For the convenience of readers and for information purpose only, the auditors' report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors' report and financial statements shall prevail.
INDEPENDENT AUDITORS' REVIEW REPORT TRANSLATED FROM CHINESE
To the Board of Directors and Shareholders of NANTEX INDUSTRY CO., LTD.
IntroductionWe have reviewed the accompanying consolidated balance sheets of NANTEX INDUSTRY CO., LTD. and subsidiaries (the "Group") as at June 30, 2025 and 2024, and the related consolidated statements of comprehensive income for the three months and six months then ended, as well as the related consolidated statements of changes in equity and of cash flows for the six months then ended, and notes to the consolidated financial statements, including a summary of material accounting policies. Management is responsible for the preparation and fair presentation of these 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" that came into effect as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.
Scope of reviewExcept as explained in the following paragraph, we conducted our reviews in accordance with the Standard on Review Engagements 2410, "Review of Financial Information Performed by the Independent Auditor of the Entity" of the Republic of China. A review of 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 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 on the second quarter financial statements of 2024The financial statements and related information disclosed in Note 13 of an insignificant consolidated subsidiary, Nanmat Technology Co., Ltd., were not reviewed by independent auditors. Total assets of the subsidiary amounted to NT$2,544,264 thousand, constituting 14.53% of the consolidated total assets, and total liabilities amounted to NT$607,965 thousand, constituting 29.59% of the consolidated total liabilities as at June 30, 2024, and the total comprehensive income amounted to NT$128,475 thousand and NT237,201 thousand, constituting 40.13% and 29.64% of the consolidated total comprehensive
income for the three months and six months then ended, respectively.
Unmodified conclusion and Qualified conclusionExcept for the adjustments to the consolidated financial statements, if any, as might have been determined to be necessary had the financial statements of an insignificant consolidated subsidiary and the information disclosed in Note 13, been reviewed by independent auditors as described in the Basis for qualified conclusion section above, 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 the Group as at June 30, 2025 and 2024, and of its consolidated financial performance and its consolidated cash flows for the three months and six months then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, "Interim Financial Reporting" that came into effect as endorsed by the Financial Supervisory Commission.
Hsu, Huei-Yu
Independent Accountants
Tien, Chung-Yu
PricewaterhouseCoopers, Taiwan Republic of China
August 8, 2025
The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors' report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.
As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.
NANTEX INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
JUNE 30, 2025, DECEMBER 31, 2024 AND JUNE 30, 2024
(Expressed in thousands of New Taiwan dollars)
June 30, 2025 | December 31, 2024 | June 30, 2024 |
Assets Notes AMOUNT % | AMOUNT % | AMOUNT % |
1100 | Cash and cash equivalents | 6(1) | $ 8,881,781 | 54 | $ 10,219,416 | 56 | $ 6,329,054 | 36 | |||||
1110 | Current financial assets at fair value through profit or loss | 6(2) | 30,030 | - | 30,030 | - | 30,060 | - | |||||
1136 | Current financial assets at amortised cost | 6(1)(3) and 8 | 376,269 | 2 | 425,716 | 2 | 3,582,569 | 21 | |||||
1150 | Notes receivable, net | 6(4) | 144,729 | 1 | 149,134 | 1 | 167,461 | 1 | |||||
1170 | Accounts receivable, net | 6(4) | 805,649 | 5 | 995,899 | 6 | 1,144,272 | 7 | |||||
1200 | Other receivables | 28,087 | - | 62,078 | - | 80,324 | - | ||||||
1220 | Current income tax assets | 53,137 | - | - | - | - | - | ||||||
130X | Inventories | 6(5) | 1,564,934 | 10 | 1,700,228 | 9 | 1,477,623 | 8 | |||||
1410 | Prepayments | 342,716 | 2 | 364,339 | 2 | 472,916 | 3 | ||||||
11XX | Total current assets | 12,227,332 | 74 | 13,946,840 | 76 | 13,284,279 | 76 | ||||||
1517 | Non-current assets Non-current financial assets at | 6(6) | |||||||||||
fair value through other comprehensive income | 593,280 | 4 | 609,320 | 4 | 580,052 | 3 | |||||||
1600 | Property, plant and equipment | 6(7) and 8 | 2,587,686 | 16 | 2,576,149 | 14 | 2,641,884 | 15 | |||||
1755 | Right-of-use assets | 6(8) and 7 | 189,954 | 1 | 211,938 | 1 | 229,835 | 1 | |||||
1780 | Intangible assets | 6(9) | 8,780 | - | 10,735 | - | 10,291 | - | |||||
1840 | Deferred income tax assets | 6(24) | 16,021 | - | 18,175 | - | 31,971 | - | |||||
1915 | Prepayments for equipment | 129,094 | 1 | 124,479 | 1 | 61,876 | 1 | ||||||
1920 | Guarantee deposits paid | 8 | 683 | - | 683 | - | 678 | - | |||||
1975 | Net defined benefit asset | 239,999 | 1 | 238,442 | 1 | 178,872 | 1 | ||||||
1990 | Other non-current assets | 542,366 | 3 | 513,807 | 3 | 488,052 | 3 | ||||||
15XX | Total non-current assets | 4,307,863 | 26 | 4,303,728 | 24 | 4,223,511 | 24 | ||||||
1XXX | Total assets | $ 16,535,195 | 100 | $ 18,250,568 | 100 | $ 17,507,790 | 100 | ||||||
(Continued) |
NANTEX INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
JUNE 30, 2025, DECEMBER 31, 2024 AND JUNE 30, 2024
(Expressed in thousands of New Taiwan dollars)
June 30, 2025 | December 31, 2024 | June 30, 2024 |
Liabilities and Equity Notes AMOUNT % | AMOUNT % | AMOUNT % |
2100 | Short-term borrowings | 6(10) | $ 120,000 | 1 | $ 110,000 | 1 | $ 160,000 | 1 | |||||
2130 | Current contract liabilities | 6(17) | 31,845 | - | 43,198 | - | 51,686 | - | |||||
2150 | Notes payable | - | - | - | - | 8 | - | ||||||
2170 | Accounts payable | 292,182 | 2 | 423,557 | 2 | 411,844 | 3 | ||||||
2200 | Other payables | 6(11) and 7 | 650,182 | 4 | 707,364 | 4 | 623,696 | 4 | |||||
2230 | Current income tax liabilities | 117,094 | 1 | 283,639 | 2 | 234,146 | 1 | ||||||
2280 | Current lease liabilities | 7 | 36,197 | - | 36,298 | - | 35,733 | - | |||||
2320 | Long-term liabilities, current portion | 6(12) and 8 | 14,000 | - | 10,000 | - | 10,000 | - | |||||
21XX | Total current liabilities | 1,261,500 | 8 | 1,614,056 | 9 | 1,527,113 | 9 | ||||||
2540 | Non-current liabilities Long-term borrowings | 6(12) and 8 | 14,500 | - | 12,500 | - | 17,500 | - | |||||
2570 | Deferred income tax liabilities | 6(24) | 405,797 | 2 | 376,034 | 2 | 334,802 | 2 | |||||
2580 | Non-current lease liabilities | 7 | 131,848 | 1 | 149,799 | 1 | 167,137 | 1 | |||||
2640 | Net defined benefit liabilities | 4,150 | - | 6,083 | - | 8,014 | - | ||||||
25XX | Total non-current liabilities | 556,295 | 3 | 544,416 | 3 | 527,453 | 3 | ||||||
2XXX | Total liabilities | 1,817,795 | 11 | 2,158,472 | 12 | 2,054,566 | 12 | ||||||
Equity Equity attributable to owners of | |||||||||||||
parent Share capital | 6(14) | ||||||||||||
3110 | Common stock Capital surplus | 6(15) | 4,924,167 | 30 | 4,924,167 | 27 | 4,924,167 | 28 | |||||
3200 | Capital surplus Retained earnings | 6(16) | 29,204 | - | 29,204 | - | 28,939 | - | |||||
3310 | Legal reserve | 2,681,888 | 16 | 2,620,943 | 14 | 2,620,943 | 15 | ||||||
3320 | Special reserve | 433,442 | 3 | 433,442 | 2 | 433,442 | 3 | ||||||
3350 | Unappropriated retained earnings | 5,925,044 | 36 | 6,314,514 | 35 | 5,969,745 | 34 | ||||||
Other equity interest | |||||||||||||
3400 | Other equity interest | 6(6) | ( | 588,735)( | 4) | 451,165 | 3 | 333,571 | 2 | ||||
31XX | Total equity attributable to owners of the parent | 13,405,010 | 81 | 14,773,435 | 81 | 14,310,807 | 82 | ||||||
36XX | Non-controlling interest | 4(3) | 1,312,390 | 8 | 1,318,661 | 7 | 1,142,417 | 6 | |||||
3XXX | Total equity | 14,717,400 | 89 | 16,092,096 | 88 | 15,453,224 | 88 | ||||||
Significant contingent liabilities | 7 and 9 | ||||||||||||
and unrecognised contract commitments | |||||||||||||
3X2X | Significant events after the balance sheet date Total liabilities and equity | 11 | $ 16,535,195 | 100 | $ 18,250,568 | 100 | $ 17,507,790 | 100 | |||||
The accompanying notes are an integral part of these consolidated financial statements.
