Nan Ya Printed Circuit Board : Consolidated Financial Statement FY2024 First Quarter

1

Stock Code:8046

NAN YA PRINTED CIRCUIT BOARD

CORPORATION AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors' Review Report

For the Three Months Ended March 31, 2024 and 2023

Address:	7F., No. 390, Sec. 6, Nanjing E. Rd., Neihu Dist., Taipei City
Telephone:	[phone]

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.

2

Table of contents

		Contents		Page
1.	Cover Page	1
2.	Table of Contents	2
3.	Independent Auditors' Review Report	3
4.	Consolidated Balance Sheets	4
5.	Consolidated Statements of Comprehensive Income	5
6.	Consolidated Statements of Changes in Equity	6
7.	Consolidated Statements of Cash Flows	7
8.	Notes to the Consolidated Financial Statements
	(1)	Company history	8
	(2)	Approval date and procedures of the consolidated financial statements	8
	(3)	New standards, amendments and interpretations adopted		8～9
	(4)	Summary of material accounting policies		10～11
	(5)	Significant accounting assumptions and judgments, and major sources	11
		of estimation uncertainty
	(6)	Explanation of significant accounts		11～29
	(7)	Related-party transactions		29～33
	(8)	Pledged assets	33
	(9)	Commitments and contingencies	34
	(10)	Losses Due to Major Disasters	34
	(11)	Subsequent Events	34
	(12)	Other	34
	(13)	Other disclosures
		(a) Information on significant transactions		35～36
		(b) Information on investees	36
		(c) Information on investment in mainland China		36～37
		(d) Major shareholders	37
	(14)	Segment information		37～38

3

Independent Auditors' Review Report

To the Board of Directors of

Nan Ya Printed Circuit Board Corporation:

Introduction

We have reviewed the accompanying consolidated balance sheets of Nan Ya Printed Circuit Board Corporation and its subsidiaries as of March 31, 2024 and 2023, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the three months ended March 31, 2024 and 2023, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, " Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

We conducted our reviews in accordance with the Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" of the Republic of China. 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 Standards on Auditing of the Republic of China 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.

3-1

Conclusion

Based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of Nan Ya Printed Circuit Board Corporation and its subsidiaries as of March 31, 2024 and 2023, and of its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2024 and 2023 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.

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

KPMG

Taipei, Taiwan (Republic of China)

May 3, 2024

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' 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.

4

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

NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

March 31, 2024, December 31 and March 31, 2023

(Expressed in Thousands of New Taiwan Dollars)

			March 31, 2024	December 31, 2023	March 31, 2023
	Assets		Amount	%		Amount	%			Amount	%
	Current assets:
1100	Cash and cash equivalents (note 6(a))	$	12,873,917		19		12,329,798		17			23,253,565		28
1120	Current financial assets at fair value through other		206,424		-		237,283		-			29,284		-
	comprehensive income
1170	Notes and accounts receivable, net (notes 6(b) and		5,528,641		8		6,849,920		10			10,940,697		13
	(m))
1180	Accounts receivable due from related parties (notes
	6(b), (m) and 7)		86,235		-		47,714		-			96,649		-
1200	Other receivables (note 6(c))		703,516		1		612,646		1			373,560		1
1210	Other receivables due from related parties (notes
	6(c) and 7)		13,726		-		2,302		-			46,380		-
1310	Inventories (note 6(d))		3,686,644		6		3,896,223		6			5,335,869		6
1470	Prepayments and other current assets		205,395		-		498,301		1			357,088		-
	Total current assets		23,304,498		34		24,474,187		35			40,433,092		48
	Non-current assets:
1550	Investments accounted for using equity method (note
	6(e))		476,968		1		486,857		1			481,642		1
1600	Property, plant and equipment (note 6(f))		42,975,739		62		43,106,634		61			40,677,015		48
1755	Right-of-use assets (notes 6(g) and 7)		1,659,648		2		1,707,192		2			1,905,677		2
1840	Deferred tax assets		474,142		1		647,139		1			688,395		1
1900	Other non-current assets		13,453		-		15,436		-			28,577		-
	Total non-current assets		45,599,950		66		45,963,258		65			43,781,306		52

