Industries Corp. (GZ) Ltd.	The Group's other related parties
Formosa Waters Technology Co., Ltd.	The Group's other related parties
Formosa Chemicals & Fiber Corporation	The Group's other related parties
Formosa Heavy Industries Corporation	The Group's other related parties
Formosa Transportation (Ning bo) Corp.	The Group's other related parties
Formosa Petrochemical Corporation	The Group's other related parties
Nan Ya Plastics Corporation	The entity with significant influence over the Group

Note: FATC was the previous other related party of the Group. However, since the Company has significant influence over FATC, it became the Group's associates beginning July 25, 2018.

$(b)$ Significant transactions with related parties
$(i)$ Purchase from related parties

			Purchases
		For the three months ended September 30,		For the nine months ended September 30,			Accounts payable to related parties
Relationship		2019	2018	2019	2018	September 30, 2019	December 31, 2018	September 30, 2018
Entities with significant influence over the Group	Φ	18,048	32.153	79.512	61.903	6,044	5,626	10,584
Associates				984	4,221	۰
Other related parties:
Formosa Sumco Technology Corporation		255,129	440,985	1.038.483	1.289.575	249,187	322,068	334,242
Other related parties		64,359	30,932	234,715	81.325	15,459	4,370	5,423
		337,536	504,070	1,353,694	1,437,024	270,690	332,064	350,249

The terms and pricing of purchase transactions with related parties were not significantly different from those offered by other vendors. The payment terms ranged from one to two months, which were no different from the payment terms given by other vendors.

(ii) Consigned out for processing

		Amount
	For the three months ended September 30.		For the nine months ended September 30.			Other pavables to related parties
Relationshin	2019	2018	2019	2018	September 30, 2019	December 31. 2018	September 30, 2018
Associates	1.833.392	1,491,013	5.183.993	4.345.154	1,616,819	931.059	957.634

The term of transactions with the related parties above is 60 days after the end of each month when processed consigned goods are received.

(iii) Financing from related parties

			Financial costs
		For the three months ended September 30		For the nine months ended September 30
Relationship	2019		2018	2019		2018
Other related parties:
Formosa Heavy Industries Corp. (GZ) Ltd.						80
Formosa Transportation (Ningbo) Corp.						45
Formosa Technologies (Nanjing) Corporation		32	99		110	188
Formosa Heavy Industries Corporation						21
	\$	32	99		110	334
			Other payables to related parties
		Balance of borrowings			Interest payable
Relationship	September 30, 2019	December 31, 2018	September 2018 30,	September 30. 2019	2018	December 31, September 30, 2018
Other related parties:
Formosa Technologies (Nanjing) Corporation	3,510 -8	7,625	9,764	35	156	146

(iv) Property transactions

Acquisition of equipment $1)$

		September 30,	Acquisition price For the nine months ended	Other payables to related parties
Relationship	2019		2018	September 30, 2019	December 31. 2018	September 30, 2018
Entities with significant influence over the Group			391			178
Other related parties		340	8.017		104	7.594
		340	8,408		104	7,772

Acquisition of Financial Assets $2)$

			For the nine months ended September 30, 2018
Relationship	Account	Number of shares of transaction (in thousands)	Item of transaction	Acquisition price
Associates	Investments		Shares of Formosa
	accounted for using		Advanced
	equity method		84,022 Technologies Co., Ltd. \$	3,049,999

$(v)$ Leases

		Amount
	For the three months ended September 30,		For the nine months ended September 30,
	2019	2018	2019	2018
Entities with significant influence over the
Group	12,675	58,537	36,769	170,911

The rentals charged to the entities with significant influence over the Company are determined based on the local market prices, and rents are paid monthly.

A three-year land lease contract was signed in July 2017. The total value of the contract was \$617,862. For the three months and nine months ended 2018, the rent expense were amounting to \$50,663 and \$152,265, respectively.