NANTEX INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME SIX MONTHS ENDED JUNE 30, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars, except for earnings per share amounts)
Three months ended June 30 Six months ended June 30
2025 Items Notes AMOUNT % | 2024 AMOUNT % | 2025 AMOUNT % | 2024 AMOUNT % | ||||||||||||
4000 | Operating revenue | 6(17) | $ 2,626,464 | 100 | $ 3,060,766 | 100 | $ 4,897,675 | 100 | $ 5,241,448 | 100 | |||||
5000 | Operating costs | 6(5)(9)(13)(22 | |||||||||||||
)(23) | ( | 2,154,066) ( 82) ( | 2,483,774) ( 81) ( | 3,882,660) ( 79) ( | 4,181,155) ( 79) | ||||||||||
5900 | Net operating margin | 472,398 18 | 576,992 19 | 1,015,015 21 | 1,060,293 21 | ||||||||||
Operating expenses | 6(9)(13)(22)(2 | ||||||||||||||
6100 | Selling expenses | 3) and 12 | ( | 131,120) ( | 5) ( | 152,920) ( | 5) ( | 259,335) ( | 5) ( | 267,129) ( | 5) | ||||
6200 | General and administrative expenses | ( | 179,547) ( | 6) ( | 186,232) ( | 6) ( | 375,737) ( | 8) ( | 365,428) ( | 7) | |||||
6300 | Research and development expenses | ( | 22,908) ( | 1) ( | 27,330) ( | 1) ( | 46,217) ( | 1) ( | 50,070) ( | 1) | |||||
6450 | Expected credit impairment | ||||||||||||||
gain (loss) | 15 - ( | 341) - | 167 - ( | 219 | ) - | ||||||||||
6000 Total operating expenses ( | 333,560) ( 12) ( | 366,823) ( 12) ( | 681,122) ( 14) ( | 682,846 | ) ( 13) | ||||||||||
6900 Operating profit | 138,838 6 | 210,169 7 | 333,893 7 | 377,447 | 8 | ||||||||||
Non-operating income and expenses | |||||||||||||||
7100 | Interest income | 6(3)(18) | 95,568 | 4 | 115,640 | 4 | 192,245 | 4 | 232,518 | 4 | |||||
7010 | Other income | 6(6)(19) | 12,765 | - | 26,418 | 1 | 14,337 | - | 28,515 | 1 | |||||
7020 | Other gains and losses | 6(2)(20) and 12 | ( | 129,288) ( | 5) | 16,456 | - | ( | 112,058) ( | 2) | 66,974 | 1 | |||
7050 | Finance costs | 6(21) and 7 | ( | 1,377) - ( | 1,501) | - | ( | 2,738) | - | ( | 3,042) | - | |||
7000 | Total non-operating income | ||||||||||||||
and expenses | ( | 22,332 | ||
7900 | Profit before income tax | 116,506 | ||
7950 | Income tax expense | 6(24) | ( | 43,728 |
) ( 1) 157,013 5 91,786 2 324,965 6
5 367,182 12 425,679 9 702,412 14
) ( 2) ( 131,137) ( 5) ( 114,407) ( 3) ( 297,785) ( 6)
8200 | Profit for the period | $ 72,778 | 3 | $ 236,045 | 7 $ | 311,272 | 6 | $ 404,627 | 8 | ||||||
Other comprehensive income | |||||||||||||||
(loss) | |||||||||||||||
Components of other | |||||||||||||||
comprehensive income (loss) | |||||||||||||||
that will not be reclassified to | |||||||||||||||
profit or loss |
8316 Unrealised losses on financial
assets measured at fair value through other comprehensive income
Components of other comprehensive income (loss) that will be reclassified to profit or loss8361 Financial statements translation differences of foreign operations
8300 Other comprehensive income (loss) for the period
8500 Total comprehensive income (loss) for the period
Profit attributable to:
8610 Owners of the parent
8620 Non-controlling interest Profit for the period
Comprehensive income (loss) attributable to:
8710 Owners of the parent
8720 Non-controlling interest Total comprehensive income (loss) for the period
6(6)
($ 30,070) ( 1) ($ 33,253) ( 1) ($ 1,439) - ($ 48,304) ( 1)
( 1,187,265) ( 46) | 117,342 | 4 | ( | 1,038,461) ( 21) | 443,898 | 8 | |||||
($ | 1,217,335) ( | 47) | $ 84,089 | 3 | ($ | 1,039,900) ( | 21) | $ 395,594 | 7 | ||
($ | 1,144,557) ( | 44) | $ 320,134 | 10 | ($ | 728,628) ( | 15) | $ 800,221 | 15 | ||
$ | 13,518 | 1 | $ 160,245 | 5 | $ | 163,892 | 3 | $ 264,678 | 5 | ||
59,260 | 2 | 75,800 | 2 | 147,380 | 3 | 139,949 | 3 | ||||
$ | 72,778 | 3 | $ 236,045 | 7 | $ | 311,272 | 6 | $ 404,627 | 8 | ||
($ | 1,203,817) ( | 46) | $ 244,334 | 8 | ($ | 876,008) ( | 18) | $ 660,272 | 12 | ||
59,260 | 2 | 75,800 | 2 | 147,380 | 3 | 139,949 | 3 | ||||
($ | 1,144,557) ( | 44) | $ | 320,134 | 10 | ($ | 728,628) ( | 15) | $ | 800,221 | 15 |
Earnings per share (in dollars) 6(25)
9750 | Basic | $ | 0.03 | $ | 0.33 | $ | 0.33 | $ | 0.54 | |||
9850 | Diluted | $ | 0.03 | $ | 0.33 | $ | 0.33 | $ | 0.54 |
NANTEX INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY SIX MONTHS ENDED JUNE 30, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)
Equity attributable to owners of the parent
Share capital Capital surplus Retained earnings Other equity interest
Unrealised gains (losses) from financial assets
Changes in ownership interest
Unappropriated
Financial statements translation
differences of
measured at fair value through
other
comprehensive
Non-controlling
Notes Common stock of subsidiaries Legal reserve Special reserve retained earnings foreign operations income Total interest Total equity
Six months ended June 30, 2024 Balance at January 1, 2024 | $ 4,924,167 | $ 28,939 | $ 2,547,956 | $ 433,442 | $ 6,270,471 | ($ 226,409 ) | $ 164,386 | $ 14,142,952 | $ 1,094,658 | $ 15,237,610 | ||||
Profit for the period | - | - | - | - | 264,678 | - | - | 264,678 | 139,949 | 404,627 | ||||
Other comprehensive income (loss) for the period | 6(6) | - | - | - | - | - | 443,898 ( | 48,304 ) | 395,594 | - | 395,594 | |||
Total comprehensive income (loss) for the period | - | - | - | - | 264,678 | 443,898 ( | 48,304 ) | 660,272 | 139,949 | 800,221 | ||||
Distribution of 2023 net income: | ||||||||||||||
Legal reserve | - | - | 72,987 | - ( | 72,987 ) | - | - | - | - | - | ||||
