NTC - Interim / Quarterly Report 2021

Stock Code:2408

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Review Report For the Six Months Ended June 30, 2021 and 2020

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 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Review Report 4. Consolidated Balance Sheets 5. Consolidated Statements of Comprehensive Income 6. Consolidated Statements of Changes in Equity 7. Consolidated Statements of Cash Flows 8. Notes to the Consolidated Financial Statements (1) Company history (2) Approval date and procedures of the consolidated financial statements (3) New standards, amendments and interpretations adopted (4) Summary of significant accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Commitments and contingencies (10) Losses Due to Major Disasters (11) Subsequent Events (12) Other (13) Other disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in mainland China (d) Information on major shareholders (14) Segment information	Page
	1 2 3 4 5 6 7 8 8 8～10 10～11 11 12～34 34～37 37 37～38 38 38 39 40～41 41 42 42 43

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

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KPMG

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

Independent Auditors’ Review Report

To the Board of Directors of Nanya Technology Corporation：

Introduction

We have reviewed the accompanying consolidated balance sheets of Nanya Technology Corporation (the "Company") and its subsidiaries (together referred to as the "Group") as of June 30, 2021 and 2020, the related consolidated statements of comprehensive income for the three months and six months ended June 30, 2021 and 2020, as well as the changes in equity and cash flows for the six months ended June 30, 2021 and 2020, and notes to the consolidated financial statements, including a summary of significant accounting policies. The management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard ("IASs") 34, “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the Basis for Qualified Conclusion paragraph for the six months ended June 30, 2020, we conducted our reviews in accordance with Statement of Auditing Standards 65, “ Review of Financial Information Performed by the Independent Auditor of the Entity” . A review of the consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the generally accepted auditing standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion of the consolidated financial report for the six months ended June 30, 2020

As stated in Note 4(b), the consolidated financial statements included the financial statements of certain nonsignificant subsidiaries, which were not reviewed by independent auditors. These financial statements reflect the total assets amounting to $3,776,449 thousand, constituting 2.25% of the consolidated total assets; and the total liabilities amounting to $32,601 thousand, constituting 0.21% of the consolidated total liabilities as of June 30, 2020, as well as the total comprehensive income amounting to $10,117 thousand and $32,868 thousand, constituting 0.40% and 0.74% of the consolidated total comprehensive income for the three months and six months ended June 30, 2020, respectively.

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

3-1

Unqualified Conclusion and Qualified Conclusion

Except for the adjustments for the six months ended June 30, 2020, 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 for the six months ended June 30, 2020 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 June 30, 2021 and 2020, and of its consolidated financial performance for the three months and six months ended June 30, 2021 and 2020, as well as of its consolidated cash flows for the six months ended June 30, 2021 and 2020, 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 $4,823,727 thousand , constituting 2.87% of the consolidated total assets as of June 30, 2020, and the share of profit of associates accounted for using the equity method amounted to $134,160 thousand and $252,566 thousand, constituting 3.90% and 4.38% of the consolidated total profit before tax for the three months and six months ended June 30, 2020, 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) August 4, 2021

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.

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

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with the generally accepted auditing standards as of June 30, 2021 and 2020

Nanya Technology Corporation and Subsidiaries

Consolidated Balance Sheets

June 30, 2021, December 31 and June 30, 2020 (Expressed in Thousands of New Taiwan Dollars)

June 30, 2021 Assets Amount % Current assets: 1100 Cash and cash equivalents (Note 6(a)) $ 67,737,583 38 1150 Notes receivable, net (Notes 6(b)(p)) 4 - 1170 Accounts receivable, net (Notes 6(b)(p)) 10,812,992 6 1180 Accounts receivable due from related parties, net (Note 6(b)(p) and 7) - - 1200 Other receivables (Notes 6(c)) 1,398,955 1 1210 Other receivables due from related parties (Note 7) 325,475 - 1310 Inventories (Note 6(d)) 11,077,152 6 1410 Prepayments (Note 6(e)) 1,000,113 1 1470 Other current assets (Note 6(e)) 635,130 - Total current assets 92,987,404 52 Non-current assets: 1550 Investments accounted for using equity method (Note 6(f)) 5,106,165 3 1600 Property, plant and equipment (Notes 6(g)(v) and 7) 75,957,021 43 1755 Right-of-use assets (Notes 6(h)) 1,753,850 2 1780 Intangible assets 1,137,642 - 1840 Deferred tax assets 314,214 - 194D Long-term financial lease payments receivable (Note 6(i)) 371,855 - 1990 Other non-current assets (Note 8) 132,678 - Total non-current assets 84,773,425 48 Total assets $ 177,760,829 100	December 31, 2020 Amount % 51,725,906 31 - - 7,867,928 4 8,237 - 1,496,119 1 - - 14,126,982 9 559,481 - 959,948 1 76,744,601 46 5,160,505 3 79,728,620 49 1,790,192 1 1,258,380 1 353,567 - 483,436 - 112,679 - 88,887,379 54 165,631,980 100	June 30, 2020 Amount % 51,335,225 30 37 - 9,892,078 6 - - 1,734,762 1 311,324 - 16,586,421 10 742,259 - 871,416 1 81,473,522 48 4,823,727 3 80,497,815 48 - - 258,282 - 519,150 - 589,351 1 51,079 - 86,739,404 52 168,212,926 100 Liabilities and Equity Current liabilities: 2170 Accounts payable 2180 Accounts payable to related parties (Note 7) 2200 Other payables 2216 Dividends payable (Note 6(m)) 2220 Other payables to related parties (Note 7) 2230 Current tax liabilities 2280 Current lease liabilities (Notes 6(j) and 7) 2399 Other current liabilities Total current liabilities Non-Current liabilities: 2570 Deferred tax liabilities 2580 Non-current lease liabilities (Notes 6(j) and 7) 2640 Net defined benefit liability, non-current 2670 Other non-current liabilities Total non-current liabilities Total liabilities Equity (Note 6(m)): 3110 Ordinary shares 3140 Advance receipts for share capital 3200 Capital surplus 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings 3400 Other equity interest 3500 Treasury shares Total equity Total liabilities and equity	June 30, 2021		December 31, 2020		June 30, 2020
			Amount %		Amount %		Amount %
					2,027,096 1 84,678 - 4,210,690 2 780 - 1,069,910 1 1,131,327 1 178,432 - 75,759 - 8,778,672 5 4,042 - 1,617,652 1 566,283 - 853,304 1 3,041,281 2 11,819,953 7 30,935,939 19 36,264 - 32,451,689 20 14,110,871 8 1,041,100 1 79,394,603 48 (3,011,507) (2) (1,146,932) (1) 153,812,027 93 165,631,980 100		2,042,402 1 95,815 - 5,947,646 3 4,600,756 3 1,151,802 1 1,163,028 1 - - 1,044 - 15,002,493 9 1,179 - - - 573,613 - 171,009 - 745,801 - 15,748,294 9 30,746,609 18 512,665 - 32,086,782 19 14,110,871 8 1,041,100 1 76,853,667 46 (1,740,130) (1) (1,146,932) - 152,464,632 91 168,212,926 100

See accompanying notes to consolidated financial statements.

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

Nanya Technology Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income

For the three months and six months ended June 30, 2021 and 2020

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

For the three months ended June 30, 2021 2020 Amount % Amount % 4000 Operating revenue (Note 6(p)) $ 22,637,468 100 16,489,357 100 5000 Operating costs (Notes 6(g)(h)(j)(k)(n)(q) and 7) (13,054,142) (58) (11,447,186) (69) Gross profit from operations 9,583,326 42 5,042,171 31 Operating expenses (Notes 6(g)(h)(j)(k)(n)(q) and 7): 6100 Selling expenses (230,798) (1) (232,303) (1) 6200 Administrative expenses (407,811) (2) (342,048) (2) 6300 Research and development expenses (1,881,648) (8) (1,238,645) (8) Total operating expenses (2,520,257) (11) (1,812,996) (11) Net operating income 7,063,069 31 3,229,175 20 Non-operating income and expenses (Notes 6(g)(i)(j)(r) and 7): 7100 Interest income 81,347 - 228,948 1 7020 Other gains and losses, net (339,078) (1) (156,009) (1) 7050 Finance costs (5,946) - (195) - 7060 Share of profit of associates accounted for using equity method, net 120,448 - 134,160 1 Total non-operating income and expenses (143,229) (1) 206,904 1 7900 Profit from continuing operations before tax 6,919,840 30 3,436,079 21 7950 Income tax expenses (Note 6(l)) (756,473) (3) (215,837) (1) Profit 6,163,367 27 3,220,242 20 8300 Other comprehensive income (loss) (Note 6(m)): 8310 Components of other comprehensive income (loss) income that will not be reclassified to profit or loss 8320 Share of other comprehensive income (loss) of associates accounted for using equity method, components of other comprehensive income (loss) that will not be reclassified to profit or loss (26,609) - 86,323 1 8349 Less: Income tax related to components of other comprehensive income (loss) that will not be reclassified to profit or loss - - - - Components of other comprehensive income (loss) that will not be reclassified to profit or loss (26,609) - 86,323 1 8360 Components of other comprehensive (loss) income that may be reclassified to profit or loss 8361 Exchange differences on translation of foreign financial statements (810,208) (3) (749,080) (5) 8399 Less:Income tax related to components of other comprehensive income (loss) that may be reclassified to profit or loss - - - - Components of other comprehensive (loss) income that may be reclassified to profit or loss (810,208) (3) (749,080) (5) 8300 Other comprehensive (loss) income, net (836,817) (3) (662,757) (4) 8500 Comprehensive income $ 5,326,550 24 2,557,485 16 Earnings per share (Note 6(o)) 9750 Basic earnings per share $ 2.00 1.05 9850 Diluted earnings per share $ 1.99 1.05	For the three months ended June 30,	For the three months ended June 30,	For the six mo June	nths ended 30, 2020 Amount % 30,908,227 100 (22,429,857) (73) 8,478,370 27 (411,293) (1) (695,941) (2) (2,309,764) (8) (3,416,998) (11) 5,061,372 16 478,450 1 (31,991) - (567) - 252,566 1 698,458 2 5,759,830 18 (611,314) (2) 5,148,516 16 (136,751) - - - (136,751) - (562,279) (2) - - (562,279) (2) (699,030) (2) 4,449,486 14 1.68
		2020 Amount % 16,489,357 100 (11,447,186) (69) 5,042,171 31 (232,303) (1) (342,048) (2) (1,238,645) (8) (1,812,996) (11) 3,229,175 20 228,948 1 (156,009) (1) (195) - 134,160 1 206,904 1 3,436,079 21 (215,837) (1) 3,220,242 20 86,323 1 - - 86,323 1 (749,080) (5) - - (749,080) (5) (662,757) (4) 2,557,485 16 1.05 1.05	2021 Amount % 40,368,081 100 (25,622,743) (63) 14,745,338 37 (409,102) (1) (721,942) (2) (3,524,241) (9) (4,655,285) (12) 10,090,053 25 146,211 - (225,836) (1) (11,995) - 255,412 1 163,792 - 10,253,845 25 (1,386,145) (3) 8,867,700 22 15,723 - - - 15,723 - (795,939) (2) - - (795,939) (2) (780,216) (2) 8,087,484 20 2.88 2.86
				1.67