The Group applied IFRS 16, with a date of initial application on January 1, 2019. This lease transaction recognized the additional amounts of \$300,605 of right-of-use assets and lease liabilities. For the three months and nine months ended September 30, 2019, the Group recognized the amount of \$645 and \$2,463, as interest expense, respectively. As of September 30, 2019, the balance of lease liabilities amounted to \$149,622.

(c) Key management personnel compensation

Key management personnel compensation comprised:

	For the three months ended September 30,		For the nine months ended September 30,
	2019	2018	2019	2018
Short-term employee benefits \$	68,259	48,301	92,222	70,533
Share-based payment	855	2,262	3.087	16,695
	69,114	50,563	95,309	87,228

Please refer to Note $6(n)$ for the details of share-based payment.

(8) Pledged assets:

The Group's assets pledged to secure loans are as follows:

Pledged assets	Object	September 30, 2019	December 31, September 30, 2018	2018
Other non-current
assets	Office leasing	5,270	5.137

(9) Commitments and contingencies:

$(a)$ Significant commitments

		September 30, 2019	2018	December 31, September 30, 2018
Guarantees for importation goods provided by bank	S	1,045,000	1,035,000	435,000
Unused letters of credit		29,739	419,639	1,797,359
Total		1,074,739	1,454,639	2,232,359

Contingent liabilities $(b)$
In 2000, the Company was charged by Brazil's Ministry of Justice as being involved in the $(i)$ International Monopolies, which influences Brazil's DRAM market. Consequently, the Company, other large international companies and individuals are investigated at the same time. The Company has engaged counsels to properly handle it to ensure the Company's rights.
In October 2016, Lone Star Silicon Innovations LLC (Lone Star) filed a lawsuit against Nanya $(ii)$ Technology Corp. (Nanya) and two of its subsidiaries. Nanya Technology Corp., USA (NTC) USA) and Nanya Technology Corp., Delaware (NTC Delaware), to the US District Court of East Texas for patent infringement. The lawsuit was handed over to the US District Court of Northern California in July 2017, wherein it was denied in January 2018. Therefore, Lone Star appealed to the US Court of Appeals for the Federal Circuit on the said matter. The case is still in progress. The Group has engaged lawyers to handle the case to ensure its rights.
(iii) The original Joint Venture agreement signed by the Company, Micron Technology, Inc. and its related parties was terminated after Micron Semiconductor Co. completed its share-swap with Micron Technology Taiwan. Both parties had mutually agreed to sign a cooperation agreement, the details of the agreement were as follows:
- $1)$ The estimated cost for improving specific environmental safety and factory facilities in mutually operating period of joint venture agreement amounted to US\$5,403 ten thousands; the Company agreed to share the 50% portion of the total costs and accrued it as expense of \$850,000 (USD27,015 thousand) to other payable. The Company will share the cost based on the actual amounts at the appointed time. As of September 30, 2019, the payment amounting to \$44,150 (USD1,460 thousand) had been recognized by the Company.
- The Company agreed to share the 50% portion of the total losses for penalty, improving $2)$ costs and suspending operation before the date of share-swap in the following two to five years due to an existing event of environmental safety and factory facilities which violated the laws.

(10) Losses Due to Major Disasters: None

(11) Subsequent Events:

On November 8, 2019, the Company's Board of Directors approved to increase the capital of its subsidiary, Nanya Technology International Corporation, amounting to USD 200 million by issuing 200 shares with a par value of USD 1 million per share.

$(12)$ Other:

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

		For the three months ended September 30, 2019		For the three months ended September 30, 2018
	Cost of goods sold	Operating expenses	Total	Cost of goods sold	Operating expenses	Total
Employee benefits
Salaries	766,822	607,558	1,374,380	734,308	544,113	1,278,421
Labor and health insurance	48.526	35,945	84,471	43,782	33,015	76,797
Pension expenses	24,608	18,735	43,343	23,228	15,459	38,687
Remuneration of directors		1,560	1,560	$\blacksquare$	1,710	1,710
Other personnel expenses	18,058	6,020	24,078	17,273	5,732	23,005
Depreciation expenses	3,600,520	77,891	3,678,411	3,001,258	38,872	3,040,130
Amortization expenses	26.614	$\blacksquare$	26,614	12,964		12,964