Cash dividends | 6(16) | - | - | - | - ( | 492,417 ) | - | - ( | 492,417 ) | - ( | 492,417 ) | |||
Changes in non-controlling interests | - | - | - | - | - | - | - | - ( | 92,190 ) ( | 92,190 ) | ||||
Balance at June 30, 2024 | $ 4,924,167 | $ 28,939 | $ 2,620,943 | $ 433,442 | $ 5,969,745 | $ 217,489 | $ 116,082 | $ 14,310,807 | $ 1,142,417 | $ 15,453,224 | ||||
Six months ended June 30, 2025 | ||||||||||||||
Balance at January 1, 2025 | $ 4,924,167 | $ 29,204 | $ 2,620,943 | $ 433,442 | $ 6,314,514 | $ 307,218 | $ 143,947 | $ 14,773,435 | $ 1,318,661 | $ 16,092,096 | ||||
Profit for the period | - | - | - | - | 163,892 | - | - | 163,892 | 147,380 | 311,272 | ||||
Other comprehensive loss for the period | 6(6) | - | - | - | - | - | ( 1,038,461 ) ( | 1,439 ) ( | 1,039,900 ) | - ( | 1,039,900 ) | |||
Total comprehensive income (loss) for the period | - | - | - | - | 163,892 | ( 1,038,461 ) ( | 1,439 ) ( | 876,008 ) | 147,380 ( | 728,628 ) | ||||
Distribution of 2024 net income: Legal reserve | - | - | 60,945 | - ( | 60,945 ) | - | - | - | - | - | ||||
Cash dividends | 6(16) | - | - | - | - ( | 492,417 ) | - | - ( | 492,417 ) | - ( | 492,417 ) | |||
Changes in non-controlling interests | - | - | - | - | - | - | - | - ( | 153,651 ) ( | 153,651 ) | ||||
Balance at June 30, 2025 | $ 4,924,167 | $ 29,204 | $ 2,681,888 | $ 433,442 | $ 5,925,044 | ($ 731,243 ) | $ 142,508 | $ 13,405,010 | $ 1,312,390 | $ 14,717,400 |
NANTEX INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)
Six months ended June 30
Notes | 2025 | 2024 | |||
CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax | $ 425,679 | $ 702,412 | |||
Adjustments | |||||
Adjustments to reconcile profit (loss) | |||||
Losses on valuation of financial assets at fair | 6(2)(20) | ||||
value through profit or loss | - | 90 | |||
Expected credit impairment (gain) loss | 12 | ( | 167 ) | 219 | |
Reversal of provision for inventory market price | 6(5) | ||||
decline | ( | 24 ) | ( | 14,714 ) | |
Depreciation | 6(7)(8)(22) | 166,804 | 166,896 | ||
Losses on disposals of property, plant and | 6(20) | ||||
equipment | 912 | 2,537 | |||
Amortisation | 6(9)(22) | 1,359 | 1,252 | ||
Interest income | 6(18) | ( | 192,245 ) | ( | 232,518 ) |
Dividend income | 6(6)(19) | ( | 5,724 ) | ( | 16,560 ) |
Interest expense | 6(21) | 2,738 | 3,042 | ||
Unrealised exchange loss | - | 7,677 | |||
Changes in operating assets and liabilities Changes in operating assets | |||||
Notes receivable | 4,405 | ( | 46,516 ) | ||
Accounts receivable | 190,460 | ( | 438,194 ) | ||
Other receivables | 31,407 | ( | 14,649 ) | ||
Inventories | 135,318 | ( | 130,056 ) | ||
Prepayments | 21,623 | ( | 178,255 ) | ||
Net defined benefit assets | ( | 1,557 ) | 16 | ||
Other non-current assets | ( | 27,842 ) | 14,354 | ||
Changes in operating liabilities | |||||
Current contract liabilities | ( | 11,353 ) | 5,294 | ||
Notes payable | - | 8 | |||
Accounts payable | ( | 131,375 ) | 155,195 | ||
Other payables | ( | 215,772 ) | ( | 136,409 ) | |
Net defined benefit liabilities | ( 1,933 ) | 820 | |||
Cash inflow (outflow) generated from | |||||
operations | 392,713 | ( 148,059 ) | |||
Interest received | 194,829 | 213,854 | |||
Dividends received | 5,724 | 16,560 | |||
Interest paid | ( 2,724 ) | ( 3,025 ) | |||
Income tax paid | ( 302,172 ) | ( 201,645 ) | |||
Net cash flows from (used in) operating | |||||
activities | 288,370 | ( 122,315 ) | |||
(Continued) | |||||
NANTEX INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)
Six months ended June 30
Notes 2025 | 2024 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES Cash paid for acquisition of current financial assets | |||||
at amortised cost | ($ 317,483 ) | ($ 2,419,088 ) | |||
Proceeds from disposal of current financial assets at | |||||
amortised cost | 366,930 | 896,723 | |||
Acquisition of financial assets at fair value through | |||||
other comprehensive income - ( | 13,824 ) | ||||
Cash paid for acquisition of property, plant and | 6(26) | ||||
equipment | ( | 81,778 ) | ( | 38,591 ) | |
Proceeds from disposal of property, plant and | |||||
equipment | 399 | 1,053 | |||
Increase in intangible assets | 6(9) | ( | 41 ) | ( | 158 ) |
Increase in prepayments for equipment | ( | 155,305 ) | ( | 72,124 ) | |
Decrease in guarantee deposits paid | - | 2,667 | |||
(Increase) decrease in other non-current assets | ( | 717 ) | 1,995 | ||
Net cash flows used in investing activities | ( | 187,995 ) | ( | 1,641,347 ) | |
CASH FLOWS FROM FINANCING ACTIVITIES Increase (decrease) in short-term borrowings | 6(27) | 10,000 | ( | 20,000 ) | |
Payment of lease liabilities | 6(27) | ( | 18,052 ) | ( | 17,978 ) |
Increase in long-term borrowings | 6(27) | 12,000 | 30,000 | ||
Decrease in long-term borrowings | 6(27) | ( | 6,000 ) | ( | 15,000 ) |
Payment of cash dividends | 6(16) | ( | 492,417 ) | ( | 492,417 ) |
Net cash flows used in financing activities | ( | 494,469 ) | ( | 515,395 ) | |
Effect of foreign exchange rate changes | ( | 943,541 ) | 354,643 | ||
Net decrease in cash and cash equivalents | ( | 1,337,635 ) | ( | 1,924,414 ) | |
Cash and cash equivalents at beginning of period | 6(1) | 10,219,416 | 8,253,468 | ||
Cash and cash equivalents at end of period | 6(1) | $ 8,881,781 | $ 6,329,054 | ||
The accompanying notes are an integral part of these consolidated financial statements.