Total assets	$	68,904,448 100	70,437,445 100	84,214,398 100

	Liabilities and equity		March 31, 2024	December 31, 2023		March 31, 2023
		Amount	%			Amount	%				Amount	%
	Current liabilities:
2130	Current contract liabilities (note 6(m))	$	2,077,794		3		1,991,749		3		2,042,484		3
2170	Accounts payable		2,120,940		3		2,731,645		4		4,987,803		6
2180	Accounts payable to related parties (note 7)		242,429		-		330,321		-			269,271		-
2216	Dividends payable		3,553,910		5		-		-			11,630,978		14
2219	Other payables		1,817,397		3		2,746,138		4		2,117,845		3
2220	Other payables to related parties (note 7)		35,903		-		36,206		-			30,724		-
2230	Current tax liabilities		845,257		1		849,868		1		3,511,331		4
2281	Current lease liabilities (note 6(h))		7,133		-		9,588		-			11,969		-
2282	Current lease liabilities, related parties (notes 6(h)
	and 7)		252,661		1		246,114		-			244,192		-
2300	Other current liabilities		175,172			-			158,806			-				310,490			-
	Total current liabilities		11,128,596		16		9,100,435		12		25,157,087		30
	Non-current liabilities:
2527	Non-current contract liabilities (note 6(m))		6,707,423		10		7,233,676		11		8,054,325		9
2570	Deferred tax liabilities		3,416,626		5		3,441,505		5		3,153,330		4
2581	Non-current lease liabilities (note 6(h))		1,853		-		2,216		-			8,986		-
2582	Non-current lease liabilities, related parties (notes
	6(h) and 7)		1,384,913		2		1,435,463		2		1,620,290		2
2640	Net defined benefit liability, non-current		1,101,354		2		1,112,644		2		1,581,756		2
2645	Guarantee deposits received		256,617			-			203,590			-				125,707			-
	Total non-current liabilities		12,868,786			19			13,429,094			20			14,544,394			17
	Total liabilities		23,997,382		35		22,529,529		32		39,701,481		47
	Equity (note 6(k)):
3100	Ordinary shares		6,461,655		9		6,461,655		9		6,461,655		8
3200	Capital surplus		18,125,615		26		18,125,615		26		18,125,608		22
3310	Legal reserve		7,857,185		12		7,857,185		11		5,896,621		7
3320	Special reserve		761,647		1		761,647		1		861,246		1
3350	Unappropriated retained earnings		12,108,058		18		15,814,388		23		13,833,347		16
3400	Other equity interest		(407,094)	(1)	(1,112,574)	(2)	(665,560)	(1)
	Total equity		44,907,066			65			47,907,916			68			44,512,917			53
	Total liabilities and equity	$	68,904,448		100		70,437,445		100		84,214,398		100

See accompanying notes to consolidated financial statements.

5

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

NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the three months ended March 31, 2024 and 2023

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

4000

5000

For the three months ended

March 31,

	2024				2023
		Amount	%		Amount	%
Operating revenue (notes 6(m) and 7)	$ 7,100,572		100		12,580,657		100
Operating costs (notes 6(d), (f), (g), (h), (i), (n) and 7)		7,481,039		105		8,862,775		70
Gross profit from operations	(380,467)	(5)	3,717,882		30
Operating expenses (notes 6(b), (f), (g), (h), (i), (n) and 7):

6100	Selling expenses		90,182		1		140,279		1
6200	Administrative expenses		323,358			5		412,448			4
6000	Total operating expenses		413,540			6		552,727			5
6900	Net operating (loss) income		(794,007)	(11)	3,165,155		25
	Non-operating income and expenses (notes 6(e), (f), (h), (o) and 7):
7100	Interest income		72,660		1		65,563		-
7010	Other income		190,167		3		67,094		1
7020	Other gains and losses		283,712		4		(151,713)	(1)
7050	Finance costs		(4,552)	-		(5,026)	-
7060	Share of profit of associates accounted for using equity method		10,609			-		7,287			-
	Total non-operating income and expenses		552,596			8		(16,795)	-
	(Loss) profit before tax
7900		(241,411)	(3)	3,148,360		25
7950	Less: Tax (benefit) expense (note 6(j))		(88,991)	(1)	823,119		7
	(Loss) profit
8200		(152,420)	(2)	2,325,241		18
8300	Other comprehensive income (notes 6(e), (j) and (k)):
8310	Components of other comprehensive income that will not be reclassified to profit or loss
8316	Unrealized (losses) gains from investments in equity instruments measured at fair value through other
	comprehensive income		(30,859)	-		813		-
8320	Share of other comprehensive income of associates accounted for using equity method		(8,558)	-		4,322		-
8349	Less: income tax related to components of other comprehensive income that will not be reclassified to profit
	or loss		-			-		-			-
	Components of other comprehensive income that will not be reclassified to profit or loss		(39,417)	-		5,135		-
8360	Components of other comprehensive income that will be reclassified to profit or loss
8361	Exchange differences on translation		931,121		13		113,690		1
8399	Less: income tax related to components of other comprehensive income that will be reclassified to profit or
	loss		186,224			3		22,738			-
	Components of other comprehensive income that will be reclassified to profit or loss		744,897			10		90,952			1
8300	Other comprehensive income, net		705,480			10		96,087			1
8500	Total comprehensive income	$	553,060		8		2,421,328		19
	Earnings per share (note 6(l))
9750	Basic earnings per share	$			(0.24)			3.60
9850	Diluted earnings per share	$			(0.24)			3.60