See accompanying notes to consolidated financial statements.

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

Nanya Technology Corporation and Subsidiaries

Consolidated Statements of Changes in Equity For the six months ended June 30, 2021 and 2020 (Expressed in Thousands of New Taiwan Dollars)

Ordinary shares	Ordinary shares	Special reserve	Unappropriated retained earnings	O	her equity interes	Total equity
				Exchange differences on translation of foreign financial statements	Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income
$ 30,733,649 - - - - - - - 12,960 $ 30,746,609 $ 30,935,939 - - - - - - 34,180 - $ 30,970,119		273,834	78,054,876 5,148,516 - 5,148,516 (982,459) (767,266) (4,600,000) - - 76,853,667 79,394,603 8,867,700 - 8,867,700 (768,945) (1,970,407) (4,000,000) - - 81,522,951	(938,039) - (562,279) (562,279) - - - - - (1,500,318) (2,893,732) - (795,939) (795,939) - - - - - (3,689,671)	(103,061) - (136,751) (136,751) - - - - - (239,812) (117,775) - 15,723 15,723 - - - - - (102,052)	152,011,553
		- -				5,148,516 (699,030)
		-				4,449,486
		- 767,266 - - -				- - (4,600,000) 56,560 547,033
		1,041,100				152,464,632
	$ 30,935,939	1,041,100				153,812,027
	- -	- -				8,867,700 (780,216)
	-	-				8,087,484
	- - - 34,180 -	- 1,970,407 - - -				- - (4,000,000) 62,313 685,459
	$ 30,970,119	3,011,507				158,647,283

See accompanying notes to consolidated financial statements.

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

Nanya Technology Corporation and Subsidiaries

Consolidated Statements of Cash Flows

For the six months ended June 30, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from operating activities: Profit before tax Adjustments: Adjustments to reconcile profit: Depreciation expense Amortization expense Interest expense Interest income Share-based payments Share of profit of associates accounted for using equity method Gain or loss on disposal of property, plant and equipment Reversal of impairment loss on non-financial assets Unrealized foreign exchange gain or loss Others Total adjustments to reconcile profit Changes in operating assets and liabilities: Notes and accounts receivable (including related parties) Other receivables Inventories prepayments Other current assets Accounts payable (including related parties) Other payables (including related parties) Other current liabilities Net defined benefit liability Other non-current liabilities Total net changes in operating assets and liabilities Cash inflow generated from operations Interest received Interest paid Income taxes paid Net cash flows from operating activities Cash flows used in investing activities: Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Increase in refundable deposits Acquisition of intangible assets Decrease in lease and installment receivables Increase in other non-current assets Net cash flows used in investing activities Cash flows from financing activities: Decrease in guarantee deposits received Decrease in other payables to related parties Payment of lease liabilities Exercise of employee share options Treasury shares transferred to employees Net cash flows from financing activities Effect of exchange rate changes on cash and cash equivalents Net increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period		For the six mo June	nths ended 30, 2020 5,759,830

			7,114,433 44,826 567 (478,450) 56,560 (252,566) (20) - 60,436 (30,748)
			6,515,038
			(2,613,671) (88,060) 1,536,075 (100,256) 123,710 (638,712) (736,395) (91,710) (2,283) (6,838)
			(2,618,140)
			9,656,728 421,524 (217) (928,282)
			9,149,753
			(1,857,977) 20 (4,399) (53,327) 132,165 (3,905)
			(1,787,423)
			(9,938) (122) (100,336) 547,033 -
			436,637
			(612,721)
			7,186,246 44,148,979
			51,335,225

See accompanying notes to consolidated financial statements.

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

Notes to the Consolidated Financial Statements

June 30, 2021 and 2020

(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 August 4, 2021.

(3) New standards, amendments and interpretations adopted:

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

The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2021:

●Amendments to IFRS 4 “Extension of the Temporary Exemption from Applying IFRS 9”
●Amendments to IFRS 9, IAS39, IFRS7, IFRS 4 and IFRS 16 “Interest Rate Benchmark Reform— Phase 2”
●Amendments to IFRS 16 “Covid-19-Related Rent Concessions beyond June 30, 2021”
(b) The impact of IFRS issued by the FSC but not yet effective

The Group assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2022, would not have a significant impact on its consolidated financial statements:

－
●Amendments to IAS 16 “Property, Plant and Equipment Proceeds before Intended Use”
－
●Amendments to IAS 37 “Onerous Contracts Cost of Fulfilling a Contract”
●Annual Improvements to IFRS Standards 2018–2020
●Amendments to IFRS 3 “Reference to the Conceptual Framework”

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

Standards or
Interpretations
Amendments to IAS 1
“Classification of Liabilities
as Current or Non-current”
Amendments to IAS 1
“Disclosure of Accounting
Policies”
Amendments to IAS 8
“Definition of Accounting
Estimates”

Content of amendment
Effective date per
IASB
The
amendments
aim
to
promote
consistency in applying the requirements
by helping companies determine whether,
in the statement of balance sheet, debt and
other
liabilities
with
an
uncertain
settlement date should be classified as
current (due or potentially due to be settled
within one year) or non-current. The
amendments
include
clarifying
the
classification requirements for debt a
company might settle by converting it into
equity.
January 1, 2023
The key amendments to IAS 1 include:
●requiring companies to disclose their
material accounting policies rather than
their significant accounting policies;
●clarifying
that
accounting
policies
related to immaterial transactions, other
events or conditions are themselves
immaterial and as such need not be
disclosed; and
●clarifying
that
not
all
accounting
policies
that
relate
to
material
transactions, other events or conditions
are themselves material to a company’s
financial statements.
January 1, 2023
The
amendments
introduce
a
new
definition
for
accounting
estimates:
clarifying that they are monetary amounts
in the financial statements that are subject
to measurement uncertainty.
The
amendments
also
clarify
the
relationship between accounting policies
and accounting estimates by specifying that
a company develops an accounting estimate
to achieve the objective set out by an
accounting policy.
January 1, 2023

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Standards or Interpretations Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities arising from a Single Transaction”	Content of amendment Effective date per IASB The amendments narrowed the scope of the recognition exemption so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. January 1, 2023

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

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

●Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
●IFRS 17 “ Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”

(4) Summary of significant accounting policies:

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the preparation and guidelines of IAS 34 “Interim Financial Reporting” which are endorsed and issued into effect by FSC and do not include all of the information required by the Regulations and International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations endorsed and issued into effect by the FSC (hereinafter referred to IFRS endorsed by the FSC) for 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, 2020. For the related information, please refer to note 4 of the consolidated financial statements for the year ended December 31, 2020.

