Nan Ya Printed Circuit Board CorporationTWSE: 8046

Consolidated Financial Statement FY2024 Third Quarter

· Issued by Nan Ya Printed Circuit Board Corporation

1

Stock Code:8046

NAN YA PRINTED CIRCUIT BOARD

CORPORATION AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors' Review Report

For the Nine Months Ended September 30, 2024 and 2023

Address:

7F., No. 390, Sec. 6, Nanjing E. Rd., Neihu Dist., Taipei City

Telephone:

(02)27122211

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

8～10

(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

11～30

(7)

Related-party transactions

30～34

(8)

Pledged assets

34

(9)

Commitments and contingencies

34

(10)

Losses Due to Major Disasters

35

(11)

Subsequent Events

35

(12)

Other

35

(13)

Other disclosures

(a) Information on significant transactions

36～37

(b) Information on investees

37

(c) Information on investment in mainland China

37～38

(d) Major shareholders

38

(14)

Segment information

38～39

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 September 30, 2024 and 2023, and the related consolidated statements of comprehensive income for the three months and nine months ended September 30, 2024 and 2023, as well as the changes in equity and cash flows for the nine months ended September 30, 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 September 30, 2024 and 2023, and of its consolidated financial performance for the three months and nine months ended September 30, 2024 and 2023, as well as its consolidated cash flows for the nine months ended September 30, 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)

November 5, 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

September 30, 2024, December 31 and September 30, 2023

(Expressed in Thousands of New Taiwan Dollars)

September 30, 2024

December 31, 2023

September 30, 2023

Assets

Amount

%

Amount

%

Amount

%

Current assets:

1100

Cash and cash equivalents (note 6(a))

$

7,443,873

12

12,329,798

17

10,445,210

15

1120

Current financial assets at fair value through other

160,286

-

237,283

-

239,080

-

comprehensive income

1170

Notes and accounts receivable, net (notes 6(b) and

7,733,283

12

6,849,920

10

8,522,384

12

(m))

1180

Accounts receivable due from related parties (notes

6(b), (m) and 7)

35,836

-

47,714

-

42,026

-

1200

Other receivables (note 6(c))

168,978

-

612,646

1

298,705

-

1210

Other receivables due from related parties (notes

6(c) and 7)

3,014

-

2,302

-

2,527

-

1310

Inventories (note 6(d))

3,971,679

6

3,896,223

6

4,852,995

7

1470

Prepayments and other current assets (note 6(a))

768,254

1

498,301

1

311,714

1

Total current assets

20,285,203

31

24,474,187

35

24,714,641

35

Non-current assets:

1550

Investments accounted for using equity method (note

6(e))

474,093

1

486,857

1

483,406

1

1600

Property, plant and equipment (note 6(f))

40,864,691

65

43,106,634

61

43,847,748

61

1755

Right-of-use assets (notes 6(g) and 7)

1,557,084

2

1,707,192

2

1,774,196

2

1840

Deferred tax assets

425,876

1

647,139

1

618,560

1

1900

Other non-current assets

9,518

-

15,436

-

9,480

-

Total non-current assets

43,331,262

69

45,963,258

65

46,733,390

65

Total assets

$

63,616,465 100

70,437,445 100

71,448,031 100

Liabilities and equity

September 30, 2024

December 31, 2023

September 30, 2023

Amount

%

Amount

%

Amount

%

Current liabilities:

2130

Current contract liabilities (note 6(m))

$

2,218,144

4

1,991,749

3

1,912,696

3

2170

Accounts payable

1,549,116

3

2,731,645

4

3,720,444

5

2180

Accounts payable to related parties (note 7)

254,245

-

330,321

-

294,094

-

2219

Other payables

1,889,111

3

2,746,138

4

2,684,171

4

2220

Other payables to related parties (note 7)

52,918

-

36,206

-

61,057

-

2230

Current tax liabilities

375,657

1

849,868

1

936,675

2

2281

Current lease liabilities (note 6(h))

7,147

-

9,588

-

12,036

-

2282

Current lease liabilities, related parties (notes 6(h)

and 7)

257,783

-

246,114

-

245,472

-

2300

Other current liabilities

227,076

-

158,806

-

195,710

-

Total current liabilities

6,831,197

11

9,100,435

12

10,062,355

14

Non-current liabilities:

2527

Non-current contract liabilities (note 6(m))

6,069,738

9

7,233,676

11

7,360,145

11

2570

Deferred tax liabilities

3,013,892

5

3,441,505

5

3,360,339

5

2581

Non-current lease liabilities (note 6(h))

744

-

2,216

-

2,951

-

2582

Non-current lease liabilities, related parties (notes

6(h) and 7)

1,281,185

2

1,435,463

2

1,497,233

2

2640

Net defined benefit liability, non-current

1,072,652

2

1,112,644

2

1,563,280

2

2645

Guarantee deposits received

282,687

-

203,590

-

205,999

-

Total non-current liabilities

11,720,898

18

13,429,094

20

13,989,947

20

Total liabilities

18,552,095

29

22,529,529

32

24,052,302

34

Equity (note 6(k)):