NANTEX INDUSTRY CO., LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
SIX MONTHS ENDED JUNE 30, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)
HISTORY AND ORGANISATION
NANTEX INDUSTRY CO., LTD. (the "Company") was incorporated as a company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.) on January 10, 1979. The Company and its subsidiaries (collectively referred herein as the "Group") are primarily engaged in the manufacture, processing and sales of various types of latex, rubber and related products.
The common shares of the Company have been listed on the Taiwan Stock Exchange since October 27, 1992.
THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL
STATEMENTS AND PROCEDURES FOR AUTHORISATION
These consolidated financial statements were authorised for issuance by the Board of Directors on August 8, 2025.
APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS
Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards ("IFRS®") Accounting Standards that came into effect as endorsed by the Financial Supervisory Commission ("FSC")
New standards, interpretations and amendments endorsed by the FSC and became effective from 2025 are as follows:
Effective date by International Accounting
New Standards, Interpretations and Amendments Standards Board ("IASB")
Amendments to IAS 21, 'Lack of exchangeability' January 1, 2025
The above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment.
Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC but not yet adopted by the Group
New standards, interpretations and amendments endorsed by the FSC effective from 2026 are as follows:
New Standards, Interpretations and Amendments Effective date by IASB
Specific provisions of Amendments to IFRS 9 and IFRS 7, 'Amendments to the classification and measurement of financial instruments'
Amendments to IFRS 9 and IFRS 7, 'Contracts referencing nature-dependent electricity'
January 1, 2026
January 1, 2026
IFRS 17, 'Insurance contracts' January 1, 2023
Amendments to IFRS 17, 'Insurance contracts' January 1, 2023
Amendment to IFRS 17, 'Initial application of IFRS 17 and IFRS 9 －
comparative information'
January 1, 2023
Annual Improvements to IFRS Accounting Standards－Volume 11 January 1, 2026
The above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment.
IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC
New standards, interpretations and amendments issued by IASB but not yet included in the IFRS Accounting Standards as endorsed by the FSC are as follows:
New Standards, Interpretations and Amendments Effective date by IASB
Amendments to IFRS 10 and IAS 28, 'Sale or contribution of assets between an investor and its associate or joint venture'
To be determined by IASB
IFRS 18, 'Presentation and disclosure in financial statements' January 1, 2027 IFRS 19, 'Subsidiaries without public accountability: disclosures' January 1, 2027
Except for the following, the above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment.
IFRS 18, 'Presentation and disclosure in financial statements'
IFRS 18, 'Presentation and disclosure in financial statements' replaces IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to management-defined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes.
SUMMARY OF MATERIAL ACCOUNTING POLICIES
The principal accounting policies adopted are consistent with Note 4 of the consolidated financial statements for the year ended December 31, 2024, except for the compliance statement, basis of preparation and basis of consolidation as set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.
Compliance statement
The consolidated financial statements of the Group have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Accounting Standard 34, 'Interim financial reporting' that came into effect as endorsed by the FSC.
The consolidated financial statements of the Group should be read together with the consolidated financial statements for the year ended December 31, 2024.
Basis of preparation
Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:
Financial assets at fair value through profit or loss.
Financial assets at fair value through other comprehensive income.
Defined benefit assets or liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.
The preparation of financial statements in conformity with International Financial Reporting
Standards, International Accounting Standards, IFRIC®Interpretations, and SIC®Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the "IFRSs") requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5, 'Critical accounting judgements, estimates and key sources of assumption uncertainty'.
Basis of consolidation
Basis for preparation of consolidated financial statements:
The basis for preparation of these consolidated financial statements is consistent with those for the preparation of consolidated financial statements for the year ended December 31, 2024.
Subsidiaries included in the consolidated financial statements:
Ownership (%)
Name of investor Name of subsidiary Business activities
June 30,
2025
December 31,
2024
Note
NANTEX
INTERMEDIUM
General
100.00%
100.00%
-
INDUSTRY CO.,
INTERNATIONAL
investments
LTD.
LIMITED
Nanmat Technology
CVD materials and
41.00%
41.00%
(Note)
Co., Ltd.
metal surface
treatment
INTERMEDIUM
Zhenjiang Nantex
chemicals Manufacture and
100.00%
100.00%
-
INTERNATIONAL
Chemical Industry
sales of rubber
LIMITED
Co., Ltd.
and latex
Ownership (%) June 30,
Name of investor Name of subsidiary Business activities 2024 Note
NANTEX INDUSTRY CO.,
LTD.
INTERMEDIUM INTERNATIONAL
LIMITED
General investments
100.00%
-
Nanmat Technology
CVD materials and
41.00%
(Note)
Co., Ltd.
metal surface
treatment
INTERMEDIUM
Zhenjiang Nantex
chemicals Manufacture and
100.00%
-
INTERNATIONAL
Chemical Industry
sales of rubber
LIMITED
Co., Ltd.
and latex
Note :The Group held a relative majority interest in Nanmat Technology Co., Ltd. and a relative majority of the seats in the company's Board of Directors. Based on the comprehensive assessment, the Group has the right to govern the entity's financial or operating policies. Accordingly, the entity was included in the consolidated financial statements.
Subsidiaries not included in the consolidated financial statements: None.
Adjustments for subsidiaries with different balance sheet dates: None.
Significant restrictions: None.
Subsidiaries that have non-controlling interests that are material to the Group:
As of June 30, 2025, December 31, 2024, and June 30, 2024, the non-controlling interest were NT$1,312,390 NT$1,318,661 and NT$1,142,417, respectively. Information on the subsidiary that has non-controlling interest that is significant to the Group is as follows:
Non-controlling interest
June 30, 2025 December 31, 2024
Principal place
Ownership
Ownership
Name of subsidiary of business Amount (%) Amount (%) Nanmat Technology
Co., Ltd. Taiwan
$ 1,312,390
59.00%
$ 1,318,661
59.00%
Principal place
Name of subsidiary of business Nanmat Technology
Non-controlling interest
June 30, 2024
Ownership
Amount (%)
Co., Ltd. Taiwan
$ 1,142,417
59.00%
Summary of financial information of subsidiary:
Balance sheets Nanmat Technology Co., Ltd.