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

Investor	The name of subsidiaries	Business activity		Shareholding	June 30, 2020 Note % 100.00 Note % 100.00 Note % 100.00 Note % 100.00 Note
			June 30, 2021	December 31, 2020
The Company The Company The Company The Company	NANYA TECHNOLOGY CORP. U.S.A NANYA TECHNOLOGY CORP. Delaware NANYA TECHNOLOGY CORP. H.K. NANYA TECHNOLOGY CORP. Japan	Sales of semiconductor products Design of semiconductor products Sales of semiconductor products Sales of semiconductor products	% 100.00 % 100.00 % 100.00 % 100.00	% 100.00 % 100.00 % 100.00 % 100.00

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Investor	The name of subsidiaries	Business activity		Shareholding	June 30, 2020 Note % 100.00 % 100.00 Note % 100.00 Note
			June 30, 2021	December 31, 2020
The Company NANYA TECHNOLOGY CORP. H.K. NANYA TECHNOLOGY CORP. H.K.	NANYA TECHNOLOGY INTERNATIONAL LTD. NANYA TECHNOLOGY CORP., Europe GmbH NANYA TECHNOLOGY CORP. Shenzhen	General investment business Sales of semiconductor products Sales of semiconductor products	% 100.00 % 100.00 % 100.00	% 100.00 % 100.00 % 100.00

Note: The company is a non significant subsidiary, its financial statements for the six months ended June 30, 2020 have not been reviewed by independent auditors.

(ii) Subsidiaries not included in the consolidated financial statements: None.

(c) Employee benefits

The pension cost in the interim period was calculated and disclosed on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior fiscal year, and was adjusted according to material volatility of the market, no material reimbursement and settlement or other material one-time events since prior fiscal year.

(d) Income taxes

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

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 and deferred taxes based on its proportionate size.)

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

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

The preparation of the consolidated interim financial statements, estimates and underlying assumptions are reviewed on an ongoing basis which are in conformity with the consolidated financial statements for the year ended December 31, 2020. For the related information, please refer to note 5 of the consolidated financial statements for the year ended December 31, 2020.

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(6) Explanation of significant accounts:

(a) Cash and cash equivalents

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, 2020. Please refer to Note 6 of the 2020 annual consolidated financial statements.

Petty cash Checking accounts and demand deposit Cash equivalents: Time deposits Commercial paper Repurchase agreements collateralized by corporate bonds	June 30, 2021 $ 94 29,564,558 37,072,977 449,954 650,000 $ 67,737,583	December 31, 2020 108 14,820,415 34,398,887 2,014,416 492,080 51,725,906	June 30, 2020
			123 9,950,341 38,397,222 2,263,681 723,858
			51,335,225

Time deposits are highly liquid investment that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value, as well as are held for the purpose of meeting short term cash commitments rather than for investment or other purposes. Thereafter, they are classified as cash equivalents.

(b) Notes and accounts receivable

Notes receivable - from non-operating activities Accounts receivable (including related parties)-measured at amortized cost	June 30, 2021 $ 4 10,812,992 $ 10,812,996	December 31, 2020 - 7,876,165 7,876,165	June 30, 2020
			37 9,892,078
			9,892,115

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 (including related parties). To measure the expected credit losses, notes and accounts receivables (including related parties) 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.

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The loss allowance provision for notes and account receivable (including related parties) was determined as follows:

	June 30, 2021
Notes and accounts receivables gross carrying amount Weighted average loss rate $ 10,711,291 - 101,705 - $ 10,812,996 December 31, 2020		Loss allowance provision
		- -
		-

	Weighted average loss rate - - June 30, 2020	Loss allowance provision
		- -
		-

	Weighted average loss rate - - -	Loss allowance provision
		- - -
		-

The Group did not recognize any allowance for impairment as there were no uncollected notes and accounts receivable (including related parties) that were past due as of June 30, 2021, December 31, and June 30, 2020.

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Other receivables

Tax refund receivable Lease payment receivable Overpayment receivable of water utility bill Interest receivable Others	June 30, 2021 $ 1,050,011 217,495 58,985 18,747 53,717 $ 1,398,955	December 31, 2020 1,231,318 206,450 - 29,732 28,619 1,496,119	June 30, 2020
			1,443,561 195,965 - 65,941 29,295
			1,734,762

For credit risk information, please refer to Note 6(s).

(d) Inventories

Raw materials Work in progress Finished goods	June 30, 2021 $ 405,219 7,023,620 3,648,313 $ 11,077,152	December 31, 2020 350,906 6,578,665 7,197,411 14,126,982	June 30, 2020
			353,603 6,796,604 9,436,214
			16,586,421

The Group did not recognize any loss or gain from devaluation of inventories as there was no indication of impairment or net realizable value of inventories has increased because the circumstance that caused the inventory devaluation in prior period has improved on inventories for the three months and six months ended June 30, 2021 and 2020.

(e) Prepayments and other current assets
(i) Prepayments

Prepaid expense Prepayments to purchases (ii) Other current assets Project consumables Suppliers	June 30, 2021 $ 806,373 193,740 $ 1,000,113 June 30, 2021 $ 421,696 213,434 $ 635,130	December 31, 2020 556,428 3,053 559,481 December 31, 2020 676,200 283,748 959,948	June 30, 2020
			708,046 34,213
			742,259
			June 30, 2020
			593,816 277,600
			871,416

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(f) Investments accounted for using equity method

A summary of the Group’ s financial information for investments accounted for using the equity method at the reporting date is as follows:

Associates	June 30, 2021 $ 5,106,165	December 31, 2020 5,160,505	June 30, 2020
			4,823,727

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

Name of Associates Formosa Advanced Technologies Co., Ltd. (FATC)	Nature of Relationship to the Group	Registration Country	Percentage of ownership	Percentage of ownership
			June 30, 2021	December 31, 2020 June 30, 2020 % 32.00 % 32.00
	It mainly engages in assembling and testing of module products, as well as in the research and development of integrated circuits.	Taiwan	% 32.00

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

Formosa Advanced Technologies Co., Ltd.	June 30, 2021 $ 17,711,000	December 31, 2020 16,716,000	June 30, 2020 16,915,000

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

The financial information of FATC was as follows:

Current assets Non-current assets Current liabilities Non-current liabilities Net asset Net asset contributed to FATC	June 30, 2021 $ 9,261,910 5,154,067 (2,316,147) (532,887) $ 11,566,943 $ 11,566,943	December 31, 2020 7,816,528 5,792,482 (1,238,254) (555,589) 11,815,167 11,815,167	June 30, 2020 7,290,803 6,135,572 (2,087,982) (576,774) 10,761,619 10,761,619

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the three months ended June 30, 2021 2020 Operating revenue $ 2,466,909 2,387,614 Profit $ 358,514 344,127 Other comprehensive loss (83,153) 269,757 Total comprehensive income $ 275,361 613,884 Total comprehensive income contributed to FATC $ 275,361 613,884 Share of net assets of the major associate at January 1 Total comprehensive income contributed to the Group Cash dividends contributed to the Group Share of net assets of major associate at June 30 Add: good will Less: unrealized profits on upstream sales net assets of the associates Total carrying amount of the major associate	For the three months ended June 30,	For the three months ended June 30,
		2020
		2,387,614
		344,127 269,757
		613,884
		613,884

(g) Property, plant and equipment

Cost: Balance as of January 1, 2021 Additions Disposals Reclassification Effect of exchange rate change Balance as of June 30, 2021 Balance as of January 1, 2020 Additions Disposals Reclassification Effect of exchange rate change Balance as of June 30, 2020	Land $ 1,013,924 - - - - $ 1,013,924 $ 1,013,924 - - - - $ 1,013,924	Building 8,144,863 8,420 - 12,097 (137) 8,165,243 8,157,551 - - - (18) 8,157,533	Machinery and equipment 199,055,350 415,467 (150,672) 5,147,947 (1,546) 204,466,546 195,903,720 411,413 (33,614) 1,005,593 17 197,287,129	Other equipment 836,742 14,847 (2,644) 19,471 (516) 867,900 919,015 21,666 (149,348) 14,808 (559) 805,582	Under construction 6,371,857 3,138,281 - (5,179,515) - 4,330,623 2,249,124 1,687,388 - (1,188,993) - 2,747,519	Total 215,422,736 3,577,015 (153,316) - (2,199)
						218,844,236
						208,243,334 2,120,467 (182,962) (168,592) (560)
						210,011,687

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Accumulated depreciation / impairment: Balance as of January 1, 2021 Depreciation for the period Disposals Reclassification Gain from impairment loss Effect of exchange rate change Balance as of June 30, 2021 Balance as of January 1, 2020 Depreciation for the period Disposals Reclassification Effect of exchange rate change Balance as of June 30, 2020 Carrying amounts: Balance as of June 30, 2021 Balance as of December 31, 2020 Balance as of June 30, 2020 (h) Right-of-use assets Cost： Balance at January 1, 2021 Additions Balance at June 30, 2021 Balance at January 1, 2020 Decrease Balance at June 30, 2020 Accumulated depreciation: Balance at January 1, 2021 Depreciation for the period Balance at June 30, 2021 Balance at January 1, 2020 Depreciation for the period Decrease Balance at June 30, 2020 Carrying Amount: Balance at June 30, 2021 Balance at December 31, 2020 Balance at June 30, 2020	Land $ - - - - - - $ - $ - - - - - $ - $ 1,013,924 $ 1,013,924 $ 1,013,924	Building 2,609,251 160,224 - - - (118) 2,769,357 2,295,380 160,011 - - (15) 2,455,376 5,395,886 5,535,612 5,702,157	Machinery and equipment 132,426,497 7,160,359 (150,639) (11,952) (869) (1,225) 139,422,171 119,651,185 6,834,290 (33,614) (42,056) 310 126,410,115 65,044,375 66,628,853 70,877,014	Other equipment 658,368 28,264 (2,615) 11,952 - (282) 695,687 766,657 20,910 (149,348) 10,559 (397) 648,381 172,213 178,374 157,201	co	Under nstruction Total - 135,694,116 - 7,348,847 - (153,254) - - - (869) - (1,625) - 142,887,215 - 122,713,222 - 7,015,211 - (182,962) - (31,497) - (102) - 129,513,872 4,330,623 75,957,021 6,371,857 79,728,620 2,747,519 80,497,815 Land $ 1,884,277 59,707 $ 1,943,984 $ 297,829 (297,829) $ - $ 94,085 96,049 $ 190,134 $ 198,607 99,222 (297,829) $ - $ 1,753,850 $ 1,790,192 $ -	Total 135,694,116 7,348,847 (153,254) - (869) (1,625)
							142,887,215
							122,713,222 7,015,211 (182,962) (31,497) (102)
							129,513,872
							75,957,021
							79,728,620
							80,497,815