		For the nine months ended September 30, 2019		For the nine months ended September 30, 2018
	Cost of goods sold	Operating expenses	Total	Cost of goods sold	Operating expenses	Total
Employee benefits
Salaries	2,196,744	1,545,634	3,742,378	3,313,296	1,956,925	5,270,221
Labor and health insurance	143,790	107,177	250,967	130,148	95,716	225,864
Pension expenses	73,942	54,608	128,550	69,480	47,166	116,646
Remuneration for directors		4.990	4.990		4.750	4,750
Other personnel expenses	53,789	17,782	71,571	50,956	16,825	67,781
Depreciation expenses	10,443,183	178,556	10,621,739	8,755,069	116,646	8,871,715
Amortization expenses	66,328		66,328	84,334		84,334

$(b)$ The Group's operations were not affected by seasonality or cyclicality factors.

(13) Other disclosures:

(a) Information on significant transactions:

The followings were the information on significant transactions required by the "Regulations Governing the Preparation of Financial Reports by Securities Issuers" for the Group for the nine months ended September 30, 2019:

Loans to other parties: None $(i)$
(ii) Guarantees and endorsements for other parties: None
(iii) Securities held at the reporting date (excluding investment in subsidiaries, associates and joint ventures):

(In Thousands of New Taiwan Dollars)

	Category and			Ending balance
Name of holder	name of security	Relationship with company	Account title	Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value	Note
The Company	Memoright (Cayman) Co., Ltd.		Financial assets measured at amortized cost and fair value through other comprehensive income

(iv) Information regarding purchase or sale of securities for the period exceeding \$300 million or 20% of the capital stock: None

(v) Acquisition of individual real estate with amount exceeding \$300 million or 20% of the Company's paid-in capital: None

(vi) Disposal of individual real estate with amount exceeding \$300 million or 20% of the Company's paid-in capital: None
(vii) Related-party transaction for purchases and sales for which amounts exceeding \$100 million or 20% of the Company's paidin capital:

							Transactions with terms
					Transaction details		different from others			Notes/Accounts receivable (payable)
					Percentage of					Percentage of total
Name of		Nature of	Purchase		total			Payment		notes/accounts
company	Related party	relationship	/Sale	Amount	purchases/sales	Payment terms	Unit price	terms		Ending balance receivable (payable)	Note
The Company	Nanya Technology Corp., U.S.A.	Subsidiary	(Sale)	(3,801,664)	(9.90)%	O/A 60~90Days			1,447,321	17.43%	(Note)
	The Company Nanya Technology Corp., Japan	Subsidiary	(Sale)	(3, 135, 640)	(8.17)%	O/A 180Days			667,442	8.04%	(Note)
	The Company Nanya Technology Corp., Europe GmbH	Subsidiary	(Sale)	(2,048,598)	(5.34)%	O/A 60~90Days			401,426	4.83%	(Note)
The company	Nanya Technology Corp., HK	subsidiary	(Sale)	(142, 569)	(0.37)%	O/A 60~90 Days			41,441	0.50%	(Note)
The Company	Formosa Sumco Technology Corp.	Other related parties	Purchase	1,038,483	11.25%	O/A 60Days			(249, 187)	(8.02)%
The Company	Formosa Biomedical Other related parties Technology Corporation		Purchase	116,117	1.26%	Payment after arrival and inspection of goods			(6,045)	(0.19)%
Nanya Technology Corp., U.S.A	Nanya Technology Corp	The parent company	Purchase	3,801,664	100.00%	O/A 60~90Days			(1, 447, 321)	$(100.00)\%$	(Note)
Nanva Technology Corp., Japan	Nanva Technology Corp	The parent company	Purchase	3,135,640	100,00%	O/A 180Days			(667, 442)	$(100.00)\%$	(Note)
Nanva Technology Corp., Europe GmbH	Nanva Technology Corp	The parent company	Purchase	2,048,598	100.00%	O/A 60-90Days			(401, 426)	(100.00)%	(Note)
Nanva Technology Corp., HK	Nanva Technology Corp	The parent company	Purchase	142,569	100.00%	O/A 60~90Days			(41, 441)	$(100.00)\%$	(Note)

(In Thousands of New Taiwan Dollars)

Note: The transactions were written off in the consolidated financial statements.