June 30, 2025
December 31, 2024
June 30, 2024
Current Assets
$ 1,924,810
$ 1,914,933
$ 1,675,099
Non-current Assets
1,083,410
927,411
869,165
Current Liabilities
(
737,593)
(
558,805)
(
551,064)
Non-current Liabilities ( 46,238) ( 48,521) ( 56,901)
Total net assets
$ 2,224,389
$ 2,235,018
$ 1,936,299
Statements of comprehensive Income
Three months ended June 30,
2025
2024
Revenue
$ 634,727
$ 556,252
Profit for the period
Other comprehensive income
$ 100,442
-
$ 128,475
-
Total comprehensive income
$ 100,442
$ 128,475
Dividends paid to non-controlling interest (Note)
$ -
$ -
Statements of comprehensive Income
Six months ended June 30,
2025
2024
Revenue
$ 1,234,995
$ 1,064,310
Profit for the period
Other comprehensive income
$ 249,797
-
$ 237,201
-
Total comprehensive income
$ 249,797
$ 237,201
Dividends paid to non-controlling interest (Note)
$ -
$ -
(Note) Declared as unpaid.
Statements of cash flows
Six months ended June 30,
2025
2024
Net cash provided by operating activities
$ 118,604
$ 239,144
Net cash used in investing activities
(
154,519)
( 6,821)
Net cash provided by (used in) financing activities
13,256
( 23,023)
(Decrease) increase in cash and cash equivalents
(
22,659)
209,300
Cash and cash equivalents, beginning of period
699,442
315,418
Cash and cash equivalents, end of period
$ 676,783
$ 524,718
Employee benefits
Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant
one-off events. Also, the related information is disclosed accordingly.
Income tax
The interim period income tax expense is recognised based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.
CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY
There have been no significant changes during the period. Refer to Note 5 of the consolidated financial statements for the year ended December 31, 2024.
DETAILS OF SIGNIFICANT ACCOUNTS
Cash and cash equivalents
June 30, 2025
December 31, 2024
June 30, 2024
Cash:
Cash on hand
$ 350
$ 352
$ 352
Checking accounts and demand
deposits 1,948,673
2,026,528
1,859,654
1,949,023
2,026,880
1,860,006
Cash equivalents:
Time deposits
6,932,758
8,192,536
4,469,048
$ 8,881,781
$ 10,219,416
$ 6,329,054
The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.
As of June 30, 2025, December 31, 2024 and June 30, 2024, the Group's time deposits maturing in excess of three months and within one year were classified as current financial assets at amortised cost.
The Group classified cash and cash equivalents pledged as collateral as 'Current financial assets at amortised cost'.
Current financial assets at fair value through profit or loss
June 30, 2025
December 31, 2024
June 30, 2024
Financial assets mandatorily
measured at fair value
Beneficiary certificates
$ 30,000
$ 30,000
$ 30,000
Valuation adjustment
30
30
60
$ 30,030
$ 30,030
$ 30,060
For the three months and six months ended June 30, 2025 and 2024, the Group recognised net gain (loss) from changes in fair values in the amount of $30, ($90), $－ and ($90), respectively. The Group recognised gain from the distribution of investment income in the amount of $600, $590,
$600 and $590, respectively (listed as 'Other gains and losses').
The Group has no financial assets at fair value through profit or loss pledged to others as of June 30, 2025, December 31, 2024 and June 30, 2024.
Current financial assets at amortised cost
June 30, 2025 December 31, 2024 June 30, 2024
Time deposits maturing over three
$ 369,269
$ 421,716
$ 3,578,569
months
Time deposits pledged
7,000
4,000
4,000
$ 376,269
$ 425,716
$ 3,582,569
The Group recognised interest income in profit or loss in relation to financial assets at amortised cost in the amount of $6,370, $16,883, $11,044 and $37,773 for the three months and six months ended June 30, 2025 and 2024, respectively.
As of June 30, 2025, December 31, 2024 and June 30, 2024, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortised cost held by the Group was the carrying amount.
As of June 30, 2025, December 31, 2024 and June 30, 2024, the Group's financial assets at amortised cost pledged to others as collateral are provided in Note 8, 'Pledged assets'.
Information relating to credit risk of financial assets at amortised cost is provided in Note 12(2), 'Financial instruments'. The counterparties of the Group's investments in certificates of deposits are financial institutions with high credit quality, so the Group expects that the probability of counterparty default is remote.
Notes and accounts receivable, net
Notes receivable
June 30, 2025
$ 144,729
December 31, 2024
$ 149,134
June 30, 2024
$ 167,461
Accounts receivable
$ 806,093
$ 996,796
$ 1,145,117
Less: Loss allowance
( 444)
( 897)
( 845)
$ 805,649
$ 995,899
$ 1,144,272
The ageing analysis of notes receivable and accounts receivable is as follows:
June 30, 2025 December 31, 2024
Accounts
receivable
Notes
receivable
Accounts
receivable
Notes
receivable
Not past due
$ 717,180
$ 144,729
$ 775,114
$ 149,134
Less than 90 days
68,898
-
221,376
-
Over 91 days
20,015
-
306
-
$ 806,093
$ 144,729
$ 996,796
$ 149,134
June 30, 2024 Accounts Notes
receivable
receivable
Not past due
$ 925,604
$ 167,461
Less than 90 days
219,396
-
Over 91 days
117
-
$ 1,145,117
$ 167,461
The above ageing analysis was based on past due date.
As of June 30, 2025, December 31, 2024 and June 30, 2024, the balance of notes receivable and accounts receivable were all from contracts with customers. As of January 1, 2024, the balance of receivables from contracts with customers amounted to $827,868.
As of June 30, 2025, December 31, 2024 and June 30, 2024, the Group held building and structures as security for notes and accounts receivable.
Without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk was the carrying amount.
Information relating to credit risk of notes and accounts receivable is provided in Note 12(2), 'Financial instruments'.