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) 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 (including land, building and its facilities) 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 land was USD1,990 thousand and leased building (including facilities) was USD 13,010 thousand from January 1, 2010 to December 31, 2018; the first yearly renewal rentals for the leased land is USD1,990 thousand and building (including facilities) is USD8,010 thousand from January 1, 2019 to December 31, 2023; the subsequent yearly renewal rentals for the leased land will be USD1,990 thousand and building (including facilities) will be USD 10 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 thousand; 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 six months ended June 30, 2021 and 2020, the Group recognized the interest revenue of $15,159, $20,200, $31,629 and $41,581, respectively, from the amortization of unrealized interest revenue.

A maturity analysis of lease receivables, showing the undiscounted lease receivables to be received after the reporting date is as follows:

Less than one year One to two years Two to three years Three to four years Total lease payments receivable Unearned finance income Present value of lease payments receivable	June 30, 2021 $ 264,330 264,330 132,165 - 660,825 (71,475) $ 589,350	December 31, 2020 264,330 264,330 264,330 - 792,990 (103,104) 689,886	June 30, 2020 264,330 264,330 264,330 132,165 925,155 (139,839) 785,316

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For credit risk information, please refer to Note 6(s).

(j) Lease liabilities

Lease liabilities
Current Non-current	June 30, 2021 $ 193,909 $ 1,571,183	December 31, 2020 178,432 1,617,652	June 30, 2020
			-
			-

For the maturity analysis, please refer to Note 6(s).

The amounts recognized in profit or loss were as follows:

For the three months ended June 30	For the three months ended June 30	For the six months ended June 30	For the six months ended June 30
2021 $ 5,946 $ 23,370	2020	2021 11,981 47,325	2020
	118		412
	20,119		42,459

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

Total cash outflow for leases	For the six months ended June 30,	For the six months ended June 30,
	2021 $ 149,780	2020
		142,795

(i) Land lease

The Group leases its land with a period of 3 to 10 years. The lease included an option to terminate the contract, which is exercisable by the Group. The lease payment changes annually based on a local price index.

(ii) Other leases

The Group leases staff dorm, factory, parking lots and office spaces which are short-term leases. The Group applied the recognition exemptions and elected not to recognize its right-ofuse assets and lease liabilities for these leases.

(k) Employee benefits

(i) Defined benefit plan

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, 2020 and 2019 .

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

Operating cost Operating expenses Total	For the three months ended June 30, 2021 2020 $ 1,422 1,549 938 944 $ 2,360 2,493	For the six months ended June 30,	For the six months ended June 30,
	2021 $ 1,422 938 $ 2,360	2021 2,811 1,910 4,721	2020 3,134 1,852 4,986

(ii) Defined contribution plans

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

For the three months ended June 30, 2021 2020 $ 24,264 23,613 21,820 19,912 $ 46,084 43,525	For the six months ended June 30,	For the six months ended June 30,
2021 $ 24,264 21,820 $ 46,084	2021 47,463 45,996 93,459	2020
		46,723 40,249
		86,972

(l) Income tax

(i) The Group’s income tax expenses in the years 2021 and 2020 were as follows:

Current tax expense Current period Adjustment for prior periods Surtax on undistributed earnings Deferred tax expense (income) Tax expense	For the three months ended June 30, 2021 2020 $ 1,332,697 669,564 (639,103) (588,184) 47,505 171,974 15,374 (37,517) $ 756,473 215,837	For the six months ended June 30,	For the six months ended June 30,
		2021 1,870,867 (609,355) 47,505 77,128 1,386,145	2020 990,876 (588,184) 171,974 36,648 611,314

(ii) The Company's tax returns have been examined by the ROC tax authority through 2019.

(m) Capital and other equity

Except as described below, there was no material change in equity for the six months ended June 30, 2021 and 2020. Please refer to Note 6(k) of the consolidated financial statements as of and for the year ended December 31, 2020 for the related detail disclosures on equity.

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Ordinary Share

On February 26, and May 5, 2021, 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 2,841 thousand and 577 thousand ordinary shares at par value, respectively, with an issuing prices of $28.5 to $29.6 and $29.6 per share, which totaled $34,180. All issued shares were paid up upon issuance and the related process for registration had been completed.

For the second quarter of 2021, the Company’s ordinary shares were derived from the exercise of employee share options. Accordingly, the Company had issued 39 thousand ordinary shares, at issuing prices of $28.5 to $29.6 per share, which totaled $1,123, which was recognized as advance receipts for share capital as of June 30, 2021.

(ii) Capital surplus

Premium from the issuance of stock Treasury share transaction Employee stock option plans Expired employee stock option plans Past due unclaimed dividends Change in net equity of associates accounted for using equity method	June 30, 2021 $ 29,461,620 229,425 2,790,727 265,380 79 38 $ 32,747,269	December 31, 2020 29,398,346 - 2,790,727 262,499 79 38 32,451,689	June 30, 2020
			29,035,392 - 2,788,867 262,499 - 24
			32,086,782

(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 not exceed 50% of the Company's total dividend distribution every year.

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

1) Legal reserve

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) Earnings distribution

The earnings distribution for 2020 has reached the statutory resolution threshold through electronic voting on May 24, 2021 and was approved during the shareholders’ meeting held on Aug 4, 2021.

In addition, the earnings distribution for 2019 was approved by the shareholders’ meeting held on May 28, 2020.The amounts of dividends distributions to the shareholders were as follows:

Legal reserve appropriated Special reserve appropriated Dividends attributable to ordinary shareholders: Cash dividends Dividends attributable to ordinary shareholders: Cash dividends	For the year ended December 31,	For the year ended December 31,
	2021 2020 $ 768,945 982,459 $ 1,970,407 767,266 For the year ended December 31, 2020	2020
		982,459
		767,266
		Amount 4,000,000
	Dividends per share $ 1.50	Amount 4,600,000

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(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.

In accordance with the requirements of the Company Act of Taiwan, the Company does not hold any shareholders’ rights before transferring its treasury shares.

Balance as of January 1, 2021 Transfer for the period Balance as of June 30, 2021 Balance as of January 1, 2020 (Balance as of June 30, 2020)	Transferring to employees thousand shares Amount 20,000 $ 1,146,932 (7,902) (453,153) 12,098 $ 693,779 20,000 $ 1,146,932

(v) Other equity (net of tax)

Balance as of January 1, 2021 Exchange differences on translation of foreign financial statements Unrealized loss from financial of assets measured at fair value through other comprehensive loss, associates accounted for using equity method Balance as of June 30, 2021 Balance as of January 1, 2020 Exchange differences on translation of foreign financial statements Unrealized gain from financial of assets measured at fair value through other comprehensive income, associates accounted for using equity method Balance as of June 30, 2020	Exchange differences on translation of foreign financial statements $ (2,893,732) (795,939) - $ (3,689,671) $ (938,039) (562,279) - $ (1,500,318)	Unrealized loss from financial assets measured at fair value through other comprehensive income (117,775) - 15,723 (102,052) (103,061) - (136,751) (239,812)	Total (3,011,507) (795,939) 15,723 (3,791,723) (1,041,100) (562,279) (136,751) (1,740,130)

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(n) Share-based payment

Except as described below, there was no material change on the share-based payment transactions for the six months ended June 30, 2021 and 2020. Please refer to Note 6(l) of consolidated financial statements as of and for the year ended December 31, 2020 for related disclosures on share-based payment transactions.

(i) As of June 30, 2021, the Group has two share-based payment transactions as follows:

Grant date Grant unit Exercise price (dollar) Vesting conditions	The 1th batch of treasury shares transferred to employees The 2th batch of treasury shares transferred to employees 2021.1.15 2021.2.2 3,936 4,064 $57.4 $57.4 Immediately vested Immediately vested

The Group used Black-Scholes option pricing method in measuring the fair value of the sharebased payment at the grant date.