3100

Ordinary shares

6,461,655

10

6,461,655

9

6,461,655

9

3200

Capital surplus

18,125,634

29

18,125,615

26

18,125,589

25

3310

Legal reserve

8,473,910

13

7,857,185

11

7,857,185

11

3320

Special reserve

1,112,574

2

761,647

1

761,647

1

3350

Unappropriated retained earnings

11,317,894

18

15,814,388

23

14,620,559

21

3400

Other equity interest

(427,297)

(1)

(1,112,574)

(2)

(430,906)

(1)

Total equity

45,064,370

71

47,907,916

68

47,395,729

66

Total liabilities and equity

$

63,616,465

100

70,437,445

100

71,448,031

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 and nine months ended September 30, 2024 and 2023

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

4000

5000

For the three months ended

For the nine months ended

September 30,

September 30,

2024

2023

2024

2023

Amount

%

Amount

%

Amount

%

Amount

%

Operating revenue (notes 6(m) and 7)

$ 9,191,871

100

10,227,384

100

24,413,049

100

32,941,684

100

Operating costs (notes 6(d), (f), (g), (h), (i), (n) and 7)

8,654,135

94

8,706,219

85

24,072,284

99

25,780,429

78

Gross profit from operations

537,736

6

1,521,165

15

340,765

1

7,161,255

22

Operating expenses (notes 6(b), (f), (g), (h), (i), (n) and 7):

6100

Selling expenses

80,036

1

120,949

1

237,133

1

366,146

1

6200

Administrative expenses

332,741

4

369,544

4

979,651

4

1,155,160

4

6000

Total operating expenses

412,777

5

490,493

5

1,216,784

5

1,521,306

5

6900

Net operating (loss) income

124,959

1

1,030,672

10

(876,019)

(4)

5,639,949

17

Non-operating income and expenses (notes 6(e), (f), (h), (o) and 7):

7100

7010

7020

7050

7060

7900

7950

8200

8300

8310

8316

8320

8349

Interest income

50,817

1

68,142

1

194,517

1

253,553

1

Other income

72,772

1

48,694

-

444,564

2

180,326

1

Other gains and losses

(180,272)

(2)

298,844

3

233,182

1

489,690

1

Finance costs

(4,347)

-

(4,783)

-

(13,353)

-

(14,759)

-

Share of profit of associates accounted for using equity method

3,396

-

1,319

-

22,644

-

15,397

-

Total non-operating income and expenses

(57,634)

-

412,216

4

881,554

4

924,207

3

Profit before tax

67,325

1

1,442,888

14

5,535

-

6,564,156

20

Less: Tax (benefit) expense (note 6(j))

8,434

-

367,251

3

(19,533)

-

1,590,738

5

Profit

58,891

1

1,075,637

11

25,068

-

4,973,418

15

Other comprehensive income (notes 6(e), (j) and (k)):

Components of other comprehensive income that will not be

reclassified to profit or loss

Unrealized (losses) gains from investments in equity instruments

measured at fair value through other comprehensive income

(11,984)

-

(17,677)

-

(76,997)

-

(37,526)

-

Share of other comprehensive income of associates accounted for

using equity method

(10,434)

-

(4,884)

-

(23,469)

-

(2,026)

-

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

(22,418)

-

(22,561)

-

(100,466)

-

(39,552)

-

8360

Components of other comprehensive income that will be reclassified

to profit or loss

8361

Exchange differences on translation

(195,000)

(2)

1,000,201

10

982,179

4

462,867

1

8399

Less: income tax related to components of other comprehensive

income that will be reclassified to profit or loss

(39,000)

-

200,040

2

196,436

1

92,574

-

Components of other comprehensive income that will be

reclassified to profit or loss

(156,000)

(2)

800,161

8

785,743

3

370,293

1

8300

Other comprehensive income, net

685,277

3

330,741

1

(178,418)

(2)

777,600

8

8500

Total comprehensive income

710,345

3

5,304,159

16

$

(119,527)

(1)

1,853,237

19

Earnings per share (note 6(l))

9750

Basic earnings per share

$

0.09

1.66

0.04

7.70

9850

Diluted earnings per share

$

0.09

1.66

0.04

7.70

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 nine months ended September 30, 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 nine months ended September 30, 2023

-

-

-

-

4,973,418

-

-

-

4,973,418

Other comprehensive income for the nine months ended September 30, 2023

-

-

-

-

-

370,293

(39,552)

330,741

330,741

Total comprehensive income for the nine months ended September 30, 2023

-

-

-

-

4,973,418

370,293

(39,552)

330,741

5,304,159

Appropriation and allocation of earnings:

Legal reserve appropriated

-

-

1,960,564

-

(1,960,564)

-

-

-

-

Reversal of special reserve

-

-

-

(99,599)

99,599

-

-

-

-

Cash dividends of ordinary share

-

-

-

-

(11,630,978)

-

-

-

(11,630,978)

Other changes in capital surplus:

Other changes in capital surplus

-

(19)

-

-

-

-

-

-

(19)

Balance at September 30, 2023

$

6,461,655

18,125,589

7,857,185

761,647

14,620,559

(374,251)

(56,655)

