Stock Code:8046
NAN YA PRINTED CIRCUIT BOARD
CORPORATION
Financial Statements
With Independent Auditors' Report
For the Years Ended December 31, 2024 and 2023
Address: Telephone:
7F., No. 390, Sec. 6, Nanjing E. Rd., Neihu Dist., Taipei City (02)27122211
The independent auditors' report and the accompanying 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 financial statements, the Chinese version shall prevail.
Table of contents
Page | |
1. Cover Page | 1 |
2. Table of Contents | 2 |
3. Independent Auditors' Report | 3 |
4. Balance Sheets | 4 |
5. Statements of Comprehensive Income | 5 |
6. Statements of Changes in Equity | 6 |
7. Statements of Cash Flows | 7 |
8. Notes to the Financial Statements |
Contents
(14) Segment information 9. List of major account titles
(1) | Company history | 8 |
(2) | Approval date and procedures of the financial statements | 8 |
(3) | New standards, amendments and interpretations adopted | 8～10 |
(4) | Summary of material accounting policies | 10～22 |
(5) | Significant accounting assumptions and judgments, and major sources | 22 |
of estimation uncertainty | ||
(6) | Explanation of significant accounts | 22～47 |
(7) | Related-party transactions | 47～51 |
(8) | Pledged assets | 51 |
(9) | Significant Commitments and contingencies | 51 |
(10) | Losses Due to Major Disasters | 52 |
(11) | Subsequent Events | 52 |
(12) | Other | 52 |
(13) | Other disclosures | |
(a) Information on significant transactions | 53 | |
(b) Information on investees | 54 | |
(c) Information on investment in mainland China | 54 | |
(d) Major shareholders | 54 | |
54 | ||
55～63 |
Independent Auditors' Report
To the Board of Directors of Nan Ya Printed Circuit Board Corporation:
Opinion
We have audited the financial statements of Nan Ya Printed Circuit Board Corporation("the Company"), which comprise the balance sheet as of December 31, 2024 and 2023, the statement of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the financial statements, including a summary of material accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and its financial performance and cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.
Basis for Opinion
We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key audit matters for the Company's financial statements are stated as follows:
1. Valuation of inventories
The Company estimates the loss on decline of inventory market price on a monthly basis using the aging analysis of inventories and the lower of cost or net realizable value. Since the net realizable value of inventory relies on the impact of international raw material prices, the valuation of inventories is one of the key audit matters while conducting the audit for the financial statements of the Company. For accounting policies, estimation uncertainty, and related disclosures on the valuation of inventories, please refer to notes 4(g), 5(a), and 6(d), respectively, of the financial statements.
The principal audit procedures performed to address the aforementioned key audit matter included understanding the basis adopted by the management in the estimate of net realizable value, and sampling to test the reasonableness of the net realizable value and the aging analysis of inventories.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance (including the Audit committee) are responsible for overseeing the Company's financial reporting process.
Auditors' Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor' s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:
1. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
4. Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
5. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
6. Obtain sufficient and appropriate audit evidence regarding the financial information of the investment in other entities accounted for using the equity method to express an opinion on this financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.
We communicated with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identified during our audit.
We also provided those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determined those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We described these matters in our auditors'report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determined that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partners on the audit resulting in this independent auditors' report are Kuo, Hsin-Yi and Lee, Tzu-Hui.
KPMG
Taipei, Taiwan (Republic of China) February 27, 2025
Notes to Readers
The accompanying financial statements are intended only to present the 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 audit such financial statements are those generally accepted and applied in the Republic of China.
The independent auditors' report and the accompanying 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 financial statements, the Chinese version shall prevail.
4
NAN YA PRINTED CIRCUIT BOARD CORPORATION
Balance Sheets
December 31, 2024 and 2023
(Expressed in Thousands of New Taiwan Dollars)
December 31, 2024
December 31, 2023
Assets Current assets:
1100 Cash and cash equivalents (note 6(a))
1120 Current financial assets at fair value through other comprehensive income
1170 Notes and accounts receivable, net (notes 6(b) and (m))
1180 Accounts receivable due from related parties (notes 6(b), (m) and 7)
1200 Other receivables (note 6(c))
1210 Other receivables due from related parties (notes 6(c) and 7)
1310 Current inventories (note 6(d))
1470 Prepayments and other current assets
Total current assets Non-current assets:
1550 Investments accounted for using equity method (notes 6(e) and 7)
1600 Property, plant and equipment (notes 6(f) and 7)
1755 Right-of-use assets (notes 6(g) and 7)
1840 Deferred tax assets (note 6(j))
1900 Other non-current assets
Total non-current assets
Total assets
See accompanying notes to financial statements.