(ii) Relevant information of employee stock option plans and the transfer of treasury shares

For the six months ended June 30,	For the six months ended June 30,	For the six months ended June 30,
2021 Weighted- average exercise (price TWD) Number of options (Thousand Units) $ 28.51 4,462 57.40 8,000 51.14 (10,088) 57.40 (98) 29.60 (6) 28.51 2,270 28.51 2,270	2020
Weighted- average exercise (price TWD) $ 28.51 57.40 51.14 57.40 29.60 28.51 28.51	Weighted- average exercise (price TWD) 29.25 - 29.20 - 29.25 29.27 29.20	Number of options (Thousand Units)
		28,202 - (18,734 - (2,359
		7,109
		6,684

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Compensation cost

Compensation cost arising from share options granted to employees Compensation cost arising from treasury shares transferred to employees Total	For the three months ended June 30,	For the three months ended June 30,		For the six months ended June 30,	For the six months ended June 30,
	2021 $ - - $ -	2020		2021 - 233,245 233,245	2020
		31,796 - 31,796			56,560 - 56,560

(o) Earnings per share

For the three June	months ended 30,	For the six months ended June 30,	For the six months ended June 30,
2021 $ 6,163,367 3,084,926 $ 2.00 $ 6,163,367 - 3,084,926 1,528 11,752 3,098,206 $ 1.99	2020	2021 8,867,700 3,083,166 2.88 8,867,700 3,083,166 1,738 13,671 3,098,575 2.86	2020
	3,220,242		5,148,516
	3,060,740		3,057,445
	1.05		1.68
	3,220,242		5,148,516
	- 3,060,740 10,894 7,408		3,057,445 13,777 10,416
	3,079,042		3,081,638
	1.05		1.67

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(p) Revenue from contracts with customers

(i) Disaggregation of revenue

	For the three months ended June 30, 2021	For the three months ended June 30, 2021
Manufacturing department Overseas sales department Total $ 7,272,842 377,673 7,650,515 - 915,354 915,354 56,995 378,174 435,169 45,596 99,735 145,331 8,693,180 2,401,103 11,094,283 39,185 208,456 247,641 145,498 496,503 642,001 - 332,421 332,421 16,149 168,055 184,204 101,979 110,756 212,735 67,459 710,355 777,814 $ 16,438,883 6,198,585 22,637,468 $ 16,407,557 6,198,333 22,605,890 31,326 252 31,578 $ 16,438,883 6,198,585 22,637,468 For the three months ended June 30, 2020		Total
		7,650,515 915,354 435,169 145,331 11,094,283 247,641 642,001 332,421 184,204 212,735 777,814
		22,637,468
		22,605,890 31,578
		22,637,468
Manufacturing department $ 4,631,989 - - 68,597 20,520 6,913,695 20,841 172,174 - 5,131 67,246 41,001 $ 11,941,194	Overseas sales department 564,411 44,184 409,406 326,871 155,890 1,969,219 191,142 301,578 138,545 133,850 50,461 262,606 4,548,163	Total
		5,196,400 44,184 409,406 395,468 176,410 8,882,914 211,983 473,752 138,545 138,981 117,707 303,607
		16,489,357

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

	For the three months ended June 30, 2020	For the three months ended June 30, 2020
Manufacturing department Overseas sales department Total $ 11,907,891 4,547,893 16,455,784 33,303 270 33,573 $ 11,941,194 4,548,163 16,489,357 For the six months ended June 30, 2021		Total
		16,455,784 33,573
		16,489,357
	Overseas sales department 743,846 1,465,076 671,434 155,417 3,967,455 315,610 820,361 562,725 340,815 161,251 1,169,136 10,373,126 10,372,619 507 10,373,126	Total
		14,226,026 1,465,076 778,970 219,887 19,652,321 363,994 1,138,805 562,725 363,165 294,788 1,302,324
		40,368,081
		40,298,765 69,316
		40,368,081

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the six months ended June 30, 2020	For the six months ended June 30, 2020	For the six months ended June 30, 2020
Manufacturing department $ 8,949,970 - - 122,391 46,754 13,023,926 32,629 267,472 - 54,736 149,811 144,084 $ 22,791,773 $ 22,727,762 64,011 $ 22,791,773 June 30, 2021 $ 4 10,812,992 $ 10,812,996	Overseas sales department 974,039 122,094 796,213 610,321 244,189 3,492,828 244,017 516,731 280,187 209,431 136,437 489,967 8,116,454 8,115,913 541 8,116,454 December 31, 2020 - 7,876,165 7,876,165	Total
		9,924,009 122,094 796,213 732,712 290,943 16,516,754 276,646 784,203 280,187 264,167 286,248 634,051
		30,908,227
		30,843,675 64,552
		30,908,227
		June 30, 2020 37 9,892,078
		9,892,115

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

(q) Remuneration to employees

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

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The estimated employee remuneration which was charged to profit or loss under operating costs or expense amounted to $834,315, $288,672, $936,644 and $451,893 for the three months and six months ended June 30, 2021 and 2020, respectively. This employee remuneration was estimated based on the Company's net income before tax before deducting any employee compensation, 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 change in accounting estimates and recognized through profit or loss in the following year.

There is no difference between the estimated amounts of employee remuneration for the year ended December 31, 2020 and 2019, and the financial statements for the year ended December 31, 2020 and 2019, which were approved by the Company's Board of Directors. Related information would be available at the Market Observation Post System website.

(r) Non-operating income and expenses
(i) Interest income

Interest income from bank deposits and short-term notes Interest income from financial lease receivables Other gains and losses Withholding tax refund Loss on disposal of property, plant and equipment Foreign exchange loss Reversal of impairment loss on non-financial assets Others	For the three months ended June 30, 2021 2020 $ 66,188 208,748 15,159 20,200 $ 81,347 228,948 For the three months ended June 30, 2021 2020 $ - - - 20 (370,188) (202,253) - - 31,110 46,224 $ (339,078) (156,009)	For the three months ended June 30, 2021 2020 $ 66,188 208,748 15,159 20,200 $ 81,347 228,948 For the three months ended June 30, 2021 2020 $ - - - 20 (370,188) (202,253) - - 31,110 46,224 $ (339,078) (156,009)	For the six months ended June 30, 2021 2020 114,582 436,869 31,629 41,581 146,211 478,450 For the six months ended June 30, 2021 2020 42,693 - (62) 20 (332,431) (124,214) 869 - 63,095 92,203 (225,836) (31,991)
		2021 - - (370,188) - 31,110 (339,078)	2021 42,693 (62) (332,431) 869 63,095 (225,836)
	$ $

(ii) Other gains and losses

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Finance costs

For the three months ended June 30,	For the three months ended June 30,	For the six months ended June 30,	For the six months ended June 30,
2021 $ 5,946 - - $ 5,946	2020	2021 $ 11,981 - 14 11,995	2020
	118 30 47		412 60 95
	195		567

(s) Financial instruments

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 note6(q) of the consolidated financial statements for the year ended December 31, 2020.

(i) For credit risk exposure of notes and accounts receivables (including related parties), please refer to note 6(b).

Other financial assets at amortized cost includes other receivables, time deposits and refundable deposits.

Considering that the Group deals only with other external parties with good credit standing and with the above investment grade financial institutions, all of the above financial assets are considered to have low credit risk.

As of June 30, 2021, December 31 and June 30, 2020, no allowance for impairment was provided because there was no indication of credit-impaired for the 12-month ECL or lifetime ECL allowance for other financial assets measured at amortized cost.

(ii) 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:

June 30, 2021 Non-derivative financial liabilities Accounts payable (including related parties) Dividend payable Other payables (including related parties) Lease liabilities (including current portion)		Carrying amount $ 3,457,497 4,000,775 6,714,039 1,765,092 $ 15,937,403	Contractual cash flow 3,457,497 4,000,775 6,714,039 1,873,484 16,045,795	Within 6 months 3,457,497 4,000,775 6,714,039 108,220 14,280,531	6-12months - - - 108,220 108,220	1-2years - - - 216,439 216,439	2-5years - - - 626,653 626,653	Over 5 years
								- - - 813,952
								813,952

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2020 Non-derivative financial liabilities Accounts Payable (including related parties) Dividend payable Other payable (including related parties) Lease liabilities (including current portion) June 30, 2020 Non-derivative financial liabilities Financing from other related parties Accounts payable (including related parties) Dividend payable Other payables (including related parties)		Carrying amount $ 2,111,774 780 5,280,600 1,796,084 $ 9,189,238 $ 3,328 2,138,217 4,600,756 7,096,120 $ 13,838,421	Contractual cash flow 2,111,774 780 5,280,600 1,914,405 9,307,559 3,430 2,138,217 4,600,756 7,096,120 13,838,523	Within 6 months 2,111,774 780 5,280,600 100,758 7,493,912 - 2,138,217 4,600,756 7,096,120 13,835,093	6-12months - - 100,758 100,758 3,430 - - - 3,430	1-2years - - 201,516 201,516 - - - - -	2-5years - - 604,549 604,549 - - - - -	Over 5 years
								- - 906,824
								906,824
								- - - -
								-

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

(iii) Market risk

1) Exposure to currency risk

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

Financial assets: Monetary items USD JPY EUR HKD Financial liabilities: Monetary items USD JPY EUR		June 30, 2021	New Taiwan Dollars 22,734,813 410,988 2,957 381 3,515,578 801,580 72,771	D	ecember 31, 2020	New Taiwan Dollars 8,538,574 209,992 1,452 5,000 3,282,411 346,675 5,184		June 30, 2020
	Foreign currency (in thousands) $ 815,745 1,626,388 89 106 $ 126,142 3,172,062 2,190	Exchange rate (dollars) 27.870 0.2527 33.2287 3.5982 27.870 0.2527 33.2287		Foreign currency (in thousands) 299,515 770,896 42 1,379 115,140 1,272,668 150	Exchange rate (dollars) 28.508 0.2724 34.560 3.626 28.508 0.2724 34.5600		Foreign currency (in thousands) 330,058 51,708 16 602,690 94,851 963,277 927	Exchange rate (dollars) New Taiwan Dollars 29.660 9,789,520 0.2737 14,152 33.0996 530 3.7994 2,289,860 29.660 2,813,281 0.2737 263,649 33.0996 30,683

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 (including related parties) and other payable (including related parties) which are denominated in different foreign currencies. A 1% appreciation and depreciation of the TWD against the USD, JPY, EUR and HKD as of June 30, 2021 and 2020 would have decreased and increased the net income before tax by $187,592 and $89,865 for the six months ended June 30, 2021 and 2020, 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.