See accompanying notes to consolidated financial statements.

6

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

NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the three months ended March 31, 2024 and 2023

(Expressed in Thousands of New Taiwan Dollars)

																						Other equity interest
																										Unrealized
																										gains (losses)
																										on financial
																						Exchange		assets
																						differences on		measured at
																						translation of		fair value
																Unappropriated			foreign	through other
		Ordinary			Capital			Legal			Special			retained			financial	comprehensive				Total
Balance at January 1, 2023		share			surplus			reserve			reserve			earnings			statements		income	Total	equity
$	6,461,655				18,125,608				5,896,621			861,246				23,139,084					(744,544)		(17,103)			(761,647)		53,722,567
Profit for the three months ended March 31, 2023		-			-			-		-			2,325,241				-				-				-			2,325,241
Other comprehensive income for the three months ended March 31, 2023		-			-			-		-			-				90,952				5,135				96,087			96,087
Total comprehensive income for the three months ended March 31, 2023		-		-		-	-		2,325,241			90,952			5,135				96,087			2,421,328
Appropriation and allocation of earnings:
Cash dividends of ordinary share		-			-			-		-			(11,630,978)	-			-				-			(11,630,978)
Balance at March 31, 2023	$	6,461,655			18,125,608			5,896,621		861,246			13,833,347				(653,592)	(11,968)		(665,560)	44,512,917
Balance at January 1, 2024
$	6,461,655			18,125,615			7,857,185		761,647			15,814,388				(1,056,659)	(55,915)		(1,112,574)	47,907,916
Loss for the three months ended March 31, 2024		-			-			-		-			(152,420)	-			-				-			(152,420)
Other comprehensive income for the three months ended March 31, 2024		-			-			-		-			-				744,897				(39,417)		705,480			705,480
Total comprehensive income for the three months ended March 31, 2024		-			-			-		-			(152,420)	744,897			(39,417)		705,480			553,060
Appropriation and allocation of earnings:
Cash dividends of ordinary share		-			-			-		-			(3,553,910)	-			-				-			(3,553,910)
Balance at March 31, 2024
$	6,461,655			18,125,615			7,857,185		761,647			12,108,058				(311,762)	(95,332)		(407,094)	44,907,066

See accompanying notes to consolidated financial statements.

7

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

NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the three months ended March 31, 2024 and 2023

(Expressed in Thousands of New Taiwan Dollars)