Amount
$ 4,277,099
106,358
4,418,518
8,801
106,516
16,085
2,334,482
150,075
11,417,934
23,264,376
25,406,610
1,459,252
313,941
9,855
50,454,034
$
61,871,968
% Amount
7 - 7 - - - 4 - 18
7,327,220
237,283
4,793,649
11,430
162,460
20,515
2,023,519
255,971
14,832,047
38
24,345,359
41
27,364,501
2
1,677,857
1 -
647,139
15,202
82
54,050,058
100
68,882,105
%
Liabilities and equity Current liabilities:
11 - 7 - - - 3 - 21
2130 Current contract liabilities (note 6(m))
2170 Accounts payable
2180 Accounts payable to related parties (note 7)
2200 Other payables (note 7)
2230 Current tax liabilities
2281 Current lease liabilities (note 6(h))
2282 Current lease liabilities, related parties (notes 6(h) and 7)
2300 Other current liabilities
Total current liabilities Non-current liabilities:
35
2527 Non-current contract liabilities (note 6(m))
40
2570 Deferred tax liabilities (note 6(j))
3
2581 Non-current lease liabilities (note 6(h))
1 -
2582 Non-current lease liabilities, related parties (notes 6(h) and 7)
2640 Net defined benefit liability, non-current (note 6(i))
79
2645 Guarantee deposits received
Total non-current liabilities
Total liabilities
Equity (note 6(k)):
3100 Ordinary shares
3200 Capital surplus
3310 Legal reserve
3320 Special reserve
3350 Unappropriated retained earnings
3400 Other equity interest
Total equity
100
Total liabilities and equity
December 31, 2024
December 31, 2023
Amount
$ 2,218,144
563,057
512,325
1,792,002
315,597
4,693
258,467
70,375
5,734,660
5,515,202
2,985,727
-
1,216,311
926,779
42,909
10,686,928
16,421,588
6,461,655
18,125,632
8,473,910
1,112,574
11,601,037
(324,428)
45,450,380
% Amount
4
1
1
3
1 - - -
10
9
5 -
2
1 -
17
27
10 29 14 2
19 15,814,388
(1) (1,112,574)
73
$
61,871,968 100
1,991,749
1,605,086
575,585
2,322,369
849,868
9,588
246,114
98,024
7,698,383
7,233,676
3,441,505
2,216
1,435,463
1,112,644
50,302
13,275,806
20,974,189
6,461,655 18,125,615 7,857,185
761,647
47,907,916
%
3
2
1
3
1 - - -
10
11
5 -
2
2 -
20
30
10
26
12
1
23
(2)
70
68,882,105 100
5
(English Translation of Financial Statements Originally Issued in Chinese)
NAN YA PRINTED CIRCUIT BOARD CORPORATION
Statements of Comprehensive Income
For the years ended December 31, 2024 and 2023
(Expressed in Thousands of New Taiwan Dollars , Except for Earnings Per Share)
2024
Amount
4000 Operating revenue (notes 6(m) and 7)
5000 Operating costs (notes 6(d), (f), (g), (h), (i), (n) and 7)
Gross profit from operations
5910 Less: Unrealized profit on from sales (note 7)
5920 Add: Realized profit on from sales (note 7)
Gross profit from operations
Operating expenses (notes 6(b), (f), (g), (h), (i), (n) and 7):
6100 Selling expenses
6200 Administrative expenses
6450 Gain on reversal of expected credit impairment
6000
Total operating expenses
6900 Net operating (loss) income
Non-operating income and expenses (notes 6(f), (h), (o) and 7):
7100 Interest income
7010 Other income
7020 Other gains and losses
7050 Finance costs
7070 Share of profit (loss) of subsidiaries and associates accounted for using equity method, net
Total non-operating income and expenses
7900 Profit before tax
7950 Less: Tax (benefit) expense (note 6(j))
Profit
8300 Other comprehensive income (notes 6(e), (i), (j) and (k)):
8310 Components of other comprehensive income that will not be reclassified to profit or loss
8311 Gains on remeasurements of defined benefit plans
8316 Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income
8330 Share of other comprehensive income of associates accounted for using equity method
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
8360 Components of other comprehensive income that will be reclassified to profit or loss
8361 Exchange differences on translation
8399 Less: income tax related to components of other comprehensive income that will be reclassified to profit or loss
Components of other comprehensive income that will be reclassified to profit or loss
8300 Other comprehensive income, net
8500 Total comprehensive income Earnings per share (note 6(l))