(430,906)

47,395,729

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

Profit for the nine months ended September 30, 2024

-

-

-

-

25,068

-

-

-

25,068

Other comprehensive income for the nine months ended September 30, 2024

-

-

-

-

-

785,743

(100,466)

685,277

685,277

Total comprehensive income for the nine months ended September 30, 2024

-

-

-

-

25,068

785,743

(100,466)

685,277

710,345

Appropriation and allocation of earnings:

Legal reserve appropriated

-

-

616,725

-

(616,725)

-

-

-

-

Special reserve appropriated

-

-

-

350,927

(350,927)

-

-

-

-

Cash dividends of ordinary share

-

-

-

-

(3,553,910)

-

-

-

(3,553,910)

Other changes in capital surplus:

Other changes in capital surplus

-

19

-

-

-

-

-

-

19

Balance at September 30, 2024

$

6,461,655

18,125,634

8,473,910

1,112,574

11,317,894

(270,916)

(156,381)

(427,297)

45,064,370

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 nine months ended September 30, 2024 and 2023

(Expressed in Thousands of New Taiwan Dollars)

For the nine months ended

September 30,

2024

2023

Cash flows from operating activities:

Profit before tax

$

5,535

6,564,156

Adjustments:

Adjustments to reconcile profit:

Depreciation expense

4,839,761

4,308,651

Interest expense

13,353

14,759

Interest income

(194,517)

(253,553)

Dividend income

(2,996)

(12,583)

Share of profit of associates accounted for using equity method

(22,644)

(15,397)

Loss on disposal of property, plant and equipment

948

42,340

Reversal of impairment loss on non-financial assets

(75)

(72)

Unrealized foreign exchange loss (gain)

110,860

(153,707)

Total adjustments to reconcile profit

4,744,690

3,930,438

Changes in operating assets and liabilities:

Changes in operating assets:

(Increase) decrease in notes and accounts receivable (including related parties)

(960,489)

6,457,962

Decrease (increase) in other receivables (including related parties)

22,070

(49,803)

(Increase) decrease in inventories

(77,932)

948,990

(Increase) decrease in prepayments

(96,564)

15,904

Total changes in operating assets

(1,112,915)

7,373,053

Changes in operating liabilities:

(Decrease) increase in contract liabilities

(937,543)

554,816

Decrease in accounts payable (including related parties)

(1,254,825)

(1,303,930)

Decrease in other payables (including related parties)

(840,297)

(866,775)

Increase (decrease) in other current liabilities

68,270

(24,862)

Decrease in net defined benefit liabilities

(39,992)

(338,807)

Total changes in operating liabilities

(3,004,387)

(1,979,558)

Total changes in operating assets and liabilities

(4,117,302)

5,393,495

Total adjustments

627,388

9,323,933

Cash inflow generated from operations

632,923

15,888,089

Interest received

193,537

245,001

Interest paid

(13,353)

(14,759)

Income taxes paid

(417,866)

(3,508,313)

Net cash flows from operating activities

395,241

12,610,018

Cash flows used in investing activities:

Acquisition of financial assets at fair value through other comprehensive income

-

(276,606)

Acquisition of property, plant and equipment

(1,780,982)

(10,439,325)

Proceeds from disposal of property, plant and equipment

26,127

23,829

Increase in other financial assets

(173,752)

-

Decrease in other non-current assets

5,918

2,117

Dividends received

14,936

56,364

Net cash flows used in investing activities

(1,907,753)

(10,633,621)

Cash flows used in financing activities:

Increase in guarantee deposits received

78,911

76,924

Payment of lease liabilities

(197,758)

(190,649)

Cash dividends paid

(3,553,910)

(11,630,978)

Net cash flows used in financing activities

(3,672,757)

(11,744,703)

Effect of exchange rate changes on cash and cash equivalents

299,344

169,399

Net decrease in cash and cash equivalents

(4,885,925)

(9,598,907)

Cash and cash equivalents at beginning of period

12,329,798

20,044,117

Cash and cash equivalents at end of period

$

7,443,873

10,445,210

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 Nine Months Ended September 30, 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 November 5, 2024.

  1. New standards, amendments and interpretations adopted:
    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:
      • 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 the FSC but not yet effective
      The Group assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2025, would not have a significant impact on its consolidated financial statements:
      • Amendments to IAS21 "Lack of Exchangeability"

(Continued)

9

NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

  1. 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 of

January 1, 2027

and Disclosure in

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.

●

A more structured income statement: under

current standards, companies use different

formats to present their results, making it

difficult for investors to compare financial

performance across companies. The new

standard promotes a more structured income

statement, introducing a newly defined

'operating profit' subtotal and a requirement

for all income and expenses to be allocated

between three new distinct categories based

on a company's main business activities.

●

Management

performance

measures

(MPMs): the new standard introduces a

definition for management performance

measures, and requires companies to explain

in a single note to the financial statements

why

the

measure

provides

useful

information, how it is calculated and

reconcile it to an amount determined under

IFRS Accounting Standards.

●

Greater disaggregation of information: the

new standard includes enhanced guidance on

how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes.

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.

(Continued)

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