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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 six months ended June 30, 2021 and 2020, foreign exchange loss (including realized and unrealized portions) amounted to $332,431 and $124,214, respectively.

(iv) interest rate analysis

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 and decreased by 1 basis points, the Group’ s net income would have increased or decreased by $0 and $33 for the six months ended June 30, 2021 and 2020 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.

(v) Fair value information

Types and fair value of financial instruments

The carrying amount of the Group's financial assets and liabilities are reasonably close to the fair value, and lease liabilities, disclosure of fair value information is not required:

	June 30, 2021	June 30, 2021	June 30, 2021
Book Value $ 67,737,583 10,812,996 1,506,935 589,350 $ 80,646,864 $ 3,457,497 4,000,775 6,714,039 1,765,092 $ 15,937,403	Level 1 - - - - - - - - - -	Fair Value
		Level 2 - - - - - - - - - -	Level 3 - - - - - - - - - -	Total - - - -
				-
				- - - -
				-

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

	December 31, 2020	December 31, 2020	December 31, 2020
Book Value $ 51,725,906 7,876,165 1,289,669 689,886 $ 61,581,626 $ 2,111,774 780 5,280,600 1,796,084 $ 9,189,238	Fair Value Level 1 Level 2 Level 3 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - June 30, 2020	Fair Value
			Level 3 - - - - - - - - - -	Total - - - -
				-
				- - - -
				-

	Level 1 - - - - - - - - -	Fair Value
		Level 2 - - - - - - - - -	Level 3 - - - - - - - - -	Total - - - -
				-
				- - -
				-

(t) Financial risk management

There were no significant changes in the Group's financial risk management and policies as disclosed in Note 6(r) of the consolidated financial statements for the year ended December 31, 2020.

(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, 2020. Also, management believes that there were no significant changes in the Group's capital management information as disclosed for the year ended December 31, 2020. Please refer to Note 6(s) of the consolidated financial statements for the year ended December 31, 2020 for further details.

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

The Group's investing and financing activities on non-cash transactions for the six months ended June 30, 2021 and 2020 were as follows:

(i) Acquisition of right-of-use assets by lease, please refer to Note6(h).

(ii)

Acquisition of property, plant and equipment Add: Payables on equipment at beginning of period Less: Payables on equipment at end of period Others Cash Paid	For the six months ended June 30, 2021 2020 $ 3,577,015 2,120,467 693,313 973,002 (1,552,262) (1,067,649) - (167,843) $ 2,718,066 1,857,977
	2021
	$ 3,577,015 693,313 (1,552,262) - $ 2,718,066

(iii) Reconciliation of liabilities arising from financing activities was as follow:

Non-Cash changes	Non-Cash changes	Non-Cash changes	June 30, 2021
Change in an index of lease payment Additions Decreased by other payables 17,429 42,278 (267) Non-Cash changes
			1,765,092
			June 30, 2020
Change in an index of lease payment -	Increased by other payables -	Interest expense 412
			-

(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

Formosa Petrochemical Corporation Nan Ya Photonics Incorporation Formosa Technologies (Nanjing) Corporation Formosa Sumco Technology Corporation Formosa Advanced Technologies Co., Ltd. (referred to as "FATC") Formosa Technologies Corporation Formosa Biomedical Technology Corp. Formosa Plastics Corporation Formosa Waters Technology Co., Ltd. Nan Ya Plastics Corporation

Relationship with the Group

The Group's other related parties The Group's other related parties The Group's other related parties The Group's other related parties The Group's associates

The Group's other related parties The Group's other related parties The Group's other related parties The Group's other related parties The entity with significant influence over the Group

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(b) Significant transactions with related parties

(i) Sales to related parties

Relationship	Sales For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 $ - - - -	Sales For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 $ - - - -	Sales For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 $ - - - -	Accounts receivable to related parties	Accounts receivable to related parties	Accounts receivable to related parties	Accounts receivable to related parties
	For the three months ended June 30,
	2021 $ -	2020	2021 -	June 30, 2021	December 31, 2020		June 30, 2020 -
Associates		-		-		8,237

The terms and pricing of sales with associates were not significantly different from normal selling price, which is collected every15th of the following month. Amounts receivable from related parties were uncollateralized, and no expected credit loss were required after the assessment by the management.

(ii) Purchase from related parties

Relationship	Purchases For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 $ 26,074 23,190 54,889 44,052 - 54 731 764 175,049 129,268 342,030 301,449 70,786 49,182 136,490 101,058 $ 271,909 201,694 534,140 447,323	Purchases For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 $ 26,074 23,190 54,889 44,052 - 54 731 764 175,049 129,268 342,030 301,449 70,786 49,182 136,490 101,058 $ 271,909 201,694 534,140 447,323	Purchases For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 $ 26,074 23,190 54,889 44,052 - 54 731 764 175,049 129,268 342,030 301,449 70,786 49,182 136,490 101,058 $ 271,909 201,694 534,140 447,323	Accounts June 30, 2021 7,971 - 103,714 7,836	payable to related parties	payable to related parties
	For the three months ended June 30,
	2021 $ 26,074 - 175,049 70,786 $ 271,909	2020 23,190 54 129,268 49,182	2021 54,889 731 342,030 136,490 534,140		December 31, 2020 9,686 - 71,257 3,735 84,678	June 30, 2020 7,559 - 82,182 6,074
Entities with significant influence over the Group Associates Other related parties: Formosa Sumco Technology Corporation Other related parties
		201,694		119,521		95,815

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.

(iii) Consigned out for processing

Amount For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 $ 1,906,607 1,803,493 3,828,680 3,761,527	Amount For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 $ 1,906,607 1,803,493 3,828,680 3,761,527	Amount For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 $ 1,906,607 1,803,493 3,828,680 3,761,527	Other payables to related parties June 30, 2021 December 31, 2020 June 30, 2020 1,303,632 1,049,080 1,148,471	Other payables to related parties June 30, 2021 December 31, 2020 June 30, 2020 1,303,632 1,049,080 1,148,471
For the three months ended June 30,
2021 $ 1,906,607	2020 1,803,493	2021	December 31, 2020 1,049,080	June 30, 2020 1,148,471
		3,828,680

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

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iv) Financing from related parties

Financial costs For the three months ended June 30 For the six months ended June 30 Relationship 2021 2020 2021 2020 Other related parties: Formosa Technologies (Nanjing) Corporation $ - 30 - 60 Other payables to related parties Balance of borrowings Interest payable Relationship June 30, 2021 December 31, 2020 June 30, 2020 June 30, 2021 December 31, 2020 June 30, 2020 Other related parties: Formosa Technologies (Nanjing) Corporation $ - - 3,328 - - 3	Financial costs For the three months ended June 30 For the six months ended June 30 Relationship 2021 2020 2021 2020 Other related parties: Formosa Technologies (Nanjing) Corporation $ - 30 - 60 Other payables to related parties Balance of borrowings Interest payable Relationship June 30, 2021 December 31, 2020 June 30, 2020 June 30, 2021 December 31, 2020 June 30, 2020 Other related parties: Formosa Technologies (Nanjing) Corporation $ - - 3,328 - - 3	Financial costs For the three months ended June 30 For the six months ended June 30 Relationship 2021 2020 2021 2020 Other related parties: Formosa Technologies (Nanjing) Corporation $ - 30 - 60 Other payables to related parties Balance of borrowings Interest payable Relationship June 30, 2021 December 31, 2020 June 30, 2020 June 30, 2021 December 31, 2020 June 30, 2020 Other related parties: Formosa Technologies (Nanjing) Corporation $ - - 3,328 - - 3	Financial costs For the three months ended June 30 For the six months ended June 30 Relationship 2021 2020 2021 2020 Other related parties: Formosa Technologies (Nanjing) Corporation $ - 30 - 60 Other payables to related parties Balance of borrowings Interest payable Relationship June 30, 2021 December 31, 2020 June 30, 2020 June 30, 2021 December 31, 2020 June 30, 2020 Other related parties: Formosa Technologies (Nanjing) Corporation $ - - 3,328 - - 3	Financial costs For the three months ended June 30 For the six months ended June 30 Relationship 2021 2020 2021 2020 Other related parties: Formosa Technologies (Nanjing) Corporation $ - 30 - 60 Other payables to related parties Balance of borrowings Interest payable Relationship June 30, 2021 December 31, 2020 June 30, 2020 June 30, 2021 December 31, 2020 June 30, 2020 Other related parties: Formosa Technologies (Nanjing) Corporation $ - - 3,328 - - 3	Financial costs For the three months ended June 30 For the six months ended June 30 Relationship 2021 2020 2021 2020 Other related parties: Formosa Technologies (Nanjing) Corporation $ - 30 - 60 Other payables to related parties Balance of borrowings Interest payable Relationship June 30, 2021 December 31, 2020 June 30, 2020 June 30, 2021 December 31, 2020 June 30, 2020 Other related parties: Formosa Technologies (Nanjing) Corporation $ - - 3,328 - - 3	Financial costs For the three months ended June 30 For the six months ended June 30 Relationship 2021 2020 2021 2020 Other related parties: Formosa Technologies (Nanjing) Corporation $ - 30 - 60 Other payables to related parties Balance of borrowings Interest payable Relationship June 30, 2021 December 31, 2020 June 30, 2020 June 30, 2021 December 31, 2020 June 30, 2020 Other related parties: Formosa Technologies (Nanjing) Corporation $ - - 3,328 - - 3