(viii) Receivables from related parties with amounts exceeding \$100 million or 20% of the Company's paid-in capital:

							(In Thousands of New Taiwan Dollars)
Name of		Nature of	Ending balance of	Turnover	Overdue		Amounts received in	Allowance
company	Counter-party	relationship	accounts receivable	rate	Amount	Action taken	subsequent period	for bad debts
			from related parties
The Company	Nanya Technology Corp., U.S.A.	Subsidiary	,447,321	2.57			552,637
The Company	Nanya Technology Corp., Japan	Subsidiary	667,442	6.11			361.085
The Company	Nanya Technology Europe GmbH	Subsidiary	401.426	5.56			211.422

Note: the transactions were written off in the consolidated financial statements.

(ix) Trading in derivative instruments: None

(x) Business relationships and significant intercompany transactions:

	(In Thousands of New Taiwan Dollars)
			Nature of			Intercompany transactions
No.	Name of company	Name of counter-party	relationship	Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
$\Omega$		Nanya Technology Corp. Nanya Technology Corp., U.S.A		Sales		3,801,664 On the basis of general conditions	9.85%
$\theta$		Nanya Technology Corp. Nanya Technology Corp., Japan		Sales		3,135,640 On the basis of general conditions	8.12%
$\mathbf 0$		Nanya Technology Corp. Nanya Technology Europe GmbH		Sales		2,048,598 On the basis of general lconditions.	5.31%
$\Omega$		Nanya Technology Corp. Nanya Technology Corp.		Sales		142,569 On the basis of general lconditions	0.37%
$\theta$		Nanya Technology Corp. Nanya Technology Corp., U.S.A		Accounts receivable		1,447,321 On the basis of general conditions	0.87%
$\Omega$		Nanya Technology Corp. Nanya Technology Corp., Japan		Accounts receivable		667,442 On the basis of general conditions	$0.40\%$
0		Nanya Technology Corp. Nanya Technology Europe GmbH		Accounts receivable		401,426 On the basis of general conditions	0.24%

Note 1: Assigned numbers represent the following:

0 represents the parent company.
The subsidiaries are represented numerically starting from 1.

Note 2: The terms of transactions are defined as follows:

1. Parent company to subsidiary.
1. Subsidiary to parent company.
1. Subsidiary to Subsidiary.

Note 3: The business relationship and significant transactions between the parent company and the subsidiary only disclose the importations of sales and account receivable, didn't repeat about the purchase and account payable.

Information on investees (excluding information on investees in Mainland China): $(b)$

The following is the information on investees for the nine months ended September 30, 2019:

(In Thousands of New Taiwan Dollars / Shares)

										m Thousands of New Turwan Donals / Bilates/
			Main		Original investment amount		Balance as of September 30, 2019		Net income	Share of
Name of investor	Name of investee	Location	businesses and products	September 30.	December 31.	Shares	Percentage of	Carrying	of investee	profits	Note
				2019	2018	(thousands)	ownership	value		of investee
The Company	Nanya Technology Corp, U.S.A.	IU S.A	Sales of semiconductor products	20,392	20,392		100.00 %	161.646	19,333	19,333	(Notel)
The Company	Nanya Technology Corp., Delaware	J.S.A	Design of semiconductor products	36,005	36,005		100.00%	168,692	17,667	17,667	(Notel)
The Company	Nanya Technology Corp., HK		Hong Kong Sales of semiconductor products	66,271	66,271	20	100.00%	54.790	5.053	5,053	(Notel)
The Company	Nanya Technology Corp., Japan	Japan	Sales of semiconductor products	20,161	20,161		100.00 %	184.509	4.407	4,407	(Notel)
The Company	Nanya Technology International, Ltd	British	General investment business	30,888,000	30,888,000		100.00 %	31,790,334	745,134		745,134 (Note 1)
		Virgin Island
The Company	Formosa Advanced Technologies Co, Ltd	Yunlin	Assembling testing and producing modules for IC	3,049,999	3,049,999	84,022	19.00%	2,949,195	956,006		176,033 (Note 2)
Nanya Technology Corp., HK	Nanya Technology Europe GmbH	Germany	Sales of semiconductor products	30,056	30,056		100.00 %	64,751	4,216	4,216	(Notel)