Inventories
Cost
market price decline
Book value
Merchandise
$ 2,743
($ 723)
$ 2,020
Raw materials
801,739
( 21,697)
780,042
Supplies
62,859
( 71)
62,788
Work in progress
163,219
( 2,313)
160,906
Finished goods
583,745
( 24,567)
559,178
$ 1,614,305
($ 49,371)
$ 1,564,934
June 30, 2025 Allowance for
December 31, 2024 Allowance for
Cost
market price decline
Book value
Merchandise
$ 2,667
($ 724)
$ 1,943
Raw materials
865,758
( 19,015)
846,743
Supplies
61,608
( 71)
61,537
Work in progress
170,294
( 3,304)
166,990
Finished goods
649,296
( 26,281)
623,015
$ 1,749,623
($ 49,395)
$ 1,700,228
June 30, 2024 Allowance for
Cost
market price decline
Book value
Merchandise
$ 3,064
($ 697)
$ 2,367
Raw materials
590,899
( 17,800)
573,099
Supplies
60,066
( 71)
59,995
Work in progress
212,750
( 10,991)
201,759
Finished goods
666,342
( 25,939)
640,403
$ 1,533,121
($ 55,498)
$ 1,477,623
The cost of inventories recognised as expense for the period:
Three months ended June 30,
2025 2024
Cost of goods sold $
(Gain) loss on physical inventory (
Revenue from sale of scraps ( Provision (reversal of allowance) for inventory
2,157,070 $
105)
3,609) (
2,478,552
2,925
3,454)
market price decline 710
$ 2,154,066
( 10,288)
$ 2,467,735
Six months ended June 30,
2025
2024
Cost of goods sold
$ 3,886,207
$ 4,169,680
Loss on physical inventory
3,385
3,200
Revenue from sale of scraps
(
6,908)
(
7,397)
Reversal of allowance for inventory market price
decline (Note)
( 24)
( 14,714)
$ 3,882,660
$ 4,150,769
(Note) For the three months and six months ended June 30, 2024 and six months ended June 2025, the Group reversed a previous inventory write-down which was accounted for as reduction of cost of goods sold because the inventories which were previously provided with allowance were subsequently used and sold.
June 30, 2025
December 31, 2024
June 30, 2024
quity instruments
Listed stocks $ 139,259 $ 139,259 $ 139,259
Unlisted stocks
285,509
300,110
298,707
424,768
439,369
437,966
Valuation adjustment
168,512
169,951
142,086
$ 593,280
$ 609,320
$ 580,052
Non-current financial assets at fair value through other comprehensive income
E
The Group has elected to classify equity investments that are considered to be strategic investments and steady dividend income as financial assets at fair value through other comprehensive income. The fair value of such investments was equivalent to its book value as at June 30, 2025, December 31, 2024 and June 30, 2024.
Amounts recognised in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:
Three months ended June 30,
2025 2024
Equity instruments at fair value through other comprehensive income
Fair value change recognised in other comprehensive income
Dividend income recognised in profit or loss
($ 30,070) ($ 33,253)
held at end of period
$ 5,724
$ 16,560
Equity instruments at fair value through other comprehensive income
Fair value change recognised in other comprehensive income
Dividend income recognised in profit or loss
Six months ended June 30,
2025 2024
($ 1,439) ($ 48,304)
held at end of period
$ 5,724
$ 16,560
As of June 30, 2025, December 31, 2024 and June 30, 2024, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at fair value through other comprehensive income held by the Group was the carrying amount.
The Group has no financial assets at fair value through other comprehensive income pledged to others as collateral.
Property, plant and equipment
At January 1, 2025
Unfinished
Buildings Machinery construction Land and and Leasehold Other and equipment
Land improvements structures equipment improvements equipment under acceptance Total
Cost
$ 461,888 $
18,474
$ 1,890,189
$ 6,127,734 $
7,960
$ 831,219 $
175,676
$ 9,513,140
Accumulated depreciation -
( 17,867) ( 1,308,776) ( 4,972,834) ( 6,619) ( 630,895)
- ( 6,936,991)
Six months ended June 30, 2025
$ 461,888
$ 607
$ 581,413
$ 1,154,900
$ 1,341
$ 200,324
$ 175,676
$ 2,576,149
At January 1
$ 461,888 $
607 $
581,413
$ 1,154,900 $
1,341
$ 200,324 $
175,676
$ 2,576,149
Additions - cost - - 10,633 25,004 - 10,944 40,122 86,703
Transferred after acceptance
inspection - 950 - 21,056 - - ( Transferred from prepayments
22,006) -
for equipment - - 116,051 19,662 - 14,977 - 150,690
Disposal - cost - - (
5,975) (
4,063)
- ( 6,448)
- ( 16,486)
- accumulated depreciation - - 5,392 3,766 - 6,017 - 15,175
Depreciation - (
202) (
30,624) (
88,829) (
366) (
27,654)
- ( 147,675)
Net exchange differences - -
( 18,391) ( 53,314)
- ( 3,855) ( 1,310) ( 76,870)
At June 30
At June 30, 2025
$ 461,888
$ 1,355
$ 658,499
$ 1,078,182
$ 975
$ 194,305
$ 192,482
$ 2,587,686
Cost
$ 461,888 $
19,424
$ 1,957,902
$ 5,934,708 $
7,960
$ 831,171 $
192,482
$ 9,405,535
Accumulated depreciation -
( 18,069) ( 1,299,403) ( 4,856,526) ( 6,985) ( 636,866)
- ( 6,817,849)
$ 461,888
$ 1,355
$ 658,499
$ 1,078,182
$ 975
$ 194,305
$ 192,482
$ 2,587,686
Unfinished
Buildings
Machinery
construction
Land
and
and
Leasehold
Other
and equipment
Land
improvements
structures
equipment
improvements
equipment
under acceptance
Total
At January 1, 2024
Cost
$ 461,888
$ 18,474
$ 1,831,145
$ 6,105,323
$ 7,960
$ 829,991
$ 131,801
$ 9,386,582
Accumulated depreciation
-
( 17,193)
( 1,242,637)
( 4,889,756)
( 5,888)
( 597,172)
-
( 6,752,646)
$ 461,888
$ 1,281
$ 588,508
$ 1,215,567
$ 2,072
$ 232,819
$ 131,801
$ 2,633,936
Six months ended June 30, 2024
At January 1 $ 461,888
$ 1,281
$ 588,508
$ 1,215,567
$ 2,072
$ 232,819
$ 131,801
$ 2,633,936
Additions - cost -
-
2,393
4,211
-
5,533
20,771
32,908
inspection -
-
138
4,536
-
-
( 4,674)
-
Transferred from prepayments
for equipment
-
- 31,965
61,842
-
18,449
-
112,256
Disposal - cost
-
- -
(
26,205)
- (
6,301)
- (
32,506)
- accumulated depreciation
-
-
-
23,658
-
5,258
-
28,916
Depreciation
-
( 370)
(
25,997)
(
93,380)
( 366)
(
27,333)
-
(
147,446)
Reclassification (Note)
-
-
388
1,314
-
(
16,205)
-
(
14,503)
Net exchange differences
-
-
7,135
19,425
-
1,602
161
28,323
At June 30
$ 461,888
$ 911
$ 604,530
$ 1,210,968
$ 1,706
$ 213,822
$ 148,059
$ 2,641,884
At June 30, 2024
Cost
$ 461,888
$ 18,474
$ 1,884,591
$ 6,239,914
$ 7,960
$ 838,232
$ 148,059
$ 9,599,118
Accumulated depreciation
-
( 17,563) ( 1,280,061) ( 5,028,946) ( 6,254) ( 624,410)
-
( 6,957,234)
$ 461,888
$ 911 $ 604,530 $ 1,210,968 $ 1,706 $ 213,822
$ 148,059
$ 2,641,884
Transferred after acceptance
(Note) Transferred from other equipment to machinery and equipment and other non-current assets in the amount of $640 and $15,565, respectively, and transferred from other non-current assets to buildings and structures and machinery and equipment in the amount of $388 and $674, respectively.
The Group has not capitalised any interest for the six months ended June 30, 2025 and 2024.