9750 Basic earnings per share
9850 Diluted earnings per share
$ 21,858,913
20,956,510
902,403
174
745
902,974
237,445
1,024,835
-
1,262,280
(359,306)
% 100 96 4
- - 4 5,971,454 20
1 313,029 1
5 1,135,564 4
- 6 (2)
150,027 206,841 447,572
(17,535) - (266,397)
520,508
161,202
(42,525)
203,727
130,345 (130,925)
(42,082) 26,069
(68,731)
1,201,702 240,341 961,361 892,630
$ 1,096,357
$ $
1 1 2
(1) 3 1
- 1,361,287 4
1
1 438,026 1
(1) (39,323)
- - - 5 1 4 4
5 5,816,320 20
0.32 9.00
2023
Amount
%
29,480,433 100
23,510,903 80
5,969,530 20
745 2,669
(24,950)
- - -
1,423,643 5
4,547,811 15
220,023 1
235,435 1
85,139 (19,371)
- -
2,108,839 7
2,630,065 9
7,177,876 24
5,816,589 20
749 87,606 311,846
- - -
1
(390,144) (1)
(78,029) -
(312,115) (1)
(269)
-
0.32 9.00
6
NAN YA PRINTED CIRCUIT BOARD CORPORATION
Statements of Changes in Equity
For the years ended December 31, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollars)
Ordinary share
Cash dividends of ordinary share Other changes in capital surplus:
Balance at January 1, 2023
Profit for the year ended December 31, 2023
Other comprehensive income for the year ended December 31, 2023
Total comprehensive income for the year ended December 31, 2023 Appropriation and allocation of earnings:
Legal reserve appropriated
Reversal of special reserve
Cash dividends of ordinary share Other changes in capital surplus:
Other changes in capital surplus Balance at December 31, 2023
Profit for the year ended December 31, 2024
Other comprehensive income for the year ended December 31, 2024
Total comprehensive income for the year ended December 31, 2024 Appropriation and allocation of earnings:
Legal reserve appropriated
Special reserve appropriated
Other changes in capital surplus Balance at December 31, 2024
$ 6,461,655 - - - - - - - 6,461,655 - - - - - - -
$ 6,461,655
7 |
18,125,615 |
- |
- |
- |
- |
- |
- |
Unappropriated | |||||
Legal | Special | retained | |||
reserve | reserve | earnings | |||
5,896,621 | 861,246 | 23,139,084 | (744,544) | (17,103) | |
- | - | 5,816,589 | - | - | |
- | - | 350,658 | (312,115) | (38,812) | |
- | - | 6,167,247 | (312,115) | (38,812) | |
1,960,564 | - | (1,960,564) | - | - | |
- | (99,599) | 99,599 | - | - | |
- | - | (11,630,978) | - | - | |
- | - | - | - | - | |
7,857,185 | 761,647 | 15,814,388 | (1,056,659) | (55,915) | |
- | - | 203,727 | - | - | |
- | - | 104,484 | 961,361 | (173,215) | |
- | - | 308,211 | 961,361 | (173,215) | |
616,725 | - | (616,725) | - | - | |
- | 350,927 | (350,927) | - | - | |
- | - | (3,553,910) | - | - | |
17 | - | - | - | - | - |
18,125,632 | 8,473,910 | 1,112,574 | 11,601,037 | (95,298) | (229,130) |
Capital surplus
18,125,608 - - - - - -
Other equity interest | ||
Unrealized | ||
gains (losses) | ||
on financial | ||
Exchange assets | ||
differences on measured at | ||
translation of fair value | ||
foreign through other | ||
financial comprehensive | ||
statements income | Total | Total equity |
(761,647) | 53,722,567 | |
- | 5,816,589 | |
(350,927) | (269) | |
(350,927) | 5,816,320 | |
- | - | |
- | - | |
- | (11,630,978) | |
- | 7 | |
(1,112,574) | 47,907,916 | |
- | 203,727 | |
788,146 | 892,630 | |
788,146 | 1,096,357 | |
- | - | |
- | - | |
- | (3,553,910) | |
- | 17 | |
(324,428) | 45,450,380 |
7
(English Translation of Financial Statements Originally Issued in Chinese)
NAN YA PRINTED CIRCUIT BOARD CORPORATION
Statements of Cash Flows
For the years ended December 31, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollars)
2023 | |||
Cash flows from operating activities: | |||
Profit Before tax | $ | 7,177,876 | |
Adjustments: | |||
Adjustments to reconcile profit : | |||
Depreciation expense | 3,578,415 | ||
Gain on reversal of expected credit impairment | (24,950) | ||
Interest expense | 17,535 | 19,371 | |
Interest income | (150,027) | (220,023) | |
Dividend income | (2,996) | (12,583) | |
Share of loss (profit) of subsidiaries and associates accounted for using equity method | 266,397 | (2,108,839) | |