Note: (1)The transactions were written off in the consolidated financial statements.

(2) Investment accounted for using equity method.

(c) Information on investment in mainland China:

The names of investees in Mainland China, the main businesses and products, and other information: $(i)$

(In Thousands of New Taiwan Dollars)

	Main	Total		Accumulated outflow of		Investment flows	Accumulated outflow of	Net income				Accumulated
Name of investee	businesses and products	amount of paid-in capital	Method пf	investment from Taiwan as of	Outflow	Inflow	investment from Taiwan as of September 30.	$(\text{losses})$ of the investee	Percentage Investment of ownership	income (losses)	Book value	remittance of earnings in current period
				investment January 1, 2019			2019
Nanya Technology Corp.,	Sales of semiconductor		30.576 (Note 1)	30,576			30.576	(579)	100.00%	(579)	13,248
Shenzhen	broducts	rusd985l		(USD985			(USD985
		thousand		thousand)			thousand)

Note 1: Indirect investment in Nanya Technology Corp., Shenzhen through Nanya Technology Corp., HK.
Note 2: The transactions were written off in the consolidated financial statements.

(ii) Limitation on investment in Mainland China:

(In Thousands of New Taiwan Dollars) Upper Limit on Investment Accumulated Investment in Mainland China as Investment Amounts Authorized by $(Note 2)$ of September 30, 2019 (Note 1) Investment Commission, MOEA (Note 1) 30,576 30,576 91,069,589 (USD985 thousand) (USD985 thousand)

Note 1: The exchange rate of New Taiwan dollars to US dollars on September 30, 2019 was USD1: TWD 31.042.

Note 2:60% of net equity.

(iii) Significant transactions: None

(14) Segment information:

				For the three months ended September 30, 2019
		Japanese division	USA division	Manufacturing divisions	Others divisions	Adjustments and eliminated	Total
Revenue:
From external customers	S	1,137,611	1,928,515	11,009,047	724,180		14,799,353
From sales among intersegments			468	3,702,566	179,243	(3,882,277)
Total revenue		1,137,611	1,928,983	14,711,613	903,423	(3,882,277)	14,799,353
Reportable segment profit or loss		(5,299)	6,844	2,683,207	227,660	(228, 684)	2,683,728
				For the three months ended September 30, 2018
		Japanese division	USA division	Manufacturing divisions	Others divisions	Adiustments and eliminated	Total
Revenue:
From external customers	S	1,224,519	3.916,069	18, 192, 342	1,041,656		24,374,586
From sales among intersegments			461	6,114,540	170,687	(6, 285, 688)
Total revenue		1,224,519	3,916,530	24,306,882	1,212,343	(6,285,688)	24,374,586
Reportable segment profit or loss		40,524	21,436	12,872,086	255	(61, 837)	12,872,464
				For the nine months ended September 30, 2019
		Japanese division	USA division	Manufacturing divisions	Others divisions	Adjustments and eliminated	Total
Revenue:
From external customers	s	3,237,696	3,889,326	29,265,794	2,219,133		38,611,949
From sales among intersegments			1,398	9,128,471	382,157	(9,512,026)
Total revenue		3,237,696	3,890,724	38,394,265	2,601,290	(9,512,026)	38,611,949
Reportable segment profit or loss		4,288	19,333	9,673,497	769,302	(791,594	9,674,826