For the three months ended

		March 31,
		2024			2023
Cash flows from operating activities:
(Loss) profit before tax	$	(241,411)		3,148,360
Adjustments:
Adjustments to reconcile profit:
Depreciation expense		1,596,927			1,278,150
Interest expense		4,552			5,026
Interest income		(72,660)		(65,563)
Share of profit of associates accounted for using equity method		(10,609)		(7,287)
Loss on disposal of property, plant and equipment		478			21,604
(Reversal of) impairment loss on non-financial assets		(75)		(9)
Unrealized foreign exchange gain		(100,946)		(15,277)
Total adjustments to reconcile profit		1,417,667			1,216,644
Changes in operating assets and liabilities:
Changes in operating assets:
Decrease in notes and accounts receivable (including related parties)		1,348,291			3,858,209
Increase in other receivables (including related parties)		(17,349)		(127,465)
Decrease in inventories		207,212			466,676
Decrease (increase) in prepayments		14,718			(22,191)
Total changes in operating assets		1,552,872			4,175,229
Changes in operating liabilities:
(Decrease) increase in contract liabilities		(440,208)		1,379,943
Decrease in accounts payable (including related parties)		(694,006)		(54,140)
Decrease in other payables (including related parties)		(929,044)		(1,463,413)
Increase in other current liabilities		16,366			89,918
Decrease in net defined benefit liabilities		(11,290)		(320,331)
Total changes in operating liabilities
	(2,058,182)		(368,023)
Total changes in operating assets and liabilities
	(505,310)		3,807,206
Total adjustments		912,357			5,023,850
Cash inflow generated from operations		670,946			8,172,210
Interest received		69,186			59,512
Interest paid		(4,552)		(5,026)
Income taxes paid		(4,523)		(380,083)
Net cash flows from operating activities		731,057			7,846,613
Cash flows used in investing activities:
Acquisition of financial assets at fair value through other comprehensive income		-			(28,471)
Acquisition of property, plant and equipment		(792,992)		(4,563,367)
Proceeds from disposal of property, plant and equipment		1,158			3,211
Decrease in other financial assets (recognized as other current assests)		277,922			-
Decrease (increase) in other non-current assets		1,983			(16,980)
Net cash flows used in investing activities
	(511,929)		(4,605,607)
Cash flows used in financing activities:
Increase (decrease) in guarantee deposits received		53,027			(3,368)
Payment of lease liabilities		(64,787)		(62,904)
Net cash flows used in financing activities
	(11,760)		(66,272)
Effect of exchange rate changes on cash and cash equivalents		336,751			34,714
Net increase in cash and cash equivalents		544,119			3,209,448
Cash and cash equivalents at beginning of period		12,329,798			20,044,117
Cash and cash equivalents at end of period	$	12,873,917			23,253,565

See accompanying notes to consolidated financial statements.

8

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

NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the Three Months Ended March 31, 2024 and 2023

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

(1) Company history

Nan Ya Printed Circuit Board Corporation "the Company" was legally established with the approval by the Ministry of Economic Affairs on October 28, 1997, with registered address at 7F., No. 390, Sec. 6, Nanjing E. Rd., Neihu Dist., Taipei City, Taiwan. The Company and its subsidiaries "the Group" main operating activities are primarily in the manufacturing and selling of printed circuit boards.

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

The accompanying consolidated financial statements were approved and authorized for issuance by the Board of Directors on May 3, 2024 .

1. New standards, amendments and interpretations adopted:
2. 1. The impact of the IFRS Accounting Standards endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted.
      The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2024:
   2. • Amendments to IAS 1 "Classification of Liabilities as Current or Non-current"
      • Amendments to IAS 1 "Non-current Liabilities with Covenants"
      • Amendments to IAS 7 and IFRS 7 "Supplier Finance Arrangements"
      • Amendments to IFRS 16 "Lease Liability in a Sale and Leaseback"
   3. The impact of IFRS issued by IASB but not yet endorsed by the FSC

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

Standards or				Effective date per
Interpretations		Content of amendment		IASB
IFRS 18 "Presentation		The new standard introduces three categories		January 1, 2027
and Disclosure in		of income and expenses, two income statement
Financial Statements"		subtotals and one single note on management
		performance measures. The three amendments,
		combined with enhanced guidance on how to
		disaggregate information, set the stage for
		better and more consistent information for
		users, and will affect all the entities.

(Continued)

9

NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Standards or									Effective date per
Interpretations			Content of amendment		IASB
IFRS 18 "Presentation		●	A more structured income statement: under		January 1, 2027
and Disclosure in			current standards, companies use different
Financial Statements"			formats to present their results, making it
			difficult for investors to compare financial
			performance across companies. The new
			standard promotes a more structured
			income statement, introducing a newly
			defined ' operating	profit'	subtotal and a
			requirement for all income and expenses to
			be allocated between three new distinct
			categories based on a company' s main
			business activities.
		●	Management	performance	measures
			(MPMs): the new standard introduces a
			definition for management	performance
			measures, and requires companies to
			explain in a single note to the financial
			statements why the measure provides useful
			information,	how	it is	calculated and

reconcile it to an amount determined under IFRS Accounting Standards.

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

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

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

• Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture"
• IFRS 17 " Insurance Contracts" and amendments to IFRS 17 " Insurance Contracts"
• Amendments to IFRS 17 "Initial Application of IFRS 17 and IFRS 9 - Comparative Information"
• Amendments to IAS21 "Lack of Exchangeability"

(Continued)