(Gain) Loss on disposal of property, plant and equipment | (6,886) | 2,091 | |
Reversal of impairment loss on non-financial assets | (75) | (14,033) | |
Unrealized profit on from sales | 174 | 745 | |
Realized profit on from sales | (745) | (2,669) | |
Unrealized foreign exchange (gain) loss | (99,473) | 197,191 | |
Total adjustments to reconcile profit | 4,114,869 | 1,414,716 | |
Changes in operating assets and liabilities: | |||
Changes in operating assets: | |||
Decrease in notes and accounts receivable (including related parties) | 451,735 | 6,534,206 | |
Decrease in other receivables (including related parties) | 60,071 | 87,479 | |
(Increase) decrease in inventories | (310,963) | 1,530,463 | |
Decrease in prepayments | 5,594 | 101,753 | |
Total changes in operating assets | 206,437 | 8,253,901 | |
Changes in operating liabilities: | |||
(Decrease) increase in contract liabilities | (1,492,079) | 508,211 | |
Decrease in accounts payable (including related parties) | (1,107,112) | (943,704) | |
Decrease in other payables | (530,352) | (751,944) | |
Decrease in other current liabilities | (27,649) | (49,954) | |
Decrease in net defined benefit liability | (55,520) | (351,417) | |
Total changes in operating liabilities | (3,212,712) | (1,588,808) | |
Total changes in operating assets and liabilities | (3,006,275) | 6,665,093 | |
Total adjustments | 1,108,594 | 8,079,809 | |
Cash inflow generated from operations | 1,269,796 | 15,257,685 | |
Interest received | 150,330 | 220,806 | |
Interest paid | (17,535) | (19,371) | |
Income taxes paid | (880,433) | (2,994,252) | |
Net cash flows from operating activities | 522,158 | 12,464,868 | |
Cash flows from (used in) investing activities | |||
Acquisition of financial assets at fair value through other comprehensive income | - | (276,606) | |
Acquisition of property, plant and equipment | (1,889,589) | (9,888,656) | |
Proceeds from disposal of property, plant and equipment | 47,596 | 10,722 | |
Decrease (increase) in other financial assets | 100,000 | (100,000) | |
Decrease (increase) in other non-current assets | 5,347 | (3,731) | |
Dividends received | 1,963,496 | 56,364 | |
Net cash flows from (used in) investing activities | 226,850 | (10,201,907) | |
Cash flows used in financing activities: | |||
(Decrease) increase in guarantee deposits received | (7,692) | 4,924 | |
Payment of lease liabilities | (265,146) | (254,960) | |
Cash dividends paid | (3,553,910) | (11,630,978) | |
Net cash flows used in financing activities | (3,826,748) | (11,881,014) | |
Effect of exchange rate changes on cash and cash equivalents | 27,619 | (36,758) | |
Net decrease in cash and cash equivalents | (3,050,121) | (9,654,811) | |
Cash and cash equivalents at beginning of period | 7,327,220 | 16,982,031 | |
Cash and cash equivalents at end of period | $ | 4,277,099 | 7,327,220 |
See accompanying notes to financial statements. |
2024
161,202
4,090,965 -
(English Translation of Financial Statements Originally Issued in Chinese)
NAN YA PRINTED CIRCUIT BOARD CORPORATION
Notes to the Financial Statements
For the years ended December 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's main operating activities are primarily in the manufacturing and selling of printed circuit boards.
(2) Approval date and procedures of the financial statements
The accompanying financial statements were approved and authorized for issue by the Board of Directors on February 27, 2025.
(3) New standards, amendments and interpretations adopted:
(a) The impact of the IFRS Accounting Standards endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted.
The Company has initially adopted the following new amendments, which do not have a significant impact on its 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"
(b) The impact of IFRS Accounting Standards endorsed by the FSC but not yet effective
The Company 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 financial statements:
● Amendments to IAS21 "Lack of Exchangeability"
(Continued)