	For the nine months ended September 30, 2018
	Japanese division	USA division	Manufacturing divisions	Others divisions	Adiustments and eliminated	Total
Revenue:
From external customers	s 3,369,626	8,211,334	52,826,945	3,356,337		67,764,242
From sales among intersegments		1,347	14,572,860	330,421	(14,904,628)
Total revenue	3,369,626	8,212,681	67,399,805	3,686,758	(14, 904, 628)	67,764,242
Reportable segment profit or loss	17,319	26,088	33,598,751	26,173	(68, 639)	33,599,692
	Japanese division	USA division	Manufacturing divisions	Others divisions	Adjustments and eliminated	Total
Reportable segment assets
Balance at September 30, 2019	853,264	1,617,969	165,664,086	32,475,675	(34,963,396)	165,647,598
Balance at December 31, 2018	882,323	2,654,957	203,166,038	31,591,529	(55,709,034)	182,585,813
Balance at September 30, 2018	942,805	3,718,889	181,637,711	1,041,787	(5,695,903)	181,645,289
	Japanese division	USA division	Manufacturing divisions	Others divisions	Adjustments and eliminated	Total
Reportable segment liabilities
Balance at September 30, 2019	668,569	1,448,608	13,881,438	461,859	(2,595,524)	13,864,950
Balance at December 31, 2018	708,537	2,506,403	38,258,740	652,582	(24,447,747)	17,678,515
Balance at September 30, 2018	750,424	3,569,575	21,746,254	798,006	(5,110,426)	21,753,833

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NTC — Interim / Quarterly Report 2019

52061_rns_2019-11-22_a70b372e-383c-4476-9032-80e2496d054c.pdf

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES

Table of contents

Oualified Conclusion

Other Matter

KPMG

Notes to Readers

September 30, 2019, December 31 and September 30, 2018 Consolidated Balance Sheets

(Expressed in Thousands of New Taiwan Dollars)

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

Consolidated Statements of Comprehensive Income

For the three months and nine months ended September 30, 2019 and 2018

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

Nanya Technology Corporation and Subsidiaries

For the nine months ended September 30, 2019 and 2018

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

Nanya Technology Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

September 30, 2019 and 2018

(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:

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

Summary of significant accounting policies: $(4)$

Income taxes $(d)$

Employee benefits $(e)$

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

Explanation of significant accounts: $(6)$

(a) Cash and cash equivalents

(b) Notes and accounts receivable

(d) Investments accounted for using equity method

(h) Lease receivables

Bonds Payable $(i)$

(ii) Defined contribution plans

$(1)$ Income tax

(m) Capital and other equity

(iii) Retain earning

(iv) Treasury shares

Share-based payment $(n)$

(iii) Compensation cost

(p) Revenue from contracts with customers

Disaggregation of revenue $(i)$

Contract balances $(i)$

$(q)$ Remuneration to employees

Non-operating income and expenses $(r)$

Other incomes $(i)$

(ii) Other gains and losses

(iii) Finance costs

Financial instruments $(s)$

$(i)$ Liquidity risk

$(ii)$ Currency risk

(7) Related-party transactions:

(ii) Consigned out for processing

(iii) Financing from related parties

(iv) Property transactions

Acquisition of equipment $1)$

Acquisition of Financial Assets $2)$

$(v)$ Leases

(c) Key management personnel compensation

(8) Pledged assets:

(9) Commitments and contingencies:

(10) Losses Due to Major Disasters: None

(11) Subsequent Events:

$(12)$ Other:

(13) Other disclosures:

(In Thousands of New Taiwan Dollars / Shares)

(c) Information on investment in mainland China:

The names of investees in Mainland China, the main businesses and products, and other information: $(i)$

(ii) Limitation on investment in Mainland China:

(iii) Significant transactions: None

(14) Segment information:

More from NTC

NTC Interim / Quarterly Report 2019

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