Information about the property, plant and equipment that were pledged to others as collateral is provided in Note 8, 'Pledged assets'.
Leasing arrangements－lessee
The Group leases various assets including land, buildings, machinery and equipment and business vehicles. Rental contracts are typically made for periods of 1 to 50 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.
The carrying amount of right-of-use assets and the depreciation charge are as follows:
June 30, 2025
December 31, 2024
June 30, 2024
Carrying Amount
Carrying Amount
Carrying Amount
Land
$ 57,451
$ 63,093
$ 65,701
Buildings
35,620
37,676
39,732
Machinery and equipment
96,556
110,481
123,293
Transportation equipment
(Business vehicles) 327
688
1,109
$ 189,954
$ 211,938
$ 229,835
Three months ended June 30,
2025
2024
Depreciation charge
Depreciation charge
Land
$ 1,385
$ 1,400
Buildings
1,028
1,028
Machinery and equipment
6,975
6,962
Transportation equipment (Business vehicles)
168
227
$ 9,556
$ 9,617
Six months ended June 30,
2025
2024
Depreciation charge
Depreciation charge
Land
$ 2,787
$ 2,845
Buildings
2,056
2,056
Machinery and equipment
13,925
14,070
Transportation equipment (Business vehicles)
361
479
$ 19,129
$ 19,450
For the three months and six months ended June 30, 2025 and 2024, the additions to right-of-use assets were $－, $1,184, $－and $3,808, respectively.
The information on profit and loss accounts relating to lease contracts is as follows:
Three months ended June 30,
2025
2024
Items affecting profit or loss
Interest expense on lease liabilities Expense on short-term lease or leases of
$ 887
$ 1,062
low-value assets
387
443
Six months ended June 30,
2025
2024
Items affecting profit or loss
Interest expense on lease liabilities
$ 1,828
$ 2,179
Expense on short-term lease or leases of
low-value assets
766
615
For the six months ended June 30, 2025 and 2024, the Group's total cash outflow for leases were
$20,646 and $20,772, respectively.
Intangible assets
Six months ended June 30, 2025
Computer
Trademarks Patents Software Total
At January 1, 2025
Cost
$ 1,613
$ 1,011
$ 20,939
$ 23,563
Accumulated amortisation
( 1,239)
( 575)
( 10,952)
( 12,766)
Net exchange differences
-
-
( 62)
( 62)
Net value
$ 374
$ 436
$ 9,925
$ 10,735
Six months ended June 30, 2025
At January 1
$ 374
$ 436
$ 9,925
$ 10,735
Additions - acquired separately
41
-
-
41
Amortisation
(
152) (
59) (
1,148) (
1,359)
Net exchange differences
-
-
( 637) ( 637)
At June 30
$ 263
$ 377
$ 8,140 $ 8,780
At June 30, 2025
Cost
$ 1,654 $ 1,011 $ 20,939 $ 23,604
Accumulated amortisation
( 1,391) ( 634) ( 12,100) ( 14,125)
Net exchange differences
- - ( 699) ( 699)
Net value
$ 263 $ 377 $ 8,140 $ 8,780
Six months ended June 30, 2024
Computer
Trademarks Patents Software Total
At January 1, 2024
Cost
$ 1,637
$ 960
$ 19,755
$ 22,352
Accumulated amortisation
( 1,053)
( 514)
( 9,285)
( 10,852)
Net exchange differences
-
-
( 403)
( 403)
Net value
$ 584
$ 446
$ 10,067
$ 11,097
Six months ended June 30, 2024
At January 1
$ 584
$ 446
$ 10,067
$ 11,097
Additions - acquired separately
-
51
107
158
Disposal - cost
( 26)
-
-
( 26)
- accumulated amortisation
26
-
-
26
Amortisation
(
159) (
61) (
1,032) (
1,252)
Net exchange differences
-
-
288
288
At June 30
$ 425
$ 436
$ 9,430
$ 10,291
At June 30, 2024
Cost
$ 1,611
$ 1,011
$ 19,862
$ 22,484
Accumulated amortisation
(
1,186) (
575) (
10,317) (
12,078)
Net exchange differences
-
-
( 115) ( 115)
Net value
$ 425
$ 436
$ 9,430 $ 10,291
Details of amortisation on intangible assets are as follows:
Three months ended June 30,
2025
2024
Operating costs
$ 71
$ 104
Selling expenses
1
40
General and administrative expenses
492
408
Research and development expenses
28
-
$ 592
$ 552
Six months ended June 30,
2025
2024
Operating costs
$ 203
$ 235
Selling expenses
85
167
General and administrative expenses
1,012
817
Research and development expenses
59
33
$ 1,359
$ 1,252
Short-term borrowings
Type of borrowings
June 30, 2025
Interest rate range
Collateral
Bank borrowings Unsecured borrowings
$ 120,000
1.86%～2.15%
None
Type of borrowings
December 31, 2024
Interest rate range
Collateral
Bank borrowings Unsecured borrowings
$ 110,000
1.86%～1.92%
None
Type of borrowings
June 30, 2024
Interest rate range
Collateral
Bank borrowings Unsecured borrowings
$ 160,000
1.82%～1.87%
None
For the three months and six months ended June 30, 2025 and 2024, the Group recognised interest expense in profit or loss. Refer to Note 6(21) for details.
Other payables
June 30, 2025
December 31, 2024
June 30, 2024
Wages and salaries payable
$ 258,795
$ 401,385
$ 285,598
Employees' compensation and directors' remuneration payable
12,600
42,100
21,000
Payables on equipment
8,316
3,391
2,612
Dividends payable
153,651
-
92,190
Others
216,820
260,488
222,296
$ 650,182
$ 707,364
$ 623,696
Long-term borrowings
Borrowing period Interest
Type of borrowings and repayment term June 30, 2025 rate Collateral Installment-repayment
borrowings
Unsecured borrowings Borrowing period is from
$ 28,500
1.97%～ None
March 1, 2024 to March
2.02%
1, 2027; interest is repayable monthly; principal is repayable
quarterly from June 3,
Less: Current portion
2024
( 14,000)
$ 14,500
Borrowing period Interest
Type of borrowings and repayment term December 31, 2024 rate Collateral Installment-repayment
borrowings
Unsecured borrowings Borrowing period is from $
March 1, 2024 to March
1, 2027; interest is repayable monthly; principal is repayable quarterly from June 3,
22,500
2.01% None
Less: Current portion
2024
( 10,000)
$ 12,500
Borrowing period Interest
Type of borrowings and repayment term June 30, 2024 rate Collateral Installment-repayment
borrowings
Unsecured borrowings Borrowing period is from $
March 1, 2024 to March
1, 2027; interest is repayable monthly; principal is repayable quarterly from June 1,
27,500
1.79% None
Less: Current portion
2024
( 10,000)
$ 17,500
For the three months and six months ended June 30, 2025 and 2024, the Group recognised interest expenses in profit or loss. Refer to Note 6(21) for details.