	2021 -		2021
$		30 Other payables to	-			60
			related parties
	Balan	ce of borrowings December 31, 2020 June 30, 2020 - 3,328	I June 30, 2021 -	ntere	st payable
	June 30, 2021 $ -	December 31, 2020 -		December 31, 2020 -		June 30, 2020
						3

(v) Property transactions
1) Acquisition of equipment

Acquisition price

	Acquisition price
Relationship Entities with significant influence over the Group Other related parties	For the six months ended June 30, 2021 2020 $ - - 4,076 - $ 4,076 -	Other payables to related parties
	2021 $ - 4,076 $ 4,076	June 30, 2021 1,590 2,446 4,036	December 31, 2020 20,830 - 20,830	June 30, 2020
				- -
				-

(vi) Dividends receivables

Relationship Associate	Other receivables due from related parties	Other receivables due from related parties	Other receivables due from related parties
	June 30, 2021	December 31, 2020	June 30, 2020
	$ 325,475	-	311,324

(vii) Leases

Acquisition price	Acquisition price	Acquisition price	Acquisition price	Acquisition price
For the three months ended June 30,		For the six months ended June 30,
2021 $ 16,454	2020		2021 32,938	2020
	15,602			30,629

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.

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group entered into 9 to 10 years lease agreements between July and August 2020, as well as a 3-year lease agreement in July 2017, with Nan Ya Plastics Corporation, at the total values of $2,015,018 and $617,862, respectively. Also, for the three months and six months ended June 30, 2021 and 2020, the Group recognized the amount of $5,903, $118, $11,938 and $412, as interest expense, respectively. Furthermore, as of June 30, 2021, December 31 and June 30, 2020, the balance of lease liabilities amounted to $1,723,871, $1,796,084 and $0, respectively.

(viii) Others

Relationship	Other income	Other income	Other income
	For the three months ended June 30,		For the six months ended June 30
	2021 $ 179	2020 -	2021 2020 480 -
Associates

Key management personnel compensation comprised:

For the six months ended June 30, 2021 2020 $ 10,448 11,389 - 309 $ 10,448 11,698	For the six months ended June 30, 2021 2020 $ 10,448 11,389 - 309 $ 10,448 11,698	For the six months ended June 30,	For the six months ended June 30,
2021 $ 10,448 - $ 10,448		2021 22,982 - 22,982	2020
	11,389 309		24,822 702
	11,698		25,524

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 Other non-current assets	Object	June 30, 2021 $ 5,449	December 31, 2020 5,573	June 30, 2020
	Office leasing			5,067

(9) Commitments and contingencies:

(a) Significant commitments

Guarantees for importation goods provided by bank Unused letters of credit Total	June 30, 2021 $ 835,000 4,256,191 $ 5,091,191	December 31, 2020 935,000 660,779 1,595,779	June 30, 2020
			935,000 258,241
			1,193,241

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(b) Contingent liabilities
(i) In 2000, the Company was charged by Brazil's Ministry of Justice as being involved in the International Monopolies, which influences Brazil's DRAM market. Consequently, the Company, other large international companies and individuals are investigated at the same time. The lawsuit was in a court hearing. The Company has engaged counsels to properly handle it to ensure the Company's rights.
(ii) In October 2016, Lone Star Silicon Innovations LLC (Lone Star) filed a lawsuit against Nanya 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 dismissed in April 2021, therefore it was closed.
(iii) In November 2019, Monterey Research LLC (Monterey) filed a lawsuit against Nanya 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 Delaware for patent infringement. The Company has engaged counsels to properly handle it to ensure the Company's rights.
(iv) 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$54,030 thousand; 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 June 30, 2021 and 2020, the payment amounting to $200,950 had been recognized by the Company.
- 2) The Company agreed to share the 50% portion of the total losses for penalty, improving 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 July 2, 2021, a subsidiary of the Group, Nanya Technology International Ltd, its Board of Directors approved to distribute cash dividends with unappropriated retained earnings which totaled $226,054 (USD 8,111 thousand).

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(12) Other:

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

follows:
	For the three months ended June 30, 2021			For the three months ended June 30, 2020
	Cost of goods sold	Operating expenses	Total	Cost of goods sold	Operating expenses	Total
Employee benefits Salaries Labor and health insurance Pension expenses Remuneration of directors Other personnel expenses Depreciation expenses Amortization expenses	1,209,229 52,294 25,686 - 17,618 3,645,991 65,004	856,258 46,507 22,758 1,560 8,147 120,999 -	2,065,487 98,801 48,444 1,560 25,765 3,766,990 65,004	869,523 48,933 25,162 - 18,295 3,427,570 20,937	613,519 41,779 20,856 1,690 7,336 106,135 -	1,483,042 90,712 46,018 1,690 25,631 3,533,705 20,937

	For the six months ended June 30, 2021			For the six months ended June 30, 2020
	Cost of goods sold	Operating expenses	Total	Cost of goods sold	Operating expenses	Total
Employee benefits Salaries Labor and health insurance Pension expenses Remuneration for directors Other personnel expenses Depreciation expenses Amortization expenses	1,986,464 104,197 50,274 - 35,340 7,203,306 129,938	1,503,437 93,930 47,906 3,120 16,303 241,590 -	3,489,901 198,127 98,180 3,120 51,643 7,444,896 129,938	1,648,673 98,200 49,857 - 36,804 6,902,891 44,826	1,151,493 80,220 42,101 3,250 13,726 211,542 -	2,800,166 178,420 91,958 3,250 50,530 7,114,433 44,826

(b) Seasonal operation:

The Group's operation is not affected by seasonal or cyclical factor.

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements

(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 six months ended June 30, 2021:

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

(In Thousands of New Taiwan Dollars)

Name of company	Related party	Nature of relationship	Transaction details	Transaction details	Transaction details	Transaction details	Transactions different fr	with terms om others	Notes/Accounts receivable (payable)	Notes/Accounts receivable (payable)	Note
			Purchase /Sale	Amount	Percentage of total purchases/sales	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
The Company The Company The Company Nanya Technology Corp., Delaware Nanya Technology Corp., U.S.A Nanya Technology Corp., Japan Nanya Technology Corp., Europe GmbH The Company	Nanya Technology Corp., U.S.A. Nanya Technology Corp., Japan Nanya Technology Corp., Europe GmbH Nanya Technology Corp Nanya Technology Corp Nanya Technology Corp Nanya Technology Corp Formosa Sumco Technology Corporation	Subsidiary Subsidiary Subsidiary The parent company The parent company The parent company The parent company Other related parties	(Sale) (Sale) (Sale) (Sale) Purchase Purchase Purchase Purchase	(4,901,909) (2,901,204) (2,274,627) (199,025) 4,901,909 2,901,204 2,274,627 342,030	(12.21)% (7.22)% (5.66)% 100.00% 100.00% 100.00% 100.00% 5.78%	O/A 60~90Days O/A 180Days O/A 60~90Days O/A 60~90 Days O/A 60~90Days O/A 180Days O/A 60~90Days O/A 60Days	- - - - - - - -		2,305,626 912,424 822,676 31,998 (2,305,626) (912,424) (822,676) (103,714)	21.05% 8.33% 7.51% 100.00% (100.00)% (100.00)% (100.00)% (3.00)%	(Note) (Note) (Note) (Note) (Note) (Note) (Note) -

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 company	Counter-party	Nature of relationship	Ending balance of accounts receivable from related parties	Turnover rate	Overdue	Overdue	Amounts received in subsequent period	Allowance for bad debts
					Amount	Action taken
The Company The Company The Company The Company	Nanya Technology Corp., U.S.A. Nanya Technology Corp., Japan Nanya Technology Europe GmbH Formosa Advanced Technologies Co., Ltd.	Subsidiary Subsidiary Subsidiary Associates	2,305,626 912,424 822,676 325,475	5.24 7.02 7.06 -	- - - -	- - -	822,294 557,282 381,430 -	- - - -

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

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements

(ix) Trading in derivative instruments: None

(x) Business relationships and significant intercompany transactions:

(In Thousands of New Taiwan Dollars)

				(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
No.	Name of company	Name of counter-party	Nature of relationship	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
0 0 0 1 0 0 0 1	Nanya Technology Corp. Nanya Technology Corp. Nanya Technology Corp. Nanya Technology Corp.Delaware Nanya Technology Corp. Nanya Technology Corp. Nanya Technology Corp. Nanya Technology Corp.Delaware	Nanya Technology Corp., U.S.A Nanya Technology Corp., Japan Nanya Technology Europe GmbH Nanya Technology Corp. Nanya Technology Corp., U.S.A Nanya Technology Corp., Japan Nanya Technology Europe GmbH Nanya Technology Corp.	1 1 1 2 1 1 1 2	Sales Sales Sales Sales Accounts receivable Accounts receivable Accounts receivable Accounts receivable	4,901,909 2,901,204 2,274,627 199,025 2,305,626 912,424 822,676 31,998	On the basis of general conditions On the basis of general conditions On the basis of general conditions On the basis of general conditions On the basis of general conditions On the basis of general conditions On the basis of general conditions On the basis of general conditions	12.14% 7.19% 5.63% 0.49% 1.30% 0.51% 0.46% 0.02%

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:

Parent company to subsidiary.
Subsidiary to parent company.
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, did not repeat about the purchase and account payable.