Pensions
The Company and its domestic subsidiary have a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular employees' service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Labor Standards Act. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. However, those who were mandatorily retired because injury at work will receive 20% in addition. The Company and its domestic subsidiary contribute
monthly an amount equal to 2%～9% of the employees' monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent
retirement fund committee. Also, the Company and its domestic subsidiary would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to
the employees expected to qualify for retirement in the following year, the Company and its domestic subsidiary will make contributions for the deficit by next March. The relevant information is as follows:
For the aforementioned pension plan, the Group recognised pension (benefit) costs of ($586),
$158, ($1,172), and $317 for the three months and six months ended June 30, 2025 and 2024, respectively.
Expected contributions to the defined benefit pension plan of the Group for the next year amount to $3,990.
Effective July 1, 2005, the Company and its domestic subsidiary have established a defined contribution pension plan (the "New Plan") under the Labor Pension Act (the "Act"), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiary contribute monthly an amount of no less than 6% of the employees' monthly salaries and wages to the employees' individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. The pension costs under the defined contribution pension plan of the Group for the three months and six months ended June 30, 2025 and 2024 were $4,242, $3,913, $8,247 and
$7,869, respectively.
The Company's mainland China subsidiary, Zhenjiang Nantex Chemical Industry, Ltd., has a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People's Republic of China (P.R.C.) are based on 20% of employees' monthly salaries and wages. Other than the monthly contributions, this subsidiary has no further obligations. The pension costs under the defined contribution pension plan of this subsidiary for the three months and six months ended June 30, 2025 and 2024 were $4,857, $5,339, $10,275 and $10,577, respectively.
Share capital
Movements in the number of the Company's ordinary shares outstanding are as follows (in thousands of shares):
Six months ended June 30,
2025 2024
Beginning and ending balance 492,417 492,417
As of June 30, 2025, the Company's authorised capital was $6,000,000, and the paid-in-capital was $4,924,167, consisting of 492,417 thousand shares, with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.
Capital surplus
Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that
the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.
Retained earnings
Pursuant to the amended R.O.C. Company Act, the current year's after-tax earnings should be used initially to cover any accumulated deficit; thereafter 10% of the remaining earnings should be set aside as legal reserve until the balance of legal reserve is equal to that of paid-in capital. The legal reserve shall be exclusively used to cover accumulated deficit, to issue new stocks, or to distribute cash to shareholders in proportion to their share ownership. The use of legal reserve for the issuance of stocks or cash dividends to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company's paid-in capital.
Since the Company is in a changeable industry environment tied with international macroeconomics and the Company is in the mature stage, the appropriation of earnings should consider fund requirements and capital budget to decide how much earnings will be kept or distributed and how much cash dividends will be distributed. According to the Company's Articles of Incorporation, 10% of the annual net income, after offsetting any loss of prior years and paying all taxes and dues, shall be set aside as legal reserve. The remaining net income and the unappropriated retained earnings from prior years can be distributed in accordance with a resolution passed during a meeting of the Board of Directors and approved at the stockholders' meeting. Of the amount to be distributed by the Company, stockholders' dividends shall comprise at least 20% of the unappropriated retained earnings, and the percentage of cash dividends shall not be less than 30% of dividends distributed. Based on the regulation, the Board of Directors of the Company shall adopt a special resolution to distribute whole or a part of the dividends in the form of cash and report to the stockholders, which is not applicable to the aforementioned provisions that are subject to stockholders' resolutions.
Special reserve
In accordance with the regulations, the Company shall set aside special reserve for the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.
The amount previously set aside by the Company as special reserve on initial application of IFRSs in accordance with Order No. Financial-Supervisory-Securities-Corporate-1090150022, dated March 31, 2021 was $430,099, which shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently
The Company recognised cash dividends distributed to owners amounting to $492,417 ($1.0 (in dollars) per share) for the year ended December 31, 2024. On March 7, 2025, the Board of Directors proposed for the distribution of cash dividends of $492,417 ($1.0 (in dollars) per share) from the 2024 earnings, which was reported to the shareholders during their meeting on May 26, 2025.
Operating revenue
Disaggregation of revenue from contracts with customers
Details of the Group's revenue from the transfer of goods at a point in time are as follows:
Three months ended June 30, 2025
NANTEX
INTERMEDIUM
NANMAT
Total
Revenue from latex products
$ 626,230
$ 58,449
$ -
$ 684,679
Revenue from rubber products
206,668
980,750
-
1,187,418
Organic-inorganic materials
-
-
633,830
633,830
Others
31,735
87,905
897
120,537
$ 864,633
$ 1,127,104
$ 634,727
$ 2,626,464
Three months ended June 30, 2024
NANTEX
INTERMEDIUM
NANMAT
Total
Revenue from latex products
$ 1,213,615
$ 98,559
$ -
$ 1,312,174
Revenue from rubber products
221,504
969,944
-
1,191,448
Organic-inorganic materials
-
-
526,942
526,942
Others
892
-
29,310
30,202
$ 1,436,011
$ 1,068,503
$ 556,252
$ 3,060,766
Six months ended June 30, 2025
NANTEX
INTERMEDIUM
NANMAT
Total
Revenue from latex products
$ 1,273,101
$ 102,963
$ -
$ 1,376,064
Revenue from rubber products
431,843
1,735,133
-
2,166,976
Organic-inorganic materials
-
-
1,233,449
1,233,449
Others
31,735
87,905
1,546
121,186
$ 1,736,679
$ 1,926,001
$ 1,234,995
$ 4,897,675
Six months ended June 30, 2024
NANTEX
INTERMEDIUM
NANMAT
Total
Revenue from latex products
$ 1,871,267
$ 174,535
$ -
$ 2,045,802
Revenue from rubber products
446,552
1,683,892
-
2,130,444
Organic-inorganic materials
-
-
1,010,463
1,010,463
Others
892
-
53,847
54,739
$ 2,318,711
$ 1,858,427
$ 1,064,310
$ 5,241,448
Contract liabilities
On June 30, 2025, December 31, 2024 and June 30, 2024, the Group has recognised the revenue-related contract liabilities amounting to $31,845, $43,198 and $51,686, respectively.
On January 1, 2025 and 2024, the contract liabilities were $43,198 and $46,392, respectively, and the contract liabilities at the beginning of 2025 and 2024 of ($15), $1,021, $28,661 and
$37,425 were recognised as revenue for the three months and six months ended June 30, 2025
and 2024, respectively.
Interest income
Three months ended June 30,
2025
2024
Interest income from bank deposits
$ 89,198
$ 98,757
Interest income from financial assets at
amortised cost
6,370
16,883
$ 95,568
$ 115,640
Six months ended June 30,
2025
2024
Interest income from bank deposits
$ 181,201
$ 194,745
Interest income from financial assets at
amortised cost
11,044
37,773
$ 192,245
$ 232,518
Other income
Three months ended June 30,
2025
2024
Dividend income
$
5,724
$
16,560
Other income
7,041
9,858
$
12,765
$
26,418
Six months ended June 30,
2025
2024
Dividend income
$
5,724
$
16,560
Other income
8,613
11,955
$
14,337
$
28,515
Other gains and losses
Three months ended June 30,
2025 | 2024 | ||
Net currency exchange (losses) gains | ($ | 129,016) | $ 18,449 |
Gains on financial assets at fair value | |||
through profit or loss Losses on disposal of property, plant and equipment | ( | 630 841) ( | 500 2,426) |
Other losses | ( | 61) ( | 67) |
($ 129,288) $ 16,456