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

The following is the information on investees for the six months ended June 30, 2021:

(In Thousands of New Taiwan Dollars / Shares)

Name of investor	Name of investee	Location	Main businesses and products	Original investment amount	Original investment amount	Balance as of June 30, 2021	Balance as of June 30, 2021	Balance as of June 30, 2021	Net income of investee	Share of profits of investee	Note
				June 30, 2021	December 31, 2020	Shares	Percentage of ownership	Carrying value
The Company The Company The Company The Company The Company The Company Nanya Technology Corp., HK	Nanya Technology Corp., U.S.A. Nanya Technology Corp., Delaware Nanya Technology Corp., HK Nanya Technology Corp., Japan Nanya Technology International, Ltd. Formosa Advanced Technologies Co., Ltd. Nanya Technology Europe GmbH	U.S.A U.S.A Hong Kong Japan British Virgin Island Yunlin Germany	Sales of semiconductor products Design of semiconductor products Sales of semiconductor products Sales of semiconductor products General investment business Assembling, testing and producing modules for IC Sales of semiconductor products	20,392 36,005 66,271 20,161 37,004,400 5,099,482 30,056	20,392 36,005 66,271 20,161 37,004,400 5,099,482 30,056	2 - 20 1 1 141,511 -	% 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 32.00 % 100.00	164,514 177,896 86,650 272,360 33,670,369 5,106,165 82,886	11,157 9,862 18,777 121,794 82,701 719,750 14,678	11,157 9,862 18,777 121,794 82,701 255,412 14,678	(Note1) (Note1) (Note1) (Note1) (Note 1) (Note 2) (Note1)

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

(2) Investment accounted for using equity method.

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements

(c) Information on investment in mainland China:

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

(In Thousands of New Taiwan Dollars)

Name of investee	Main businesses and products	Total amount of paid-in capital	Method of investment	Accumulated outflow of investment from Taiwan as of January 1, 2021	Investment flows	Investment flows	Accumulated outflow of investment from Taiwan as of June 30, 2021	Net income (losses) of the investee	Percentage of ownership	Investment income (losses)	Book value	Accumulated remittance of earnings in currentperiod
					Outflow	Inflow
Nanya Technology Corp., Shenzhen	Sales of semiconductor products	27,452 (USD985 thousand)	(2)	27,452 (USD985 thousand)	-	-	27,452 (USD985 thousand)	3,435	100.00%	3,435 (Note 2)	22,481	-

Note 1：Three types of investments were as follows:

(1) Investing directly in Mainland China
(2) Investing the companies in Mainland China through third parties.
(3) Others

Note 2：The financial statements were reviewed by a certified public accountant of the Taiwanese parent company.

Note3：The transactions were written off in thee consolidated financial statements.

(ii) Limitation on investment in Mainland China:

(In Thousands of New Taiwan Dollars)

Accumulated Investment in Mainland China as of June 30, 2021 (Note 1)	Investment Amounts Authorized by Investment Commission, MOEA (Note 1)	Upper Limit on Investment (Note 2)
27,452 (USD985 thousand)	27,452 (USD985 thousand)	95,188,370

Note 1：The exchange rate of New Taiwan dollars to US dollars on June 30, 2021 was USD1：TWD 27.87

Note 2：60% of net equity.

(iii) Significant transactions: None
(d) Information on major shareholders:

Information on major shareholders:
Shareholding Shareholder’s Name	Shares	Percentage
Nan Ya Plastics Corporation	907,303,775	% 29.29
Formosa Chemicals & Fibre Corporation	334,815,409	% 10.81
Formosa Plastics Corporation	334,815,409	% 10.81
Formosa Petrochemical Corp	334,815,409	% 10.81

Note 1: The information on major shareholders, which is provided by the Taiwan Depository & Clearing Corporation, summarized the shareholders who held over 5% of total non-physical ordinary shares and preference shares (including treasury shares) on the last business date of each quarter. The actual registered non-physical shares may be different from the capital shares disclosed in the financial statement due to different calculation basis.
Note 2: If shares are entrusted, the above information regarding such shares will be revealed by each trustors of individual trust ac count. The shareholders holding more than 10% of the total shares of the company should declare insider’ s equity according to Securities and Exchange Act. The numbers of the shares declared by the insider include the shares of the trust assets which the insider has discretion over use. For details of the insider’s equity announcement please refer to the TWSE website.

(Continued)

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements

(14) Segment information:

Segment information:
Revenue: From external customers From sales among intersegments Total revenue Reportable segment profit or loss Revenue: From external customers From sales among intersegments Total revenue Reportable segment profit or loss Revenue: From external customers From sales among intersegments Total revenue Reportable segment profit or loss Revenue: From external customers From sales among intersegments Total revenue Reportable segment profit or loss Reportable segment assets Balance at June 30, 2021 Balance at December 31, 2020 Balance at June 30, 2020 Reportable segment liabilities Balance at June 30, 2021 Balance at December 31, 2020 Balance at June 30, 2020		For	the three months ended June 30, 2021
	Overseas sales division $ 6,198,585 16,627 $ 6,215,212 $ 24,208	Overseas R&D division - 102,515 102,515 5,070 For	Manufacturing divisions Investment divisions Adjustments and eliminated 16,438,883 - - 6,078,833 - (6,197,975) 22,517,716 - (6,197,975) 6,919,338 40,219 (68,995) the three months ended June 30, 2020			Total
						22,637,468 -
						22,637,468
						6,919,840

		Overseas R&D division Manufacturing divisions Investment divisions Adjustments and eliminated - 11,941,194 - - 107,074 4,550,843 - (4,670,426) 107,074 16,492,037 - (4,670,426) 5,530 3,435,772 184,612 (194,729) For the six months ended June 30, 2021				Total
						16,489,357 -
						16,489,357
						3,436,079

		Overseas R&D division Manufacturing divisions Investment divisions Adjustments and eliminated - 29,994,955 - - 199,025 10,161,872 - (10,391,190) 199,025 40,156,827 - (10,391,190) 9,862 10,253,095 82,701 (244,291) For the six months ended June 30, 2020				Total
						40,368,081 -
						40,368,081
						10,253,845

		Overseas R&D division - 202,993 202,993 10,539 Overseas R&D division 181,750 195,825 172,738 Overseas R&D division 3,854 23,832 1,076	Manufacturing divisions 22,791,773 8,030,740 30,822,513 5,759,197 Manufacturing divisions 177,725,878 165,624,472 168,220,521 Manufacturing divisions 19,078,595 11,812,445 15,755,889	Investment divisions - - - 400,358 Investment divisions 33,670,369 34,357,531 36,903,101 Others divisions - 38 -	Adjustments and eliminated - (8,256,569) (8,256,569) (433,226) Adjustments and eliminated (38,494,327) (37,665,760) (40,762,227) Adjustments and eliminated (4,109,762) (2,729,547) (3,267,557)	Total
						30,908,227 -
						30,908,227
						5,759,830
						Total
						177,760,829
						165,631,980
						168,212,926
						Total
						19,113,546
						11,819,953
						15,748,294

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NTC — Interim / Quarterly Report 2021

52061_rns_2021-12-16_b5f24c8f-cefd-42c5-acd0-af40e8b6a9d6.pdf

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES

Consolidated Financial Statements

Table of contents

KPMG

Independent Auditors’ Review Report

Introduction

Scope of Review

Basis for Qualified Conclusion of the consolidated financial report for the six months ended June 30, 2020

Unqualified Conclusion and Qualified Conclusion

Other Matter

KPMG

Notes to Readers

Nanya Technology Corporation and Subsidiaries

Consolidated Balance Sheets

(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 six months ended June 30, 2021 and 2020

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

(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 six months ended June 30, 2021 and 2020

(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

June 30, 2021 and 2020

(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:

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(4) Summary of significant accounting policies:

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Employee benefits

(d) Income taxes

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

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(6) Explanation of significant accounts:

(b) Notes and accounts receivable

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Other receivables

(d) Inventories

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(f) Investments accounted for using equity method

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(g) Property, plant and equipment

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Lease receivables

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(j) Lease liabilities

(ii) Other leases

(k) Employee benefits

(i) Defined benefit plan

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Defined contribution plans

(l) Income tax

(m) Capital and other equity

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Ordinary Share

(ii) Capital surplus

(iii) Retain earning

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

1) Legal reserve

2) Special Reserve

3) Earnings distribution

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iv) Treasury shares

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(n) Share-based payment

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Compensation cost

NANYA TECHNOLOGY CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(p) Revenue from contracts with customers

(i) Disaggregation of revenue

NTC Interim / Quarterly Report 2021